Unidentified Analyst: Okay, thank you. That’s very helpful.
Brian Shore : Thank you, Nick.
Operator: Our next question comes from the line of Brandon Dietz with Huffman Prairie. Please proceed with your question.
Brandon Dietz: Hey, Brian, Happy New Year. Thanks for taking the question. Yes. Just got a couple of questions. First, to start off, for the AFP initiative, you noted a potential major multi-front JV project with a large aerospace company. Just curious what does multi-front mean?
Brian Shore: Multi-front means there are really two different major initiatives that relate to the JV discussions. And at this point, I think it’s too early for us. It wouldn’t be appropriate for us to discuss what they are. But both of them are significant initiatives and there are different types of things. This was raised by this company. It came from their side, originally, two concepts. And I’m sorry, I wanted to put it out there because I want you to know that kind of in terms of transparency that we’re juggling two major projects, AFP project as well as the multi-front JV project with this large aerospace company. And I’m sorry to do that, please maybe we’ve raised curiosity up too much, but we’re not really in a position to provide any more information about what company that is or what these JV opportunities relate to, but both of them are significant in their own right.
I mean even if we only did one of them, which is possible. They’re not dependent on each other, it still would be significant.
Brandon Dietz: Okay. No worries. It definitely piqued our curiosity and very encouraging to hear. My second question is more of a housekeeping and modeling question around the rate card C2B sales. I think in the past, you noted you expected like a pretty small amount in Q2 and Q3. Based on your updated expectations, is it fair to assume the majority of what’s expected for the fiscal year is going to accrue in Q4? And is it possible to quantify these amounts just for our modeling purposes?
Brian Shore: Let me just quickly check if I can find that information. Yes, so about half of that number is expected in Q4. That’s correct. But half that $7.5 million number is expected in Q4. So that’s a correct observation.
Brandon Dietz: Okay. It’s nice to see the increase in headcount. I know it has been a struggle over the past year or two. And you noted it was kind of a sudden increase after Q3. Did anything change at Park in its hiring strategy, or was it just the labor market being a little more cooperative?
Brian Shore: We didn’t change our strategy. We stuck to our principles, like I said. There was one event though, that took place in our little town in Newton. I mean it’s about 30,000, which is there’s another company that has been in Newton for a long time, not in aerospace that shocked everybody by closing its doors with maybe one week notice. What surprised us about it is that this is one of the companies that was aggressively hiring people with hiring bonuses and big pay packages up until the announcement. So that was a good opportunity for us, and we’ve hired a number of people from that company, so local people, which is really good. We rather our preference, especially for production people to hire people that are local rather than from Wichita.
So that helped us a lot. We didn’t changed our approach. We didn’t change our standards or we didn’t do any of that. It was just we had some people who were available, all of a sudden. And look, I mean, I don’t know what’s going to happen to the economy, but it’s possible we’ll see more of this in the future.
Brandon Dietz: Yes, definitely. You noted that even with those hires, you’re not still where you want to be. I mean, how should we think about like what is an optimal level of headcount for Park that you still need to get to?
Brian Shore: So that’s a good question and something we’re actively discussing and really, it’s not a black one answer. It depends on how we structure the shifts. The norm will be a little different. But I think another half a dozen people approximately maybe up to kind of like 120, we get to a point where we feel pretty good. Maybe you want to do some fine-tuning, but we’re certainly lot closer to that number than we were when we were down at 99 because the requirement hasn’t changed. It’s not like we needed less people when we were at 99. So moving in the right direction anyway.
Brandon Dietz: Yes. No, that’s for sure. Maybe one last one, a quick one. I know there’s limitations on the ADRS program in terms of what you can tell us, but really encouraging to see the $2 million forecasted for calendar year 2023. Is that something you guys are already producing? Or is this still kind of tentative on when production will start for the — to produce the kits for the program.
Brian Shore: Some of that is booked, a good portion of it is booked. I think maybe about 40% of it. And we have orders to ship in our fourth quarter, our fourth quarter, meeting the next two months. So I think it’s real. And that’s the reason we provide that number because we just — $2 million kind of a round number, but we wanted to communicate or we want our investors that this is not just something we’re talking about as a prospect anymore. It looks like it’s really going to happen. It looks like it is happening.
Brandon Dietz: Yes, it seems like it’s going to be very pretty significant, so definitely encouraging to you guys are on the program. All right. Well, that’s all my questions, Brian. Thanks for — once again, thanks for taking them and Happy New Year.
Brian Shore: Happy New Year to you. Thank you for your questions and thank you for your interest.
Operator: Our next question can the line of Daniel Baldini with Oberon. Please proceed with your question.
