Paul Middleton: Not really. I mean we have — so the language that we’ve included is oftentimes driven by accounting standards and what you have to evaluate it and manage it. And it’s a lot more conservative, obviously, than what we feel like. But I have a $5 billion balance sheet that’s unlevered. I mean I really don’t have any debt. So there’s — we still are extremely confident about the range of parties and solutions that we’re working with. And we haven’t seen any tempering of interest given — I mean it’s not news where we sit with our liquidity position and where we’re at. We’ve been pretty clear about that all year in what we’re doing and where we’re going. So I think most people certainly understand that and appreciate where we’re at and what’s to come, which is all this growth and this margin accretion and where it’s going. So that’s what people are betting on when they want to play — work with us. And so we don’t really see it as limiting our options.
Ameet Thakkar: Thank you for the time.
Operator: Thank you. Our next question comes from the line of Sherif Elmaghrabi with BMO — with BTIG. Please proceed with your question.
Sherif Elmaghrabi: Hey, everyone. Thanks for taking my question.
Andrew Marsh: Hi, Sherif.
Sherif Elmaghrabi: Hey, Andy. So first, I just like a little bit more clarity on the service accrual charge. It makes sense, of course, that the hydrogen shortage affects cost of service, but how have these unplanned outages delayed fleet upgrades for customers?
Andrew Marsh: Well, that’s — I’m going to give you an answer. I hope you — I hope it’s understandable. So let me — I’m going to separate into different issues, Sherif. It does slow down upgrade because we have a fleet of 20-plus rolling hydrogen generators. Our service folks now the hydrogen pad almost every day, often connecting and reconnecting and getting our products position that one can connect a high-pressure tube trail or two. And also when you have — when you start running hydrogen down to very low pressures, which happens often when you’re running with these kind of issues, you end up cavitating the liquid hydrogen pumps. So therefore, you’re doing a lot more maintenance on the hydrogen pad. So it has a ramification to that.
But let me take it further. So it does impact the — how fast you’re implementing because your staff is doing things to keep the customer alive today. So that’s why. Now when I think about the service accrual, I believe that — the — if I take a look, and I’m going to talk about our traditional material handling business, our confidence level that and we see it, the newer products we put out in the field, perform much better or the latest design, do not have issues. Our legacy units take a lot of time and effort. And I quite — when I look at it, I would not be surprised if over the coming next two quarters, we have maybe an additional service accrual. And I think that — but I believe that we’re in a place where that business — once we get through the legacy issue unit issues, which I think the accrual helps us with, we’ll be in a place in the second half of next year, where that line could go in the other direction, could go gross margin positive.
But that — and then I look at our new businesses, and I made references on the call earlier, it’s much more interesting. It’s much more simpler to for our electrolyzer business and for our stationary business to essentially monitor those systems remotely, dispatch people if they need to make repairs, all those things actually help. We think those businesses will start off with positive service margins to start. So that’s kind of how — I know that’s a long answer, Sherif, but that’s why there’s a connection.
Sherif Elmaghrabi: Long answer, but really good window into nuts and bolts of the business, so I appreciate it. And then a little bit shorter of a question, I guess. When it comes to…
Andrew Marsh: Shorter answer, Sherif
Sherif Elmaghrabi: When it comes from converting the 15 tons per day in Georgia from gaseous to liquid, is it just a matter of adding a liquefier? Or is there more of a retooling process involved? Really, I’m trying to drill down into what’s driving the decision to have 15 tons gaseous and then the other 15 tons liquid.
Andrew Marsh: Well, that’s — the gas is, Sherif, feeds the liquid. So there’s not two plants. We are looking at the possibilities of expanding Georgia. But George is a liquid plant. There is a 2.5 ton gaseous — 2-ton gaseous plant that we have there, which is filling these high-pressure two trailers I talked about, which are kind of like generators or high-pressure generators on wheels. And — but the hydrogen that’s produced primarily at the Georgia plant the liquefiers. Does that make sense?
Sherif Elmaghrabi: Makes total sense.
Operator: Thank you. Our next question comes from Vikram Bagri with Citi. Please proceed with your question
Vikram Bagri: Good evening, everyone. To start off the — on Georgia facility, can you provide some risks that could be maybe start up beyond ’23? And if any of the funding options that you talked about are contingent on Georgia up and running? And then staying on the same topic, inventory is now over $1 billion. Can it be a source of liquidity as you go into next year? How do you see that trending? And then finally, the quarterly filing has, as you talked about, some cautionary statement about funding being insufficient for operations next year. Any chance you can quantify how much minimum funding is required, assuming tighter controls to go through next year as you mean funding environment is not as supportive? Thank you.
