Jeff Thompson: Yeah. It’s — well, let me back up a little bit. So most of the sales that are happening with other defense companies are already have programs of record that have been in place for years. One of them would be, like, with the switch blade and they’ve done some (ph) sales in the (ph) and things of that nature have been long term programs of record. With birds that, frankly, don’t have payload as good as our payload. But we don’t have a programming record in place. If we did, we party would have already sold hundreds of millions of dollars’ worth of drones for the Ukraine invasion. So since we don’t have that yet through the program of record of Tranche, 2, they have to be — people have to be creative to get drones into the Ukrainian army.
So some of those steps we found out, we’ve had to get to the right people that want to use the drones if had a great article on what the operators in the front line want. They want a very high end thermal drone that can have great detection. The ones they’re using right now are horrible, which would allow them to fly missions at night, which 90% of all missions are done or plus — 90% plus are done at night. So we could give them the tools that they actually want that could enable them to fly all night. And just that’s an FYI, our EO camera, our daytime camera is also magnificent. We went from 12 megapixel to, I think, a 64 megapixel, our software updates have just made it great improvement. So the daytime operation is incredible also. But anyway, we — first, you have to get the people that want the drones to tell the people that they need the drones in the capital, and then they have to get the information over to DC.
And then once we have that information in DC, then we can take it to the people that can actually write checks from this existing aid that’s been going over recently, even the new $400 million to $2 billion. We can be part of this, and we think we’re really close. And they’re going to need thousands of drones. So we now know how it works. We’ve been over here working on it, and we hope to have some results very soon.
Scott Gordon: Switching gears. So this question addresses financing needs, will Red Cat need to do a financing to meet contract?
Jeff Thompson: So just some things to remind people: A, we’re actually probably going to receive — we don’t know the size of the Army Tranche 3. But that’s — that just share a 100% margin revenue right there to do something that we’re already going to do anyway. And then the sale of the consumer division is going to produce cash. And we’ll also give Red Cat shareholders a significant ownership of the IPO. And they have a great team over there, Unusual Machines, as you see is actually growing very rapidly leading goggle company out there. So we think they’re going to have a very successful IPO, and I think they will. And I’ll be happy to be part of it. And that’s only going to help Red Cat. So we’re pretty excited to have them IPO, but that’ll help us so we can focus on military and first responders.
And I think the two divisions are going to get their focus that they need and they require so that they can thrive. So between all those things, that’s new additional capital, even without that capital with all the investments that we’ve made in chipsets and building the factory, we are now just ready to focus on sales, sales, sales. And those sales, I think, will start producing quite a bit of revenue. And that’s going to bring the (ph) way down even though we have years of runway now. As we get first couple of significant orders, that runway is going up is going go up for five to 10 years. So there’s no need of financing right now.
