SkyWater Technology, Inc. (NASDAQ:SKYT) Q3 2022 Earnings Call Transcript

And I think it’s going to put us in a very nice position as the decade unfolds and a lot of the chips dollars begin to become realized. But it’s important to note that for the next couple of years, we aren’t expecting any chips dollars. Our plan of attack is to execute the business we have. But I think when you look at CHIPS that just derisk the long term because there is a commitment within our country now to do more. And I think our model is uniquely positioned to take advantage of that.

Harsh Kumar: Very well guys. Thank you. And congratulations again.

Operator: And we will take our next question from Mark Lipacis with Jefferies. Your line is open.

Mark Lipacis: Hi, great. Thanks for taking my questions. Steve, maybe for you. Could you describe the accounting treatment that you would anticipate applying for – in the event that you receive grants or funding or investment tax credits? Does this all go against CapEx and then you have assets put on your balance sheet at a lower level and your depreciation is lower. Is that the right way to think about it? Or is there different treatments for different relief that you get to the CHIPS Act? Thank you.

Steve Manko: Mark, good question. I would say it’s pretty open-ended right now. Really the only clarity that we would have would be anything that we would do, what I’ll call, somewhat separate from ships on the 25% tax credit. That one is a little bit more tangible on how that goes. From there, though, it depends on how the monies flow and what other partnerships we have on really financing whatever growth would come through CHIPS, whether we’re talking about doing something to our current location in Minnesota or Florida or something different with a larger scale like we have planned for Indiana. So I would say, at this point in time, it’s really hard to say specifically how that accounting would flow and the timing of when that would occur, given that we’re still trying to understand how the money flows, what partners we would use and what the construct of those contracts would truly look like at this point.

Mark Lipacis: Fair enough. Thank you. That’s all I had.

Steve Manko: Thanks Mark.

Operator: And there are no further questions at this time. Ladies and gentlemen, this concludes today’s conference call, and we thank you for your participation. You may now disconnect.