Stephen Bagley: When you look at the operating expenses, the R&D, that’s always pretty much for product development, so we should see some of that come down the line hopefully in revenue. The marketing and selling, what — the decrease what you see there is primarily in commissions due to the decrease in sales. But overall, one major variable of course is always our advertising, our trade show and that started to pick back up last year due to COVID. So you should see something there. The G&A, if you look at it, it was flat. And I would — I don’t expect anything to really come through on that next year, but that’s my expectation right now.
Christopher Coccio: Yes.
Stephen Harshbarger: Okay Chris.
Christopher Coccio: And I should also add, just to add to what Steve Bagley was saying, we do put a lot of emphasis on what’s called research and development or product development. But the other issue, of course, as you all know, inflation is occurring in salaried people as well and particularly in the top level engineering talent. So we’re doing what we have to do to maintain a quality workforce there as opposed to starting losing people to some other company and then having to retrain. So there’s two things going on there, our continued emphasis on R&D and the inflation of salaries that’s taking place.
Stephen Bagley: I mean, that’s one of the major — that just — as an offshoot, as Chris mentioned on the salaries, that’s where you would see leverage in a number of different ways, because it takes people a little bit of time to get up to speed, but we’ve had to maintain our current level of our engineers here, so that will pay off.
Ted Jackson: Just because you brought this — brought up the investment with regards to the new building and the productivity, how should we think about CapEx in 2024? Maybe call it $50,000 or that is in 2023, I mean, should we think it kind of flat, should maybe taper off a little bit now that you’ve kind of moved through that?
Stephen Harshbarger: Although we did finish our expansion needs here, I think we anticipate it to be flat though, because I think we’re going to have to be continuing to expand based on our projections looking forward. So where I thought it might go down a little bit this year, I’m no longer anticipating it to go down as long as we see this really strong order intake happening, we’ll have to just be continuing our expansion plans, which would give us similar CapEx expenditures.
Ted Jackson: Okay. And then my last question, and then I’m hogging the mic, but you’ve built up this inventory. You kind of went through it being part of it being your response to the supply chain issues. Will we see these inventory numbers ever trend down or should we expect this to be kind of the new norm going forward?
Stephen Harshbarger: I would hope that they will trend down, but I don’t see it happening this fiscal year. Right now, we’re still just so cautious with supply chain issues. And until we see that supply chain these issues resolve 100%, it’s just forcing us to make the inventory very high at this moment. Now it’s very safe inventory. We’re having a nice flow of orders, but it’s just forcing us to keep it high at this point. But hopefully, at some point, when the world returns back to normal with supply chain, that we won’t have to worry about that.
