Donovan Schafer: Okay. Thank you. I’ll take the rest of my questions offline.
Operator: Our next question comes from the line of Philip Shen with ROTH Capital Partners. Please proceed with your questions.
Philip Shen: Hi, guys. Thanks for taking my questions. I wanted to follow up on the liquidity and cash flow question. Specifically, can you talk about what the cash burn was for Q3? You didn’t have financial statements with your release. And then, what do you expect it to be for Q4?And then, how do you expect – and then, I didn’t hear the cash position. So what was it at the end of Q3, and how do you expect that to trend as we go through Q4? Jason, you were talking about working capital improvements. So I was wondering if you could quantify what the inventory and AR positions were at the end of Q3, and how much that could translate to cash as well in Q4.
Jason Bonfigt: Sure. We ended the quarter at $2.5 million of cash. I believe our Q2 was right around $4 million. We did have a capital raise in that quarter, and we also had proceeds from our ATM that’s on file with the SEC as well. So that was a positive from a cash flow perspective. So the delta is the cash burn in the business. Working capital was relatively flat, and the EBITDA loss was about $8.5 million, as we believe that many of the actions that we’ve taken from a headcount perspective and consolidating some of these markets will reduce this cash burn. And then, as well as the commercial business, the revenues are growing and we’re approaching positive EBITDA in that business. So that’s going to be a tailwind for us as well.
We did have, in our filing that inventory, we still have about $10 million of AR. And I would say there’s a couple opportunities in there. We have older accounts that we’re just working to clean up so that we can get the PTO within our residential business. There’s several million dollars in that category that we’re actively targeting to bring in cash. And then, we have effectively an underutilized factoring line right now that we’re looking to expand or to add more customers into that population. That will allow us to free up some cash flow as well. Inventory during the quarter was about $16 million. Again, we have quite a few of the modules that are available for our commercial business, so we’re not having to make those purchases right now.
So that’s going to be a benefit to working capital as well. And then, within our residential business, we are still managing just in time when it comes to inverters and module purchases. So there’s not a lot of opportunity, frankly, in our residential inventory. But I think there is in our commercial business.
Philip Shen: Got it. Thanks for the detail. And then, as it relates to that factoring line, you said it’s underutilized. Can you talk through how much capacity there might be and then how much more you might want to expand that by?
Jason Bonfigt: Our factoring line is about $2.5 million. I don’t have the number in front of me of what it was utilized at the end of Q3. I believe it was $1.5 million, but I’ll have to follow up with you if that’s not the correct number. It will be stated in our queue. We think there’s opportunity to expand that facility by $1 million to $2 million. And certainly, I think the business levels that we’re going to be operating at could support that. So we’re targeting that as well.
Philip Shen: Okay. Thank you. And then looking at margins for Q4, I heard the commercial margins for Q3, you improved year over year, I think, from 1% to 16%. But I didn’t hear the resi margins for Q3. Can you share what they were and then what you expect both segments to be in Q4? Thanks.
