Rob Straus: Yes. Understood. Going back to Bobby. Bobby, do you have a better explanation of the account definition or we could try to do that offline if you prefer?
Alex Shen: No, we’ll do it online.
Bobby Lilley: It is contract liability, so deferred revenue is what’s in that account — in that area. So we’ve — yes. So it has increased.
Rob Straus: Yes, okay. Now regarding backlog, we’re reporting here $44.6 million. I’m looking at that against the prior quarter ending June at about $46 million. The year ago period, it was $49 million and Alex, I think you said something that’s important that we understand this business is lumpy. I think that I’d appreciate any incremental thoughts on whether or not — look, we’ve been in this mid-40s range for the better part of 12 to 18 months now. Maybe this is where TechPrecision is and the expectation shouldn’t be something much larger. But I think with what we see going on in the industry, there’s reason to believe at least that backlog for tech precision across the board can get quite a bit larger, do you have that same enthusiasm? Or what is your viewpoint on that because it’s — we’re tracking this backlog number for the last 12 to 18 months, and it feels more stagnant than anything else?
Alex Shen: I would say that this is a big win because in the midst of a turnaround, we are able to preserve the level of backlog basically demonstrating the level of customer confidence and the level of meeting performance expectations by the two subsidiaries. So I would consider this a big win. Can it grow more? Probably more yes than no. I wouldn’t characterize it as being stagnant. I would characterize it as winning every day we’re in the 40s.
Rob Straus: Okay. last question, I guess. As it relates to Stadco, some year — some time ago, and I think it slightly after we acquired the business, two customers specifically were mentioned on the call, and those are widely known, which is Sikorsky, which is tied to the CH-53K and Boeing tied to the F-15EX fighter jet. Those two relationships are every bit where today where they were back then. Is that correct?
Alex Shen: I will speak to the military heavy lift helicopter program. That relationship remains strong and we recapture the customer confidence on a daily basis.
Rob Straus: And no comment regarding the Boeing F-15Ex fighter jet.
Alex Shen: You do know that I do — I shy away from specific customers. So I will shy away from that. But overall, I can give all our listeners the same information that across the board, for our key customers. We are not losing any confidence in any one of them. They are not losing any confidence in us either. So I think that should answer the question.
Rob Straus: Good. Last question, Bobby. One question regarding the press release, which discussed a debt covenant violation. Often, these are manageable with your lender, I just thought I’d ask your perspective. Number one, what is our remaining availability you could give it as of the end of the quarter or as of today, so we know what that looks like. And then is there any comment that you can make as it relates to your thoughts on curing violation?
Bobby Lilley: The availability as of the end of September is over $2 million. And as far as the covenant being a lumpy business. We’re going to have quarters that are up and down, and we work with our lender to waive whatever we need to and move forward.
Rob Straus: Okay, thank you for answering my questions. I’ll allow someone else to get in. Thank you.
Alex Shen: Thank you.
Operator: The next question is coming from Kris Tuttle from Caterpillar Investments. Chris, your line is live.
Kris Tuttle: Great. Thanks for the update and for taking my question. We already have delved into quite a few things. I did want to just ask a little bit more about the backlog, you talked about satisfying it over the next year, 1.5 years. And my question is just working with your customers who may want to place additional orders with you, are you able to give them the kind of delivery times like within their expectations for the lead times they have for their products. In other words, you have capacity to still accept additional orders for them and satisfy them in the time frames that are acceptable to them?
Alex Shen: That’s kind of a tricky question, isn’t it, so the…
Kris Tuttle: I didn’t mean it to be.
Alex Shen: Okay. Well, I’m just trying to make sure that we all understand each other and also our listeners all understand the same thing. We’re interested in maintaining 100% or close to 100% on-time delivery with our customers. That is the expectation that we want to meet, so that we can continue to secure confidence and through the confidence new orders. So if a customer, I guess, tries to put in an order that will disrupt the defense industry, that would not be a good order. And I think our customers are very aligned with our available capacity and capabilities. So they’ll probably try to work with us to avoid such a scenario.
Kris Tuttle: Okay. And — but at the same time, if they want to use you a little bit more for some of their programs, there’s some room for them to work with you to do that.
