Nicolas Brunet : Yes, well, as Nick pointed out earlier, there’s a couple that were awaiting approval. There’s one that has been lagging from that quarter with the reliance on [inaudible]. Also, there’s 50 of them that are definitely just waiting to be delivered. So yes, there are some, and you will see some bigger as we get approval.
Rupert Merer: Great. Thanks. And then secondly, you talked about the fact that the supply chain is easing and earlier on in your prepared comments you talked about focus on cost reduction. I’m wondering if you can give us some color about where we are today in the costs and where are the opportunities to drive out cost in the future and also if you could give a comment on inflation and if you’re seeing now say reduction in the inflation that we’ve seen over the last few years.
Marc Bedard: Yes, good morning, Rupert, this is Marc. Yes, we’re focused on reducing the cost as you know. So there’s many places where there will be savings in the future. Obviously, the inflation didn’t help, I mean still hitting us. The inflation right now as we all know. But there are a lot of places where we see a lot of benefits. First of all, I need to tell you that in our manufacturing processes are a lot more stable. And this is good. We’ve been doing this for many, many years and we see the benefits of that. Obviously with volume going up, then the amortization of the fixed cost is getting better. One place where we will be reducing significantly, and this is starting now, it’s also in R&D. I mean, we’ve invested a lot in R&D in the past.
And in the future, the R&D investments will be going down. And speaking of cost control, you probably saw also that the SG&A has been very like stable. And we are looking at reducing the percentage of SG&A over sales in the next quarters as well. So for example, we’ve been able to double the sales this year compared to last year with about the same amount of SG&A expenses. So it’s all about the focus on our products. It’s about the focus on the margin bringing down those costs. And you probably saw as well that in Q3 of last year, Rupert, we sold 156 vehicles and we had a negative EBITDA of $15 million. This year, we had a negative EBITDA of $3.9 million with 245 vehicles. So you can do the math. I believe that everyone can see that the business model is scaling very well.
And we said that in the past, but I think this is the proof that you’re seeing now. It’s scaling very well. And the good thing is that we don’t need very high volume to reach profitability.
Rupert Merer: Great. Thanks for the color, Marc. Yes, definitely solid margins this quarter. Congrats. I’ll get back in queue.
Operator: We have the final question on the line, registered from Abhishek Sinha from Northland Capital.
Abhishek Sinha: Yes, thanks for taking my question. This morning, in your gross margins, and now you have two consecutive quarters of quarter gross margins. So I understand the margins could be lumpy given the nature of the business, but can we say to you, assume that the margins would be positive from here on, going forward, given ramp up in US and higher ASPs in order.
Nicolas Brunet : Yes, Abhi, this was mentioned earlier, we’re going to see some movements in gross margins. So obviously with — our volume, I mean the margin is, this is really helping the margin, as I was just saying earlier, but the launch of the new platforms though. And we’re talking about the Lion8 Tractor, and next year we’re talking about the Lion that we are starting the delivery in Q4 of this year and also the LionC. Well, it’s obvious that the gross margin at the beginning of those products is not as good as the one, it’s going to be in a very near future. So we expect some, all the stuff in the gross margin for the next two or three quarters because of those items.
