Marc Bedard: Well, Abhi, there are so many differences between our packs and any packs that an OEM can — could be buying from battery pack suppliers. First of all, I mean those packs are, let’s say, custom made for the Lion products. So it’s a perfect weight and balance of our trucks and buses. And the operators are saying they’re seeing a huge difference because of that. So not only, I mean, it’s a better driving experience, but it’s also safer for them. And it’s also a way to put more kilowatt hour if needed. Like we do have a modular approach. And we are selling in multiple of 70-kilowatt hour or 105-kilowatt hour as well. So basically, the customer can buy and invest the money in the number of kilowatt hour they need for their operations.
So that’s a huge difference. In terms of technology as well, I mean, wow, it’s like night and day. The efficiency we could get from our batteries is better than most of the technology that we see out there right now for many reasons. I mean the BMS is really state of the art, the battery management system, but also the BTMS, the thermal management system, state-of-the-art, fully custom made to the Lion batteries as well and the users that we’re doing with the Lion trucks and Lion buses. But also, I mean, the way you charge, like the speed — the charging speed for the customers or for the operators, it makes a huge difference. So now most of the operators and all of the operators on the truck side are using Level 3 charging stations, and we became very, very good at all of that with respect to the Level 3.
So right now, I mean, we’re at 350-kilowatt, but we’re working on getting a lot more than that in the short-term future. So for a lot of operators that are using our trucks like 20 hours a day makes a huge difference. So charging speed as well, but also, I mean, the cooling system will affect the efficiency of the battery. It will affect the charging speed for the batteries as well, but also the life cycle. So when you are able to cool your batteries in a timely manner, well, you’re helping your life cycle. So your life cycle is getting better also and we feel that all of those factors are making a huge difference. Now you’ve been asking about the gross margin. Nick, I don’t know if you want to comment any more on this?
Nicolas Brunet: Yes. Look, I’d just say that we’re — we expect to get margin improvements over time from switching to our own batteries. Obviously, we’re supplying at the commodity level. We’re cutting in terms of the areas. We’re reducing, obviously, the profit that we’re paying to third parties. There is some ramp-up in terms of getting there, but that’s one of the key components that will certainly help.
Abhishek Sinha: Sure, thank you. That’s all I have. Thanks.
Marc Bedard: Alright, good morning Abhi.
Operator: Our final question today comes from Craig Irwin with Roth Capital. Craig, please go ahead.
Craig Irwin: A very simple question. So you guided for $20 million and then what was it, $45 million for CAPEX. Is there any other CAPEX or are we looking at total CAPEX this year at $65 million?
Nicolas Brunet: No, there is some other CAPEX that qualified, Craig, at sort of maintenance and procurement CAPEX, etcetera. Over the last year, that CAPEX was about $10 million. That’s in 2022.
Craig Irwin: Okay, thanks Nick. Thanks guys.
Marc Bedard: Thank you Craig.
Operator: Thanks. Those are all the questions we have time for today, so I’ll turn the call back to the management team for any concluding remarks.
Isabelle Adjahi: Well, thanks everyone for joining the call today. We look forward to continuing the discussion with you, and feel free to contact me for any questions you may have. You have a nice day. Thank you.
Operator: Thank you, everyone for joining us today. This concludes our call, and you may now disconnect your lines.
