Ryan Miller: Yes. Yes, Joe, in the first half of this year, we’ll see the disclosure in the Q. We’ve lost about $20 million. Last year, it was about $40 million. So it’s been going on about a $10 million run rate base.
Joseph Osha: All right not good, not, good. All right, a quarter. Thank you. All right that was my question. And just do you guys have at this point any kind of covenants I assume not on the convert, But is there any kind of covenant on this Oaktree financing in terms of cash flows that you’ve got to maintain or any of that or?
Bill Siwek: So we’ve got – we have to maintain $50 million of cash in the U.S., and we have to get approval for CapEx over $30 million annually.
Ryan Miller: Yes. And one other one is we have an $80 million limit on our other debt that we can maintain, but we do have consent, obviously from Oaktree for both the purchases of the wind turbine and for the convert.
Joseph Osha: Okay. Thank you very much.
Bill Siwek: Yes. Thanks Joe.
Operator: Your next question comes from Sherif Elmaghrabi from BTIG. Please go ahead.
Sherif Elmaghrabi: Hey, thanks for taking my questions. First on moving to larger turbine production lines, how long does it take to shift production from one blade type to another? Is it a function of winding down supply agreements? And can you remind us what kind of CapEx is associated with that?
Bill Siwek: Yes. So in most cases, if we’re doing a transition it’s in an existing facility that’s already got the basic CapEx in it. There are occasions when, if we’re going to a much larger blade where you might have to do a crane upgrade, which might be a couple of million dollars. The biggest CapEx though is the tooling itself for the mold and the mold is paid for by our customer. So the CapEx on a transition sort of having to extend the building or change a crane out is usually relatively small. The time it takes to do it, part of that depends on the part of the world we’re in, whether we’re working five days, six days, seven days a week. But it’s generally to go from stopping of the old mold, removal of that mold; install of the new mold and then ramping it back to serial production is probably around a quarter.
Sherif Elmaghrabi: Yes, thanks. And then in the field service business, a bit of a smaller point here, but how long do you expect warranty claims to pull technicians away from doing field service work?
Bill Siwek: I would say a lot of that is happening this year. We’ll have a little bit spill over into next year. But I think probably by the end of the first quarter or so next year, we should be through most of it. Is that…
Ryan Miller: Back to a more normalized…
Bill Siwek: Yes, back to a more normalized rate. So it will impact us for the balance of this year and a little bit of next year, and then we should be back at kind of a more normalized level of warranty versus revenue-generating work.
Sherif Elmaghrabi: That’s helpful. Thank you.
Operator: Your next question comes from Pavel Molchanov from Raymond James. Please go ahead.
Pavel Molchanov: Thanks for taking the question. I want to zoom out for a moment about kind of this whole quality control discussion in the wind space. Ever since Siemens started talking about this right around a month ago, do you have a sense that there is almost like a Witch Hunt to try to find and kind of nitpick things that perhaps would not have been regarded as serious issues until that rather kind of high profile headline, so an overreaction so to speak?
Bill Siwek: I have to agree with you. I think clearly there are some – and that’s why when I was talking a little bit about it after the first question, I mean, we’re categorizing the issues, right, where yes, it’s something that really needs to be fixed because it could impact the longevity of the blade. Others are, yes, we ought to watch that, but likely is not going to impact performance or longevity. And then there are other things that, well, yes, you could fix it because it’s a non-conformity. It’s not going to make it perform any better. It’s not going to do anything different. In fact, it may create more of a problem if you fix it as opposed to leaving it as is. And so I think there is a heightened sensitivity, especially for those customers of our customers who may not completely, I’m trying to say this in the right way.
