Chris Dendrinos: Got it. Thank you very much.
Operator: Thank you. The next question will be from Colin Rusch at Oppenheimer. Please go ahead.
Lydia Yuan: Good morning. This is Lydia on for Colin. Could you speak to the non-HBDI hydrogen revenue you’re currently seeing and the scope of the opportunity?
Dan Sceli: The non — so the light duty business, is that what you’re referring to, or the aftermarket?
Lydia Yuan: Light duty business, correct.
Dan Sceli: Light duty business, yes. So the light duty business is with Euro 6 and Euro 7 and the launch of our new business with our OEM customer. We expect this year the ramp up of that technology into the marketplace and it will happen fairly quickly. And I don’t have the exact numbers in front of me here of what that’ll do. Maybe Bill has some exact numbers, but the growth is pretty substantial for us.
Lydia Yuan: Great, thank you. And then as a follow-up, as you’re looking at optimizing your supply chains on the natural gas vehicles, could you give us a sense of the scope of the opportunity to drive cost reduction? And then maybe the operating leverage potential for the platform as revenue grows?
Dan Sceli: Yes. So on our supply chain, I’m not going to get into any specific numbers that we’re expecting to get from managing our supply chains, but it’s a continual part of my overall operational excellence initiative, includes the supply side of optimizing the logistics, the cost of the product, cost reduction efforts, those types of things. And we take the same approach to our suppliers as we do to our own operations.
Lydia Yuan: Thank you.
Operator: Thank you. Next question will be from Jeff Osborne at TD Cowan. Please go ahead.
Jeff Osborne: Hey, good morning. I had a couple questions on my side. I was just curious if there’s any update after you’ve had two months on the job? And I imagine connected with some of your leading partners on the ICE engine side. Any updates around the commercialization timeline, especially just given some of the hydrogen infrastructure projects globally have been a bit delayed relative to expectations?
Dan Sceli: You mean beyond the Volvo joint venture?
Jeff Osborne: Correct.
Dan Sceli: Yes. So we are continuing to do development across, as we talked about in the thing, in rail and marine and, of course, in the heavy truck markets and we’re going to continue to do that. We’re in discussions with other OEMs and we’re going to continue to market and push the potential gains of that technology to those OEMs.
Jeff Osborne: I was just trying to get at, you had some exciting announcements in sort of the October through December period. Do you anticipate those to be two to three year development contracts? And so we’re really looking at the 2027 and beyond for those to come to fruition or what’s your expectation of development cycles for some of the more recent announcements?
Dan Sceli: Yes, there might be. I’d have to get the specific timing for you, which we can follow up with, because marine, rail and the trucking industry all have somewhat different development cycles. And of course, from that comes different development times. And as you said, I’m here two months. So I haven’t got that at the top of my head of what — where we are and the timing of those and what the endpoint is, but I can certainly follow up with that.
Jeff Osborne: No worries. Maybe two for Bill. There’s, I don’t know, six days left in the quarter. Can you give us any directional comments about how Q1 is shaking out relative to Q4, both from a top line and maybe a margin for seconds?
Bill Larkin: No, we typically don’t provide any guidance, as you’re aware. So we will go through our normal reporting cycle on that.
Jeff Osborne: Got it. And then I assume the same is true for 2024. But is there any comments you can make on things that you can control? I understand there’s a lot in noise you can’t. It doesn’t sound like you’re willing to give OpEx because everything’s under review, but you also have a moving part with the joint venture. So can you just give us a sense of like how much headcount expenses would move to the JV and how we should think about minority interest losses for that. And then maybe any comments you can on anticipated CapEx relative to the $15 million you spent last year and the $2 million in debt payments.
Bill Larkin: No. And I think we talked about this before. The closing of the JV, we do not expect to be able to consolidate the financial results of the JV. However, we’re going to — this process is going to change how we’re going to report our segments going forward, I would expect. We expect we’re going to provide more transparency to each of these businesses. So even though we’re not going to be able to consolidate, we don’t expect to be able to consolidate the joint venture. We’ll provide a fulsome disclosure very similar to what we did with our CWI joint venture. So you’ll be able to see, we expect to start disclosing volumes, revenues. You’re going to be able to see the margins. Also, we are evaluating our other businesses and how do we break that out and considering — looking at the hydrogen business and breaking that out.
So we’re working through that process right now and I would expect, after the JV closes, probably that subsequent quarter we’ll start — you’ll start seeing that information broken out differently as we go forward.
Jeff Osborne: Got it. Thank you.
Operator: Thank you. [Operator Instructions] Next will be a follow-up from Eric Stine. Please go ahead.
Eric Stine: Hey, everyone. Yes, just a quick follow-up here. So more of a high-level question. I know for Volvo and this is joint venture, it’s obviously the internal combustion engine, key part of their strategy going for differentiated product in the market. But whether it’s Volvo’s view or your combined view as a joint venture partner, what do you envision this being as a — potentially as a percentage of the overall market as you see it developing going forward and you’ve got a number of technologies that are kind of in the mix for those future volumes?
