Wes Cummins: Thanks, John.
Operator: Our next question comes from the line of Rob Brown with Lake Street. Please proceed with your question.
Rob Brown: Good afternoon. Congratulations as well. Just wondered how much CapEx do you project for completing Ellendale and Garden City?
Wes Cummins: I’ll let David take that.
David Rench: I think we have $15 million to $20 million more in CapEx to complete both of those. And we have that in cash and potential loans lined up. So we’re in good shape there.
Wes Cummins: And we have additional pre payments.
David Rench: Yes. Additional pre payments.
Wes Cummins: Rob, I think the important part about it is we think we’re fully funded to build to finalize Garden City, Ellendale and the 5 megawatt HPC center as well.
Rob Brown: Okay, great. And then on the HPC business, maybe longer-term or midterm, how do you see that? It’s a mix of your business that kind of playing out, in say three years out?
Wes Cummins: Yes. So that’s a good question. The goal for us right now is at least 10% of our revenue coming from HPC besides Bitcoin by the end of this current calendar year. And three years from now, we’re shooting for a 50-50 split by 2025.
Rob Brown: Great, thank you. I’ll turn it over.
Wes Cummins: Thanks.
Operator: Our next question comes from the line of Chris Brendler with D. A. Davidson. Please proceed with your question.
Chris Brendler: Hi, thanks and good afternoon. Thanks for taking my questions. I may have missed this, but the gross margin came under pressure. And there’s a note in the press release about some charges or some follow up from last quarter shutdown, he’s given a little cover there. And with a normalized, non-GAAP gross margin look like?
Wes Cummins: Yes, Chris there was adjustments from specifically really the month of August. We had shutdowns in the way we build the customers got credits for that in September. And so you’ll, you’ll see that hit the gross margin. So in September, we actually had a slightly negative gross margin for the month because of those adjustments. So that impacted the full quarter. And then as I’ve made in the comments, in David’s guidance, you expect gross margin to be above 25% for the current quarter. So significant move back up, and I think you should expect that to be more of a normalized gross margin for us right in that. And then to answer the earlier question that John had, I think the goal for us here is that 30% gross margin over time.
Chris Brendler: Great. Is it fair to take that normalized margin and sort of estimate the onetime charge from last quarter or it was also a comment on power costs being a little higher this quarter, there?
Wes Cummins: In Jamestown and you’ll have this in Ellendale as well both in North Dakota. The power cost, it changes somewhat through the year but it will average out to the cost we expected to roughly plus or minus call it 10% for the year. We actually have a mechanism in our in our contracts that allow us to adjust for that which we do, but it’s a little bit lagging. So in North Dakota, you are going to see some quarters were below that level on gross margin and some quarters were above that level on gross margin where we, call it overearn and underearn. Excess will be more stable than the prices it doesn’t have a lot of seasonality to it, it’s more fixed because of how we structured that.
