Tony Aquila: It’s a very strong American ally and it’s people I’ve done business with before. And there’s a lot of trust. They have an incredible amount of capabilities but they have large funds for the workforce development, which could give us even more competitive advantage. Most of all, they have invested an incredible amount of money in rapid development methods around 3D printing of highly sophisticated parts for various several use cases. But at this time, for many reasons, based on the work we’re doing, that name is being kept confident.
Amit Dayal: All right. Thank you, Tony. That’s all I have. Thank you.
Operator: Our next question comes from Jaime Perez with R.F. Lafferty. Please state your question.
Jamie Perez: Hey, good day, everybody. I hope everybody is doing well. Congratulations on your manufacturing. Now are you going to be producing LDVs? And also I know you mentioned your new vehicle, the Pitbull, [pit dog] (ph), sorry. Are you going to be producing that? It’s on your website. Are you just going to take reservations for it? Could you give me a little bit of color on the trajectory of that?
Tony Aquila: So yes. So one, being a Georgia boy, you definitely have the right to come here and drive the heck out of it and see what we put behind it. But yes, so it’s the same MPP1 platform. It’s — you’ll see when you come out and see the tour. You’ll see how we built these — the MPP1, the ladder frames and how their durability compares to others. It’s designed for military and industrial use before consumer use, everything down to the wells, to the coatings. We don’t use e-coat. We used a much more advanced process that gives you a much longer life. So we’ll be able to produce because the MPP1 is just top hat. And if you look at the top hat, the front of our vehicle is reusable. So we’re using between 65% and 80% of the parts spend so we can build 130s, 190s LV [indiscernible] We’ll be building various units on the same line because it’s a multiline-capable system.
So that’s one of the reasons why we’re debugging it the way we are is because, one, we may build a Bulldog. The next one, it maybe a 190 since we have large volume customers who are able to do adequate runs on the vehicle. But to answer your question, in 2024, which will optimize our cash flow from the highest-grade credit customers, we’ll be concentrating on the LDVs with limited LV to high-volume customers.
Jamie Perez: Got it. My next question. Are you still getting any issue with the supplies? I mean, I know the labor strike, the UAW labor strike, some of the suppliers had a little bit of a backlog. Are you seeing that or do you anticipate that?
Tony Aquila: Yes, I think our problems are probably a little different, Jamie, in the sense that a lot of our problems are kind of legacy negotiations where they were promising much more accelerated — the typical 100,000, 150,000 unit orders for pricing. We’ve actually taken, as Ramesh said, a very different approach and worked into partnership with these people because we effectively are running on negative days of — on deliveries because we don’t build anything unless it’s presold and it has a good credit rating. So we’re able to kind of recut those deals, and that’s why I gave a special shout out because, I mean, I think not only are the supplier partners happy to find somebody who’s not trying to ring them out for the next $0.10, but to actually get rewarded as we do volume.
So our pricing continues to get better but that we address our BOM costs at a much more moderate level and at a more hybrid of automation and manual versus all fully automated. So as those lines come up, our margins improve dramatically.
Jamie Perez: All right. That’s all the questions I have. Thanks.
Operator: Thanks. [Operator Instructions] Our next question comes from Poe Fratt with Alliance Global Partners.
Charles Fratt: Good afternoon, Tony. Good afternoon, Greg. Can you just talk about your capital raising going forward? It looks like there won’t be any more convert debt issue just because the options expired. And then can you just confirm that? And then will that be part of your — it won’t be part of your funding mix going forward? And then will you just talk about the timing on the next $105 million potential of convertible preferred with the same strategic investor?
Tony Aquila: Yes. So that will come from some different sources. So we started generating revenue. I mean, we’re real, right? And they’re very discerning customers that provided that revenue, and that revenue will grow quarter-over-quarter. We needed to prove these are interesting times, right, as I talked about earlier. So we needed to prove that. So our funding mix now will start to come also from deposits as well as extended terms. And that’s why, again, I’ll come back to our supplier partners, what they have been willing to do with us. And I think at the strike in hands, the opportunity for them to take a breather and appreciate helping young companies that have tremendous order books that derisks for them. And from a capital perspective, we’ll continue to do, whether it’s money from me or others, we’ll fund the company in a just-in-time and milestone-based progress because I mean, look at it, we’re trading below book value right now.
So the pendulum always swings, as we all know, extremely. And we just want to prove ourselves and we’re long-term investors, those things will come around. So we’re feeling good about as we step through 2024 based on the visibility of the macro environment we see, and we see lots of room for us to improve on everything we’re giving guidance to today.
Charles Fratt: Can you just clarify? On the last call, you were talking about the potential for nondilutive capital and the term sheets were coming in that might look attractive. When should we expect some less dilutive financing to occur? Meaning are there still terms out there with a certain amount of capital that you can tap into? Or just help me understand sort of the other levers that you can pull.
