For the credit facility, we are currently evaluating the terms and requirements of the loan and expect to make a decision on the size and timing of the first tranche of the loan by our third fiscal quarter. The credit facility of course is subject to customer documentation and previous approval and financial guarantees to be provided by Ceres. This is a government subsidized credit facility at attractive terms but the a loan nonetheless, so we want to make sure the financing our of PAISS project fits well with our priorities in Brazil.
To summarize, our expenses were inline with expectations. We continue to have a great deal of flexibility in directing our working capital including new sources of funding under the PAISS program and finally, as Rich have noted, we have a number of upcoming milestones which we believe can further validate the potential value of our technology, platforms and the market opportunities we are pursuing. The extent to which we achieve each of these milestones should indicate which areas have a greatest momentum and where we will prioritize our working capital. We will of course continue to monitor and evaluate our capital needs and financing options as the year progresses in light of these milestones.
That concludes my prepared comments. For a more detailed presentation of our financial results, please refer to today’s press release or our forthcoming report on Form-10 Q. I will now turn the call back over to Richard.
Richard Hamilton
Thanks Paul! At this time, we’d like to take your questions.
Operator
Ladies and gentlemen, if you would like to ask a question at this time, please press Star followed by the Number One key on your touch tone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the Pound key.
And our first question comes from the line of Caleb Dorfman of Simmons & Company. Your line is now open.
Caleb Dorfman, Research Analyst, Simmons & Company
Good afternoon.
Richard Hamilton
Hi Caleb!
Caleb Dorfman
First off, can you help walk through the trajectory, if possible, for the trends into the high biomass sorghum if the plantings and the yield go well this season. How quickly could high biomass sorghum be adapted in the infrastructure in Brazil really in placed with the power for that?
Richard Hamilton
I think the infrastructure is there in terms of the mills that are necessary to take the crop, burn it and generate electricity. Certainly the harvesting equipment etc, etc. So, I think if yields are positive, I don’t think it would be unreasonable to see tens of thousands of hectares of high biomass sorghum being planted in Brazil next year.
Caleb Dorfman
And beyond next year, how would you see the trajectory of planting? Because I know the value of proposition that you see right now is that the power prices are high now but reservoir level of say three years down the road could be more normalized and power prices could normalize. Do you still think that in the normalized power prices environment, there would be the value proposition for high biomass sorghum?
Richard Hamilton
I do because I think high biomass yields go up every year. Our breeding program and our biotech program don’t sit still and so I am not going to sit here to try and predict the weather but even if electricity prices come down, I think our yield can go up and maintain the attractiveness of the economic proposition. I think in addition to what reservoir levels might be, there’s simply an on going increase in electrical demand in Brazil. They have a difficult time meeting it from other sources. I mean hydro does not scale up dramatically quickly by any means and so biomass is something that can scale up relatively quickly and certainly relative to other sources.
