Lesley Matt: So, we anticipate Q1 to have similar let me pause for a moment. My apologies. Yes, it is mark-to-market. That is why we took the large E&O reserves at the end of 2022. So, that way, we started with a clean slate for 2023 and could have better margins moving forward.
Sameer Joshi: Understood. Got it. Good to hear that. On the operating expense front, two-thirds of the headcount reduced, but in terms of dollars, how should we look at it? I think your OpEx was around $1.8 million, total GAAP OpEx this quarter. Is that the run rate, or should we expect further reductions?
Lesley Matt: There are further reductions that have been happening. And we expect to realize some, our Q4 number is pretty close, but we have reduced our payroll expense significantly over the prior year.
Sameer Joshi: Right. Does the 4Q number have any severance costs that may not recur in 1Q and moving forward?
Lesley Matt: No. There were no severance costs.
Sameer Joshi: Okay. In terms of cash availability, I know you spoke at length about the 4Q. I mean December 31st, balance sheet, $107,000 in available cash, including $52,000 cash on hand. What is the level currently and throughout the year, how do you plan to like fund the operations and any rollouts of new products?
Jim Warren: Sameer, this is Jim Warren. We likely spoke to kind of restructuring our secured lending facilities following that strategic investment. Looking ahead to 2023, I think we will be rebuilding our working capital and financing structures. We are working off of cash collections largely at this point. But we have significantly reduced our borrowing costs as we do that and working with our supply chain partners to kind of restart the engine there.
Sameer Joshi: Got it. And last question, supply chain issues have been lingering. Is there any particular item or items that are a cause of the issues? And how do you expect them to be these issues to be resolved over the next few quarters?
Lesley Matt: Sure. So, our ICs are still a large component issue that we have been impacted by, and our industry has been impacted by as a whole as that continues to write itself, that will also free up our ability to bring those products in. Additionally, our RedCap product is a very unique product in its design and structure. So, we have had some challenges in ensuring that we can source the right componentry specific to that patented product. That we believe our sources have been able to restart their pipelines which will allow us to restart our pipeline.
Sameer Joshi: Got it. Yes. No, I think the GaN power supply and other power products looks promising, looking forward to updates on that. The turnaround on military looks promising as well. Good luck, Jim. Good luck, Lesley.
Lesley Matt: Thank you so much.
Operator: And our next question comes from the line of David Lodowski , a Private Investor. Please proceed with your question.
