Stuart Smith: Alright. Thank you, Howard. Now we will move on to Theodore O’Neill from Litchfield Hills Research. Theodore, are you with us?
Theodore O’Neill: Yes and congratulations on the good quarter.
Michael Mo: Thank you.
Theodore O’Neill: Yes. So, on the 13th, you announced the opening of an R&D center in Webster, Texas, it’s going to be outfitted with state-of-the-art prototyping equipment, and that leads me to three questions. One, could you talk about the demand you are seeing for prototypes and how these fit within the sales process? And when you do get production type orders like the $2.68 million you got last month, where will production runs occur?
Keith Cochran: Yes. Hey Michael, I will take that one, and thanks for the question. So, the demand for prototype battery systems is huge given the push for electrification across many industries. And supporting the development of these systems under the umbrella of our K1 design services is one of the major focuses of our engineers. And it’s going to facilitate the internal growth projections that we have for €˜23 and to a much larger scale in €˜24, based on the projections Michael has already shared with you. And we are already engaged in prototype designs for high reliability battery packs for companies in automotive, defense, aviation, energy storage and space markets. So, we are also in collaboration with the major car manufacturer, some large retailers and marine vessels as well as energy storage and body mobility applications, all looking for our K1 design services.
There is a tremendous amount of interest in the engineering team that we have been able to assemble and the capabilities that team has brought to the table.
Theodore O’Neill: Great. And when you do get production orders, where are those going to get built?
Keith Cochran: Well, it depends upon the size of the order. So, if it’s a small lot tight order, that would actually be built within our own laboratories. If it’s a large order in mass production, we intend to outsource the production.
Theodore O’Neill: Okay. And following up on that $2.68 million order, the press release says it’s partly about heavy construction and other mobile applications. Is this product being designed specifically for electric power construction equipment?
Michael Mo: No, not
Keith Cochran: Yes. It’s not specifically just for that. We can also support critical systems, including medical equipment, emergency services, financial institutions that need backup power data centers, etcetera.
Theodore O’Neill: Okay. And my last question is, I went on to the website to try to understand how KULR VIBE works. And I wanted to know a little more about it. Is it a combination of sensors and voltage or current modulation software that controls motors, or is this something else?
Keith Cochran: Not really. KULR VIBE is a multifaceted platform and it can serve many industries and the technology can balance and remove vibration from pretty much almost anything that spins. For Helos , for example, those sensors are already in place as part of the track and balance system that’s on board. So, we just used the information already coming from those sensors. When we have other products or technology that we need to remove vibrations from or improve the track imbalance. We also have our own sensors that we are able to use in those environments, along with our software to be able to perform the anti-vibration and balancing of those products.
Theodore O’Neill: Does that mean you have to add €“ so I understand the sensors, and I understand in some cases, the sensors are already there for obviously, for stabilizing how the product sits in the air, but does that mean that there is other components that have to get added as well beyond sensors?
