Ben Kallo: Thank you.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Jon Windham with UBS. Your line is open. Please go ahead.
Jon Windham: Hey, great. Thanks for taking the questions. I was wondering if you could add any additional color on the shift in the battery solution away from SunVault. So is it multiple suppliers, one supplier? Just any comments about the change in the product? Thanks.
Peter Faricy: Yes. So Jon, we will provide more detail on that. We’re not quite ready to discuss that yet. But as we talked about on our previous calls, SunVault is a terrific product. We’re very proud of it. It was our first generation battery. And we’re excited to be able to sell down that remaining inventory and move forward. But looking forward in the battery business, it’s really a game of scale and you need to have the size and scale if you want to continue to invest in innovation and be able to provide high quality, low cost options. So as we move forward, I think what you’ll see us announce is, partnerships with battery makers who fit that bill. Those battery makers who have the highest quality standards that match our brand and our customer experience, but can also provide a great value. And we look forward to sharing more of those details with you as we move forward.
Jon Windham: Perfect, thanks. Maybe just a quick follow up. Any comments — obviously, some of the other companies we cover have commented about the difficult weather situation in California, whether that was a meaningful impact in 1Q? Thanks.
Peter Faricy: Thanks. Yes, the atmospheric rivers, I think this is the second year in a row we’ve been hit by this in California. So it is an ideal. We prioritize the safety of our employees and our dealers over anything else. So when weather conditions exist that don’t allow us to safely put people up on the roof and install residential solar, our highest priority is the health and wellbeing of our people over having more installations done. So it has been slow, but I would also say, if you recall January of 2023, I believe there was a record number of atmospheric rivers hitting California as well. So we had relatively modest expectations for January and I think it’s been in line with those so far.
Jon Windham: Appreciate your thoughts. Thanks.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Philip Shen with Roth Capital Partners. Your line is open. Please go ahead.
Philip Shen: Hey guys. Congrats on securing some additional capital here. I’m going to ask a bit of a tough question here on dealer health. I know you’ve already touched on this a couple of times. That said, checks suggest that some of your master dealer relationships may be strained, as many of them have not been paid for a while for installations already done. Can you talk about the health of your relationships with master dealers? Have you lost any exclusivity agreements? You had talked about [indiscernible] some of these dealer relationships in the past, Peter. How do you rebuild that trust? And then as it relates to the priority of the new capital, can you talk about the order of people getting paid, creditors, vendors, and then dealers, or are you going to prioritize dealers first and then go to creditors and vendors? So how long ultimately does that capital last and what’s the order of that capital flow? Thanks.
Peter Faricy: Yes, Phil. So on the dealer piece, I think I mentioned earlier, really our dealer count has actually increased year-over-year. We continue to be very selective about bringing new dealers on board and the interest level across the U.S. and becoming a SunPower dealer still remains high. And we look forward to adding more dealers as this year goes on. Specifically on master dealers and then the dealers that we call dealer accelerator dealers where we’ve made an equity investment. That count last year was flat. So in a tough down market, that count being flat, I think is probably in line with what our expectations are. And our goal has always been to continue to build a stronger and stronger partnership with all of our dealers.
And that includes our master dealers and our dealer accelerator dealers as we go forward. And then on the capital piece, we really believe, as I mentioned earlier, that the capital provided puts us in a position to meet our 2024 business plan and get to a point that we’re developing — we’re delivering free cash flow and positive cash flow in the second half of the year. Beth, do you want to add any comments to that as well?
Beth Eby: Sure. The objective, as Peter mentioned, is that we put in a conservative 2024 plan, and that does still get us with the cost reductions that we put in place where we’re going to be consistently free cash flow positive in the second half and beyond that.
Philip Shen: Okay, thanks, guys. As for — as it relates to the second $50 million tranche, do you guys anticipate needing to tap into that? What might be some of the requirements in order to tap into that or is that available to you whenever you need it? And do you see the need for additional equity or capital outside of the $200 million announced today? Thanks.
