Gary Hobart: Hi, Mike. We have — are still evaluating how we want to present the Rivada contract. For now, what you’re seeing in this press release and in the 10-K is going to be just a separate reference to the Rivada contract. And we’ll make determinations as we finish the March quarter on how properly to approach that in terms of backlog of the overall presentation. For now, we’re just going to separate — separately present it to you guys so you can see it separate from our year-end backlog.
Mike Crawford: Okay. Let me try it differently. So, well, first, we find intriguing that Rivada appears to have spectrum rights that have priority over Starlink. But what can you tell us about your understanding of approvals that Rivada needs both to start launching its satellites and also regarding the funding that it has to pay you to build these, at least these first 300 satellites. So a portion thereof.
Marc Bell: Sure. So, I can’t comment on Rivada’s business specifically. That’s the customer’s job to do that. I can tell you about what we know about the ITU process. Rivada is entitled to a waiver of the deployment of 10% of the constellation against the deadline this year. The Radio Regulations Board, which consists of 12 elected ITU experts can grant this. The regulator from the country where Rivada filed its orbital positions, which is the Office of Communications for the Principality of Lichtenstein, submitted all the necessary documentation to the Radio Regulations Bureau on time. Rivada believes that this submission contains full and clear evidence as requested in the relevant procedure. Rivada submitted evidence in time to receive a positive decision as early as possible as possible — in March, would be the end of March.
But understands this framework allows for the actions to be taken at the July RRB meeting instead. The German letter did not argue against granting the waiver. It merely asks that the RRB uses maximum time foreseen until June and a considered reading of the process will be applied. And as far as funding goes, they have given our attorneys comfort where they’re in the funding process and they have to get their ITU stuff finished. And otherwise they — I can tell you, they did make our first payment to us already.
Mike Crawford: Okay. Excellent. Thank you. And then just one final question is regarding your new Irvine expansion. So, you also have the new high bay facility right next to your existing components factory, but that also will just be for higher – bigger size components that then you would move to Irvine. Is that the new plan?
Marc Bell: The plan is to take what we call Barranca, which is the original facility, and we’re going to attach it to the building next door, which is 50 Tech, which is our new facility coming online April 1st. Those two buildings will do all of our module set — all our module and component manufacturing development and testing. All the assembly will move down the street to this new building. And that will be — that will just be for assembly and TVAC and a final testing. And so — but it’s — the 50 Tech building with the high bay you’re talking referring to is 25 foot high bay. The new building is 36 foot tall high bay, allowing us to do significantly larger sized satellites. We’re seeing satellite buses get larger and larger.
Even though we invented the cube set over a decade ago, we’re seeing the request for — people are going the opposite direction. Everybody wants smaller and now people want larger. We’ve seen it go, we’re now building. I think we have a single satellite house down that’s 800 kilograms. So, we’re seeing things get larger and larger requests because people want more power. But we’ve also are learning that responsive space and the go-fast model is what is more important than price and more important than anything else is getting it quickly. And so, we are seeing incredible interest in us being able to deliver stocking buses, and reducing down our cycle to do buses. But we’re also looking to expand into payloads and to go ahead and have payloads that’ll be stocking payloads as well.
So, instead of right now having a two-year cycle to design, build, and deliver a satellite, we want to shorten that up dramatically. And we have to — especially coming out of Satellite 2023 the big conference in DC overwhelmingly customers prefer speed to price. It was a very interesting conversation. And so, with all the robotics that we’re putting in, speed is something that we will excel at. And price is how is where we’re going to go make our margin and become profitable.
Mike Crawford: Okay. Thank you very much.
Marc Bell: Thank you.
Operator: Okay. Okay. Next we have a question from Erik Rasmussen from Stifel. Erik, please go ahead.
Erik Rasmussen: Yeah. Thanks for taking the questions. Maybe just staying with the Irvine expansion, seems like you’re working on bringing up capacity to 250 satellites throughout the year. When do you expect to be at that run rate? And is there additional capital needed to get there?