GPUS - AMEX

Good day and welcome to the Digital Power Corporation Third Quarter 2017 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Digital Power Corporation. Please go ahead.

Welcome everyone. Let’s get started. Today’s call will include our Executive Chairman, Milton “Todd” Ault, III, who will be hosting the call. Also on the call will be Digital Power’s CEO, Amos Kohn; as well as William Horne, the company’s audit committee Chairman. We would also like to welcome Lisa Thompson, who is a financial analyst at

We do have several calls in the queue. We will go first to Lisa Thompson with

So, Lisa, right now if you look at our interest expense on a consolidated basis through September 30 we were just under 1.4 million. Of that, the bulk of it really relates to non-cash charges associated with the warrant issuances and the beneficial conversion features and such attributed to the convertible debt, not even [Indiscernible] preferred stock to a certain extent. That 1.4, 1.2 was non-cash. So, we don't have a lot of cash interest and I don't expect we will going forward, but ultimately it depends what financing to be put in place the rest of this quarter, and we have not had a chance to sit down and finalize what that decision is going to be. We will be next week. I know Todd has got a couple of possibilities that he has been evaluating, not have a chance to sit down as a management team with the rest of them to really look at it. This quarter though, we might incur a greater amount of interest expense and that’s only because - right now we are kind of pushing our threshold of our authorized capital. We have 30 million authorized, and you know how the accounting rules go. When you go through and you look at your authorized capital, you have to look at all of your potentially dilutive securities, which means we have to include all of the warrants, all of the stock options, all of the shares that are converted, if the convertible preferred stock were to convert. And on November 2, we slightly went over that number. So, to the extent we do additional financings, we may end up in a short period prior to December 28 where we have to trade some of these under a liability treatment. And then they would convert back to equity, the accounting on shareholder approval. So that could have a big impact on non-cash interest in the first quarter.

Okay. Alright. So, what did you get paid for of the $1.3 million? What is that deferred for? So, is it deposit or something?

So, when we enter into the purchase orders, we right now have a purchase order for few machines and I have initiated a purchase order regard to 30% down payment, which was [indiscernible].

Alright, so that is where that came from. Alright that makes sense.

Exactly.

And we will take our next question from David Demergian. Please go ahead. And David you line is open.

You will absolutely be seeing some filing before the end of the year and we’re committed to getting that company to current.

We do have another question. We will take our next question from Michael Van Patten [ph]. Please go ahead.