Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Howard Halpern - Taglich Brothers.
Howard Halpern - Taglich Brothers
I guess I’ll ask one comprehensive question, concerning Crossflo’s you know your revenue projection of the $3 to $6 million. In terms of the process, you talk about pilot programs. How many pilot programs will you need to get up and running to reach that? And what is the process with getting the pilot program and then getting a full implementation of, you know, a general program out there?
Rick Goerner
We’re going to turn this to Renney.
Renney Senn
Yes. I’m sorry. This is Renney Senn.
Howard Halpern - Taglich Brothers
Yes.
Renney Senn
I’m the President of Crossflo and the pilot programs are the early stages of programs that in and of themselves expand. Though the revenues from these pilot programs may start in the multi-hundred thousand dollar range, and as they include additional connections to additional agencies and grow in approved rollout, that grows exponentially over time. So the pilot program is not a stand alone that ends, and the revenue from that is then gone.
With respect to how many pilot programs it’s going to take before we get to a – I believe I didn’t hear the last part of your question. It would be helpful if you could repeat it.
Howard Halpern - Taglich Brothers
Yes. To get to the run rate of that $3 to $6 million, I know you’re going to have the pilot programs start and I guess each individual pilot program may, you know, have a different revenue max to it. So how many programs are you going to need to at least get to that minimum $3 million?
Renney Senn
We are working presently on a sufficient number of pilot programs that if they expand as we believe, and if new pilot programs that we presently have in the pipeline are realized, we expect to be able to meet that run rate in the second half of this year.
Howard Halpern - Taglich Brothers
And just one final question about you talked about Holocom. That is now going to for next fiscal year fold into the equity earnings of affiliate companies?
Rick Goerner
We expect actually that to be accounted for on the cost method, and so it won’t – the results of its operations won’t be reflected on that line. That line will remain the line where the equity investees, PDS and Talis will be – their results will be reflected.
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