Archer Aviation (ACHR) 9 Mar 232022 Q4 Earnings call transcript

Good afternoon. Thank you for attending today’s Archer Aviation Inc. Q4 2022 Financial Results Conference Call. My name is Bethany, and I will be the moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Instructions] [Operator

like Chief conference Aviation. Legal ahead. now host, to Please pass Missan, Andy Officer to would over the our go I with Archer

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statements Exchange other section with Form XX-Q update make as future events. required and XX-K, disclaim a remind to or those obligation everyone of the we forward-looking report of any actual our as and and described events on are this like would forward-looking last future that call. be since today’s uncertainties result revisions the to actual to we subject I from the Factors in then, or begin, These that Securities differ IR our Form filed we risks statements. SEC’s Risk on expressed website. uncertainties to call, forward-looking and Except making or annual on Commission new the Those statements to implied and results statements in information will forward-looking website are risks cause during could our Before available materially filings on by or such law,

shareholder to a of financial presented financial these website. measures note, our comparable are letter please call, measures on directly basis. posted on Reconciliations IR Also most measures our in on GAAP non-GAAP included non-GAAP are this the certain

the open questions. with We we’ll will then and call begin up to commentary

Goldstein. And call the over Adam to with that, I’d like Adam? to turn

aircraft. eVTOL leading bringing market to to committed remain the commercializable We

Our is unwavering. strategy

our technologies operation designing, one. carry We urban have the pilot want than conduct safe enable sourced four development can of to aircraft passenger and areas. X,XXX for One, from aircraft strategy. supply optimizing and reiterate faster low and was approximately on advanced That mass be operating that business UAM the in and aspects And direct an payload bringing for key the means possible. has an our anyone focusing plus around towards thought designing noise ability building low cannot this goal a market that back-to-back three, in-house costs pounds enabling from Two, that I only of certification to case. day to key aircraft existing the manufacturing aerospace trips rapid to aircraft the a base.

electric aggressive Archer allows four areas: roadmap with each significant area. to with team XXXX manufacturing commercial out, eVTOL We We achieving milestones entered with and We development, momentum strategy, tremendous exited experience our team’s propulsion coupled advance and believe us our that certification our across across build key the operations. such industry XXXX in make technology business and an systems demonstrable aircraft is to what leading with clear progress.

United first transition payment announcing you eVTOL aircraft test for unveiling our first Georgia. experience, from in the a industry Liberty from $XX production high most International Covington, air Airlines, Midnight route to manufacturing in on recap an our year first this market. XXX in demonstrate from receiving volume Open what be a non-refundable taxi electric U.S. in House Manhattan event industry’s the included our to at Area I United flight announcing aircrafts Airport; downtown and to that Airlines; the highlights commercial Taking noteworthy I’ll Newark the that facility Bay few with hover the of leadership full million a less pre-delivery believe Maker than in

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to and we sentiment that is commented impressed unwavering a people years. sat the very in proud and his when operations Carlos auto perspective for of in leveraged and design deep world, has recently why This board very of aerospace best supply Archer expertise large chain scale the has he makes time, high that in manufacturing, CEO auto and result one has efficient, Airbus commercialize one and commitment unique both aircraft. the develop world’s this in the only the Archer’s on to "continually manufacturing and nearly CEO Stellantis of our that as Stellantis shared a he efforts our on him manufacturers the Tavares, of with is deliver." he eVTOL connection six are by During run world volume and manufacturing, having the expertise the of of experience largest design, ingenuity industry as

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the host a Covington, States. have with selecting the Municipal availability on potential ahead April, and now adjacent construction comprehensive with the first in manufacturing Georgia high the the to Covington United In site and exciting we location, of plan to market, in we achievement logistics. a the Stellantis we at Working test site considerations ceremonial celebrate diversity local completed the event ability sites industry’s volume construction this Airport. labor costs seamless Georgia. at In included to begun of future to we talent Key facility conduct Stellantis, in have operations, survey a across flight together and this

can of expanded The to up to producing per up facility XXX,XXX is build aircrafts of it be square an square XXX year. X,XXX feet year. facility by approximate so capable that The per additional to is aircrafts a support plan set production XXX,XXX up foot out initially to

out it more to shape. share this on details will the progress of as continues take build We

important as they expertise Just to is the manufacturing they as relationship capital experience and the bring the bring.

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gives stocks future to if couldn’t Stellantis. market. Tavares we and strategic with partner We believe is with access open structure intent happier industry. when the increase our this and unique the deepest being with minimize their and intentional be I Stellantis us flexibility forged The in the purchases his also we of this need it shareholding our to through by equity far quite a their goal strategic to Carlos commitment is at have that team and signaled dilution. the eVTOL of investment it by relationship across the it

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time was at National The XXXX top the key from eVTOL three aircraft FAA. into that our safely is integrating takeaway priority Airspace a together in the

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to technology to details over it certification turn and on now Tom I’ll progress. development Muniz share our more

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we XXX The reminder, over at powertrain. over Archer a As have employees has working powertrain on alone leadership XXX years our engineering experience. team of powertrain

discharge up and Midnight and electric propulsion what battery Key XXX levels, for on efficiency, density the and a propeller has on stand static a propulsion commercialization, level manufacturing. included engines proprietary power lab. hard representative under tested system power testing and with to charge builds tests optimized for levels these test safety, team at our kilowatts mass at the that been at key have The test integrated our been pack flight power working is on

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over part testing occurring certification two four-credit now of will XXXX. These testing occur advance examples in our that component system are validation and just many of that company are of as of

you Let now certification progress. provide on our an update me

on certification collaboratively program FAA process. with advancing the our work through Our team continues to

it great program. meeting highlighted, but almost to a to at with the Liu, seeing January, Administrator, support and host our Nolen collaboration FAA of Director daily the Adam from Certification, Lirio Billy the teams are was As that’s The along of from the glimpse advance others in we’re FAA. just HQ

Since been more FAA. with compliance our have of our agreed last the to means update, many of

at been the with matter areas majority FAA. AA, yet formally of compliance see on agreed technical design the means MoCs While agreed to with any significant with not we been the subject experts our of discussions that have remaining our the the risks based have to, don’t

we’ll this weeks coming months, work with effort the process close an FAA to to and out remaining continue on Over MoCs. through in our

FAA. As we’ve certification we to previously, our the agree discussed are review work SSCPs with parallel processing the on specific and or plans subject

tests certification each the recall, phase of analysis on SSCPs detail specific that you be If will of our provide completed precise the program. during and implementation

on now to year. to support certification number on that’s the to The that submitted a of our our April. make SSCPs we a end high why targeting all four-credit SSCPs next submit and and on between of the of takeaways the laser efforts, rolling We conforming are have progress remaining now focused we necessary basis level and testing are continue building aircraft

turn I’ll it to Now over Mark.

to an milestones commercialization And The in Tom. ensure centric of these our from achievements articulated, have check the technical, off, progress execution operating manufacturing in by we XXXX and a to team. world have jump areas that we make exemplary to we Adam company our still many outlined have decisions program certification, we development XXXX ability our revenue also achieve and can more XXXX. Thanks, class to commercial made generating have company goal to the in while continue program Tom across that milestone that XXXX. The unlock and

upon aircraft who technical to parallel industry development full a efforts Archer smart commercial the certification our have experienced our benefits in of and lot to commercialization. of and leading Archer, capture ready are At people to we working daily

to insight that executing the we provide we into little time. at model business that I’d target more As like transition a XXXX, into

to aircraft which sale Direct, Archer go is business with an to where is the Our and anticipate urban operators, through roughly the relationship, a market to One which our two XX% for environments ride Air, commercialization. eVTOL aircraft of is operate similar revenue each to early target Archer in model. in years the through We segments. to OEM business our of mix model to we’ll one direct similar sharing be

each is of sale a recognize revenue revenue aircraft. with goal stream Direct’s of Archer The to

So the the price average revenue of time recognize selling delivery for operator. generally of we the the ASP to aircraft approximately at or would

price aircraft of those selling Air’s goal The per selling per current mile. contemplate As seat by stream flight, our price million for or each up $X is an of rather price Archer agreement $X aircraft to revenue a example, billion revenue. than to the United with each of revenue for recognize flight XXX recognize revenue we and for aircraft, so

earnings On International mile. route announced ride pricing our sharing with area from that this last Manhattan passenger fall trip of outlined the City Airport in New York for typical model the framework call, per a last I Newark revenue pricing to around to payload our $X understand Liberty and four a that we seat

Midnight revenue per year, days generate aircraft per per XXX of Our XX load full million trips assuming up year. and operating day, $X.X capacity, could to

business Direct believe the model Air beneficial hybrid of Archer the UAM we proceeds Archer We is business. of fund from the our business can business that for with part potentially scaling our because side

liquidity, million of addition relationship relationship to the bolstered option two Stellantis, up in our to path recent to over our With commercialization. the Stellantis, ability The strengthened equity also our at our the to partnership provided Archer manufacturing of announced which years. we with we has the $XXX next deepening have with draw

million certain into occur available on that to million balance us based but two $XX allows which XXXX. of any so achieving if tranches expect needed, by is construct and allows milestones, opportunistic million $XX draw capital This on in to taking to is to do be The conditions over first business at $XX time. us also remaining The available account. we market

Switching our for gears and XXXX. financial to performance QX FY XXXX

estimates expenses million. to This of was an of operating total led loss million, $XX million. range which above midpoint non-GAAP $XX the adjusted XXXX QX of Our just EBITDA our $XX.X were

FYXXXX, year non-GAAP expenses million. full the For $XXX.X were operating our total

to materials transitioned and from Operating technology are characterized aircraft in expenses focused and maker people and XXXX our to eVTOL aircraft production demonstrator investments our continue mature to in work generally develop the Midnight. by aircraft be for on

In up number of addition, across to to shore operations. needed our we capability made scale functions a investments

expenses for included On basis, were operating of issued $XXX.X midpoint for to XXXX were range stock-based which warrant $XX.X our These QX our and million. a GAAP million above compensation of of United. total also $X.X million, expenses of $XXX million the results warrant estimates

expenses million sheet. $XXX.X operating equivalents with the million For $XX.X which million, full on exited of compensation as and expenses. million stock-based non-cash total cash of included well in We cash, year as were balance warrant FYXXXX FYXXXX, GAAP $XXX.X short-term investments our $XXX.X

full non-GAAP for the primarily for the million operating used million million for year expenses the and quarter cash funding tied We $XXX.X $XX.X in XXXX, the of year. to $XXX.X

than cash Stellantis We ending million strong in to on disciplined balance capital commercialization we provides half discussed other liquidity in with of count line our less industry. previously leading combined in get Our the highly remaining very full-time to head XXXX. companies us objective $XXX option most XXX our approximately heading structure efficient the equity possible. with stated have way with into personnel, cost our With

continue We efficient on business model. focus capital a executing to

at engineering to spending spending Midnight uptick our suppliers capital in that is bring we on let’s support our seeing support non-recurring Recall short-term materials a further aircraft, of parts that included for manufacturing for to QX increased estimates a up Finally, are costs buildout. per spending take and XXXX and to the plan, the look our in spending. Midnight related

spending that More concretely, uptick the had discussed. delivery XXXX Tom this goals of supports and the Adam

in facility that Jose, supply of shortly. a conforming come and for provide online manufacturing which aircraft aircraft, San and conforming testing a testing, fleet will more or integrated base six Our piloted can for FAA California, Midnight parts Tesla

expenses of million, those million compensation as ongoing requirements, well operating warrant which $XXX $XXX of to expected we expenses as includes GAAP total million. support business our and efforts, In anticipate approximately of stock-based $XX

be in of will million to the non-GAAP Our $XX expenses million. total ranges operating $XX

sector shareholder Archer’s a calendar and story. a We’ll with in share our our We’ve engaging financial with of our provided letter. active very be Archer’s in conferences to to discuss number in be investor on the community outreach this continue the and leadership detailed and participating to it. We website

with we call open can And that operator, questions. now for the

you. Instructions] first from ahead. Our of line Please Zazula with [Operator go the Thank Barclays. David comes question

the Hey, thanks question. for taking

Just on you’re compliance, the only… of means certainly not the

David dropped. has line like looks It

the comes Savi Syth of question Raymond next Our Please line with James. ahead. from go

good step about than a of in Hey, and of few should saw could pretty in but maybe given timing afternoon, the – is Mark, quarters. is curious, that that XQ everyone. of of what year? I progression meaning to you different spend remarks, non-recurring looks it seeing of the how final kind versus your of just you not kind kind start like – the past significantly the I’m ups think due with through guide kind we the fourth the enduring quarter some in or

of that that’s the million were Savi, XX the as that QX, components into – in spend spend, over – right. – that parts quarters. $XX you to QX persist of range of The think of non-recurring XX exactly cost next the as couple for can especially and we and well transition parts about materials, will million in around as that cost

this available. the $XXX – said Stellantis million pretty incremental from with that So sheet my today, process through well $XXX comments sit in as cash the as the confident certification balance I we around here in our I have – we talked through we million of our with liquidity as as remain

to we you that. but think and are think and about shape respect very in and can and couple We’re related spending NRC with over liquidity, that’s good to parts the how how on next spending materials quarters our we’re the – in component

are a little in that count expect bit the dilution that is share you and what to it, provide of be color to of – since capital, And on Stellantis you helpful. That’s kind tap just milestones able it? tap kind the more XXXX you to the able as mentioned on you to the achieve

X-K. in to was milestones plan don’t what discussed, – any talked year. sorry, business the we’re going go further quarter We to discussed achieve than tied They to – are I that think this some this we or

than on And so, pretty any comment we But won’t it’s other further straightforward. that, it.

Thank Got get you. it. on back I’ll queue.

Thank you.

of from comes ahead. the question next line Cantor Please Fitzgerald. Our Sheppard Andres go with

Hi, wanted that particularly questions. an quarter, on just maybe good when Congrats might expect Can maybe taking update G-X, on kind stands to or on, and on to clarify. we the for Thank where on front? just I give wanted us thanks certification, everyone. on you. of afternoon update an our touch you that

Yes. Hi, question. compliance This c Thanks with for is at reached call, the the the the the G-X. compliant majority of said the we’ve Tom. on on for Andres. other point, – this agreement to criteria, means airworthiness in we Like the

that you stuff. talk when really So about G-X, it’s compliance means

submit the that all also said our plans We is to April. cert goal of our by end of

point with really it’s because the So blending linear pretty process. cert and compliance things a this kind are we’re of working we FAA nature the across plans, don’t really the because not technology, want means way things together. to get into percentages At of for just these of really is of sorts tied

with teams though, the in week that subject are experts. meeting said close. out was having team battery D.C., our working matter Last So super

the to lot so days, our really a about we’re week in to we ACO there. the of a continuing are, LA couple progress. be of we’re proud going team for from In big feeling is general, super good Next progress make where office a on

color Got it. Tom. Appreciate there. Thanks, the

So XXXX. still on track for QX

think update. was the last I that

confirm to wanted that. Just

entry service more Yes, really it of XXXX. in so about feeling on We own our terms into we’re cert good. in think for the deliverables, side

the So, need We cert all but about is infrastructures. lot, need we side the type the come the we together. side talk reality a We need to SFAR. the operational

we XXXX, looking into service entry good. So as at far as feel really

feel our good. For control we’re everything the for reliant But on that’s FAA type obviously. really we also in cert,

to we’re what but able speak can’t where we really delivering the our be about And feel are. good against so, FAA do, plans, will to we

ramping that of production is up in taking to it. Got initial few maybe like? initially do years? of follow Thanks. that kind Like be annual to guess? guess, of of And that look in you that you’ve throughout around of outlined aircrafts. aircrafts over XXX a what transitioning right of place X,XXX thank XXX Or decade, quick a terms the north I kind Wonderful, I does you. from kind up kind of then X,XXX, terms aircrafts to timeline longer dated in the here foresee expecting production and Georgia, capacity the

Hi, Andres. is This Adam.

that built first we feet, to square just have being XXX the the not is that recently two, XXX,XXX phases. have announced, has does where XXX,XXX to second per the year. of year has So XXX up factory That square phase and that broke phase between The one that. And build ability which phase is the up per certainly capacity phase factory, factory ability additional ground the the that’s to to mean the phase which sort is build require out, what and to one is across one build feet. an a would would aircrafts to two And year. would X,XXX to aircrafts do of There we’ve XXX,XXX recently. we first then

to that the a one, that there’s a of happen. while factory vehicles we of lot really lot is connect So produce moving even still parts to being in have order to built year make in

really off immediately we just so, other going our put come service. the that line to vehicles many production And to into and are factors against balance that are ensure the

on to in We local vehicles. board, to need cetera. infrastructure have for So, example, have et deploy place municipalities to we’ll need

details. we So provide to as more commercialization, we get closer will

Congrats Wonderful. pass guys. Adam. you. Thank on I’ll on. it the again quarter Thanks,

Thank you.

line the with Our next question David from of go Barclays. comes Please Zazula ahead.

process the out I little disconnected How you could what the works? data, you’re getting going testing that’s to a right now how earlier. for the component and the able credit of that the Hope process about leverage for eventual gaining process apologize testing testing the process? feed with specifically I’m and not bit into If testing dialogue were testing FAA credit to I repeating. the ask for just for

question. a Hi, Tom. great Yes. This is David. It’s

aircraft got you’ve requirements, you’ve those and certification at then shows that And So systems expected. what the as verify the a that ultimately think to the all way the all of the meets and data right, about matters day the and really design of tested that is airworthiness you’ve components testing, performs got to design that right? that is end

that build the design? this the our to it year, the shareholder letter in that initially how about the to at certify. how much And we in ways middle level that mature of was is So the from outlined design? way aircraft aircraft which here many will you then essentially removed of Midnight strategy risk is a representative will be is aircraft think have non-conforming in So flying we one

the aero similar, similar, components the is same. will be So performance all essentially powertrain very very the it’s geometry

certified So aircraft. it’ll be the on

four-credit So with gives testing all of the able we FAA. testing the through efficiently do confidence will be we us go there to that

in then again for designs sense. So it’s verify traditional do yourselves, with testing, really do aerospace, conforming the credit. and to the that right, aircraft [indiscernible] testing company the makes Hopefully

it’s getting don’t confidence pricing you’ll if us commercially squeeze milestones for why that specific I on these one the Mark pricing mechanism as line in does. give that have more preset. can but want be so this market-based sensitive, the and there, know Then with probably or far yes, then, in them a I the Stellantis the achieve you And will It give you’re year? milestones, you whether is pricing to could color as than the you on relationship mechanism, any

Yes.

milestones, as to aircraft. So rollout would expect are they I the you we mean, – they ones to us the that with Midnight were deliver respect

our and our already radar they’re achieve mean, for on to I were year. So – plan the they in

finalized so solidified just them Stellantis. in with that And have form we we the

With that think on at evaluated sort based the approach what it’ll of – market to we the be in the disclosed I priced where is we X-K the down the draw down. market we that when a around respect pricing, to draw time

would that typical something So like this. be in

Appreciate Awesome. Thanks it. very much.

Sure.

Thank you.

of comes Bank. question next Deutsche the with Our Please from Edison ahead. Yu line go

taking for you our questions. Thank

clear off, put a fully for timing getting flying build some initial First conforming out and you it’s pretty on aircraft. Midnight

several less And maybe Midnight, I that one getting up are on year I testing. there’s non-conforming building in about the to way that noticed a I non-conforming they’re whereas others think between. building four-credit aircraft think only

have on push enough forward timeline? you what testing the enough guess, I that you gathered data done that, So and can this gives you’ll flying that confidence

this Edison, Tom. Hey Sure. is

flight invaluable strategy rigorous and design Midnight. lot taken tools, a with I lot the think context, to So and just into Maker lot a then you validated our architectures, system of design we’ve very a generated test validated here, We that the it campaign. that data goes we of our we all of carried forward we back if went a started into of it right? through put

lot ultimately confidence development following rigorous And we today design gates, that’s a approach, going right, close we traditional spot be of this us we’ve to kind the just is positioned that’s the right? the a have design really of certified. to taken that have where And phase very to

earlier I idea then as way sixth our to with data get the was increasing aircrafts, to on, certified. going conforming a ability just building the the that on it’s just it’s design just mentioned in speaks that non-conforming But aircraft continue accelerate that confidence. think to and I we’ve close So confidence that’s be the one the to to to our started we manufacturing it the very design have ultimately

we’re on conformity to those with proceed So parts. happy

Understood. timing the then – that I the how Jose think looking production I you sort production will obviously transition Georgia? six San first But about it of the version working think from built with guess out we indicated smaller to the method of much line. of what’s to is those of or the And of new should to you’re – just that is sort move Georgia like bigger kind timing on things completely a and the a kind it kind Stellantis? out conceptually of

is Adam. this Hey, Edison,

that I’ll chime here. a can and maybe in at crack take Tom So

as you manufacturing out building have So we mentioned, two facilities. been

and San to that every HQ strategically first sitting bulk engineers The is our the one directly are Jose, is where located of next in our one day.

And for for so can well. aircraft testing It we’re that of which facility per credit conforming the here test which lab, very like contains also integrated our conducting year. soon as using coming is tens online produce

to in planes and planes those out test, we’ll them take will we’re April that doing like that XX and of really build We’ll facility. online move come which facility at So the flight then Salinas. first X to

we is Georgia. built have which a in facility well, there Then as second

one is that, online that and today likely that a will going come process in XXXX. through build So one out

getting located a of And engineers will about be the medium so can the iterate back kind where once production the sort to and the where can you think commercialization here go over quickly. of kind The certificate forth shift vehicles can or have is we larger our to test about facility production then work, closer rate next begin. between rate and facilities the of engineers a to low the to facility we And really sit. we engineers the are timeline and can

some just of And you to I on process the traditional are is that a than guess production – Georgia and kind guys guess more of the that, kind sort up next or gen one, enable of for working you the aerospace? scale will Stellantis follow-up I proprietary

Yes.

traditional, the is So there. the aircraft advances Tom. the on be manufacturing the is of closely several out and or about hours think with that production XX the relatively working to It’ll the we’re next XX station system let’s say of The design pulsed for traditional, work. where this that order But these Stellantis stations way to spends of maybe for right? rates, at in the it’s per chunk then kind vehicles more sense with line team a

all like our in like pilot content will have we’ll be and and could out in you work it’s be line, space if optimize So compare essentially same. San Jose you – think We’ll that the Georgia. to at the the just here line level processes doing flow to all more resource if a the of what work it

plants labor So the too does content not what and dissimilar the already from it’s flow manufacturing Stellantis optimizing today. in their

to talking to leverage there’s it’s and down are of then that and to thousands in aircraft, of more to much automotive to get But heavily step about those be higher line further volumes, to by processes scales. get step to these opportunity more the process what think see there. you going similar sorts more If automation right, start you a

color. Appreciate Thank the you. Great.

you. Thank

with Please Our JP next ahead. comes go Bill the question Morgan. from of line Peterson

more Just get if be about I for testing XXXX. testing. trying a if same to testing? have And the certification. you testing doing four-credit of I wanted for going get to is aircraft. while were if enough feel able to year different a I all point timing a trying realistic the think to year you to be roughly, six Are that’s or or early is that a the guess, time they for talk types prepare how of you feel about that start to the in guess, XXXX, type and to

question, Good is Yes. Tom. Bill. This

think XXXX system at So the component wait if until the and about to you going not four-credit level. holistically, that’s start testing to

We’re level already doing a tests lower lot up that’ll of build that. to

yes, all that to test we about as as flight building getting conforming have testing flight the are is campaign aircraft in you’re through of really reason So we spot it’s XXXX, support the why piloted And can. on, efficiently we the multiple aircraft. conforming or

on But year. we whole lot the process. company Hopefully flight helps. to whole relies our time of a on six So think four it order a out campaign testing execute able having belts probably test to of of not on the is actually the credit months, efficiently us five that to under be

Mark, switching like believe, I just helpful. to spend. Super more over

talked you but for much buildout think think San be And to CapEx about year? how about go year? how lab Covington, OpEx, have should I then still It your like still contribution some this Mark this Jose. for we would for sounds in

Yes. put If there. construction year down partner current until an we with Covington, won’t really with got agreement start any our we we’ve capital early next where

the Covington on side. minimal it’s So

that that it’s as the million in but about, you $X side, talked of Jose capital not can would OpEx spend I San well quarter $X into factory, the in million embedded sort just think about as for to On go this of non-GAAP that general.

in got current for that budget. what our we’ve So QX, is

for Thanks that. Okay.

you. Thank

next Please go follow-up Syth question Raymond with on the Savi Our James. is ahead. of line the

Hey, thanks the for follow-up.

place? you of in and first know side making United. as to doing, that’s you’ve with infrastructure of the curious route identified that at that that route first start on that commercialization you’re you kind need work operate sure kind When Just looking do you the

Adam. is This Savi. Thanks,

during took we’ve infrastructure had updates regarding exciting two So quarter. the that place

at that was first HX. built first Archer we did what we called We The Portal. start out our

me and strategy. into plays this what let explain just is kind so of this a And to minute take the infrastructure how

and find to need the to we where have really off also be but they take and and to make user they are great to want people need land, a near we So located experience. we places we that go, sure customers where know know need to

find had a practical, affordable. solution to that we really but And so was also

Portal, the of And so up letter of concept looks what with shareholder we this like. we which Archer snapshot came it in a showed our

are to to how movable and experience we books customer So a a – to when the check just user stackable, be they modular, really portal we their journey. entire user from these like trialing flight portals designed these in entire

process actually and went entire working the And so operations. of to that through led ConOps on out process concept we us flushing this or really

And roped so United have then we as in team well.

at Newark, led started land. will And to currently of them we a so working the vehicles to of with which sites the in we to has bunch this. And really the the are through this process where conversations selecting go where

it vehicles And walkthrough think to I narrowed final selection few. can week these make the up go. doing with live we’re we several the where ultimately locations had think and offered United down a will team different potential So where we next actually United a we

save So is whole possible. really as much friction, so time though goal the the goal. travelers That’s the as reduce to whole

the locations really the You same process. have announcing in want United a time, United And seamless future. at near with then additional working at to also on Hubs very we’re

this, kind from that have kind but are like appreciate contracted? just of that I might of you when you’ll of contract That’s color. And talked supplier I where and then missed parts XXX% about critical the standpoint, you have that great. have a a just,

Yes. Hey, this is Savi, Tom.

There’s of today, of So that critical few locked there. all got getting But line are that really contracts a with still we’ve as getting a that over you’re we’ve kind little the essentially stands at. of XX% the just suppliers of it over bill selected. finish with up parts the materials content,

less commodity today. forged and that’ll last in time So are we at like critical, bit, like those things more, with remaining parts, think that, little feel of are things as, parts where could machine selection supplier we really a go engines it’s it let’s say, tech the good but where components, you electric maybe the into

so much. Thank That makes you sense.

you. no at are conference CEO, additional time. pass back waiting for any questions to this I the Goldstein remarks. Adam like There would Thank to closing

certainly attending for you call. from quarter-to-date has our exciting our been the most This Thank perspective.

We’re Midnight nearing completion of our aircraft.

year. best the I’ve We’re up starting to ever shaping It really XXXX It joining has is of is worked to and with together. conforming work for today. you aircraft. team us be couldn’t that be an with Thank incredible prouder we’re produce that our been our the pleasure And a working team. doing I

That concludes your Aviation enjoy all the Archer I Inc. the XXXX QX rest of hope call. conference you day. financial results

lines. your disconnect now may You