Archer Aviation (ACHR) 11 May 232023 Q1 Earnings call transcript

Good afternoon. Thank you for attending the Archer Aviation Q1 2023 Quarterly Results Call. My name is Matt, and I'll be your 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. [Operator Instructions]

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

Thank to welcome call. afternoon, quarter Good conference Archer's XXXX you. first and

and our Joining today CEO; our CFO. are Goldstein, Mark me Founder our Mesler, Adam Tom and Muniz, COO;

Please note contemplated to results will differ from those call, today's the be These forward-looking statements. actual forward-looking that may risks involve cause during by statements. statements and we making uncertainties that materially

please information as refer on in forward-looking our future most no on about including these assumptions to risk more recently we report this these uncertainties, the information and For or result based undertake on filings, obligation update to as risks annual a make statements new are events. that Any SEC of today, factors of our we statements call Form discussed XX-K. filed and

in of on A call, non-GAAP measures this financial non-GAAP During measures. included shareholder may and we GAAP to GAAP IR website. both our letter reconciliation present is our posted

And to Adam? call the like turn over Adam. to I'd now,

Andy. Thanks,

commercialization certification leaders in with XXXX shifting at build the be our year to and of landmark path as for certification in is aircraft XXXX. in will manufacturing to scale. building want reiterate the that Archer part the industry. to Efforts of conforming a advance I an aircraft used are testing strategy: most efficient

initially a largest safe, plus back that aircraft segment design aircraft be will quiet to for passengers for has the Our electric sustainable, trips aircraft. market We a four focused case, on can the believe for business short back perform UAM UAM that pilot. rapid, distance, optimizing

scale. to-date technology, position operations on make rapidly work progress simultaneous ability across we a team's with expertise made commercial in substantial gives execution industry-leading streams: to and to and our us high Our begin that leveraging will in XXXX manufacturing The confidence the we've continues be operations. focus progress all has to certification, to commercial

spoke Stellantis, additional brands in with I through world's aircraft we providing to build announced as to partnership commercial to recently Maserati. with whose quarter, iconic capital joining involves Jeep, Stellantis detail to help Remember, agreement include forces manufacturing and with the Stellantis well of automakers as Last our Midnight one Archer scalable Ram our ensure operations us about largest that get manufacturing.

exciting manufacturing Georgia. share on Covington, capabilities, those our our I'll Jose, Today, facilities San to up some in updates stand including efforts progress on and manufacturing California joint in

on high to in and opportunity have our option now up expansion This recent XXXX. partnership, addition to an air investor it's once-in-a-generation of end relationship strategic an Our collaboration supported equity industry to our of shared our of by with for they Stellantis. Archer our safety. Stellantis Stellantis transportation between for draw and redefine mobility and is additional of XXXX, goes to volume on the all profitability, part sustainable a with built manufacturing in XXXX. a became back to And urban as committed $XXX capital million goal initially a and manufacturing developing focus in above both urban Archer Archer else, efficiency, in quality, upon at the

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to freedom partnership to whether them boundaries helps provide or of continue by the road this push sky. mobility, Stellantis, traveling For sustainable

Stellantis commitment our across a strategic speaks industry. the relationship belief market We their for eVTOL partner this by by Choosing their to team transformation. the we far UAM the partner to have is that technology deepest to Archer right the with and new as drive date believe

slated is facility XXXX. Our high manufacturing Covington volume come to in online

at spans ability development XXX Municipal to of per adjacent Covington up produce Airport year. have will XX-acre to phase the aircraft the a site where first to we Covington The

give massive Archer largest manufacturing Stellantis to result annually. the that of to ability end would aerospace operation makes phase year. a second the us and produce planes The the manufacturer team by produced up X,XXX the be per in world would number aircraft The

this around leveraging as Covington short and, up This headquarters, test our from here is conforming capacity our to certification the for aircraft. the use for build of purposes San ramping Until produce facility incremental lab Covington. manufacturing be Jose, planes aircraft our facility we right used manufacture online, in tens facility to term, per we're needed the and it we integrated conforming our can located corner facility just are can year. In manufacturing in will future, the

work early supporting are has doing infrastructure across a the this our launch commercial Commercialization in robust continues towards and to geared everything commercial manufacturing on be areas: for of All and and been is we've Northstar manufacturing operations. technology, certification, XXXX. done focus

our continue great the on we operations work the mature commercial of front, manufacturing to our out. build are doing all teams Alongside,

This our launch milestone to support plans operations announced the airport city route, and enthusiasm center our strategy. a of another saw city, go-to-market our in quarter, across the key huge UAM we next we We City and announced to board. in Chicago as

of showcase of the is of with utility this in is Chicago, indicative that The future an sustainable view will Chicago step State of travel. and their in City for the the a the the Illinois, Department be incredible forward of and announcement Aviation, was close ComEd, for which Chicago, coordination Chicago

and interest all country from address sustainability We UAM high can of for the are over traffic solutions that levels other seeing commitments. municipalities both issues

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UAM NASA Concept Operations of the to is FAA and nicely the great last news that aligns The week. our X.X approach announced

Defense we have over cases quarters, use about programs several Department with on several commercialization in we've we've significantly focused talks past been also As relationship. closely civilian the working our on our and about of been for expanding aircraft. But Midnight the talked the

As performance our specifications, towards strong interest the of using aircraft based payload, non-kinetic rescue use expressed Department its aircraft in its supply for logistics. such for including progresses the operations Midnight has on and Defense commercialization, cases, as chain

and In Board the leaders Services yesterday, six of Navy support these United military appointees. just represent Government States distinguished These and Air with formation efforts, announced a of we Advisory highly-decorated the Force, six Army.

on to perspectives Government of will and level us U.S. are more to procurement programs to We strategies have U.S. expertise leadership of experience to opportunities This fully further supporting and eVTOL our and additional fortunate and Federal government build extremely explore significant Archer. commercialize this onboard with aircraft. advisory agencies to allow engage board

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to over Tom. now it I'll turn

Adam. Thanks,

path have months of to Midnight announce couple is on service now our for team been some in last These hit as into our aircraft the complete. very that of importantly, XXXX. very bringing Most to Midnight we've key production I'm milestones exciting first excited

week, was facility test reassembled. delivered flight last and aircraft Just the Salinas in our to

cover of You shareholder in can Salinas our the on see a aircraft picture of letter. the

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of team our rate Archer. before, developing Midnight's Midnight's design advanced and discussed been manufacturing, the advantage hard and with engines, over batteries key differentiator and the system. high leading coupled performance we've engineers that work for at electric safety of couple of propulsion We believe As for its a is have proprietary years past electric

support and electric per to to deliver dividends aircraft after and the shortly Our certification our strategy year The past as of facilitate up has realistic a strides ramp these team more led getting to to batteries strategy certification. certification of allow optimize made streamlined great process key design innovation of engines to this and the plan us deliver few systems. hundreds manufacturing engineering on have us our the manufacturing to seen of months

battery critical testing cell and level. on down Let's Midnight's pack We've of front. drill the now batteries the completed at

for believe industry through past have hours by with safety extensive safety and team the testing packs Midnight industry. testing. hundreds we levels the has of over been cells, and standard reliability months are thousands across flight battery validated preparation in which the proprietary Our reliability highest cylindrical built few Their of of the

Cylindrical stringent packs, the pads, lightweight form safe, cells battery built-in safety which have and key the interrupt over aerospace efficient, dedicated alternative requirements. as current devices factors like most design of vent such cells advantages safety meet pouch which and facilitate

currently, for For best are aerospace that these the reasons, applications. we believe cells technology cylindrical

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of to FAA certification. continue Batteries one where many make we are on example just the with progress

plans our XX submitted of now FAA. subject-specific have XX We certification to the

will be phase that to detail during which reminder, all FAA SSCPs type precise will project, to in we relevant on FAA specific the the the a implementation tests requirements completed demonstrate meets analyses provide of As certification. necessary Midnight each and the receive that of

or certification conforming We requirements. remain submitted aircraft to overall of with our for project also "for This the our on project-specific all provide certification next supports for complete global performing plan, PSCP. guiding credit" the that coverage testing our is document have leverages SSCPs ensuring FAA progress timeline our all entire year. We focused the with

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next aircraft of this of Lastly, that later in there's support year testing "for can final of is year. we fleet aircraft certification used area This conforming an aircraft assemble be credit" will the the Midnight year. where initial tens per assembly that production will

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hand And with it discuss quarter. financials that, I'll to for to over Mark the the

Thanks, Tom.

While the commercialize and meaningful a have Adam allow urban so air to demand industry and any manner. we in mature disciplined important base great must are our the only in forecast note this it's our a us sustainable manufacturing in way, of supply Tom will we financially industry to mobility. that to that making are and also but To highlighted receive we this progress type not XXXX, efforts on capture of doing launch for capabilities certification aircraft, commercialize

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liquidity progress on manufacturing every and maintaining about get remain commercialization We questions we our efforts, runway. get to healthy focused cash continue we quarter to mature a As our operations also being necessary with sheet. sufficiently and to cash balance $XXX on to get we've short-term around communicating comfort of consistent our very and 'XX We been with there. capitalized our QX ended million the commercialization, investments

in of XXXX based tranches achieving we a can needed We capital minimize we us total to upon as detail to million agreement Additionally, the of our us we that dilution potential giving to quarter, order three equity we structured an million. when last give of in in take has end $XXX discussed draw $XXX that now flexibility and milestones, Stellantis investment to certain us around in between committed on as as base. the shareholder effort

factory our that the also previously fact finance and It's the an worth deploy with Covington, LOI will our build partner Georgia, that to equipment there. announced banking in we revisiting in Synovus, we Georgia

Our the you it intent impact facility, posted of progresses. enter minimizing construction we will cash. later a facility this of year, into is our cover nearly finance all as Covington near-term that to will with keep that cost Synovus the We'll the

and As have aircraft you a also to how they take provided aircraft. pre aircraft. them XXX option United the see, can another thoughtful dilution. an potential for payment for very we with we are purchase about delivery have shareholder that being XXX first unit we To manage XXX million date, a agreement our $XX liquidity with Recall

aircraft United. and certification we that As from the through agree further program, upon payments progress will delivery expect additional we we pre receive

operations get Beyond announced these XXXX. in to commercial previously remained and Stellantis Archer helping committed arrangements, United to

the have and to support investors. strategic fortunate partners continued two very are We of these

have and forecasting efficiently. our are our rigorous budgeting operating ensure support resources to and process, we making maximizing requirements to optimize manage proactive milestones goals. to program to discussed continue and flow achieve constantly our our necessary path cash Through the measures financial company are and I we to and expenses we take our have As commercialization past, taken adjustments in our that and to our reviewing

on market committed We at thoughtful, bringing promise scale to to disciplined are of delivering a the manner. in financially UAM

right we are strategy We to do confident have so. the

to for our 'XX. performance financial QX on Now,

in and Midnight midpoint million, and Our build to of of to The $XX EBITDA right headcount adjusted be expenses development loss our led investments This operating preponderance were at range. million. to $XX engineering expenses test non-GAAP aircraft. total continued our our operating estimates the an expenses

non-recurring of approximately six from We conforming also million buildout for expenses components begin will the quarter. costs will we this part base be our making are our supply term, for aircraft credit" to vendors investments testing certification investing long year, The the the well as testing and the FAA in parts over development program. for non-recurring at for parts that of as investments were conforming as the with in $XX "in and our building Midnight used manufacture in and later

costs discussed should last generally persist these beyond I've quarter, not As XXXX.

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

of million million equivalents of expenses for capital offset of the $XXX the with million in working invest expenses, non-GAAP quarter $XX.X million the partially on $XX timing. by and quarter, balance used cash and exited cash $XX our We primarily short-term sheet. cash, in We operating to investments capital

six we value continued supply shareholders, conforming including our now test conforming credit" laying our investments establishing that long-term The facility for to and our for long-term testing our integrated yield Covington, lab are Midnight, "for foundation for manufacturing making California will the of Georgia with are and Jose, in FAA, San Midnight, development Archer's parts the we for necessary base aircraft use facility. parts

balance million potential with equity discussed, to us liquidity cash with get $XXX commercialization in I the previously through coupled XXXX. from million provides ending Our in Stellantis, $XXX to of potential capital

GAAP with our Total expense between 'XX warrant compensation spending, be which let's of million. $XXX for which includes consistent operating operating million. levels. QX expense to 'XX million take look a and approximately are stock-based our $XX non-GAAP anticipate million and Finally, will estimates $XXX expenses of at expected million, QX total $XX $XX We

attending outreach active calendar QX 'XX, events in in U.S. the We and Europe. both had a very investor

non-deal educating our our a and We've on website financial conferences our provided our strategy. We shareholder letter. calendar be in with on IR community, QX sector will and 'XX and continue outreach investors Archer detailed roadshows in many participating will and the

open operator, up that, questions. for with we'll And it

first [Operator Bill Instructions] is of the The J.P. Peterson question line with from Morgan.

Your now open. line is

thanks My the afternoon, the government branches and on for Good is Yes. question the taking opportunities, and Nice maybe in the government progress across organizations. the other questions. quarter. DoD

like Given we that Georgia, volume in really split should network, maybe XX-XX between how how past when can obviously and to the many infrastructure additional that mix, network aircrafts building within longer go-to-market. lack out I sales about trying San talked think it opportunities the we high and awareness Just that build like things be the can't about maybe context to given Jose in units, figure and how government about especially site building may you're take sounds thinking the just in of know -- that? you

This Bill. Adam. is Thanks,

really we've had been We've it DoD ranging from also gotten our autonomy. So, relationship with context for DoD the working just put different -- working industry. to we've years. them whole the with on several trying as the we've we've been I'm really DoD acoustics deeper in and across expand the several you. across their And for seen relationship, programs, to expanded

discussion been of so, heard we use that use DoD. the one of comments a And and and capabilities. of payload things lot think, we've And there's cases a that's, these on the attractive lot been been can vehicles around I within Archer's how has

volume we've And been that so that the has conversations really of increased having.

lot that that's kind what's there. driving been so put Archer out really deepening of of And has activity this a

of we're process pursue strategy kind all now have out government best where DoD who we into really strategy really the that experience, different budget go So, branches. opportunities. advisory folks form figuring and from of different the we deep decided the to worked side, the branches, deep who's range And have to the a to different on how -- of some board the the across this

that ability building that day the vehicles, and to the from platform to things very was from one. manufacturable relates critical to of was was super it scalable a beginning deliver As our one Archer

gives a we've facility flex production the up volumes. our so, built us ability And to that

build can planes year. to facility So, build Covington enable we per XXX to in there the to planes. And us a Georgia up first X,XXX second that phase phase, to up will is the

demand have we if the of So, there. is can plenty we that deliver capacity

put the I this through think DoD, size start to do around more them. is think we're we and we're as should a the working become our opportunity lot advisory So, work, board now and I closely together, timing the materialize, with we clear what we'll doing for on going

as maybe you cash it numbers today, $XXX Okay. And But Stellantis. Thanks million you for take for just then can put that and -- how appreciate I from Mark. the question you think hoping at just some account the of that. into kind look this. [indiscernible] next of is kind around

your about Does this think off. we CapEx about mean absolute don't should that expenses an the should I year go OpEx comfort how talked in a to And occur? one-time year? quarter, you few this basically one-time try basis next trajectory this of that as more around believe items rolling get and OpEx some down directionally year burn. Beyond for Just these cash

Yes, sure, Bill.

at guided provided look costs you guidance GAAP on of guidance we $XX did the provide that at there for and was of non-recurring expenses. landed if within same midpoint QX. the million our we how we QX we QX. and QX, So, And QX, expenses non-GAAP roughly

last on on our fairly said is quarter-to-quarter that that's a outlook. current I consistent As number quarter,

yes, as as said, level to team will you be build can not But at XXXX, costs -- -- go small we cetera. So, expect as continue the non-recurring you costs out roll into we when base a uptick off. There to spending non-recurring those et in persist. these look will I

I've guidance. materially So, a -- probably don't changing given the forward quarter-to-quarter. are see not at are us spending see fairly I -- directionally that don't numbers we're I annual quarter-over-quarter. increasing correct you giving

That's Thanks. good Okay. color. Thanks.

next is Sheppard of Thank line your question. for with question you Fitzgerald. Cantor Andres The the from

line open. Your is now

on follow-up first Congratulations on the the relation and the afternoon, with and regarding all our Bill's question. good announcements, DoD. for the wanted thanks to quarter I Hey, taking Adam, just question everyone. maybe

expected color last and congrats if what's little perhaps give materialized us color was I now to can the on on expansion. done years? of a relationship done? just Thanks. that that kind how been on wondering I what in little you kind a be more think maybe is has of few Maybe

Yes, sure.

path beginning, to with market. always has stated amount We been a most have to Archer's possible. to sight of on. smallest always we've goal been the efficient as the tried line what clear So, the of find as focused That's distraction from we've very

so, think biggest the on. focused We to the commercialize kind market we've we're market it's And been market. civilian cordially and working the that passenger of

along on with There we've to of and areas. the the opportunities way autonomy example. DoD done lots partner programs been have on different as Autonomy, different acoustics an several

as it's broadly into program. the And so capabilities been also of But DoD's it's helpful broader some progressed aircraft. enabled it the really overall the within see ability to or just our

maturing the design now on feel our we've where been feel comfortable at. the with we to and with timeline. commercial feel comfortable So, ability we're very the manufacture certification We comfortable vehicles. with side We

from So, our track market. -- dual at got ways start path looking to to interesting perspective, became our it to

we to that's good open then was was kind in. our DoD of so, more were those vehicle And payload, several And One become technical a interested conversation. key example. there having very the that to benefits

to ability around the the vehicles was one Another move logistically.

vehicles So, the some that to move much are harder have built of logistically. groups around

First, so their lot we to to we've final different a fly obviously and through the short these wouldn't then manufacturing vehicles because them ship distances, all items it's very to related necessarily of they ability fly scale our world as thought over destination. the

just increase together, has conversations. you took things conversations when enabled really the the seriousness So, it of to the and these all

comfortable engineering the Midnight that phase become the and and in program it's become of we're much so, phase with so we've design because because market vehicle. And for the a with interesting the more us,

Got it.

bit that's certification? all No, can Follow-up if if impact Nolen take Okay. at Wondering of that maybe get from a FAA. announcement Thanks. helpful. of super What curveball. Billy the question, your might retiring on on thoughts we the

Sure.

time given that there. has his for at So first, and the for and Nolen leadership his for we're FAA service very the thankful Billy

we've So will we on that down, But think stepping a with a regulatory good of there's period into now come person very seen where the the new support Billy news play. widespread side. time Nolen obviously is

spin seen see even the And of the FAA seen the Capitol recently many We've top And eVTOL Hill. Buttigieg support OEM Secretary priority. So, a AAM in that very we've it's whole not different FAA. three broad to players. say is had out we've on just

So, the that make this companies continue a traction into really to with of nearing FAA, as rulemaking of process. back half significant phase I and Archer testing is several the part that heading there of mean is now kind lot are the

it no disruption little So, in our of terms confident we progress. to feel that will have

we feel comfortable so, all that's at. with where And if

Got it. on quarter. it Congrats on. you. the I'll Very helpful again. Thank pass

Thank question you from with line of Edison for the Yu The your question. next Bank. is Deutsche

Your is now line open.

guys. contra that you'll Congrats there or lines? the before Is on chance the get potential defense Hey, thanks One opportunity. progress. any follow-up something those occur R&D some DoD, on something along the deliveries with

Edison. Hey, certainly This Yeah. is possibility. is that Adam. Yeah, a

we're in So, opportunities of that looking think considering. nature at different the the accounting I the we're differ terms of different that programs

well. There for early possibility that. revenue for possibility as also opportunities a certainly there's is So,

so, it to commercialization. a as diversify look to the way we at And path

it's but more opportunity, we think we'll And start color so, to good emerge. give a details as

high discovered. time very the some Obviously, on then, And this share of could been you Stellantis, doing for [with a and Understood. early curious you I'm perhaps long if learnings they've Are something Stellantis, that wouldn't things got -- oh, we -- key said, you this there? any of, without kind is encountered this known there (ph). guys, takeaways scale] you that have

Edison. great reality both This the learning is Tom. I would each other. Hey, say question. from is It's we're a

here, Stellantis and broad really context part it's to of term. long a their set is business big the interested So, becoming

make balance and for early learning traditional the as processes. problems capital solve We're also right much We're being we're resources about they're deploying phased engineering that as days. automation, today. here. we're in using using approach we're sense as experience our with taking solutions very And automation, the before, where market and we're effectively. from benefiting to a getting most We're very to trying thoughtful to industrial their trying So, we said

for if don't helpful. example super I sort of know like description you, overall but great hopefully that I So any have is

Sure. And if I could sneak one more in.

I'm part market make As curious, is your have the outlook the they will the Stellantis, you release what's And looking in any? guys have I if stock. be stated in with that open purchases relationship believe their the there, still, you view, to original that intention? of of

Hey, can't any Edison. This on We of potential Mark. is activities comment specifically Stellantis.

a the their reiterated Form will make market actually our of purchases I they their to file stock. draw open did the fact -- SEC However, intention XXD they ago that attention to two where or intention XXD days with indicated

that be a is for required do that even So to is to document that. them able

All great. color. for Thanks right, the

for of is James. from next Raymond Thank line the with question. Syth your you The question Savi

Your line open. is now

everyone. Hey, good afternoon,

What the other main register. in expect I of from to of based front, are certification the how areas airworthiness impact in of certification was contention of that the looking the and notice companies kind on process kind Just that of and on standards of comments curious was you FAA the of do the your kind stakeholders at or with process? of criteria kind public concern some made

Yes. Hi, so airworthiness Savi. [stage published are This stage, our (ph) these to set criteria to that. for] rules, that our the comments to just To got G-X, answer we yes. the high you're is on maybe level referring Tom. Happy fall were after last

those. we've expect months been the got really about six heard public So, many that a far week, comments. bunch we months has team comment of is working as through FAA you changes. shouldn't that said, two there The so And was everything last period. significant FAA

and they that. had timeframe added very you already ago, for designing example think An few been year XXXXB, XXXXA, we a requirement, about but If was was back kind of bird G-X a here saw from strike changes. original a we to similar our

substantive So for wasn't any impact it us.

the have we change, far So is a official shouldn't expect so that all the but haven't much we gotten we data documents.

soon. expect them We

more we share happily we'll once have the data. So,

just And that on helpful. part it. follow-up of That's to

submitted, you've certification subject-specific plans FAA? accepted those have With by the any been that of the

that but saying This are been We've matter these to seen No. to "Oh, far are approaches subject None the driving the of so from through benefit say, trend here. the them paving accepted. down And for are before. seen and, a quickly, thing far, that we for doing. that handful alignment understand." are getting accepted rooms a that quite is working would close understand that there that's And an would risk with so overall, easy have taking us have with I the being perspective, we've is I is FAA. that's of efficient from to this really sessions lot the us guys the is and you conversations pretty say, the path matters simplified forward into And what FAA okay, way that we're experts what

So good hopefully that's color.

And a case other you're you slips? avenues comfortable that's Mark, kind a that just maybe Is level consider funding very in [indiscernible] Thanks. the on of certain maintaining, certification potential helpful. liquidity Yes, might there liquidity especially front. of question

Hey, Savi. Adam. is This

So take crack that. maybe just largest let at the me I'm shareholder. a

from a it well. flexibility about as unique the are pretty lot think think I right? We have So, a Stellantis. And I position here, we in

potential delivery with a pre large have order already the delivery payments, payments We United. They've we with lot for us some capital. additional raised a given pre plus of

here how in. built So, do think we're We strategic capital. about be just optionality about don't capital but have to going need today, we we

capital significant I as think position pretty in versus period are dilution and So, fortunate a that we I well time. manage a to able about be basis on just of to a over think regular

you. Thank sense. Makes

your you David Zazula Thank line next question. the question for from The is with Barclays. of

is line now Your open.

to, sounded heard, the understanding on my urban more mission but side. largest of a in of less another kind aircraft. you focusing Adam, original too come Archer intent mobility just original I I operator as taking air described question. production back of and side was on the mission And and question, I to as thanks today, become Archer Bill's I the Hey, and others parsing little want produce greatest of just to the order hit well, I'm for the angle. to have words it think aircraft my like on were bit and air much, you -- just maybe guess,

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Thanks, the David, for question.

aircraft looked we've have said some and beginning, operating UAM of dual strategy Archer through So, always business. kind also aircraft a through selling of at from the some the we've Direct

kind of And a of high from XX-XX target that we've out so, level standpoint. put there

the advantage It I too potential the maybe has things. DoD parsing But from and it's that us have, represents of of just sell gives to Direct advantage upside manufacturing is changed nothing much. side that, the think So opportunity in more words what can ability our that. into certainly we given the to there DoD. of we And take that great take up opportunities ability are capabilities flex if we'll the

to an So interesting opportunity that. I think more find do the if sell we'll right we to vehicles reserve

long-term kind where to saying building cash XX-XX will think this say, side vision. not is reason would flow the UAM will pave on manufacturing I business changing the from the this XX-XX our And we we've of point, for split the outlook the at way generate for of view be said we always capital-intensive split. we're help So

an there's And XX-XX potential. that like maybe I a today to we'll help keep broader split. that's in certainly opportunity of that sales, same think framework a finance through place of kind so But

any aircraft, if one ill but very Thanks. for Tom, see those. first were plant you the the aircraft, there noticing in then be that that with helpful. industry That's maybe not upon that wishing And or non-conforming certainly, wouldn't it, casualties is there to complications I'm

So something that are testing that How be the impact process? aircraft your certification the impact or would if I there guess, what timeline? through to would plans ultimately happened contingency

that. Hi, David. Yes. to Happy answer

market first piloted vehicle in accelerate here of aircraft reduce path with and that's our to entering the the is aircraft. to that months, So, test next flight the couple strategy with conforming Midnight risk

going data, risk. to So, learn we're do it gather to need as and to do opportunity as possible great we "for as early type credit" reduce the of this see testing later to

to with very take still going we that's forward. talk very a on tests but professional about Today, flight same team, basis flight Maker executing flight be that's we much, regular and team we the don't approach rigorous very Midnight our with test a testing. fly it to So, going

year, testing credit" of strategy towards And working our to "for piloted it's into which the early part do. flight remain to to get So, this get then we broader on track next all TC.

So, yes, we're basically executing that's how that fits into the strategy. just into overall And the arc.

that other that, there as planning. I guess, the but -- summary that you're hear to it's is there? perform test guess, I Is are avenues I the important,

is This David. Adam. Hey,

planes. how to to coming is the online think Jose now. here's The of right ability in factory has So San it. That about build factory tens

non-conforming first plans the is of getting months production that only this are So, also built. ahead plane

in we're the process So now. spooling where we're that factory up right

case the worst a I So that. build planes behind in mean, can that even scenario, right that is ultimate like building planes there's factory

a the framing producing a -- think vehicles negative there -- right the still taking obviously flight really rolls aircraft producing ready of after off don't we non-conforming very factory be but question, testing, that to line. the So, rigorous approach is will a I that's from produce very there we're is to or

appreciated. Much Thanks.

you this additional your waiting are for no Thank question. at questions There time.

the So, remarks. and I'll Goldstein, CEO of for Adam to call back Founder over turn closing Archer,

be participation. much most for the on year to your today we aerospace. going so you come. one building is and amazing you of us Thank to everyone for very exciting there're call. And is an catalysts many joining XXXX really to This an be times the thank

you Thank for concludes call. That your conference the participation.

You disconnect your may now lines.