Archer Aviation (ACHR) 10 Aug 232023 Q2 Earnings call transcript

Hello, everyone. Thank you for attending today's Archer Aviation Second Quarter 2023 Financial Results Conference Call. My name is Sara [ph], and I will be your moderator today. [Operator Instructions] I would now like to pass the conference over to our host, Andy Missan, with Archer. Please proceed.

operator. you, Thank and review everyone, results. for us joining Good second thank quarter to Archer's financial XXXX today afternoon, you operating and My the name Missan, Officer is Archer. of Chief Legal Andy

our call Founder CFO; are Muniz, and in joined COO; Nolan, our the Chief June On Adam as Tom and Mark our Mesler, today CEO; our who Archer Billy Goldstein, Safety Officer.

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

risks information about on Factors, to uncertainties, more of no XX-Q information forward-looking our we ended For undertake these and update to upcoming or XXXX. assumptions as result make SEC statements our under these future filing Risk are that and we of obligation caption XX, please quarter the June today, the refer for as on statements a this Form filings new events. Any based including call

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

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

Thanks, Andy.

stakeholders of supporting largest And to in that announce the past aviation joined finding heard to as excited days, last calls, the that earnings I'm to relentlessly execute has strategy efficient some team plan. possible. strategy. Every consistently as commercializing safely against most you've continued over the have X Archer's reiterate our of XX our Over world-class us aircraft the in path me eVTOL quarter, our publicly

the multiple from share to endorsement grateful across we're United States government. of First, points

our the teams other flight aircraft, the first leveraging begin tirelessly and on will announce Administration ramp and to Aviation towards airworthiness as our the to Archer the us a timeline. at is planned of our sector for in well road the With I'm worked begin FAA up years FAA, Mobility commercial published of great This who aircraft that I'm Air implementation Archer, flying. industry midnight milestone our commitment ensure month's fleet to U.S. desired service certificate leaders. launch work hand, size issued commercial we certificate and existing Archer that our our the leadership Federal this expected for and extremely last plan team and as launch. special This rules of flying proud collaboration innovative culmination Archer's schedule last just government's our both operating XXXX week, our allowing infrastructure. This proud this XXXX announcement map as by our on heels as to in the Advanced to in reinforced of of comes with both

and Captain years Chief of to to XX the in over a lead Officer. as as the decision an pilot who to airplane in well senior Qantas by the Archer commitment XXXX as necessary to country's American service service With Further, for addition operations XXXX making Army at a join showcase traffic oversaw roles has line by Safety Andes and his to operating operations flight June. and than plan was Airlines and systems Nolan, of The directed who no FAA Billy full-scale and Airways the distinguished the in for out FAA the enhancements this as in leader to our UAM Los and other the U.S. air time eVTOL rules and by aircraft in time executive Officer at helicopter XXXX arriving announced launch implementation control enable laid and plan commercial Olympics. the administrator, FAA experience back safety, affairs to much full-scale regulatory passenger Safety

and certification Archer FAA's global through guide to the and as this commitment spearheading stock FAA Officer, Billy has and underscores been his supporter countries to of our area innovation. appointment leadership to long the ideal in safety industry, eVTOL He is our our the most Chief Safety pathway aircraft commercial role person deployment. the a important efficient and

competitive conducted Billy Archer, a joining thorough assessment Before of landscape. the

You'll from enabling come most only the belief approach chose focusing Billy his for to technology optimizing in Archer hear and shortly he on our about developing why of and design our the to certification critical have also partnering make efficient transportation and board, With started I in help leading us while in-house, see reality. everyday already on travel sustainable, suppliers. air shape Billy him future to with of

unprecedented not the Air our our will to development. technology aircraft agreement to partnership, of In test aircraft has as Force. transformational been through commitment accelerate rescue contracts potential these was help but on Archer industry Second, made with assessing of to consumer future also and AppWorks which in $XXX through Archer the a missions logistics support Force's with technology the we support, vertical service. in eVTOL Air Force of our U.S. These of and execution a Archer deliver and the and learnings we build just midnight operational technologies This value world-class Air honored our our with applications the partnership aircraft, the has week, any more. save and a of we for made long-standing million. contract Department purposes. up DoD will accelerate the market an phase aircraft helping new DOD of projects value The personnel last flight possible largest awarded of OEM only operations will are that transport eVTOL hope, the to this program, They lives, Defense series

deliver our customer. aircraft first believe first announcing next We QX and months the accelerated within the would X to XXXX. to be that as delivered early a have be as to we hope in the paying aircraft this history plans Today, we're eVTOL

other which relationship the with partnerships value DoD. of is Given contract the increase at this branches the of of this Armed for a working our anticipate with Forces, team Archer, the the platform strength total leveraging on we that the as future would

just the midnight demonstrate X-member to the helping of test Government capabilities In Corps the possible and hosted A made first Marine our lot fact, in Board, week, last headquarters our our Advisory Services assembled representatives facilities this critical step this is by our build with who we recently of Archer to U.S. from at military. was flight aircraft. partnership of

continued our the leadership grateful all the support U.S. for sincerely for I'm and position and Board ensuring the members the service veterans Archer maintains support DoD, Nolan, Captain and of Service its Government their aviation. in of in Advisory teammates

world fixed-wing because as I'm one and the actually is have the unparalleled Osprey, announce who I people long aviation Finally, transporting that associates. of Archer strategic excited first move we able the technology been with decades, apply pioneers of relationship of And one the with and possible, all collectively envelope over maintained are aircraft, industry around on years Today, excited I'm levels the eVTOL of Boeing a pushed was to of Archer's V-XX investors. of for have of biggest XX as have to aerospace call to giant quickly millions them the following. Vital the today, what ago.

technology and on in supporting Our its focused subsidiary autonomy integration be will WIP of the collaboration our Wisk, aircraft. future Boeing variants of with

of pioneer sector's the biggest bring who the Larry while by the flight Google of EVT world-leading was in Founder, could early access of developing For potential background, advocates for pushing This cofounded substantially an is autonomy development it the collaboration Page, to economy the of reducing industry Wisk technology. technology Archer one cost and ourselves.

autonomy extension that to collaboration sourced key further technology to but from understand we this the puts industry. is from important and technology in it is base. the strategy details, will to cannot leader be our As This a source our unique position of able a research of existing a share matures, aerospace Archer overall in the in-house on that development natural the enabling supply focusing be

the not Boeing Archer, parties But to the on this and I between the of part to looks look litigation settle the and As collaboration that development Boeing the new that's forward with agreed look and a of Wisk future. industry. all. to AAM have growth collectively forward and risk working to collaboration,

our Lantus million world's jointly build part partnership Stellantis [ph] the and us and are to the of facility we collaboration, and need unrivaled support deep strategic to across accelerate their excited to partners, brings as alongside eVTOL business long-time party's is manufacturing in as first of table CEO, the Georgia. Carlos other full-time investor ours As welcome round Tavares; from our today's the business are The CTO, willingness to the the the provide capital continued we employees United. Stellantis from funding working to Boeing out we in energy Ned Kerrick, high-volume dozens seeing $XXX to we an alongside to

and hubs door invested Boeing, player Archer's integral aircraft. We who such approaches and customer in who its collective from work United's our operating XXXX experience success within proud partners partners truly important not who are towards to a a our commercialization long-term working achieving York seeing enable in goal is push working to markets as name, United are United where O'Hare developing and call we but hand-in-hand aircraft [ph]. New partners Airlines, innovative Stellantis Midnight to team Chicago, an Newark commitment of our is partner, in in I'm dollar billion airport to is towards our eVTOL to world-class City United nearly United launch in with order us in for door. at as are fulfill similar The a

outlook leading major we Invest, our Importantly, the long-term EVL to role have are of as the for this investors industry. long-term part as support of into Archer our who grateful Arc share such financing, financial

innovation of accomplishments, shareholders. new are gratitude to As my to come. revolutionizing incredible to and Together, remarkable driving and era I transportation team, extend reflect a our aviation, pioneering on we generations these want heartfelt for I partners

our hosted the Group commitment the military test. market President turn government made U.S. for both I Biden's a it last to lead has Joby And will America States validated commercializing line of step both the flight over FAA The In in aircraft have month private take in back let's for alone, that an a more XX proudly quarter unwavering than the we a bring Interagency in United the way XXXX. Archer eVTOL. members time to and Working AAM Tom, for Before last second. to and both

incredible in to momentum coming the in first the it mobility. providing being new Defense the era Additionally, $XXX skies eVTOL mark for to the value Department midnight weeks, When country a takes has committed across to error in bring to of will advanced market. million sector, nearly the contract

hard Our can't team's us industry to work have brought store. to and we our and wait see this exciting moment, and dedication midnight

strategy forward now hand will and I to and the dive for how us to you to who call. bear your questions on have thrilling our into also it joining aspects Thank will fruit. journey, begun those I this the later technical over of in look Tom,

Adam. toward to path with certification, areas team's and progress, our commercial to and aircraft to steadfast we target execute the aircraft supporting development, I'm each and our past couldn't excited most certification updates quarter the dividends. efficient pay is manufacturing quarter, prove in pleased across key to our I to optimizing passing on manufacturing continue it you hit and strategy of key With share our launch continued for milestone momentum our be in operations. This each more of continuing commercialization. with and our market, progress aircraft XXXX. commercial with Thanks, we execute strategy, our each efforts schedule, building and

development. aircraft on First,

readiness over light couple of the at air As FDA special first This our culmination earlier, of fly our getting has ground flight safely. ready the aircraft to a for work, been testing as extensive week, Adam months test mentioned past team campaign certificate hard last the aircraft. an the is issued

certification commercial certified FLY, the fleet will regimen flight of we Now launch. our both our stages size are and to and that up final march to ramp and our continue steadily we testing towards program

the allowed world. best As we flight proprietary suppliers of some on certified combines aircraft the electric only of our required to components Linnet scaled partners manufacturing performance more success, before, us reinvent the of like use powertrain control with and charge that and achieve for data computers, range, payload, the IP, components speed have our control the strategy This key it's needed in wheel experience, has time discussed can commercial flight our to aerospace and technologies where where expertise. aircraft certification invest and fishing the without fast mature and supplier along conventional ensure enabling focusing turnaround extensive to from software for have systems having

applying realistic the decisions we innovation. recursively part we of as we Think our commercially and made our call this commercialization As broader of this design stack. have strategy, also pragmatic core in focused to how manufacturing like technology, for developed which certification, tech through

instead manufacturing safety the for we our a reliability believe prices commercial surgical leverage consumers. to for We safety, have lower a paving cell of yielded could smoother in the certification, more certification, the best cost. but chosen than operating gains because pouch cells in marginal increased slight available. increase more in the and path density, they lower deliver this and into for offset been have translating easier may by would manufacturability and example, batteries exotic risk For way have scale-up costs, energy performance

highest Similarly, engines, aircraft, let standards. design leveraging optimized the will processes while quality each manufacturing also for of proven for automotive was optimized and that us while reliability scalable industry our safety, up ramp maintaining our and the from electric every aspect production possible part for was manufacturability, the

in in to hand, will a next flown couple expect program. data internal as certificate weeks. to preparation This for be will design With board we stage used the night our and be certification now the for pilot final aircraft without of of the validation in we in did gather first following and errors begin Maker on a new for

certified testing. the flying world-class from testing custom are gathered aircraft complemented has for with aircraft aerospace next each San are suppliers prepare their world in by Tesla and of us we labs partnering our which These design test needed from gathering where and the on testing extensive component roughly and capabilities, existing our FAA online ready a of system labs the high-volume for system certification manufacturing means the the is limiting now putting this to all we on Jose. in and This having manufacturing. facility This credit facility, gathered through in year test credit required for data integration as that ground focused dozen X is readiness. systems strategy and Data paces, aircraft of for component all largely work fly get the benefit mass and data pilots amount by our best data flight to of of test certification aircraft their our certification our

we the used fleet doing night flight is be conforming of final which facility This where year. also piloted assembly of aircraft, testing our for are next will

We are initial manufacturing conforming aircraft. well piloted in Unite underway our

next of of work together for teamwork our to first bring want market. many to California in new to Our the we system supplier facility. midnight the to components, as partners are night industry. Jose, We within our structure state-of-the-art primary leveraging piloted conforming plan suppliers currently their start and months their at the decades the aerospace fabricating final of San assembly aircraft X manufacturing the I of experience partnership thank all

we flight production facility. we flight least next hold Georgia, of Over high accelerate at build the rate In and aircraft progressing first are rapidly year, X of plan our certification our we these build-out to testing efforts, plan to to the early piloted XXXX. our in

roughly construction occupying to XXXX. ramp so for sincerely from the our to graded track support. Muton acre on am pouring Carrington our state as for and as County, our and I for produce the the our City incredible Georgia partners imminently partners the and cleared efforts initiate XXX enable construction government deployment-ready preparation well to remain DOT of their can year the foundation broader factory we has production next team Our site that in aircraft grateful across

momentum. On the certification progressively we are building front,

report plans. happy that accepting to our I'm begun certification has the FAA

the with plans, As are the exactly set how on detailed of to the our in this closely test data our move the generating and team with which give to design working more out detail aircraft. where our plans are our analysis our use To and our artist we criteria a reminder in to process, certification complies what credit for forward FAA X basis. the with allowed context, are certification FAA certify certification teams validate

chosen to the the This wheel and program, reinvent just to significantly the here core of bring to all as group earlier, the an of to bring that we had commercial next advance in lead and I our rapidly is I post components systems extensive has a as the intentional we to leveraged the aircraft has team implementation race our focused in Then strategy program if do and a that XX certification components believe and aircraft the market development on on mentioned the strategy will our of of certification simpler retail efficiently As the strategy months certification allowed U.S. aircraft. and to That date through part partners yielded scope have meaning why possible. take to over key in to we the the certification our supply phase market more work plans. of first

say, at industry our is to administrator, hard hens he the is aircraft. Needless noon of the right and EVP the to with joined work before due on the strategy framework off. Much of work that to collaborating us, paying certify did team FAA

excited pass his for I'm unique to Billy the the share over Archer on perspective exciting it to time to industry. and

very Archer, Thanks, unambiguous become will team part among which have I to come Evita last here I'm of the leader at manufacturers. Tom. believe over several the excited years to the be

the I framework, mobility the earlier. to the which event at Adam During and of first spoke my led or build-out oversaw time FAA,

and aviation within way and the Americas fundamentally with that With position the technology strong and needs move leadership the Cities. understanding maintain move transform will U.S. that our intent we to fast to between in

industry scale the our Angeles real at I pledged. the the year, clear ambition. originally But when and be well team positioned built was date largest, to last American most this XXXX decided July scaled that U.S. to target support needs in the Summer As of to had the by cities. it as became across Los and strong in the out leaders have for effort, mobility the goal contingent choose a whole forte My U.S. FAA Evite in function government networks urban that congested continued that XXXX, on the were felt the over Olympics

explicitly moving the has Archer their from by XXXX operations multiple further the backwards my launch in ready at framework U.S. a by FAA in certify by in agency industry. initial the significantly with aircraft early for operating to to commercially the certify, train scaled team including and this cities Working and across future to XXXX, supportive be National that around upgrades committed XXXX month American while integrate leveraging in enabling goes EBITA place plan leaders, greater power a INNOVATE-XX EBITA notes industry. existing rules by published plan is with last the showing infrastructure cities In in to and FAA while start world plan to of Airspace enable order operators detail to the people into and innovation this, The continued aviation putting catalyzed when that environment. the and the provide safely operations regulatory growth the by concert enabling on line to in

requirements On the released our OEM a on we from pathway to early of General new the XXXX. routes, air they XXXX, industry in we front, commence with has providing specific credit communication, our beginning ratings issued to use our public pilots clear as proposed training lift infrastructure the operational, and far Association heliport the basis partnerships. and to existing week. thoughtful working in FAA now tree, received the Aviation June, each space compliance vertical powered infrastructure, to is testing, EBITDA the aircraft the And its finalize earn traffic with along EBIT we're for which build-out regard DSA to pilot expect the are Manufacturing air leveraging over Archer next On the Having of blueprint the with collectively means fly. FAA leading of to provide the to with covers for private prior type input certification pilot that of certification finally, FAA to well way. airworthiness a on in criteria working integration, FAA

with in establishing and readiness priority the and the most further Archer clear appropriately is the local taking a its efficient within of and FAA operational toward the activity the few we're Chicago advance with the has and New York It partnership making in AAM have the dramatically route footprint. the made that a substantial already United and Airlines, infrastructure approach with planned administration. progress months, databased past announcement governments their on establishing for and partnerships we of the applaud over to mobility pace them accelerated top DOT state

will take we government in the I from of More in the ramp-up are of they are period a line. position place the the administration In industry to have to undoubtedly through safe signaling forefront committing for is approach the to deliver The enable the doing the importantly, grateful XXXX industry to this to the incentive and ambitious provided of resources resources industry. administration global that ensure so, on in to publicly this whole new time execute U.S. a XXXX. the plan. at they

with pleased since been like now as the working And the collaboration path we between excited especially team with and the final Archer, of be the very companies Archer I've my approach stage commercialization. to our I'm FAA continued to departure.

Mark turn that, With it overview. you over to a financial give I'll to

to information create to we and to made midnight market, but announced operationally. fronts The Billy. develop to our about use the share path our those accelerate plan proceeds. efficient Thanks, public both how I get we our want excited strategy and of about to just our raised has In on the continue financially most will help equity as substantial we participants aircraft that capital we a the strategy, number and team I'm executing offering, to more financing commercialization. progress XXXX

from interest a X be been partners strategic years, Over Archer to to we see who we the our have as want part of to continued have financial milestones, the and important grateful hit outsized last story.

them opportunity enhance to participate liquidity. further and create to an decided our we So also for

this accelerate was their they mentioned, led and today's As equity route. into investment Stellantis previous round part $XXX of forward commitment Adam million million with of to as decided equity pull by that $XX

this who by Mark new $XX as our invested High-quality earlier. Adam Our joined detailed long-time investors leading share technologies the into the $XX investors another partner, invested another financial as Airlines, Invest, of our Boeing, Archer funding commitment also aggregate disruptive million Stellantis our total in to United balance round combined the over our date. million route. one partners million. partner, the liquidity and till of brings to billion outlook million, $X.X investment, $XX remaining long-term with of to and the This brings $XXX

will facilities, related raised the our development the used funds working build-out test and and manufacturing general The be for capital and continued midnight of of technology, corporate purposes.

Beyond the this capital Archer. and a of United to Stellantis to in earlier to over this When of fund lances partnership participation of $XXX year, to of invest expanded Archer the from rate they the provides, million capital continue we're total pledged our outsized support into proud operationally with core partners, our financially we years.

we taking a a business instead structuring to Stellantis discretion, creative jointly forward certain that agreement, subject price. over our significant part worked call at to the framework at that time develop milestones capital As allows then lower of equity with on of purchase to share team Archer dilution that

the Our time wins stock of deepen open million in over this down million purchased performance as tranche of June even initial and tranche the price made our to an financing. opportune stock partnership our of also further. last the on QX, several In market and in Archer's to the Santa draw the $XX $XX it part million shares have X.X months

out us options and up the hundreds due our key is were Covington, U.S. as at potential from package there on Beyond the financial to in second us factory ramping The and bounties our low operating working operations. pushing dozens helped to Arch's helping future state manufacturing financial generous and to site role the resolve the across Georgia employees to full-time of are none. of its the help identify to continue be us in local Archer to numerous municipalities. support, They approximate Stellantis mobility sports of partner. location supply it site chain commitment great business now of and continues we a Palouse on issues

industry. in has support United our vein, similar a been unrivaled In

to coupled focus you important with to agreed cities to As remember, on cost United their in purchase they investment American that their deploy from initial with a of XXX Archer, us plan aircraft a hubs. up

EV Just deals payment that serving million with the and always sign conviction last industry. predelivery together, first not aircraft, of in against have Chicago. which have Together is we Newark first an a this they routes of serving United, $XX provided New nature announced important United across we seen operate August, commercial hubs to we York at City including Other that toll our the X plan XXX

We collaborate with fortunate support X we our proud who and Park the Boeing are Paramus very of joined by are or as on these to partners now have them flight.

Now let's our to QX. switch financial for performance

an Our non-GAAP $XX million total to EBITDA This We of loss million. million. operating $XX.X adjusted expenses $XX range landed estimate towards end led lower our was $XX.X of of to million.

which supplier our to of materials and Boeing with in charges aircraft our the WIS expenses and our in Our resulted issuance I agreements operating headcount, to respect GAAP warrants parts impact the investments continue and noncash nonrecurring With to tooling be new costs. GAAP of outline by in other P&L, will primarily driven and financials. and financials, our

QX to This for were for the $XXX.X expenses investments 'XX equivalents and short-term agreements, issue of a expenses that included is unvested total the our $XX I million of which and investment loss on $X.X for expenses $XXX.X compensation charges noncash those subject were provided vested million portion million quarter for million be tax million. million warrants We $XXX standard our the tax, realized These to of labs. list finished $XX may just noncash portion of million $XX.X and of sheet. basis, of warrants GAAP drove for net discussed, stock-based agreements a charges. criteria of our balance operating million, of $XXX.X the comprised Boeing never with in On support certain

$XX drawn primarily in [ph] Talanta expenses the Our 'XX cash and cash was million in change QX including $XX.X net fund June agreement. This the operating from funding million, CapEx. in to was used non-GAAP

the many of consistent in efficient alongside suppliers investing investments As of support our our on key This on some also the score and of midnight prior to path for to XXXX, the Archer to strategy spending discussed focus market is nonrecurring our overall is differentiating hiring components. development derisking technologies creating had new most with setup I individual and of to wear making calls, manufacturing cost leveraging the lower ongoing allows and accelerating to technologies time existing our us certification framework technologies aerospace efforts structural avoid would headcount those base develop operating if and have those industry other development supply develop we while model rest. to execute and for a market spending the to our That internally.

of of million QX, million. in $XX nonrepairing other the the engineering amount in $XX.X that, and of non-GAAP expenses, Given investments operating

spending and amounts up our spending have nonrecurring our XXXX and have our million of respectively, million, for most materially and our current operating make made beyond spending costs costs That impacts 'XX. QX 'XX a respectively. to QX how this for of and standard wanted core completed level overall QX into core current 'XX to out our structural Nonrecurring persist differentiation operating share $XX Our future, core $XX.X to These will not of is our nonrecurring the and profile. of structure, base costs $XX.X expenses of will work were strategy expense establish is 'XX material the and XXXX. we part persist that Backing overarching will supply I will QX nonrecurring million of spending similar, in for our million, expense expenses, and not framework structure that be costs XXXX beyond $XX those we year. this as CapEx.

commercialization XXXX. discussed raised the more of with $XXX.X get to cash of the with than today capital [indiscernible] million provides $XX Our from to million, liquidity and June ending combined the option we that equity in previously $XXX million remaining us balance

to we nondilutive the and United cash future contract offset spending predelivery see of payments the last potential this announced receipts addition In from form opportunities that other for from in we other and week. orders liquidity, do DoD

for a expenses approximately to million. to Finally, to $XX QX as million to we founder of by a anticipated stock-based $XX noncash $XX offset result 'XX be total reversal expense relating anticipate 'XX, of lower is of non-GAAP million. Total to This compensation due the unrealized of an operating million than GAAP spending the expense warrant onetime is million. grants, $XX expense historical and for of our $XX a million operating QX benefit $XX expected

operator, it for open questions. that, with up let's And

comes from [Operator first Bank. question Deutsche Yu Instructions] Edison with Our

And congratulations.

You guys very have been busy. certainly

up. yes, starting could starting you off, So --

So will going do about could envision the has forward? could have you and forward? kind pretty have lawsuit you Obviously, Boeing on role having going was or of there contentious talk a role settled, what maybe them been going

Edison. for This question, is Thanks the Adam.

Company with first, thrilled with have the them investment to working and am to and Boeing autonomy. on be I So

help just Boeing development think, the relationship really So if about the growth only think multifaceted. support, of industry. AAM further the can this and But entire I I is here,

Boeing and and Wisk the on between Three, autonomy to the of Boeing and aircraft. of for future the provided for the versions midnight parties. Wisk were where Boeing's And between parties and with components into the agreement so is we latest our a collaboration financing number here this. One there warrants of litigation investments settlement that to went there's all work round will the

with So hopefully, really work are and that these but perspective we it excited puts autonomy on future here, Wisk programs. to Boeing in

I already. big of Force one you can you up that opportunity with Air there you landed the growing? number, a you quite I'm DoD And Do it And last on think Marines the following have the to upside. forward? do that know curious sense how mentioned that how visited trying opportunity, that sounds going bit as you of to be any pin but is about if Not a week.

a there, right? the is number value the There's the really that. here Edison. and really itself, I which go with industry. would bigger think I -- largest But seen that that we've Yes. agree it think contract No, the in opportunities is is the really beyond in totally you, contract exciting, value it's stated The I

us a have that and services, like the to So then showcase we now to into broader provides all armed the its which civilian applications well. to chance sell different up branches there's another of also FAA outside of applications of opens global side. and also the channel for as the This led vehicle us really to capabilities

of civilian be the to to purely on us revenue to the nice So -- market and provide able side. sooner than a really it does diversification get allows just than

if evaluated mentioned you Got Billy. the in I just you kind know sneak could for one landscape. I it. of competitive entire And

industry How bold it do aircraft XXXX. of of vision. the look UAM You XXXX have by see a -- what very your EBO talking are across to you very of Is -- a from of obviously, the sort hundreds, sort view we ramp thousands cities, like in date? that

Yes.

So thanks for the question.

back indeed primates to getting XXXX, If INNOVATE XXXX. whole it you the was to that think of

time talking could in the from the get be thousands there. in in you're not the if by XX time My there. XX, hundreds to of tolls frame scaling then administrators XXXX, we that multiples XXXX up estimation was certainly as chair my probably EV we into aircraft that and really sitting of time from we're So

market why take So the projecting, wanted demand, we is have the globally are we're often is as kind framework what we place. seeing we which of strong to see in that this which as really

Congrats, again.

comes Andres Cantor with Fitzgerald. question from Our next Sheppard

for on just a all on Maybe quarter. first us Would recent Congrats that investment. through Mark. question walking million $XXX Fronts mind the the again, announcements. you

the million So Stellantis, amount, you And reconcile the I that's think that million or of broke I'm from trying don't part $XX prior agreement? from $XX just to is the that further down to total Mark, million in $XXX mind. it if addition then United. you investment

Yes, sure.

only the points were haven't recent One, of United are currently disclosed. the this and momentum in publicly there, others announcements, round. and an got -- X salons investors the acceleration million Arca yes, XX, as of $XX So at to a the some XX% couple disclosed at XX% million of the we We've they $XXX was commitment with Andres. anxious around DoD contract get we and those from that more prior

million. $XXX full the For

alluded maybe Adam. in it. the it industry maybe Got the CNBC forward helpful. a you you earnings as call, Adam, in That’s years as question the to prior pertains And later Okay. for to then autonomy. interview see your to where moving

you to a just you I’m maybe leading how some Wisk so the see I you might later say time collaboration give able that what far maybe the take think you now to industry. meant you and in and wondering there went line expect sort to integrating be to role maybe us? autonomy of with you can expand on

Yes.

has most vehicle. started to path efficient doing that, been the to strategy pilot we find Archer's always market. a And So by in having

enter so where service the the into here And near can are. We existing future. that's very in rules

we're so excited And really about that.

a thousands, As the of to industry, the thousands, industry two, there's scales, need though you lot of thousands and have really a where goes one really tens the because But pilots. helps value of for need hundreds increase increased to of for safety. for autonomy vehicles, less there's potential an start beyond

And so a I deal. think is that big really

So I third the and guess, one is cost. here

that. cost doing can by You also reduce

ability the as to an capability. industry scales, So this there's add

our to think for has market. why interesting, with the this strategy, been so strategy get to help that us, can groups best Now back you if is our to partner us

suppliers So X Garmin. partnered Honeywell Tier with the and and we like Safran

has expensive autonomy this service very be really us because And developing also look the to this we then about very path, us the market. the start find launching to predict. obviously we -- of can our is future helped thinking date But a the get especially future path variance efficient and help harder to of expensive vehicle and

is come our probably scale group these test autonomy world to becomes an going work vehicles in ultimately this to the us with flight to and has piloted to down of a path autonomy that available. most way having as early us then have market ability and good technology with and the vehicles leverage the the keep for an in application and experience allows So and

DoD open doing super open -- military to I But of wondering quantified records within it. growth there’s could Related I’m you do you’ve guess and worth of up super expect That’s so, to to I the squeeze do market. I the for contract, the see and maybe would and the in Air Maybe so opportunities contract for -- here one helpful maybe just if new EV the programs a last insightful. Got one. Force I contract, far. that these the -- mean imagine. you

how -- of curious medium thinking kind to just partnership about that longer So over you’re term. the that

U.S. how is and the sizable the relationship our military. the work for has the largest to the last working we will members interest which with seen announced mentioned, Marine Yes. the we with just help one rotorcraft with I pretty we outsized forces. armed in I branch advisory every much hosted start Forestar a in of fleet been very really that mean as Townsend evolve week And this government in the board, the of U.S. contract contract from really our we've industry on Since believe us world. our AppWorks, has the with first the Corps General to into crack Army, code

with there potential or multi-hundred believe do industry eVTOL I for time? a very real the a even So DoD over to $X of into move is billion million dollar the programs record

it Congrats on. Wonderful. the again on pass quarter. I’ll

Our next James. from with Syth Raymond question comes Savi

just up I before. follow If may on just question Andre's

point being associated these there's the them? with investments, made you at -- With you or any shared price if like that are warrants they're have

we with pricing bankers, on If XX% Savi, of to our look an Mark. pricing observed our X-K, a recent In some discount peers priced rounds, have X.X% X% we’ve other this. the average it public at this is at of call discount. discloses the at activity, financing of

we a X% at we ours structure where actually Our a around terms your deals today. priced which and had collar discount, getting oversubscribed. round better other And it was roughly done

That's helpful.

you've moving kind and just up kind a of really And the from Sorry, that the on aircraft in needed forward? need clarifying that -- then certification you plans terms before start accepting and conforming I there just building of various it production getting set anything of certification Or submitted rulemaking that. or of that's on that? is FAA can that missed are matter you

this Savi, Tom. is

the finalized. servants most we little been but TC, where the capabilities, around suppliers certification those necessarily could a not data those maybe more of things the working is path over thing but our months as simple the big of cetera. of leverage So was accepted, is why we've certification took easy we the what's getting with you're box, that towards checking scope the their give to approach the this to on getting SER about and there, et our And the past content important there testing. and thing what through asking what's plans [ph] then possible. X plans context like to whole AeroSat But that's you existing And strategy as own existing keep partnering

very specifically get agreed, it's at [ph] out SER what plans we self-contained. conformity, plans, each to then of have the matter executing just doing your get the those to forward. of around the SERT laid do analysis specifically, move are which plans, doing RTC a So question steps test, we to those those need Once in

specific standard the execution to what then to of what’s purely going game. give details be Those tests an to do what and delegated, it’s what’s conformed

took, simple because see the we’re feel the next let’s optimistic to we we’ve smooth really path forward and very path over go into say, start we year very going us relatively have Hopefully, and a you’ll execute. of here that’s laid strategy that of because again, rest the year to helpful this, So context. accelerating

that is clarification, iterative And you like That's a the plans? super an have just Or all helpful. submitted process.

the in you So of kind of are where it? part subsection

question. Great Yes.

things our like we let’s expect we areas, majority that noise, things critical we’ve on less, don’t schedule. So be There’s are say, the haven’t in of to driver submitted which overall the certification couple plans. of remaining that Those a submitted. a --

We plans started have SER [ph] get to accepted. formally also our

queue that So be in we the first was soon. one of a are and accepted accepted expect there couple others weeks ago, several to

happy So build with the very progress. starting and momentum to we’re really

from Our next JPMorgan. Peterson with question Bill comes

some here. about announcement the that. maybe talk within contract first around to I wanted and DoD first clarifications Nice that

of for So or think said is the conforming like that next repair. I'm offsets and end year, one then with value you aircraft. delivery maintenance aircraft? I contract, of also year the the like be I Or And this might early And believe for something that these different? have the Mark the might early OpEx guessing this is of maybe something of -- there's some

what's for through announcement, roll model? for many this timing the I solo? -- that And So of first a I how how it we guess, the should the entirety years guess,

Bill, is this Mark.

spans spans, is internally It spans well. and some service, work So development it contract. hardware training multifaceted contract it the as a and expand

as be to revenue. well as sort reimbursement of cost it’s combination So going a of

of play We think prior the I certification. to a together the coming of But haven’t that’s we next as of think -- will of timing everything terms timing discussed. in still we going sit to the over that’s development think the out. today, happen here preponderance work how I

to come So as through we more that with work DoD. the

these And is Or aircraft? additional aircraft? of conforming is one it aircraft an

Bill, this is Tom.

beyond. that is aircraft testing. will deliveries and So there the conforming first for aircraft unit next year also we'll nonconforming early delivering operational piloted a used be be then of But are

lift helpful. That's requirements I really reserve hear proposing as we FAA XX this certification for Okay. wanted for aircraft being don't at into the minutes built the minutes XX that's to make night. know plan for daytime, I power if requirements consistent are sterility but Adam, with the larger aircraft, case. sure Archer? if just these And

out his you're came requirements ago. a in draft that first in of reserve FDA about SVAR published couple and give talking the that Billy time I'll but the let months the then Yes. thoughts,

just here. everybody context give So help

industry first the right? the works [ph], then FAA the amongst And thoughts. works they way draft, rulemaking, is the initial publish of themselves process that's input ex-parte that kind without from So and

of others working also been get the the but looks in that over right so state we've months, on with a industry the the share what our And safety in of rules operations obviously to couple these supports last kind approach perspective required to of like balanced efficient the aircraft.

draft this on period is closing comment public in next so. the week the or So

along associations, our commenting industry Gamma as well cetera. with all our as we'll BAA, of and peers So et be

But similar to endurance We to be kind comfortable with were. to in kind generic our published what stayed targeting of rules the we're looked even than have scenario, Yash's still think I'm draft up requirements able go-to-market happy if be reserve that end more we'd at what as operate it's And would a very they missions in rather cities. of path number. say VFR we'll with the being all obviously performance-based we most likely

to add? yes, you want So else anything Billy,

on Tom up just Yes. Thanks, what just was to Tom. saying. Bill, build

communication industry, is this, rulemaking Tom limited as closing. comments, aware, of to, FA the during early getting experted hear having and certainly part they’re well assembled call We’ve clearly, you’re wants always they spoke industry comment the So the the of from probably my So to rest as and right? our from most what joining time, period there. in the the we’re

the end will the. we of we at a works. that spoke Thomas So ground a either way. again, prepared will find strong day, middle convey to, believe position as certainly we But have aren’t that to But we the we

sneak could one too. If more, I

no, operators, but sure that's document local you're aware -- So for buy-ins this obviously, OEMs, of I'm governments, the when are a talks the arability something lot about of probably at and infrastructure. you

thinking with is public sites. especially what So infrastructure, -- new around latest buying the on the from

we So think think, trying is infrastructure look a this about risk this to I coming the sites as is new towards to online? XXXX? mean, we How should the

the low in routes XXXX. XXXX, density using helicopter question. want in APC the about When Good stakeholders, things place, to why current we a have infrastructure, time have infrastructure think accommodate Innovate can so exactly is in forcing kick place like you using which we current of Yes. as infrastructure. that So was today off Everything that gives the function right? the all for

is conversations meeting accommodate also airspace. we having be national scale to from they as think same it vertiports sure and we’re country but stakeholders heard when the the as with so we of across move accommodate think the will At about to Archer at and FA up, can at we've terms the we’ll the the only Archers, into equipment the prepared future that that will about on local in that FAA level, they us, scale not when infrastructure we see is state when how can As we within make the time, commit we current as ensure to well.

the Thanks, everyone. for insight. Thanks, Billy,

from next David with Zazula Our comes Barclays. question

for Billy. one First is

our... think compare into how the What come to to in applicable, I what with and the contributed take you backwards expected talked up? about it you it? what that just industry you maybe Can you AM you you see if it how ended to Maybe Just about going us going forward. process actually surprised

back, plan able were lot have it, a net place. that What to to that of mission you So to to in with be feel 'XX, brought this really point what genesis a could that the something already needs is a of XXXX. is forcing backward go all I around had I I If that right, FA coalesce now be these Yes. and idea the in having was of parts a then really beyond, and 'XX in we're was right? -- time XX accomplished to in in 'XX, function,

great all. what ask you got all Archer, and for me, their surprised importantly, know of surprise But we what extend know take. just If thanks here Adam certainly, to administration us going and together a note pulling and this at it. an has to because I already government the the hold it's restated of of together. that's really really we approach there it more ability come I group what as behalf on would has say has to The a comes no FAA of professionals at

do age to local working but takes we prepared part, certainly know level, are the We government and sure make happens. state all and our it to at us, this the

ability kind the that then is agreement any Boeing? to you on other Specifically color Great. use the And technology. Adam, for on the give with Risk can & there can us Is Andy you of this need or something implement autonomous autonomous be in it all-in in technology? full to go to fact not Or able is the of nonautonomy to aircraft if do aircraft? you an next use generation

lot of we you here. can you give see with working with that high-level Maybe United, it’s with work I Archer Adam. sort can with our and David, a Yes, of a a success answer has Stellantis. strategic work partners,

to and from so growing And start together we really there. ways finding then the off work relationship

So a Wisk spent [ph] of autonomy. of lot money a pilot market a doing a lot and Boeing are years, bringing of time, to and vehicle, we lot

together that this as we implement natural matures. with provide and through So And will best updates you how we overlap. to this there’s relationship details to And this. working stage, that certainly at see are more

comes Sullivan next Company. Our Benchmark with from question Josh The

an fronts the here. hours still for aircraft plans at on the of certification, do of conforming number I on is [ph]. working certification assumption on to credit going each X aircraft with execute point? have But number you're to Congratulations to you know a get this to need assumption

is This Tom. question. great -- At

that very number exact cuff of So that we assign recall I off test we’re and going that each way were like of the And to do a out call the advance. and of those but systems that goes has earlier the installed have flight get have to talking specific schedule that detailed you conformed aircraft we do don’t planned that tests so very flat methodically it the on proper exact testing. really here, sure can about the you to hours numbers in tail all do. the each is as properly credit make for

operations? defense debate. the Got comes partnership? Is markets it. to collaboration And Boeing, faster autonomous aircraft defense the at as need today for relationships might to commercial when looking especially [ph] that then curious on how this as far your for But you what avenue, with that up a deliver Just flight that how would side midnight going for are you're now year. Auto additional development And an I guess a develop.

stay those I don’t to and have with say and here those. that really much that I about. there’s think of interesting and more definitely all exploring I a we’ll one, that give we’re tuned come interesting Yes. on can would of Josh. color you avenues as start you are I But add. more that question, I lots That’s do updates agree applications

one at one. this an Got with then point? defense relationship Anything it. last precluding just the And international midnight

sells U.S. way the believe people consult I think high-level talk the the anywhere the mean, government so. I it players different to. to don't rules, about I is

a that's list. broad pretty So

you time. Thank for it. Got the

conference for at Thank your no this so for Thank the this waiting your I queue conclude in call questions you at you participation. questions. will time. are time, all There

disconnect You lines. now may your