Archer Aviation (ACHR) 8 Aug 242024 Q2 Earnings call transcript

Good afternoon. Thank you for attending today's Archer Aviation Q2 '24 Operating Financial Results Conference Call. My name is Bethany and I will be the moderator for today's call. [Operator Instructions] I'd now like to pass the conference over to our host, Eric Lentell with Archer Aviation. Please go ahead.

you Archer's thank call. and afternoon, for earning joining Good Archer's This Lentell, Counsel. is Eric General

with are Tom me Founder call the On today Mark our CTO. and Adam Mesler, CFO; our and Muniz, CEO; our Goldstein,

may events. the forward-looking and a are on actual undertake result those information statements cause no of we Those and update uncertainties to future of based be forward-looking by new assumptions making contemplated On differ statements. statements. These call, to the risks forward-looking materially obligation today that as statements involve we will results statements or as from the

For our about risks SEC refer please in more information and the uncertainties, filings. factors those risk to

and letter legalese out will from measures non-GAAP the on financial the financial measures A and today. And to included with way, GAAP the We call GAAP today's our in earnings over to discuss Adam. is also release shareholder non-GAAP turn I'll reconciliation both of call. of those

Archer, path the Since founding on and market. bringing aircraft to time finding to capital most electric we've been focused efficient

over is designed Our is commercializing world. Midnight flights of our the short, passengers cities goal traffic same which emissions-free across all around quietly on safely aircraft, above and to unified carry the team

manufacturing has team on the next everyday maturity in make Midnight hard those with will over XX my goals centered commercializing discussion Over reality. and I partnership focus around expanded few Stellantis, progress, years, all the flights On building of blocks the last engineering, our at putting an the our work been the place to this months. go-to-market the call, our

June, to released read much, first so so we take we our today. In completed letter shareholder flight. Midnight's we time the transition earlier quarter, accomplished This please

one we believe, it aircraft. maximum aircraft. to is aircraft, economics. done use an X,XXX-pound takeoff We've thing successfully the to think for It's accomplish X,XXX-pound ride for with other Midnight transitioned. is, do to this I a sufficient with years payload landing Maker, but remember, X,XXX-pound takeoff and with this case approximately eVTOL aircraft supporting it's a far which vertical ever an largest aerial Let's is weight and approximately more challenging It sharing critical

As key we've this are of to we milestones our quarter, the two which mature, path reached continues certification. rapidly unlock certification efforts. regulatory U.S., are to both In viable Midnight to achieve FAA a necessary advancing

systems the these move forward the of final FAA to enabling fleet continue certification requirements to of to that Alongside started with testing our have First, stages that shared the the Midnight's conform airworthiness finalized we credit so we this, build us that criteria, process. have can FAA. type we aircraft six with with for

of the commercialization markets believe the for proud received people we've our key certification certificate, in and Southwest. In our us parallel, aircraft see in we the we our certain progress behalf advancing Korea, India, opportunity Part in airlines States is we including of that potentially a Archer to in Midnight to is such enable also United domestic operate deploy are the enables aircraft type which customers, airline certified. Second, United will This rapidly XXX eVTOL of as once on and many unique advance international than U.S. I'm I of even UAE, and electric expedited further the efforts where ahead realize. deployment, markets, super made,

as designing, We that affordably announcing the world. envisioned would fundraise partners to challenges on cornerstone commercialization are our at shown additional possible. honored million a or partner, $XXX and the the of Combined with since CEO, now, vehicles Airlines capabilities of we of manufacturing led announced with investment cover continue to-date, cash Stellantis the In manufacturing our our our largest we be our was to raise QX strong management proving capital our me interior I'm scale started navigate our over we've the which after advanced we $XXX position his million light the raise, contract at a years and in the total as by including Tavares we've our strategy. Chrysler an $XXX and support of of aircraft business. Together, engineering, this when first and $XX relationship, team spearhead partner Stellantis teams have well end Stellantis manufacturing vast to agreed best as their the the maintains key constructing through Stellantis, QX, work multifaceted at invested Stellantis. the just month. phase partnership towards commercializing and end in hard community continues aircraft's our of to almost manufacturing And investor. the as with XXXX, this to As million. principle strengthens million terms capital facility, bringing industrialization. Today's completing year. of Stellantis, technical five to raised which by advance buildout, Fiat Today to we in United last where significant Today, collaboration over will have Archer have partners, and investors, this of testing And for to on and equity We institutional Archer. Carlos Carlos with always Archer because next all flight with working team, end have progress lucky taking to strategic experience help demonstrating at our time, that market focus on a high was volume capital focused manufacturing, allowing our been we the cockpit. we're designs and future anticipate technology we conceptual our Stellantis Stellantis our our chose

over $XX includes incremental need scale successful the quarter. This manufacturing relationship being addition issue reducing has capital ramp of is the help I'm Stellantis to chapter nearly Stellantis XXXX. we've exchange, based the labor contributing labor in manufacturing evolution invested and to us $XXX our is that $XXX simultaneously would CapEx in the quarterly million expected to-date, each manufactured our odds to approximately aircraft through in manufacturing also and cost ensure contract will time. an team. Once production. to Archer on this, to initial scale Stellantis to this of Archer cost up while under on of part million In Carlos our would shares to we'll to incurred million Stellantis Stellantis As planned up up us the relationship, This needs fund a increase of exciting confident labor has needed these a new aircraft, with CapEx that Midnight the XXX This that annually. basis, we home. cover manufacturing to in towards the for

in front. we've our see letter progress You'll tremendous shareholder made that on that

announce the the by founded made planned definitive Midnight leadership celebrities provide $X.X Asia, newest Titan Global. Future was Aviation, which make to for now their with for addition billion across continue Europe, Future in the just new to to demand potential signed MOU, of passengers, We for business our to to of members and we strong that to Future indicative which order aircraft this two operating market Flight a decades. Global significant Global initial revenue. aircraft book, the for to from excited complete expect core build nearly purchase the to see XXX at the executives solution it This Flight not we today, include Flight I'm which purchase $X been an has will And Future worldwide deposit a planned Global over work connectivity sign we pre-delivery of represents team world. they prominent Middle agreement, over the purchase destinations anticipated year. We're payments across enough when jets when is and our order bring East. It's book. to and excited Flight Southeast

Francisco foundation predominantly and network Earlier to Bay with we've relationships this our Valley, the the lay Bay, aircraft we partners Aviation. for also aviation Napa, air Silicon quarter, operators Aviation these a the fly. our detailed Area. need This network in East infrastructure across built taxi and plan Atlantic Signature including where leveraged existing We showcased for will San

heart and [indiscernible] Kilroy Francisco, South San largest vertiport revealed in including for the Stripe. of we addition, with some our Francisco's In companies, tech San plans Genentech the of Realty near

with skip time Signature to they is LA three joint Summer years. The engaged stuck in major Southwest nearly interstate landing as Beach, part with they Airlines. We're volume, taxi Olympics Long flights network at World Super Nuys, course, Los Stadium. the that's largest hours, could the Santa the door-to-door announced what our the and passenger of XXXX. is coming flight operating state. traffic. for and unveiled the Cup also Archer's of planned and by Orange operational our district is in includes Van California's and in want network take This the Los Park, spend the of faster We to working University takeoff half be they our spend Burbank, air Aviation, also California drives Monica not at area, By every frequent taxi Southern of Hollywood with develop with XXXX, over across and unprecedented air This in plans carrier Angeles Atlantic airports centered these XXXX, coming planned a the to plans Los network, Angeles Santa hubs traffic International well of concepts XXX today. Today, XX to expected of to counting commuters exciting offer journeys. didn't around levels Airlines, to Southwest closely Hollywood can Airport, bring like Southwest airport County, to Angeles. Rams hours combining locations Bowl as and to air Archer's sporting LA particularly Monica, the is planned for Routes USC, network XXX-acre passengers alongside United California the Southwest and the we to goal Each less decide partners in in take events network. SoFi and and LA year traffic, also than in Napa because even

Midnight the Over Archer vertical teleports develop landing and for two other plans next existing USC's aircraft. USC for and takeoff years, will converting and

are air about on and We we're our excited routes networks. making very domestic the progress taxi

we aviation this early existing as Abu under can commercialization parallel, infrastructure making increasingly key approach for the we Archer launch our largely published deploy partners, across the overall on about chart expedited who with you XXXX, UAE, GTAA, Office and to to team we same spent that getting are share regulatory working a final been on to our expedited Dhabi also working leveraging continues to as Dhabi to deploy plan at closely progress our Investment We aircraft Falcon in pathway in routes, criteria facilities want off more of the next ensure internationally, they the significant Abu and to planning California with Korea, the across partner that together as progress the Dubai and year. In rapid soon where airworthiness country, how FAA see infrastructure agency, for and as an ready manufacture infrastructure, our soon all is that work Air have necessary an the to over to India focus, players the to the we continued the capital-led support Together, we're our aircraft establish have team the has with each government as with line. world to already come opportunity market. In the to and Midnight see, as with time Chateau. Our decided extension year. and has commercialization. I country's

largest we milestone, Last about we're maximum to the to up million. Today, announcing that unlock year, to United order aircraft progress U.S. had Force. States value contract Midnight that, Air $XXX want as yet delivery Defense, to our our delivered the airworthiness of eVTOL our I by for recently United part of DoD's Air Midnight military required share of the assessment. a first Finally, aircraft with more Force. this we In the first to pass announced the Department States

proud I a perform beginning flights. Following how Advancing the future over there's new the because a personnel of our Force team Archer support fleet. I'm We're Thanks as simulated including evacuation, reconnaissance just the team unlock so. U.S. executing Technology This our delivery, flight intelligence, here can this we worked surveillance, is of with towards medical playbook Archer and building to their easy, operations, Chief race of Air alongside And be cargo, this accomplished with heavily to not to at the Officer, from industry and here U.S. time. partners. for offer will opportunities do continued leaned military journey. And nine us on is aviation. more ability six to augment now, work I'm I'll our electric the to the we government believe that Tom. hand that, into joining it our to do at personally large grateful playbook the to has the quarter, for the a no from over avenues months industry of

execute The Archer to impressive continues an team pace. at

to say career, my of a team our past we've test completed track XXX flight reach our June, completed eight and this almost our many team As year. goal Having the the little experience lead took XXX the testaments flights, twice seven we Adam eVTOL can completed a This was I and first our of transition flights over Year-to-date, Midnight's months in was to full-scale of team. The course progress successfully it over programs first goal this talent us Midnight's discussed, from flights confidently to rapid of as to is fall. this of helped over on just one time The transition in as transition we're quarter. fast flight. flight Maker. accomplished last

In team towards That upwards is cadence day. goal flight a means XX our we working flying times fact, also in XX of a commercial flights. The with completed in demonstrating recent one operations-like of week, Midnight.

As of a AFWERX our to long Adam the The the contracts mentioned, and that year. signed technologies Midnight United on progress to American and go benefit to aircraft also around industry first of the consumers delivered as storied aerospace States Force with history our world. here military has U.S. Air working part last key we

leveraging with a world's and AFWERX, towards to use our advanced States lead key for our flight Our towards the aircraft different the exploring continues contract the AFWERX of technology efforts the test a to United with are and technology. step are way working broader ensure with aircraft just DoD subset cases most

FAA besides in Midnight's making the in two as Register, Archer. knowledge, past my rule certification only Part engaged final program. of eVTOL front, The have issued us not with our completed for reached XXX the Federal a any with program published criteria FAA. workshops On airworthiness to two. The continues process Criteria the our FAA certification those published at final for only Airworthiness set [two] be this our the also across been quarter has recently productive or draft back-to-back To stage has multi-day We the California Ops Certificate, to not agency Airline eVTOL FAA especially certification of other companies the a one they this headquarters.

for for FAA safety impressed detailed extensive safety left we Midnight. the review our the multiple The where the evaluated on done systems a teams First, work by FAA hosted formal the regulators over analysis deliverables have year. last

review a examining and completed to on-site our of FAA just productive certification our also matter multi-day This We hardware. meeting of experts at the with our subject all process. in-house battery facilities a and regulators session testing our details was battery

our we testing composite On materials. completion our are front, certification of structural the airframe four-credit testing on nearing

aircraft also with of piloted the our are done up on to for hardware flight certification We wrapping those upcoming first environmental testing some the tests being system of credit. support

for the audits of rules the aircraft. The Aviation Special also making for our Office Powered-Lift operational hardware good Management finalizing FAA with is and Budget our complete progress review. continuing and to the also or aircraft Federal now SFAR, four-credit Regulation, towards at are various of elements for We software

certification commercial and it understanding the roadmap operations certificate. for step FAA likely us XXX that it is because FAA the establishes end October. our is type a industry the for by Our and This indicates Midnight's add existing the big publish final the onto this issues the will of rule Part once we

into assembly the and the facility fuselage team mate in assembly The production recently the integrating On is systems it preparing in first here now weeks. received coming to Midnight wing piloted our the of to aircraft, the bonded wing our at final we California.

making of and are the progress on also We functional the aircraft testing systems. bring-up

production the are processes in made walls with manufacturing All progress us the of and we these key ahead the Georgia, Georgia, that framing and ramping test activities of high-volume tremendous these our plan roof being and using high-rate improve facility production. We've to performed underway. and constructed systems manufacturing interior enabling of to for on now use pressure construction elements in

a this production at located Georgia. Covington square Atlanta, Municipal our is facility, of reminder, foot of the a square just Airport outside test assembly XXX,XXX final building on the both facility site and foot a flight first XX,XXX As phase XXX-acre

production facility one X fully production aircraft later when to Phase month. year are aircraft of per and of modest expect volumes operational. up per this We rate roughly remain support facility XXX on a track to the to We year, initial this targeting open of we

and our month rate increase aircraft capacity ultimately a capabilities to per this, location to is XX additional goal subsequent to team In In parallel, Following start and paces, four testing and through our up activities and years. lines world to manufacturing to existing parts Georgia per XX then as soon velocity of coming being next aircraft in also our and years, of outer both manufacturing initial as to localize midnight. scale, production volumes critical processes accelerate production continuing manufacturing month are at replicate we support on improve initial with and to the low the online being us facility for the volumes we the give as other we higher the the ready ramp deployments. our we certification opportunity aircraft is of at commercial in as strongly triple put have a execute summary, our goal and there, manufacturing. prepare up years. From an relatively opportunity The up as year speed their in to to stand in

Each bringing now milestone this our experienced to to is to turn solidify it leadership our and business and that to talented technology demonstrate and position, market. And I'll Mark. to team continues strategy over new extraordinarily we executing commercialize hit aircraft. believe we of optimal is the what All progress this path our thanks

I and call, are us our and in terms mechanisms, We've public in liquidity for raise ensure how market. earnings continue being necessary to to to our the the to markets by strength we ability position raise been secure our funding contract to have how with implementing and the capitalization to ability capital key relationships strong discussed with manufacturing last our partners. thoughtful top arrangement capital of liquidity is of our are our announcements On and our today's priorities capitalization driven the testaments Stellantis path our and

the our most focused X by part path this As with suppliers. finding driven A R&D path efficient Adam mentioned, is our efficient time partnerships we are capital and to of major on aerospace market. Tier

across about the that However, into be our today with Stellantis capital-wide to production. show manufacturing the includes manufacturing de-risking substantially should to the of capital-wide our aircraft, in relationship approach to we manufacturing way have ability to with considerations for our put goal I cost. dig XXX to footprint, CapEx, through want to key ramp manufacturing framework Stellantis across contract the our manufacturing of details strategy. The The labor majority you is that our operations and a place is capital aspect Stellantis needs help of our cover ramp thinking the

financial is achieve the across brings goal for put vehicles in not Stellantis some ramping profitability us. year and we hard about color just factory, contribution complex this in that. Tom that It's Importantly, manufacturing scaling on to provide scenario. will the our and produces I spoke for how plan a on systems. about value a six experience to extensive million

XX% our aircraft range margin units. million direct $X at a target volume a Assuming to the our production is of in XX% XXX sales, on ASP gross

manufacturing for choose and be we that this time As at efficiencies. At at able margin marketing, we R&D, lower costs that depending how drive to invest operating to G&A be time. project achieve we our to much in expenses while operating and we'll rate, improving able sales believe the we on volumes same positive increase, will

million and production Our once can and chain enhance done are Stellantis And vendors regard. Since volume pathway already simplify be QX, over is unit driven processes gets lower be of in work and reduced total will manufactured, typical the will Midnight's time that new parts to primarily manufacturing times. rates. designed team that manufacturing production is and efforts, cycle liquidity with as aircraft reducing hardware costs engineering production costs such key the Archer by pricing that at with for working a our the $XXX this the Again, product supply reducing of this to so all end to we've closely raised position. at

which have and range timing expenses. Non-GAAP warrant received non-cash equity-related of out of don't expenses, $XX.X $XXX million, equity-related funding $XX.X when cash addition, between we agreement like of purchase another labor reduce cash we expenses, continue balance to we approximately coupled for over up directly with framework of those our compensation cash. expenses with provides quarter, cash and XXXX included to terms the to couple industry. Switching depreciation, million due and will to QX, they of $XX exchange on sheet, incurred. forward structure are and the last estimates much of stock-based this Stellantis us the capitalized $XX a that to million announced million including operating to way $XX.X GAAP $X that best million, were today July cash think not about restricted one is approximately Archer offsets $XXX.X served on companies $XXX.X XXXX. With build ended CapEx because slightly amortization for equivalents the Stellantis million of respect manufacturing aircraft, to basis, proxy QX, begun key in and In This and expenses, the which of which are expenses, million production. our million $XXX to contract the for in on equity our years of the above burn with in non-cash future $X.X for has expenses, in and The a our ensures total million 'XX equity did we million well $XX costs X, million include million on be 'XX which our invests operating of conforming include were Stellantis the that materials

operating with non-recurring parts flight suppliers incurred our to expenses, chain to as we Midnight and we costs, will use our material testing. for supply for that the aircraft non-GAAP manufacture continue invest and of quarter, during expenses FAA, the of the million of $XX Midnight for in maturation the our we credit approximately for Within procure

Finally, slight spending, range to operating that represents expenses anticipate operator, for Midnight as in a open a the costs expect to we of 'XX, that uptick line QX, the for of we to of This manufacture will $XX aircraft non-GAAP our our program. And with support certification support total million. million substantial portion the materials $XXX of incur questions. we can now

[Operator question a Thank first comes Our Raymond from James. with Syth you. line of Instructions] Savi

and more that on build you've if aircraft as This is to the about Midnight that's of done little talk color quite leading the the of Midnight with Could flying here? a those you you've bit next a maybe you've the on lot and but you flying any aircraft, the - update done. of the are learning you kind type how I that done here, flights, ask on to digest many that can

happy I'll Savi, that. to chat Hi about Yes. be

As I cadence, mentioned last in quarters. earlier really up letter, on we've test flight the these couple call, the we ramped shareholder put our and

coming we've So are all across so already. we're from. are lessons flying Midnight. is both where you the Those maker with That's of Midnight. couple and hundred Most flown can the doing today a flights far times see -

an example, flights actually six today did on As Midnight. we

two goals. main why to there's as doing the that, we're we're learning flying So really what and from

gathering first data flights. upcoming to our support is The pilot

qualities, laws, lot about other as the those sorts from handling its of then Midnight, We the learnings. are things. control we're we aircraft fly, thing operational the is learning learning, both and But maker a

operation operations as up will commercially, I the per goal be day. demonstrating, times further, up the flying XX talked which of we ramp So of the about, of working do cadence with to we're to type even

So in order to have to bunch systems do put their of paces. that through we a

cooling data aircraft helps. well that Hopefully battery the piloted operations. flight infrastructure, to those all both ultimate certification testing, as off pull sports efficiently, that Our as things and super the and working all

how capital the thinking principle. a raise, you're more capital and Mark kind who and raise contract now manufacturing that bit agreement just with participants about about might today's able If ask are talk and the just I the to on are of little you

over about thinking two? capital you're how needs of year maybe Just next the or kind

Yes, some give on I'll provide I it, details. color then some you and Adam let can

United Savi, so a of bunch and including Airlines. institutional some investors, of raise Sure. the capital strategic as were participants our as partners, Stellantis well

exist the think help the think you how When of a will funds I high U.S. capital that give business. kind that think the some I'll burn up. to frameworks the about across raising, the framework manufacturing I just and we're you ramp big So of really managing even and the overall cash level And globe. for understand ultimately the

million Archer, up that supply are engineering So chain. expenses exclude historically about $XX the required non-recurring the around When to core at quarter. stand expense costs Mark talked base $XX that's to upfront here million per and you and the one-time from materials

will relationship with Stellantis to CapEx manufacturing this was production. and that labor cover so so And costs designed they the scale

about cash to goal start when And the the not that And is, any really how manufacturing unless we have do a ramp, program, start cost a that we which new the really flow, is impacts think a increase. and we not structure my will do, materially from So then, aircraft modest to perspective. goal we plans provided chart our hit that aircraft years, of for also dozens XXX a it's XX% level gross start to goal to where and several in mentioned XX%. a couple first margin of And at up. ultimately few at aircraft the the we stay target the we'll aircraft shows them level, shareholder deploy Mark then letter scale the with. And of

that XX% the XXX at volume margin if flow positive level, gross point. ASP, million you at be a $X Archer cash So a assume should

starting for this getting thinking So really the Hopefully been you about that about sense launched. it. gives how key of a and to we're just has Archer all

Peterson JPMorgan. of next from Bill Our question line the with comes

first the to for want Thanks towards they how about one details, of versus GCA I And market? we question mean, that say top the sense, of, to looking other a providing plans. but still think that on the mean, the terms programs? like least get might including the in do vary region? UAE program, just at are do the and How FAA? feel model how at I commercialization might future we're you GCA. aware the first every resources does about in financial the certification should certification? all I'd be I on what think My is

Hi Bill, this Adam. is

think do So yes, the in an we interesting launch internationally, opportunity to there particularly UAE. is

well And through us the regulators. of just commercially by been So have government they've with really directly step on second, as spent well. partners we to as time as supported a the pathway launch for year. And right there here California, soon as the national back the as next kind Abu we've to Office, then, in working Investment Dhabi strong

So are are Dubai operators two Chateau the, Falcon, of Aviation air urban mobility Abu only two in Dhabi. and the Air

helicopters corridor in So both in two as fly the between routes. on of dollars those the charge but them, today them as they thousands cities, of well

it's expensive just high operating really So due the of to cost helicopters.

Midnight into that two slot those collectively deploy So can the directly number of they're to they operating and large those a routes plan aircraft, today.

electrify Dubai. and to ready there infrastructure we're So, the and working Dhabi in Abu

Investment with lot relationship Dhabi on We've expedited the been with for start support really with side also regulator working the via unlocked year. markets, of international and this is support pilots of aviation same GCA, their published to criteria there, Office, Abu a training through So FAA airworthiness there, the us, deployment training has the Etihad really previously that's and that ability had a our an work our with level paying on the highest the partners the to path under of on earlier leaders academy. We've at the to announced strategy the that off. and the work local simulators some

let get sort the little color I'll maybe whole bit that, more Tom well. through to is goal So and as a give of

Yes, years. I several would framework think U.S. has we've last say the a well-established been for pathway on that We've put really the certification way and together. this about the executing is, FAA to got

program. they could interested is generating, off aircraft state on the GCAA working the of the is working of validate existing so, And to come the we're already United that's our essentially of design but with FAA-CERT our FAA, still that the us data based still one the how, in regulators of States,

So, we market. the take a one think now, with on we'll that those airplane we're aligned we're them really and where engaged them I safe regardless details, with are that is, in to process only thing on of

so, just And the just now and share to continuing get with. data to it's us it's data and execute, right place another the

campaign. I wanted flight also test follow-up to the on

think think So things powertrain, testing, we are just flight to between, the when that? doing in on and to rotors, be And I I then needs needs you you're there what now I Are motors, modifications you elaborate what flights. or you're completed between June? the they, to happen beyond about guess, what flights the like more piloted especially more could what did guess that transition

of Yes, course.

essentially no to use, your of we that there's to will need and integrating the be first for bringing question, first in modifications piloted made. So process flights. those We're the aircraft up

integrate that flight completing systems. We functional is, will So ground piloted aircraft. phase there flight as the testing testing. the started I our the do context is where to shipping next wing to to Salinas like delivery do mentioned, campaign, of real tests. Basically We're starting we be deal first aircraft the The testing. we whole for the had this

comes We're miles feet hour. safety is the be flights testing. aircraft demo to ground, again, So are real like a we're not these flight thousands tethered first. of flights doing. or above flying an like deal, This hundred going These

envelope, I are, we've in So transition completed the mentioned, of that categories. with learnings we've terms as now testing done the Midnight, the to-date expanding flight two

engineering is largely focused aircraft around that's First controls.

So how transition, we I other main the how mentioned, Todd's learnings, to operational. software feed question airplane, then, we speeds. are control into things goes final different through control on the as the that will And that

able ground also equipment the in we quickly getting flights, to the spooled certification So up, commercial ops. get recharge our test, when into support and in all aircraft very those things flight both matter, that then between

the most is piece this I of programs is really Bill, important maybe if Hi your think area been in that's color. just these Adam. aircraft that's key. in being I can Yes, one mature design. And add The more

comfortable And that talked what about design we feel and felt and very of is conforming have design. with so comfortable what building aircraft, six maturity in we that the we've these

the delays. cause that's get the flight conforming out, test the flying program a figure get putting ahead what it And paces, stuck that now the for the execution And feel so, you're how do. And capabilities constantly in all through loop ultimately design in and aircraft. we already going it's in an to we're up at just programs the through feel you close game forward. And today. aircraft bring we've trying We large of the this large, aircraft to your can lot confident know start shown I and comfortable where to us of this really design and to piloted why can

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

congratulations thanks taking progresses. and for Hi, question on the my

question works? first be and who's through of of cost. is, or? the use cash the schedules? Like, flow will a volume about my you that labor for the will kind hiring Can through Is example, like how SVC COGS and conducting income the walk land in this that the funding, catalyzed setting us workers And So how flow statement? operationally like,

production I'll allow This that perspective, profitability. the twofold. as to is And you of get should that Adam. we our think high the is the ramp cash we is to Sure. level reduce burn a kind two, to factory. launch at reach this levels target about From way then likelihood One relationship increase is us start. be production

the seen all struggled So, ramp we've to startup - industry, I we with volumes. saw EV think they

us this reduce help think relationship set And there. I is risk here so, to up

needed absorbed is So we that key out the was good focused labor The CapEx. that two the lot of areas, a news CapEx were we've to already on factory. and which build

get helps through will additional And there's spend So at, as like us a CapEx to look that then, we ton initial opportunities not more there ramp. that automation. be left introducing things

So primary kind the we started it. of that's how function,

had Now, here quite Archer for working some at time. Stellantis people has

already looking which of we're is there And what design, here is doing engineering, employees are supply-chain dozens really across Archer team So the the are mixed manufacturing, quality. into Stellantis manufacturing step, side. that at on the next

working for then is reimburse for labor the what's time, Stellantis that really plants, lot have But labor which perspective ultimately will over we as incurred. spool time. expenses some together are the quite to are stock the up happen manufacturing of going to will with doing been help we those Stellantis and a from pay Archer So, now

effectively, the a increase So its needs it's and success. way for Archer of odds cash to reduce burn

net us that I that the is extremely impactful point. at think of this to

we on like about scenario focused aircraft of of can and an be where Apple the design relationship, are focus Apple in the will scaling. type Foxconn think Archer will that on where side You heavily it Stellantis labor

Hi, this here. Mark is

mean Stellantis. recently with still specific that, Your - question partner with contract came our of around I to we terms these key working the just accounting we're our

the So also working partners. with through accounting we're those our still for accounting

data So, you give can we more that as becomes available.

second lot the question think is, have a I you now. of announced Yes, orders

us could and be So of how ramp give will XXXX paid year this how you a will many in sense XXXX? that much deposits up to

Sure.

So X% to in And this an X% as the our to of to payments, of we structured goal we the XX% has lot aircraft. close to a payment. there's is collect initial delivery The have then down is way been up Adam. pre-delivery get aircraft the sales

different the do of to to the go and so, process. regulator, to way on And really work our get collect those a to ability basis terms local we're certification have slot the and in going with payments, market-by-market through

payments in be connected like the different orders placement, ultimately to. a or increase pre-delivery can So about think will a that it will you slot really result these in

And geographies, think more different payments that clear so, those clear more will becomes when pre-delivery become as I of paid. will get the much it

mentioned market. a there good this, increasing increasing to UAE is we've of of path to or an as So example where is the level transparency, us getting

pre-delivery up, dates. to expect closer as get we the to considerably start of the to payments launch level So I would pick

comes question Moeller next Our with a of Austin line from Canaccord.

question parking, we Super Angeles, we to like to XXXX or by Bowl, of ball think think LA area here, many when just aircraft Los when scale first expecting in operations? about you just Olympics how about the either sort My the are the

Austin. Hi

administrator for LA Innovate Olympics use which XXXX, interesting a at what's he goal about Los the, was Billy at Angeles was the is when FAA, out the the in at eVTOLs for Nolen mass called he So what of put XXXX. the scale

So was that goal put a FAA out there. that had the

really Olympics. what's goal, that starting key towards this some likely so cool work And announcement, the of to those we're will be that in LA assets especially with is about involved

to eVTOLs goal hundreds And way that of had was use a so, given it, able Billy framed the at be the was to time.

that be that. the one it'll that doesn't that's just only that necessarily would mean Archer Now be doing

in I you Super - think of to stand infrastructure buy-in But America's to the it in have a many a the really going different which then have perspective, do be that's I World So support extremely likely think in really we're operations get you be is, point is the XXXX, about will that this as ultimately communities, will it lot before we the leadership then similar can. a from go deploy the aircraft the way Cup, even at Los that this. And target Bowl ability and with in well aviation a is frame. their as scenario that as held local even But that. But of - be way we of Angeles. And global would will showcase even up work will LA time type XXXX the be received. at showcase the to a it

of So across traffic network, And lots showcase in lot for place of of LA support the probably to involvement opportunities U.S. number get aircraft the to one for that a is course, the community and industry. the

will large be likely aircraft. there a for demand very the so, And

life. Innovate to see XXXX coming to Great

it the prototypes test in of And the like are Another improved question, the prior Midnight? kind what Maker? decibel latest has since of flights recording levels you

it my exact I don't the Tom. to are provide Hi, Sure. is what it with acoustic I testing with so for line of we we with the be predictions. head, has number the Midnight. tuned right in than Basically, significantly quieter now. yielding that all But far Austin, helicopters. in forget Maker this we top still line to been models want essentially, And expect so off expect estimates our

flight forward myself, obviously when takeoff in landing. where heard show practically in then, data that Midnight in I've have And silent it's and both cruise. We by to

it's cool. So super

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

aircraft pilot together? how's 'XX, 'XX, With and the framework XX coming certification anticipated XX and here in training

is to that sense you mentioned I Well, of on define we good data requirements. the the a will give training the main in that progress that's SFAR. making FAA answer need And that on the Sure. the on that really regulation, firm the that call piece

standing team are On formal Archer the capability. our airline up on though, pilot our side, we training own

training details. together for out, the simulator an to say doing there's that's support entire it's the as the SFAR bit hard program. developing a that, the hardware until that to all comes focused But putting on little as syllabus So work, team well

leaving And looking just the at production for switching the over schedule, backlog, to the book, order the the are percentage book, customers sales and years first the what about for or to you then versus open what of new And dedicating point? order book of versus percentage this partnerships? of booked thinking here couple then you at the production direct out Archer entering are

Adam. Hi, Josh, it's

life sales company's ability early the model it in flow So to quite is direct us compelling, because the relatively cycle. an cash generate gives

that to long-term Air platform be building the scaled globally. Archer I can so, think And important that's really

was key at the of we to really that entire beginning strategy part here Archer. the had that So

international those agreements, we've and have working to helpful the So, high largest connections introduced quite - be to been groups countries and at as those the in markets. a formed we with really made it's those been partner really to most prominent really level. And such and companies

take I really aircraft relatively scale many then be them learn, an what out, different to will time introduce up. think will and levels, across ultimately so, to is play And countries low there at opportunity

than in So different countries places a will I two a just many faster actually ultimately lead ramp, targeting handful to much the or in by very think of aircraft beginning. one putting

in strategy how leaned been been to that. heavily. there the So have And on has that some very that's countries do

also a the talked but pretty well. obviously about, as we've in lot UAE, GCC example, broader So has heavily leaned

you've So a as of lot seen support Arabia example. as an Saudi from well action and

to just to us lean So larger we in frameworks, in place these to more in, put to us to can countries to form continue allow numbers that outer the these will base allow continue the as partnerships level years. scale

David the with from Barclays. line [Operator Our next of Instructions] question comes Zazula

that of a Adam, enhances a pretty And between far I you of they've a as the you partner they comfortable What them, equity are how until up with stake stake as and Archer. further about much how company take, they're in are in you relationship with portion Stellantis. mean, can as a step critical relationship. and in is been your only the say Obviously, shareholder conversations this this investors? monumental how publicly the comfortable taking then owned increased to the and by willing strategic now,

David.

to absolutely started I was was deploy and when build Archer, me just what that to critical able was So it. a I vehicle

been been And a so, there's a out But a doing market. personal actually can my impact. that product never scale, from have financial to entire and deploy has real to and not create goal a there's lot that's generate return at global product get to of goal founders ways that that companies, all. My hardware just and there will build

And really so what towards. that's everything optimizing I've been

I areas has that light to towards talked commercializing. get finding us focused it's market. been with a relationship And the market, so, which And was two the geared to Stellantis about, way to fastest really while to get path across those helping and capital

could we what likelihood increasing profitability. production does. that That's levels reach our So the and to get ultimately this

odds. those increasing just about is everything really, me, for so And

more capital. that So really need means we

also cost so, then, we by doing forward. the production by offsetting And here a helped just of And lot increasing the capabilities. that going have that

from my this dramatically So to and the that get perspective, we for me, us, for a at odds increases was announcement least market. and huge, huge

take just you before a started newcomer what's at David, back of years done we've If industry. we what step the We XX look happened, And and XXXX. relatively into competitors look now we've us that and and lot the that's been second generation went you in flown, aircraft started our Archer's from through of, a lot transition. A a at in, before companies mean, still in fly even to the even started mean, engineering yet that's have of full a even the pacing just I that. accomplishments. I built aircraft.

that. So I'm proud that of super was,

in fleet saying aircraft world, that's don't see building this building have we're piloted the right in Now we now. And aircraft. else ramp that factory anybody conforming then they're put of conforming the scale. can even and place I piloted

a help huge path order then, a get And have have for book, market, to of all to that. partner going backlog. to how that's We and we pretty now a clear pay indicative with

in that to in leadership here. I Archer So, wake will we're near coming charge. is scaled ready. position This the point very that really And And eVTOL I up leads and be I to up, the the and assumes this market see think think here people world. And are think is where Archer the term going time. is a

maybe is on what announcement. the one credit earlier? what I plan questions for a components for finer testing around color types Bill's follow-up you're point for you've What helpful can is Could Tom, put the done and about system doing? credit you testing That this for year? credit testing level of of of on kind

Yes, absolutely.

if a of letter, been the couple you shareholder last updating our go there that to we've in I've So quarters. got chart

executing areas we're So where the just that areas testing approved, we and are are that we're obviously have certification with that. doing plans for credit

are main from components coming our things brush are like that category system there, just the base. supply the of So strokes, broad

mentioned with much as risk that partnering of So about talked by whole low all Honeywell, we've as who've aircraft, as cetera. we've as And Garmin, simple the possible. make over, to done and and our the was Safran, et companies over strategy

you can then stages. audits which those in of the of examples areas, and these things doing big kind flight of we're most see tech chunk flight some the a like, of our system in with there's SOI pointing or to testing to you So which credit for completed, hardware and in Honeywell. All just we control And are systems for software of avionics. chart, environmental

where all get credit done, If level needs for in. So kind be I this step flight take component that of testing a that before and to back, to really system we're that's ultimately is we testing.

we've is in are So piloted the with to production. next that doing be goal mentioned year these aircraft that,

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

Archer our year. I'd thank the and next and market leadership in have bringing also helped as electric aircraft team as call in today's entire maintain like joined the really who partners position to and industry to us relentlessly everyone that early execute our

us position. approach liquidity maintain has Our strong efficient capital helped a

we As ahead. second quarter us I joining am really Thanks about enter XXXX, the excited today. for the of again half

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

disconnect now line. your may You