Q1 2023 Eve Holding Inc Earnings Call
Okay.
Good morning, and welcome to the either mobility first quarter 2023 earnings call. During the presentation, all participants will be in a listen only mode.
Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press the one followed by the four on your telephone keypad. If at any time during the conference you need to reach an operator, Please press star zero.
As a reminder, today's conference is being recorded.
I will now turn the call over to Lucio Aldworth head of Investor Relations. Please go ahead Sir.
Thank you operator, good morning, everyone. This is lucio Aldworth, the director of Investor Relations at Eve and I wanted to welcome everyone to our first quarter 2023 earnings conference call.
I have here with my co CEO Jerry Tomorrow.
And then Brett Stein as well as our CFO Eduardo Couto.
After their initial remarks were going to open the call for questions.
Have prepared the deck with a few slides and additionally information. This is available at our Investor Relations website at <unk> Dot Ive Air mobility Dotcom. So please feel free to download it.
Let me first start by mentioning that this presentation includes forward looking statements or statements about events or circumstances that have not yet occurred.
Have based these forward looking statements.
Largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance.
The forward looking statements are subject to risks uncertainties and assumptions, including among other things general economic political and business conditions, both in Brazil and in our market.
The words believe May will estimates continues anticipates intends expects and similar words are intended to identify forward looking statements when they take no obligation to update publicly or revise any forward looking statements because of new information future.
Our events or other factors.
In light of these risks and uncertainties. The forward looking statements and circumstances discussed in this presentation may not occur.
Actual results could differ substantially from those anticipated in our forward looking statements with that I will now.
Now I'll turn the presentation over to Gerry.
Jerry.
Thanks, Lucy L. Good morning, and thank you to those joining the call today.
He is actually a special day for US it's the first anniversary of our listing on the New York Stock Exchange, we've come a long way in the past year and are progressing well with our business plan, but we know there's quite a bit more to do.
And I'm certain we have the right group of people to achieve our goals have become a major player in the U S market.
Over the last quarter, we've made significant progress on the development of our aircrafts as well as in other areas of our business plan related to the U a ecosystem as you can see on slide two here, we advance to the next step in the certification process by proposing a basis of certification to APAC.
And we expect approval by the end of the year.
We progressed negotiations with our suppliers on both technical and commercial terms and our expectation is to close with suppliers of critical sub systems by the end of this quarter.
We continued the extensive testing program.
With wind tunnel tests are different configurations and components.
And in our design, we are now incorporating a best in class baggage compartment. That's time will talk a bit more about a little later as well as how user feedback is enhancing and influencing our design.
Moving to slide three.
This illustrates our progress on the technical aspects of the program.
I mentioned, our wind tunnel testing, which was a three week long exercise at ROE lag in Switzerland.
We are also testing different motor and propeller configurations through dedicated rigs that allow us to test it under different load and weather conditions.
Interestingly, we have developed a truck mounted rate the validate our modeling a rotor performance during transition in forward flight and.
In addition, we're also employing a series of additional rigs for battery and motor.
As well as thermal management test.
All of these will permit extensive independent testing of discrete sub systems.
And this is an important aspect of our flexible approach, which allows us to test system separately and incorporate refinements into the design. Once we have reached the target solution.
In essence, it allows for quick and efficient product development.
In short we continue to mature the aircrafts within the milestones we established them forecasted earlier this year and either we will have a little more to say on the topic later.
Now I would like to ask <unk> to talk about several features of our aircrafts that were very excited about.
Thanks Jerry.
We are very proud about our focus on user experience and the result of that is to have been shortlisted for the Crystal Cabin Award this year being the short lease for such a prestigious award it's a major achievement in itself and it reflects all the hard work from our user experience and design teams.
And it is a continuous effort, we had many veins and conversations with users customers and partners.
The more human centered.
Festival and cost effective cabin.
Proven at the same time, the user experience and the economics for the operator.
On that note I'd like to highlight a few points about our cabin.
And several of you might have been able to see for yourselves either in Melbourne last month at south by southwest or in their last air show.
One of them, it's an extra wide passenger door, especially design seats for enhanced accessibility in and out of the cabin.
We also focus on multiple sensory involvement including different solutions to address different user needs.
Besides that we are in.
Isn't sustainable yet certifiable matures extensively in our cabin like core natural and recycled materials to minimize our impact on the environment. As a reminder, sustainability one of the pillars of our company and that extends to cabin materials.
Not only you will have a zero emission aircraft.
You are minimizing carbon emissions throughout the entire cycle if the aircraft. So our mature choices are critical.
Last but not least.
Have the best in class baggage capacity.
Our ito en feet, one carry on suitcase per passenger and you can even feature larger checking luggage or even a wheelchair.
We believe this adds to our passenger experience and accessibility to drivers provide capacity for ancillary revenue as operators can charge for additional baggage aitken's, our cargo and since our offer particular for the airport shuttle market.
Onto slide five now.
We also hosted infrastructure summit in our Melbourne offices in April with 25 partners from operators to infrastructure and technology providers to see to Representatives. This was one of the many advances all sort of throughout the last few years to integrate partners in their entirety.
My name mobility ecosystem and help develop and scale its many components.
We had four tracks on that event sound implications for communities energy ground service and passenger flow or a seamless experience.
This type of advance helped us and our partners diagnose potential pain points and yields findings for us to come up with solutions.
And this experience specifically among auto discussions with simulated passenger flow from boarding to the boarding using our cabin mock up.
This gave participants like things of what is necessary choose passenger flow and improve the overall experience. This is unique to ease as we do believe that beyond developing manufacturing of our aircraft. It is necessary to look at all pieces in the entire ecosystem and they engage with partners to co created.
In that sense. It is uniquely positioned in duvernay mobility market now.
Now moving to slide six.
I'd like to mention that right. After all of them for such a summit. We also hosted our Investor day in our Melbourne offices in Florida.
We hosted around 50 participants from partners to analysts and investors. We had a full afternoon off presentations by our team leaders. These are the people in charge of every aspect of the development of our program design engineering, and Uber and air traffic management business development and customary.
Spears they offer some insights in their specific areas.
We also opened an hour of U S offset that event at the end of the day, we unveil our cabin markup should the investment community over a more informal setting with our entire team.
Slide seven shows that you currently have what we believe to be the largest and most diversified backlog by number of customers in regions in the industry today.
In total we have announced that otherwise for 2770 aircrafts from 26 different customers spread over childhood counters and different business from mainline two regional airlines she'll helicopter operators ridesharing platforms and leasing companies.
We also have LOI as Chauffer are open air traffic management system in eight different markets. We believe this reflects the state of the art value proposition, we bring to our partners and their clients and there is more to come on that front.
We believe that pipeline offered a strong term revenue visibility and who healthier to smooth cash flow consumption in the years to come as we start to convert existing ladders orientation into firm orders and collect pre delivery payments Nolan SPD piece.
Beyond that we are developing a strong network of partners denarius, such as infrastructure and energy to address one of the largest challenge ahead of Woodbine and mobility, which is to create a whole new ecosystem. Besides simply developing other aircrafts.
Now I'd like to invite they do to talk about our financials and next milestones.
Thanks at this time.
Now moving to slide eight.
<unk> is a pre operational company and our financial results for now reflect mostly the cost associated with the development of our EBITDA program.
I would like to start with the income statement highlights we invested almost 22 million during the first quarter 'twenty three in our program development group.
Bruce was $9 million a year ago. The majority was invested to develop our EBITA and a portion for our services and support solutions and the development of our urban air traffic management system.
In addition to the development expenses, we also deployed $6 million in SG&A during the quarter versus 1 million last year.
Keep in mind that the evening, Brad teams dedicated to the EBITDA development have been growing as the program evolves.
<unk> also reported around form either in financial revenues during the first quarter, mostly due to the return of our cash investments we have a very conservative financial policy, keeping our money invested in short term deposits with big banks.
That we reported a net loss of 26 million in the first quarter of 2023.
Now moving to cash flow, our operations consumed 20 million in the quarter driven by higher R&D expenses and an increase in direct indirect head count through our Master service agreement with Embraer.
We had a positive impact on our cash flow coming from accounts payable that increased 6 million during the quarter. Most of this is related to the service agreement with Embraer, which is typically paid after 45 days of service being rendered.
With that we ended the first quarter, we have around 295 million in cash, but when we consider these standby credit line from the Brazilian development Bank of almost a 100 meter that will start to access this year. Our total liquidity exceeds 390 meeting we need to.
To fund our operations into 2025.
Finally, slide nine summarizes our milestones for 2023.
I wanted to reaffirm our commitment to this year's goals, we grant on defining the primary suppliers of some of the most critical components like motors batteries and propellers. Once we've defined the suppliers indicated with the specifications of each component like weight power bi.
Required subsistence.
We can prepay designed to deals.
We're also we start building our first full scale prototype.
We plan to start testing next year. We're also planning to launch a trial softer on our urban air traffic management system by the end of the year and we estimate a total cash consumption in 2023 between 130 and 150 million.
With that we conclude our remarks and I would like to open the call for questions operator.
Thank you, ladies and gentlemen, if you would like to register a question or comment. Please press. The one followed by the four on your telephone you will hear us retail them prompt to acknowledge your request.
One moment please for our first question.
Yeah.
The first question comes from Savi <unk> of Raymond James. Please go ahead.
Hey, good morning, everyone.
Yeah.
As you kind of work through the supplier selection here I was wondering if you're able to share any kind of early indications on <unk>.
Some of these agreements might be structured in terms of kind of guaranteed supply or escalator or is it just kind of any early indications as you've had these conversations.
Good morning Savi.
And thanks for joining the call good question.
As we mentioned we're working through both the technical aspects, obviously as we look to refine the final design of the aircrafts as well as the terms and conditions and all of the topics that you mentioned are relevant right and it really depends on the particular product offering.
Combined with how unique that offering is for our our application.
If you look on a spectrum of things motors will be very unique and require quite a bit of development to evolve electric motors for aviation applications versus something maybe a little more mature on the spectrum, which would be avionics. So each of those conditions kind of varies depending on the <unk>.
<unk> offering Stein you want to add anything to that.
Not much I think that's the point as a as we've said Savi. We are in the final stages. So so much you can actually disclose at this point, but I think are in a good track and as Joe said that there are different challenge throughout the selection process and as it learning fathered programs. We go by the <unk>.
Blocks firsthand the primer suppliers first the ones that really move the needle and do move along trials the year with the whole selection process.
But that that makes sense and helpful.
Right.
Along those lines just.
Any color early thoughts on how many of the full scale prototype see plan on building in 'twenty, three and 'twenty four and just curious I'm guessing there's going to be some nonrecurring engineering costs related to that.
And I'm guessing that's probably picks up in the second half and then kind of maybe those into 'twenty four but any any color on that we'd appreciate it.
Yeah, Savi I'll turn it over to Stein, but you're exactly right.
Cash consumption on the nonrecurring side will increase as we go through the year and it's not just for the development of the full scale.
Prototypes or the build of those it also will have to do with really launching now with the supplier side. Both of those things will accelerate Stein, who want to talk a little bit about our plans for the <unk>.
Prototype.
The it as I've said it increased that actually it's the very reason why we focus on the building blocks and really define and matured.
The solution overall engineering project before moving to full scale prototypes. So we don't go back this photo rebuild down the problem more expensive it becomes not only because of the prototypes, but the amount of labor becomes more intensive as we move along the project. So.
We are planning to like a handful of prototypes trials the development as of Domo father programs.
That means that with spectrum, Greece expand your end of year should come but we've seen our business plan. So far we have been able to keep a good track sofa expanded in the development and we do plan to increase that are falling on those the maturing of the project.
Just to point to you through here Savi.
I think that's already reflected in our projections for the year right. We burn premium in the first quarter and if you look at full year. We expect the 130 to 150, so there will be a big company.
Okay.
And our expenses throughout the year and part of that comes from these numbers.
Occurrences.
Makes sense all right. Thank you.
Thank you. The next question comes from Cai von <unk> of Cowen. Please go ahead.
Good morning, and excuse me for the coldest Scott.
So Jerry as.
As you know Billy Nolan of the FAA is about to retire and sometimes it takes a while to get another administrator into the into the seat and why Youre basically going to certify first with Ana what impact do you think that might have in terms of coordination.
With the FAA.
So the by the administration has already flowed at a.
Some names as potential replacements, we haven't seen any indication at the level that that were working with FAA through the bilateral agreement with Ana we haven't seen any indication that theyre going to slow the emphasis on moving forward with <unk> certification. So.
You know the government organizations government organizations and the tops.
The.
The administration nominees change from time to time, that's kind of routine, but you know the the working population basically stays in place and continues to do the work that we ask them to do is civil service. So I think.
That case will be the same here and in terms of.
Yeah the SaaS.
Our stated objective to move forward with a veto certification as a priority.
Haven't seen any change yet but stay tuned.
Will affect all of us equally us maybe a little bit less as you mentioned, because we're going through a neck AR, but we certainly do hope to continue the dialogue with FAA and do they concurrent.
Certification process sign of you know in the detailed discussions have we seen any change at all I am not aware of any no not really I think the concept and the push towards advancing their mobility remains there.
We truly embraer have a long standing relation with FAA that goes beyond a particular administration. So I don't foresee any particular change, but you are right. When you said that any.
A small bump because we need to realign with snap a effects is a bit less as you as our primary certification organization Xena.
Got it and.
Excuse me.
Last one the.
What what still has to be defined in terms of.
Operating requirements, so I know that the FAA basically is.
I think it's getting closer in terms of what they're going to require for opera for types are but what for operating as one of the key issues that you think they still have to define to kind of get the operating.
Requirements set.
You are absolutely correct on that assumption, it's something that has been worked very closely as well with both operators and regulatory authorities as we come from.
Oh, if they experienced substrates buying airplanes for the highest standards of operational.
Not only partway into five aircrafts, but part went to win one operators.
That helps that helps understanding what where it could go the other aspect that helps is that the focus we have them safe two requirements that applies for operations as much as part of developing the aircraft itself. So we are planning for the highest standards.
That definitely helps for future requirements and you haven't been following that very closely as are our operators.
Yes.
Thank you. Thank you.
The next question comes from Sheila <unk> of Jefferies. Please go ahead.
Thank you and good morning, everyone.
So just on the supplier plant and as you guys are taking your suppliers can you give us sort of an update on your prototype later this year.
Have there been finding some wind tunnel or Chuck Mount testing.
How is the design progressing as we think about first flight in 2024.
Yeah, as we've talked about.
We are refining the final details of the design based on the technical information from suppliers.
On size weight.
Volume that sort of thing.
So were making minor refinements there we expect after this.
Major supplier selections are done to return to the wind tunnel testing again later this year at least once.
To validate.
Any refinements that we put in there Stein you want to talk about.
The next few few steps few months.
Yeah. When you were talking about the next development phase things like join definition phase, where we go together with select suppliers and really refine its really about refinement, who have been engaged with the suppliers for years by now that's exactly why you believe you are mature enough to.
To select not only the right supplier, but with the right specs and that helps the next stage so going back to the whole philosophy of building blocks, we don't expect to find new surprise as you are.
Developing the tails and then the integration between systems, mainly right things like the models of the batteries.
And with the final control computer.
We have a good understanding already.
You know where the options are and how how are you going to be able to integrate that so it's really about the tailing and fine tuning the product.
And then how are you working with your suppliers in terms of just the development funding is that some of your cash usage.
How does this agreement workout.
Well, we as I'm sure.
We cannot disclose the commercial conditions of different suppliers, we are in the final.
Process of selecting suppliers right now what I can say, though is that we've worked on both ways in previous programs.
And finally as from the suppliers as well so it is something that we are use it too so.
It's in the table as well, it's all about what is the best combination between funding and recurrent cost and and.
The actual cost of the other products later on so it's it's a balance there will be a different balance with different <unk>.
So players, but I think it's progressing while at this point.
Okay.
<unk>.
Yes.
They are excited about the urban air mobility similar to be Oems. The suppliers. They also want to be in that business.
And they understand that there are some.
Needs.
The Oems and then I think they are going to be willing to put skin in the games.
Just to reinforce that point, they need who makes a you'll note that we have a number of technology partners, who are already investors in the business and that will color.
Perhaps the the contractual arrangements that we have we have unique products now being added such as the energy source being the battery.
That provides an opportunity for different business models as you look forward. So again Steiner said each of these as kind of a unique situation, including the aftermarket.
Arrangements.
Which again, because we have new products like batteries that may have a second life. Each of these has to be negotiated uniquely and that's taking it a little bit of time, and we're investing that with each of the major suppliers.
Great. Thank you guys.
Yes.
Thank you.
As a reminder, via the phone lines you May press. The one followed by the four if you would like to register a question or comment once again that is a one followed by the <unk> for our next question comes from Andreas Shepard of Cantor Fitzgerald. Please go ahead.
Hey, good morning, everyone. Congratulations on the quarter and thanks for taking our question.
A lot of our questions have been answered, but maybe.
Maybe a quick question on the backlog.
I recall from the Ah <unk> cabin mock up events that a lot of the emphasis this year, what's going to be placed on converting that order pipeline off the 2000 and 770.
Loi's into firm orders.
I'm just wondering maybe you can can you comment on that any progress there or when do you anticipate.
Maybe making.
Some announcements there just wanted to maybe better understand what that timeline might look like thank you.
Sure I'll address it.
Stein Stein has has talked about this.
And at some length in various forums and our approach.
The short answer is I wouldn't expect any announcement in the near term because we're working with our partners.
Including operators.
In some cases, a rideshare providers.
Looking at.
The optimum locations and a holistic plan for launch before we announce.
The initial conversion style you want to talk about that that team process.
Sure. So the whole focus right now it's moved beyond any hype and really nail down where the cities will be where the operators want to start bringing the partners events like these infrastructure summit that to just came out of last small fits exactly about that what the network the that.
Makes sense what is the origin destination from passengers. Even so we can build up the network understand the number of aircraft of Phoebe tolls that are necessary to comply with network. So we can plan that align that with our industrialization strategy as well. So I can assure that you have slots with the certification that started.
What goes after a non cafe a what's the sequence where are you going to be deploying the aircraft. So we haven't been through this process since the beginning of the year and to your point there are quite a bit of progress, but we don't expect an announcement of converting that necessarily.
The decision of an AR.
Work together to figure it out even though the support you need to starting the plan for investment in and support where he can leverage and brown infrastructure as well and but all of that together. So that's the development that.
That's happening this year and quite a bit of progress. We do have good visibility on quite a few potential M series of the respected network.
Respective culmination of potential partners in terms of infrastructure energy and so on and also what's the solution for for servicing support might be for that particular location.
Got it that's great. Thanks, Gerry and Andre. Thanks, So much maybe one last question for Ed do I know this was covered.
Previously, but just help me better understand so the cash spend for the quarter was below $20 million.
And Youre reaffirming 130 to 150 million. So just again sorry. If this was covered before but just help me to better understand that.
Higher cash spend in the later quarters what is the primary.
Reason for that.
Thanks.
Yeah.
We were discussing right <unk>. So we continue to ramp up our engagement.
We are concluding all of the suppliers selection on the second half we're going to start the works related to.
So the assumed book their first prototypes so the levels.
Well the activity will continue to go up throughout the year in the first quarter, we consumed 20 meeting a little bit less than 20 million, so but definitely.
Even if you look at some of the accrued expenses.
Look the Master service agreements, we have in Greenbrier now, we're going to have 60 needing to pay now.
Now in the middle of May so there will be.
Higher payments.
Computers and that's the reason we are anticipating this.
Duane, which would annualize ABB to grow throughout the year and be between 131 system.
Got it okay. Thanks, very much everyone. Congrats again on the quarter and I'll pass it on thank you.
Thank you once again as a reminder, you may prefer one four if you would like to register a question. The next question is a follow up from Savi <unk> of Raymond James. Please go ahead.
Hey, Thanks for the follow up just actually too faced.
Following up on Joe's question.
I realize that you can have it has good ideas on kind of partners and and needs and things like that when do you think some of those would be kind of.
Farm formalized in and May be announced.
In conjunction with your certification is that more like a second half 2024 type.
Just curious as to when some of those get more finalize I'm guessing you had to wait till some years snacks are finalized with the with the prototype.
Yeah Savi good question.
We've said all along this year.
Is that the first tranche of major supplier. So if you recall that's propellers.
Electric motors, both the rotor and the pusher.
Pushers and.
The battery really the energy solution, we consider them G zero that should be announced.
At the end of this quarter right behind that you'll have the flight control computer Stein will help me out here avionics et cetera, which will will follow shortly thereafter, so we really expect here.
Within the next 30 to 45 days to nail down most of those and we'll be prepared to announce who they are.
<unk> anything you want to add to that yeah.
<unk> is pretty much the vast majority of the main ones. We are getting to the final stage of the selection process with as Jeff said buffers and so on but you do expect a pretty much everything to be select trials. This year.
For next year, just some smaller items things like interiors as well cabins.
Airframes and so on so we have the vast majority of our craft covered and selected the disease.
And then getting back to getting back to Andres question and yours earlier.
Once we get those selections Donna we launch into what Stein talk about this final joint development working out the systems are systems issues.
That's why we really anticipate along with the.
The accrued expenses.
And the prototypes and the supplier.
Costs, that's why we expect the expenditures to ramp up as we go through the last two quarters of this year.
Makes sense, yeah that was actually it was super helpful answer I was I was kind of curious more on the kind of the first cities in the launch partners.
Okay.
But this is about as well.
Okay. No that does I think as I said, we are in good shape, but we do have a few cities in the deaths.
Death are likely to be the.
The early ones.
The so and when I say that it's because both the the operator by the end of the day, we are not the operator. So it is our customers love child customers to select which market do start.
But we are able to bring together the customer the convenience represent the team's off the C D. The energy providers and infrastructure providers that to be looking at the <unk>. For example to the same discussion and we do have a feel see it is in the pipeline stay tuned.
That probably will be able to disclose before the final agreement with customers.
Okay interesting and then just one last question you know I was curious regarding the urban ATM solution.
The evolution of kind of SaaS initial blueprint for kind of aristocracy operations and how does that compare to your expectations on that kind of the timing and need for that urban.
Atms kind of solution that you're providing.
I think it's pretty in line.
When we're talking about are the overnight traffic management software. It's applies for both the air navigation service providers. The psus, but also the Vert board still operators. So all of them have applications some of them need to be a strict fight some of them. They are more optimization software solutions really that do not.
What's required.
Certification this assortment so that once we do expect to have.
Earlier on we are one of the things we mentioned that we'll have some.
Some deployments easier.
<unk> debt.
These are trials that we are.
In the second half of this year.
Are you going to defy and have trials with Sparks off this altered that will be.
And conditions for that already will be done that last year in Chicago as well had trials their use of our <unk> traffic management software to four trials.
And so on so some of our.
Of the blocks the building blocks and the personalities of the software might come even before what's it going to be a final certified solution.
But to your point, yes, it's.
We have not seen any anything different either on that side. There was a question on earlier question on <unk>.
Operations.
With operations actually F. A as opposed to chew issue. The startup the conditions end of this summer just to clarify a bit more on my last comments they are already.
Published the Con ops.
Last week.
So so far it has been in line with the discussions we had before that's not by coincidence. It says that this early engagement process that we keep track of everything that's going keep discussing so when it comes it doesn't come as a surprise.
Excellent. Thank you very much.
Thank you the.
The next question comes from the line of Marcello Motta of J P. Morgan. Please go ahead.
Hi, everyone. Thank you very much for taking my question a couple of follow ups in that sense I mean, firstly, if there is anything that you guys would like to comment about sales campaign I mean, I know that the focus is more on and off.
I'm getting the prototype opened running you know select suppliers, but just wondering if you know if there is a possibility of seeing no new orders or new partners, maybe only supplying selection that will come up with.
To be added to the backlog.
The second question is regarding liquidity I mean is it do mentioned in all the company you're in a very comfortable position to 'twenty to 'twenty five.
<unk> spent by line, but just wondering if you guys have been looking for you know maybe on other sources of funding you know points related to <unk>.
<unk> to be so if we could expect you guys to neutral towards more standby lines in order to take advantage of the ball.
The ramp up of the company. Thank you.
On the first one let me get the first one and then best to Jerry and to do the the short answer is yes, we even though the big focus is on getting a backlog, we would have and really streamline the operation and how it can be and so one we might expect youll see a few more orders, but that's our strategy.
The customers that we are working to.
Throughout this year, we don't expect the unexpected but a lot of focus on just purely increase in the backlog. So it's more about strategic quarters strategic strategic partners that can come along.
Yes.
Yeah with regard to funding as we've talked about before and they do can talk in detail.
This year, we've put ourselves in a very comfortable position.
We can be as you suggest opportunistic and frankly, if you have a source of cheap funding as you're suggesting we're certainly always open to.
Brilliant ideas, there, but our.
Our plan really is to consolidate where we're going with launch cities and launch customers and examine the pre delivery payments that we talked about before pdp's and looking at the timing and the value of that cash flow, which can be fairly substantial and when we get a good handle on that after the end of <unk>.
This year, we have a number of very significant options open to us with a pretty clean balance sheet and.
The ability with our you know it.
$2 billion market cap.
To also leverage the capital markets, if we'd like to so you do.
Let's talk about that a little bit and just to add one thing.
Jerry.
The short term brokers is really viewed as standby facility was the day, we ended up in bank rate stood at two two.
To access that we have $100 million there available for us.
We are working to make sure we start to withdraw these mining now in the beginning of the second half. So maybe focus is make sure we ask Bruce and development money that we are going to be completed.
Yes.
Oh perfect Super Super clear, Thank you very much.
Thank you. Our next question comes from Marvin Fong of <unk>. Please go ahead.
Thank you all my questions were answered actually.
Thank you.
Thank you that was thanks, Barbara I'll turn the call back over to our speakers for any closing remarks.
Alright, well. Thank you all for attending and as always you can reach out to Lucio aldworth he'll be available for any follow up questions. You may have or any detailed information you may require.
And we look forward to talking to you again, and they're not too distant future.
Thank you this does conclude the conference.
Yeah.
Okay, that's all right.
Can you just say goodbye debt.
But thanks for joining us today.
Thank you. This does conclude the conference for today, we thank you for your participation and ask that you. Please disconnect. Your lines. Thank you and have a great day.
Yes.
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