Q2 2023 Joby Aviation Inc Earnings Call

Yeah.

Greetings and welcome to Jovi Aviation second quarter of 2023 conference call in with cash.

This time all participants are in a listen only mode. If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

My pleasure to introduce your hose Theresa steel.

Thank you and thanks, everyone for joining us today for a discussion of Josie Aviation second quarter 20 twenty-three financial results. My name is Teresa and I'm Joey's head of Investor Relations.

On the call today, we have killed endeavor founder and Chief Executive Officer.

Tara Executive Chairman DDA Papadopoulos head of aircraft Lvn, and Matfield Chief Financial Officer.

After management's prepared remarks, we will open up the call for questions.

Please note that our discussion today will include statements regarding future events and financial performance as well as statements your beliefs expectation and intent.

These forward looking statements are based on management current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

For a more detailed discussion of these risks and uncertainties. Please refer to our filings with the SEC and the safe Harbor disclaimer contained in today's shareholder letter.

The forward looking statements included in this call are made only as of the date of this call and the company does not assume any obligation to update or revised.

Also during the call, we will refer boats to gap and non-GAAP financial measures reckon.

Reconciliation of non-GAAP to GAAP measures is included in our queue to 20 twenty-three shareholder letter, which you can find on our Investor Relations website, along with the replay of this call.

And with all of that said I'll now turn the call over to Japan.

Thank you Theresa and thank you everyone for joining us today I'm pleased to say that we had an incredible second quarter.

I often talk about the commitment our team has to delivering on our goals, but this quarter. The team really knocked it out of the park consistently on time and in every area of our business.

Back in our fourth quarter call, we outlined goals for the first half of 2023.

We said, we would submit all of our certification plans to the F. A a and we did.

We said, we would roll out our first production prototype and fly it and we have.

I'm pleased to confirm that the aircraft flew for the first time last week following an extensive ground testing.

It performed as expected and we're looking forward to expanding our flight test program with the aircraft before delivering it to Edwards Air Force base in the course.

We also said we would select a site for our scale manufacturing facility.

While we could have made a decision in the first half of the year. We've had a remarkable amount of interest in hosting this facility and so we've taken the opportunity to spend some additional time evaluating various sites to ensure we secure the very best long term solution and instead of package.

Each of these goals is a huge milestone for Jovi and reflects our relentless commitment to execution.

It's a real team effort and I'd like to thank each and every member of the Jovi team for their hard work and achieving these goals.

The rollout of our production protostar was particularly special because it's the culmination of more than a decade of hard work.

We have been building and flying full scale aircraft since 2017.

But to be able to build with this level of rigor is a huge step forward and we're incredibly proud of the performance or aircraft delivers.

Our motors each provide 236 kilowatts peak power.

With six propulsion units on the aircraft that's nearly twice the power of a model escalade, the most powerful tesla areas and yet the entire aircraft weighs less than the car.

Our motors play an important role in keeping that weight down the dual wound motor and Invertor wages 28 kilograms, together and we've been able to combine the coolant pump radiator fan hub propeller and pitch servo actuation into the same package.

But it's not just the power and the weight that makes the motors special it's the way in which that power gets delivered.

We've designed motors that are incredibly torque deaths offering as much torque is the engine of a heavy duty Ford F 350 pickup truck.

And we've done this without a gearbox.

Gearboxes come with a multitude of rowing element bearings and dozens of guilty that are constantly running through fatigue cycles.

Each one of these parts has to be tracked inspected lubricated and replaced throughout the lifetime of the motor.

They also create excess vibration.

Instead, we've designed the Jovi direct drive.

Our motors deliver all of the power and torque that we need with only one moving part Ah single bearing.

Our story is similar when it comes to batteries, we didn't want to compromise we wanted to find the best possible solution, even if it took more work on our part.

Over the last six years, we've tested hundreds of cells and our own testing lab.

The obvious choice would have been a cylindrical sell their widely used in automotive and consumer electronics, but even the best cylindrical sells presented to major challenges.

They didn't offer the level of specific energy, we need for maximum performance and we found their capacity deteriorated. After just a few thousand trip cycles.

That would mean more frequent battery pack replacement and higher operating cost.

So we chose a pouch cell one that delivered on every metric that mattered to designing a highly efficient and safe even tall aircraft.

The cells were using in our production plane come from the automotive supply chain and delivered 288, what hours per kilogram at the cell level.

And we've demonstrated in our lab that they're capable of more than 10000 representative flight cycles.

At the pack level, we're delivering 235 watt hours per kilogram, which has a higher specific energy than many of the cells. We've tested on the bench.

And with all of our area specific certification plans now submitted we have a clear path to certify our battery packs.

Our approach of custom designing key parts allows us to deliver the highest possible performance without carrying excess weight or compromising functionality.

And it has allowed us to deliver on one of our core company goals, having the right aircraft for the market.

Our production aircraft is set to be the lightest quietest and fastest for passenger evie tall in the skies.

We'll be able to carry 1000 pounds, a payload and we'll be deploying our aircraft on trips of up to 100 miles, making it perfectly suited for operations in urban areas.

As we begin to ramp manufacturing tortoise support has been invaluable whether it's the design of specific tools and processes or the layout of the facility itself and.

And to recognize that support we were honored to have <unk>, President and CEO of Toyota North America speak at our production launch event in June .

Ted joined the job Board of directors on July 1st and we're looking forward to working together.

During that same week, we had two other important visits that demonstrates the wide ranging support we're seeing for area mobility in the U S.

California, Governor Gavin Newsome joined us to celebrate the launch of production here and more than 70 Representatives from President Bidens, an interagency working group visited us to hear about the Jube aircraft and witnessed a flight test.

The government's commitment to ensuring U S leadership in this sector was also reinforced by the publication of the F. A a H a M roadmap in July .

This document outlined how existing rules existing infrastructure and the play in publication of the S. Far document in 2024 will enable real meaningful commercial operations to start in 2025.

The document also talks about the work the F. A a is doing to bring forward upgrades to air traffic control and operating rules that would enable the U S to deliver world leading capacity for EV tall aircraft by 2028.

This is a remarkably positive step with the F. A a effectively pulling forward. The date. It is planning to support scaled operations from the twenties thirties to 2028 in time for the L. A Olympics.

As I said at the outset. This has been an incredible quarter on top of all of the progress. We've made we've also been able to strengthen our balance sheet and we now have $1.2 billion of funds available to us.

Having such a strong balance sheet won't change our thoughtful approach to spending but it does allow us to accelerate early production and ensure we're best position to start commercial operations in the U S. In 2025 as planned for by the F. A a.

It also puts us in a great position to achieve the sort of scale. The F. A a is planning for by 2028.

And on that note.

Over to you.

Thank you Joe Ben.

I'd like to start by focusing on our certification progress.

As we mentioned at the top of the call. We have now submitted all of our certification plans to the F. A a.

And importantly, we already have two thirds of these accepted.

These submissions include 13 areas specifics are planned harder.

Hardware and software Sir plans for every system on board as well as certification plans covering areas such as Becca cyber security and system safety.

Taken together they form the third of five stages of the certification process.

And I'm very proud of our team for getting us to this point and for submitting these plans on time, just as we promised we would in our fourth quarter Cole.

I can't stress how important this progress is every.

Every time, we take a step forward on defining our certification basis, we take risk off the table and solidify our path towards type certification.

Looking at the progress chart that we include in our shareholder letter each quarter, you will see that we made progress across stages, two three and four.

And that is because certification is not a linear process.

Our systems accepted at stage three we're able to proceed formally interstates for.

Similarly, some plans are submitted and then resubmitted following dialogue with the F. A a.

That iteration and dialogue is reflected in the minor fluctuations you will see in the numbers.

What matters most when you look at these numbers is that the vast majority of our certification basis is now in place.

Which means the vast majority of our effort is now focused on the implementation stage of our certification which starts with stage four.

And stage four we rights and then execute test plans that demonstrated the compliance of every individual apart sub system and system in the aircraft.

And we do that through a combination of engineering analysis in real life physical testing either in the lab or eventually on the aircraft.

And for each of the thousands of test will do and there will be thousands we complete internal company verification first before performing the tests for F. A a credit which they will verify as part of stage five.

Essentially that means we drive on each and every third to ensure we're ready.

We think about this testing regime as a pyramid.

With individual parts, forming the bottom step of the pyramid and the full aircraft at the top.

We start at the base of the pyramid, writing test plans in completing tests on individual parts.

We then work our way up the pyramid building those individuals parts into subsystems that also get tested.

And the further up the pyramid, we go the more systems and parts, we will together until we get to the top wherever we will test the full aircraft as one coherent system.

Here are production prototype or play an important role in supporting aircraft level of development testing.

We are harder to work developing several deaths plants that setups and multiple parts as we increased focus on this face.

As our progress chart shows.

I've already made inroads in stage four and during the quarter, we submitted theft plans for our flight control a computer which is one of the individual parts at the base of the pyramid.

We then went on to successfully complete internal company verification on the flight control computer, meaning we're now ready to start for credit testing on that part with the F. A a.

We will be working on stage four right up to the end of the certification process and.

And I'm looking forward to sharing updates on our progress each quarter.

But now I'd like to add a few words to what joh been said about our production prototype aircraft.

It's not often in your career that you get the opportunity to roll an aircraft of a brand new production line and particularly not an aircraft as revolutionary as ours.

There was a proud moment to join more than a thousand guests, including many of our team members at our production line in Marina to celebrate this achievement.

Designing and building a full scale demonstrator takes a huge amount of work.

We know because we did that in 2017 and again in 2019.

But moving from those first full scale prototypes to a production system, where we have a repeatable process for building aircraft is a really big step.

It's building the machine that builds the machine.

And I'm pleased to say our next aircraft is already working its way down our production line with bars for the aircraft after that being manufactured already.

Creating an aerospace production system means utilizing engineering drawings that have been verified and released to our manufacturing team with a system for configuration management. It means having full traceability of material and components from start to finish including every fastener and every slipper for a carbon fiber.

That means delivering manufacturing processes that are repeatable with quality control systems to test and validate the structure and function of everything on the aircraft.

It's a really meaningful step forward for doby, and one that lays the groundwork for us to ramp up and scale our production efficiently.

And with that I'll hand, it over to map.

And yet as <unk>.

I've had mentioned at the end of the first corner, we have 1.2 billion in cash and short term marketable securities. This includes the investment from bailing effort of $180 million received in May and the investment from SK Telecom of 100 million received in June .

And our call last corner, we talked about Baillie Gifford and their longterm investment horizon and their support for joking.

Our relationship with S. K Telecom is very similar the investment made last harder built upon a partnership that was first established in early 2022.

Yeah like our partnerships with Delta Uber is focused on building longterm enduring value through a lining our goals with the value we expect to build together by bringing our air taxi service to customers around the globe.

And the second corner of 2023, we encouraged a net loss of 286 million, reflecting negative other income of about 170 million and a loss from operations of nearly $116 million.

Other income from the corner, primarily reflected the 181 million unfavorable reevaluation smart derivative liabilities as the price of our shares rose significantly during the quarter, partly offset by net interest income of $11 million.

Adjusted EBITDA of non-GAAP metric that we reconciled to our net loss in our shareholder letter was a loss of $83 million. This was about 9 million higher than the second quarter of 2022, reflecting increased staffing and crossed his horse certification, partly offset by increased payments from government contract deliverables.

Our adjusted EBITDA loss was about 8 million higher than the first quarter, reflecting the growth in our organization expenses to support manufacturing and certification and the non recurrence of specific D. O D contract of ethanol achieved in the first quarter.

Global staffing with more than 1500 employees continues to grow to support our company certification and manufacturing effort.

Cash used an operating activities and purchases of property equipment totaled $77 million in the second quarter of 2023.

The reduction compared with the first score reflects positive changes in working capital.

To pay periods in June compared with three in March and lower capital expenditures, reflecting higher investments made in the first quarter.

And the third quarter, we expect to have an additional pain parent consistent with the first quarter and last year.

Through the first six months of 2023 are cashiers and operating activities and the purchase a proper name equipment.

$164 million and we remain on track with our spending guidance of 360 $380 million for the full year.

Before we finish our prepared remarks I'd like to draw your attention to the E. S. P. A report that we publish this quarter.

That's a first step for jogging and for the wider industry. We believe it's important as a support charcoal of having a positive impact on every aspect of our work.

Like our certification progress chart, which we started publishing a year ago. We believe it provides our stakeholders when important transparency on our progress and the wider industry.

This concludes our prepared remarks, operator would you. Please instruct participants on how to ask questions.

Sure. Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.

<unk>, if you would like to remove your question from the queue for.

Participants using the speaker equipment and may be necessary to pick up your handset before pressing this darn Keith one moment, please while we pull for questions.

Our first question comes from the line of Andras Shepherd with Cantor Fitzgerald. Please.

Please proceed with your question.

Hello, everyone. Good afternoon, congratulations on another quarter and thanks for taking our questions.

Wondering if maybe start off was curious to get some of your thoughts around the F. A a.

The implementation guide we shall come in a few weeks ago I know there was some confusion about what scale was and then the 2028 times one versus 2025 G.

Just curious to get maybe your thoughts on it what what stood out and you know, perhaps what do you think is perhaps confusing some investors. Thank you.

[noise], Hey address great to catch up so we were really pleased with the work that the F. A a did again as I said my prepared remarks really pulling forward the timeline for significant operations to 2028 in time for the Olympics as.

Well as.

Committing to the ability for us to and others in the industry to.

Deliver meaningful operations in the in the period of time between 2025 and 2028.

Got it thanks, Jovan and maybe to follow up.

I was wondering if you could maybe get a little more clarity on the D. O D contract you know that's coming up soon you know we know what the contract gets worse just trying to wrap her head around what it'll mean in terms of.

<unk> when might that show up just is there any more visibility around that.

As of today. Thank you.

<unk>. This is Paul I'm happy to cover a sort of the D. O D work I mean just to put.

To give you guys a little bit of color were obviously very much focused on delivering on the aircraft that are required for that contract and really beginning to prepare ourselves for the operations on based out of Edwards. So.

So we mentioned that the aircraft that we rolled off the production line is going to be the first aircraft that is delivered on that contract.

But we've also already put a number of air force pilots through our pilot training program. They went through both the sit down portion of the training the simulator training actually did remote piloted flights of our aircraft at our facility. So that was a really great trial run of the same sort of pilot training program.

That we are eventually going to have to roll out on the consumer side. So we're happy to check that box and then lastly, we've even started work down on Edwards in terms of setting up the charging infrastructure, that's going to be required for operations.

So on the job side, we're full steam ahead in terms of being able to deliver on the contract.

As soon as possible a number of the aircraft that are sort of sitting behind the aircraft that we rolled off. The line are also designated for Edwards, so getting to those milestones.

Is something that we are squarely focused on and I think the reason is really twofold. One is obviously the opportunity to generate revenue.

Across that contract, but second and even more importantly, it's really the first opportunity for us to deliver a product to a customer and have it operate in the real world as opposed to on our test facility and there are tons of learning that come from that already things like the pilot training the maintenance profile, we want to make sure that we get all of those learnings as.

Soon as possible with the largest number of aircraft and that's the way that we're sort of directing our efforts here.

Got it thank you for that.

Go ahead, sorry, following up on your revenue question. So you know the teams are still working through the accounting pieces, but we would expect that discharge.

Really torn 24, when the the vehicles go on base as well, but that's our present timing, but no specifics that we're gonna go towards at this point.

Got it thanks pull thanks, Matt maybe just one last quick one if I may and apologies if I missed this on the prepared remarks, but are there any changes to the expected annual cashback for this year and I know last quarter was 363 89 sure. If I Miss study are there any changes to that for this year. Thanks Man no.

Yeah, No problem no no changes this year first have 164 right on track and we're holding with our guidance of 360 to 380.

Wonderful I appreciate it thanks, so much guy, saying congrats on the quarter I'll pass it on.

Our next question comes from the ninth of Austin weather with Canaccord Genuity.

See what your question.

Hi, Good afternoon, just my first question here <unk> is expected to issue their their final rule on advanced air mobility by the under 2024. So how do you think the timing of that might impact the delivery and received it the tight certificates once all the flu.

Data has been collected and analyzed.

Thank you Austin. So these are these are two separate pieces of our path to certification the S far pertains to the operations of the aircraft and.

The F. A a has been repeatedly confirming that they are on track to deliver that in 2024. The separate a second piece of that is of of our path to certification or commercial operations is our type certification of the aircraft.

And and that work. It did he outlined is proceeding really really well we've submitted the the last of the area specific certification plans as we put in as we plan to do on schedule.

Okay. That's helpful and just on the App works utility time program.

[laughter] I was that for.

<unk> now that you've got Archer also receiving an awkward scorn tries to deliver vehicles.

Do you expect the D. O D will ultimately have multiple EDI told vendors on a feature program or black or do you think they might down select one vehicle.

Alright, I'll send this Paul thanks for the question I.

I really can't speak to what the D. O D may be planning, nor can I speak to the specifics of the contract that that was sort of previously announced by Archer I mean, I think what I can say is that I think the it speaks to the depth of.

The market opportunity on the D O D side of things and I should say that at least from our perspective that expands well beyond just app works.

As we already announced <unk>, we actually started our work with.

Are you almost six years ago, we progressed that <unk> a project with App works and then we even added the marines as well to that contract late last year early this year and we're an active discussion with other branches of the military and other agencies in the government around what additional aircraft would look like so we really see some of these.

Events as positive in terms of what the overall market opportunity may be for us and others in the category.

Okay, great. Thank you for all the details.

And as a reminder, if anyone has any questions you May press star one to join the question and answer Thank you.

Our next question comes from the line of savvy sit with Raymond James. Please proceed with your question.

Good afternoon.

I was curious and you know what factor is inherently but probably more important that'd be S. T I a.

<unk> need Finalization before you start building an actual certification confirm the aircraft.

Hey, sorry. Thanks for the question. This is did you yeah. Great question. So I think if you step back and think about the five stages of certification really need to be thinking about that.

Both of the aircraft level, but also at the building blocks sort of the pyramid that I talked about earlier the three stages that we have.

<unk> today with submit all of the era specific certification plans really targets all of the systems that make out an aircraft. So think of an aircraft is being built out of systems.

The key area of focus right now for US is to started the conforming testing, which has stage four of.

Of those components and systems that go into an aircraft and that's why we talked about how we're focusing on getting it to four credit that thing with the flight control computer right now cause you'll be seeing us progressing into some of the larger systems here moving into the airframe as an example, and some other areas.

Building into the airplane, what's more critical also is the fact that we have.

<unk> and delivered on that just here recently with the rollout this aircraft will be effectively the validation that.

Feeds into all of the other conforming testing that we're doing and drive us into delivering the conforming airplane on time and all of this is part of the plan expect to have a conforming airplane up soon really the focus now needs to be on those building blocks that go into the into the pyramid.

Yeah, just to clarify so do you need do you need the.

Acceptance of all the certifications that you've submitted to be able to.

To go forward or is there any cause I'm afraid the specifications that you need to hear from the ice age curious.

My question.

That's a great question when we when when you think about a conforming air <unk> Air frame. The aircraft is also intended for a specific purpose right in the conforming aircraft to be dedicated for for example for reflect control purposes right. So if you think about the flight control the performance Swim Lane as an example, then you would.

Need the certification plans and the certification test associated with that area accepted by the so it's swim lanes that means we can continue to proceed even at the aircraft's leveled with specific areas, even though some other areas maybe you still under the discussions with the F. A a so really tranches is how we should think about that.

That's that's helpful. I appreciate it.

<unk> you know with with some of the capital that was raised recently I think I've, just noted that and calculate neighbors acceleration of certain events and I was wondering if you could provide a little bit more color on on on what those might be.

Hi, sorry. This is Paul Thanks for the question Yeah would we made the announcement around the additional investment from the folks a bailey a few months ago [noise].

That to us was an opportunity to.

Accelerate and sort of forward invest in areas of pilot production to make sure that we could support the brand new opportunities presented themselves with a new D O D contracts everything else at the time.

So a lot of the work that some folks were able to see when they came down to the roll out of that around the scale up with that pilot production facility. The number of aircraft that we're starting to roll off the line. They're all of that is really some of that foreign investment employee.

Helpful. Thank you.

Our next question comes from the line of Bill Peterson with J P. Morgan. Please proceed with your question.

Good afternoon Mister <unk>.

We really appreciate the disclosure around the area <unk>.

I think we should it's generally the couch it sounds a little higher for silent.

Advantages can also have my area of the swelling or especially when it comes to their motor on your own.

Could you provide some color on what job he is doing on the module epoxide, Connecticut.

Yeah.

Thank you my name it is Joanne I appreciate the question.

So we've been very thoughtful about the selection of ourselves we began testing cells in a lab many years ago and have have tested lots of different formats of cells and we when we think about self lection, we're thinking about many different dimensions.

Including and foremost the safety we have done some groundbreaking innovation on at the the the pack level of the module level to insure.

That we <unk>, we can form with the the standards that we've agreed to with the F. A a and again you know it did he I spoke about the having submitted all of our area specific certification plans is a huge milestone we've been working with the F. A a on on all.

These requirements for for many years since back before 2018, when we first applied for for type certification and so this is a monumental achievement for the GOP team to be able to now.

I'll be moving into the stage, where we can do for credit testing of course, we've been doing testing in our labs on on cells on thermal runaway on on dropping packs proving to ourselves that we have the the safety and the performance across all the different dimension.

<unk>, Okay and across all of the systems and so we're really really pleased with with the progress that we're making and with the performance that we've we've demonstrated in the lab.

Thank you just don't really appreciate that color and maybe a second one should need that what is your view on the Apple store closed her favorite comments for power, that's aircrafts too consistent let's Elijah aircraft date of 30 minutes in the daytime and then 45 minute promote I'd requirements.

Onto your account expectations.

Notification plan.

Cable.

Alright, well. This is did you take that's one so we we were aware of.

Some of the proposed reserves here and do understand that they're really intent you you gotta sit back and think about these deserve as intended to cover a wide area of of range of the market. We are in discussions with via <unk>, just like with other applicants on the specific city of the reserves required for for.

Our operations back to your to your second question. The numbers that we have provided do have considerations for reserve specifically around the areas of the market that we're targeting and so that's obviously part of our our considerations both in our certification plan and the operations that were planning around.

Okay. That's very helpful. Thank sir.

And again as another reminder, if you have any questions you May press star one again too.

The question the nursing queue.

Alright next question comes from the line of Edison, You and Deutsche Bank. Please proceed with your question.

Hey, Thanks for taking our questions first off one to come back on F. A a 2028, how how do you interpret when they say you get a large deployment is at 2050 100, and what's your sort of view on fast I can rant Sue me, we we do.

<unk> hit often in 2025 with the actual operations.

Thanks that as soon as Japan, so the the numbers that I had heard informally from the F. A a where a substantially larger then the numbers you were just speaking about in terms of their targets for deployments in at least one <unk>.

Major metropolitan area in the U S, but I I would leave it to DFA too.

Two formerly state those numbers.

And then on the the D O D D. The military opportunity now that we have I notice that it'd be the contract with Archer.

What's your view that sort of be the <unk>.

Total kind of opportunity. There is this either in terms of dollar value in terms of number of aircraft and is there optionality later on to work with you know friendly allies or is this gonna be kind of very focused on you guys. So much.

I had a sudden this paul happy to happy to pick that one up.

So.

So I think it's probably premature to sort of size the overall market opportunity across D O D and sort of other government customers.

But it's fair to say that it's large I mean, if you take a look at the Army for example, they operate the largest rotorcraft fleet in the World and that's just one of the number of branches of the D. O D and that doesn't include other areas of government, whether it's customs and border patrol.

Or or other sort of agencies that sort of sit in the broader under the broader umbrella.

So I think the thing that we are focused on right now with respect to D. O D is getting aircraft into service is very important I think both for the customer and for us.

To be delivering product seeing that product perform against the mission types that are valuable to that customer and learning the things that we need to learn about how these operate how they're maintained how to sort of produce them progressively higher volume so.

That's the thing that we think is sort of most important about the D O D opportunity for us in the in the near term. This isn't something that's two or three or five years away. This is something that we're executing on right now and we've got opportunities to begin to turn over those cards. Both on the revenue side and on the learning side very very quickly the faster we do that the faster we have and.

<unk> opportunity to begin to expand those opportunities outside of F works in the Marines to other branches and in turn to other agencies from the government.

Got it and if I could sneak one more in on on that.

Have you provided an indication on how much sort of contra R&D. The <unk> the contract has provided thus far.

<unk> no we have not provided that that data once we start getting to revenue and so forth will probably start talking a bit more about that but we've not provide any specifics about the contra R&D.

Okay. Thank you.

Thanks Edison.

And we have reached the end of the question and answer session I would now like to turn the conference back over to do the aviation C E O David four at closing comments.

Thank you all so much for joining us we're really.

Grateful for for your participation as we said at the top of the call where laser focused on execution. That's on certification manufacturing and as we prepare for the launch of a commercial service. We're very pleased with our execution over the the first have and we're just gonna continue to to deliver.

Also very grateful for the support whether to the national state and local level and from international governments. The momentum building in this industry has never been greater also very appreciate of the F. A a and the focus that they're putting on this important new industry.

Finally would love to see.

Express my.

Sincere gratitude to everyone on the job team who's been working really really hard and absolutely knocking it out of the park. Thank you all and just close with we've got the the strongest balance sheet in the business, but that doesn't mean, we're gonna lose our focus on on spending very very thoughtfully.

And delivering exceptional results. So thank you again for joining us and we're really looking forward to catching you again soon.

This concludes today's teleconference. You made a signature line at this time. Thank you for your participation.

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