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spk15: Good morning and welcome to the eVare 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 1 followed by the 4 on your telephone keypad. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, today's conference is being recorded. I will now turn the call over to Lucille Aldworth, Head of Investor Relations. Please go ahead, sir.
spk01: 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 me co-CEOs Jerry DeMuro and Andres Stein, as well as our CFO, Eduardo Couto. After their initial remarks, we're going to open the call for questions. We have prepared the deck with a few slides and additional information. This is available at our investor relations website at ir.eveairmobility.com. 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. We 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, Continuous, 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 events, or other factors. In light of these risks and uncertainties, the forward-looking statements and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements. With that, I will now turn the presentation over to Jerry.
spk08: Jerry? Thanks, Lucio. Good morning, and thank you to those joining the call today. Today 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 and become a major player in the UAM market. Over the last quarter, we've made significant progress on the development of our aircraft, as well as in other areas of our business plan related to the UAM ecosystem. As you can see on slide two here, we advanced to the next step in the certification process by proposing our basis of certification to ANAC. and we expect approval by the end of the year. We progress negotiations with our suppliers on both technical and commercial terms, and our expectation is to close with suppliers of critical subsystems by the end of this quarter. We continue the extensive testing program with wind tunnel tests of different configurations and components. And in our design, we are now incorporating a best-in-class baggage compartment that Stein 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 RUAG in Switzerland. We are also testing different motor and propeller configurations through dedicated rigs that allow us to test under different load and weather conditions. Interestingly, we have developed a truck mounted rig to validate our modeling of rotor performance during transition and forward flight. In addition, we're also employing a series of additional rigs for battery and motor, as well as thermal management tests. All of these will permit extensive independent testing of discrete subsystems And this is an important aspect of our flexible approach, which allows us to test systems separately and incorporate refinements into the design once we have reached a target solution. In essence, it allows for quick and efficient product development. In short, we continue to mature the aircraft within the milestones we established and forecasted earlier this year, and Edu will have a little more to say on the topic later. Now I would like to ask Stein to talk about several features of our aircraft that we're very excited about.
spk13: 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 shortlist for such prestigious award, it's a major achievement in itself and reflects all the hard work from our user experience and design teams. And it's a continuous effort. We had many events and conversations with users, customers, and partners to have a more human-centric, accessible, and cost-effective cabin, improving 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 it for yourselves either in Melbourne last month at South by Southwest or in the last air show. One of them, it's an extra wide passenger door and specially designed 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 using sustainable yet certifiable materials extensively in our cabin. like cork, natural wool, and recyclable materials to minimize our impact on the environment. As a reminder, sustainability is one of the pillars of our company, and that extends to cabin materials. Not only do we have a zero-emission aircraft, but we are minimizing carbon emissions throughout the entire cycle of the aircraft, so our material choices are critical. Last, but not least, we have the best-in-class baggage capacity. Our EVTOL can fit one carry-on suitcase per passenger, and you can even fit larger check-in luggage or even a wheelchair. We believe this adds to our passenger experience and accessibility drivers, provide capacity for ancillary revenue, as operators can charge for additional baggage items or cargo, and strength our offer, particularly for the airport shuttle market.
spk12: On to slide five now.
spk13: We also hosted an infrastructure summit in our Melbourne offices in April with 25 partners, from operators to infrastructure and technology providers to city representatives. This was one of the many events we sponsored throughout the last few years to integrate partners in the entire urban air mobility ecosystem and help develop and scale its many components. We had four tracks on that event, sound and implications for communities, energy, ground service, and passenger flow for a seamless experience. This type of event helped us and our partners diagnose potential pain points and yield findings for us to come up with solutions. In this experience specifically, among other discussions, we've simulated passenger flow from boarding to the boarding using our cabin mock-up. This gave participants a glimpse of what is necessary to his passenger flow and improve the overall experience. This is unique to Yves, as we do believe that beyond developing and manufacturing our aircraft, it is necessary to look at all pieces in the entire ecosystem and engage with partners to co-create it. In that sense, Yves is uniquely positioned in the urban mobility market. Now, moving to slide six. I'd like to mention that right after our infrastructure summit, we also hosted an investor day in our Melbourne offices in Florida. We hosted around 50 participants from partners to analysts and investors. We had a full afternoon of presentations by our team leaders. These are the people in charge of every aspect of the development of our program, design, engineering, and Ubernet traffic management, business development, and customer experience. They offer some insights into the specific areas. We also open in our U.S. office at that event. At the end of the day, we unveil our cabin mock-up to the investment community over a more informal setting with our entire team. Slide 7 shows that we currently have what we believe to be the largest and most diversified backlog by number of customers and regions in the industry today. In total, we have announced LOIs for 2,770 aircraft from 26 different customers spread over 12 countries and different business, from mainlines to regional airlines to helicopter operators, ride-sharing platforms, and leasing companies. We also have LOIs to offer our urban 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 this pipeline offers strong-term revenue visibility and will help EVE to smooth cash flow consumption in the years to come as we start to convert existing letters of intention into firm orders and collect pre-delivery payments, known as PDPs. Beyond that, we are developing a strong network of partners in areas such as infrastructure and energy to address one of the largest challenges ahead of urban air mobility. which is to create a whole new ecosystem besides simply developing an aircraft. Now, I'd like to invite Edu to talk about our financials and next milestones. Thanks, Stine.
spk10: Now, moving to slide eight, EVE is a pre-operational company, and our financial results for now reflect mostly the cost associated with the development of our eVTOL program. I would like to start with the income statement highlight. We invested almost $22 million during the first quarter 23 in our program development versus 9 million a year ago. The majority was invested to develop our eVTOL and a portion for our service 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 EV and Embraer teams dedicated to the eVTOL development have been growing as the program evolves. EV also reported around $4 million 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. With 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 and indirect headcount 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 with around 295 million in cash, but when we consider the standby credit line from the Brazilian Development Bank of almost 100 million that we will start to access this year, our total liquidity exceeds 390 million, and it's enough to fund our operations into 2025. Finally, slide nine summarizes our milestones for 2023. and I wanted to reaffirm our commitment to this year's goals. We plan on defining the primary suppliers of some of the most critical components, like motors, batteries, and propellers. Once we define these suppliers and detail the specifications of each component, like weight, power, size, required subsystems, we can freeze the design details. Also, we start building our first full-scale prototype which we plan to start testing next year. We also plan on launching a trial software 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 meters. With that, we conclude our remarks, and I would like to open the call for questions. Operator?
spk07: Thank you. Ladies and gentlemen, if you would like to register a question or comment, please press the 1 followed by the 4 on your telephone. You will hear a three-tone prompt to acknowledge your request. One moment, please, for our first question. The first question comes from Savi Sith of Raymond James. Please go ahead.
spk02: Hey, good morning, everyone. Yeah, as you kind of work through the supplier selection here, I was wondering if you were able to share any kind of early indications on kind of how some of these agreements might be structured in terms of kind of guaranteed supply or escalators or just kind of any early indications as you've had these conversations.
spk08: 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 aircraft, 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 application. You know, if you look on a spectrum of things, motors will be very unique and require quite a bit of development, you know, 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 product offering. Stein, you want to add anything to that?
spk13: Not much. I think that's the point. As I said, we are in the final stage, so much you can actually disclose at this point. But I think we're on a good track. And as Jerry said, there are different challenges throughout the selection process. And as we're learning with other programs, we go by the big blocks first and the primer suppliers first, the ones that really move the needle. And you move along throughout the year with the whole selection process.
spk02: That makes sense and helpful, if I might. Along those lines, just any kind of early thoughts on kind of how many of the full-scale prototypes you plan on building in 23 and 24? And just curious, I'm guessing there's going to be some non-recurring engineering costs related to that. I'm guessing that probably picks up in the second half and then kind of maybe builds into 24. But any call on that, we appreciate it.
spk08: Yes, I'll turn it over to Stein, but you're exactly right. Our cash consumption on the non-recurring 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, you want to talk a little bit about plans for the prototype? Sure.
spk13: Yeah, as I said, it increased. That actually is the very reason why we focus on the building blocks and really define and mature the solution, the overall engineering project, before moving to full-scale prototypes. So we don't go back. The further we go down the program, the more expensive it becomes, not only because of the prototypes, but the amount of labor becomes more intensive as we move along the projects. So we are planning like a handful of prototypes throughout the development, as we've done with other programs. That means that we expect to increase the expenditure in the years to come, but within our business plan. So far, we have been able to keep a good track of expenditure in the development, and we do plan to increase that following on the maturing of the project.
spk10: Just to add one point here, it's a good year, Sadiq. I think that's already reflected in our projections for the year, right? We burn 20 million in the first quarter. If you look at the full year, we expect 130 to 150. So there will be a pickup in our expenses throughout the year.
spk11: And part of that comes from this no returns as well.
spk04: Makes sense. All right. Thank you.
spk07: Thank you. The next question comes from Hi, Van Rimmer of Cowan. Please go ahead.
spk00: Good morning, and excuse me for the cold I've got. So, Jerry, as you know, Billy Nolan of the FAA is about to retire, and sometimes it takes a while to get another administrator into the seat. And while you're basically going to certify first with ANAC, what impact do you think that might have in terms of coordination with the FAA?
spk08: Well, you know, the Biden administration has already floated some names as potential replacements. We haven't seen any indication at the level that we're working with FAA, you know, through the bilateral agreement with ANAC. We haven't seen any indication that they're going to slow the emphasis on moving forward with eVTOL certification. So, you know, government organizations are government organizations and the tops, you know, the The administration nominees change from time to time. That's kind of routine. But the working population basically stays in place and continues to do the work that we ask them to do as civil servants. So I think that case will be the same here. And in terms of the FAA's stated objective to move forward with eVTOL certification as a priority, we haven't seen any change yet. But stay tuned. It will affect all of us equally. Us, maybe a little bit less, as you mentioned, because we're going through ANAC. But we certainly do hope to continue the dialogue with FAA and do the concurrent certification process. Steiner, in the detailed discussions, have we seen any change at all? I'm not aware of any.
spk13: No, not really. I think the concept and the push towards advanced air mobility remains there. We, through 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 small bump because we need to realign within FAA affects us a bit less as our primary certification organization, ZANAC.
spk00: Got it. And, excuse me, last one. What What still has to be defined in terms of operating requirements? I know that the FAA basically is, I think, is getting closer in terms of what they're going to require for type cert. But what for operating, what are the key issues that you think they still have to define to kind of get the operating requirements set?
spk12: You are absolutely correct on that assumption.
spk13: It's something that we've been working very closely as well with both operators and regulatory authorities. As we come from all of the experience of certifying airplanes for the highest standards of operations with not only Part 25 aircraft, but Part 21 operators, that helps. That helps understanding where it could go. The other aspect that helps is that the focus, we have on safety requirements. That applies for operations as much as for the developing the aircraft itself. So we are planning for the highest standards. That definitely helps for future requirements. And we are being following that very closely as are our operators.
spk05: Thank you.
spk07: Thank you. The next question comes from Sheila of Jefferies. Please go ahead.
spk03: Thank you, and good morning, everyone. So just on the supplier point, as you guys are picking your suppliers, can you give us sort of an update on your prototype build later this year? Have there been findings from wind tunnel or truck mount testing? How is the design progressing as we think about first flight in 2024?
spk08: 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 we're making minor refinements there. We expect after the 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 steps, few months?
spk13: Yeah, when you're talking about the next development phase, things like joint definition phase where we go together with select suppliers and really refine, it's really about refinement. We have been engaged with the suppliers for years by now. That's exactly why we believe you are mature enough 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 details and the integration between systems mainly, right? Things like the motors of the batteries with the flight control computer. We have a good understanding already or know where the options are and how we're going to be able to integrate that.
spk12: So it's really about detailing and fine-tuning the product.
spk03: And then how are you working with your suppliers in terms of just the development funding? Is that some of your cash usage, and how do those agreements work out?
spk12: Well, we, as I'm sure
spk13: You 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 of receiving fundings from the suppliers as well. So it is something that we are used to. So it's in the table as well. It's all about what is the best combination between funding and recurring costs and the actual costs of the product later on. So it's a balance, and it will be a different balance with different suppliers. But I think it's progressing well at this point.
spk02: Okay, great. Thank you so much.
spk10: Maybe just one comment, Stein. The suppliers, they are excited, right, about urban air mobility. Similar to the OEMs, the suppliers, they also want to be in that business. And they understand that there are some, you know, needs that the OEMs have, and I think they are going to be willing to put their skin in the game.
spk08: Yeah, just to reinforce that point that Edu makes, you'll note that we have a number of technology partners who are already investors in the business, and that will color everything. perhaps 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, as Steina said, each of these is 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 a little bit of time, and we're investing that with each of the major suppliers.
spk04: Great. Thank you, guys.
spk12: Yeah.
spk07: Thank you. As a reminder, via the phone lines, you may press the 1 followed by the 4 if you would like to register a question or comment. Once again, that is the 1 followed by the 4. Our next question comes from Andreas Shepard of Counter Fitzgerald. Please go ahead.
spk14: Hey, good morning, everyone. Congratulations on the quarter, and thanks for taking our question. A lot of our questions have been answered, but maybe a quick question on the backlog. I recall from the cabin mock-up event that a lot of the emphasis this year was going to be placed on converting that order pipeline of the $2,770 LOIs into firm orders. So I'm just wondering, maybe can you comment on that? Any progress there? When do you anticipate maybe making some announcements there? Just wanted to maybe better understand what that timeline might look like. Thank you.
spk08: Sure, Andreas. Stein has talked about this 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, rideshare providers, looking at the optimum locations and a holistic plan for launch before we announce, you know, the initial conversion. Stein, you want to talk about that team process?
spk13: Sure. So the whole focus right now, it's moved beyond any hype and really nailed down where the cities will be, where the operators want to start, bringing the partners. Events like this infrastructure summit that you just came out of last month, it's exactly about that. What the network that makes sense for is the origin destination from passengers even. So we can build up the network, understand the number of aircraft of eVTOLs that are necessary to comply with networks so we can plan that, align that with our industrialization strategy as well so we can assure that you have slots with the certification strategy, what goes after ANAC, FAA, what's the sequence, where you're going to be deploying the aircraft. So we have been through this process since the beginning of the year. And to your point, there are quite a bit of progress. We don't expect an announcement of converting that necessarily Soon, exactly, because like we are doing with the aircraft development, actually, we are going to mature the decision. We're going to work together to figure out even the support we need to start the plan for investment and support where you can leverage Embraer infrastructure as well and put all that together. So that's the development plan. that's happening this year and quite a bit of progress. We do have good visibility on quite a few potential long cities or the respective network, respective combination of potential partners in terms of infrastructure, energy, and so on, and also what the solution for service and support might be for that particular location.
spk14: Got it. Thanks, Jerry and Andre. Thanks so much. Maybe one last question for Edu. I know this was covered previously, but just help me better understand. So the cash spent for the quarter was below $20 million, and you're reaffirming $130 to $150 million. So just, again, sorry if I know 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 no it's very disgusting right andreas so we we continue to ramp up our engagement
spk10: We are concluding now the supplier selection. On the second half, we're going to start the works related to the assemble of the first prototype. So the level of activity will continue to go up throughout the year. In the first quarter, we consumed 20 million, a little bit less than 20 million. So, but definitely, even, you know, if you look at some of the accrued expenses, If you look at the master service agreement we had with Embraer, now we're going to have $16 million to pay now in the middle of May. So there will be higher payments in the upcoming quarters, and that's the reason we're anticipating this 20, which would annualize 80, ready to grow throughout the year and be between $130 and $150.
spk11: Got it.
spk14: Okay. Thanks very much, everyone. Congrats again on the quarter, and I'll pass it on. Thank you.
spk07: Thank you. Once again, as a reminder, you may press the 1-4 if you would like to register a question. The next question is a follow-up from Savi Sidd of Raymond James. Please go ahead.
spk02: Hey, thanks for the follow-up. Just actually two. First, just following up on Andra's question, I realize that you kind of have good ideas on kind of partners and needs and things like that. When do you think some of those would be kind of formalized and maybe announced kind of in conjunction with your certification. Is that more like a second half 2024 type timing or just curious as to when some of those get more finalized? I'm guessing you had to wait till some of your specs are finalized with the prototype.
spk08: Yeah, Savi, good question. We've said all along this year, that the first tranche of major suppliers, so if you recall, that's propellers, electric motors, both the rotor and the pushers, and the battery, really the energy solution, we consider them G0. 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 we'll follow shortly thereafter. So we really expect here you know, within the next 30 to 45 days to nail down most of those and we'll be prepared to announce who they are. Stein, anything you want to add to that?
spk13: Yeah, no, it's pretty much the vast majority, the main ones, we are getting to the final stage of the selection process, like as Jared said, but you do expect pretty much everything to be selected throughout 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 aircraft covered and selected this year.
spk08: And Sabi, again, getting back to Andre's question and yours earlier, once we get those selections done and we launch into what Stein talked about, this final joint development, working out the systems of systems issues, That's why we really anticipate, along with 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.
spk02: Makes sense. That was actually a super helpful answer. I was kind of curious more on the kind of the first cities and the launch partners. Yeah. But this is super helpful as well.
spk12: Oh, okay.
spk13: Now, I think, as I said, we are in good shape. We do have a few cities that are likely to be the early ones. And when I say that, it's because both the operator, by the end of the day, we are not the operator. So it is our customers. It's up to our customers to select in which market they will start. But we are able to bring together the customer, the community representatives of the city, the energy providers and infrastructure providers that will be looking at the vert ports, for example, to the same discussion. And we do have a few cities in the pipeline. Stay tuned. That probably will be able to disclose before the final agreement of customers.
spk02: Interesting. And then just one last question, you know, I was curious regarding the urban ATM solution, you know, the evolution of kind of FAA's initial blueprint for kind of air taxi operations, how does that compare to your expectations on the kind of the timing and need for that urban ATM kind of solution that you're providing?
spk13: I think it's pretty in line. When we're talking about the webinar traffic management software, it applies for both the air navigation service providers, the PSUs, but also the vertical wards, the operators. So all of them have applications. Some of them need to be certified. Some of them, there are more optimization software solutions, really, that do not require certification necessarily. So that ones, we do expect to have applications. Earlier on, one of the things we mentioned that we will have some deployment this year, right? That in terms of trials, we are in the second half of this year, we're going to deploy and have trials with parts of the software that will be in conditions for that already. We've done that last year in Chicago as well, had trials there, used our human traffic management software for trials. and so on. So some of the blocks, the building blocks, and the functionalities of the software might come even before what's going to be a final certified solution. But to your point, yeah, we are not seeing anything different either on that side. There was an early question on operations. Same with operations. Actually, FAA is supposed to issue the start-up The conditions end of this summer, just to clarify a bit more on my last comment. They have already published the CONOPS last week. So, so far, it has been in line with the discussions we had before. That's not by coincidence. It's exactly 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.
spk04: Excellent. Thank you very much.
spk07: Thank you. The next question comes from the line of Marcelo Mata of JP Morgan. Please go ahead.
spk09: Hi, everyone. Thank you very much for taking my question. I have a couple of follow-ups in a sense. I mean, first, if there is anything that you guys would like to comment about, you know, sales campaign. I mean, I know that the focus is more on, you know, on getting the prototype up and running, you know, select the supplies, but just wondering if, you know, if there is a possibility of seeing, you know, new orders or, you know, new partners maybe on the supply selection that would come up with, uh, to be added to the backlog. And the second question is regarding liquidity. I mean, as I do mention, you know, the company is in a very comfortable position until 2025. You know, there is a BNDS standby line. But just wondering if you guys have been looking for, you know, maybe another source of cheap funding, you know, funds related to renewables, to EV. So if we could expect you guys to continue to add more standby lines, you know, just to take advantage of... you know, of the ramp up of the company. Thank you.
spk13: On the first one, let me get the first one and then pass to Jerry and Edu. The short answer is yes. We, even though the big focus it is on getting a backlog we have and really streamline the operation, how it be and so on, we might expect to see a few more orders that are strategic customers that we are working with. throughout this year. We don't expect to put a lot of focus on just purely increasing the backlog, so it's more about strategic orders, strategic partners that can come along.
spk08: With regard to funding, as we've talked about before, and Edu can talk in detail, this year we 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 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, PDPs, 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 this year, we have a number of very significant options open to us, you know, with a pretty clean balance sheet and the ability with, you know, a $2 billion market cap to also leverage the capital markets if we'd like to. So, Edu, you want to talk about that a little bit?
spk10: Just to add one thing, Gary. The short-term focus is really the standby facility with the Brazilian Development Bank, right? We still need to access that. We have $100 million there available for us. We are working to make sure we start to withdraw this money now in the beginning of the second half.
spk11: So the big focus is make sure we access the Brazilian Development Bank money that we already have available.
spk05: Oh, perfect. Super clear. Thank you very much.
spk07: Thank you. Our next question comes from Marvin Fong of BTIG. Please go ahead.
spk12: Thank you. All my questions were answered, actually. Thank you.
spk07: Thank you. That was our final question. We'll send the call back over to our speakers for any closing remarks.
spk08: All right. 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 in the not-too-distant future.
spk07: Thank you. Does that conclude the conference?
spk12: Oh, that's all right. Thank you. Just say goodbye then. But thanks for joining us today.
spk07: 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 good day.
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