In its fourth-quarter and full-year earnings call Monday, eVTOL manufacturer Archer Aviation (NYSE: ACHR) said it ended Q4 2021 with $746.9 million in cash and cash equivalents.
In a statement, Archer said, “The importance of certification is ingrained in Archer’s DNA,” and that the capital will be critical for earning its Part 135 certification on its Maker vehicle by 2024.
The company is planning its initially-piloted aircraft to be fixed-wing, battery-powered, and mass-produced. These characteristics also underlie the four-business segment with which the company hopes to drive its success.
With this in mind, Brett Adcock, co-founder and co-CEO, explained the nuances that came with developing this new industry, perhaps to ease shareholders’ concerns regarding progress.
“Bringing a new product and a new industry to market is complicated and challenging,” Adcock said. “This is why we have simplified our business roadmap into four key business areas. These four areas will define success in our industry and dictate the milestones [to] which Archer holds itself most accountable.”
As for tangible progress on its vehicle, in December 2021, the Maker aircraft completed its first hover test, which allowed the company to complete a series of assessments, from flight controls to acoustics. Furthermore, the company said it was going through various stages to develop its production aircraft. In December, the company said it conducted critical wind tunnel tests on the tilter (forward) and lifter (aft) propulsion units.
The company said revenues reached $53.3 million for the fourth quarter and attributed that to “investment in people, materials, and infrastructure” for its four-year business plan. For all of 2021, Archer said its revenue reached $358.3 million.
Wisk Lawsuit Update
The company also managed to stave off at least one lawsuit after its competitor, Wisk Aero, sued one of Archer’s employees, Jing Xue, alleging theft of trade secrets. In January 2022, the U.S. Attorney’s Office decided not to bring criminal charges against Xue.
Still, Archer will also have to argue against the same claims in a civil suit in the United States District Court for the Northern District of California in January 2023.
Expectations for 2022
For the first quarter of 2022, Archer expects revenue to reach between $58 and $64 million thanks to more stock-based compensation and warrants worth $25 million. United Airlines (NASDAQ: UAL) and Stellantis (NYSE: STLA) are warrant holders.
As one of the only eVTOL makers who earned the FAA G-1 Issue paper (the other being Joby (NYSE: JOBY), Archer could be one of the first advanced air mobility companies to market.
The company says its focus for 2022 will be earning the G-2 paper, which the FAA uses to set forth the means of compliance to meet the certification program outlined in the G-1 paper. The company is also finding a manufacturing site and narrowing its list down from nearly 200 options. It expects to announce the location and begin construction later this year.
Following the call, which happened at the closing, Archer’s share price was down as much as 9 percent to $2.90. Since the company went public in September 2021 via a SPAC-IPO, share prices are 70 percent off its $9.48 opening price.
