LONDON--(BUSINESS WIRE)--Vertical Aerospace (Vertical) [NYSE: EVTL], a global aerospace and technology company that is pioneering zero emissions aviation, entered into an investment agreement with its founder, majority shareholder and Chief Executive Officer, Stephen Fitzpatrick, in respect of a commitment by Mr. Fitzpatrick to provide up to $50 million of funding to the company in the form of an equity investment. This follows the January 21, 2024 previously announced legally binding termsheet agreement re ...

LONDON & NEW YORK--(BUSINESS WIRE)--Vertical Aerospace (Vertical) [NYSE: EVTL], a global aerospace and technology company that is pioneering zero emissions aviation, today announces it has been awarded £8 million ($10 million) in grant funding by the UK Government, through the Aerospace Technology Institute (ATI) Programme, to develop its next-generation propellers for use on its VX4 aircraft. The project is the third awarded to Vertical by the ATI Programme and brings total UK Government grant funding t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECT ...

Aircraft Development and Market Potential - The company aims to complete certification of its VX4 eVTOL aircraft and commence manufacturing in 2025, with first deliveries expected in that year [461]. - The VX4 aircraft is designed to transport a pilot and up to four passengers over distances exceeding 100 miles at speeds over 200 mph, producing zero operating emissions [448]. - The urban air mobility market is projected to grow to a total addressable market size of $1 trillion by 2040, indicating significant growth potential for the company [464]. - The company is actively pursuing certification from the CAA and EASA, which is expected to occur concurrently, facilitating global sales efforts [449]. - The company plans to develop a sophisticated eVTOL ecosystem, focusing on high-quality user experiences and system integration [450]. - The company is targeting a sales pipeline from over 5,000 airlines worldwide, leveraging partnerships to expand its market presence [462]. Financial Performance and Projections - The company expects to incur a net increase in cash of approximately $286 million as a result of its Business Combination with Broadstone [459]. - Revenue increased by £45 thousand, or 52%, from £87 thousand in 2020 to £132 thousand in 2021, primarily due to increased activity by VAEL [483]. - The company incurred a net loss of £245,224 thousand in 2021, compared to a net loss of £12,326 thousand in 2020, reflecting a 1,889% increase in losses [501]. - Total finance costs amounted to £32,015 thousand in 2021, a significant increase from a net finance income of £807 thousand in 2020, indicating a 4,067% change [481]. - The company expects to require approximately $450 million from the Business Combination to achieve profitability by 2025, with $130 million needed within the next 12 months for prototype aircraft development and certification [502][503]. Expenses and Cash Flow - Research and development expenses rose by £14,320 thousand, or 144%, from £9,971 thousand in 2020 to £24,291 thousand in 2021, driven by increased research and testing activities related to aircraft [487]. - Administrative expenses surged by £260,500 thousand, or 6,928%, from £3,760 thousand in 2020 to £264,260 thousand in 2021, largely due to share-based payment expenses related to the Business Combination [488]. - Other operating income increased by £9,035 thousand, or 390%, from £2,317 thousand in 2020 to £11,352 thousand in 2021, with government grants contributing £8,829 thousand and R&D tax credits totaling £2,388 thousand [490]. - Net cash used in operating activities increased by £15,538 thousand, or 130%, from £12,012 thousand in 2020 to £27,550 thousand in 2021, primarily due to increased R&D spending [517]. - Net cash used in investing activities rose by £2,666 thousand, or 387%, from £688 thousand in 2020 to £3,354 thousand in 2021, mainly due to the acquisition of intangible assets [518]. - Net cash from financing activities surged by £232,203 thousand, or 1,856%, from £12,510 thousand in 2020 to £244,713 thousand in 2021, driven by proceeds from the Business Combination and PIPE Financing [519]. Capital Requirements and Funding - Future capital requirements will depend on factors such as R&D expenses, capital expenditures for manufacturing, and general administrative expenses as operations scale [504]. - The company had cash and cash equivalents of £212,660 thousand as of December 31, 2021, indicating a need for ongoing funding to cover operating expenses and planned capital expenditures [501]. - The company issued Convertible Senior Secured Notes with an aggregate principal amount of $200,000,000, sold for a purchase price of $192,000,000, and issued 4,000,000 warrants at $11.50 per share [510]. - The Convertible Senior Secured Notes are convertible into up to 18,181,820 ordinary shares at an initial conversion rate of 90.9091 shares per $1,000 principal amount [511]. - The Convertible Senior Secured Notes bear interest at 7.00% per annum if paid in cash or 9.00% if paid in-kind, with an additional 2.00% added during an event of default [513]. Internal Controls and Compliance - The company identified material weaknesses in internal control over financial reporting due to insufficient trained professionals, affecting the design and maintenance of controls [748]. - Remediation activities include hiring additional accounting staff and utilizing external specialists for complex accounting matters [750]. - The company is in the process of implementing an enterprise resource planning system to enhance internal controls over financial reporting [751]. Impact of External Factors - The company is monitoring the impact of the COVID-19 pandemic and the war in Ukraine on its operations, supply chain, and costs [454][458].