Archer Aviation (ACHR) - 2025 Q1 - Quarterly Report

Revenue Generation - Archer has not generated significant revenue from its planned lines of business, which include commercial aircraft sales and defense applications[148] - The company is currently experiencing negative cash flows from operations due to ongoing development of its eVTOL aircraft, with no revenues generated from planned business lines[169] Research and Development - Research and development expenses increased by $20.2 million, or 24.2$18.4 million, or 31.3%, for the same period, mainly due to a reduction in stock-based compensation expenses[158] - Other income, net increased by $21.4 million for the three months ended March 31, 2025, primarily due to changes in fair value of warrant liabilities[159] - Interest income, net rose by$3.4 million, or 64.2%, for the three months ended March 31, 2025, attributed to increased cash and cash equivalents[160] Cash and Liquidity - As of March 31, 2025, Archer had cash and cash equivalents of $1,030.4 million, sufficient to meet its requirements for at least the next 12 months[161] - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling$1,036.9 million[181] - The company expects to finance its cash needs primarily through existing cash, equity financing, and debt financing until it can generate significant revenue[166] Capital Expenditures and Financing - Archer entered into a credit agreement for up to $65.0 million for the construction and development of its manufacturing facility, with interest-only payments for the first 36 months[162] - The company raised approximately$289.5 million from a registered direct offering of 35,500,000 shares of Class A common stock in February 2025[165] - Net cash provided by financing activities for Q1 2025 was $300.2 million, driven by gross proceeds from a registered direct offering of$301.8 million[176] - Net cash provided by financing activities for Q1 2024 was $44.8 million, driven by proceeds from shares issued under the ATM Program of$33.9 million[177] Operating Activities - Net cash used in operating activities for Q1 2025 was $94.6 million, resulting from a net loss of$93.4 million, adjusted for non-cash items including a gain of $41.7 million from warrant liabilities[170] - Net cash used in operating activities for Q1 2024 was$86.5 million, resulting from a net loss of $116.5 million, adjusted for non-cash items including$40.7 million in stock-based compensation[171] Investing Activities - Net cash used in investing activities for Q1 2025 was $10.0 million, primarily due to purchases of property and equipment[172] - Net cash used in investing activities for Q1 2024 was$17.3 million, also driven by purchases of property and equipment[175] Capital Investment Strategy - The company is investing in capital expenditures to enhance aircraft manufacturing capabilities and support airline operations[173] - The company has established guidelines for diversification of investments to preserve principal and achieve liquidity requirements[182]