2022 Q2 Form 10-Q Financial Statement

#000162828022022259 Filed on August 10, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 Q1 2021 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $42.20M $37.60M $33.49M
YoY Change 46.61% 74384.94% 47779.91%
% of Gross Profit
Research & Development $37.80M $27.50M $19.30M
YoY Change 231.58% 172.28%
% of Gross Profit
Depreciation & Amortization $700.0K $600.0K $500.0K
YoY Change 133.33% 200.0%
% of Gross Profit
Operating Expenses $80.20M $65.30M $53.30M
YoY Change 137.28% -31.19% 23347.12%
Operating Profit -$80.20M -$65.30M
YoY Change 137.28% -31.19%
Interest Expense $500.0K $400.0K -$500.0K
YoY Change -607.2%
% of Operating Profit
Other Income/Expense, Net $8.000M $6.500M $10.50M
YoY Change -197.96%
Pretax Income -$71.70M -$59.20M -$43.30M
YoY Change 117.93% -37.62% 299.15%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$71.70M -$59.20M -$43.30M
YoY Change 117.93% -37.62% 299.15%
Net Earnings / Revenue
Basic Earnings Per Share -$0.30 -$0.25
Diluted Earnings Per Share -$0.30 -$0.25 -$180.2K
COMMON SHARES
Basic Shares Outstanding 238.1M shares 239.8M shares
Diluted Shares Outstanding 238.1M shares 239.8M shares

Balance Sheet

Concept 2022 Q2 2022 Q1 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $654.8M $704.2M $746.9M
YoY Change 220089.66% 158065.44% 80565.72%
Cash & Equivalents $654.8M $704.2M $746.6M
Short-Term Investments $0.00
Other Short-Term Assets $1.400M $400.0K $300.0K
YoY Change 456.37% 0.76%
Inventory
Prepaid Expenses $10.10M $9.300M $7.600M
Receivables
Other Receivables
Total Short-Term Assets $669.2M $716.8M $754.8M
YoY Change 121793.47% 85007.6% 1918.18%
LONG-TERM ASSETS
Property, Plant & Equipment $8.300M $5.900M $5.900M
YoY Change 268.75%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.200M $2.100M $2.700M
YoY Change 1427.3%
Total Long-Term Assets $22.00M $21.10M $13.60M
YoY Change -95.6% -95.78% 209.09%
TOTAL ASSETS
Total Short-Term Assets $669.2M $716.8M $754.8M
Total Long-Term Assets $22.00M $21.10M $13.60M
Total Assets $691.2M $737.9M $768.4M
YoY Change 38.03% 47.29% 1738.28%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.000M $1.800M $3.400M
YoY Change 2476.76% 1419.95% 61.9%
Accrued Expenses $32.30M $23.00M $15.40M
YoY Change 337.89% 459.13% 31968.64%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $9.400M $9.500M $9.500M
YoY Change 1483.33%
Total Short-Term Liabilities $43.70M $34.30M $28.30M
YoY Change 456.17% 700.37% 644.74%
LONG-TERM LIABILITIES
Long-Term Debt $4.700M $7.000M $9.300M
YoY Change 3000.0%
Other Long-Term Liabilities $1.000M $300.0K $400.0K
YoY Change -97.38% -99.34% 33.33%
Total Long-Term Liabilities $5.700M $7.300M $9.700M
YoY Change -85.09% -83.88% 1516.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $43.70M $34.30M $28.30M
Total Long-Term Liabilities $5.700M $7.300M $9.700M
Total Liabilities $73.00M $74.20M $69.50M
YoY Change 58.41% 49.7% 1077.97%
SHAREHOLDERS EQUITY
Retained Earnings -$504.5M -$432.8M -$373.6M
YoY Change 1009.25% 787.83% 1348.06%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $618.2M $663.7M $698.9M
YoY Change
Total Liabilities & Shareholders Equity $691.2M $737.9M $768.4M
YoY Change 38.03% 47.29% 1738.28%

Cashflow Statement

Concept 2022 Q2 2022 Q1 2021 Q4
OPERATING ACTIVITIES
Net Income -$71.70M -$59.20M -$43.30M
YoY Change 117.93% -37.62% 299.15%
Depreciation, Depletion And Amortization $700.0K $600.0K $500.0K
YoY Change 133.33% 200.0%
Cash From Operating Activities -$45.60M -$36.80M -$48.90M
YoY Change 9483.25% 206.67% 8595.5%
INVESTING ACTIVITIES
Capital Expenditures -$1.500M $600.0K -$500.0K
YoY Change -45.45%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$1.500M -$600.0K -$500.0K
YoY Change -5460.97% -45.45% -99.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $2.500M
YoY Change
Cash From Financing Activities -2.300M -$2.400M 100.0K
YoY Change -866.67% -99.98%
NET CHANGE
Cash From Operating Activities -45.60M -$36.80M -48.90M
Cash From Investing Activities -1.500M -$600.0K -500.0K
Cash From Financing Activities -2.300M -$2.400M 100.0K
Net Change In Cash -49.40M -$39.80M -49.30M
YoY Change 33312.24% 203.82% -6419.46%
FREE CASH FLOW
Cash From Operating Activities -$45.60M -$36.80M -$48.90M
Capital Expenditures -$1.500M $600.0K -$500.0K
Free Cash Flow -$44.10M -$37.40M -$48.40M
YoY Change 185.5%

Facts In Submission

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Organization and Nature of Business<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Organization and Nature of Business</span></div><div style="text-indent:18pt"><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Archer Aviation Inc. (the “Company,” “we,” “us” or “our”), a Delaware corporation, with its headquarters located in San Jose, California, is an aerospace company. The Company’s mission is to advance the benefits of sustainable air mobility. The Company’s goal is to move people throughout the world’s cities in a quick, safe, sustainable, and cost-effective manner. To accomplish this goal, the Company is designing and developing an electric vertical takeoff and landing (“eVTOL”) aircraft for use in future urban air mobility (“UAM”) networks.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">The Company’s Planned Lines of Business </span></div><div><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Upon receipt of all necessary Federal Aviation Administration (“FAA”) certifications and any other government approvals necessary for the Company to manufacture and operate its aircraft, the Company intends to operate two complementary lines of business. The Company’s core focus is direct-to-consumer (“Archer UAM”) with its secondary focus being business-to-business (“Archer Direct”). </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Archer UAM</span></div><div><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> The Company plans to operate its own UAM ecosystem initially in select major U.S. cities, such as Los Angeles and Miami. The Company’s UAM ecosystem will operate using its eVTOL aircraft, which is currently in development. </span></div><div style="text-indent:18pt"><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Archer Direct</span></div><div><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company also plans to selectively sell a certain amount of its eVTOL aircraft to third parties. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Business Combination</span></div><div style="text-indent:18pt"><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On September 16, 2021 (the “Closing Date”), Archer Aviation Inc., a Delaware corporation (prior to the closing of the Business Combination (as defined below), “Legacy Archer”), Atlas Crest Investment Corp., a Delaware corporation (“Atlas”), and Artemis Acquisition Sub Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Atlas (“Merger Sub”), consummated the closing of the transactions contemplated by the Business Combination Agreement, dated February 10, 2021, as amended and restated on July 29, 2021, by and among Atlas, Legacy Archer and Merger Sub (the “Business Combination Agreement”), following approval at a special meeting of the stockholders of Atlas held on September 14, 2021. Unless otherwise specified or unless the context otherwise requires, references in these notes to Legacy Archer refer to Archer prior to the Business Combination and references in these notes to “New Archer” refer to Archer following the Business Combination. </span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to the terms of the Business Combination Agreement, a business combination of Legacy Archer and Atlas was effected by the merger of Merger Sub with and into Legacy Archer, with Legacy Archer surviving the merger (the “Surviving Entity”) as a wholly-owned subsidiary of Atlas (the “Merger,” and, collectively with the other transactions described in the Business Combination Agreement, the “Business Combination”). Following the consummation of the Merger on the Closing Date, the Surviving Entity changed its name from Archer Aviation Inc. to Archer Aviation Operating Corp., and Atlas changed its name from Atlas Crest Investment Corp. to Archer Aviation Inc. and it became the successor registrant with the U.S. Securities and Exchange Commission (the “SEC”). Prior to the closing of the Business Combination, the Class A common stock and public warrants of Atlas were listed on the New York Stock Exchange (“NYSE”) under the symbols “ACIC” and “ACIC WS,” respectively. New Archer Class A common stock and public warrants are currently listed on the NYSE under the symbols “ACHR” and “ACHR WS,” respectively.</span></div><div><span><br/></span></div><div style="text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The financial statements included in this Quarterly Report on Form 10-Q reflect (i) the historical operating results of Legacy Archer prior to the Business Combination; (ii) the combined results of Atlas and Legacy Archer following the closing of the Business Combination; (iii) the assets and liabilities of Legacy Archer at their historical cost; and (iv) the Company’s equity structure for all periods presented.</span></div>The Ongoing COVID-19 PandemicIn March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The rapid spread of COVID-19 caused volatility and disruption in financial markets and prompted governments and businesses to take unprecedented measures such as travel restrictions, quarantines, shelter-in-place orders, and business shutdowns. The impact of the ongoing COVID-19 pandemic continues to evolve due to, among other reasons, the emergence of additional variants or strains of COVID-19. As such, the full magnitude of the ongoing COVID-19 pandemic’s effect on the Company’s financial condition, liquidity, and future results of operations is uncertain. Management continues to actively monitor the Company’s financial condition, liquidity, operations, suppliers, industry, and workforce, but currently does not anticipate any material impairments as a result of the ongoing COVID-19 pandemic and will continue to evaluate the impact of the ongoing COVID-19 pandemic.
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EffectiveIncomeTaxRateContinuingOperations
0
CY2022Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0
us-gaap Defined Contribution Plan Employer Matching Contribution Percent Of Match
DefinedContributionPlanEmployerMatchingContributionPercentOfMatch
0.50
CY2022Q2 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
500000 usd
us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
1000000 usd
CY2021Q2 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
100000 usd
us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
300000 usd

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