Good morning, welcome to the Eve Air 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 one followed by the four 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 Lucio Aldworth, Head of Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve. I wanted to welcome everyone to our first quarter 2023 earnings conference call. I have here with me co-CEOs Jerry DeMuro and André 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. 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, continues, anticipates, intends, expects, and similar words are intended to identify forward-looking statements. We undertake 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. Jerry?
Thanks, Lucio. Good morning. 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. 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. We expect approval by the end of the year.
We progressed negotiations with our suppliers on both technical and commercial terms. Our expectation is to close with suppliers of critical subsystems by the end of this quarter. We continued the extensive testing program with wind tunnel tests of different configurations and components. 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. 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. 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.
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. 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 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. 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 we have a zero emission aircraft, but we are minimizing carbon emissions throughout the entire cycle of the aircraft. 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 strengthens our offer, particularly for the airport shuttle market. On to slide five now. 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, implications for community, energy, ground service, and passenger flow for a seamless experience. This type of event helps us and our partners diagnose potential pain points and yields findings for us to come up with solutions.
In this experience, specifically, among other discussions, we've simulated passenger flow from boarding to deboarding using our cabin mock-up. This gave participants a glimpse of what is necessary to use passenger flow and improve the overall experience. This is unique to Eve, 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, Eve is uniquely positioned in the urban air mobility market. 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 Urban Air Traffic Management, business development, and customer experience. They offer some insights into their specific areas. We also opened 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 seven 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 main lines 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 reflect the state-of-the-art value proposition we bring to our partners and their clients. 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 consumptions in the years to come as we start to convert existing Letters of Intent 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 challenge 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, Stein. 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 highlights. We invested almost $22 million during the first quarter 2023 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 in 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 Eve and Embraer teams dedicated to the eVTOL development have been growing as the program evolves. We've 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. 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.
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. We'll also 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. We estimate a total cash consumption in 2023 between $130 million and $150 million. With that, we conclude our remarks. I would like to open the call for questions. Operator.
Thank you. Ladies and gentlemen, if you would like to register a question or comment, please press the one followed by the four 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 Savanthi Syth of Raymond James. Please go ahead.
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.
Good morning, Savi, 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? 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. Each of those conditions kind of varies depending on the product offering. Stein, you want to add anything to that?
Not much. I think that's the point. As you said, Savi, we are in the final stage, so much you can actually disclose at this point. I think we're on a good track. As Jerry said, there are different challenge throughout the selection process, and as we've learned 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.
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 do you plan on building in 23 and 24? And just curious, I'm guessing there's gonna 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. Any color on that, be appreciated.
Yeah. Savi, 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. 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?
Yeah. As Jerry said, it increased. That actually is the very reason why we focus on the building blocks and really define and mature the, the solution, the overall engineering project before moving to full-scale prototypes. We don't go back. The further we go down the program, more expensive it becomes, not only because of the prototypes, but the amount of labor becomes more intensive as we move along the, the project. 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.
We do plan to increase that, following on of the maturing of the project.
Appreciate it. Thank you.
Just to add 1 point here in time. It's still here, Savi.
It is.
I think that's already reflected in our projections for the year, right? We burned $20 million.
Yeah
In the first quarter, if you look the full year, we're expecting $130-$150. There will be a pickup in our, you know, expenses throughout the year, and part of that comes from this non-recurrence as well.
Makes sense. All right. Thank you.
Thank you. The next question comes from Cai von Rumohr of Cowen. Please go ahead.
Good morning, excuse me for the cold I've got. Jerry, as you know, Billy Nolen of the FAA is about to retire, and sometimes it takes a while to get another administrator into the seat. 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?
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 gonna slow the emphasis on moving forward with eVTOL certification. You know, government organizations are government organizations and the tops, you know, the administration nominees change from time to time. That's kind of routine. You know, the working population basically stays in place and continues to do the work that we ask them to do as civil servants. I think that case will be the same here.
In terms of, you know, 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. Stein, you know, in the detailed discussions, have we seen any change at all? I'm not aware of any.
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. You are right when you said that any small bump because we need to realign within FAA affects us a bit less as you, as our primary certification organization is ANAC.
Got it. Excuse me. Last one, what still has to be defined in terms of operating requirements? I know that the FAA basically, I think is getting closer in terms of what they're gonna require for type cert. What, for operating, what are the key issues that you think they still have to define to kind of get the operating requirements set?
You are absolute correct on that assumption. 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 121 operators, that helps. That helps understanding what, 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 development of the aircraft itself. So we are planning for the highest standards. That definitely helps for future requirements. And we have been following that very closely, as are our operators.
Thank you.
Thank you.
The next question comes from Sheila Kahyaoglu of Jefferies. Please go ahead.
Thank you and good morning, everyone. 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 sting mount testing? You know, how is the design progressing as we think about first flight in 2024?
As we've talked about, you know, we are refining the final details of the design based on the technical information from suppliers on size, weight, you know, volume, that sort of thing. 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, you know, any refinements that we put in there. Stein, you wanna talk about the next few steps, few months?
When you're talking about the next development phase, things like Joint Definition Phase, where we go together with the 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 we are mature enough to select not only the right supplier, but with the right specs. That helps the next stage. 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 models of the batteries, the, with the flight control computer. We have a good understanding already on know where the options are and how we're gonna be able to integrate that. It's really about detailing and fine-tuning the product.
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?
Well, we 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. It is something that we are used to. It's in the table as well. It's all about what is the best combination between funding and recurring costs and and the actual costs of the other product later on. It's a balance. It will be a different balance with different suppliers. I think it's progressing well at this point.
Okay, great. Thank you so much.
Maybe I would comment, Stein. The suppliers...
Sure.
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 funding, you know, needs that the OEMs have. I think they are gonna be willing to put skin in the game.
Okay.
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, that will color 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. Again, as Stein has 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.
Great. Thank you guys.
Yeah.
Thank you. As a reminder, via the phone lines, you may press the one followed by the four if you would like to register a question or comment. Once again, that is the one followed by the four. Our next question comes from Andres Sheppard of Cantor Fitzgerald. Please go ahead.
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 gonna be placed on converting that order pipeline of the 2,770 LOIs into firm orders. 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.
Sure.
Sure.
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 wanna talk about that team process?
Sure. The whole focus right now it's moved beyond any hype and really nail down where the cities will be, where the operators wanna 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, what is the origin destination from passengers even, so we can build up the network, understand the number of aircraft or eVTOLs that are necessary to comply with network, 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 gonna be deploying the aircraft. We have been through this process, since the beginning of the year. To your point, there are quite a bit of progress.
We don't expect any announcement of converting that necessarily soon exactly because we wanna like we are doing with the aircraft development actually, we wanna mature the decision. We wanna work together to figure out even the support we need to starting the plan for investment and support where you can leverage Embraer infrastructure as well and put all that together. That's the development that's happening this year. Quite a bit of progress. We do have good visibility on quite a few potential launch cities with the respective network. The respective combination of potential partners in terms of infrastructure, energy, and so on. Also what the solution for service and support might be for that particular location.
Got it. That's very. Thanks, Jerry and André. Thanks so much. Maybe one last question for Edu. I know this was covered previously, but just help me better understand. The cash spend for the quarter was below $20 million, and you're reaffirming $130 million-$150 million. 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, as we were discussing, right, André Stein? We continue to ramp up our engagement. We are concluding now the supplier selection. On the second half, we're gonna start the works related to the assembly of the first prototype. 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. Definitely, you know, if you look some of the accrued expenses, if you look the master service agreement we have with Embraer, now we're gonna have $60 million to pay now in the middle of May. There will be higher payments in the upcoming quarters.
That's the reason we are anticipating this t-20, which would annualize $80, ready to grow throughout the year and be between $130 and $150. Okay?
Got it. Okay. Thanks very much, everyone. Congrats again on the quarter. I'll pass it on. Thank you.
Thank you. Once again, as a reminder, you may press for one four if you would like to register a question. The next question is a follow-up from Savi Syth of Raymond James. Please go ahead.
Hey, thanks for the follow-up. Just, actually two. First, just, following up on André's question, I, I realize that you're gonna 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, kinda in conjunction with your certification? Is that more like a second half 2024 type timing?
Mm-hmm.
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.
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 pusher, pushers, and the battery, really the energy solution, we consider them G-0. 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 will follow shortly thereafter. We really expect here, you know, within the next 30-45 days to nail down most of those, and we'll be prepared to announce who they are. Stein, anything you wanna add to that?
No, it's pretty much the vast majority, the main ones we are getting to the final stages of the selection process like, as Jerry said, batteries and so on. We do expect pretty much everything to be select throughout this year. For next year, just some smaller items, things like interiors as well, cabins, airframes, and so on. We have the vast majority of our craft covered and selected this year.
That's helpful.
Savi, 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.
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.
Uh-
This is super helpful as well.
Okay. No, this I think, as I said, we are in good shape. We do have a few cities in that are likely to be the early ones. When I say that, it's because both the operator. By the end of the day, we are not the operator, it is our customers. It's up to our customers to select in which market they will start. 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 vertiports, for example, to the same discussion. We do have a few cities in the pipeline. Stay tuned. That probably we'll be able to disclose before the final agreement with customers.
Okay. Interesting. Then just one last question. You know, I was curious regarding the urban ATM solution. You know, the evolution of kinda FAA's initial blueprint for kinda air taxi operations, how does that compare to your expectations on the kind of the timing and need for that urban ATM kinda solution that you're providing?
I think it's pretty in line. When we're talking about the Urban Air Traffic Management software, it applies for both the air navigation service providers, the PSUs, but also the vertiports, the operators. All of them have applications. Some of them need to be certified, some of them.
Mm-hmm
...they are more optimization software solutions really that do not require certification necessarily.
Mm-hmm.
That ones we do expect to have earlier on. We, 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 gonna 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 urban traffic management software to, for trials and so on. Some of the blocks, the building blocks and the functionalities of the software might come even before what's gonna be a final certified solution. To your point, yeah, it's, we are not seeing anything different either on that side. There was a question, an early question on operations.
Same with operations. Actually, FAA is supposed to issue the startup, the conditions end of this summer, just to clarify a bit more on my last comment. They have already published the ConOps a couple last week. 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.
Makes sense. Thank you very much.
Thank you. The next question comes from the line of Marcelo Motta of JP Morgan. Please go ahead.
Hi, everyone, and thank you very much for taking my question. 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 suppliers, 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 to be added to the backlog. 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 BNDES standby line.
just wondering if you guys have been looking for, you know, maybe another sources of cheap funding, you know, funds related to renewables, to EV. 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.
On the first one, let me get the first one and then pass to Jerry and Edu. The short answer is yes. Even though the big focus is on getting the 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 throughout this year. We don't expect, but a lot of focus on just purely increasing the backlog, so it's more about strategic orders, strategic partners that can come along. Edu, you wanna...
Yeah.
Jerry, go ahead.
...with regard to funding, as we've talked about before, Edu can talk in detail, this year, you know, we put ourselves in a very comfortable position. We can be, as you suggest, opportunistic. Frankly, if you have a source of cheap funding, as you're suggesting, we're certainly always open to brilliant ideas there. 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.
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 a, you know, a $2 billion market cap to also leverage the capital markets if we'd like to. Edu, you wanna talk about that a little bit?
No, just to add one thing, Jerry. The short term focus is really the standby facility with the
Yeah
...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. The big focus is make sure we access the Brazilian Development Bank money that we already have available.
Oh, perfect. Super, super clear. Thank you very much.
Thank you. Our next question comes from Marvin Fong of BTIG. Please go ahead.
Thank you. All my questions were answered, actually. Thank you.
Thank you. That was the last question.
Thanks, Marvin.
I'll turn the call back over to our speakers for any closing remarks.
All right. Well, thank you all for attending. 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. We look forward to talking to you again in the not too distant future.
Thank you.
Absolutely.
This does conclude the conference.
So-
Oh, please.
Oh, no, that's all right.
Thank you.
Just to say goodbye then. Thanks for joining us today.
Thank you. This does conclude the conference for today. We thank you for your participation, and I'll thank you. Please disconnect your lines. Thank you and have a good day.