Eve Holding, Inc. — FY2023 Form 10-K
Reporting period: Fiscal year ended December 31, 2023. This is an annual report, not a standalone fourth-quarter earnings report. Eve is a pre-revenue aerospace developer focused on eVTOL aircraft, related services and urban air traffic management (UATM), with operations in the United States and Brazil.
Financial and operating results
| Metric | FY2023 | FY2022 |
|---|---|---|
| Revenue | None | None |
| Research and development expense | $105.6 million | $51.9 million |
| Selling, general and administrative expense | $23.1 million | $32.9 million |
| Loss from operations | $130.5 million | $189.5 million |
| Net loss | $127.7 million | $174.0 million |
| Net loss per share, basic and diluted | $0.46 | $0.68 |
| Cash used in operating activities | $94.5 million | $59.5 million |
- Gross profit and operating margins are not applicable because the company has not generated revenue.
- At year-end, cash and cash equivalents were $46.9 million and financial investments were $111.2 million. Eve also reported an $83.0 million related-party loan receivable from Embraer Aircraft Holding (EAH).
- Debt principal outstanding under BNDES facilities was $26.1 million; carrying value after issuance costs was $25.8 million. A further approximately $75.1 million was available to draw, subject to loan terms and conditions.
- Management reported total liquidity of approximately $316.3 million, including cash, financial investments, the EAH loan receivable and undrawn BNDES availability, and expected it to fund the current operating plan for at least 12 months.
- Total assets were $245.3 million, total liabilities $80.3 million and equity $165.1 million at December 31, 2023.
Changes versus FY2022
- R&D expense rose $53.7 million, or 104%, mainly due to increased engineering headcount and services, prototype development, and purchases of components and supplies.
- SG&A fell $9.8 million, or 30%, primarily because 2022 included non-recurring IPO-related legal, consulting and marketing costs.
- New warrant expense fell $102.9 million to $1.9 million, largely reflecting the non-recurring warrants issued in connection with the 2022 business combination; 2023 expense related to contingencies being met.
- Operating cash use increased by $35.1 million, reflecting higher R&D spending, partly offset by higher accounts payable to Embraer.
- Net loss narrowed by $46.4 million, though FY2023 included a $10.4 million loss from remeasurement of private placement warrant liabilities, compared with a $9.5 million gain in FY2022.
Outlook, risks and notable items
- Management anticipates initial service-and-support and UATM revenue in 2025, and eVTOL deliveries and related aircraft revenue beginning in the latter half of 2026. These are plans, not assurances; delays or failure to certify could push out or prevent commercialization.
- The disclosed pipeline is 2,850 vehicles valued at $8.6 billion from 29 launch customers, but agreements are non-binding and may change. Eve has not delivered eVTOLs to customers.
- ANAC accepted Eve’s type-certificate application in 2022 and published proposed airworthiness criteria for public consultation in December 2023. Eve still must obtain required aircraft, production and operational approvals; the filing does not report completed certification.
- Eve relies substantially on Embraer for engineering, development, administrative support and planned manufacturing, and on third parties for components, infrastructure and operations. Related-party R&D and SG&A charges totaled $75.8 million in 2023.
- Funding remains a key risk: the company expects continuing losses and negative operating cash flow, and says current resources may not fund all development and commercial-launch needs. Additional financing could be unavailable or dilute shareholders, or impose restrictive debt terms.
- Other principal risks include the unproven UAM market, consumer adoption and affordability, certification and production execution, safety and cybersecurity, battery and autonomy development, competition, weather and utilization constraints, and exposure to Brazilian economic, currency and political conditions.
- Warrants and equity awards may dilute shareholders. The filing reports 37.4 million New Warrants outstanding at year-end, in addition to public and private placement warrants.
- Management concluded disclosure controls and internal control over financial reporting were effective at year-end and said previously reported material weaknesses had been remediated. The financial statements received an unqualified audit opinion; the auditor did not provide an ICFR attestation.
- No material legal proceedings were reported. The filing also notes the company has no history of revenue and expects continued losses; no dividends are anticipated for the foreseeable future.
Important facts for investors to verify
- Whether the reported $316.3 million liquidity estimate is available as assumed, including conditions on BNDES draws and repayment risk on the EAH related-party loan.
- Progress and timing of ANAC, FAA and EASA certification, prototype testing, production approval and the targeted 2025–2026 commercialization schedule.
- Conversion of the non-binding 2,850-vehicle pipeline into binding, financeable orders, and the assumptions behind its $8.6 billion stated value.
- Future cash burn, development costs and financing requirements, including potential equity dilution and warrant exercises.
- Execution and cost implications of reliance on Embraer and other related parties, suppliers and ecosystem partners.