What Eve Holding, Inc. told the SEC could break it.

Eve is a pre-revenue, development-stage eVTOL company whose future funding requirements depend on the pace and results of its development efforts and will be met through a combination of existing cash, public offerings, private placements and debt financings; its principal committed debt — two BNDES lines of credit to Eve Brazil aggregating R$490 million for electric-motor/eVTOL development — is available only subject to BNDES rules and the delivery of guarantee letters from approved financial institutions, so a funding shortfall or inability to satisfy financing conditions could delay or halt its certification and production program.

“The amount and timing of future funding requirements will depend on many factors, including the pace and results of development efforts.”

Eve's eVTOL is subject to regulation in Brazil, the U.S., the EU and every jurisdiction where its customers are located: ANAC (its primary certification authority, under a bilateral agreement with the FAA), as well as the FAA and EASA, must certify or validate the Type Certificate of its aircraft before Eve can deliver to any customer, and it must also obtain production approval; no eVTOL is currently FAA-certified for commercial operations, so delays or changes in airworthiness criteria, means of compliance or production approval would push out its path to revenue.

“ANAC, as well as Civil Aviation Authorities (CAA) in other countries in which our potential customers are located, most notably the FAA and the EASA, must certify or validate the design (Type Certificate) of our eVTOL before we can start delivering it to any customers.”

Eve relies on ERJ and on its suppliers/service providers for the parts and components in its aircraft, and is (or may be) subject to sole-source suppliers for certain parts and components on which it depends to achieve projected type certification and high-volume production; this supply chain exposes it to multiple potential sources of delivery failure or component shortage, and while it believes it may be able to establish alternate supply relationships it may be unable to do so in time, delaying its program.

“We have entered into supply agreements with, and expect to rely on ERJ to provide certain services, products, parts and components required to manufacture our aircraft to sell to final customers, and we also may be subject to sole source suppliers for certain parts and other components for which we may be reliant on to achieve our projected high- volume production numbers. This supply chain may expose us to multiple potential sources of delivery failure or component shortages for our aircraft.”

Eve is concentrated in Brazil: its first eVTOL production facility is in Taubaté, São Paulo, most of its employees are located in Brazil (and are represented by labor unions), and roughly 17% of total liabilities are denominated in Brazilian reais — so Brazilian political and economic instability, high inflation, interest-rate hikes and frequent, substantial swings in the real-to-US-dollar exchange rate directly affect its costs, financing and results.

“The relationship of the real to the value of the US Dollar may adversely affect us, mainly due to the fact that approximately 2% of total assets and 17% of total liabilities are in reais .”