20-F: Lilium N.V. Files Form 20-F for Fiscal Year 2023

Lilium N.V. has filed its Form 20-F, detailing its financial activities and progress for the fiscal year ended December 31, 2023.

Summary

• Lilium N.V., an eVTOL aircraft developer, filed its Form 20-F for the fiscal year ending December 31, 2023.
• The company incurred operating losses of 400.6 million in 2021, 278.9 million in 2022, and 270.7 million in 2023.
• Lilium anticipates needing substantial additional cash to fund operations until the first manned flight test of the Lilium Jet, expected in late 2024.
• The company's ability to continue as a going concern depends on its ability to raise additional funds through debt, equity, partnerships, and grants.
• Lilium is developing a fully electric eVTOL aircraft for regional air mobility networks.
• The Lilium Jet is undergoing design and testing for Type Certification with EASA and the FAA.
• The company is pursuing two business models: private/fractional sales and turnkey enterprise solutions.
• Lilium has established a customer service organization, Lilium POWER-ON, to support the global fleet of Lilium Jets.
• The company faces competition in the eVTOL market and relies on third-party suppliers for key technologies.
• Lilium is subject to various regulations and laws, including anti-corruption and export control laws.
• The company has identified material weaknesses in its internal control over financial reporting.
• Lilium is an emerging growth company and a foreign private issuer, which provides certain exemptions from U.S. securities laws.
• The company does not anticipate paying dividends in the foreseeable future.
• The company is subject to cybersecurity risks and has implemented measures to manage these risks.
• The company is exposed to market risks, including credit default, interest rate, currency, liquidity, and inflation risks.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While Lilium is making progress in developing its technology and pursuing certification, the company's financial situation is precarious, and its future depends on raising additional capital. The presence of material weaknesses in internal control over financial reporting is also a concern.

Positives

• Lilium has established a customer service organization, Lilium POWER-ON, to support the global fleet of Lilium Jets.
• The Lilium Jet is undergoing design and testing for Type Certification with EASA and the FAA.
• Lilium is developing a fully electric eVTOL aircraft for regional air mobility networks.

Negatives

• The company incurred operating losses of 400.6 million in 2021, 278.9 million in 2022, and 270.7 million in 2023.
• Lilium anticipates needing substantial additional cash to fund operations until the first manned flight test of the Lilium Jet, expected in late 2024.
• The company's ability to continue as a going concern depends on its ability to raise additional funds through debt, equity, partnerships, and grants.
• The company has identified material weaknesses in its internal control over financial reporting.

Risks

• Lilium faces intense competition in the eVTOL market.
• The company relies on third-party suppliers for key technologies, which poses supply chain risks.
• Lilium is subject to various regulations and laws, including anti-corruption and export control laws.
• The company is subject to cybersecurity risks and has implemented measures to manage these risks.
• Lilium is exposed to market risks, including credit default, interest rate, currency, liquidity, and inflation risks.

Future Outlook

Lilium anticipates needing substantial additional cash to fund operations until the first manned flight test of the Lilium Jet, expected in late 2024, and expects to generate cash from pre-delivery payments, equity offerings, debt financings, partnerships, and grant funding.

Industry Context

The announcement relates to the emerging eVTOL market, where Lilium is competing with other companies to develop and commercialize electric aircraft for urban and regional air mobility.

Comparison to Industry Standards

• The document does not provide enough information to make a detailed comparison to industry standards.
• However, it mentions competitors like Joby Aviation and Archer Aviation, suggesting that Lilium is benchmarked against these companies in terms of technology and market entry.
• The document mentions that Lilium is the only eVTOL manufacturer with both an EASA and FAA certification basis for a powered lift eVTOL.

Legal Proceedings

• A putative class action lawsuit is ongoing against Lilium N.V., Daniel Wiegand, Geoffrey Richardson, and Barry Engle for purported violations of United States securities laws.

Related Party Transactions

• Aceville Warrants: The Company issued the Aceville Warrants to Aceville Pte. Limited, an affiliate of Tencent Holdings Limited, a major shareholder of Lilium.
• 2023 PIPE: Barry Engle, David Wallerstein, Henri Courpron, and Oliver Vogelgesang participated in the 2023 PIPE transaction.
• Seabury Engagement: Lilium engaged Seabury Securities (UK) Limited and Seabury Capital Management LLC for financial advisory services. Henri Courpron, a director of Lilium, is vice chairman of Seabury Aviation Partners, an affiliate of Seabury.
• Qell Engagement: Lilium engaged Qell Capital Management L.P. for strategic and management advisory services. Barry Engle, a director of Lilium, is a managing partner of Qell.

Stakeholder Impact

• Shareholders: The company's financial performance and ability to raise capital will directly impact shareholder value.
• Employees: The company's ability to continue as a going concern will impact job security and compensation.
• Customers: The company's ability to develop and certify the Lilium Jet will impact the availability of its services.
• Suppliers: The company's financial stability will impact its ability to meet its contractual obligations to suppliers.
• Creditors: The company's ability to repay its debts will depend on its financial performance and ability to raise capital.

Next Steps

• Lilium plans to continue design and development of the Lilium Jet.
• The company will continue to pursue Type Certification with EASA and the FAA.
• Lilium will focus on quality, compliant, and on-time deliveries from suppliers.
• The company will continue to build out its manufacturing capacity.
• Lilium will continue to evaluate capital raising and strategic opportunities.

Key Dates

Keywords

eVTOL, Lilium Jet, financial results, Type Certification, regional air mobility, financial risk, Form 20-F, going concern, shareholders, warrants, capital raise, EASA, FAA