Good afternoon. My name is Francis, and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's 4th quarter and full year 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star two. Thank you. I will now turn the call over to Eric Cerny, Vice President of Investor Relations. Thank you. Good afternoon, everyone. Welcome to Virgin Galactic's fourth quarter and full year 2022 earnings conference call. On the call with me today are Michael Colglazier, Chief Executive Officer, and Doug Ahrens, Chief Financial Officer. Following prepared remarks from Michael and Doug, we will open the call for questions. Our press release and slide presentation that will accompany today's remarks are available on our investor relations website. Please see slide two of the presentation for our safe harbor disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the risk factors in the company's filings with the SEC filed by Virgin Galactic from time to time. Readers are cautioned not to put undue reliance on forward-looking statements. The company specifically disclaims any obligation to update the forward-looking statements that may be discussed during the call. Please also note we will refer to certain non-GAAP financial information on today's call. With that, I would like to turn the call over to Michael. Michael, go ahead. Good afternoon, everyone. I'm pleased to host today's Q4 earnings call. As we get started, I'd like to acknowledge how great it is to have our mothership, VMS Eve, back home in Spaceport America and on the path to bring our first spaceship, VSS Unity, back to space. Eve returned to the skies two weeks ago, and the ship flew back to New Mexico yesterday. We are making good progress on validating the enhancements made throughout 2022, and we remain on track for commercial service in Q2 of this year. Our agenda on slide three starts with a brief recap of 2022 before moving into our commercial readiness efforts. We will discuss progress on our future fleet development, and I will then turn the call over to Doug to provide a financial review before opening the call to take questions. Turning to slide four. In 2022, we made important investments in the infrastructure and the partnerships that will lead us into the future. 1st, we invested in our near-term operations by improving the durability and capability of our current vehicles to support higher frequency flight rates as we enter commercial service. The largest effort in this area was enhancing our mothership, VMS Eve. We replaced and upgraded the launch pylon, which is the structure at the center of the cantilevered wing to which the spaceship attaches. The pylon not only gives the spaceship a secure ride to launch altitude, but it also regulates the cabin temperature, air quality, power, and data connections during mated flight. In addition to the work on the launch pylon, we fabricated and installed new horizontal stabilizers, and we made numerous enhancements to our avionics and mechanical systems. While this comprehensive work on Eve took longer than we originally planned, we have now completed our enhancements, and I am incredibly appreciative of our team for the long hours that they put in to return these ships to flight. The work we completed in 2022 will serve us well for many years ahead. 2nd, we invested in our supply chain and spaceship fabrication infrastructure to enable our business to scale profitably. 2022 saw us bring on experienced design and manufacturing partners to fabricate our major subassemblies, and we also broke ground on our spaceship final assembly factory in Phoenix. In 2022, we laid the foundation for an astronaut experience that will be unrivaled. We completed the conceptual design for our first of its kind astronaut campus. We acquired an incredible site for the campus close to Spaceport America that will be reserved exclusively for Virgin Galactic future astronauts and their guests as they prepare for their journey to space. On to slide five. As we enter 2023, our near-term focus is on commercial space line operations. This includes three areas of operation. 1st, safely flying our current ships, VMS Eve and VSS Unity, to space on a recurring basis. This is the role of our space line missions and safety team. 2nd, preparing, inspecting, and returning our ships in ready-for-flight condition on regular intervals. This is the role of our space line technical operations team. 3rd, hosting, training, preparing, and celebrating our future astronauts, which is the role of our customer operations team. All three of these groups are actively preparing to bring our customers to space, and we are rehearsing and making preparations for the launch of commercial service. In recent weeks, we conducted flights with Eve from Mojave, and yesterday, Eve reunited with Unity at Spaceport America. We are very pleased with the way the mothership has performed in each of these flights, which ensure the modifications that we have made perform as expected under real flight conditions. Our next steps in the validation process will include a series of flights, including a glide flight, where VMS Eve carries VSS Unity to high altitude and releases the spaceship to perform an unpowered glide down to Spaceport America. Following successful completion of those steps, we'll look to conclude the validation process with a powered flight to space that will include a Virgin Galactic crew who will be assessing the in-flight experience and verifying components of our ground-based training program. Following successful completion and verification of the analysis from those missions, and consistent with our recent outlook regarding the flight schedule, we expect to commence commercial service in Q2, beginning with a research-focused flight with the Italian Air Force, followed by regular private astronaut and research missions thereafter. In between these validation flights, our space line teams are preparing for safe and repeatable flying by executing mission control simulations, training exercises, and other dress rehearsal activities with full integration of government agencies and partners at Spaceport America to ensure a seamless flight and astronaut experience. The customer operations team is preparing Spaceport America for the increased flight cadence and delivery of an unforgettable experience for our customers. They are working through rehearsals and simulations to ensure the astronaut experience before, during, and after the flight is truly one of a kind. Turning to slide six, I'd like to share some insights into our future fleet development, specifically the Delta class spaceships and our next generation of motherships, as these production vehicles will be the key enablers of revenue growth and profitability for the company over the long term. At a high level, this is a multi-year fleet development program that is running concurrently with our near-term commercial operations, which utilize Eve Unity. Our future fleet development roadmap calls for the first of our Delta class spaceships to come off the line at our Phoenix assembly facility in time for entering commercial service in 2026. 2022 was about establishing our design and manufacturing strategy, selecting our primary suppliers, and building up our internal teams. 2023 is now focused on completing designs for both the next generation motherships and Delta class spaceships, building the required tooling, and beginning the parts fabrication for these ships. Moving into 2024, we anticipate parts fabrication will continue and the assembly phase for both the next generation motherships and Delta class spaceships will also begin, utilizing the subassemblies from our suppliers. Ground testing and flight testing is expected to commence in 2025 in preparation for commercial service in 2026. In conjunction with that roadmap, we are making progress on our final assembly facility in Phoenix, Arizona. We are currently working through the interior design, production layout, and fit out phases of the project to support initial assembly, with parts expected to arrive in 2024. With our roadmap in place, the teams are working hard to achieve the various milestones that will lead to the scale needed to drive our business in the future. I'll now turn the call over to Doug for an update on our financials. Thanks, Michael. Good afternoon, everyone. Turning to slide seven and our financial results for the fourth quarter and full year. Starting with the fourth quarter, we generated revenue of $869,000 driven by future astronaut membership and event fees. Operating expenses were $154 million compared to $81 million in the prior year period. The increase is primarily attributable to a $62 million increase in R&D costs tied to our fleet enhancement activity and the development work for our future fleet. We reported a GAAP net loss of $151 million compared to $81 million in the prior year period, driven by higher R&D costs. Adjusted EBITDA was a negative $133 million in the fourth quarter compared to negative $65 million in the prior year period. For fiscal year 2022, we generated revenue of $2.3 million, primarily driven by future astronaut membership and event fees and revenue recognized for research activities. Operating expenses were $502 million compared to $323 million in the prior year. The increase is primarily attributable to a $170 million increase in R&D costs tied to our fleet enhancement activity, the development work for our future fleet, and an $8 million increase in SG&A, primarily due to higher employee costs to support our growth. We reported a GAAP net loss of $500 million compared to $353 million in the prior year, driven primarily by higher R&D costs. Adjusted EBITDA for the year was - $431 million compared to - $245 million in the prior year. Moving to slide eight, free cash flow was - $135 million in the fourth quarter compared to - $67 million in the same period last year. For the year, free cash flow was - $397 million compared to - $235 million in the prior year. Our balance sheet remains strong with $980 million in cash equivalents, and marketable securities. We intend to maintain that capital strength while prudently investing in the business. In 2022, we generated $425 million in gross proceeds through the issuance of convertible notes and $103 million in gross proceeds through the issuance of 16.3 million shares as part of an after-market, or ATM, equity offering program. Specific to the fourth quarter, we raised $3.8 million in gross proceeds utilizing the ATM. At the end of fiscal 2022, our issued and outstanding share count was approximately 275 million shares compared to 258 million shares at the end of fiscal 2021. For the first quarter of 2023, we forecast free cash flow to be in the range of - $135 million to - $145 million. As we begin commercial service, we anticipate each flight will recognize the revenue equivalent of approximately $600,000. Keep in mind that the first 6 flights or so will include one of our astronaut trainers who will be making in-person assessments of the cabin experience and recommending any adjustments to our ground-based training programs as necessary. This will result in one less revenue seat during these first flights. After which, Unity will carry four passengers or research seat equivalents. As you would expect, working through the flight manifest and the reservations that carry higher ticket prices will change the revenue profile of later flights. With that, I'll hand the call back to Michael for some closing comments. Thanks, Doug. In conclusion, 2022 was a year for investing in our future to support our commercial spaceflight goals. We focused on preparing our current fleet for commercial service, mobilizing our manufacturing partnerships to build our future fleet, supporting an astronaut experience that is unmatched anywhere in the world, including setting the stage for a unique astronaut training campus. We strengthened the balance sheet by raising capital to support the necessary investments in the business that will drive our long-term growth. We enter 2023 focused on commercial spaceflight operations. Near term, we plan to deliver regular and repeated flights with our current fleet and demonstrate the experiential power of our product. Concurrently, we are diligently progressing the development of our future fleet to scale our business over the medium and long term. With that, we'll turn to questions. Operator, we're ready for the Q&A portion of the call. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you'd like to remove that question, press star followed by two. Again, to ask a question, that is star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. Our first question comes from the line of Greg Konrad with Jefferies. Please go ahead, Greg. Good evening. Hi, Greg. Maybe just to start, you know, you burned $135 million of free cash flow in Q4. The guidance for Q1 is at a similar level. I appreciated the granularity of kind of the Delta class. How are you thinking about, you know, peak free cash flow usage? You know, is Q1 and Q4 a good run rate, or is there, you know, some accelerators in there? Just 2023 in general, you know, is that kind of the peak? Thanks, Greg. This is Doug. We guided $135 million-$145 million of negative free cash flow in Q1. You can see that's just slightly up from Q4. What we're seeing right now is the ramp down of the effort on the enhancement period. There's some reduced spending in that area, while at the same time we're picking up the spending on the fleet development activities. This is building out Delta class and the next generation motherships, so the design work in particular. What you'll see now is that starts to ramp, going forward, there will be some increases because we have the efforts on the fleet development as well as some infrastructure to go along with that. The thing is, we do have some flexibility in how we pace ourselves in this ramp. While it increases, we can either, you know, continue to accelerate or slow down as we see fit. We do see very attractive returns on all of these investments, so, you know, we want to lean into these opportunities as much as we can. We do have the opportunity to slow the pace if we need to preserve cash or something like that. We do see attractive returns. We want to invest in those things because we think it'll generate great economic benefits for the shareholders. With all the moving parts between the fleet and the infrastructure, it's a little hard to put a number on the exact peak spend. I wanted to give you kind of a directional guidance there on what to expect. Appreciate that. You know, in the prepared remarks, you mentioned regular intervals. You know, I guess how far out in advance do you plan missions? When you think about that first commercial flight in Q2, can you reach kind of that one flight a month right away, or is there kind of a learning curve or ramp to generating that kind of regular interval? Hey, Greg, it's Michael. You know, I think I would be kind to our space line technical operations teams to let them get two flights under their belt just to kind of work out the kinks there. In speaking with that group, it's very capable, we see a path to be on a monthly cadence in reasonable short order. You know, give ourselves two or three to kind of work that out. There's nothing kind of specifically in our way of being at a monthly cadence. I think it's just kind of shaking out the operation, and learning how to turn the ship on a consistent basis. We have our plans in place. We're rehearsing them now, actually, now that we've got those ships together. You know, a few flights to kind of shake it out, and we should be on that target. Just one last one for me. I mean, I don't think you mentioned Imagine at all in the script. Any update there or how you're kind of thinking about that spaceship? Yeah. Same as where we were last call. I've specifically directed all of our team members on two primary groups of work, right? First is leveraging Eve, our mothership, that just made back to Spaceport America, with Unity, and let's just start hitting regular flights to space. Do so safely, do so exquisitely, and create incredible experiences for people. I think that's going to be very powerful in showcasing to the world the power of this product. That's priority one. Priority two is the work that's going to create the value drivers for the company, and that's getting a production vehicle that has relatively low variable cost so that we can bring money to the bottom line. That's the Delta class spaceship and the next generation mothership. I've moved everybody in the organization and support teams onto those priorities. That leaves Imagine in, I'll call it an idle capacity right now. It's okay there. We're going to make sure we have both of those aforementioned scopes of work just dialed in and well in hand. When that happens, we'll come pick up Imagine and see where we wanna go. For now, we're leaving it in an idle capacity. Great. Thank you. You're welcome. Thank you for your question, Greg. Our next question comes from Oliver Chen with Cowen. Please go ahead, Oliver. Hi, Michael and Doug. You have a really great consumer marketing talent. Would love thoughts on pre- and post-commercial flight customer engagement strategies and how you're contemplating that? As we look forward, longer term, is 400 flights per spaceport, the right parameter still as you scale? As you think further in advance, how are you thinking about international operations as well? Thank you. Thanks, Oliver. Here for you. I'm not sure. On the customer topic, are you more interested in what our astronaut experience will be as we start off or more long term? Customer lifetime value and optimizing, the membership, once the customer's experienced it. Both topics are great. Thank you. I got it. Okay. No, thank you. As you well know, we have an incredible group of what we call future astronauts. We'll be bringing more and more of those people in. They're very interesting people and very passionate people about what we do. In the notion of customer lifetime value, we're starting the journey with these folks, you know, some many, many years. Our plan for anyone we bring in will be a two to three-year journey, very specifically building to the moment of the spaceflight so that we can anchor that memory in. In addition to just paying off the effort and delivering on the product, I think that experience is going to be so compelling that these folks become our, by far, strongest advocates, not only in recommending to other people to come, but I think will be wanting to come back and fly with us again in other places. I'll jump to international for a minute and then come back to the 400 flights. The notion of flying, you know, everybody who's gone has kind of come up and said, "I would like to go again," you know, to a person that's gone with us. I think that is going to continue, and I think people want to bring friends and family along the way, and that can happen in the same location. I think it will also be very powerful to see other parts of the Earth from space. You've often heard us talk about, wouldn't it be amazing to look down over the boot of Italy or over the Sea of Japan or other places. That international spaceport concept is very important and strong for us, which is why we're building a factory in Phoenix that can continue to produce spaceships, not only for Spaceport America, but that can continue to populate additional spaceports. We've always said that's, you know, probably a 4-5-year exercise to be into a new spaceport, my guess probably closer to five. We thought we would be going back and reaching out to interested countries in that regard around the time we're coming back to flight. I think that existing strategy still holds today. The 400 flights per year per spaceport is a very important planning parameter for us. We're building our capacity across all the different parts of our business around that objective. We could do more or we could do less, right? We're generally saying, let's go out on daily flights and realizing that weather won't always cooperate with us, as it didn't this last week. You know, it took us a few days to get out of Mojave, with our mothership due to the weather in California. We also want the ability to fly more than once a day at a particular spaceport. Once we have that capacity in mind, you know, conceivably, we can do more than 400 flights at a specific spaceport. I think we'll probably first look to leverage multiple locations in other parts of the world, but we do have that flexibility to go higher if we so chose. Okay, last question on the Delta class production, which is very important for scaling. What are the milestones or critical points we should think about? On the R&D spend growth over the next few years, are there things we should be aware of? Thank you. Best regards. Thanks, Oliver. Just, you know, a little bit more color on the milestones around the Delta class as an example. This year, we'll be completing designs for the ship and actually building the tooling for the parts, and we will be starting parts fabrication. Now, the parts we'll be doing in 2023 are the kind of big, longer lead outer mold line, which is already consistent parts. That would be in the fuselage, the skins for the spaceship itself, the foundational parts of the wing, the parts of our feather assembly. Those will actually start this year, later in the year because we're still putting the designs and locking those down. Those will actually start after we build the tooling and then get that parts fab going. In 2024, you'll see parts fabrication continue, but we'll then start the assembly of the ships in 2024. That then wraps up so that when we get into 2025, we're doing first ground and then flight testing on the vehicles. Those are the details that are going through there. We've got our supply chain partners, signed on and already working with us in this regard. You'll want to, you know, as we keep coming back quarter after quarter. All right, how are those designs progressing? When are you starting the tooling on that? Is parts fabrication still looking kind of at the tail end of 2023? Those will be milestones that will be checkpoints for making sure that we're continuing on the path to commercial service in 2026. Thank you. Just lastly on that R&D question, anything we should know for the modeling, and also, it goes to CapEx, is that correct, from an operating expense over time? Hi, Oliver, this is Doug. We are in the design phase now. You'll see non-recurring engineering costs as we develop the first article. You know, then we'll be investing in the tooling and the parts fabrication. You'll see the spending ramp up there. It does shift over to CapEx once we reach a certain stage of the, you know, finalization of the design, and then we'll do the accounting adjustment to switch over to CapEx. You'll see a change there. In terms of the magnitude of it, you know, we've got two main suppliers helping us with the Delta class. The way we've set up these contracts is it's a set of task orders that are under development. We're doing, you know, what people would refer to as a rapid aircraft development program, where we do a lot of steps in parallel. We're doing things concurrently. We develop each of these cost estimates for the subsequent task orders as we go. We, we have the model, of course, but it wouldn't be in our best interest to put those numbers out there right now because they're still under negotiation with our major suppliers. Hopefully you can understand that. Yeah, very helpful. Thank you. Best regards. Thanks, Oliver. Thank you for your questions. The next question comes from Myles Walton with Wolfe Research. Please go ahead. Hey, guys. How are you this evening? We're great. Hi, Myles Walton. Hi there. Just a quick question. First on headcount. Where did headcount arrive at the end of the year? Secondly with that, how are you all thinking about the pace of hiring in the next year? Headcount, we ended last year. I'm talking to Doug here as I didn't have that one in my fingers. I thought 1,100, 1,200 or so on a headcount basis for the company. You know, we'll do a quick double check on that one, but I think that's about right. Last year was definitely a growth year for us in adding headcount as we ramped up our team. We have a few places left to continue to build, so we're still in somewhat of a growth mode. We've hired the majority of the people and the roles that we need to carry us both in commercial operations and on the development path, kind of our programs in engineering in developing these new ships. Our partners, right? They'll be, you know, building up their teams or reallocating folks from some of the larger companies. We'll be reallocating as our work starts to flow to them. That will happen. What we're also able to do is now as we're finished the work on our enhancement program, with Eve in particular, we're able to redeploy the talent that had been occupied on those efforts into our operating areas. Both into our, kind of space line technical operations in New Mexico, but also into helping as we get into final assembly in Phoenix. I'd say modest, growth in a few targeted areas, mostly engineering. When we get into the 2024 period in Phoenix and we really start our assembly processes there, that particular site will ramp up further as we go. For 23, modest growth. One other thing I can add, there is that with the headcount, we did have a lot of contractors here during the enhancement period. As that has completed, we've ramped down that headcount. Now you're seeing us add more permanent headcount for the next phase, which is the fleet development. It's not a net add of heads with the numbers we gave you, but those are the full-time equivalents that'll be here while we ramp down the contractors. Thank you. one more, if I may. On the customer pipeline, the future astronaut pipeline. Sorry if I may have missed this in the commentary, are you able to size that pipeline at the moment? Do you all get as granular as the geographical spread of the customer pipeline? Well, a couple ways on that. The, you know, TAM, if you will, on this industry is obviously one that's being built because the industry is being built. A couple of your, you know, counterparts have done some good research, I think, into assessing that market and, you know, kind of leave those works to stand on their own. We're obviously building this up as we go. You mentioned international on our customers. We have astronauts from over 62 different countries, or I think 62, maybe 63 now, different countries across the world. We obviously track our existing base there and know we know where we have, you know, kind of greater and lesser momentum. That brings us to then as we consider international space ports. Europe is a logical place for us. Middle East is a logical place for us. Asia is a logical place for us. I feel pretty good about Spaceport America for North America, you know, right now. You know, right there kind of gives you the, where we think the big markets, are aggregated. Obviously the groups that we're bringing in, do travel and are willing to travel to different parts of the world. I do think we can bring a global audience to any of our individual sites that we'll eventually have. I think it's helpful to be located in proximity to large markets as well. Great. Thank you very much, folks. Thank you, Myles. The next question comes from Michael Leshock with KeyBanc Capital Markets. Please go ahead. Hey, good afternoon. Welcome, Michael. First question, I appreciate the milestones you laid out for the Delta class. I wanted to ask on which milestone or which year that you laid out do you expect to be the most capital-intensive? Whatever that peak burn rate is, and I know there are a lot of moving parts, but I'm just trying to get an idea for the duration of that rate or what steps would require the larger cash outlays? Sure. 2024, right, 2024, you'll see the continuation of parts fabrication. The assembly is going to be going on not only at our Phoenix plant for final assembly, but within our supply chain partners for their major sub-assembly assembly. That's where you're kind of getting the peak non-recurring engineering and the peak assembly of initial ships. And then as we move those into ground and flight testing, that would start to come down, we would expect. As Doug mentioned, you know, we have some good capability, I would say, to accelerate or kind of keep the accelerator down or hedge back up at, on our pace as we feel we needs to. We feel really good about the return on investment of the money that we're putting in. We would like to go ahead and get this fleet built up and start delivering on the experience. We have flexibility in that if we need to. You know, specifically to your question, I think 2024 is likely to be our peak. How far in advance of Delta's first revenue flight do you plan to begin that testing of the Delta ships? You said 2025, but is that a few months or is that the better part of a year? How does that compare to the length of testing for legacy ships? Is that the same amount of testing you needed for Unity, for example? Can you check a lot of those boxes off for Delta just given the testing that you've already completed on the legacy fleet? We don't expect to see some. You know, VSS Unity was a very extensive flight test because it was breaking new ground almost on every flight. Delta class flight tests are going to be flying similar flight profiles with a outer mold line that's fundamentally, you know, same or very similar to our last ship and but with different material properties and some different handling characteristics inside. The scope of the flight testing is less than what you would see in VSS Unity, but it is a new vehicle. I don't want to put a parameter probably this early on the team of exactly how many months that that will be. It's measured in months and I think the focus of that is just as we always do, you know, a nice sequential test, learn, expand the envelope, and analyze, go forward with that. It is off a much deeper base of knowledge. We'll also have many flights under our belt by that time that have also built up our knowledge and we're able to do a lot more modeling, right, with our aerodynamic models and our flight sciences group that also help, you know, I'd say make that as an efficient process as we can. The other thing we can do by virtue of having built tooling and getting that non-recurring engineering done with the tooling is we can have more than one ship embedded into the flight test program. That's something that we're, you know, evaluating now is being able to kind of work on different points with multiple ships in the process there because it doesn't take us relatively that long to do a final assembly on a ship. Hopefully that gives you a little bit of color into that process. Yeah. That's helpful. Lastly for me, the issuance of shares through your at the market program was minimal in the quarter relative to the $100 million in 3Q. How are you viewing the cadence of any further issuance as we move through 2023, given the $200 million or so remaining? Well, we have the $200 million, as you said, there for us to utilize. It's always based on, you know, market conditions that we're always watching and trying to optimize. It has to do with things like share price and volume and that sort of thing. We'll use it appropriately when there's opportunities to do so. Got it. Thank you. All right. Thanks, Michael. Thank you for your question. The next question comes from Michael Ciarmoli with Truist. Please go ahead. Hey, good evening, guys. Thanks for taking the questions. Maybe just to kind of stay on that sort of capital spending and CapEx, I mean, should we basically broadly think that, you know, cash burn 2023, 2024 should equate to about $1 billion? I mean, is that the right way to think about this? Thanks for the question. As I mentioned, it's not something we wanna put a total number on, just because of the number of moving parts in between, both the timing and the magnitude of the spend. I tried to give you directionally what to expect, and we did highlight here that it'll be growing most likely into 2024. But there's enough moving parts in there that it's a little difficult to put a total number on it that we wanna put out there on a multi-year guidance basis, just because you've got the Delta class plus the motherships, plus we have the factory for the manufacturing as well as the space port expansion and the astronaut campus. There's enough things in there that are all lining up in terms of being ready for service, yet there's a little movement in there. I think it's be reaching to put a specific number out there for a two-year spend at this point. Yeah, I think part of. Okay. Goes into Doug's spot there is, you know, we have flexibility on how many of those things we choose to run concurrently or not. Okay. Fair enough. Then just, I mean, are you guys comfortable with just you're gonna have one ship in operation through 2026? I mean, is that from an operational risk standpoint and sort of de-emphasizing Imagine? Are you guys comfortable with that kind of model? Well, one, I'm very excited and comfortable with Unity and excited to have the mothership back there so we can get that going. That's just all good news. Second thing is, we want to really get the volume of this up. That's what we're all in this company for, is to take, you know, hundreds and then thousands and, you know, tens of thousands eventually of people in spaces where we're trying to go to. That requires a production model. That's why you're seeing us focus first on Unity, so that we can just regularly prove out and showcase the experience. We'll continue to learn technically, of course, but I think it's really going to help normalize this to the marketplace and showcase the power of what we do. We really are needing to get focused to the production model. That puts VSS Imagine as an option value in the middle, and we can turn to it when we've got everything else, you know, well in hand and humming along as we want to, and then come back to VSS Imagine. We look, you know, here to have our Delta class beginning flight testing in 2025, that's, you know, a couple years out now. It's still to come, we're moving well ahead on that, and I think we'll get all of our learning on VSS Unity. It's helpful to have VSS Imagine as that option to go to when we want to go to it. First things first, let's deliver our experience with Unity, and let's make sure that we're building out the low variable cost production unit, in Delta. Got it. Sounds fair. Last one, I guess, or maybe two quick ones. Is there any FAA certification needed or required for the modifications that were made to Eve? Is that part of the validation? Right. You know, two different things. We have a commercial operator's license. We talked about that, I think, on the last call. That's good through July of 2024. I think those go on two-year renewals. Then, each of our ship has an experimental airworthiness certificate. In fact, Eve just renewed hers, and so that's a yearly basis. We'll go and renew Unity's later this year. Okay. Perfect. Last one. I think the customer deposit's on the balance sheet down a little bit sequentially. Can you talk to maybe ticketed passengers and backlog or any trends there? I'll just in the general trends. We are kind of the same place where we've been before. We have right around 800 or so people on board in the future astronaut category. We pulled 100 of our first 1,000 seats off to use for research that we're going to call it feather in to the manifest along the way. You know, you'll start by seeing the Italians on a research flight, you know, first up in commercial service. We have a group that we're working with, Virtuoso, that we've given an allotment of inventory to. I think my guess is Virtuoso will probably pick up on their efforts as we move back to space. No real changes in that category. We saw on last year, 2022, some people of our, you know, 800 base, drop off. Wasn't our largest year of dropping off, as you might imagine, with everything and the disruption going on in the economy and the world. It was a little bit higher than some. We generally backfilled that with what I refer to as house seats. You know, friends and family referrals from existing future astronauts that kind of kept our overall numbers basically the same. Got it. Okay. Perfect. Thanks, guys. Thank you. Thank you. The next question is from Kristine Liwag with Morgan Stanley. Please proceed. Hey, good evening everyone. Hi, Kristine. Hey, you know, following up on Mike's questions earlier on cash. You know, if we annualize your 1Q cash guide, that could be a free cash flow usage of $560 million per year. You know, you guys have a $980 million cash balance, that would only leave you with $420 million by year-end. You know, Doug, you mentioned that you can accelerate or slow down investments to preserve cash. Can you quantify the flexibility? Is that in the tens of millions or hundreds of millions? Maybe I'll stop there, I've got a few follow-ups on that. Yeah. Thanks, Kristine. This is Doug. Yes, the ability to flex our spending is actually pretty significant. You know, it's more in the hundreds of millions range versus tens. You know, we'd rather not do that because we see great returns on these investments, you know, and we wanna invest in the vehicles and the expansion because the economics of producing more ships is very attractive, right? 'Cause each copy is relatively inexpensive, you know, compared to the engineering and the work that we do up front. We wanna be able to make these copies, get those economics running. We'd rather not slow down, but we could if we needed to and spend less on the infrastructure and the fleet development as needed. We would have some pretty significant levers there in terms of what we could do, if necessary. Great. Is there a minimum cash balance you're comfortable with? Then also when you think about that ramp of those ships, are there other creative financing solutions that you can look to so you can continue to accelerate production without, you know, compromising, you know, your cash position? Maybe like secured asset financing or anything like that. Are those available or are these You know, spaceships still too niche for that? Sure. On the min cash, you know, there's not a specific number we put out there, but we do like having a strong balance sheet, for the reasons I mentioned. You know, we see great opportunities, in the investments we have. We wanna have that flexibility. Our preference clearly is to maintain that strength and not let it shrink. We will strive to do that. But I wouldn't put a specific number out there. In terms of alternative financing, you know, there's equity, there's debt. We, and you mentioned some other secured methodologies. We haven't pursued that at this stage because, you know, we have the $980 million. We have the flexibility we talked about. The equity markets have been supportive. We were able to raise debt before, and we have that potential again in the future and would look to that as an alternative. You know, we can explore other alternatives if we wanna get more creative. At this stage, just kind of sticking to the basics. Great. Thanks for the color. If I could squeeze one on Eve. I mean, you've now had two successful test flights. How's the operating data comparing to what you anticipated? Are there any surprises? Is 100 flights before the next major maintenance overhaul still where it's tracking? Great questions, Kristine. Just 'cause it's a broad call and people listening in, we're using the word verification or validation flights. What we're doing here with Eve is not trying to break new ground. These are fundamentally regression testing flights. We use them to gather actual flight data. We use that to correlate our flight sciences models because we made some structural shifts within the plane, right? Specifically in the center wing, where we made a heavier and beefier launch pylon. There's some different structural strength in that part of the wing, and there's some actual small elements that have changed slightly kind of the profile of the wing. In fact, if you look in one of our slides, whatever slide number it was, where we kind of showed the launch pylon and the horizontal stabilizers. If you look closely in that, you'll see a couple small protrusions on the leading edge of the wing. There's same on the back. We use what we call an exoskeleton approach to add, be the way that we would attach the pylon onto the wing, that created a little bit more material in those areas. What you're seeing on those protrusions are fairings, very small fairings. We don't expect those to have any impact, we're using these tests as an example to confirm that there's not any material aerodynamic impact to that. Those tests have gone very well so far. We continue to do them sequentially. The next flight we will use to kind of continue to expand if we've done regression testing to gather data. We're also looking to ensure that nothing that we did would create an opportunity to introduce any flutter characteristics into this area. We work our way up to that, so that's what these first two flights have done. We'll do another flight and carry it out to max speed in that regard. We've been very pleased with the performance of the ship. It's correlating as expected. We're just gonna continue on that process now. Pilots had nice things to say, which was good to hear. Great. Thank you, guys. Thanks for the color. Thanks, Kristine. Thank you. The next question comes from Austin Moeller with Canaccord. Please go ahead. Hi, good evening. Just my first question here. Just given the cash that you have on the balance sheet and the plans for production through 2026. Do you expect that to yield 1 Delta class orbital space plane and 1 next generation mothership? Or do you expect additional units that you should be able to produce with what you have on hand? Well, let's see, Doug. Yeah, you can we can tag team on this one. I'd frame the start of this, Austin, with our strategy is to invest a non-recurring engineering work, both in the engineering design and in the building of tooling that allows us to build parts in an ongoing basis and a final assembly infrastructure that allows us to continue to assemble copies of this production model, both of these production model ships at a relatively quite, you know, relatively low variable cost. That's where we'll get the economics, that's where we'll drive the margins in the business, that's where we'll get the flow-through from a shareholder value standpoint. That approach is the same on both the Delta class ships and our next generation motherships. In both of these, internally, as well as with our supply chain partners, we're creating the tooling and doing that in kind of, you know, long wear tooling such that we can go ahead and continue to create replicas of those as we both build out Spacep ort America and then look even further ahead into being able to continue to populate space ports in other locations in the world. That's been our manufacturing strategy all along. Obviously, as we get into those ramp-up years, we'll also be flying ships, and then you have more income coming in and so that you can kind of balance that on an internal cash generation basis. Going forward, you know, Doug, you shared a lot on economics. I don't know if you have anything else you'd wanna add. Just regarding, you know, the cash we have and then the, you know, the cost of the vehicles, I think it's getting too close to quantifying the cost of a spaceship and a mothership at this stage, given what I mentioned about the negotiations that are ongoing. I think we would go with Michael's description as the color he's gave is hopefully helpful to you. Okay. Then just another question. The astronaut camp is being built in New Mexico by 2026, but just thinking about incremental revenue opportunities for the company, have you guys considered doing like a Roscosmos Star City style astronaut training service, to help add to revenue generation just in addition to the actual space flights? I think, just so I say the same thing to you that I'm saying to everybody in our team at Virgin Galactic, right? We're first going to stay focused on flying Unity to space, with Eve and second on getting our Delta-class and next gen motherships up. That's, that is very clearly where we're putting our attention right now and being super efficient with our spend as we do it. With that said, I think there's a lot of opportunity for, you know, widening out, you know, our revenue potential as we start to get regular flights to space. I do think the heaviest bulk of getting the leverage to have additional revenue streams like the ones you're talking about, really get enabled as you start to get closer to at least a weekly, if not multi times a week cadence there. There's just a lot of excitement, a huge emotional excitement just being around and seeing our ships go to space. We can envision opportunities around that that would be at materially smaller price points, of course. I think that's for the future a little bit right now. We just wanna stay focused in 2023 on getting the job done with VSS Unity and VMS Eve and getting our Delta class next gen motherships going. Okay, just one more, if I may. Have you had any customers come to you through the marketing process that have complained about the high pricing on Blue Origin's suborbital flight relative to yours? Our customers are amazing people. Some people are observing their multiple choices in the world. You know, I think we're excited for everybody to be going to space, so I won't comment on relative pricing. I do note that there are different price points as you point out. Okay, great. Thanks for all the color. Thanks, Austin. Thank you for your question, Austin. That will conclude today's Virgin Galactic fourth quarter and full year 2022 earnings call. Thank you for your participation.