The accompanying consolidated financial statements included have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (the “ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (the “FASB”). The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

A financial statement line item was added to the Consolidated Statements of Cash Flows for other changes in operating activities. Additionally, accrued expenses and other current liabilities were separated and contract assets were combined with prepaid expenses and other current assets on the Consolidated Balance Sheets. The corresponding prior-period amounts have been reclassified to conform to the current period presentation.

The Company is an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an emerging growth company.

The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities as of the date of the consolidated financial statements. Estimates and assumptions are related to revenue recognition, the Company’s pre-IPO common stock, stock-based awards, convertible preferred stock, income taxes, long-lived assets and leases. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.

The Company’s cash equivalents consist of certain highly liquid investments with original maturities of less than three months. Restricted cash represents cash held as collateral with financial institutions in support of a credit arrangement and to provide funds for certain construction activities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts in the Consolidated Statements of Cash Flows (in thousands):

Accounts receivable represent contractual amounts due to the Company for products and services provided to customers. The Company provides for uncollectible amounts by estimating the expected credit losses over the life of the receivable. As of December 31, 2025 and 2024, the Company estimated the allowance for expected credit losses to be immaterial. If any accounts, or portions thereof, are deemed uncollectible, such amounts are expensed when that determination is made.

Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and money-market cash equivalents. The Company’s cash is held in accounts with multiple financial institutions that management believes are creditworthy. The Company regularly monitors the financial stability of these financial institutions and believes that there is no exposure to any significant credit risk in cash and cash equivalents.


			Estimated Useful Life
Computer equipment and software			3 and 5 years
Machinery and equipment			Lesser of 10 years or remaining lease period
Vehicles and aviation			5 and 20 years

Leasehold and land improvements			Lesser of 15 years or remaining lease period
Buildings, structures and recharge sites			Lesser of 40 years or remaining lease period Lesser of 10 years or remaining lease period for recharge sites

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable based upon estimated future cash flows. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made.

The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction of the proceeds from the offering, either as a reduction of the carrying value of the Preferred Stock or in stockholders’ equity as a reduction of additional paid-in capital generated as a result of the offering. Upon closing of the Company’s IPO in November 2025, previously deferred offering costs of $10,680 were reclassified to stockholders’ equity and convertible preferred stock and recorded against the proceeds from the offering. There were no deferred offering costs as of December 31, 2024.

Fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in a timely transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. A fair value hierarchy is applied in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. The three levels of inputs used to measure fair value are detailed below.

The Company monitors the availability of inputs that are significant to the measurement of fair value to assess the appropriate categorization of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the Company’s policy is to recognize significant transfers between levels at the end of the reporting period. The significance of transfers between levels is evaluated based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. For the years ended December 31, 2025 and December 31, 2024, there were no transfers between Level 1, Level 2 and Level 3. The Company’s cash equivalents are determined to be Level 1 in the fair value hierarchy.

The Company’s Preferred Stock is classified in stockholders’ equity and convertible preferred stock on the Company’s Consolidated Balance Sheets. All shares of the Company’s previously issued and outstanding Preferred Stock and PIK dividends were converted into shares of Class A common stock upon the closing of the IPO. See Note 8 “Stockholders’ Equity and Convertible Preferred Stock.”

As of the closings of Series C and Series C-1 Preferred Stock issued during fiscal year 2025 and prior to the IPO, the estimated fair value of the Preferred Stock ranged between $17.94 and $30.83 per share compared with the purchase price per share of $17.94. As a result, the Company recorded a non-cash loss of $379,619 to other expense to account for the difference between the amount of aggregate purchase price and the fair value of the shares issued as of the date of issuance. The estimated fair value of the Preferred Stock was prepared using the hybrid method, with one or more scenarios using the OPM to allocate the equity value to respective share classes. The valuation was based on numerous valuation factors, including, but not limited to economic factors, industry trends and likelihood of achieving a liquidity event. These are Level 3 inputs within the fair value hierarchy.

The Company’s contracts generally require payment based on contractually-stated milestones or upon completion or delivery of goods or services. Certain contracts permit customers to unilaterally terminate or cancel the contract without substantive termination penalties incurred by the customer. Additionally, certain contracts have options for the customer to acquire additional goods or services. In cases where the pricing of these options are not reflective of standalone selling price of the good or service, a material right would be accounted for as a separate performance obligation. The Company’s contracts do not contain significant financing components, as differences that arise between receipt of payment and delivery of goods or services is generally within a one-year period.

The Company categorizes revenues associated with tangible products as product revenue. Revenues associated with engineering or other services arrangements are categorized as service revenue. Service revenue also includes revenues associated with usage of and priority access to the Company’s charge stations and from sales-type lease income. In cases where a singular performance obligation encompasses both elements of product revenue and service revenue, the associated revenues and costs are categorized based upon the predominant nature of the overall promise made to the customer.

The Company assesses whether the goods or services promised within each contract are separate performance obligations. Goods and services that are determined not to be distinct are combined with other promised goods and services until a distinct bundle is identified. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation using the standalone selling price of each distinct good or service. Standalone selling prices of our goods and services are not directly observable. Accordingly, they typically closely approximate the stated contract price for each distinct good or service. The Company also includes an estimate of variable consideration within the transaction price, to the extent it is probable that it will not result in a significant future reversal of revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method.

The Company recognizes revenue over time for a performance obligation when (i) there is a continuous transfer of control to the customer; (ii) the Company’s performance under the contract creates or enhances an asset that the customer controls as the asset is created or enhanced; or (iii) the Company’s performance does not create an asset with an alternative use and there is an enforceable right to payment for performance completed to date. In determining whether an asset with an alternative use is created, the Company considers, on a contract-by-contract basis, the level of configuration required to meet customer demands and the overall customization of the product. Revenue is typically recognized over time for contracts with research, development and service-based performance obligations. All other performance obligations are recognized at a point in time.

The Company’s over-time revenues are typically recognized using a cost-to-cost or time-expended input method, based on the estimated total cost to complete a performance obligation, and the percentage of the associated input in relation to the estimated total at the end of the period. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the Company regularly assesses the contract schedule, performance, technical matters and estimated costs at completion and updates its contract-related estimates. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel. When changes in estimated total costs, time at completion or estimated total transaction price are determined, the related impact is recognized on a cumulative basis through revenues. Total revenue recognized on over-time contracts was 44%, 49% and 38% of total revenues for the years ended December 31, 2025, 2024 and 2023, respectively.

Contract modifications frequently occur in the performance of the Company’s contracts. In most instances, the nature of the modification determines whether or not the Company accounts for the modification as an adjustment to the existing contract, in the case of the original goods or services being modified, or as a new contract, when the modification provides for additional goods and services that are distinct.

Contract assets primarily represent services performed by the Company for which revenue recognition precedes the billing of the services. Contract assets are included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of December 31, 2025 and 2024. Contract liabilities primarily relate to contracts where the Company received payments but has not yet satisfied the related performance obligations as well as customer deposits. At each reporting period, to the extent that customer contract billings exceed revenue recognized on such contracts, these contract liabilities are presented as deferred revenue or deferred revenue, non-current on the Consolidated Balance Sheets as of December 31, 2025 and 2024.

Cost of revenues includes the direct cost of materials, labor, subcontractors and overhead costs (where allowable) used in the production of GSE, aircraft components and services provided to customers. Cost of revenues associated with product sales is comprised of purchases made directly for contractual performance obligations primarily recognized over time, where no inventories are held.

On September 3, 2025, we entered into a collaborative arrangement with General Electric Company, operating as GE Aerospace (“GE Aerospace”), to research and develop hybrid-electric propulsion technologies for future sales to the commercial civilian aircraft market and government customers. Under this arrangement, BETA and GE Aerospace share in the risks and rewards of this program, as we are both responsible for our own costs during the development period. Costs incurred in connection with this arrangement are recorded within research and development expense. In connection with this arrangement, on September 26, 2025, the Company issued warrants to purchase 2,552,467 shares of Class A common stock to GE Aerospace at an exercise price of $0.002 per share (the “GE Warrants”). The GE Warrants are exercisable upon vesting and vest subject to the satisfaction of certain milestones, with any shares that remain unvested on the third anniversary of September 3, 2025 vesting on such date if the Company and GE Aerospace are continuing to work together under the arrangement (or similar arrangement) as of such date. The aggregate issuance date fair value of the warrants was $67,236. The estimated fair value of the common stock was prepared using the hybrid method, with one or more scenarios using the OPM to allocate the equity value to the GE Warrants. The valuation was based on numerous valuation factors, including, but not limited to economic factors, industry trends and likelihood of achieving a liquidity event. These are Level 3 inputs within the fair value hierarchy and require significant judgment or estimation. The Company recorded research and development expense of $6,335, which includes $6,073 of warrant expense in connection with this arrangement, during the year ended December 31, 2025. As of December 31, 2025, there was $61,163 of unrecognized compensation cost related to unvested warrants.

The Company receives government assistance pursuant to agreements with U.S. federal, state and local government agencies, as well as agreements with other non-government organizations that have authority from U.S. government agencies to administer assistance on their behalf (together, “government agencies”). Contracts with government agencies generally relate to the design, development or manufacture of aerospace products and related support services. Agreements with the government agencies generally contain provisions including termination for convenience. Because the Company has not adopted ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, government assistance is accounted for by analogy to IAS 20, Accounting for Government Grants.

The Company records a reduction to the carrying amount of the associated asset or expense that the grant is intended to defray when there is reasonable assurance that the Company will comply with the conditions of the grant, the grant is received or receipt is probable and the amount is determinable. Certain of the Company's contracts with government agencies contain milestone-based payment schedules and there may be points in time throughout the duration of the project at which payments received exceed costs incurred. The Company records a deferred credit for any funds received in advance of the related expense.

Research and development expenses include employee payroll, consulting, GE Warrants, materials, tooling, rent and other corporate costs attributable to research and development activities and are expensed as incurred. Certain materials purchased by the Company are determined to have an alternative use to the Company through future research projects or manufacturing. The costs of materials with alternative use to the Company are included within prepaid expenses and other current assets and expensed within the relevant financial caption as the items are consumed.

The Company has stock-based compensation plans and measures all stock options, restricted stock units (“RSUs”) and other stock-based awards granted to employees, non-employees and directors at fair value. Compensation expense related to those awards are recognized over the requisite service period, which is generally the vesting period of the respective award. Stock-based compensation cost is measured at the grant date based on the fair value of the award. The Company issues stock-based compensation with only service-based vesting conditions and records the expense for these awards using the straight-line method. The Company recognizes forfeitures at the time forfeitures occur.

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to provision for income taxes. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.

The Company’s reporting currency is the U.S. dollar. The net assets of foreign subsidiaries where the local currencies have been determined to be the functional currencies are translated to U.S. dollars using current exchange rates and results of operations are translated using average exchange rates. The functional currency of the Company’s foreign subsidiaries is the local currency when it represents the monetary unit of account of the principal economic environment in which the Company’s foreign subsidiary operates. The gain or loss resulting from the process of translating foreign currency consolidated financial statements into US dollars is reflected as a foreign currency cumulative translation adjustment and reported as a component of accumulated other comprehensive loss.

The accounting treatment of derivative financial instruments requires that the Company record embedded features and any related freestanding instruments at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. The Company’s notes payable from the Ex-Im Credit Agreement contains a significant discount to be bifurcated from the host instrument, along with other bifurcated features related to events of default. Due to the low risk of default upon funding and through December 31, 2025, no value has been assigned to these features. The Company reassesses the classification of this derivative instrument at each balance sheet date.

Prior to the amendment of the Company’s certificate of incorporation on October 23, 2024, the Company calculated basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. Subsequent to the amendment, the Company’s convertible preferred stock is no longer a participating security. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive securities outstanding for the period.

The Company has generated a net loss for each of the three years presented. Accordingly, basic and diluted net loss per share attributable to common stockholders are the same because the inclusion of the potentially dilutive securities would be anti-dilutive. The net loss per share is the same under both the two-class method and the if-converted method, as the holders of the convertible preferred stock are not contractually obligated to participate in losses.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The new standard is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is still evaluating the effects of adopting this accounting standard on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public entities to disclose in the notes to the consolidated financial statements, of specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40): Disaggregation of Income Statement Expenses, Clarifying the Effective Date. ASU 2025-01 clarifies that the guidance in ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is still evaluating the effects of adopting this accounting standard on the consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which adds guidance to ASC 832 on the recognition, measurement, and presentation of government grants. ASU 2025-10 is effective for annual periods beginning after December 15, 2028, and interim reporting periods beginning after December 15, 2029. The Company does not anticipate that the standard will have a material impact on the consolidated financial statements.