Financial Analysis

COMMITMENTS AND CONTINGENCIES Commitments On May 25, 2021, the Company exercised its right to buy shares back from a former employee of the Company, to be paid over five years. In accordance with the fair value of the shares determined by the Company, as of September 30, 2025 and December 31, 2024, the Companys remaining liability for the share buy-back was $228 and $913, respectively. Legal Proceedings At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. As of September 30, 2025, the Company was not aware of any material existing, pending, or threatened legal actions against the Company. Indemnification Agreements As permitted under Delaware law, the Company indemnifies its officers, directors, and employees for certain events or occurrences while the officer or director is, or was, serving at the Companys request in such capacity. The term of the indemnification is for the officers or directors lifetime. Further, in the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infri …

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NOTES PAYABLE On December 13, 2023, the Company entered into a credit agreement with the Export-Import Bank of the United States (Ex-Im) (such agreement, the Ex-Im Credit Agreement). The Ex-Im Credit Agreement provides a $170,103 direct loan facility (the Ex-Im Credit Facility), which the Company drew $170,103 as of September 30, 2025 and December 31, 2024. Of the $170,103 in principal amount of borrowings made under the Ex-Im Credit Agreement, $151,250 can be used to finance the costs of construction of the Companys production facility, with the remaining $18,853, or 12.46% of borrowings, used to finance the total exposure fees incurred under the agreement. The discount of $20,207 as of December 31, 2024 consists of the initial exposure fee and debt issuance costs. As of September 30, 2025 and December 31, 2024, exposure fees were $18,853 and debt issuance costs were $1,354, which are amortized to interest expense on an effective interest rate basis over the term of the Ex-Im Credit Agreement. Borrowings under the Ex-Im Credit Agreement bear interest at a fixed rate per annum of 5.52%, payable quarterly in arrears. The effective per annum interest rate on the Companys outstanding borrowings under the Ex-Im Credit Agreement, which takes into account timing and amount of borrowings and payments, exposure fees, and debt issuance costs, is 7.32%. Borrowings under the Ex-Im Credit Agreement are required to be repaid in 54 quarterly installments, commencing on September 20, 2025, …

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The Companys revenues for customer type are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 U.S. Government $ 2,702 $ 892 $ 7,674 $ 5,271 Commercial customers 6,216 2,174 16,809 5,384 Total $ 8,918 $ 3,066 $ 24,483 $ 10,655 The Companys revenues for product or service type are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Product revenue $ 2,917 $ 799 $ 7,993 $ 1,395 Service revenue 6,001 2,267 16,490 9,260 Total $ 8,918 $ 3,066 $ 24,483 $ 10,655 …

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STOCK BASED COMPENSATION 2018 Equity Incentive Plan The amounts of stock based compensation expense recorded is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of product revenue $ 37 $ 11 $ 67 $ 11 Cost of service revenue 38 30 119 90 Research and development 2,051 1,802 5,877 4,021 General and administrative 3,079 2,724 10,756 5,050 Total stock based compensation $ 5,205 $ 4,567 $ 16,819 $ 9,172 During the nine months ended September 30, 2025, the Company approved modifications to certain incentive stock option awards in connection with the termination of service of an employee. These modifications resulted in an extension of the post-termination exercise period for vested awards and a change of vesting conditions for unvested awards. As a result of these modifications, the Company recorded additional stock based compensation of $3,799 during the nine months ended September 30, 2025. As of September 30, 2025 and December 31, 2024, the total number of shares of common stock that may be issued under the 2018 Plan was 25,084,129, of which 1,298,491 and 4,598,168, respectively, remained available for future grant.

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INCOME TAXES During the three months ended September 30, 2025 and 2024, the Company recorded $253 and $191 of tax expense. During the nine months ended September 30, 2025 and 2024, the Company recorded $580 and $246 of tax expense. For the three and nine months ended September 30, 2025 and 2024, the provision for income taxes differed from the United States federal statutory rate primarily due to the change in jurisdictional mix of earnings.

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LEASES The Companys lease arrangements consist of facility, vehicle, aircraft, and equipment leases, as well as other short-term leases for storage and office space. Sale-Leaseback Transaction In July 2025, the Company entered into a sale-leaseback transaction with a related party for two of its buildings with an initial leaseback term of 29 years. The sale-leaseback transaction was evaluated under the sale and leaseback guidance in ASC 842-40, Leases Sale and Leaseback Transactions. Due to the Company obtaining the ability to direct the use of and substantially all the benefits from the underlying assets, the transaction was accounted for as a debt financing. As a result, the Company continues to reflect the building in property and equipment, net, as if it were the legal owner, and continues to recognize depreciation expense over its estimated useful life. In July 2025, the Company recorded an initial financing liability of $32,658, net of transaction costs. As of September 30, 2025, the Company recognized $32,505 in notes payable, non-current. The Company will not recognize rent expense related to the leased assets. Instead, monthly rent payments are recorded as interest expense and a reduction of the outstanding liability. For the three and nine months ended September 30, 2025, payments of $701 representing interest expense were made under the financing. There have been no other material changes to the Companys leases during the three and nine months ended September 30, 2 …

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Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about a reporting entitys 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 condensed consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting 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 StatementReporting Comprehensive IncomeExpense 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 condensed consol …

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RELATED PARTY TRANSACTIONS The Company generates revenues and expenses from transactions with related parties, primarily through the Companys relationship with United Therapeutics Corporation, ARMI, and GE Aerospace, who have executives that are also on the Companys Board of Directors. These amounts are disclosed within the Companys unaudited condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive loss. Additionally, the Company enters into certain transactions with members of management for the lease of aircraft and property for use within the business. The aggregate expenses are not material and are included with general and administrative expenses for the three and nine months ended September 30, 2025 and 2024, respectively. Sale-Leaseback Transaction In July 2025, the Company entered into a sale-leaseback transaction for two of its buildings with an associated company of a board member. The Company received $32,658 in net proceeds from the sale with an initial leaseback term of 29 years. See Note 6 Leases for additional information on the sale-leaseback transaction. Series C Financing During the three months ended September 30, 2025, as part of the Series C financing, 5,397,160 shares of Series C Preferred Stock were purchased by certain of the Companys directors, their associated companies, and certain members of management. During the nine months ended September 30, 2025, as part of the Series C financing, 5,388,801 sh …

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REVENUE RECOGNITION Disaggregated Revenue The Company disaggregates revenue from contracts with customers by customer type, product, or service type, and geographic location, as the Company believes these categories best depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Companys revenues for customer type are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 U.S. Government $ 2,702 $ 892 $ 7,674 $ 5,271 Commercial customers 6,216 2,174 16,809 5,384 Total $ 8,918 $ 3,066 $ 24,483 $ 10,655 The Companys revenues for product or service type are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Product revenue $ 2,917 $ 799 $ 7,993 $ 1,395 Service revenue 6,001 2,267 16,490 9,260 Total $ 8,918 $ 3,066 $ 24,483 $ 10,655 The Companys revenue was derived from sales to customers in the United States for the three months ended September 30, 2025 and 2024 of $8,667 and $3,066 and the nine months ended September 30, 2025 and 2024 of $24,232 and $10,655, respectively. The Company generated $251 of revenue from international customers for the three and nine months ended September 30, 2025 and there was no revenue generated from international customers for the three and nine months ended September 30, 2024. Contract Balances The following table provides information about contract liabilities from cont …

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SEGMENT REPORTING The Company has one operating and reportable segment Development and Manufacturing Electric Aircrafts. The Company determined its reportable segment using the management approach based on how the chief operating decision maker (the CODM) evaluates the business. Substantially all Companys fixed assets are located in the United States and all of the Companys revenue is generated in the United States. The Companys foreign operations consist of expenses associated with engineering and related supporting administrative services. The Companys CODM is its Chief Executive Officer. As the Company has a single reportable segment and is managed on a consolidated basis, the measure of segment profit or loss is consolidated net loss as reported in the consolidated statements of operations and comprehensive loss. The CODM reviews the financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM does not use any segment asset measures to assess performance and decide how to allocate resources. The Company does not have intra-entity sales or transfers. The Companys reportable segment information is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 8,918 $ 3,066 $ 24,483 $ 10,655 Cost of revenues 2,741 1,189 5,670 3,299 Operating and other expenses Research and development 56,371 54,043 170,484 146 …

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CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY Common Stock As of September 30, 2025 and December 31, 2024, the Company had 239,813,390 and 223,340,884 shares of common stock authorized and 37,578,571 and 37,040,639 shares of common stock issued and outstanding, respectively. Each holder of the Companys common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Super Voting Common Stock During 2021, the Company authorized and issued 8,501,484 shares of super voting common stock, which remained outstanding as of September 30, 2025. The holder of the Companys super voting common stock, the Companys Chief Executive Officer, is entitled to forty votes for each share on all matters submitted to a vote of the stockholders, including the election of directors. Each share of super voting common stock is convertible into one share of common stock at any time. The size of the board of directors cannot be changed without the consent of the individual owning the shares of super voting common stock. The individual also retains the right to designate a majority of the board. As of September 30, 2025, two board members are designated by specific holders of the Preferred Stock. The election of the remaining minority board members is submitted to a vote of the stockholders. Preferred Stock The Companys certificate of incorporation, as amended, designates and authorizes the Company to issue 141,365,814 s …

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SUBSEQUENT EVENTS Subsequent to September 30, 2025, the Company issued 1,866,989 shares of the Series C-1 Preferred Stock offering that provided aggregate net proceeds of $33,491 from an entity affiliated with one of the Companys board members. In connection with the issuance, the Company recorded a loss on the issuance of Preferred Stock of $24,067 as a result of the difference between the estimated fair value of the Series C-1 Preferred Stock as of the closing date and the purchase price per share. On October 15, 2025, following the approval of the stockholders of the Company, and effective upon the consummation of the IPO, the Board adopted the BETA Technologies Omnibus Incentive Plan (the 2025 Plan). The 2025 Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) performance awards, (v) other share-based awards and (vi) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The initial number of shares of common stock reserved for issuance under the 2025 Plan is 36,207,812 shares of Class A common stock. The total number of shares reserved for issuance under the 2025 Plan increases on January 1 of each of the first 10 calendar years during the term of the 2025 Plan by the lesser of: (i) a number of shares of our common stock equal to 5% of the total number of shares of the Companys Class A common stock outstanding on December 31 of the preceding calendar year or (ii) a les …

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