A German flying taxi startup is expected to file for bankruptcy, US market regulators said on Thursday, a week after the firm failed to gain crucial state backing.

“Within the next few days”, the Munich-based Lilium company expects that its principal subsidiaries “will file for insolvency in the competent court in Germany,” a statement from the US Securities and Exchange Commission (SEC) said.

Lilium has been developing small electric-powered jets which can take off and land vertically but had yet to mount a manned test flight, with the first such trial not expected until next year.

In July, Saudi Arabia’s Saudia Group signed a sales agreement for 50 jets from Lilium, with options for the purchase of 50 more.

The SEC’s statement noted that last week the budget committee of the German parliament had refused to approve a loan guarantee for Lilium to the tune of 50 million euros ($54 million).

The firm has also not been able to strike a deal for such guarantees with the state of Bavaria.

The company’s failure to raise additional funds means that the managing directors of its subsidiaries “have determined that they are overindebted and are or will become unable to pay their existing liabilities due within the next few days,” the SEC said.

Lilium was founded in 2015 and employs more than 1,000 people.

Besides its headquarters and manufacturing facilities in Munich, it also has staff in several other locations in Europe and the United States.