Recent Business Highlights
- Achieved the significant milestone of producing our first
domestic fuel cell stack and system, ahead of schedule, utilizing
our proprietary in-house membrane electrode assembly ("MEA")
production line
- Signed definitive agreement to increase ownership in Hyzon
Motors Europe B.V. from 50.5% to 75%
- Entered into a vehicle supply agreement with Hylane for 5
additional Hyzon fuel cell trucks, bringing total Hylane agreements
to 23 trucks
- Significant progress in UN Demonstration City, Foshan China;
won a public procurement bid for up to $8
million to supply municipal trucks to Hanjie Urban
Environmental Management Co., Ltd in addition to the previously
announced 8 Hyzon trucks for trial under the Foshan Dump Truck
Association MoU
- Recorded first sales of fuel cells to customers validating
applications outside of vehicles, one of which went to
ZeroAvia
- Appointed Samuel Chong Chief
Financial Officer with Mark Gordon
transitioned to a Senior Advisor role
ROCHESTER, N.Y., May 6, 2022
/PRNewswire/ -- Hyzon Motors Inc. (NASDAQ: HYZN) ("Hyzon" or the
"Company"), a leading global supplier of zero-emission fuel cell
electric heavy-duty vehicles, today announced first quarter 2022
financial and operational results.
"We celebrated the significant achievement of building our first
American-made heavy truck fuel cells for validation and
testing. This milestone is the realization of our vision for
Hyzon, which showcases our proprietary intellectual property and
manufacturing capabilities. We are leading the way to replace
diesel engines in the commercial transport sector while unlocking
other opportunities in hydrogen ecosystems and global
decarbonization. In addition, we delivered fuel cell systems
to ZeroAvia for aviation and another confidential customer, both
which expands the total addressable market for our core fuel cell
technology," said Hyzon Chief Executive Officer Craig Knight.
"In the first quarter, Hyzon commenced the first North American
trial of our heavy-duty fuel cell truck with Total Transportation
Services Inc. ("TTSI") for daily drayage operations at the Port of
Long Beach. To further our progress in North America, we plan to unveil our
customer-led solution to mitigate supply chain constraints and
decarbonize fleets faster at the Advanced Clean Technology Expo in
Long Beach, CA next week.
Additionally, we have identified multiple sites in California for hydrogen production hubs which
are tied to trial-led customer demand, and we are shaping
dispensing solutions with our partners for near-term customer
needs," continued Mr. Knight.
Regarding the definitive agreement to increase Hyzon's stake in
Hyzon Motors Europe B.V. from 50.5% to 75% ownership, Hyzon Chief
Financial Officer Samuel Chong
stated, "This is a significant strategic accomplishment to enhance
the long-term value of our company. Our focus and commitment
to Europe is evident and we are
excited to meet the burgeoning demand for zero emission vehicles as
investments in hydrogen infrastructure accelerate."
Overall, Mr. Knight concluded, "Hyzon is uniquely positioned to
capture the significant momentum in decarbonization mandates in
Asia, Europe, Australia and North
America."
First Quarter 2022 Financial and Operational
Results
For the first quarter ended March 31, 2022, the Company
reported revenue of $0.4 million,
total operating expenses of $27.1
million and net loss attributable to Hyzon of $8.5 million, resulting in basic and diluted loss
per share of $0.03. Net loss included
non-cash gains from a change in fair value of an earnout liability
of $3.3 million and private placement
warrant liability of $1.5
million. In addition, we recognized a non-cash gain of
$12.5 million due to a fair value
change in equity securities related to our Raven investment.
First quarter operating expenses were comprised of $6.2 million in research and development and
$20.5 million in selling, general,
and administrative expenses. For the prior year first quarter ended
March 31, 2021, the Company reported a net loss attributable
to Hyzon of $8.1 million, resulting
in basic and diluted loss per share of $0.05.
As of March 31, 2022, the Company had $407.3 million in cash and had approximately
247.9 million shares of Class A common stock outstanding.
Non-GAAP Financial Measures
The Company reported EBITDA of $(9.6)
million for the three months ended March 31, 2022. The
Company reported Adjusted EBITDA of $(22.0)
million for the three months ended March 31, 2022. For the three months ended
March 31, 2022, Adjusted EBITDA
adjustments are primarily driven by (a) non-cash items from change
in fair value of earnout liability of $(3.3)
million, private placement warrant liability of $(1.5) million, and equity securities of
$(12.5) million for a total of
$(17.3) million; (b) stock-based
compensation of $2.1 million and (c)
regulatory and legal expense of $2.7 million. These non-GAAP
financial measures have been reconciled to the nearest GAAP measure
in the tables under "Non-GAAP Financial Measures" within this press
release.
Conference Call Information
The Hyzon management team will host a conference call to discuss
its first quarter 2022 financial and operational results on
Friday, May 6, 2022, at 8:30 a.m. Eastern Time. The call can be accessed
via a live webcast accessible on the Events & Presentations
page in the Investor Relations section of Hyzon's website at
www.hyzonmotors.com. An archive of the webcast will be available
for a period of time shortly after the call on the Investor
Relations section of Hyzon's website as well.
About Hyzon Motors Inc.
Hyzon is a global leader in fuel cell electric mobility, with US
operations in the Rochester,
Chicago and Detroit areas, and international operations in
the Netherlands, China, Singapore, Australia, and Germany. Hyzon is an energy transition
accelerator and technology innovator, providing end-to-end
solutions primarily for the commercial mobility sector with a focus
on the commercial vehicle market and hydrogen supply
infrastructure. Utilizing its proven and proprietary hydrogen fuel
cell technology, Hyzon aims to supply zero-emission heavy duty
trucks and buses to customers in North
America, Europe and around
the world to mitigate emissions from diesel transportation, which
is one of the single largest sources of carbon emissions globally.
The Company is contributing to the escalating adoption of fuel cell
electric vehicles through its demonstrated technology advantage,
leading fuel cell performance and history of rapid innovation.
Visit www.hyzonmotors.com.
Use of Non-GAAP Financial Information
To supplement its consolidated balance sheet and statement of
operations and comprehensive loss, which are prepared and presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), Hyzon Motors Inc. reports EBITDA and Adjusted EBITDA
which are non-GAAP financial measures. EBITDA is determined by
taking net loss and adding interest, depreciation and amortization.
Adjusted EBITDA is determined by taking EBITDA and adding non-cash
stock-based compensation expense, change in fair value of private
placement warrant liability, change in fair value of earnout
liability, change in fair value of equity securities, and
other special items determined by management. We believe that these
non-GAAP measures, viewed in addition to and not in lieu of our
reported GAAP results, provides useful information to investors by
providing a more focused measure of operating results, enhances the
overall understanding of past financial performance and future
prospects, and allows for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP measures presented herein may not be
comparable to similarly titled measures presented by other
companies. EBITDA and Adjusted EBITDA are non-GAAP financial
measures, see "Use of Non-GAAP Financial Information" below for
important information regarding these non-GAAP financial
measures.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of present or
historical fact included in this press release, are forward-looking
statements. When used in this press release, the words "could,"
"should," "will," "may," "believe," "anticipate," "intend,"
"estimate," "expect," "project," the negative of such terms and
other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on management's current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. Except as otherwise required
by applicable law, Hyzon disclaims any duty to update any forward
-looking statements, all of which are expressly qualified by the
statements in this section, to reflect events or circumstances
after the date of this press release. Hyzon cautions you that these
forward-looking statements are subject to numerous risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the control of Hyzon, including risks and
uncertainties described in the "Risk Factors" section of
Hyzon's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the U.S. Securities
and Exchange Commission (the "SEC") on March
30, 2022, our Amended Registration Statement on Form S-1
filed with the SEC on April 6, 2021,
and other documents filed by Hyzon from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements,
such as risks related to the ability to convert non-binding
memoranda of understanding into binding orders or sales (including
because of the current or prospective financial resources of the
counterparties to Hyzon's non-binding memoranda of understanding
and letters of intent), the ability to identify additional
potential customers and convert them to paying customers, or the
ability to manufacture new vehicles, including as a result of
disruptions to the supply chain Hyzon gives no assurance that
Hyzon will achieve its expectations.
HYZON MOTORS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
|
(in thousands,
except share and per share amounts)
|
|
March 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash equivalents
|
$
407,333
|
|
$
445,146
|
Accounts receivable
|
774
|
|
2,598
|
Related party receivable
|
417
|
|
264
|
Inventory
|
26,082
|
|
19,245
|
Prepaid expenses and other current assets
|
29,951
|
|
27,970
|
Total current
assets
|
464,557
|
|
495,223
|
Property, plant, and
equipment, net
|
18,249
|
|
14,311
|
Right-of-use
assets
|
10,970
|
|
10,265
|
Investments in equity
securities
|
17,478
|
|
4,948
|
Other assets
|
6,146
|
|
5,430
|
Total
Assets
|
$
517,400
|
|
$
530,177
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
|
$
7,938
|
|
$
8,430
|
Accrued liabilities
|
9,034
|
|
6,026
|
Related party payables
|
648
|
|
3,633
|
Contract liabilities
|
11,063
|
|
11,230
|
Current portion of lease liabilities
|
2,409
|
|
1,886
|
Total current
liabilities
|
31,092
|
|
31,205
|
Long term
liabilities
|
|
|
|
Lease liabilities
|
9,249
|
|
8,830
|
Private placement warrant liability
|
13,705
|
|
15,228
|
Earnout liability
|
100,520
|
|
103,761
|
Other liabilities
|
1,243
|
|
1,296
|
Total
liabilities
|
$
155,809
|
|
$
160,320
|
Commitments and
contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.0001
par value; 400,000,000 shares authorized, 247,881,568
and 247,758,412 shares issued and outstanding
as of March 31, 2022 and
December 31, 2021,
respectively.
|
25
|
|
25
|
Additional paid-in
capital
|
404,992
|
|
403,016
|
Accumulated
deficit
|
(36,656)
|
|
(28,117)
|
Accumulated other
comprehensive gain
|
486
|
|
373
|
Total Hyzon Motors Inc.
stockholders' equity
|
368,847
|
|
375,297
|
Noncontrolling
interest
|
(7,256)
|
|
(5,440)
|
Total Stockholders'
Equity
|
361,591
|
|
369,857
|
Total Liabilities
and Stockholders' Equity
|
$
517,400
|
|
$
530,177
|
HYZON MOTORS INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(in thousands, except per share
amounts)
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Revenue
|
|
$
356
|
|
$
—
|
Operating expense:
|
|
|
|
|
Cost of
revenue
|
|
424
|
|
—
|
Research and
development
|
|
6,212
|
|
627
|
Selling, general, and
administrative
|
|
20,470
|
|
3,146
|
Total operating
expenses
|
|
27,106
|
|
3,773
|
Loss from
operations
|
|
(26,750)
|
|
(3,773)
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Change in fair value of private placement warrant
liability
|
|
1,523
|
|
—
|
Change in fair value of earnout liability
|
|
3,241
|
|
—
|
Change in fair value of equity securities
|
|
12,530
|
|
—
|
Foreign currency exchange loss and other expense
|
|
(1,057)
|
|
(28)
|
Interest income (expense), net
|
|
17
|
|
(4,588)
|
Total other income
(expense)
|
|
16,254
|
|
(4,616)
|
Net loss
|
|
$
(10,496)
|
|
$
(8,389)
|
Less: Net loss
attributable to noncontrolling interest
|
|
(1,957)
|
|
(242)
|
Net loss attributable to Hyzon
|
|
$
(8,539)
|
|
$
(8,147)
|
|
|
|
|
|
Comprehensive loss:
|
|
|
|
|
Net loss
|
|
$
(10,496)
|
|
$
(8,389)
|
Foreign currency
translation adjustment
|
|
254
|
|
(29)
|
Comprehensive loss
|
|
$
(10,242)
|
|
$
(8,418)
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
141
|
|
(233)
|
Comprehensive loss attributable to
Hyzon
|
|
$
(10,383)
|
|
$
(8,185)
|
Net loss per share attributable to
Hyzon:
|
|
|
|
|
Basic
|
|
$
(0.03)
|
|
$
(0.05)
|
Diluted
|
|
$
(0.03)
|
|
$
(0.05)
|
Weighted average common shares
outstanding:
|
|
|
|
|
Basic
|
|
247,940
|
|
166,201
|
Diluted
|
|
247,940
|
|
166,201
|
Non-GAAP Financial Measures
|
The following table
reconciles net loss to EBITDA and
Adjusted EBITDA (in thousands):
|
|
|
Three Months
Ended
March 31,
|
|
2022
|
|
2021
|
Net
loss
|
$
(10,496)
|
|
$
(8,389)
|
Plus
(Less):
|
|
|
|
Interest income
(expense), net
|
17
|
|
(4,588)
|
Income tax expense
(benefit)
|
—
|
|
—
|
Depreciation and
amortization
|
912
|
|
55
|
EBITDA
|
$
(9,567)
|
|
$
(12,922)
|
|
|
|
|
Adjusted
for:
|
|
|
|
Change in fair value of
private placement warrant liability
|
(1,523)
|
|
—
|
Change in fair value of
earnout liability
|
(3,241)
|
|
—
|
Change in fair value of
equity securities
|
(12,530)
|
|
—
|
Stock-based
compensation
|
2,133
|
|
290
|
Regulatory and legal
matters (1)
|
2,730
|
|
—
|
Adjusted EBITDA
|
$
(21,998)
|
|
$
(12,632)
|
|
|
(1)
|
Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with the short-seller analyst article
from September 2021, and investigations and litigation related
thereto.
|
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SOURCE Hyzon Motors Inc.