BOLINGBROOK, Ill., May 13, 2024
/PRNewswire/ -- Hyzon (NASDAQ: HYZN) (Hyzon or the Company), a
U.S.-based manufacturer and global supplier of high-performance
hydrogen fuel cell systems focused on providing zero-emission power
to decarbonize the most demanding industries, today announced its
first quarter 2024 financial and operating results:
Recent Highlights
- First quarter 2024 Revenue of $10.0
million as compared to no revenue in the prior-year period,
demonstrating material progress in customer acceptance and
completion of commercial cycle
- Announced Joint Development Agreement with New Way Trucks,
North America's largest private
refuse manufacturer, and unveiled first hydrogen-powered refuse
truck for U.S. market at WasteExpo in May; trials with major refuse
collection fleets expected to begin summer 2024
- Completed five 200kW C-sample Fuel Cell Systems (FCS) in Q1 and
five additional 200kW FCSs in April, remaining on track for Start
of Production (SOP) of 200kW FCS in second half of 2024
- Successfully completed four-month refuse truck trial with
REMONDIS Australia, converting to full vehicle sale
- Launched 200kW fuel cell system integrated in Australian
heavy-duty cabover truck, with first SOP of Class 8 200kW Fuel Cell
Electric Vehicle (FCEV) expected in second half of 2024
- R&D, SG&A, and net cash burn, excluding the first SEC
settlement payment and the proceeds from the sale of the
Rochester facility, all came in at
or below the low-end of Company guidance ranges for the first
quarter of 2024
"I am pleased with our start to 2024, during which we have built
upon the commercial and technology inflection points we achieved in
2023," said Hyzon Chief Executive Officer Parker Meeks. "We've successfully completed the
commercial cycle for vehicles deployed last year, evident in our
quarterly revenue progression. We continue to receive positive data
and feedback from initial vehicle deployments. Last week, we
unveiled the first U.S. fuel cell refuse vehicle with New Way, and
we eagerly anticipate commencing trials for this vehicle and the
200kW Class 8 fuel cell truck this summer. We remain on schedule
for the SOP of our single stack 200kW fuel cell system in the
latter half of this year, and are enhancing manufacturing
efficiencies and expanding our facility capabilities. I am highly
encouraged by the progress we have made and the strength of the
Hyzon platform as we progress through the balance of 2024."
First Quarter 2024 Business Highlights
Commercial Progress
Hyzon unveiled the first fuel cell electric refuse truck for the
U.S. market with New Way Trucks, the largest private refuse
equipment manufacturer in North
America, at the WasteExpo in Las
Vegas, Nev. earlier this month. After seeing the strong
operational performance of the Company's Australian refuse truck
over a four-month customer trial in the second half of 2023, Hyzon
accelerated this vehicle development to bring the zero-emission
platform to North America.
In Q1, Hyzon delivered one Class 8 fuel cell truck to a drayage
customer at the Ports of Los
Angeles and Long Beach, the
largest port drayage fleet in the U.S.
Hyzon continues to receive positive feedback from Performance
Food Group (PFG) in California as
they gain operational experience through the four FCEVs delivered
to them in December 2023. Pending a
successful 200kW vehicle trial planned for summer 2024, Hyzon
expects to work with PFG on an expanded agreement for 15 200kW
FCEVs, as well as a potential option for 30 more FCEVs.
In March, Hyzon launched its single stack 200kW fuel cell system
and powertrain, integrated into a heavy-duty cabover vehicle, a
familiar design for fleets in Australia, New
Zealand, and Europe. The
Company expects to deploy 200kW cabover vehicles in Australia and New
Zealand and 200kW conventional vehicles in the U.S. later
this year.
Growing Government Support for Clean Energy
Initiatives
The Inflation Reduction Act earmarks $2.6
billion for the Environmental Protection Agency's Clean
Ports Program. As initial examples, Hyzon is actively supporting
two of the top ten ports in the country in their applications under
the Clean Ports Program which have the ambition to deploy up to 100
trucks in a single application.
The Department of Energy also awarded $750 million funded by the Bipartisan
Infrastructure Law (BIL) to companies advancing clean hydrogen
technologies, including a project on which Hyzon is a partner.
Hyzon has also recently submitted a concept paper as the lead
applicant under an additional $425
million BIL funding program, which if selected, may provide
up to $14 million to help fund future
expansions of the Bolingbrook fuel
cell facility.
Single Stack 200kW Fuel Cell System C-Sample Development
Update
Hyzon continues to progress its C-sample development to meet all
technical requirements to reach SOP for its single stack 200kW fuel
cell system in the second half of 2024. The Company completed five
C-sample systems in the first quarter using production tooling and
an additional five systems in April, while continuing to advance
rigorous durability testing to remain on track for SOP.
Concurrently, the Company has been working to drive greater
efficiency in its manufacturing operations as it prepares for SOP
at its Bolingbrook fuel cell
facility. In the first quarter, it increased its daily single cell
production rate by over 2.5 times.
Hyzon expects its 200kW FCS annual production capacity to be 700
systems on three shifts with less than $3
million of capital expenditures remaining to achieve SOP and
the targeted initial capacity. Capital-efficient capacity
expansions are planned as demand continues to grow.
First Quarter 2024 Financial Updates
"We recognized first quarter revenue of $10.0 million compared to no revenue in the
comparable prior-year period. Hyzon believes that this reflects a
significant customer and financial milestone for the Company – an
amount this quarter approximately equal to the total revenue
recorded prior to this quarter and since the Company's inception,"
said Hyzon Chief Financial Officer Stephen
Weiland. "While an important validator and reflection of
customer acceptance, we do expect near-term fluctuations in revenue
recognition given the timing of deployments and contract terms. We
were also pleased that R&D, SG&A, and net cash burn
excluding the first SEC settlement payment and the proceeds from
the sale of our Rochester
facility, all came in at or below the low-end of our guidance
ranges for the quarter."
As of March 31, 2024, unrestricted
cash, cash equivalents, and short-term investments were
$82.6 million, representing a net
cash burn of $29.6 million from the
December 31, 2024 balance of
$112.3 million. Net cash burn,
excluding the $8.5 million first SEC
settlement payment and approximately $2.9
million in proceeds received from the sale of the Company's
Rochester facility, came to
$24.0 million for the first quarter
of 2024. Excluding these items, and consistent with Company
guidance for the quarter, this represented the lowest quarterly net
cash burn over the last ten quarters and the fifth consecutive
quarter of declining net cash burn.
Conference Call Information
The Hyzon management team will host a conference call to discuss
its first quarter financial results on Monday, May 13, 2024 at 4:30 p.m. Eastern Time.
Participants can join the call at 1-888-800-7840 or
international callers can use 1-646-307-1856 and enter the access
code 5240234. To listen to the live audio webcast and Q&A,
visit the Hyzon investor relations website at
https://investors.hyzonfuelcell.com/.
About Hyzon
Hyzon is a global supplier of high-performance hydrogen fuel
cell technology focused on providing zero-emission power to
decarbonize demanding industries. With agile, high-power technology
designed for heavy-duty applications, Hyzon is at the center of a
new industrial revolution fueled by hydrogen, an abundant and clean
energy source. Hyzon focuses on deploying its fuel cell technology
in heavy-duty commercial vehicles across North America, Europe, and Australia/New
Zealand today and in tomorrow's power generation and energy
storage, mining, construction, rail, marine, and airport
ecosystems. To learn more about how Hyzon partners across the
hydrogen value chain to accelerate the clean energy transition,
visit www.hyzonfuelcell.com.
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 herein, the words "aim," "could," "should,"
"will," "may," "believe," "anticipate," "intend," "estimate,"
"expect," "project," "outlook," "guidance," 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. 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 events or circumstances after the
date of this press release. Hyzon cautions you that 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, but not limited to, the following: our
ability to raise needed capital in sufficient time or amount; our
ability to commercialize our products and strategic plans,
including our ability to establish facilities to produce our fuel
cells, assemble our vehicles or secure hydrogen supply in
appropriate volumes, at competitive costs, or competitive emissions
profiles; our ability to compete effectively in the heavy-duty
transportation sector, and withstand intense competition and
competitive pressures from other companies worldwide in the
industries in which we operate; our ability to convert non-binding
memoranda of understanding into binding orders or sales (including
because of the current or prospective resources of our
counterparties) and the ability of our counterparties to make
payments on orders; our ability to invest in hydrogen production,
distribution, and refueling operations to supply our customers with
hydrogen at competitive costs to operate their fuel cell electric
vehicles; disruptions to the global supply chain, including as a
result of geopolitical events, and shortages of raw materials, and
the related impacts on our third-party suppliers and assemblers;
our ability to maintain the listing of our common stock on the
Nasdaq Global Select Market; our ability to retain or recruit, or
changes required in, our officers, key employees, or directors; our
ability to protect, defend, or enforce our intellectual property on
which we depend; and the impacts of legal proceedings, regulatory
disputes, and governmental inquiries.
HYZON MOTORS INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (in thousands, except share and per share
amounts) (unaudited)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
52,408
|
|
$
112,280
|
Short-term
investments
|
30,232
|
|
—
|
Accounts
receivable
|
3,960
|
|
498
|
Unbilled
receivable
|
52
|
|
1,599
|
Inventory
|
22,683
|
|
28,811
|
Prepaid expenses and
other current assets
|
8,749
|
|
9,335
|
Total current
assets
|
118,084
|
|
152,523
|
Property, plant, and
equipment, net
|
15,809
|
|
18,569
|
Right-of-use
assets
|
4,343
|
|
4,741
|
Equity method
investments
|
8,353
|
|
8,382
|
Investments in equity
securities
|
763
|
|
763
|
Other assets
|
6,360
|
|
6,157
|
Total
Assets
|
$
153,712
|
|
$
191,135
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
2,399
|
|
$
1,479
|
Accrued
liabilities
|
25,891
|
|
30,116
|
Related party
payables
|
146
|
|
265
|
Contract
liabilities
|
4,331
|
|
8,872
|
Current portion of
lease liabilities
|
1,697
|
|
1,821
|
Total current
liabilities
|
34,464
|
|
42,553
|
Long term
liabilities
|
|
|
|
Lease
liabilities
|
5,280
|
|
5,733
|
Private placement
warrant liability
|
641
|
|
160
|
Earnout
liability
|
5,552
|
|
1,725
|
Accrued SEC
settlement
|
8,078
|
|
8,000
|
Other
liabilities
|
1,106
|
|
2,964
|
Total
Liabilities
|
$
55,121
|
|
$
61,135
|
Commitments and
contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.0001
par value; 400,000,000 shares authorized, 245,214,777 and
245,081,497
shares issued and outstanding as of
March 31, 2024 and December 31, 2023,
respectively.
|
25
|
|
25
|
Treasury stock, at
cost; 3,769,592 shares as of March 31, 2024 and
December 31, 2023,
respectively.
|
(6,446)
|
|
(6,446)
|
Additional paid-in
capital
|
382,669
|
|
380,261
|
Accumulated
deficit
|
(276,865)
|
|
(242,640)
|
Accumulated other
comprehensive loss
|
(41)
|
|
(514)
|
Total Hyzon Motors
Inc. stockholders' equity
|
99,342
|
|
130,686
|
Noncontrolling
interest
|
(751)
|
|
(686)
|
Total Stockholders'
Equity
|
98,591
|
|
130,000
|
Total Liabilities
and Stockholders' Equity
|
$
153,712
|
|
$
191,135
|
HYZON MOTORS INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except
per share amounts) (unaudited)
|
|
|
Three Months
Ended March
31,
|
|
2024
|
|
2023
|
Revenue
|
$
9,983
|
|
$
—
|
Operating
expense:
|
|
|
|
Cost of
revenue
|
7,816
|
|
838
|
Research and
development
|
10,829
|
|
9,340
|
Selling, general, and
administrative
|
21,528
|
|
30,857
|
Restructuring and
related charges
|
501
|
|
—
|
Total operating
expenses
|
40,674
|
|
41,035
|
Loss from
operations
|
(30,691)
|
|
(41,035)
|
Other income
(expense):
|
|
|
|
Change in fair value
of private placement warrant liability
|
(481)
|
|
641
|
Change in fair value
of earnout liability
|
(3,827)
|
|
6,420
|
Foreign currency
exchange gain (loss) and other expense, net
|
(527)
|
|
1,150
|
Investment income and
interest income, net
|
1,224
|
|
2,566
|
Total other income
(expense)
|
(3,611)
|
|
10,777
|
Loss before income
taxes
|
$
(34,302)
|
|
$
(30,258)
|
Income tax
expense
|
—
|
|
—
|
Net
loss
|
$
(34,302)
|
|
$
(30,258)
|
Less: Net loss
attributable to noncontrolling interest
|
(77)
|
|
(10)
|
Net loss
attributable to Hyzon
|
$
(34,225)
|
|
$
(30,248)
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
Net
loss
|
$
(34,302)
|
|
$
(30,258)
|
Foreign currency
translation adjustment
|
485
|
|
(804)
|
Net change in
unrealized gain (loss) on short-term investments
|
—
|
|
(297)
|
Comprehensive
loss
|
$
(33,817)
|
|
$
(31,359)
|
Less: Comprehensive
income (loss) attributable to noncontrolling interest
|
(65)
|
|
(17)
|
Comprehensive loss
attributable to Hyzon
|
$
(33,752)
|
|
$
(31,342)
|
Net loss per share
attributable to Hyzon:
|
|
|
|
Basic
|
$
(0.14)
|
|
$
(0.12)
|
Diluted
|
$
(0.14)
|
|
$
(0.12)
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
245,127
|
|
244,541
|
Diluted
|
245,127
|
|
244,541
|
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SOURCE Hyzon