Reaffirms 2022 Guidance
Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrated solar energy technology, today provided its
second quarter 2022 financial and operational results and
reaffirmed its previously announced guidance for 2022.
Second Quarter 2022 Highlights
- Finalized and executed a lease for Brenda Solar Energy Zone
with U.S. Bureau of Land Management
- Announced partnership with Hanwha Power Systems for the
production of a 5 megawatt electric (MWe) next-generation
supercritical CO2 power block integrated with high-temperature
solid media thermal energy storage designed by Heliogen and to be
deployed with the Woodside project
Recent Highlights
- Entered into a letter of intent with Dimensional Energy for the
production of sustainable aviation fuel
- Completed installation of fourth generation heliostats at
Heliogen’s Lancaster demonstration facility
- Manufactured, deployed and began testing of the first
commercial configuration of Heliogen’s autonomous cleaning vehicle
at the Lancaster demonstration facility
Executive Commentary
“During the second quarter, Heliogen continued its steady
progress toward achieving our vision of producing clean solar
thermal energy for heavy industry through use of our
groundbreaking, AI-enabled concentrated solar thermal energy
technology,” said Bill Gross, Founder and Chief Executive Officer
of Heliogen. “By signing additional customer agreements, expanding
relationships with supply chain partners, and ramping up our
manufacturing facilities, Heliogen is positioning itself to power
the transition of global heavy industry to clean, renewable sources
of heat, power and green hydrogen. We remain on track to meet our
guidance for 2022.
“In addition to the exciting announcements we have made over the
last several months, Heliogen recently completed the installation
of our fourth generation heliostats at our Lancaster, California
demonstration facility. These new heliostats are designed to be
manufactured, installed and maintained more efficiently, without
sacrificing performance or reliability. This is one example of our
ability to iterate and innovate rapidly to reduce our cost
structure and improve our margins. I am also pleased with the
progress we have made at our Long Beach manufacturing facility,
where we are getting ready to begin high-volume automated heliostat
manufacturing during the early part of the fourth quarter of
2022.”
“In sum, Heliogen is progressing on all fronts toward the goals
we set for 2022, and I am incredibly proud of the entire team for
their efforts which have put us in this position.”
Letter of Intent with Dimensional Energy
Heliogen and Dimensional Energy, a sustainable fuels company,
recently entered into a non-binding letter of intent (“LOI”) to
jointly produce sustainable aviation fuel (“SAF”) at Heliogen’s
concentrated solar thermal demonstration facility in Lancaster,
California. This first-of-its-kind collaboration aims to create a
reserve of jet fuel created from sunlight and air to enable the
rapid decarbonization of the aviation industry. The LOI is subject
to negotiation and execution of a definitive agreement.
The companies will work to deploy Heliogen’s proprietary,
artificial intelligence (AI)-powered HelioHeat™ technology to
convert sunlight directly into thermal energy in the form of high
temperature steam and air that will be used to produce green
hydrogen for Dimensional Energy’s Reactor platform. The hydrogen
will be produced leveraging the previously announced successful
demonstration of Heliogen’s concentrated solar technology. As part
of the collaboration between Heliogen and Dimensional Energy, the
LOI includes a goal of building a fully integrated ~1 barrel per
day drop-in ready SAF demonstration. The parties expect a
demonstration project to be a first step to develop a pipeline for
approximately 3 million barrels of fuel over the next ten
years.
2022 Guidance Reaffirmed
Heliogen today also reaffirmed its previously announced 2022
guidance of two to three modules contracted and $20 - $25 million
of revenue. Heliogen believes the number of modules contracted is
the most useful indicator of demand for its products and technology
at this stage in its lifecycle. Over time, Heliogen expects these
contracts to be converted to revenue as the projects are installed,
although there is no assurance as to the time period for such
conversion.
Second Quarter 2022 Financial Results
For the second quarter 2022, Heliogen reported total revenue of
$2.4 million, total operating expenses of $28.7 million and net
loss of $20.2 million. Heliogen’s net loss was driven primarily by
the growth of Heliogen’s commercial operations which includes
increased headcount, non-cash stock-based compensation expense of
$11.5 million, and other costs related to being a public company.
Heliogen’s Adjusted EBITDA, which excludes the non-cash stock-based
compensation expense and other impacts, was negative $19.8 million
for the second quarter 2022.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its second quarter 2022 financial results on Thursday,
August 11, 2022, at 10:00 a.m. EDT. The call can be accessed via a
live webcast accessible on the Events & Presentations page in
the Investor Relations section of Heliogen’s website at
www.heliogen.com. The call can also be accessed live via telephone
by dialing 1-877-407-0789 (1-201-689-8562 for international
callers) and referencing Heliogen.
An archive of the webcast will also be available shortly after
the call on the Investor Relations section of Heliogen’s
website.
About Heliogen
Heliogen is a renewable energy technology company focused on
eliminating the need for fossil fuels in heavy industry and
powering a sustainable future. Heliogen’s AI-enabled, modular
concentrated solar technology aims to cost-effectively deliver near
24/7 carbon-free energy in the form of heat, power, or green
hydrogen fuel at scale – for the first time in history. Heliogen
was created at Idealab, the leading technology incubator founded by
Bill Gross in 1996. For more information about Heliogen, please
visit Heliogen.com.
Use of Non-GAAP Financial Information
Management uses certain financial measures, including EBITDA and
Adjusted EBITDA, to evaluate our financial and operating
performance that are calculated and presented on the basis of
methodologies other than in accordance with GAAP. We believe these
non-GAAP financial measures are useful to investors and analysts to
assess our ongoing financial performance because they provide
improved comparability between periods through the exclusion of
certain items that we believe are not indicative of our core
operating performance, enhance the overall understanding of our
past financial performance and future prospects, and remove items
that may obscure our underlying business results and trends. These
measures should not be considered a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP,
and our calculations thereof may not be comparable to similarly
titled measures reported by other companies. Please see the
accompanying tables for reconciliations of the following non-GAAP
financial measures for Heliogen’s current and historical results:
EBITDA and Adjusted EBITDA.
Forward-Looking Statements
This press release contains certain 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. Statements that are not historical in nature, including
the words “anticipate,” “expect,” “suggests,” “plan,” “believe,”
“intend,” “estimates,” “targets,” “projects,” “should,” “could,”
“would,” “may,” “will,” “forecast” and other similar expressions
are intended to identify forward-looking statements. These
forward-looking statements include, but are not limited to,
statements regarding our guidance for full-year 2022, the
development of our manufacturing and production facilities,
maintaining our trajectory in 2022, achieving our financial and
operational goals, progress with potential customers and future
growth opportunities. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release, including but not limited to: (i)
our financial and business performance, including risk of
uncertainty in our financial projections and business metrics and
any underlying assumptions thereunder; (ii) our ability to execute
our business model, including market acceptance of our planned
products and services and achieving sufficient production volumes
at acceptable quality levels and prices; (iii) our ability to
access sources of capital to finance operations, growth and future
capital requirements; (iv) our ability to maintain and enhance our
products and brand, and to attract and retain customers; (v) our
ability to scale in a cost effective manner; (vi) changes in
applicable laws or regulations; (vii) the ongoing impacts of the
COVID-19 pandemic and the potential impacts of Russia’s invasion of
Ukraine on our business; (viii) developments and projections
relating to our competitors and industry; (ix) our ability to
access sources of capital to finance operations, growth and future
capital requirements; and (x) our ability to protect our
intellectual property. You should carefully consider the foregoing
factors and the other risks and uncertainties disclosed in the
“Risk Factors” section in Part I, Item 1A in our Annual Report on
Form 10-K/A for the annual period ended December 31, 2021 and other
documents filed by Heliogen 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.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Heliogen assumes no obligation and does not intend
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise.
Heliogen, Inc.
Condensed Consolidated Balance
Sheets
($ in thousands)
(unaudited)
June 30,
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
60,731
$
190,081
Investments, available-for-sale
115,142
32,332
Other current assets
13,921
4,770
Total current assets
189,794
227,183
Non-current assets
47,783
30,265
Total assets
$
237,577
$
257,448
LIABILITIES AND SHAREHOLDERS’
EQUITY
Trade payables
$
3,916
$
4,645
Contract liabilities
8,521
513
Contract loss provisions
30,923
397
Other current liabilities
5,794
6,974
Total current liabilities
49,154
12,529
Long-term liabilities
19,477
30,861
Total liabilities
68,631
43,390
Shareholders’ equity
168,946
214,058
Total liabilities and shareholders’
equity
$
237,577
$
257,448
Heliogen, Inc.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
($ in thousands, except per
share and share data)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenue
$
2,392
$
845
$
5,931
$
1,361
Cost of revenue
2,386
845
39,647
1,361
Gross profit (loss)
6
—
(33,716
)
—
Operating expenses:
Selling, general, and administrative
22,589
4,260
42,984
6,412
Research and development
6,147
2,665
15,752
4,273
Total operating expenses
28,736
6,925
58,736
10,685
Operating loss
(28,730
)
(6,925
)
(92,452
)
(10,685
)
Interest income (expense), net
213
(41
)
407
(1
)
SAFE instruments remeasurement
—
(47,460
)
—
(47,460
)
Gain (loss) on warrant remeasurement
8,284
(1,979
)
12,310
(2,282
)
Other (expense) income, net
(109
)
72
(185
)
39
Net loss before taxes
(20,342
)
(56,333
)
(79,920
)
(60,389
)
Income tax benefit
125
—
735
—
Net loss
(20,217
)
(56,333
)
(79,185
)
(60,389
)
Other comprehensive loss, net of
taxes
Unrealized losses on available-for-sale
securities
(127
)
(2
)
(506
)
(14
)
Cumulative translation adjustment
(323
)
—
(324
)
—
Total comprehensive loss
$
(20,667
)
$
(56,335
)
$
(80,015
)
$
(60,403
)
Loss per share
Loss per share – Basic and Diluted
$
(0.11
)
$
(5.30
)
$
(0.42
)
$
(5.92
)
Weighted average number of shares
outstanding – Diluted
190,182,474
10,623,517
187,123,737
10,195,971
Non-GAAP Financial Measures
EBITDA represents condensed consolidated net loss before (i)
interest (income) expense, net, (ii) income tax expense (benefit)
and (iii) depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted for certain
significant non-cash items and items that management believes are
not attributable to or indicative of our on-going operations or
that may obscure our underlying results and trends.
The following reconciles net loss to EBITDA and Adjusted EBITDA
for the periods as shown:
Three Months Ended June
30,
Six Months Ended June
30,
$ in
thousands
2022
2021
2022
2021
Net loss
$
(20,217
)
$
(56,333
)
$
(79,185
)
$
(60,389
)
Adjustments
Interest (income) expense, net
(213
)
41
(407
)
1
Income tax benefit
(125
)
—
(735
)
—
Depreciation and amortization
693
80
1,453
134
EBITDA
$
(19,862
)
$
(56,212
)
$
(78,874
)
$
(60,254
)
Adjustments
SAFE instruments remeasurement(1)
—
47,460
—
47,460
(Gain) loss on warrant
remeasurement(2)
(8,284
)
1,979
(12,310
)
2,282
Share-based compensation
11,524
353
24,506
564
Provision for contract losses (3)
—
—
33,737
—
Contract losses incurred (3)
(3,131
)
—
(3,160
)
—
Adjusted EBITDA
$
(19,753
)
$
(6,420
)
$
(36,101
)
$
(9,948
)
__________________
(1)
Represents the change in fair value on our
SAFE instruments which were converted to common stock immediately
prior to the closing of the business combination with Athena
Technology Acquisition Corp.
(2)
Represents the change in fair value on our
warrant liabilities for the outstanding warrants that we assumed in
the business combination with Athena Technology Acquisition
Corp.
(3)
Represents contract losses with customers
for which estimated costs to satisfy performance obligations
exceeded considerations expected to be realized. Contract loss is
reduced and recognized in cost of revenue as expenditures are
incurred and related revenue is recognized.
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version on businesswire.com: https://www.businesswire.com/news/home/20220810005800/en/
Heliogen Investor Contact Louis Baltimore Investor
Relations Louis.Baltimore@Heliogen.com
Heliogen Media Contact: Cory Ziskind ICR, Inc.
HeliogenPR@icrinc.com
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