Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrating solar energy technology, today provided
its third quarter 2022 financial results.
Third Quarter 2022 Highlights
- Selected to receive a $4.1 million award from the U.S.
Department of Energy to accelerate the large-scale development and
deployment of a solar thermal calciner to decarbonize cement
production
- Entered into a letter of intent with Dimensional Energy for the
production of sustainable aviation fuel
- Successfully completed initial field testing of ChariotAV,
Heliogen’s autonomous heliostat cleaning vehicle
- Began final qualification for main production lines at
Heliogen’s automated, high-volume manufacturing facility
- Appointed industrial energy transition veteran Barbara Burger
to Heliogen’s Board of Directors
Recent Highlights
- Entered into a memorandum of understanding (“MOU”) with the
City of Lancaster, California to build a new green hydrogen
production facility deploying Heliogen’s technology
Executive Commentary
“During the third quarter, Heliogen continued to make progress
towards its goal of deploying its groundbreaking, AI-enabled
concentrating solar thermal energy technology,” said Bill Gross,
Founder and Chief Executive Officer of Heliogen. “The successful
completion of the initial field testing of our ChariotAV autonomous
heliostat cleaning vehicle and the start of final qualification for
our automated, high-volume heliostat production lines, moves us
that much closer to achieving these goals.”
“By signing the MOU with the City of Lancaster, California for
the production of green hydrogen, Heliogen continues to grow its
portfolio of hydrogen-focused customers. Between our Brenda Solar
Energy Zone project for large-scale hydrogen production in an area
ideally located for both long-haul transportation and for shipping
to other end markets, our agreement with Dimensional Energy for the
production of sustainable aviation fuel and now this agreement with
the City of Lancaster, Heliogen is building a diverse portfolio of
hydrogen customers and end-use markets.”
“With the passage of the Inflation Reduction Act and its $3.00
per kilogram hydrogen production tax credit, we seem to be
witnessing a tipping point that is greatly elevating hydrogen’s
role in the transition from a petroleum economy to a low-carbon
society.”
Memorandum of Understanding with the City of Lancaster,
California
Heliogen and the City of Lancaster, California recently entered
into a non-binding MOU to work together to create a green hydrogen
production facility, with a capacity of up to 1500 metric tons of
green hydrogen fuel per year, intended to help the City of
Lancaster achieve its goal to become one of the first net zero
cities in the United States. The facility is expected to produce
green hydrogen that can be sold to industrial customers in
Lancaster and the greater Los Angeles area. The MOU is subject to
negotiation and execution of a definitive agreement.
This agreement contemplates Heliogen as the technology provider,
project developer, builder, operator and equity partner in the
project. Heliogen intends to bring on an equity provider to fund
construction and own the asset. The City of Lancaster will assist
in site identification, review by its City Council and the
community, support for the permitting process and evaluation of
economic development potential.
2022 Guidance Revision
Heliogen is working to finalize its second commercial-scale
contract by year end, which would be within its guidance range of
two to three modules contracted. 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.
Due to delays in project timing, Heliogen now expects 2022
revenues of $12 - $14 million, revised from its prior guidance of
$20 - $25 million. This change reflects a shift in timing of earned
revenue, but the associated total project revenue on its first
commercial-scale contract remains unchanged.
Third Quarter 2022 Financial Results
For the third quarter 2022, Heliogen reported total revenue of
$3.1 million, total operating expenses of $29.4 million and net
loss of $27.8 million. Heliogen’s net loss was driven primarily by
growth of Heliogen’s operations to support its first
commercial-scale projects, including personnel costs such as a
non-cash stock-based compensation expense of $10.0 million.
Heliogen’s Adjusted EBITDA, which excludes the non-cash stock-based
compensation expense and other impacts, was negative $19.2 million
for the third quarter 2022.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its third quarter 2022 financial results on Tuesday,
November 8, 2022, at 10:00 a.m. EST. 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
decarbonizing industry and empowering a sustainable civilization.
The company’s concentrating solar energy and thermal storage
systems aim to deliver carbon-free heat, steam, power, or green
hydrogen at scale to support round-the-clock industrial operations.
Powered by AI, computer vision and robotics, Heliogen is focused on
providing robust clean energy solutions that accelerate the
transition to renewable energy, without compromising reliability,
availability, or cost. 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,
achieving our financial and operational goals, progress with
potential customers, expected impacts of recent legislation 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 Statements of Operations and
Comprehensive Loss ($ in thousands, except per share and
share data) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenue
$
3,100
$
2,202
$
9,031
$
3,563
Cost of revenue
3,423
1,375
44,061
2,736
Gross profit (loss)
(323
)
827
(35,030
)
827
Operating expenses:
Selling, general, and administrative
18,268
8,687
60,733
15,099
Research and development
11,168
4,618
26,448
8,891
Total operating expenses
29,436
13,305
87,181
23,990
Operating loss
(29,759
)
(12,478
)
(122,211
)
(23,163
)
Interest income, net
259
197
666
407
SAFE instruments remeasurement
—
(15,533
)
—
(62,993
)
Gain (loss) on warrant remeasurement
369
(322
)
12,679
(2,604
)
Other income (expense), net
1,256
(140
)
1,071
(312
)
Net loss before taxes
(27,875
)
(28,276
)
(107,795
)
(88,665
)
Income tax benefit
46
—
781
—
Net loss
(27,829
)
(28,276
)
(107,014
)
(88,665
)
Other comprehensive loss, net of
taxes
Unrealized losses (gains) on
available-for-sale securities
(18
)
7
(524
)
(7
)
Cumulative translation adjustment
(173
)
(57
)
(497
)
(57
)
Total comprehensive loss
$
(28,020
)
$
(28,326
)
$
(108,035
)
$
(88,729
)
Loss per share
Loss per share – Basic and Diluted
$
(0.14
)
$
(2.45
)
$
(0.57
)
$
(8.32
)
Weighted average number of shares
outstanding – Basic and Diluted
192,580,125
11,545,919
188,827,770
10,650,897
Heliogen, Inc.
Condensed Consolidated Balance Sheets ($ in
thousands) (unaudited)
September 30,
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
35,444
$
190,081
Investments, available-for-sale
124,034
32,332
Other current assets
13,361
4,770
Total current assets
172,839
227,183
Non-current assets
44,724
30,265
Total assets
$
217,563
$
257,448
LIABILITIES AND SHAREHOLDERS’
EQUITY
Trade payables
$
2,335
$
4,645
Contract liabilities
8,540
513
Contract loss provisions
30,526
397
Other current liabilities
7,410
6,974
Total current liabilities
48,811
12,529
Long-term liabilities
17,501
30,861
Total liabilities
66,312
43,390
Shareholders’ equity
151,251
214,058
Total liabilities and shareholders’
equity
$
217,563
$
257,448
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 September
30,
Nine Months Ended September
30,
$ in
thousands
2022
2021
2022
2021
Net loss
$
(27,829
)
$
(28,276
)
$
(107,014
)
$
(88,665
)
Adjustments
Interest income, net
(259
)
(197
)
(666
)
(407
)
Income tax benefit
(46
)
—
(781
)
—
Depreciation and amortization
836
138
2,289
272
EBITDA
$
(27,298
)
$
(28,335
)
$
(106,172
)
$
(88,800
)
Adjustments
SAFE instruments remeasurement(1)
—
15,533
—
62,993
(Gain) loss on warrant
remeasurement(2)
(369
)
322
(12,679
)
2,604
Share-based compensation
9,972
1,485
34,478
2,049
Provision for contract losses (3)
—
—
33,737
—
Contract losses incurred (3)
(342
)
—
(3,502
)
—
Change in fair value of contingent
consideration (4)
(1,116
)
(1,063
)
Adjusted EBITDA
$
(19,153
)
$
(10,995
)
$
(55,201
)
$
(21,154
)
(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.
(4)
Represents the change in fair value of our
contingent consideration related to an acquisition completed in
2021.
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version on businesswire.com: https://www.businesswire.com/news/home/20221107006185/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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