Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrating solar energy technology, today provided
its fourth quarter and full year 2022 financial and operational
results.
Recent Highlights
- Completed the preliminary design and secured a site for the
“Proxima” green hydrogen project in Lancaster, CA
- Achieved successful accumulation of over 125 hours of
operational life and 25 miles travelled on the ChariotAV,
Heliogen’s autonomous cleaning vehicle
- Following the leadership transition of Heliogen’s CEO in
February 2023, announced Strategic Plan and formed Board-level
Corporate Strategy Committee to oversee the implementation of
Heliogen’s long-range strategic plan and specific strategic
initiatives
Full-Year 2022 Highlights
- Signed full project agreement with Woodside Energy (USA) Inc.
(“Woodside”) for the commercial-scale demonstration and deployment
of Heliogen’s AI-enabled concentrated solar energy technology; this
project will also demonstrate other novel elements through
application of Heliogen’s $39 million U.S. Department of Energy
(“DOE”) award
- Finalized and executed a lease in the Brenda Solar Energy Zone
with U.S. Bureau of Land Management for a green hydrogen production
project that is under development
- Successfully performed automated installation of prototype
Generation 5 heliostats at Lancaster demonstration facility
- Successfully completed initial field testing of ChariotAV
- Selected to receive an additional $4.1 million award from the
DOE to accelerate the large-scale development and deployment of a
solar thermal calciner to decarbonize cement production
- Completed the build-out of Heliogen’s automated, high-volume
heliostat production facility in Long Beach, CA
Executive Commentary
“Our journey in 2022 was marked by many significant strides
forward but also some humbling setbacks. While we made progress on
our technical and execution goals, we fell short of our commercial
contract goals,” said Christie Obiaya, who in February 2023 was
appointed by Heliogen’s Board of Directors to succeed Bill Gross as
Heliogen’s Chief Executive Officer.
Ms. Obiaya continued, “Upon stepping into the CEO role last
month, I have been taking swift action with a renewed focus on
growing sales through improving our product-market fit; on
deployment of our commercial scale projects; and on extending our
cash runway. We’ve already made meaningful progress on these
initiatives, and we will continue to execute on this roadmap.”
Fourth Quarter 2022 Financial Results
For the fourth quarter 2022, Heliogen reported total revenue of
$4.7 million and net loss of $35.0 million. Heliogen’s net loss was
driven primarily by the growth of Heliogen’s operations to support
its commercial-scale demonstration agreement with Woodside,
including personnel costs such as a non-cash share-based
compensation expense of $8.2 million and a non-cash asset
impairment charge of $6.9 million. Heliogen’s Adjusted EBITDA,
which excludes the non-cash share-based compensation expense and
other impacts, was negative $25.8 million for the fourth quarter
2022.
Full Year 2022 Financial Results
For the full year 2022, Heliogen reported total revenue of $13.8
million and net loss of $142.0 million. Heliogen’s net loss was
driven primarily by a non-cash share-based compensation expense of
$42.6 million, the recognition of a provision for contract losses
of $33.8 million and a non-cash asset impairment charge of $6.9
million, partially offset by non-cash, remeasurement impacts of
$13.9 million related to our warrants. Heliogen’s Adjusted EBITDA,
which excludes these and other impacts, was negative $81.0 million
for full year 2022.
As Heliogen focuses on growing its revenue backlog, progressing
its commercial projects and reducing its cost structure, the
Company has decided not to issue financial guidance at this
time.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its fourth quarter and full year 2022 financial results on
Wednesday, March 29, 2023, 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.
Open Conference Call Question Submission
Members of the investor community may submit questions before
the start of the conference call for consideration via email to
louis.baltimore@heliogen.com.
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 generally accepted
accounting principles in the United States of America (“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.
EBITDA represents consolidated net loss before (i) interest
(income) expense, net, (ii) income tax expense (benefit) and (iii)
depreciation and amortization expense. We define Adjusted EBITDA as
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. Please see the accompanying tables for a reconciliation
of net loss to 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 the development of our production facilities,
building our revenue backlog, progressing our commercial projects,
reducing our cost structure, achieving our financial and
operational goals 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) changes in our business and strategy,
future operations, financial position, estimated revenues and
losses, projected costs, prospects and plans; (iii) 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; (iv) our ability
to maintain listing on the New York Stock Exchange; (v) our ability
to access sources of capital to finance operations, growth and
future capital requirements; (vi) our ability to maintain and
enhance our products and brand, and to attract and retain
customers; (vii) our ability to scale in a cost effective manner;
(viii) changes in applicable laws or regulations; (ix) developments
and projections relating to our competitors and industry; 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 Securities and Exchange Commission. 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 December
31,
Year Ended December
31,
2022
2021
2022
2021
Revenue
$
4,720
$
5,241
$
13,751
$
8,804
Cost of revenue
3,475
6,711
47,536
9,447
Gross profit (loss)
1,245
(1,470
)
(33,785
)
(643
)
Operating expenses:
Selling, general and administrative
20,491
14,745
81,224
29,844
Research and development
11,833
4,587
38,281
13,478
Impairment charges
6,922
—
6,922
—
Total operating expenses
39,246
19,332
126,427
43,322
Operating loss
(38,001
)
(20,802
)
(160,212
)
(43,965
)
Interest income, net
329
227
995
634
SAFE instruments remeasurement
—
(23,914
)
—
(86,907
)
Gain (loss) on warrant remeasurement
1,242
(4,047
)
13,921
(6,651
)
Other income (expense), net
1,209
(205
)
2,280
(517
)
Net loss before taxes
(35,221
)
(48,741
)
(143,016
)
(137,406
)
Benefit (provision) for income taxes
235
(2
)
1,016
(2
)
Net loss
(34,986
)
(48,743
)
(142,000
)
(137,408
)
Other comprehensive loss, net of
taxes:
Unrealized losses on available-for-sale
securities
232
(10
)
(292
)
(17
)
Cumulative translation adjustment
200
70
(297
)
13
Total comprehensive loss
$
(34,554
)
$
(48,683
)
$
(142,589
)
$
(137,412
)
Loss per share:
Loss per share – Basic and Diluted
$
(0.18
)
$
(3.07
)
$
(0.75
)
$
(11.48
)
Weighted average number of shares
outstanding – Basic and Diluted
193,832,571
15,886,477
190,190,057
11,970,550
Heliogen, Inc.
Condensed Consolidated Balance
Sheets
($ in thousands)
(unaudited)
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
45,719
$
190,081
Investments, available-for-sale
97,504
32,332
Other current assets
15,598
4,770
Total current assets
158,821
227,183
Non-current assets
32,798
30,265
Total assets
$
191,619
$
257,448
LIABILITIES, CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS’ EQUITY
Trade payables
$
6,921
$
4,645
Contract liabilities
10,348
513
Contract loss provisions
28,418
397
Other current liabilities
5,602
6,974
Total current liabilities
51,289
12,529
Long-term liabilities
15,006
30,861
Total liabilities
66,295
43,390
Shareholders’ equity
125,324
214,058
Total liabilities, convertible
preferred stock and shareholders’ equity
$
191,619
$
257,448
Heliogen, Inc.
Reconciliation of Net Loss to
EBITDA and Adjusted EBITDA
($ in thousands)
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Net loss
$
(34,986
)
$
(48,743
)
$
(142,000
)
$
(137,408
)
Interest income, net
(329
)
(227
)
(995
)
(634
)
Provision (benefit) for income taxes
(235
)
2
(1,016
)
2
Depreciation and amortization
298
290
2,587
562
EBITDA
$
(35,252
)
$
(48,678
)
$
(141,424
)
$
(137,478
)
Impairment charges (1)
6,922
—
6,922
—
SAFE instruments remeasurement (2)
—
23,914
—
86,907
Loss (gain) on warrant remeasurement
(3)
(1,242
)
4,047
(13,921
)
6,651
Share-based compensation (4)
8,169
9,331
42,647
11,380
Provision for contract losses (5)
39
508
33,776
508
Contract losses incurred (5)
(2,216
)
(111
)
(5,718
)
(111
)
Change in fair value of contingent
consideration (6)
(593
)
—
(1,656
)
—
Employee retention credit (7)
(1,579
)
—
(1,579
)
—
Adjusted EBITDA
$
(25,752
)
$
(10,989
)
$
(80,953
)
$
(32,143
)
________________
(1)
Represents impairment charges related to
construction in progress for certain project-related costs and
intangible assets.
(2)
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 (“Athena”).
(3)
Represents the change in fair value on our
warrant liabilities for the outstanding warrants that we assumed in
the business combination with Athena.
(4)
Share-based compensation for the three
months and year ended December 31, 2022 excludes $0.1 million and
$0.2 million, respectively, of expense associated with the issuance
of warrants in April 2022 in connection with vendor agreements.
(5)
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.
(6)
Represents the change in fair value of our
contingent consideration related to an acquisition completed in
2021.
(7)
Represents the employee tax credit related
to the CARES Act recorded as grant revenue in the fourth quarter of
2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230328005862/en/
Heliogen Investors: Louis Baltimore VP, Investor
Relations Louis.Baltimore@heliogen.com
Heliogen Media: Cory Ziskind ICR, Inc.
HeliogenPR@icrinc.com
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