Heliogen, Inc. (“Heliogen”) (OTCQX: HLGN), a leading provider of
AI-enabled concentrating solar energy technology, today provided
its fourth quarter and full year 2023 financial and operational
results and announced the appointment of its new Chief Financial
Officer.
Financial and Operational Highlights
- 2.0 gigawatts (“GW”) in opportunity pipeline, an increase of
nearly 1.2 GW since August 2023
- Demonstrated third-party validation of the effectiveness of
Heliogen’s proprietary control system at Sandia National
Laboratories’ National Solar Thermal Test Facility, validating
software’s role in enhancing solar plant efficiency and
interoperability, paving the way for commercialization through
licensing opportunities
- Executed a joint development agreement with Omanor, a real
estate developer of logistics & energy infrastructure assets,
and provider of permitting and off-take services for renewable
projects in Mexico, unlocking an expanded market in Latin America
and gaining on-the-ground expertise needed to initiate projects of
scale
- Executed a contract with Woodside Energy for up to $1.6 million
to progress engineering and development for the Brenda Green
Hydrogen Project in Arizona, anticipated to produce up to 20,000
metric tons per year of fuel cell electric vehicle grade liquid
hydrogen
- Began site preparation for heliostat field installation at the
Heliogen steam plant in the Permian Basin with mechanical
completion on track for the end of 2024
- Developed and executed on an operating cost reduction plan
forecasted to address both investment and operating needs of
Heliogen into March 2025
- $76 million contracted revenue backlog driven by a diverse set
of contracts ranging from next-generation concentrated solar power
(“CSP”) to green hydrogen to sustainable aviation fuel
- $75.1 million in available liquidity as of December 31,
2023
- Initiated a comprehensive review process to explore and
evaluate strategic alternatives for enhancing value
“Reflecting on the past year, I am proud of the Heliogen team
for the strides we have taken toward commercializing our innovative
concentrated solar thermal technology,” said Christie Obiaya,
Heliogen’s Chief Executive Officer. “We believe we have sufficient
liquidity to execute our plans into March 2025 and we have
proactively engaged a financial advisor to assist us in reviewing
strategic alternatives that we believe will position us for future
growth and increased long-term shareholder value.”
Julie Kane, chair of Heliogen’s Board of Directors, added, “The
Heliogen Board appreciates Christie and her team for moving the
Company forward during 2023 and are confident in the team’s ability
to accomplish more in 2024.”
Appointment of Chief Financial Officer
Phelps Morris will join Heliogen as Chief Financial Officer
effective April 1, 2024, replacing Interim Chief Financial Officer,
Alan Gahm. Prior to joining the Company, Mr. Morris served as Chief
Financial Officer of FTC Solar, Inc. (NASDAQ: FTCI) from March 2022
to November 2023 where he led all aspects of the finance function.
Previously, he served as Senior Vice President and Treasurer of
True Blue, Inc. (NYSE: TBI) from November 2016 to March 2022. Mr.
Morris also acted as Vice President, Investor Relations at
Sunedison, Inc. (NYSE: SUNE) from May 2014 to August 2016. Mr.
Morris brings extensive knowledge of the solar industry, and more
than 20 years of experience in finance with expertise spanning
treasury, capital markets, mergers and acquisitions, risk
management and investor relations. Mr. Morris is a Certified
Financial Analyst charterholder and holds an MBA from the Ross
School of Business at the University of Michigan and a BA in
Economics from Middlebury College.
“I’m delighted to welcome Phelps to the Heliogen team,” said Ms.
Obiaya. “His core areas of expertise, his collaborative leadership
style, and his experience in financial leadership through dynamic
business cycles will serve us very well.”
Ms. Obiaya added, “Our strong team is well-prepared to continue
executing on our strategic goals. Heliogen remains committed to
serving as a leading provider of solar energy technology to
industry, to support the transition to a more sustainable
world.”
Fourth Quarter and Full Year 2023 Financial Results
During the fourth quarter 2023, Heliogen completed the front-end
engineering design phase and updated its cost estimate for the
Capella Project. Located in California, the Capella Project is the
world’s first fully-integrated third generation CSP
commercial-scale demonstration facility. For the fourth quarter and
full year 2023, Heliogen reported total revenue of $(1.2) million
and $4.4 million, respectively, driven primarily by an unfavorable
cumulative adjustment of $(3.4) million recorded during the fourth
quarter of 2023, as a result of the updated Capella Project cost
estimate.
For the fourth quarter and full year 2023, Heliogen reported a
net loss of $(78.8) million and $(129.6) million, respectively,
driven primarily by the recognition of a non-cash provision for
contract losses of $52.9 million, associated primarily with the
change in estimate for its Capella Project. The current cost
estimate for the Capella Project is subject to further refinement
as Heliogen continues to explore additional cost saving
opportunities. In addition, Heliogen is exploring supplemental
third-party funding sources to offset the incremental cost. As a
result, the final cost for the Capella Project could vary from our
current estimate.
Heliogen’s Adjusted EBITDA was $(23.9) million and $(79.2)
million for the fourth quarter and full year 2023,
respectively.
As of December 31, 2023, the Company had available liquidity of
$75.1 million, consisting of $62.7 million of cash and cash
equivalents and $12.4 million of investments, and no debt.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its fourth quarter and full year 2023 financial results on
Tuesday, March 26, 2024, 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.
Backlog
Contracted revenue backlog represents contracted revenue with
customers and government entities we expect to realize for the
construction of facilities, engineering services agreements,
operating agreements, and products delivered under purchase
agreements. We cannot guarantee that our revenue projected in our
backlog will be realized or, if realized, will result in profits.
In addition, project cancellations or scope adjustments may occur
with respect to contracts reflected in our backlog. Accordingly,
our backlog as of any particular date is an uncertain indicator of
future earnings.
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 our expectation that our cost reduction
strategy will position us to continue our work into March 2025,
achieving our commitment to stockholders, our intent to explore and
evaluate various strategic alternatives and our expanding
opportunity pipeline. 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) the delisting of our
common stock and public warrants on the New York Stock Exchange;
(iii) changes in our business and strategy, future operations,
financial position, estimated revenues and losses, projected costs,
prospects and plans; (iv) 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; (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; (x) unexpected adjustments and
cancellations related to our backlog; (xi) our ability to protect
our intellectual property; and (xii) whether the objectives of the
strategic alternative review process will be achieved. 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 for the year ended
December 31, 2022, as supplemented in our Quarterly Reports on Form
10-Q for the quarter ended March 31, 2023 and September 30, 2023,
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 ($ in
thousands, except per share and share data) (unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$
(1,159
)
$
4,720
$
4,445
$
13,751
Cost of revenue
54,285
3,475
60,048
47,536
Gross profit (loss)
(55,444
)
1,245
(55,603
)
(33,785
)
Operating expenses:
Selling, general and administrative
13,841
20,491
50,655
81,224
Research and development
5,660
11,833
21,028
38,281
Impairment charges
6,766
6,922
7,774
6,922
Total operating expenses
26,267
39,246
79,457
126,427
Operating loss
(81,711
)
(38,001
)
(135,060
)
(160,212
)
Interest income, net
560
329
1,448
995
Gain on warrant remeasurement
216
1,242
542
13,921
Other income, net
2,132
1,209
3,473
2,280
Net loss before taxes
(78,803
)
(35,221
)
(129,597
)
(143,016
)
Benefit (provision) for income taxes
2
235
(1
)
1,016
Net loss
$
(78,801
)
$
(34,986
)
$
(129,598
)
$
(142,000
)
Loss per share:
Loss per share – Basic and Diluted (1)
$
(13.15
)
$
(6.32
)
$
(22.26
)
$
(26.13
)
Weighted average number of shares
outstanding – Basic and Diluted (1)
5,991,628
5,537,887
5,822,389
5,433,912
________________
(1) Periods presented have been adjusted
to reflect the 1-for-35 reverse stock split on August 31, 2023.
Heliogen, Inc.
Condensed Consolidated Balance Sheets ($ in thousands)
(unaudited)
December 31,
2023
2022
ASSETS
Cash and cash equivalents
$
62,715
$
45,719
Investments
12,386
97,504
Other current assets
8,365
15,598
Total current assets
83,466
158,821
Non-current assets
23,567
32,798
Total assets
$
107,033
$
191,619
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT)
Trade payables
$
746
$
6,921
Contract liabilities
17,008
10,348
Contract loss provisions
75,340
28,418
Other current liabilities
8,907
5,602
Total current liabilities
102,001
51,289
Long-term liabilities
13,047
15,006
Total liabilities
115,048
66,295
Stockholders’ equity (deficit)
(8,015
)
125,324
Total liabilities and stockholders’
equity (deficit)
$
107,033
$
191,619
Heliogen, Inc.
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA ($
in thousands) (unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net loss
$
(78,801
)
$
(34,986
)
$
(129,598
)
$
(142,000
)
Interest income, net
(560
)
(329
)
(1,448
)
(995
)
Provision (benefit) for income taxes
(2
)
(235
)
1
(1,016
)
Depreciation and amortization
450
298
2,142
2,587
EBITDA
$
(78,913
)
$
(35,252
)
$
(128,903
)
$
(141,424
)
Impairment charges (1)
6,766
6,922
7,774
6,922
Gain on warrant remeasurement (2)
(216
)
(1,242
)
(542
)
(13,921
)
Share-based compensation (3)
914
8,249
(5,164
)
42,861
Contract loss provisions (4)
53,002
39
52,854
33,776
Contract losses incurred (4)
(4,338
)
(2,216
)
(5,966
)
(5,718
)
Change in fair value of contingent
consideration (5)
(1,642
)
(593
)
(353
)
(1,656
)
Reorganization costs (6)
573
—
1,160
—
Employee retention credit (7)
—
(1,579
)
(41
)
(1,579
)
Adjusted EBITDA
$
(23,854
)
$
(25,672
)
$
(79,181
)
$
(80,739
)
________________
(1)
Impairment charges during 2023, are
associated with our Collaboration Warrants, cloud computing
implementation costs and goodwill. Impairment charges during 2022,
are associated with property, plant and equipment for construction
in progress for certain project-related costs and intangible
assets.
(2)
Represents the change in fair value on our
outstanding warrant liabilities.
(3)
Share-based compensation for the year
ended December 31, 2023 includes a net reduction of $12.5 million
of expense as a result of stock options forfeited in connection
with the termination of our former Chief Executive Officer.
(4)
Represents contract loss provisions with
customers for which estimated costs to satisfy performance
obligations exceeded considerations expected to be realized. The
contract loss provision is reduced and recognized in cost of
revenue as expenditures are incurred and related revenue is
recognized.
(5)
Represents the change in fair value of our
contingent consideration associated with the acquisition of
HelioHeat GmbH.
(6)
Represents reorganization costs related to
employee severance and related benefits recorded during 2023.
(7)
Represents the employee tax credit to the
Coronavirus Aid, Relief, and Economic Security Act recorded as
grant revenue.
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version on businesswire.com: https://www.businesswire.com/news/home/20240325559340/en/
Heliogen Investors Contact: Louis Baltimore VP, Strategic
Finance & Investor Relations Louis.Baltimore@heliogen.com
Heliogen Media Contact: Sam Padreddii Manager, Corporate
Communications media@heliogen.com
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