Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion Holdings”), a
leader in electrified powertrain solutions for Class 8 commercial
vehicles, today reported third quarter financial results for fiscal
year 2020 for Hyliion Inc. (“Hyliion”).
Key Business Highlights
- Completed strategic combination between Hyliion Inc. and
Tortoise Acquisition Corp. on October 1, 2020, yielding
approximately $520 million in net proceeds to fund Hyliion’s growth
plans and long-term objectives
- Installed eight hybrid electric units in the third quarter of
2020 for four fleet-based customers
- Signed agreement with FEV North America Inc. to accelerate
commercialization of the Hypertruck ERX
Executive Commentary
“With ample resources from our strategic combination, Hyliion is
well-capitalized and primed to disrupt the powertrain market. Our
focus in 2020 and 2021 will be to position the company for
long-term sustainable growth, capturing the material market
opportunity from the electrification of class 8 vehicles. Along the
way, our dynamic and proprietary solutions will help our commercial
vehicle customers change the way they view performance, total cost
of ownership, data, and sustainability,” commented Thomas Healy,
Hyliion Holdings’ Chief Executive Officer.
“In the third quarter of 2020, we made progress toward
commercialization of our Hybrid and Hypertruck ERX solutions for
the Class 8 truck market, while also establishing key partnerships.
We are experiencing strong interest for our solutions and are
utilizing our resources to develop a scaled infrastructure that
will be able to support demand from this $800 billion market.
Overall, I am pleased with the progress we have made as we remain
on track to meet our product milestones in 2021,” concluded
Healy.
Business Impact of COVID-19
Hyliion continues to execute on its business objectives and
drive growth across its platform, despite the effects of the
COVID-19 pandemic on the world economy. Hyliion’s management team
continues to work to advance its business objectives while
maintaining the safety of its employees, suppliers, and customers.
Hyliion has taken actions to mitigate issues caused by the pandemic
and does not believe that those disruptions will materially impact
or delay its long-term objectives.
3Q20 Conference Call
Hyliion Holdings will host a conference call and webcast for
investors and other interested parties to review Hyliion’s third
quarter 2020 financial results on Thursday, November 12, 2020 at
8:30 AM ET, which it will file with the Securities and Exchange
Commission (the “SEC”) on Form 8-K/A. A live webcast of the call,
as well as an archived replay, will be available online on the
Investor Relations section of Hyliion’s website. Those wishing to
participate can access the call using the links below:
Conference Call Online Registration:
http://www.directeventreg.com/registration/event/5648525
Webcast:
http://investors.hyliion.com/events-and-presentations
Third quarter financial results for fiscal year 2020 for Hyliion
Holdings (f/k/a Tortoise Acquisition Corp.) on a standalone basis
will also be filed with the SEC on Form 10-Q, and unaudited
combined condensed pro formas for such period for Hyliion Holdings
and Hyliion, will also be filed with the SEC under Form 8-K/A.
About Hyliion
A wholly owned subsidiary of Hyliion Holdings Corp. (NYSE:
HYLN), Hyliion’s mission is to reduce the carbon intensity and
greenhouse gas (GHG) emissions of commercial transportation Class 8
vehicles by being a leading provider of electrified powertrain
solutions. Leveraging advanced software algorithms and data
analytics capabilities, Hyliion offers fleets an easy, efficient
system to decrease fuel and operating expenses while seamlessly
integrating with their existing fleet operations. Headquartered in
Austin, Texas, it designs, develops and sells electrified
powertrain solutions that are designed to be installed on most
major Class 8 commercial vehicles, with the goal of transforming
the commercial transportation industry’s environmental impact at
scale. For more information, visit www.hyliion.com.
Forward Looking Statements
This press release contains certain forward-looking
statements within the meaning of federal securities laws with
respect to Hyliion Holdings and Hyliion. These forward-looking
statements generally are identified by words such as “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” and similar expressions. 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. Such forward-looking statements include statements
about Hyliion’s ability to disrupt the powertrain market, Hyliion’s
focus in 2020 and 2021, the effects of Hyliion’s dynamic and
proprietary solutions on its commercial vehicle customers,
accelerated commercialization of the Hypertruck ERX, the ability to
meet 2021 product milestones, the impact of COVID-19 on long-term
objectives, and the ability to reduce carbon intensity and GHG.
Hyliion Holdings undertakes no obligation, and specifically
declines any obligation, except as required by law, to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to the factors, risks and uncertainties regarding the
Hyliion Holdings’ business described in the “Risk Factors” sections
of the Hyliion Holdings’ filings with the SEC, and other factors,
risks and uncertainties identified and addressed in the Hyliion
Holdings’ filings with the SEC. Forward-looking statements reflect
the reasonable understanding and belief of Hyliion Holdings as of
the date they are made. Readers are cautioned not to put undue
reliance on any forward-looking statement.
Hyliion Inc.
Condensed Statements of
Operations
(Dollar amounts in thousands, except share
and per share data)
(Unaudited)
Nine Months Ended September
30,
2020
2019
Operating expenses:
Research and development
$
(8,134
)
$
(6,716
)
Selling, general and
administrative expenses
(3,705
)
(1,977
)
Loss from operations
(11,839
)
(8,693
)
Other income (expense):
Interest expense
(5,458
)
(2,176
)
Change in fair value of
convertible notes payable derivative liabilities
(1,358
)
823
Other income
(12
)
20
Total other expense
(6,828
)
(1,333
)
Net loss
$
(18,667
)
$
(10,026
)
Cumulative dividends on
convertible preferred stock
(1,337
)
(1,261
)
Net loss attributable to common
stockholders
$
(20,004
)
$
(11,287
)
Net loss per share, basic and
diluted
$
(0.76
)
$
(0.45
)
Weighted-average shares
outstanding, basic and diluted
26,269,060
25,293,066
Hyliion Inc.
Condensed Balance
Sheets
(Dollar amounts in thousands, except share
and per share data)
(Unaudited)
September 30, 2020
December 31, 2019
Assets:
Current assets:
Cash and cash equivalents
$
7,565
$
6,285
Accounts receivable, net
15
145
Prepaid expenses and other
current assets
1,085
414
Total current assets
8,665
6,844
Property and equipment, net
1,126
1,635
Operating lease right-of-use
assets
4,254
4,976
Intangible assets, net
356
429
Deferred transaction costs
4,306
-
Other assets
209
212
Total assets
$
18,916
$
14,096
Liabilities, redeemable,
convertible preferred stock and stockholders' deficit
Current liabilities:
Accounts payable
$
4,499
$
1,156
Convertible notes payable
derivative liabilities
4,745
3,029
Current portion of operating
lease liabilities
751
953
Current portion of debt
28,477
6,720
Accrued expenses and other
current liabilities
891
500
Total current liabilities
39,363
12,358
Operating lease liabilities, net
of current portion
4,253
4,803
Convertible notes payable
derivative liabilities, net of current portion
7,620
5,322
Debt, net of current portion
4,132
9,682
Total liabilities
55,368
32,165
Series A-1 redeemable,
convertible preferred stock; $0.001 par value; 24,591,554 shares
authorized; 22,895,580 shares issued and outstanding at September
30, 2020 and December 31, 2019 (liquidation preference of
$23,812)
20,250
20,250
Series A-2 redeemable,
convertible preferred stock; $0.001 par value; 8,793,755 shares
authorized; 8,197,359 shares issued and outstanding at September
30, 2020 and December 31, 2019 (liquidation preference of
$4,304)
3,536
3,536
Series A-3 redeemable,
convertible preferred stock; $0.001 par value; 2,545,155 shares
authorized; 2,328,545 shares issued and outstanding at September
30, 2020 and December 31, 2019 (liquidation preference of
$2,400)
2,001
2,001
Total redeemable, convertible
preferred stock
25,787
25,787
Commitments and contingencies
(Note 8)
Stockholders' deficit
Common stock, $0.001 par value;
69,817,317 shares authorized; 26,882,169 and 26,118,953 shares
issued and outstanding at September 30, 2020 and December 31, 2019,
respectively
27
26
Additional paid-in capital
5,367
5,084
Accumulated deficit
(67,633
)
(48,966
)
Total stockholders' deficit
(62,239
)
(43,856
)
Total liabilities, redeemable,
convertible preferred stock, and stockholders' deficit
$
18,916
$
14,096
Hyliion Inc.
Condensed Statements of Cash
Flows
(Dollar amounts in thousands, except share
and per share data)
(Unaudited)
Nine Months Ended September
30,
2020
2019
Operating activities:
Net loss
$
(18,667
)
$
(10,026
)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization
665
786
Noncash lease expense
722
947
Paid-in-kind interest on
convertible notes payable
1,081
428
Amortization of debt discount
4,237
1,696
Share-based compensation
165
91
Change in fair value of
convertible notes payable derivative liabilities
1,358
(823
)
Change in fair value of
contingent consideration liability
-
(20
)
Change in operating assets and
liabilities:
Accounts receivable
130
41
Prepaid expenses and other
current assets
(671
)
67
Other assets
3
106
Accounts payable
353
(927
)
Accrued expenses and other
current liabilities
391
(246
)
Operating lease liabilities
(752
)
(458
)
Net cash used in operating
activities
(10,985
)
(8,338
)
Investing activities:
Purchases of property and
equipment
(105
)
(215
)
Proceeds from sale of property
and equipment
22
-
Net cash used in investing
activities
(83
)
(215
)
Financing activities:
Proceeds from convertible notes
payable issuance and derivative liability
3,200
13,603
Proceeds from Term Loan
10,100
-
Proceeds from Paycheck Protection
Program loan
908
-
Proceeds from exercise of common
stock options
119
9
Payments for deferred transaction
costs
(1,316
)
-
Payments for deferred financing
costs
(468
)
-
Repayments on finance lease
obligations
(195
)
(147
)
Net cash provided by financing
activities
12,348
13,465
Net (decrease) increase in cash
and cash equivalents:
1,280
4,912
Cash and cash equivalents,
beginning of period
6,285
1,097
Cash and cash equivalents, end of
period
$
7,565
$
6,009
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201112005322/en/
INVESTOR INQUIRIES Bob Gujavarty Hyliion Holdings
ir@hyliion.com
MEDIA RELATIONS Mustafa Riffat mustafa.riffat@edelman.com
Jeremy Cohen jeremy.cohen@edelman.com Edelman
Hyliion (NYSE:HYLN)
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