Heliogen, Inc. Announces Second Quarter 2024 Financial and Operational Results
Financial and Operational Highlights
- No significant changes to contracts or backlog vs. prior quarter; outstanding proposals with 4 customers for early design stage projects representing 0.9 gigawatts
-
First commercial-scale installation of
Heliogen steam plant in westTexas continues to progress toward mechanical completion by year-end 2024 -
$51.8 million in available liquidity as ofJune 30, 2024 -
In
May 2024 , implemented a targeted plan, which included a workforce reduction, closing of theLong Beach manufacturing facility, and a reduction in third-party costs
“During the second quarter of 2024, we advanced on a number of fronts. We engaged with prospective customers on several open proposals for early design work on commercial-scale projects to deploy Heliogen’s technology. We also kicked off the next design phase of our Brenda power project. In addition, construction on our west
Second Quarter 2024 Financial Results
For the second quarter 2024,
On
For the second quarter 2024,
As of
About
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
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 timing for mechanical completion of our commercial-scale installation steam plant and our intent to further reduce structural costs and operating expenses, to align our operating structure for commercialization with a technology-centric and capital light model to continue to explore and evaluate strategic alternatives. 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 access sources of capital to finance operations, growth and future capital requirements; (v) our ability to maintain and enhance our products and brand, and to attract and retain customers; (vi) our ability to scale in a cost effective manner; (vii) changes in applicable laws or regulations; (viii) developments and projections relating to our competitors and industry; (ix) unexpected adjustments and cancellations related to our backlog; (x) our ability to protect our intellectual property; and (xi) 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
Condensed Consolidated Statements of Operations ($ in thousands, except per share and share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
$ |
2,261 |
|
|
$ |
1,394 |
|
|
$ |
3,789 |
|
|
$ |
3,331 |
|
Cost of revenue |
|
3,929 |
|
|
|
1,522 |
|
|
|
5,406 |
|
|
|
3,904 |
|
Gross loss |
|
(1,668 |
) |
|
|
(128 |
) |
|
|
(1,617 |
) |
|
|
(573 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
9,505 |
|
|
|
17,652 |
|
|
|
21,860 |
|
|
|
21,345 |
|
Research and development |
|
4,751 |
|
|
|
4,946 |
|
|
|
8,542 |
|
|
|
10,206 |
|
Impairment and other charges |
|
4,128 |
|
|
|
— |
|
|
|
4,160 |
|
|
|
1,480 |
|
Operating loss |
|
(20,052 |
) |
|
|
(22,726 |
) |
|
|
(36,179 |
) |
|
|
(33,604 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
675 |
|
|
|
270 |
|
|
|
1,358 |
|
|
|
553 |
|
Gain (loss) on warrant remeasurement |
|
45 |
|
|
|
(52 |
) |
|
|
21 |
|
|
|
252 |
|
Other income, net |
|
52 |
|
|
|
827 |
|
|
|
297 |
|
|
|
574 |
|
Net loss before taxes |
|
(19,280 |
) |
|
|
(21,681 |
) |
|
|
(34,503 |
) |
|
|
(32,225 |
) |
Provision for income taxes |
|
(2 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
Net loss |
$ |
(19,282 |
) |
|
$ |
(21,683 |
) |
|
$ |
(34,507 |
) |
|
$ |
(32,227 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per share: |
|
|
|
|
|
|
|
||||||||
Loss per share – Basic and Diluted (1) |
$ |
(3.19 |
) |
|
$ |
(3.79 |
) |
|
$ |
(5.72 |
) |
|
$ |
(5.68 |
) |
Weighted average number of shares outstanding – Basic and Diluted (1) |
|
6,045,324 |
|
|
|
5,728,261 |
|
|
|
6,033,158 |
|
|
|
5,676,134 |
|
________________
(1) |
Periods presented have been adjusted to reflect the 1-for-35 reverse stock split on |
Condensed Consolidated Balance Sheets ($ in thousands) (unaudited) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
51,839 |
|
|
$ |
62,715 |
|
Investments |
|
— |
|
|
|
12,386 |
|
Other current assets |
|
7,009 |
|
|
|
8,365 |
|
Total current assets |
|
58,848 |
|
|
|
83,466 |
|
Non-current assets |
|
10,439 |
|
|
|
23,567 |
|
Total assets |
$ |
69,287 |
|
|
$ |
107,033 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
||||
Trade payables |
$ |
1,403 |
|
|
$ |
746 |
|
Contract liabilities |
|
19,259 |
|
|
|
17,008 |
|
Contract loss provisions |
|
74,763 |
|
|
|
75,340 |
|
Other current liabilities |
|
9,015 |
|
|
|
8,907 |
|
Total current liabilities |
|
104,440 |
|
|
|
102,001 |
|
Long-term liabilities |
|
5,326 |
|
|
|
13,047 |
|
Total liabilities |
|
109,766 |
|
|
|
115,048 |
|
Stockholders’ equity (deficit) |
|
(40,479 |
) |
|
|
(8,015 |
) |
Total liabilities and stockholders’ equity (deficit) |
$ |
69,287 |
|
|
$ |
107,033 |
|
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA ($ in thousands) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss |
$ |
(19,282 |
) |
|
$ |
(21,683 |
) |
|
$ |
(34,507 |
) |
|
$ |
(32,227 |
) |
Interest income, net |
|
(675 |
) |
|
|
(270 |
) |
|
|
(1,358 |
) |
|
|
(553 |
) |
Provision for income taxes |
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
2 |
|
Depreciation and amortization |
|
349 |
|
|
|
592 |
|
|
|
795 |
|
|
|
1,193 |
|
EBITDA |
$ |
(19,606 |
) |
|
$ |
(21,359 |
) |
|
$ |
(35,066 |
) |
|
$ |
(31,585 |
) |
Impairment charges (1) |
|
3,354 |
|
|
|
— |
|
|
|
3,354 |
|
|
|
1,008 |
|
Gain (loss) on warrant remeasurement (2) |
|
(45 |
) |
|
|
52 |
|
|
|
(21 |
) |
|
|
(252 |
) |
Share-based compensation (3) |
|
681 |
|
|
|
2,816 |
|
|
|
1,967 |
|
|
|
(6,383 |
) |
Contract loss provisions (4) |
|
— |
|
|
|
20 |
|
|
|
— |
|
|
|
390 |
|
Contract losses incurred (4) |
|
247 |
|
|
|
(877 |
) |
|
|
(577 |
) |
|
|
(1,324 |
) |
Change in fair value of contingent consideration (5) |
|
— |
|
|
|
112 |
|
|
|
— |
|
|
|
1,237 |
|
Severance costs (6) |
|
613 |
|
|
|
— |
|
|
|
645 |
|
|
|
472 |
|
Manufacturing Facility closing costs (7) |
|
161 |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
Employee retention credit (8) |
|
— |
|
|
|
(41 |
) |
|
|
— |
|
|
|
(41 |
) |
Adjusted EBITDA |
$ |
(14,595 |
) |
|
$ |
(19,277 |
) |
|
$ |
(29,537 |
) |
|
$ |
(36,478 |
) |
________________
(1) |
Impairment charges for the three and six months ended |
|
(2) |
Represents the change in fair value on our outstanding warrant liabilities. |
|
(3) |
Share-based compensation for the six months ended |
|
(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 |
|
(6) |
Represents severance costs related to employee severance and related benefits. |
|
(7) |
Represents reorganization costs associated with closing our manufacturing facility in |
|
(8) |
Represents an adjustment to the employee tax credit pursuant to the Coronavirus Aid, Relief and Economic Security Act (CARES Act) recorded as grant revenue in the fourth quarter of 2022. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806595264/en/
Heliogen Investors Contact:
Chief Financial Officer
Phelps.Morris@heliogen.com
Heliogen Media Contact:
Manager, Corporate Communications
media@heliogen.com
Source: