Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrating solar energy technology, today provided
its second quarter 2023 financial and operational results.
Recent Highlights
- Increased current opportunity pipeline to 825 MW, 700 MW of
which was added since May 2023
Second Quarter 2023 Highlights
- Signed an $11.2 million offtake contract with the City of
Lancaster, CA for the sale of carbon-free green hydrogen produced
at Heliogen’s Proxima project
Executive Commentary
“During the second quarter of 2023, we made demonstrable
progress on our three-pronged strategy to enhance shareholder value
at Heliogen,” said Christie Obiaya, Heliogen’s Chief Executive
Officer. “We advanced our goal of closing sales by securing a
high-quality green hydrogen offtake agreement.”
Ms. Obiaya continued, “Heliogen’s efforts remain focused on
expanding our market presence, accelerating the installation of our
first commercial-scale projects, and preparing to add growth
capital. We have seen rapid progress on these strategic
initiatives, which is a testament to our team’s resilience and
dedication. As we look forward to the next several quarters, we
remain focused and determined to unlock the vast potential of our
groundbreaking solar thermal energy technology. We stand resolute
in our commitment to deliver on the promises we’ve made to our
shareholders, customers and the planet.”
Second Quarter 2023 Financial Results
For the second quarter 2023, Heliogen reported total revenue of
$1.4 million and net loss of $21.7 million. Heliogen’s revenue was
driven primarily by continued execution on its Capella project.
Heliogen’s Adjusted EBITDA was negative $19.3 million for second
quarter 2023.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its second quarter 2023 financial results on Wednesday,
August 9, 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 our commitment to accelerating our sales and
establishing stronger relationships with our commercial partners,
expanding our market presence and accelerating the installation of
our first commercial-scale project, 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 for the annual period
ended December 31, 2022, as supplemented in our Quarterly Report on
Form 10-Q for the quarter ended March 31, 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
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Revenue
$
1,394
$
2,392
$
3,331
$
5,931
Cost of revenue
1,522
2,814
3,904
40,638
Gross loss
(128
)
(422
)
(573
)
(34,707
)
Operating expenses:
Selling, general and administrative
17,652
22,403
21,817
42,465
Research and development
4,946
5,905
10,206
15,280
Impairment charges
—
—
1,008
—
Total operating expenses
22,598
28,308
33,031
57,745
Operating loss
(22,726
)
(28,730
)
(33,604
)
(92,452
)
Interest income, net
270
213
553
407
Gain (loss) on warrant remeasurement
(52
)
8,284
252
12,310
Other income (expense), net
827
(109
)
574
(185
)
Net loss before taxes
(21,681
)
(20,342
)
(32,225
)
(79,920
)
(Provision) benefit for income taxes
(2
)
125
(2
)
735
Net loss
$
(21,683
)
$
(20,217
)
$
(32,227
)
$
(79,185
)
Loss per share:
Loss per share – Basic and Diluted
$
(0.11
)
$
(0.11
)
$
(0.16
)
$
(0.42
)
Weighted average number of shares
outstanding – Basic and Diluted
200,616,841
190,182,474
198,768,335
187,123,737
Heliogen, Inc.
Condensed Consolidated Balance
Sheets
($ in thousands)
(unaudited)
June 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
43,498
$
45,719
Investments, available-for-sale
64,309
97,504
Other current assets
14,642
15,598
Total current assets
122,449
158,821
Non-current assets
31,469
32,798
Total assets
$
153,918
$
191,619
LIABILITIES AND SHAREHOLDERS’
EQUITY
Trade payables
$
845
$
6,921
Contract liabilities
12,247
10,348
Contract loss provisions
27,500
28,418
Other current liabilities
9,784
5,602
Total current liabilities
50,376
51,289
Long-term liabilities
15,222
15,006
Total liabilities
65,598
66,295
Shareholders’ equity
88,320
125,324
Total liabilities and shareholders’
equity
$
153,918
$
191,619
Heliogen, Inc.
Reconciliation of Net Loss to
EBITDA and Adjusted EBITDA
($ in thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net loss
$
(21,683
)
$
(20,217
)
$
(32,227
)
$
(79,185
)
Interest income, net
(270
)
(213
)
(553
)
(407
)
Provision (benefit) for income taxes
2
(125
)
2
(735
)
Depreciation and amortization
592
540
1,193
1,178
EBITDA
$
(21,359
)
$
(20,015
)
$
(31,585
)
$
(79,149
)
Impairment charges (1)
—
—
1,008
—
Gain on warrant remeasurement (2)
52
(8,284
)
(252
)
(12,310
)
Share-based compensation (3)
2,816
11,524
(6,490
)
24,506
Provision for contract losses (4)
20
—
390
33,737
Contract losses incurred (4)
(877
)
(3,189
)
(1,324
)
(3,160
)
Change in fair value of contingent
consideration (5)
112
39
1,237
53
Employee retention credit (6)
(41
)
—
(41
)
—
Adjusted EBITDA
$
(19,277
)
$
(19,925
)
$
(37,057
)
$
(36,323
)
_______________
(1)
Represents the impairment of goodwill
associated with the acquisition of HelioHeat GmbH (the “HelioHeat
Acquisition”).
(2)
Represents the change in fair value on our
outstanding warrant liabilities.
(3)
Share-based compensation for the six
months ended June 30, 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 and excludes $0.1 million of expense associated with the
vesting of warrants issued in April 2022 in connection with a
vendor agreement (the “Vendor Warrants”). Share-based compensation
for the three and six months ended June 30, 2022 excludes $0.1
million of expense associated with the vesting of the Vendor
Warrants.
(4)
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.
(5)
Represents the change in fair value of our
contingent consideration related to the HelioHeat Acquisition.
(6)
Represents an adjustment to the employee
tax credit 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/20230808340275/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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