decarbonfuse Icons/logo

Press Release

Heliogen, Inc. Announces Second Quarter 2022 Financial and Operational Results; Reports Progress on Scale Up of Long Beach Facility

Published by Todd Bush on August 15, 2022

August 10, 2022 04:55 PM Eastern Daylight Time PASADENA, Calif.--(BUSINESS WIRE)--Heliogen, Inc. ('Heliogen') (NYSE: HLGN), a leading provider of AI-enabled concentrated solar energy technology, today provided its second quarter 2022 financial and operational results and reaffirmed its previously announced guidance for 2022.

Second Quarter 2022 Highlights

  • Finalized and executed a lease for Brenda Solar Energy Zone with U.S. Bureau of Land Management
  • Announced partnership with Hanwha Power Systems for the production of a 5 megawatt electric (MWe) next-generation supercritical CO2 power block integrated with high-temperature solid media thermal energy storage designed by Heliogen and to be deployed with the Woodside project

Recent Highlights

  • Entered into a letter of intent with Dimensional Energy for the production of sustainable aviation fuel
  • Completed installation of fourth generation heliostats at Heliogen's Lancaster demonstration facility
  • Manufactured, deployed and began testing of the first commercial configuration of Heliogen's autonomous cleaning vehicle at the Lancaster demonstration facility

Executive Commentary
'During the second quarter, Heliogen continued its steady progress toward achieving our vision of producing clean solar thermal energy for heavy industry through use of our groundbreaking, AI-enabled concentrated solar thermal energy technology,' said Bill Gross, Founder and Chief Executive Officer of Heliogen. 'By signing additional customer agreements, expanding relationships with supply chain partners, and ramping up our manufacturing facilities, Heliogen is positioning itself to power the transition of global heavy industry to clean, renewable sources of heat, power and green hydrogen. We remain on track to meet our guidance for 2022.

'In addition to the exciting announcements we have made over the last several months, Heliogen recently completed the installation of our fourth generation heliostats at our Lancaster, California demonstration facility. These new heliostats are designed to be manufactured, installed and maintained more efficiently, without sacrificing performance or reliability. This is one example of our ability to iterate and innovate rapidly to reduce our cost structure and improve our margins. I am also pleased with the progress we have made at our Long Beach manufacturing facility, where we are getting ready to begin high-volume automated heliostat manufacturing during the early part of the fourth quarter of 2022.'

'In sum, Heliogen is progressing on all fronts toward the goals we set for 2022, and I am incredibly proud of the entire team for their efforts which have put us in this position.'

Letter of Intent with Dimensional Energy

Heliogen and Dimensional Energy, a sustainable fuels company, recently entered into a non-binding letter of intent ('LOI') to jointly produce sustainable aviation fuel ('SAF') at Heliogen's concentrated solar thermal demonstration facility in Lancaster, California. This first-of-its-kind collaboration aims to create a reserve of jet fuel created from sunlight and air to enable the rapid decarbonization of the aviation industry. The LOI is subject to negotiation and execution of a definitive agreement.

The companies will work to deploy Heliogen's proprietary, artificial intelligence (AI)-powered HelioHeat™ technology to convert sunlight directly into thermal energy in the form of high temperature steam and air that will be used to produce green hydrogen for Dimensional Energy's Reactor platform. The hydrogen will be produced leveraging the previously announced successful demonstration of Heliogen's concentrated solar technology. As part of the collaboration between Heliogen and Dimensional Energy, the LOI includes a goal of building a fully integrated ~1 barrel per day drop-in ready SAF demonstration. The parties expect a demonstration project to be a first step to develop a pipeline for approximately 3 million barrels of fuel over the next ten years.

2022 Guidance Reaffirmed

Heliogen today also reaffirmed its previously announced 2022 guidance of two to three modules contracted and $20 - $25 million of revenue. Heliogen believes the number of modules contracted is the most useful indicator of demand for its products and technology at this stage in its lifecycle. Over time, Heliogen expects these contracts to be converted to revenue as the projects are installed, although there is no assurance as to the time period for such conversion.

Second Quarter 2022 Financial Results

For the second quarter 2022, Heliogen reported total revenue of $2.4 million, total operating expenses of $28.7 million and net loss of $20.2 million. Heliogen's net loss was driven primarily by the growth of Heliogen's commercial operations which includes increased headcount, non-cash stock-based compensation expense of $11.5 million, and other costs related to being a public company. Heliogen's Adjusted EBITDA, which excludes the non-cash stock-based compensation expense and other impacts, was negative $19.8 million for the second quarter 2022.

Conference Call Information

The Heliogen management team will host a conference call to discuss its second quarter 2022 financial results on Thursday, August 11, 2022, 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.

About Heliogen

Heliogen is a renewable energy technology company focused on eliminating the need for fossil fuels in heavy industry and powering a sustainable future. Heliogen's AI-enabled, modular concentrated solar technology aims to cost-effectively deliver near 24/7 carbon-free energy in the form of heat, power, or green hydrogen fuel at scale – for the first time in history. Heliogen was created at Idealab, the leading technology incubator founded by Bill Gross in 1996. 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 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. Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Heliogen's current and historical results: 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 guidance for full-year 2022, the development of our manufacturing and production facilities, maintaining our trajectory in 2022, achieving our financial and operational goals, progress with potential customers 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) 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; (iii) our ability to access sources of capital to finance operations, growth and future capital requirements; (iv) our ability to maintain and enhance our products and brand, and to attract and retain customers; (v) our ability to scale in a cost effective manner; (vi) changes in applicable laws or regulations; (vii) the ongoing impacts of the COVID-19 pandemic and the potential impacts of Russia's invasion of Ukraine on our business; (viii) developments and projections relating to our competitors and industry; (ix) our ability to access sources of capital to finance operations, growth and future capital requirements; 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 SEC. 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 Balance Sheets

($ in thousands)

(unaudited)

 

June 30,

December 31,

2022

2021

ASSETS

Cash and cash equivalents

$

60,731

$

190,081

Investments, available-for-sale

115,142

32,332

Other current assets

13,921

4,770

Total current assets

189,794

227,183

Non-current assets

47,783

30,265

Total assets

$

237,577

$

257,448

LIABILITIES AND SHAREHOLDERS' EQUITY

Trade payables

$

3,916

$

4,645

Contract liabilities

8,521

513

Contract loss provisions

30,923

397

Other current liabilities

5,794

6,974

Total current liabilities

49,154

12,529

Long-term liabilities

19,477

30,861

Total liabilities

68,631

43,390

Shareholders' equity

168,946

214,058

Total liabilities and shareholders' equity

$

237,577

$

257,448

 

Heliogen, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

($ in thousands, except per share and share data)

(unaudited)

 

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2022

2021

Revenue

$

2,392

$

845

$

5,931

$

1,361

Cost of revenue

2,386

845

39,647

1,361

Gross profit (loss)

6

(33,716

)

Operating expenses:

Selling, general, and administrative

22,589

4,260

42,984

6,412

Research and development

6,147

2,665

15,752

4,273

Total operating expenses

28,736

6,925

58,736

10,685

Operating loss

(28,730

)

(6,925

)

(92,452

)

(10,685

)

Interest income (expense), net

213

(41

)

407

(1

)

SAFE instruments remeasurement

(47,460

)

(47,460

)

Gain (loss) on warrant remeasurement

8,284

(1,979

)

12,310

(2,282

)

Other (expense) income, net

(109

)

72

(185

)

39

Net loss before taxes

(20,342

)

(56,333

)

(79,920

)

(60,389

)

Income tax benefit

125

735

Icons/external Source

Subscribe to the newsletter

Latest issues

View all issues

Company Announcements

Daily decarbonization data and news delivered to your inbox

Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.

Subscribe illustration