Heliogen, Inc. Announces Fourth Quarter and Full Year 2024 Financial and Operational Results
Financial and Operational Highlights
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Continued to prioritize the deployment of our commercially-proven power solutions by taking actions to conserve cash and re-allocate resources from activities that were no longer directly contributing to this goal. Actions taken since September 30, 2024 included:
-
Together with Woodside Energy (
USA ) Inc. (“Woodside”), decided not to pursue construction of a concentrated solar energy facility that was designed to demonstrate at commercial scale our next-generation thermal storage technology, to be built inMojave, California (the “Capella Project”). For clarity, Heliogen’s current commercial offering leverages the technologically-proven and commercially mature form of thermal energy storage technology, which has been deployed in existing global concentrated solar power facilities. -
Concluded the targeted plan implemented in May 2024, which included a workforce reduction, closing of the
Long Beach manufacturing facility (the “Manufacturing Facility”) and a reduction in third-party costs. -
Closed Heliogen’s research and development facility in
Lancaster, California (the “R&D Facility”), which in 2024 had successfully served its purpose of demonstrating Heliogen’s proprietary software could operate in conditions simulating a commercial operating environment. -
Halted construction of Heliogen’s steam plant in west
Texas (the “Texas Steam Plant”).
-
Together with Woodside Energy (
-
Achieved reductions in total selling, general and administrative (“SG&A”) and research and development (“R&D”) expenses for Q4 2024 by
20% sequentially, compared to Q3 2024; and for full year 2024, reductions by25% compared to full year 2023. -
Ended the year with liquidity of
$36.9 million - With guidance from our Board of Directors, continued to explore and evaluate strategic transactions with our third-party financial advisor.
“Reflecting on the past year, I am proud of the Heliogen team for executing the difficult, yet necessary steps we have enacted in order to position us for future success,” said Christie Obiaya, Heliogen’s Chief Executive Officer. “With the increasing importance of achieving domestic energy resilience, we are confident about the role Heliogen’s technology can play in delivering cost-effective, reliable, low-carbon solutions to support a practical energy transition for customers with energy-intensive operations.”
Fourth Quarter and Full Year 2024 Financial Results
During the year ended December 31, 2024, Heliogen took several actions to align Heliogen’s operating structure for commercialization with a technology-centric business model and reduce costs, including closing the Manufacturing Facility, halting construction of the Texas Steam Plant, closing the R&D Facility, concluding the Capella Project and implementing workforce reductions.
The Capella Project advanced key technological innovations, targeting the deployment of a 5 MW concentrated solar energy facility. During the fourth quarter of 2023, Heliogen updated the Capella Project estimate after completing the front-end engineering design phase. As a result of the escalated costs in the updated estimate, Heliogen recorded an unfavorable cumulative adjustment to revenue of
In the fourth quarter of 2024, Heliogen and Woodside decided not to pursue construction of the facility due to the escalated costs and concluded the Capella Project. As a result, Heliogen recorded a favorable cumulative adjustment to project revenue of
For the fourth quarter of 2024, Heliogen reported total revenue of
Total SG&A and R&D expenses were
Impairment and other charges were
In connection with the targeted plan, Heliogen incurred a total of
Net income was
Heliogen’s Adjusted EBITDA was
As of December 31, 2024, Heliogen had available liquidity of
About Heliogen
Heliogen is a renewable energy technology company focused on delivering round-the-clock, low-carbon
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 income (loss) before (i) interest income, (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 technology, expectations around our ability to deliver cost-effective, reliable, low-carbon solutions to support a practical energy transition for customers with energy-intensive operations, the outcome of our steps taken to align our operating structure for commercialization with a technology-centric business model, and our ability to continue to explore and evaluate strategic transactions. 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 ability to fund our future cash obligations and continue as a going concern, (ii) our ability to access sources of capital to finance operations, growth and future capital requirements; (iii) our ability to explore and execute on strategic transactions; (iv) our financial and business performance, including risk of uncertainty in our financial projections and business metrics and any underlying assumptions thereunder; (v) ability to implement changes to our business strategy and future operations; (vi) changes in our financial position, estimated revenues and losses, projected costs, prospects and plans; (vii) our ability to execute our business model, including market acceptance of our planned products and services; (viii) our ability to maintain and enhance our products and brand, and to attract and retain customers; (ix) our ability to scale in a cost-effective manner; (x) changes in applicable laws or regulations; (xi) developments and projections relating to our competitors and industry; and (xii) our ability to protect and commercialize 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 to be filed for the year ended December 31, 2024, as supplemented by any subsequently filed Quarterly Reports on Form 10-Q, 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) |
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Three Months Ended |
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Year Ended |
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December 31, |
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September 30, |
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December 31, |
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|
|
2024 |
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|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
18,385 |
|
|
$ |
(1,159 |
) |
|
$ |
1,050 |
|
|
$ |
23,224 |
|
|
$ |
4,445 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of services revenue (including depreciation) |
|
804 |
|
|
|
456 |
|
|
|
494 |
|
|
|
4,655 |
|
|
|
3,677 |
|
|
Cost of grant revenue |
|
715 |
|
|
|
827 |
|
|
|
616 |
|
|
|
3,380 |
|
|
|
3,517 |
|
|
Contract loss (adjustments) provisions |
|
(74,117 |
) |
|
|
53,002 |
|
|
|
— |
|
|
|
(74,117 |
) |
|
|
52,854 |
|
|
Total cost of revenue |
|
(72,598 |
) |
|
|
54,285 |
|
|
|
1,110 |
|
|
|
(66,082 |
) |
|
|
60,048 |
|
|
Gross profit (loss) |
|
90,983 |
|
|
|
(55,444 |
) |
|
|
(60 |
) |
|
|
89,306 |
|
|
|
(55,603 |
) |
|
|
|
|
|
|
|
|
|
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|
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Operating expenses: |
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|
|
|
|
|
|
|
|
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Selling, general and administrative |
|
6,606 |
|
|
|
13,268 |
|
|
|
7,854 |
|
|
|
36,320 |
|
|
|
49,495 |
|
|
Research and development |
|
3,284 |
|
|
|
5,660 |
|
|
|
4,509 |
|
|
|
16,335 |
|
|
|
21,028 |
|
|
Impairment and other charges |
|
2,662 |
|
|
|
7,339 |
|
|
|
202 |
|
|
|
7,024 |
|
|
|
8,934 |
|
|
Total operating expenses |
|
12,552 |
|
|
|
26,267 |
|
|
|
12,565 |
|
|
|
59,679 |
|
|
|
79,457 |
|
|
Operating income (loss) |
|
78,431 |
|
|
|
(81,711 |
) |
|
|
(12,625 |
) |
|
|
29,627 |
|
|
|
(135,060 |
) |
|
|
|
|
|
|
|
|
|
|
|
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Interest income |
|
406 |
|
|
|
560 |
|
|
|
535 |
|
|
|
2,299 |
|
|
|
1,448 |
|
|
Gain (loss) on warrant remeasurement |
|
(8 |
) |
|
|
216 |
|
|
|
53 |
|
|
|
66 |
|
|
|
542 |
|
|
Other income, net |
|
41 |
|
|
|
2,132 |
|
|
|
223 |
|
|
|
561 |
|
|
|
3,473 |
|
|
Net income (loss) before taxes |
|
78,870 |
|
|
|
(78,803 |
) |
|
|
(11,814 |
) |
|
|
32,553 |
|
|
|
(129,597 |
) |
|
Benefit (provision) for income taxes |
|
(1 |
) |
|
|
2 |
|
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(1 |
) |
|
Net income (loss) |
$ |
78,869 |
|
|
$ |
(78,801 |
) |
|
$ |
(11,815 |
) |
|
$ |
32,547 |
|
|
$ |
(129,598 |
) |
|
|
|
|
|
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Earnings (loss) per share: |
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Basic |
$ |
12.86 |
|
|
$ |
(13.15 |
) |
|
$ |
(1.94 |
) |
|
$ |
5.36 |
|
|
$ |
(22.26 |
) |
|
Diluted |
$ |
12.55 |
|
|
$ |
(13.15 |
) |
|
$ |
(1.94 |
) |
|
$ |
5.22 |
|
|
$ |
(22.26 |
) |
|
|
|
|
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Weighted-average number of shares outstanding: |
|
|
|
|
|
|
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Basic |
|
6,132,588 |
|
|
|
5,991,628 |
|
|
|
6,086,382 |
|
|
|
6,071,530 |
|
|
|
5,822,389 |
|
|
Diluted |
|
6,282,625 |
|
|
|
5,991,628 |
|
|
|
6,086,382 |
|
|
|
6,231,240 |
|
|
|
5,822,389 |
|
|
Heliogen, Inc. Condensed Consolidated Balance Sheets ($ in thousands) (unaudited) |
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December 31, |
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|
2024 |
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|
2023 |
|
ASSETS |
|
|
|
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Cash and cash equivalents |
$ |
36,949 |
|
$ |
62,715 |
|
||
Investments |
|
— |
|
|
12,386 |
|
||
Other current assets |
|
2,129 |
|
|
8,365 |
|
||
Total current assets |
|
39,078 |
|
|
83,466 |
|
||
Non-current assets |
|
5,212 |
|
|
23,567 |
|
||
Total assets |
$ |
44,290 |
|
$ |
107,033 |
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|||||
Trade payables |
$ |
1,450 |
|
$ |
746 |
|
||
Accrued expenses and other current liabilities |
|
11,164 |
|
|
8,907 |
|
||
Contract liabilities |
|
— |
|
|
17,008 |
|
||
Contract loss provisions |
|
— |
|
|
75,340 |
|
||
Total current liabilities |
|
12,614 |
|
|
102,001 |
|
||
Long-term liabilities |
|
2,658 |
|
|
13,047 |
|
||
Total liabilities |
|
15,272 |
|
|
115,048 |
|
||
Stockholders’ equity (deficit) |
|
29,018 |
|
|
(8,015 |
) |
||
Total liabilities and stockholders’ equity (deficit) |
$ |
44,290 |
|
$ |
107,033 |
|
||
Heliogen, Inc. Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA ($ in thousands) (unaudited) |
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Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
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|
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|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
78,869 |
|
|
$ |
(78,801 |
) |
|
$ |
(11,815 |
) |
|
$ |
32,547 |
|
|
$ |
(129,598 |
) |
|
Interest income |
|
(406 |
) |
|
|
(560 |
) |
|
|
(535 |
) |
|
|
(2,299 |
) |
|
|
(1,448 |
) |
|
Provision (benefit) for income taxes |
|
1 |
|
|
|
(2 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
1 |
|
|
Depreciation and amortization |
|
63 |
|
|
|
450 |
|
|
|
107 |
|
|
|
965 |
|
|
|
2,142 |
|
|
EBITDA |
$ |
78,527 |
|
|
$ |
(78,913 |
) |
|
$ |
(12,242 |
) |
|
$ |
31,219 |
|
|
$ |
(128,903 |
) |
|
Non-reoccurring revenue from contract modification (1) |
|
(17,502 |
) |
|
|
— |
|
|
|
— |
|
|
|
(17,502 |
) |
|
|
— |
|
|
Contract loss (adjustments) provisions (2) |
|
(74,117 |
) |
|
|
53,002 |
|
|
|
— |
|
|
|
(74,117 |
) |
|
|
52,854 |
|
|
Contract losses incurred (3) |
|
(154 |
) |
|
|
(4,338 |
) |
|
|
(492 |
) |
|
|
(1,223 |
) |
|
|
(5,966 |
) |
|
Impairment charges (4) |
|
1,352 |
|
|
|
6,766 |
|
|
|
— |
|
|
|
4,706 |
|
|
|
7,774 |
|
|
Manufacturing Facility closing costs (5) |
|
139 |
|
|
|
— |
|
|
|
— |
|
|
|
300 |
|
|
|
— |
|
|
Severance costs (6) |
|
1,171 |
|
|
|
573 |
|
|
|
202 |
|
|
|
2,018 |
|
|
|
1,160 |
|
|
Share-based compensation (7) |
|
(43 |
) |
|
|
914 |
|
|
|
709 |
|
|
|
2,633 |
|
|
|
(5,164 |
) |
|
(Gain) loss on warrant remeasurement (8) |
|
8 |
|
|
|
(216 |
) |
|
|
(53 |
) |
|
|
(66 |
) |
|
|
(542 |
) |
|
Change in fair value of contingent consideration (9) |
|
— |
|
|
|
(1,642 |
) |
|
|
— |
|
|
|
— |
|
|
|
(353 |
) |
|
Employee retention credit (10) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(41 |
) |
|
Adjusted EBITDA |
$ |
(10,619 |
) |
|
$ |
(23,854 |
) |
|
$ |
(11,876 |
) |
|
$ |
(52,032 |
) |
|
$ |
(79,181 |
) |
|
________________ |
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(1) |
|
Represents a favorable cumulative adjustment to project revenue, which primarily consisted of deferred revenue, resulting from the cancellation of the Capella Project. |
(2) |
|
Represents contract loss (adjustments) provisions with customers for which estimated costs to satisfy performance obligations exceeded considerations expected to be realized. During the year ended December 31, 2024 Heliogen recognized a favorable adjustment to the contract loss provision of as a result of the cancellation of the Capella Project compared to the recognition of additional contract loss provisions during the year ended December 31, 2023, primarily associated with the completion of the front-end engineering and design phase on the Capella Project. |
(3) |
|
The contract loss (adjustment) provision is reduced and recognized in cost of revenue as expenditures are incurred during the periods based on percentages of completion and related revenue is recognized. |
(4) |
|
Impairment charges during the year ended December 31, 2024 are associated with impairments to property, plant and equipment related to assets located at the Manufacturing Facility and operating lease right-of-use asset impairments for the Manufacturing Facility lease and the Texas Steam Plant lease. Impairment charges during the year ended December 31, 2023 are associated with our collaboration warrants, cloud computing implementation costs and goodwill. |
(5) |
|
Represents costs associated with closing the Manufacturing Facility |
(6) |
|
Represents severance costs related to employee severance and related benefits. |
(7) |
|
Share-based compensation for the year ended December 31, 2023 includes a one-time reversal of |
(8) |
|
Represents the change in fair value on our outstanding warrant liabilities. |
(9) |
|
Represents the change in fair value of our contingent consideration associated with the acquisition of HelioHeat GmbH. |
(10) |
|
Represents an adjustment to the employee tax credit pursuant to the Coronavirus Aid, Relief and Economic Security Act (CARES Act) recorded as grant revenue. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327359821/en/
Heliogen Investors Contact:
Phelps Morris
Chief Financial Officer
Phelps.Morris@heliogen.com
Heliogen Media Contact:
Cory Ziskind
ICR, Inc.
HeliogenPR@icrinc.com
Source: Heliogen, Inc.
