HYZON ANNOUNCES THIRD QUARTER 2024 FINANCIAL AND OPERATING RESULTS
Rhea-AI Summary
Hyzon announced key achievements in Q3 2024, including securing North America's first hydrogen-powered fuel cell electric refuse truck order from GreenWaste. The company achieved start-of-production for its 200kW fuel cell system and Class 8 fuel cell electric truck. Ten successful customer trials were completed, with majority in commercial negotiations. The company received ISO 9001 certification and demonstrated significant fuel efficiency improvements - refuse trucks showing 230-300% improvement over diesel. Cash and equivalents stood at $30.4 million, with monthly cash burn expected to reduce to $6.5 million by year-end.
Positive
- Secured first purchase agreement for 12 hydrogen-powered refuse trucks from GreenWaste
- Achieved production milestone for 200kW fuel cell system with 700 units annual capacity
- Completed 10 successful customer trials with majority in commercial negotiations
- Demonstrated 230-300% fuel efficiency improvement in refuse trucks vs diesel
- Reduced monthly cash burn from $15M to projected $6.5M by year-end
Negative
- Continuing cash burn of $6.5M monthly indicates ongoing operational losses
- Required additional capital raising through equity offering and ATM program
- Purchase agreement with GreenWaste contingent on meeting certain terms and specifications
News Market Reaction
On the day this news was published, HYZN declined 4.73%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Secured first hydrogen-powered fuel cell electric refuse truck order in
Achieved start-of-production on the 200kW fuel cell system and 200kW Class 8 fuel cell electric truck
Ten successful Class 8 200kW and refuse fuel cell electric truck customer trials completed with majority in commercial agreement negotiations
Recent Highlights
- Secured first-ever, refuse Fuel Cell Electric Truck (FCET) order in
North America from waste industry pioneer, GreenWaste, after a successful trial. - Completed ten successful Class 8 200kW and refuse FCET trials since July 2024 with over twenty additional trials scheduled through February 2025, majority of completed trials in active commercial agreement negotiations.
- Achieved Start of Production (SOP) of its revolutionary,
U.S. -produced, single-stack, 200kW Fuel Cell System (FCS), enabling the manufacture of standardized FCSs at volume for commercial sale. - Achieved SOP of its innovative Class 8 200kW FCET, enabling production of its Class 8 200kW FCET through its collaboration with Fontaine Modification.
- Secured ISO 9001 certification for fuel cell manufacturing, design, and research and development, certifying that Hyzon's development and production processes meet the highest international standards for quality.
"The third quarter marked the next inflection point in Hyzon's evolution, completing significant milestones that we previously committed to on the commercial, technical, and financial front. These achievements mark a pivotal moment in Hyzon's journey and the broader transition to zero-emission transportation, which is now in active commercialization," said Parker Meeks, CEO of Hyzon. "From securing
Third Quarter 2024 Business Highlights
Commercial: Secured First Purchase Agreement; Large Fleet Customer Trial Programs Underway
Hyzon secured a purchase agreement for
The Company continues to focus on large fleet customers in the North American Class 8 and refuse markets with the highest immediate commercial potential. The 200kW Class 8 FCET trial program and refuse FCET trial program began in July of this year, with 10 trials completed to date. All 10 trials have been confirmed as successful by Hyzon's trial customers, meaning that the trials met or exceeded the expectations set forth by the customer. Hyzon has now entered commercial negotiations with the majority of these parties for potential customer orders as the trial typically represents the final step in the development process with fleets prior to commercial agreement negotiations. The trial program has continued to expand to a total of over 30 fleets through February 2025, including those already completed as of November, up from the original 25 that were scheduled in July. The trial schedule represents an average of over 4,200 trucks per fleet and includes ten fleets with over 5,000 trucks.
From a performance perspective, the FCETs are operating at near
Importantly, the Company continues to collect real-world data from the various challenging customer operations where these trucks are put to the test. From a fuel efficiency perspective, the refuse FCET has demonstrated
Technology: Start of Production has been achieved and ISO 9001 Certification received
In a series of significant milestones, Hyzon demonstrated substantial progress in its mission to decarbonize heavy-duty industries through advanced hydrogen fuel cell technology.
On October 8, 2024, National Hydrogen Fuel Cell Day, Hyzon announced the SOP for its revolutionary, single-stack, 200kW FCS at its
The 200kW FCS production milestone follows closely on the heels of Hyzon's previously announced SOP for its innovative Class 8 200kW FCET in September, 2024. This milestone, made possible through collaboration with Fontaine Modification, signifies Hyzon's transition from prototype to series production of high-performance, zero-emission alternatives to diesel in the heavy-duty transport sector.
Further solidifying its commitment to quality and industry-leading standards, on October 9, 2004, Hyzon secured an ISO 9001:2015 certification for its fuel cell manufacturing, design, and research and development activities. This certification, issued by Bureau Veritas, validates that Hyzon's development and production processes meet the highest international standards for quality, underscoring the Company's dedication to delivering safe, high-quality, and reliable zero-emission solutions.
These achievements collectively highlight Hyzon's technological leadership and manufacturing capabilities in the hydrogen fuel cell industry. With the ability to now produce 700 fuel cell systems per year over a three-shift operation, Hyzon is well-positioned to meet growing demand for zero-emission power solutions in heavy-duty applications. The Company's fully integrated manufacturing strategy, from proprietary membrane electrode assembly production to complete fuel cell systems, enables rapid product development and customer responsiveness, setting a new standard for the industry.
Third Quarter 2024 Financial Updates
"I am pleased with the significant commercial and operational progress we have made this year while simultaneously reducing our spend. We began 2023 with an average monthly net cash burn in excess of
As of September 30, 2024, cash and cash equivalents stood at
Conference Call Information
The Hyzon management team will host a conference call to discuss its third quarter financial results on Wednesday, November 13, 2024 at 8:30 a.m. Eastern Time.
Participants can join the call at 1-888-800-7840 or international callers can use 1-646-307-1856 and enter the access code 5240234. To listen to the live audio webcast and Q&A, visit the Hyzon investor relations website at https://investors.hyzonfuelcell.com.
About Hyzon
Hyzon is a global supplier of high-performance hydrogen fuel cell technology focused on providing zero-emission power to decarbonize demanding industries. With agile, high-power technology designed for heavy-duty applications, Hyzon is at the center of a new industrial revolution fueled by hydrogen, an abundant and clean energy source. Hyzon is focusing on deploying its fuel cell technology in heavy-duty commercial vehicles in Class 8 and refuse collection vehicles across
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements regarding the Company's expectations, hopes, beliefs, intentions, or strategies for the future. You are cautioned that such statements are not guarantees of future performance and that the Company's actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause the Company's actual expectations to differ materially from these forward-looking statements include the Company's ability improve its capital structure; Hyzon's liquidity needs to operate its business and execute its strategy, and related use of cash; its ability to raise capital through equity issuances, asset sales or the incurrence of debt; the possibility that Hyzon may need to seek bankruptcy protection; Hyzon's ability to fully execute actions and steps that would be probable of mitigating the existence of substantial doubt regarding its ability to continue as a going concern; our ability to enter into any desired strategic alternative on a timely basis, on acceptable terms; our ability to maintain the listing of our Common Stock on the Nasdaq Capital Market; retail and credit market conditions; higher cost of capital and borrowing costs; impairments; changes in general economic conditions; and the other factors under the heading "Risk Factors" set forth in the Company's Annual Report on Form 10-K, as supplemented by the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. Such filings are available on our website or at www.sec.gov. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
HYZON MOTORS INC. AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
(in thousands, except share and per share amounts) | |||
(unaudited) | |||
September 30, | December 31, | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 30,428 | $ 112,280 | |
Accounts receivable | 86 | 498 | |
Unbilled receivable | 38 | 1,599 | |
Inventory | 6,036 | 28,811 | |
Prepaid expenses and other current assets | 5,833 | 9,335 | |
Total current assets | 42,421 | 152,523 | |
Property, plant, and equipment, net | 3,523 | 18,569 | |
Right-of-use assets | 1,566 | 4,741 | |
Equity method investments | — | 8,382 | |
Investments in equity securities | — | 763 | |
Other assets | 4,179 | 6,157 | |
Total Assets | $ 51,689 | $ 191,135 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable | $ 2,043 | $ 1,479 | |
Accrued liabilities | 20,028 | 30,116 | |
Related party payables | 791 | 265 | |
Contract liabilities | 469 | 8,872 | |
Current portion of lease liabilities | 830 | 1,821 | |
Total current liabilities | 24,161 | 42,553 | |
Long term liabilities | |||
Lease liabilities | 871 | 5,733 | |
Private placement warrant liability | 160 | 160 | |
Earnout liability | 5 | 1,725 | |
July 2024 warrant liability | 4,833 | — | |
Accrued SEC settlement | 8,270 | 8,000 | |
Other liabilities | 1,210 | 2,964 | |
Total Liabilities | $ 39,510 | $ 61,135 | |
Commitments and contingencies | |||
Stockholders' Equity | |||
Common stock, | 1 | — | |
Treasury stock, at cost; 75,392 shares as of September 30, 2024 and December 31, 2023, respectively. | (6,446) | (6,446) | |
Additional paid-in capital | 389,019 | 380,286 | |
Accumulated deficit | (368,974) | (242,640) | |
Accumulated other comprehensive loss | (651) | (514) | |
Total Hyzon Motors Inc. stockholders' equity | 12,949 | 130,686 | |
Noncontrolling interest | (770) | (686) | |
Total Stockholders' Equity | 12,179 | 130,000 | |
Total Liabilities and Stockholders' Equity | $ 51,689 | $ 191,135 | |
HYZON MOTORS INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||
(in thousands, except per share amounts) | |||||||
(unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 134 | $ — | $ 10,430 | $ — | |||
Operating expense: | |||||||
Cost of revenue | 301 | 3,286 | 26,532 | 6,534 | |||
Research and development | 8,074 | 10,857 | 28,720 | 32,794 | |||
Selling, general, and administrative | 29,677 | 21,044 | 76,721 | 100,999 | |||
Restructuring and related charges | 1,604 | 4,885 | 4,768 | 4,885 | |||
Gain on lease termination | (2,096) | — | (2,096) | — | |||
Total operating expenses | 37,560 | 40,072 | 134,645 | 145,212 | |||
Loss from operations | (37,426) | (40,072) | (124,215) | (145,212) | |||
Other income (expense): | |||||||
Change in fair value of private placement warrant liability | — | (240) | — | 561 | |||
Change in fair value of earnout liability | 1,316 | (1,307) | 1,720 | 6,029 | |||
Loss on issuance of July 2024 warrants | (567) | — | (567) | — | |||
Change in fair value of July 2024 warrant liability | 232 | — | 232 | — | |||
Impairment of investments | (9,145) | — | (9,145) | — | |||
Gain on deconsolidation of subsidiary | 2,559 | — | 2,559 | — | |||
Gain on disposal of auctioned assets | 1,721 | — | 1,721 | — | |||
Foreign currency exchange gain (loss) and other expense, net | (534) | (3,877) | (1,217) | (2,447) | |||
Investment income and interest income, net | 524 | 1,441 | 2,500 | 6,501 | |||
Total other income (expense) | (3,894) | (3,983) | (2,197) | 10,644 | |||
Loss before income taxes | $ (41,320) | $ (44,055) | $ (126,412) | $ (134,568) | |||
Income tax expense | — | — | — | — | |||
Net loss | $ (41,320) | $ (44,055) | $ (126,412) | (134,568) | |||
Less: Net loss attributable to noncontrolling interest | (1) | (1) | (78) | (18) | |||
Net loss attributable to Hyzon | $ (41,319) | $ (44,054) | $ (126,334) | $ (134,550) | |||
Comprehensive loss: | |||||||
Net loss | $ (41,320) | $ (44,055) | $ (126,412) | $ (134,568) | |||
Foreign currency translation adjustment | (315) | 2,721 | (143) | 986 | |||
Net change in unrealized gain (loss) on short-term investments | — | 286 | — | (702) | |||
Comprehensive loss | $ (41,635) | $ (41,048) | $ (126,555) | $ (134,284) | |||
Less: Comprehensive income (loss) attributable to noncontrolling interest | (23) | 5 | (84) | 10 | |||
Comprehensive loss attributable to Hyzon | $ (41,612) | $ (41,053) | $ (126,471) | $ (134,294) | |||
Net loss per share attributable to Hyzon: | |||||||
Basic | $ (7.74) | $ (8.99) | $ (24.42) | $ (27.49) | |||
Diluted | $ (7.74) | $ (8.99) | $ (24.42) | $ (27.49) | |||
Weighted average common shares outstanding: | |||||||
Basic | 5,337 | 4,898 | 5,173 | 4,894 | |||
Diluted | 5,337 | 4,898 | 5,173 | 4,894 | |||
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SOURCE Hyzon
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