Heliogen, Inc. Quarterly Report: Financial Results and Outlook
Heliogen, Inc. has reported a financial update for the quarter ending March 31, 2024. The company’s financial statements include consolidated balance sheets, statements of operations, comprehensive loss, stockholders’ equity (deficit), and cash flows. Management’s discussion and analysis of financial condition and results of operations are also included. The report also covers legal proceedings, risk factors, unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, and other information.
Financial Performance Overview
Revenue and Profitability
Revenue for Q1 2024 was $1.5 million, a 21% decrease from $1.9 million in Q1 2023. This was driven by a $0.5 million decrease in grant revenue.
After recording a gross loss of $0.4 million in Q1 2023, the company swung to a small gross profit of $51 thousand in Q1 2024. This was primarily due to not incurring additional contract loss provisions related to the company’s German operations.
The net loss increased by $4.7 million from Q1 2023 to Q1 2024, from $10.5 million to $15.2 million. This wider net loss was primarily driven by an increase of $8.2 million in SG&A expenses.
| Metric ($ thousands) | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| Revenue | $1,528 | $1,937 | (21%) |
| Gross Profit (Loss) | $51 | ($445) | |
| Net Loss | ($15,225) | ($10,544) | (44%) |
Expenses
SG&A expenses increased by $8.2 million or 197% between Q1 2023 and Q1 2024, from $4.2 million to $12.4 million. This was largely due to a one-time $10.6 million reversal of share-based compensation expense in Q1 2023.
R&D expenses decreased 28% or $1.5 million, from $5.3 million in Q1 2023 to $3.8 million in Q1 2024. This was driven by headcount reductions made in 2023.
| Expense ($ thousands) | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| SG&A | $12,387 | $4,165 | 197% |
| R&D | $3,791 | $5,260 | (28%) |
Cash Flows and Liquidity
The company used $14.3 million in operating activities during Q1 2024, compared to using $24.1 million during Q1 2023. This reduction in cash used was driven by headcount and discretionary spending reductions.
Cash from investing activities was $9.9 million in Q1 2024, compared to $17.3 million in Q1 2023. This cash provided was from securities maturities.
Ending liquidity fell slightly from $60.7 million at December 31, 2023 to $59.3 million at March 31, 2024.
| Cash Flow Item ($ thousands) | Q1 2024 | Q1 2023 |
|---|---|---|
| Operating Cash Used | ($14,313) | ($24,132) |
| Investing Cash Provided | $9,850 | $17,253 |
| Ending Liquidity | $59,284 | $60,726 |
The company believes its current liquidity position provides runway into late 2024. However, additional capital raises and/or cost reductions will likely be needed for the company to continue as a going concern.
Business Outlook
The company is continuing to develop its solar concentration technology and build commercial scale facilities for customers.
However, historically the company has been unprofitable with negative cash flows from operations. The current liquidity position only provides runway into late 2024.
Path to Profitability
Management has engaged a financial advisor to assess options to raise additional capital, which is needed for the company to have sufficient liquidity to reach profitability.
Additionally, management is exploring opportunities for further cost reductions after making headcount and spending cuts in 2023. Generating revenue growth from commercial projects and engineering services could also improve cash flows.
However, there is no guarantee sufficient capital can be raised or costs reduced enough to achieve profitability. Failing to do so could risk the company continuing as a going concern past 2024.
Technology & Market Outlook
The contracted backlog related to the company’s project pipeline and engineering services provides revenue visibility in the near term.
Longer term, to drive growth, the company will need to continue advancing its solar concentration technology and bringing new commercial scale facilities into operation.
If the technology proves viable at scale with further improvements in efficiency and cost, it could represent a major market opportunity in renewable energy. However, the technology still needs to demonstrate real-world performance.
