Heliogen (HLGN) Q2 2024 earnings summary

Executive summary

• Implemented a targeted cost reduction plan in May 2024, including workforce reduction, Long Beach facility closure, and third-party cost cuts to align with a technology-centric, capital-light model.

• Q2 2024 revenue was $2.3 million, primarily from the Capella Project and engineering services.

• Net loss for Q2 2024 was $19.3 million, including $4.1 million in impairment and other charges and a $1.7 million inventory reserve.

• Liquidity stood at $51.8 million as of June 30, 2024, with no debt.

• Delisted from NYSE in June 2024; common stock now trades on OTCQX.

Financial highlights

• Q2 2024 revenue increased to $2.3 million from $1.4 million in Q2 2023.

• Q2 2024 gross loss was $1.7 million, mainly due to a $1.7 million inventory reserve for excess and obsolete inventory.

• Net loss for Q2 2024 was $19.3 million, improved from $21.7 million in Q2 2023.

• Cash and cash equivalents were $51.8 million as of June 30, 2024, down from $62.7 million at year-end 2023.

• Six-month 2024 revenue was $3.8 million, up $0.5 million year-over-year; net loss was $34.5 million, compared to $32.2 million in the prior year.

Outlook and guidance

• Management expects continued operating losses and significant cash outflows for at least the next few years.

• Substantial doubt exists about the ability to fund cash obligations for the next 12 months; cost-saving measures and capital-raising efforts are ongoing.

• Existing liquidity is expected to fund operations through the first half of 2025, assuming no additional funding.

• West Texas commercial-scale steam plant remains on track for mechanical completion by year-end 2024.

• Company continues to pursue a technology-centric, capital-light model and is evaluating strategic alternatives.