Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Reaffirms 2022 Guidance

PASADENA, CA, August 10, 2022 – 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 first customer’s autonomous cleaning vehicle at Heliogen’s demonstration facility in Lancaster, California

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 power, heat, 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 letter of intent (“LOI”) to jointly produce sustainable aviation fuel at Heliogen’s 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 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 supplying fuel to power a carbon-neutral commercial airline test flight, and the parties intend the demonstration project to be a first step in a pipeline to develop [X amount of] fuel over the next ten years.

2022 Guidance Reaffirmed

Heliogen today also reaffirmed its previously announced 2022 guidance of between two and 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 related costs for an emerging growth 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 Investor Contact

Louis Baltimore

Investor Relations

Louis.Baltimore@Heliogen.com

Heliogen Media Contact:

Cory Ziskind

ICR, Inc.

HeliogenPR@icrinc.com

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            39,64739,647              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                    —
Net loss            (20,217)             (56,333)           (79,185)           (60,389)
Other comprehensive loss, net of taxes       
Unrealized losses on available-for-sale securities                  (127)                       (2)                 (506)                   (14)
Cumulative translation adjustment                  (323)                       —                 (324)                    —
Total comprehensive loss$          (20,667) $          (56,335) $        (80,015) $        (60,403)
        
Loss per share       
Loss per share – Basic and Diluted$              (0.11) $              (5.30) $            (0.42) $            (5.92)
Weighted average number of shares outstanding – Diluted    190,182,474       10,623,517 187,123,737     10,195,971

Non-GAAP Financial Measures

EBITDA represents condensed consolidated net loss before (i) interest (income) expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

Adjusted EBITDA represents 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.

The following reconciles net loss to EBITDA and Adjusted EBITDA for the periods as shown:

 Three Months Ended June 30, Six Months Ended June 30,
$ in thousands2022 2021 2022 2021
Net loss$          (20,217) $          (56,333) $          (79,185) $          (60,389)
Adjustments       
Interest (income) expense, net                  (213)                       41                   (407)                         1
Income tax benefit                  (125)                       —                   (735)                       —
Depreciation and amortization                   693                       80                 1,453                    134
EBITDA$          (19,862) $          (56,212) $          (78,874) $          (60,254)
Adjustments       
SAFE instruments remeasurement(1)                      —               47,460                       —               47,460
(Gain) loss on warrant remeasurement(2)               (8,284)                 1,979             (12,310)                 2,282
Share-based compensation              11,524                    353               24,506                    564
Provision for contract losses (3)                      —                       —               33,737                       —
Amortization of provision for contract losses (3)               (3,131)                       —                (3,160)                       —
Adjusted EBITDA$          (19,753) $            (6,420) $          (36,101) $            (9,948)

__________________

  1. Represents the change in fair value on our SAFE instruments which were converted to common stock immediately prior to the closing of the business combination with Athena Technology Acquisition Corp.
  2. Represents the change in fair value on our warrant liabilities for the outstanding warrants that we assumed in our business combination with Athena Technology Acquisition Corp.
  3. Represents contract losses with customers for which estimated costs to satisfy performance obligations exceeded considerations expected to be realized. The contract losses are amortized to cost of sales as revenue is recognized.
Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Heliogen and Dimensional Energy Announce First-of-its-Kind Collaboration to Produce Carbon-Free Sustainable Aviation Fuel from Concentrated Sunlight and Green Hydrogen

Initiative to demonstrate technology and produce jet fuel reserves for commercially viable carbon neutral flight

PASADENA, Calif., and ITHACA, N.Y., August 8, 2022 — Heliogen, Inc. (NYSE: HLGN), a leading provider of AI-enabled concentrated solar energy technology, today announced it has entered into a letter of intent (“LOI”) with Dimensional Energy, a sustainable fuels company, to jointly produce sustainable aviation fuel (“SAF”) at Heliogen’s concentrated solar thermal demonstration facility in Lancaster, Calif. 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 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. 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.

As previously announced, Dimensional Energy has signed a commercial agreement to supply United Airlines with 300 million gallons of SAF over 20 years.

The airline industry is responsible for nearly 3% of global carbon dioxide emissions, while the United Nations expects airplane emissions of carbon dioxide to triple by 2050. SAF is a direct replacement for conventional jet fuel, and can enable the rapid decarbonization of the global aviation sector when produced from carbon-free energy sources like the sun instead of petroleum. The SAF market is projected to grow from $219 million in 2021 to $15.7 billion by 2030, expanding at a 60.8% CAGR, according to ResearchandMarkets.com.

“At Heliogen, our mission is to decarbonize industry by delivering advanced renewable energy systems that are more affordable than fossil fuels and we are thrilled to collaborate with Dimensional Energy to advance the decarbonization of the aviation industry,” said Bill Gross, Founder and Chief Executive Officer, Heliogen. “Dimensional’s flexible thermal utilization platform is the most scalable and cost effective solution, and when combined with Heliogen’s transformative concentrated solar technology, this partnership brings us one crucial step closer to a future where we can fly planes on fuel created by sunlight and air – not fossil fuels.”

“This collaboration with Heliogen represents a key development in our vision of a world free from fossil fuel dependency,” said Jason Salfi, Co-founder and Chief Executive Officer, Dimensional Energy. “Leveraging Heliogen’s breakthrough technology to use sunlight to produce SAF will help demonstrate the potential for a truly carbon-free, more affordable, and drop-in replacement for conventional jet fuel.”

About Heliogen

Heliogen is a renewable energy technology company focused on decarbonizing industry and empowering a sustainable future. The company’s concentrated solar energy and thermal storage systems aim to deliver carbon-free heat, power, or green hydrogen at scale to support round-the-clock industrial operations. Powered by AI, computer vision and robotics, Heliogen is focused on providing robust clean energy solutions that accelerate the transition to renewable energy, without compromising reliability, availability, or cost. For more information about Heliogen, please visit heliogen.com

About Dimensional

Dimensional Energy envisions a world free from fossil fuel dependency. We use carbon dioxide emissions as a replacement for fossil carbon to make the fuels and products people use every day. Our team of subject matter experts come from all over the world with a shared purpose of making the sustainable materials necessary for a truly circular economy and bringing about climate justice for all. Our technology can produce energy locally, at a scale that can satisfy global demand without extracting resources or fomenting conflict. Learn more at www.dimensionalenergy.com.

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 the production of, and current and projected market for, sustainable aviation fuel. 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 Media Contact:

Cory Ziskind

ICR, Inc.

HeliogenPR@icrinc.com

Heliogen Investor Contact:

Louis Baltimore

Louis.Baltimore@heliogen.com

Dimensional Media Contact:

Dan Cogan

dan@dimensionalenergy.com

Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Heliogen, Inc. Schedules Release of Second Quarter 2022 Financial Results and Conference Call

Pasadena, CA – August 1, 2022 – Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of AI-enabled concentrated solar energy, today announced that it will release financial and operating results for the second quarter 2022 after the market close on Wednesday, August 10, 2022. This release will be followed by a conference call for investors at 10:00 AM EDT on Thursday, August 11. Bill Gross, Founder and Chief Executive Officer of Heliogen, and Christie Obiaya, Chief Financial Officer will host the call.

The conference call may be accessed via a live webcast on a listen-only basis in the Investors section of Heliogen’s website at investors.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.

A replay of the webcast will be available shortly after the call on the Investors 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. The company’s AI-enabled, modular concentrated solar energy 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.

Heliogen Investor Contact

Louis Baltimore

VP, Investor Relations

Louis.Baltimore@heliogen.com

Heliogen Media Contact:

Cory Ziskind

ICR, Inc.

HeliogenPR@icrinc.com

Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Heliogen, Inc. Set to Join Russell 3000® Index

PASADENA, Calif. – June 21, 2022 — Heliogen, Inc. (“Heliogen”), a leading provider of AI-enabled concentrated solar energy technology, is set to join the broad-market Russell 3000Ò Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective after the US market opens on June 27, according to a final list of index additions posted June 17.

Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000Ò Index or small-cap Russell 2000Ò Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

“The inclusion of Heliogen in the Russell indexes is further evidence of our company’s growth and progress since our public listing in December,” said Bill Gross, Founder and Chief Executive Officer of Heliogen. “The Heliogen team looks forward to continually increasing our market presence, and speaking with an ever broadening range of investors interested in decarbonizing heavy industry worldwide.”

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $12 trillion in assets are benchmarked against Russell’s US indexes. Russell indexes are part of FTSE Russell, a leading global index provider.

For more information on the Russell 3000® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell 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. The company’s AI-enabled, modular concentrated solar energy 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.

About FTSE Russell:

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $20 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com.

Heliogen Investor Contact:

Louis Baltimore

VP, Investor Relations

Louis.Baltimore@heliogen.com

Heliogen Media Contact:

Cory Ziskind

ICR, Inc.

HeliogenPR@icrinc.com

Heliogen, Inc. Announces Second Quarter 2022 Financial And Operational Results; Reports Progress On Scale Up Of Long Beach Facility

Heliogen, Inc. Announces First Quarter 2022 Financial and Operational Results; Reports Progress on Deployment of Commercial-Scale Solar Energy Systems

Reaffirms 2022 Guidance

PASADENA, CA, May 23, 2022 – Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of AI-enabled concentrated solar energy technology, today provided its first quarter 2022 financial and operational results and reaffirmed its previously announced guidance for 2022.

First Quarter 2022 Highlights

  • Signed full project agreement with Woodside Energy (USA) Inc. (“Woodside”) for the commercial-scale demonstration and deployment of Heliogen’s AI-enabled concentrated solar energy technology
  • Entered into a collaboration agreement with Woodside to jointly market Heliogen’s technology in Australia
  • Began site preparation and setup for its first full-scale manufacturing facility in Long Beach, California

Recent 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
  • Reported significant progress in the operationalization of the Long Beach manufacturing facility

Executive Commentary

“Heliogen’s progress in deploying our groundbreaking solar energy technology with world class partners continued at a rapid pace during the first quarter of this year,” said Bill Gross, Founder and Chief Executive Officer of Heliogen. “The momentum we built during 2021 has put us in a great position to maintain our trajectory in 2022 and continue meeting milestones on our path to deployment of solar energy systems for heavy industry. We remain on track to achieve our financial and operational goals this year, which will serve as the foundation for our continued growth in 2023 and beyond.”

“During the first quarter, we finalized and signed the full project agreement with Woodside for our first commercial-scale, single-module 5 MWe facility,” continued Gross. “We continue to make great progress with several other potential customers including global metals and mining company Rio Tinto. I’m also pleased with the discussions taking place with Woodside as we kick off our collaboration effort to jointly market Heliogen’s technology in Australia.”

“On the manufacturing and development side, we have made rapid progress on the build-out of our facility in Long Beach, California. Multiple fully-automated pilot production lines are now operational along with the vast majority of our reliability and testing lab. We remain on track for the main production lines to be operational in the second half of this year. The impressive progress our production team has made on this facility is a testament to their ingenuity and efficiency, which we expect to apply across all manufacturing, installation and operational efforts,” concluded Gross.

2022 Guidance Reaffirmed

Heliogen today also reaffirmed its previously announced 2022 guidance of between two and 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.

First Quarter 2022 Financial Results

For the first quarter 2022, Heliogen reported total revenue of $3.5 million, total operating expenses of $30.0 million and net loss of $59.0 million. Heliogen’s net loss was driven primarily by a non-cash provision for contract losses of $33.8 million related to its first commercial-scale facility and non-cash share-based compensation expense of $13.0 million. Heliogen’s Adjusted EBITDA, which excludes these and other impacts, was negative $16.3 million for the first quarter 2022.

Conference Call Information

The Heliogen management team will host a conference call to discuss its first quarter 2022 financial results on Monday, May 23, 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 (1-201-689-8563 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 Investor Contact

Louis Baltimore

Investor Relations

Louis.Baltimore@Heliogen.com

Heliogen Media Contact:

Cory Ziskind

ICR, Inc.

HeliogenPR@icrinc.com

Heliogen, Inc.

($ in thousands, except share data)

Condensed Consolidated Balance Sheets

(unaudited)

 March 31, December 31,
 2022 2021
ASSETS   
Cash and cash equivalents$           63,615 $         190,081
Investments, available-for-sale           128,269              32,332
Other current assets             20,973                4,770
Total current assets           212,857            227,183
Non-current assets             43,310              30,265
Total assets$         256,167 $         257,448
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Trade payables$             2,294 $             4,645
Contract liabilities               7,866                   513
Contract loss provisions             34,188                   397
Other current liabilities               6,266                6,974
Total current liabilities             50,614              12,529
Long-term liabilities             28,250              30,861
Total liabilities             78,864              43,390
Shareholders’ equity           177,303            214,058
Total liabilities, convertible preferred stock, and shareholders’ equity$         256,167 $         257,448

Heliogen, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

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

(unaudited)

 Three Months Ended March 31,
 2022 2021
Revenue$             3,539 $                516
Cost of revenue             37,261                   516
Gross loss            (33,722)                     —
    
Operating expenses:   
Selling, general, and administrative             20,395                2,152
Research and development               9,605                1,608
Total operating expenses             30,000                3,760
Operating loss            (63,722)               (3,760)
    
Interest income, net                  194                     40
Gain (loss) on warrant remeasurement               4,026                  (303)
Other expense, net                   (76)                    (33)
Net loss before taxes            (59,578)               (4,056)
Income tax benefit                  610                     —
Net loss            (58,968)               (4,056)
Other comprehensive loss, net of taxes   
Unrealized losses on available-for-sale securities                 (379)                    (12)
Cumulative translation adjustment                     (1)                     —
Total comprehensive loss$         (59,348) $            (4,068)
    
Loss per share   
Loss per share – Basic and Diluted$              (0.32) $              (0.42)
Weighted average number of shares outstanding – Diluted    184,031,015         9,763,675

Non-GAAP Financial Measures

EBITDA represents condensed consolidated net loss before (i) interest (income) expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

Adjusted EBITDA represents 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.

The following reconciles net loss to EBITDA and Adjusted EBITDA for the periods as shown:

 Three Months Ended March 31,
$ in thousands2022 2021
Net loss$         (58,968) $            (4,056)
Adjustments   
Interest income, net                 (194)                    (40)
Income tax benefit                 (610)                     —
Depreciation and amortization                  760                     54
EBITDA$         (59,012) $            (4,042)
Adjustments   
(Gain) loss on warrant remeasurement(1)              (4,026)                   303
Share-based compensation             12,982                   211
Provision for contract losses, net(2)             33,766                     —
Adjusted EBITDA$         (16,290) $            (3,528)

__________________

(1) Represents the change in fair value on our warrant liabilities for the outstanding warrants that we assumed in our business combination with Athena Technology Acquisition Corp.

(2) Represents contract losses related to three contracts with customers for which estimated costs to satisfy performance obligations exceeded considerations expected to be realized.