Hyliion Holdings Reports Fourth-Quarter and Full-Year 2023 Financial Results
Key Business Highlights
- Announced today, the KARNOTM generator is expected to qualify for up to a 40% tax credit under the Inflation Reduction Act’s Infrastructure Tax Credit (ITC)
-
Announced today, Detmar Logistics executed a letter of intent for an initial KARNO unit to be deployed in the
Permian Basin to operate on waste flare gas -
Executed a letter of intent to provide KARNO generators to
GTL Leasing - Confirmed plans to deliver initial KARNO generator units to customers in late 2024
- Began printing production-intent design components of the KARNO generator
-
Successfully tested KARNO reactor technology on unprocessed
Permian Basin gas; results surpassed emissions standards by 98% for CO and 76% for NOx -
Appointed
Govindaraj Ramasamy as Chief Commercial Officer -
Announced
$20 million Stock Repurchase Program -
Ended the year with
$291 million of total cash and investments -
Guidance of
$40 to$50 million cash expenditures for KARNO development in 2024
Executive Commentary
“I’m pleased to report that the company’s strategic shift to wind down powertrain operations and focus on our KARNO generator is on track, with significant achievements made in advancing our generator technology and engaging prospective customers during the quarter,” said Hyliion’s Founder and CEO,
KARNO Commercial Updates
Today, the company announced that, under the Inflation Reduction Act, the KARNO generator is expected to be characterized the same as a fuel cell, enabling customers to qualify for up to a 40% tax credit under the current ITC.
In addition to Detmar,
Recent technological advancements include beginning to print production-intent design parts of the BETA design of the KARNO generator. The BETA generator design will go through validation throughout 2024 and then is expected to be ready for customer deployments later this year.
The company also tested unprocessed flare gas that was collected from the
Powertrain Wind-Down
In
Financial Highlights and Guidance
Fourth quarter operating expenses totaled
Full-year expenses totaled
For 2024, total cash consumed by the KARNO generator business is expected to be between
Projections for 2025 include growth of KARNO generator deliveries with proceeds from sales in the low double-digit millions of dollars. The company also projects gross margins to be approximately break-even or slightly negative and cash spending to grow modestly compared to 2024.
About
Forward Looking Statements
The information in this press release includes “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. All statements, other than statements of present or historical fact included in this press release, regarding
CONSOLIDATED STATEMENTS OF OPERATIONS (Dollar amounts in thousands, except share and per share data) |
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|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
||||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Product sales and other |
$ |
— |
|
|
$ |
1,095 |
|
|
$ |
672 |
|
|
$ |
2,106 |
|
Total revenues |
|
— |
|
|
|
1,095 |
|
|
|
672 |
|
|
|
2,106 |
|
Cost of revenues |
|
|
|
|
|
|
|
||||||||
Product sales and other |
|
41 |
|
|
|
1,618 |
|
|
|
1,716 |
|
|
|
8,778 |
|
Total cost of revenues |
|
41 |
|
|
|
1,618 |
|
|
|
1,716 |
|
|
|
8,778 |
|
Gross loss |
|
(41 |
) |
|
|
(523 |
) |
|
|
(1,044 |
) |
|
|
(6,672 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
8,768 |
|
|
|
21,827 |
|
|
|
82,240 |
|
|
|
110,370 |
|
Selling, general and administrative |
|
12,346 |
|
|
|
9,733 |
|
|
|
42,611 |
|
|
|
41,988 |
|
Exit and termination costs |
|
11,474 |
|
|
|
— |
|
|
|
11,474 |
|
|
|
— |
|
Total operating expenses |
|
32,588 |
|
|
|
31,560 |
|
|
|
136,325 |
|
|
|
152,358 |
|
Loss from operations |
|
(32,629 |
) |
|
|
(32,083 |
) |
|
|
(137,369 |
) |
|
|
(159,030 |
) |
Interest income |
|
3,463 |
|
|
|
2,658 |
|
|
|
13,808 |
|
|
|
5,724 |
|
Gain (loss) on impairment and disposal of assets |
|
— |
|
|
|
70 |
|
|
|
1 |
|
|
|
(19 |
) |
Other income (expense), net |
|
36 |
|
|
|
(32 |
) |
|
|
50 |
|
|
|
(32 |
) |
Net loss |
$ |
(29,130 |
) |
|
$ |
(29,387 |
) |
|
$ |
(123,510 |
) |
|
$ |
(153,357 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share, basic and diluted |
$ |
(0.16 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding, basic and diluted |
|
182,885,328 |
|
|
|
179,719,018 |
|
|
|
181,411,069 |
|
|
|
175,400,486 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) |
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|
|
|||||
|
|
2023 |
|
|
|
2022 |
Assets |
|
|
|
|||
Current assets |
|
|
|
|||
Cash and cash equivalents |
$ |
12,881 |
|
|
$ |
119,468 |
Accounts receivable, net |
|
40 |
|
|
|
1,136 |
Inventory |
|
— |
|
|
|
74 |
Prepaid expenses and other current assets |
|
18,483 |
|
|
|
9,795 |
Short-term investments |
|
150,297 |
|
|
|
193,740 |
Total current assets |
|
181,701 |
|
|
|
324,213 |
|
|
|
|
|||
Property and equipment, net |
|
9,987 |
|
|
|
5,606 |
Operating lease right-of-use assets |
|
7,070 |
|
|
|
6,470 |
Intangible assets, net |
|
— |
|
|
|
200 |
Other assets |
|
1,439 |
|
|
|
1,686 |
Long-term investments |
|
128,186 |
|
|
|
108,568 |
Total assets |
$ |
328,383 |
|
|
$ |
446,743 |
|
|
|
|
|||
Liabilities and stockholders’ equity |
|
|
|
|||
Current liabilities |
|
|
|
|||
Accounts payable |
$ |
4,224 |
|
|
$ |
2,800 |
Current portion of operating lease liabilities |
|
847 |
|
|
|
347 |
Accrued expenses and other current liabilities |
|
10,051 |
|
|
|
11,535 |
Total current liabilities |
|
15,122 |
|
|
|
14,682 |
|
|
|
|
|||
Operating lease liabilities, net of current portion |
|
6,792 |
|
|
|
6,972 |
Other liabilities |
|
203 |
|
|
|
1,515 |
Total liabilities |
|
22,117 |
|
|
|
23,169 |
|
|
|
|
|||
Commitments and contingencies |
|
|
|
|||
|
|
|
|
|||
Stockholders’ equity |
|
|
|
|||
Common stock, |
|
18 |
|
|
|
18 |
Additional paid-in capital |
|
404,045 |
|
|
|
397,810 |
|
|
(33 |
) |
|
|
— |
(Accumulated deficit) retained earnings |
|
(97,764 |
) |
|
|
25,746 |
Total stockholders’ equity |
|
306,266 |
|
|
|
423,574 |
Total liabilities and stockholders’ equity |
$ |
328,383 |
|
|
$ |
446,743 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands) |
|||||||
|
Year Ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(123,510 |
) |
|
$ |
(153,357 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
3,511 |
|
|
|
1,227 |
|
Amortization and accretion of investments, net |
|
(2,868 |
) |
|
|
1,250 |
|
Noncash lease expense |
|
1,496 |
|
|
|
1,244 |
|
Inventory write-down |
|
1,139 |
|
|
|
5,641 |
|
(Gain) loss on impairment and disposal of assets |
|
(1 |
) |
|
|
19 |
|
Share-based compensation |
|
6,217 |
|
|
|
6,979 |
|
Provision for doubtful accounts |
|
— |
|
|
|
114 |
|
Acquired in-process research and development |
|
— |
|
|
|
28,752 |
|
Change in operating assets and liabilities, net of effects of business acquisition: |
|
|
|
||||
Accounts receivable |
|
1,096 |
|
|
|
(1,180 |
) |
Inventory |
|
(1,065 |
) |
|
|
(5,601 |
) |
Prepaid expenses and other assets |
|
463 |
|
|
|
(571 |
) |
Accounts payable |
|
1,356 |
|
|
|
(4,660 |
) |
Accrued expenses and other liabilities |
|
(3,020 |
) |
|
|
4,571 |
|
Operating lease liabilities |
|
(1,776 |
) |
|
|
(1,305 |
) |
Net cash used in operating activities |
|
(116,962 |
) |
|
|
(116,877 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment and other |
|
(7,401 |
) |
|
|
(2,885 |
) |
Proceeds from sale of property and equipment |
|
2 |
|
|
|
152 |
|
Purchase of in-process research and development |
|
— |
|
|
|
(14,428 |
) |
Payments for security deposit, net |
|
(45 |
) |
|
|
— |
|
Purchase of investments |
|
(189,670 |
) |
|
|
(268,584 |
) |
Proceeds from sale and maturity of investments |
|
215,422 |
|
|
|
263,723 |
|
Net cash provided by (used in) investing activities |
|
18,308 |
|
|
|
(22,022 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of common stock options |
|
257 |
|
|
|
79 |
|
Taxes paid related to net share settlement of equity awards |
|
(239 |
) |
|
|
(157 |
) |
Repurchase of treasury stock |
|
(33 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(15 |
) |
|
|
(78 |
) |
|
|
|
|
||||
Net decrease in cash and cash equivalents and restricted cash |
|
(98,669 |
) |
|
|
(138,977 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
120,133 |
|
|
|
259,110 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
21,464 |
|
|
$ |
120,133 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213373401/en/
press@hyliion.com
Investor Relations
ir@hyliion.com
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