Filed Pursuant to Rule 424(b)(3)
Registration No. 333-262319
PROSPECTUS SUPPLEMENT NO. 3
(To the Prospectus dated June 7, 2022)
Up to 124,749,204 Shares of Common Stock
Up to 8,566,666 Shares of Common Stock Issuable Upon Exercise of Warrants
Up to 233,333 Warrants to Purchase Common Stock
This prospectus supplement if being filed solely to update and supplement the prospectus, dated June 7, 2022 (the “Prospectus”), which forms a part of our registration statement on Form S-1 (No. 333-262319), with the information contained in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2022 (the “Quarterly Report”). Accordingly, we have attached the Quarterly Report to this prospectus supplement.
The Prospectus and this prospectus supplement relate to the issuance by us of an aggregate of up to 8,566,666 shares of our common stock, $0.0001 par value per share (“Common Stock”), which consists of up to (i) 233,333 shares of Common Stock issuable upon the exercise of 700,000 warrants (the “Private Placement Warrants”) originally issued in a private placement in connection with the initial public offering of Athena Technology Acquisition Corp. (“Athena”) by the holders thereof and (ii) 8,333,333 shares of Common Stock issuable upon the exercise of 8,333,333 warrants (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”) originally issued in the initial public offering of Athena by the holders thereof. We will receive the proceeds from the exercise of any Warrants for cash.
The Prospectus and this prospectus supplement also relate to the offer and sale from time to time by the selling securityholders named in this prospectus (the “Selling Securityholders”) of (i) up to 124,749,204 shares of Common Stock (including up to 16,500,000 shares of common stock issued pursuant to subscription agreements entered into on July 6, 2021 and up to 233,333 shares of Common Stock issuable upon the exercise of the Private Placement Warrants) and (ii) up to 233,333 whole Private Placement Warrants. We will not receive any proceeds from the sale of shares of Common Stock or Warrants by the Selling Securityholders pursuant to this prospectus. However, we will pay the expenses, other than underwriting discounts and commissions and expenses incurred by the Selling Securityholders, for brokerage, accounting, tax or legal services or any other expenses incurred by the Selling Securityholders in disposing of the securities associated with the sale of securities pursuant to this prospectus.
This prospectus supplement updates and supplements the information in the Prospectus and should be read in conjunction with the Prospectus, including any amendments or supplements thereto, which is to be delivered with this prospectus supplement. This prospectus supplement is qualified by reference to the Prospectus, including any amendments or supplements thereto, except to the extent that the information in this prospectus supplement updates and supersedes the information contained therein.
This prospectus supplement is not complete without, and may not be delivered or utilized except in connection with, the Prospectus, including any amendments or supplements thereto.
We are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and are subject to reduced public company reporting requirements. The Prospectus complies with the requirements that apply to an issuer that is an emerging growth company.
Our Common Stock and Public Warrants are listed on The New York Stock Exchange (“NYSE”) under the symbols “HLGN” and “HLGNW,” respectively. On November 8, 2022, the closing price of our Common Stock was $1.34 and the closing price for our Public Warrants was $0.19.
______________________
You should review carefully the risks and uncertainties described in the section entitled “Risk Factors” beginning on page 6 of the Prospectus and under similar headings in any amendments or supplements to the Prospectus to read about factors you should consider before buying our securities.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Prospectus Supplement dated November 9, 2022
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-4204953 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
130 West Union Street, Pasadena California | 91103 | ||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.0001 par value per share | HLGN | New York Stock Exchange | ||||||
Warrants, each whole warrant exercisable for shares of Common stock at an exercise price of $11.50 per share | HLGN.W | New York Stock Exchange |
Large accelerated filer | o | Accelerated filer | o | ||||||||
Non-accelerated filer | x | Smaller reporting company | x | ||||||||
Emerging growth company | x |
Page | |||||
Item 1A. Risk Factors | |||||
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(As Restated) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 35,444 | $ | 190,081 | |||||||
Restricted cash | 655 | — | |||||||||
Investments, available-for-sale (amortized cost of $129,344 and $32,349, respectively) | 124,034 | 32,332 | |||||||||
Receivables | 6,585 | 3,896 | |||||||||
Prepaid and other current assets | 6,121 | 874 | |||||||||
Total current assets | 172,839 | 227,183 | |||||||||
Operating lease right-of-use assets | 15,165 | 16,093 | |||||||||
Property, plant, and equipment, net of accumulated depreciation of $2,012 and $707, respectively | 10,092 | 4,102 | |||||||||
Goodwill | 926 | 4,204 | |||||||||
Intangible assets, net of accumulated amortization of $579 and $27, respectively | 3,232 | 147 | |||||||||
Restricted cash | 1,500 | 1,500 | |||||||||
Other long-term assets | 13,809 | 4,219 | |||||||||
Total assets | $ | 217,563 | $ | 257,448 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Trade payables | $ | 2,335 | $ | 4,645 | |||||||
Contract liabilities | 8,540 | 513 | |||||||||
Contract loss provisions | 30,526 | 397 | |||||||||
Accrued expenses and other current liabilities | 7,410 | 6,974 | |||||||||
Total current liabilities | 48,811 | 12,529 | |||||||||
Debt | 22 | 35 | |||||||||
Operating lease liabilities, net of current portion | 14,361 | 14,183 | |||||||||
Warrant liability | 1,885 | 14,563 | |||||||||
Other long-term liabilities | 1,233 | 2,080 | |||||||||
Total liabilities | 66,312 | 43,390 | |||||||||
Commitments and contingencies (see Note 9) | |||||||||||
Convertible preferred stock – $0.0001 par value; 10,000,000 shares authorized and no shares outstanding as of September 30, 2022 and December 31, 2021 | — | — | |||||||||
Shareholders’ equity | |||||||||||
Common stock, $0.0001 par value; 500,000,000 shares authorized; 191,269,480 shares issued and outstanding (excluding restricted shares of 135,271) as of September 30, 2022 and 183,367,037 shares issued and outstanding (excluding restricted shares of 481,301) as of December 31, 2021 | 19 | 18 | |||||||||
Additional paid-in capital | 425,851 | 380,624 | |||||||||
Accumulated other comprehensive loss | (1,025) | (4) | |||||||||
Accumulated deficit | (273,594) | (166,580) | |||||||||
Total shareholders’ equity | 151,251 | 214,058 | |||||||||
Total liabilities, convertible preferred stock and shareholders’ equity | $ | 217,563 | $ | 257,448 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Services revenue | $ | 1,367 | $ | 2,202 | $ | 4,375 | $ | 3,563 | |||||||||||||||||||||
Grant revenue | 1,733 | — | 4,656 | — | |||||||||||||||||||||||||
Total revenue | 3,100 | 2,202 | 9,031 | 3,563 | |||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||
Cost of services revenue (excluding depreciation and amortization) | 1,690 | 1,375 | 5,668 | 2,736 | |||||||||||||||||||||||||
Cost of grant revenue | 1,733 | — | 4,656 | — | |||||||||||||||||||||||||
Provision for contract losses | — | — | 33,737 | — | |||||||||||||||||||||||||
Total cost of revenue | 3,423 | 1,375 | 44,061 | 2,736 | |||||||||||||||||||||||||
Gross profit (loss) | (323) | 827 | (35,030) | 827 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Selling, general, and administrative | 18,268 | 8,687 | 60,733 | 15,099 | |||||||||||||||||||||||||
Research and development | 11,168 | 4,618 | 26,448 | 8,891 | |||||||||||||||||||||||||
Total operating expenses | 29,436 | 13,305 | 87,181 | 23,990 | |||||||||||||||||||||||||
Operating loss | (29,759) | (12,478) | (122,211) | (23,163) | |||||||||||||||||||||||||
Interest income, net | 259 | 197 | 666 | 407 | |||||||||||||||||||||||||
SAFE instruments remeasurement | — | (15,533) | — | (62,993) | |||||||||||||||||||||||||
Gain (loss) on warrant remeasurement | 369 | (322) | 12,679 | (2,604) | |||||||||||||||||||||||||
Other income (expense), net | 1,256 | (140) | 1,071 | (312) | |||||||||||||||||||||||||
Net loss before taxes | (27,875) | (28,276) | (107,795) | (88,665) | |||||||||||||||||||||||||
Income tax benefit | 46 | — | 781 | — | |||||||||||||||||||||||||
Net loss | (27,829) | (28,276) | (107,014) | (88,665) | |||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | |||||||||||||||||||||||||||||
Unrealized (losses) gains on available-for-sale securities | (18) | 7 | (524) | (7) | |||||||||||||||||||||||||
Cumulative translation adjustment | (173) | (57) | (497) | (57) | |||||||||||||||||||||||||
Total comprehensive loss | $ | (28,020) | $ | (28,326) | $ | (108,035) | $ | (88,729) | |||||||||||||||||||||
Loss per share: | |||||||||||||||||||||||||||||
Loss per share – Basic and Diluted | $ | (0.14) | $ | (2.45) | $ | (0.57) | $ | (8.32) | |||||||||||||||||||||
Weighted average number of shares outstanding – Basic and Diluted | 192,580,125 | 11,545,919 | 188,827,770 | 10,650,897 | |||||||||||||||||||||||||
Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | — | $ | — | 190,093,226 | $ | 19 | $ | 415,526 | $ | (834) | $ | (245,765) | $ | 168,946 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (27,829) | (27,829) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (191) | — | (191) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 723,878 | — | 9,972 | — | — | 9,972 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock options exercised | — | — | 452,376 | — | 142 | — | — | 142 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with vendor agreements | — | — | — | — | 80 | — | — | 80 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with customer agreements | — | — | — | — | 131 | — | — | 131 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | — | $ | — | 191,269,480 | $ | 19 | $ | 425,851 | $ | (1,025) | $ | (273,594) | $ | 151,251 | ||||||||||||||||||||||||||||||||||||
December 31, 2021 (As Restated) | — | $ | — | 183,367,037 | $ | 18 | — | $ | 380,624 | $ | (4) | $ | (166,580) | $ | 214,058 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (107,014) | (107,014) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,021) | — | (1,021) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 971,954 | — | 34,478 | — | — | 34,478 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock options exercised | — | — | 6,930,479 | 1 | 1,056 | — | — | 1,057 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock warrants exercised | — | — | 10 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with vendor agreements | — | — | — | — | 134 | — | — | 134 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with customer agreements | — | — | — | — | 9,559 | — | — | 9,559 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | — | $ | — | 191,269,480 | $ | 19 | $ | 425,851 | $ | (1,025) | $ | (273,594) | $ | 151,251 | ||||||||||||||||||||||||||||||||||||
Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | 117,886,982 | $ | 45,932 | 10,684,355 | $ | 1 | $ | 2,134 | $ | (14) | $ | (89,561) | $ | (87,440) | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (28,276) | (28,276) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (50) | — | (50) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 1,485 | — | — | 1,485 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock options exercised | — | — | 1,302,054 | 1 | 123 | — | — | 124 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | 117,886,982 | $ | 45,932 | 11,986,409 | $ | 2 | $ | 3,742 | $ | (64) | $ | (117,837) | $ | (114,157) | ||||||||||||||||||||||||||||||||||||
December 31, 2020, as reported | 58,554,536 | $ | 45,932 | 4,053,489 | $ | 4 | $ | 1,306 | $ | — | $ | (29,172) | $ | (27,862) | ||||||||||||||||||||||||||||||||||||
Retroactive application of Exchange Ratio | 59,332,446 | — | 4,107,339 | (3) | 3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 117,886,982 | $ | 45,932 | 8,160,828 | $ | 1 | $ | 1,309 | $ | — | $ | (29,172) | $ | (27,862) | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (88,665) | (88,665) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (64) | — | (64) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 2,049 | — | — | 2,049 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock options exercised | — | — | 3,626,266 | 1 | 354 | — | — | 355 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock warrants exercised | — | — | 199,315 | — | 30 | — | — | 30 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | 117,886,982 | $ | 45,932 | 11,986,409 | $ | 2 | $ | 3,742 | $ | (64) | $ | (117,837) | $ | (114,157) |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net loss | $ | (107,014) | $ | (88,665) | |||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||
Depreciation and amortization | 2,289 | 272 | |||||||||||||||
Share-based compensation | 34,478 | 2,049 | |||||||||||||||
SAFE instruments remeasurement | — | 62,993 | |||||||||||||||
Change in fair value of warrants | (12,679) | 2,604 | |||||||||||||||
Change in fair value of contingent consideration | (1,063) | — | |||||||||||||||
Deferred income taxes | (781) | — | |||||||||||||||
Non-cash operating lease expense | 1,199 | — | |||||||||||||||
Other non-cash operating activities | 90 | 947 | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Receivables | (2,778) | (140) | |||||||||||||||
Prepaid and other current assets | (1,706) | 1,170 | |||||||||||||||
Other long-term assets | 392 | (3,864) | |||||||||||||||
Trade payables | (1,061) | 1,347 | |||||||||||||||
Accrued expenses and other current liabilities | 1,128 | 1,921 | |||||||||||||||
Contract liabilities | 8,535 | 1,660 | |||||||||||||||
Contract loss provisions | 30,235 | — | |||||||||||||||
Operating lease liabilities | (810) | (510) | |||||||||||||||
Other long-term liabilities | 1 | 69 | |||||||||||||||
Net cash used in operating activities | (49,545) | (18,147) | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures | (7,313) | (1,428) | |||||||||||||||
Purchases of available-for-sale investments | (237,986) | (41,647) | |||||||||||||||
Maturities of available-for-sale investments | 75,300 | 4,300 | |||||||||||||||
Sales of available-for-sale investments | 65,817 | — | |||||||||||||||
Acquisition of HelioHeat, net of cash acquired | — | (1,684) | |||||||||||||||
Net cash used in investing activities | (104,182) | (40,459) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Proceeds from SAFE instruments, net of issuance costs of $30 thousand | — | 83,411 | |||||||||||||||
Transaction costs paid related to the Business Combination with Athena | (1,274) | — | |||||||||||||||
Repayments on Paycheck Protection Program loan | — | (411) | |||||||||||||||
Proceeds from exercise of stock options | 1,019 | 355 | |||||||||||||||
Proceeds from exercise of common stock warrants | — | 30 | |||||||||||||||
Other financing costs | — | (1,487) | |||||||||||||||
Net cash (used in) provided by financing activities | (255) | 81,898 | |||||||||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (153,982) | 23,292 | |||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 191,581 | 18,334 | |||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE PERIOD | $ | 37,599 | $ | 41,626 |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Cash and cash equivalents | $ | 35,444 | $ | 40,126 | |||||||||||||
Restricted cash (current and long-term) | 2,155 | 1,500 | |||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 37,599 | $ | 41,626 |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Supplemental disclosures: | |||||||||||||||||
Cash paid for interest | $ | — | $ | 3 | |||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | — | 483 | |||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 201 | $ | 16,685 | |||||||||||||
Right-of-use asset removed upon lease termination | 306 | — | |||||||||||||||
Fair value of vendor warrants recognized in equity | 134 | — | |||||||||||||||
Fair value of Project Warrants and Collaboration Warrants recognized in equity | 9,559 | — | |||||||||||||||
Transaction costs incurred but not yet paid | — | 369 | |||||||||||||||
Capital expenditures incurred but not yet paid | 522 | 231 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
$ in thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Project revenue | $ | 1,324 | $ | — | $ | 4,207 | $ | — | |||||||||||||||
Other services revenue | 43 | 2,202 | 168 | 3,563 | |||||||||||||||||||
Total services revenue | 1,367 | 2,202 | 4,375 | 3,563 | |||||||||||||||||||
Grant revenue | 1,733 | — | 4,656 | — | |||||||||||||||||||
Total revenue | $ | 3,100 | $ | 2,202 | $ | 9,031 | $ | 3,563 |
September 30, | December 31, | ||||||||||
$ in thousands | 2022 | 2021 | |||||||||
Trade receivables | |||||||||||
Billed | $ | — | $ | 900 | |||||||
Unbilled | 334 | 1,123 | |||||||||
Total trade receivables | 334 | 2,023 | |||||||||
Grant receivables | |||||||||||
Billed | 1,399 | — | |||||||||
Unbilled | 4,698 | 1,442 | |||||||||
Total grant receivables | 6,097 | 1,442 | |||||||||
Other | 154 | 431 | |||||||||
Total receivables | $ | 6,585 | $ | 3,896 |
Cash paid at closing | $ | 1,714 | |||
Contingent consideration (1) | 2,009 | ||||
Settlement of pre-existing relationship | 45 | ||||
Total fair value of consideration transferred | $ | 3,768 |
As of | |||||||||||||||||
December 31, 2021 | Measurement Period Adjustments | ||||||||||||||||
$ in thousands | Preliminary Valuation | Final Valuation | |||||||||||||||
Cash and cash equivalents | $ | 30 | $ | — | $ | 30 | |||||||||||
Prepaid and other current assets | 33 | — | 33 | ||||||||||||||
Property, plant and equipment, net | 6 | — | 6 | ||||||||||||||
Intangible asset | — | 4,204 | 4,204 | ||||||||||||||
Goodwill | 4,204 | (3,093) | 1,111 | ||||||||||||||
Total assets acquired | 4,273 | 1,111 | 5,384 | ||||||||||||||
Accrued expenses and other current liabilities | 74 | — | 74 | ||||||||||||||
Contract liabilities | 390 | — | 390 | ||||||||||||||
Debt | 41 | — | 41 | ||||||||||||||
Deferred tax liabilities | — | 1,111 | 1,111 | ||||||||||||||
Total liabilities assumed | 505 | 1,111 | 1,616 | ||||||||||||||
Net assets acquired | $ | 3,768 | $ | — | $ | 3,768 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
$ in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Cost of services revenue (excluding depreciation and amortization) | $ | 330 | $ | — | $ | 1,321 | $ | — | ||||||||||||||||||||||||
Selling, general and administrative | 7,562 | 1,346 | 28,696 | 1,729 | ||||||||||||||||||||||||||||
Research and development | 2,080 | 139 | 4,461 | 320 | ||||||||||||||||||||||||||||
Total share-based compensation expense | $ | 9,972 | $ | 1,485 | $ | 34,478 | $ | 2,049 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
$ in thousands, except per share and share data | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Numerator | |||||||||||||||||||||||||||||
Net loss | $ | (27,829) | $ | (28,276) | $ | (107,014) | $ | (88,665) | |||||||||||||||||||||
Denominator | |||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 190,526,219 | 11,545,919 | 187,633,327 | 10,650,897 | |||||||||||||||||||||||||
Weighted-average impact of warrants(1) | 2,053,906 | — | 1,194,443 | — | |||||||||||||||||||||||||
Denominator for basic EPS – weighted-average shares | 192,580,125 | 11,545,919 | 188,827,770 | 10,650,897 | |||||||||||||||||||||||||
Effect of dilutive securities | — | — | — | — | |||||||||||||||||||||||||
Denominator for diluted EPS – weighted-average shares | 192,580,125 | 11,545,919 | 188,827,770 | 10,650,897 | |||||||||||||||||||||||||
Loss per share – Basic | $ | (0.14) | $ | (2.45) | $ | (0.57) | $ | (8.32) | |||||||||||||||||||||
Loss per share – Diluted | $ | (0.14) | $ | (2.45) | $ | (0.57) | $ | (8.32) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Stock options | 32,999,878 | 31,492,075 | 32,999,878 | 31,492,075 | |||||||||||||||||||||||||
Unvested restricted stock units | 11,479,099 | — | 11,479,099 | — | |||||||||||||||||||||||||
Restricted shares issued upon the early exercise of unvested options | 135,271 | 1,338,710 | 135,271 | 1,338,710 | |||||||||||||||||||||||||
Unvested warrants | 2,497,171 | — | 2,497,171 | — | |||||||||||||||||||||||||
Vested warrants | 8,566,656 | 229,841 | 8,566,656 | 229,841 | |||||||||||||||||||||||||
Preferred stock warrants, on an “as converted” basis | — | 381,306 | — | 381,306 | |||||||||||||||||||||||||
Convertible preferred shares, on an “as converted” basis (1) | — | 121,040,751 | — | 121,040,751 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
$ in thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Administrative services provided by Idealab | $ | 133 | $ | 314 | $ | 436 | $ | 1,066 | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
$ in thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Rental revenue | $ | 35 | $ | 314 | $ | 82 | $ | 1,066 | |||||||||||||||||||||
$ in thousands | Changes in fair value of investment securities | Accumulated foreign currency translation adjustments | Total | ||||||||||||||
Balance at June 30, 2022 | $ | (523) | $ | (311) | $ | (834) | |||||||||||
Other comprehensive loss adjustments before reclassifications | (18) | (173) | (191) | ||||||||||||||
Amounts reclassified from AOCL | — | — | — | ||||||||||||||
Net other comprehensive loss | (18) | (173) | (191) | ||||||||||||||
Balance at September 30, 2022 | $ | (541) | $ | (484) | $ | (1,025) | |||||||||||
Balance at December 31, 2021 | $ | (17) | $ | 13 | $ | (4) | |||||||||||
Other comprehensive loss adjustments before reclassifications | (681) | (497) | (1,178) | ||||||||||||||
Amounts reclassified from AOCL | 157 | — | 157 | ||||||||||||||
Net other comprehensive loss | (524) | (497) | (1,021) | ||||||||||||||
Balance at September 30, 2022 | $ | (541) | $ | (484) | $ | (1,025) |
$ in thousands | Changes in fair value of investment securities | Accumulated foreign currency translation adjustments | Total | ||||||||||||||
Balance at June 30, 2021 | $ | (14) | $ | — | $ | (14) | |||||||||||
Other comprehensive loss adjustments before reclassifications | 7 | (57) | (50) | ||||||||||||||
Amounts reclassified from AOCL | — | — | — | ||||||||||||||
Net other comprehensive loss | 7 | (57) | (50) | ||||||||||||||
Balance at September 30, 2021 | $ | (7) | $ | (57) | $ | (64) | |||||||||||
Balance at December 31, 2020 | $ | — | $ | — | $ | — | |||||||||||
Other comprehensive loss adjustments before reclassifications | (7) | (57) | (64) | ||||||||||||||
Amounts reclassified from AOCL | — | — | — | ||||||||||||||
Net other comprehensive loss | (7) | (57) | (64) | ||||||||||||||
Balance at September 30, 2021 | $ | (7) | $ | (57) | $ | (64) |
Three Months Ended September 30, | Nine Months Ended September 30, | Affected line item on the Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||
$ in thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Changes in fair value on investment securities | |||||||||||||||||||||||||||||
Reclassification of realized losses | $ | — | $ | — | $ | 157 | $ | — | Other (expense) income, net | ||||||||||||||||||||
Tax benefit (provision) | — | — | — | — | Benefit for income taxes | ||||||||||||||||||||||||
Net changes in fair value on investment securities | $ | — | $ | — | $ | 157 | $ | — | |||||||||||||||||||||
$ in thousands | Level | September 30, 2022 | December 31, 2021 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Investments | 1 | $ | 128,803 | $ | 32,332 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Public Warrants | 1 | $ | 1,834 | $ | 14,167 | |||||||||||||||
Private Warrants | 2 | $ | 51 | $ | 396 | |||||||||||||||
Contingent consideration (1) | 3 | $ | 946 | $ | 2,009 | |||||||||||||||
($ in thousands) | SAFE Instruments (3) | Legacy Heliogen Preferred Stock Warrants (3) | Contingent Consideration (2) | ||||||||||||||||||||
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Beginning of period | $ | — | $ | — | $ | 2,062 | |||||||||||||||||
Net realized decrease in fair value | — | — | (1,116) | ||||||||||||||||||||
End of period | $ | — | $ | — | $ | 946 | |||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Beginning of period | $ | — | $ | — | $ | 2,009 | |||||||||||||||||
Net realized decrease in fair value | — | — | (1,063) | ||||||||||||||||||||
End of period | $ | — | $ | — | $ | 946 | |||||||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||||||||||||
Beginning of period | $ | 130,871 | $ | 2,329 | $ | — | |||||||||||||||||
Net realized increase in fair value | 15,533 | 321 | — | ||||||||||||||||||||
Acquisition | — | — | 2,009 | ||||||||||||||||||||
End of period | $ | 146,404 | $ | 2,650 | $ | 2,009 | |||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||
Beginning of period | $ | — | $ | 46 | $ | — | |||||||||||||||||
Net realized increase in fair value | 62,993 | 2,604 | — | ||||||||||||||||||||
Issuances (1) | 83,411 | — | — | ||||||||||||||||||||
Acquisition | — | — | 2,009 | ||||||||||||||||||||
End of period | $ | 146,404 | $ | 2,650 | $ | 2,009 |
Private Scenario | |||||||||||||||||
SPAC Scenario | Safe Instruments | Warrants | |||||||||||||||
Scenario probability weighting | 85 | % | 15 | % | 15 | % | |||||||||||
Expected term (in years) | 0.6 | 2.1 | 2.1 | ||||||||||||||
Expected volatility | 55.0 | % | 20.0 | % | 102.5 | % | |||||||||||
Risk-free interest rate | 0.1 | % | 0.3 | % | 0.3 | % | |||||||||||
Dividend yield | — | — | — |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
$ in thousands | Amortized Cost | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 10,508 | $ | (83) | $ | 10,425 | $ | 32,349 | $ | (17) | $ | 32,332 | ||||||||||||||||||||||||||
Commercial paper | 17,493 | (33) | 17,460 | — | — | — | ||||||||||||||||||||||||||||||||
U.S. treasury bills | 96,460 | (311) | 96,149 | — | — | — | ||||||||||||||||||||||||||||||||
Total short-term investments | 124,461 | (427) | 124,034 | 32,349 | (17) | 32,332 | ||||||||||||||||||||||||||||||||
Long-term investments | ||||||||||||||||||||||||||||||||||||||
U.S. treasury bills | 4,883 | (114) | 4,769 | — | — | — | ||||||||||||||||||||||||||||||||
Total long-term investments | 4,883 | (114) | 4,769 | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 129,344 | $ | (541) | $ | 128,803 | $ | 32,349 | $ | (17) | $ | 32,332 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | 2022 | 2021 | $ Change | 2022 | 2021 | $ Change | |||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services revenue | $ | 1,367 | $ | 2,202 | $ | (835) | $ | 4,375 | $ | 3,563 | $ | 812 | |||||||||||||||||||||||||||||||||||
Grant revenue | 1,733 | — | 1,733 | 4,656 | — | 4,656 | |||||||||||||||||||||||||||||||||||||||||
Total revenue | 3,100 | 2,202 | 898 | 9,031 | 3,563 | 5,468 | |||||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of services revenue (excluding depreciation and amortization) | 1,690 | 1,375 | 315 | 5,668 | 2,736 | 2,932 | |||||||||||||||||||||||||||||||||||||||||
Cost of grant revenue | 1,733 | — | 1,733 | 4,656 | — | 4,656 | |||||||||||||||||||||||||||||||||||||||||
Provision for contract losses | — | — | — | 33,737 | — | 33,737 | |||||||||||||||||||||||||||||||||||||||||
Total cost of revenue | 3,423 | 1,375 | 2,048 | 44,061 | 2,736 | 41,325 | |||||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | (323) | 827 | (1,150) | (35,030) | 827 | (35,857) | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 18,268 | 8,687 | 9,581 | 60,733 | 15,099 | 45,634 | |||||||||||||||||||||||||||||||||||||||||
Research and development | 11,168 | 4,618 | 6,550 | 26,448 | 8,891 | 17,557 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 29,436 | 13,305 | 16,131 | 87,181 | 23,990 | 63,191 | |||||||||||||||||||||||||||||||||||||||||
Operating loss | (29,759) | (12,478) | (17,281) | (122,211) | (23,163) | (99,048) | |||||||||||||||||||||||||||||||||||||||||
Other income (expense), net: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income, net | 259 | 197 | 62 | 666 | 407 | 259 | |||||||||||||||||||||||||||||||||||||||||
SAFE instruments remeasurement | — | (15,533) | 15,533 | — | (62,993) | 62,993 | |||||||||||||||||||||||||||||||||||||||||
Gain (loss) warrant remeasurement | 369 | (322) | 691 | 12,679 | (2,604) | 15,283 | |||||||||||||||||||||||||||||||||||||||||
Other income, net | 1,256 | (140) | 1,396 | 1,071 | (312) | 1,383 | |||||||||||||||||||||||||||||||||||||||||
Net loss before taxes | (27,875) | (28,276) | 401 | (107,795) | (88,665) | (19,130) | |||||||||||||||||||||||||||||||||||||||||
Income tax benefit | 46 | — | 46 | 781 | — | 781 | |||||||||||||||||||||||||||||||||||||||||
Net loss | $ | (27,829) | $ | (28,276) | $ | 447 | $ | (107,014) | $ | (88,665) | $ | (18,349) |
$ in thousands | September 30, 2022 | December 31, 2021 | ||||||||||||
Cash and cash equivalents | $ | 35,444 | $ | 190,081 | ||||||||||
Investments, available for sale (maturities less than one year) | 124,034 | 32,332 | ||||||||||||
LT investments, available for sale (maturities greater than one year)(1) | 4,769 | — | ||||||||||||
Total liquidity | $ | 164,247 | $ | 222,413 |
Nine Months Ended September 30, | ||||||||||||||||||||
$ in thousands | 2022 | 2021 | ||||||||||||||||||
Net cash used in operating activities | $ | (49,545) | $ | (18,147) | ||||||||||||||||
Net cash used in investing activities | (104,182) | (40,459) | ||||||||||||||||||
Net cash (used in) provided by financing activities | (255) | 81,898 |
Exhibit Number | Description | Incorporated by Reference | ||||||||||||||||||||||||||||||
Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||
3.1 | 8-K | 001-40209 | 3.1 | January 6, 2022 | ||||||||||||||||||||||||||||
3.2* | ||||||||||||||||||||||||||||||||
31.1* | ||||||||||||||||||||||||||||||||
31.2* | ||||||||||||||||||||||||||||||||
32.1** | ||||||||||||||||||||||||||||||||
32.2** | ||||||||||||||||||||||||||||||||
101.INS* | Inline XBRL Instance Document | |||||||||||||||||||||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||||||||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||||||||||||||||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Heliogen, Inc. | ||||||||
/s/ Bill Gross | ||||||||
Bill Gross | ||||||||
Chief Executive Officer | ||||||||
Dated: | November 8, 2022 | (Principal Executive Officer) | ||||||
/s/ Christiana Obiaya | ||||||||
Christiana Obiaya | ||||||||
Chief Financial Officer | ||||||||
Dated: | November 8, 2022 | (Principal Financial Officer and Principal Accounting Officer) |