hlg-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number: 001-40209

Heliogen, Inc.

(Exact name of registrant as specified in its charter)


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)

Registrant's telephone number, including area code: (626) 720-4530

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.0001 par value per share

HLGN

OTCQX

Warrants, each 35 warrants exercisable for one share of common stock at an exercise price of $402.50 per share

HLGNW

OTCPK

Preferred Share Purchase Rights

N/A

OTCQX

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

As of November 4, 2024, the registrant had 6,049,012 shares of common stock, par value $0.0001 per share outstanding.

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			Page
Cautionary Note Regarding Forward-Looking Statements			3
Part I - Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets			5
Consolidated Statements of Operations			6
Consolidated Statements of Comprehensive Loss			7
Consolidated Statements of Stockholders’ Equity (Deficit)			8
Consolidated Statements of Cash Flows			10
Notes to Unaudited Consolidated Financial Statements			12
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			32
Item 4. Controls and Procedures			33
Part II - Other Information
Item 1. Legal Proceedings			34
Item 1A. Risk Factors			34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			34
Item 3. Defaults Upon Senior Securities			34
Item 4. Mine Safety Disclosures			34
Item 5. Other Information			34
Item 6. Exhibits			35
Signatures			36

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Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this Quarterly Report regarding our future financial performance, as well as our strategy, future operations, financial position, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of such terms or other similar expressions. These forward-looking statements are based on management’s current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. Although we believe such expectations and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. All readers are cautioned that the forward-looking statements contained in this Quarterly Report are not guarantees of future performance and we cannot assure any reader that such statements will be realized or that the forward-looking events and circumstances will occur.

As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

•our ability to fund our future cash obligations and continue as a going concern;

•our ability to access sources of capital to finance our operations and future capital requirements;

•our financial and business performance, including risk of uncertainty in our financial projections and business metrics and any underlying assumptions thereunder;

•the delisting of our common stock and public warrants from the New York Stock Exchange (the “NYSE”) and the commencement of trading of our common stock and public warrants in the over-the-counter (“OTC”) market;

•changes in our business and strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans;

•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;

•changes in domestic and foreign business, market, financial, political, legal conditions and applicable laws and regulations;

•our ability to grow market share in our existing markets or any new markets we may enter;

•our ability to achieve and maintain profitability in the future;

•our ability to maintain and enhance our products and brand, and to attract and retain customers;

•our ability to find new partners for product offerings;

•the success of our strategic relationships with third parties;

•our ability to scale in a cost-effective manner;

•developments and projections relating to our competitors and industry;

•supply chain disruptions;

•our ability to protect our intellectual property (“IP”);

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•the actions of our stockholders and the related impact on the price of our common stock;

•expectations regarding the time during which we will be an emerging growth company under the Jumpstart Our Business Startups Act of 2012, as amended;

•our ability to find and retain critical employee talent and key personnel;

•our ability to successfully manage changes in our executive team;

•the possibility that we may be adversely impacted by other economic, business, and/or competitive factors;

•future exchange and interest rates;

•the outcome of any known and unknown litigation and regulatory proceedings; and

•other risks and uncertainties, including those disclosed under “Item 1A. Risk Factors” contained in Part I of our Annual Report on Form 10-K for the year ended December 31, 2023 (our “Annual Report”) filed with the Securities and Exchange Commission (the “SEC”) on March 26, 2024, as supplemented by the risk factor disclosed in Part II, Item 1A. Risk Factors in our Quarterly Reports for each of the periods ended March 31, 2024 and June 30, 2024 and the risk factors and other cautionary statements contained in other filings that have been made or will be made with the SEC by the Company.

Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Should one or more of the risks or uncertainties described in this Quarterly Report, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Our SEC filings are available publicly on the SEC’s website at www.sec.gov.

You should read this Quarterly Report with the understanding that our actual future results, levels of activity and performance as well as other events and circumstances may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

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Part I - Financial Information

Item 1. Financial Statements

Heliogen, Inc.

Consolidated Balance Sheets

($ in thousands, except share data)

(Unaudited)


	September 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	44,631	$	62,715
Short-term restricted cash	500		500
Investments	—		12,386
Receivables, net	1,954		4,679
Inventories, net	—		1,956
Prepaid and other current assets	1,675		1,230
Total current assets	48,760		83,466
Operating lease right-of-use assets	6,166		13,909
Property, plant and equipment, net	627		5,577

Long-term restricted cash	1,000		1,000
Other long-term assets	1,439		3,081
Total assets	$	57,992	$	107,033
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Trade payables	$	1,073	$	746
Accrued expenses and other current liabilities	9,795		8,907
Contract liabilities	19,818		17,008
Contract loss provisions	74,271		75,340
Total current liabilities	104,957		102,001
Operating lease liabilities, non-current	4,531		12,878

Other long-term liabilities	96		169
Total liabilities	109,584		115,048
Commitments and contingencies (Note 15)
Stockholders’ equity (deficit)
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and no shares outstanding as of September 30, 2024 and December 31, 2023	—		—
Common stock, $0.0001 par value; 500,000,000 shares authorized; 6,049,012 and 5,946,315 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	1		1
Additional paid-in capital	433,432		430,678
Accumulated other comprehensive loss	(525)		(516)
Accumulated deficit	(484,500)		(438,178)
Total stockholders’ equity (deficit)	(51,592)		(8,015)
Total liabilities and stockholders’ equity (deficit)	$	57,992	$	107,033

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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Heliogen, Inc.

Consolidated Statements of Operations

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

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue:
Services revenue	$	434	$	1,096	$	2,174	$	2,874
Grant revenue	616		1,177		2,665		2,730
Total revenue	1,050		2,273		4,839		5,604
Cost of revenue:
Cost of services revenue (including depreciation)	494		1,220		3,851		3,221
Cost of grant revenue	616		1,177		2,665		2,690

Contract loss (adjustments) provisions	—		(538)		—		(148)
Total cost of revenue	1,110		1,859		6,516		5,763
Gross profit (loss)	(60)		414		(1,677)		(159)

Operating expenses:
Selling, general and administrative	7,854		14,882		29,714		36,227
Research and development	4,509		5,162		13,051		15,368


Impairment and other charges	202		115		4,362		1,595
Total operating expenses	12,565		20,159		47,127		53,190
Operating loss	(12,625)		(19,745)		(48,804)		(53,349)

Interest income, net	535		335		1,893		888

Gain on warrant remeasurement	53		74		74		326
Other income, net	223		767		520		1,341
Net loss before taxes	(11,814)		(18,569)		(46,317)		(50,794)
Provision for income taxes	(1)		(1)		(5)		(3)
Net loss	$	(11,815)	$	(18,570)	$	(46,322)	$	(50,797)





Loss per share:
Loss per share – Basic and Diluted	$	(1.94)	$	(3.13)	$	(7.66)	$	(8.81)
Weighted average number of shares outstanding – Basic and Diluted	6,086,382		5,935,823		6,051,029		5,765,356

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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Heliogen, Inc.

Consolidated Statements of Comprehensive Loss

($ in thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net loss	$	(11,815)	$	(18,570)	$	(46,322)	$	(50,797)
Other comprehensive income (loss), net of taxes:
Unrealized gains on available-for-sale securities	—		72		1		270
Cumulative translation adjustment	(6)		(124)		(10)		(185)
Total other comprehensive income (loss), net of taxes	(6)		(52)		(9)		85
Comprehensive loss	$	(11,821)	$	(18,622)	$	(46,331)	$	(50,712)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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Heliogen, Inc.

Consolidated Statements of Stockholders’ Equity (Deficit)

($ in thousands, except share data)

(Unaudited)



		Three Months Ended September 30, 2024
	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
		Shares			Amount
Balance as of June 30, 2024		5,989,932	$	1		$	432,724	$	(519)	$	(472,685)	$	(40,479)
Net loss		—	—			—		—		(11,815)		(11,815)
Other comprehensive loss		—	—			—		(6)		—		(6)
Share-based compensation		—	—			709		—		—		709

Vesting of restricted stock units		77,139	—			—		—		—		—
Tax withholding related to vesting of restricted stock units		(21,877)	—			(45)		—		—		(45)
Exercise of stock options		3,818	—			3		—		—		3



Vesting of warrants issued in connection with customer agreements		—	—			41		—		—		41
Balance as of September 30, 2024		6,049,012	$	1		$	433,432	$	(525)	$	(484,500)	$	(51,592)

Three Months Ended September 30, 2023

Common Stock

Additional Paid-in
Capital

Accumulated Other Comprehensive Loss

Accumulated
Deficit

SEC Form 10-Q filed by Heliogen Inc.