Contract and Deployment - Hyliion was awarded a contract of up to $16 million by the U.S. Department of the Navy to assess the KARNO generator for navy vessels and stationary power applications[59]. - Initial deployments of the KARNO generator are anticipated in late 2024 and 2025, focusing on testing efficiency, emissions, and maintenance requirements[62]. - The company plans to deploy initial revenue-generating units of the KARNO generator with customers in late 2024, focusing on development and testing[75]. - Initial customer deployments of the KARNO generator are anticipated in late 2024, with ongoing net losses expected in the short term[90]. Technology and Design - The KARNO generator is designed to operate on a wide range of fuel sources, including carbon-free fuels such as hydrogen and ammonia, with an initial variant of 200 kW[62]. - The generator is expected to reduce CO and NOx emissions by over 95% compared to diesel generators, potentially without the need for exhaust after-treatment[64]. - The KARNO generator aims to address challenges in the U.S. electrical grid, including the electrification of transportation and the integration of renewable energy sources[62]. - The generator's design allows for a compact footprint of approximately three cubic meters, making it suitable for various applications[62]. - The KARNO generator technology is protected by numerous patents, providing extensive intellectual property protection for Hyliion[65]. - The KARNO generator can operate on over 20 different fuel sources, including natural gas, hydrogen, and bio-diesel, showcasing its fuel-agnostic capabilities[72]. - The KARNO generator is designed to have a fast startup time, capable of generating electricity from a cold start in approximately 30 to 60 seconds[73]. - The KARNO generator's modular design allows for power output modulation by adjusting the heat applied, enabling scalability for larger applications[73]. - The KARNO generator is expected to achieve an electrical generating efficiency of nearly 50%, significantly higher than conventional diesel generators which operate at 25% to 40% efficiency[70]. - CO and NOx emissions from the KARNO generator are anticipated to be reduced by over 95% compared to best-in-class diesel engines, targeting CARB 2027 standards without the need for aftertreatment[72]. Financial Performance - Total revenues for 2024 are projected to be $0, a decrease of 100% compared to $96,000 in 2023, reflecting the discontinuation of the electrified powertrain systems business[82]. - Total revenues for September 30, 2024, were $672 million, a decrease of 100% compared to $672 million for September 30, 2023[19]. - The net loss for the three months ended September 30, 2024, was $11.2 million, a 63.1% improvement compared to a net loss of $30.3 million in the same period in 2023[82]. - Net loss for the nine months ended September 30, 2024, was $37.7 million, a 60.1% improvement from a net loss of $94.4 million in the same period of 2023[19]. - Cash flows used in operating activities for the nine months ended September 30, 2024, were $43.3 million, compared to $92.4 million for the same period in 2023[93]. - Cash flows provided by investing activities were $64.9 million for the nine months ended September 30, 2024, significantly up from $1.6 million in 2023[94]. - The company expects to have between $220 million and $230 million in cash, short-term, and long-term investments remaining at the end of 2024[90]. Expenses and Cost Management - Research and development expenses decreased by $15.7 million, primarily due to a $22.5 million reduction in costs associated with the Hypertruck ERX system, offset by a $6.8 million increase for the KARNO generator[83]. - Total operating expenses decreased by 54.5% to $47.2 million from $103.7 million year-over-year[19]. - Research and development expenses decreased by 65.0% to $25.7 million, primarily due to a $63.6 million decrease in costs related to the Hypertruck ERX system[86]. - Selling, general, and administrative expenses decreased by $2.5 million, primarily due to the wind down of the powertrain business[83]. - Selling, general, and administrative expenses decreased by 38.9% to $18.5 million, mainly due to the wind down of the powertrain business[86]. Future Developments - Future developments include variants for mobile applications, such as on-highway vehicles, rail, and marine vessels[64]. - Hyliion plans to expand production capacity and establish sales channels following initial deployments, with potential collaborations to extend market reach[64]. - The company announced an authorized share repurchase program to repurchase up to $20 million of its outstanding common stock[90].

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Hyliion Holdings Corp. (HYLN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Hyliion Holdings Corp. is a member of our Auto-Tires-Trucks group, which includes 107 different companies and currently ...

Shares of Hyliion Holdings Corp. (HYLN) have been struggling lately and have lost 6.9% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish ...

Hyliion Holdings Corp. (HYLN) , a company focused on sustainable electricity-producing technologies, has signed a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited ("JEC"). This MOU marks the beginning of a potential collaboration between the two companies to explore the use of Hyliion's advanced KARNO technology in power generation projects and jointly pursue select business opportunities in Hong Kong, Macau and other regions where JEC operates. The KARNO generator, ...

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Hyliion Holdings Corp. (HYLN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Hyliion Holdings Corp. is one of 107 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sit ...

Financial Data and Key Metrics Changes - The total net loss for Q1 2024 was $15.6 million, a decrease from $28.8 million in Q1 2023, primarily due to the shutdown of the powertrain business [43] - Operating expenses for Q1 2024 were $19 million, down from $31.9 million in Q1 2023, with the decrease attributed to the powertrain shutdown [13] - Interest income for Q1 2024 was $3.4 million, approximately flat compared to the previous year [14] - Cash and investments at the end of Q1 2024 totaled $264 million, indicating cash expenditures of $35 million during the quarter [15] Business Line Data and Key Metrics Changes - Excluding powertrain-related expenses, expenses for KARNO research and development and SG&A were $14.6 million [35] - The company expects total cash expenditures for the KARNO generator business in 2024 to be on the high end of the $40 million to $50 million estimate, reflecting a rapid ramp-up in investments [37] Market Data and Key Metrics Changes - The company has executed a non-binding LOI with H2 Energy for the adoption of up to 10 KARNO generators, which can produce approximately 2 megawatts in aggregate [25] - The company has identified four target markets for the KARNO generator, including EV charging, waste gas utilization, prime power applications, and mobility applications [26][27][28] Company Strategy and Development Direction - The company is focused on the commercialization of the KARNO generator, with plans to begin shipping units to customers later in 2024 [10][45] - A partnership with BayoTech has been established to ensure a reliable hydrogen supply chain for customers, enhancing the value proposition of the KARNO generator [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made in customer engagement and product development, emphasizing the importance of getting units into customers' hands in the coming quarters [41][47] - The company maintains its guidance for 2025, expecting to ramp up KARNO generator deliveries and revenue, with total sales projected in the low-double-digit millions of dollars [38] Other Important Information - The company repurchased 8.7 million shares for $11.3 million as part of a $20 million share repurchase program [36] - The company anticipates that powertrain-related operating expenses will be negligible moving forward, with cash payments expected to be in the low-single-digit millions [44] Q&A Session Summary Question: What is the outlook for the KARNO generator deployment? - Management indicated that they expect to begin deploying KARNO generator units to customers in late 2024, although the timing of payments remains uncertain due to various factors [45]

KARNO Generator Technology - Hyliion's KARNO generator is a fuel-agnostic power generation solution with a 200 kW generating unit designed for efficiency, emissions reduction, and cost-effectiveness compared to conventional generators [58]. - The KARNO generator is expected to reduce CO and NOx emissions by over 95% compared to diesel generators, addressing growing concerns about generator emissions [70]. - The generator technology is anticipated to compete effectively in the market for power applications ranging from 200 kW to 5 MW, with plans for larger and smaller configurations in the future [62]. - The KARNO generator's design allows for operation on various fuel sources, including hydrogen and ammonia, making it suitable for diverse applications [61]. - The generator's modularity and capability to utilize waste gas sources position it as an efficient power generator for renewable natural gas and flare gas applications [64]. - The KARNO generator can operate on over 20 different fuel sources, including natural gas, propane, and hydrogen, allowing for seamless transitions between fuels with minimal modifications [80]. - The KARNO generator is expected to achieve an electrical generating efficiency of nearly 50%, significantly higher than conventional internal combustion diesel generators, which operate at 25% to 40% efficiency [76]. - CO and NOx emissions from the KARNO generator are anticipated to be reduced by over 95% compared to best-in-class diesel engines, targeting CARB 2027 standards without the need for aftertreatment [77]. - The anticipated low maintenance requirements of the KARNO generator are expected to reduce periodic maintenance expenses, which typically range from 5% to 20% of total operating costs for conventional generators [78]. - The KARNO generator is designed to start generating electricity from a cold start in approximately 30 to 60 seconds, with full power achievable in a matter of minutes [82]. Deployment and Market Strategy - Initial deployments of the KARNO generator are scheduled for late 2024, with ongoing testing to validate efficiency, emissions, and reliability [69]. - Hyliion aims to expand production capacity and establish sales channels following initial deployments, potentially including collaborations to extend market reach outside the U.S. [66]. - The company plans to deploy initial revenue-generating units of the KARNO generator with customers in 2024, focusing on commercialization efforts [82]. - The company plans to develop variants of the KARNO generator for mobile applications, including vehicles and marine vessels, in the long term [70]. - The U.S. electrical grid faces challenges from increased demand and renewable energy integration, creating opportunities for localized grid generation solutions like the KARNO generator [60]. - The company anticipates initial customer deployments of the KARNO generator in late 2024, while continuing to incur net losses in the short term [2]. Financial Performance - Total revenues for the three months ended March 31, 2024, were $0, a decrease of $310,000 compared to the same period in 2023, reflecting the strategic shift to the KARNO generator [90]. - The company reported a net loss of $15.6 million for the three months ended March 31, 2024, a 45.9% improvement compared to a net loss of $28.8 million in the same period in 2023 [90]. - Current assets as of March 31, 2024, were $154.1 million, including cash and cash equivalents of $14.7 million and short-term investments of $126.7 million [94]. - For the three months ended March 31, 2024, cash flows used in operating activities were $22.7 million, primarily related to a net loss of $15.6 million [101]. - Cash flows provided by investing activities for the three months ended March 31, 2024, were $27.9 million, related to the sale or maturity of investments of $53.9 million [103]. - Cash flows used in financing activities for the three months ended March 31, 2024, were $11.3 million, primarily due to treasury stock repurchases [105]. - The company repurchased $11.3 million in common stock during the three months ended March 31, 2024, and $11.4 million since the inception of the repurchase program [1]. - Cash used in operating activities for the three months ended March 31, 2023, was $33.2 million, primarily related to a net loss of $28.8 million [102]. - The company expects to have between $220 million and $230 million in cash, short-term and long-term investments remaining on its balance sheet at the end of 2024 [1]. Research and Development - Research and development expenses decreased by $13.0 million, primarily due to the wind down of the powertrain business, with a focus on the KARNO stationary generator [92]. - The company is leveraging advancements in additive manufacturing to reduce manufacturing and assembly costs over time, with expected improvements in machine output [70]. Shareholder Actions - The company announced an authorized share repurchase program to repurchase up to $20 million of its outstanding common stock in December 2023 [1]. - The company granted 2.7 million market-conditioned restricted stock units in the first quarter of 2024, valued at $0.83 per unit [108]. - The company plans to determine its long-term capital needs based on its go-to-market strategy, which may include developing its own manufacturing capacity or outsourcing [2].

Financial Performance - First-quarter 2024 operating expenses totaled $19.0 million, down from $31.9 million in the prior-year quarter, with a net loss of $15.6 million compared to $28.8 million in Q1 2023[11] - Net loss for Q1 2024 was $15,592,000, a decrease from a net loss of $28,831,000 in Q1 2023, representing a 45% improvement[22] - Net cash used in operating activities decreased to $22,702,000 in Q1 2024 from $33,239,000 in Q1 2023, a reduction of approximately 32%[22] - Share-based compensation decreased to $1,320,000 in Q1 2024 from $2,040,000 in Q1 2023, a decline of 35%[22] Cash Position - The company ended the quarter with $264 million in cash and investments, with total cash expenditures for the quarter amounting to $35.3 million[13] - Cash and cash equivalents and restricted cash at the end of Q1 2024 totaled $15,380,000, down from $85,871,000 at the end of Q1 2023, indicating a decrease of 82%[22] - Net cash provided by investing activities was $27,908,000 in Q1 2024, compared to a net cash used of $847,000 in Q1 2023[22] - Proceeds from the sale and maturity of investments reached $53,861,000 in Q1 2024, an increase from $33,533,000 in Q1 2023[22] Business Operations - Hyliion has secured customer commitments for 2024 production capacity and is actively building a backlog for 2025 generator deliveries[5] - The company plans to deliver initial KARNO generator units to customers in late 2024, targeting markets such as EV Charging and Waste Gas[4] - Total cash consumed by KARNO development and capital investments in 2024 is expected to be between $40 million and $50 million, significantly down from $131 million in 2023[14] - The company is increasing production capacity by introducing additive printers at its Austin facility to meet rising demand for the KARNO generator[3] - Hyliion is winding down its powertrain business segment to maintain a strong cash position while focusing on KARNO generator technology[10] - The development of the KARNO generator remains on track, with testing of the Alpha version completed and BETA version components being printed[9] Liabilities and Adjustments - Accounts payable increased by $2,573,000 in Q1 2024, compared to an increase of $215,000 in Q1 2023[22] - The company experienced a decrease in prepaid expenses and other assets amounting to $7,382,000 in Q1 2024, compared to a decrease of $5,313,000 in Q1 2023[22] - The company recorded a carrying value adjustment to assets held for sale of $5,564,000 in Q1 2024[22] - The company repurchased treasury stock amounting to $11,043,000 during Q1 2024[22] - Hyliion repurchased 8.7 million shares for $11.3 million as part of a $20 million stock repurchase program[5] Future Projections - Projections for 2025 include low double-digit millions in sales from KARNO generator deliveries, with gross margins expected to be approximately break-even or slightly negative[15]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ¨ 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 001-38823 HYLIION HOLDINGS CORP. (Exact name of registrant as specified in its charter) | Delaware ...

Financial Data and Key Metrics Changes - The company reported $96,000 in revenue from hybrid systems for Q3 2023, a decrease from the previous year [36] - Operating expenses totaled $33.3 million, down from $62.9 million in the prior year quarter, which included a one-time charge of $28.8 million related to the KARNO acquisition [36] - Total cash consumed in Q3 was about $31 million, compared to $45 million in Q3 2022 [37] - The company expects total cash expenditures to drop from approximately $137 million in 2023 to about $40 million in 2024 [41] Business Line Data and Key Metrics Changes - The company has decided to wind down the powertrain business while preserving the technology for potential later use or sale [18] - The focus will shift to the KARNO generator business, which is expected to address the growing demand for electricity with a distributed generator solution [7][18] - The KARNO generator is anticipated to be more efficient than conventional generating systems and outperform fuel cell efficiency when operating on hydrogen [9] Market Data and Key Metrics Changes - The market for electrified commercial vehicles has become challenging, with slower than expected fleet adoption and higher component costs [20][21] - The company noted that commercial fleets are facing difficulties securing sufficient electric power for their recharging infrastructure [26] - The KARNO generator is positioned to compete in the prime power applications market, providing a solution for customers needing electricity now [29][99] Company Strategy and Development Direction - The company aims to focus its capital resources on the KARNO generator business, which is seen as a more capital-efficient path to market [18][78] - The company plans to maintain operations in Austin, Texas, and Cincinnati, Ohio, with Austin as the headquarters focusing on industrialization and software development for the KARNO generator [33] - The company is exploring strategic options for the powertrain business, including potential sales or mergers, but ultimately decided on winding it down [17][70] Management's Comments on Operating Environment and Future Outlook - Management expressed that the decision to wind down the powertrain business was not based on product performance but rather on market conditions and the need for a more capital-efficient approach [77] - The company expects to begin receiving payments from customers for early KARNO generator deployments in late 2024 [61] - Management highlighted the importance of addressing customer pain points related to electricity needs and the limitations of grid power [30][74] Other Important Information - The company has a strong balance sheet with $324 million of available capital at the close of Q3 2023 [34] - Total operating expenses for the year are projected to be approximately $140 million, slightly higher than previous guidance due to additional powertrain wind-down costs [40] - The company plans to host a technology fireside chat to further highlight the capabilities of the KARNO generator and business opportunities [42] Q&A Session Summary Question: Did the company engage with potential buyers for the powertrain business? - Management confirmed that they had discussions with potential strategic partners and acquirers but found that many were reassessing their own spending on electrification due to market conditions [46][70] Question: How will the company ensure the KARNO generator's market adoption? - Management indicated that they expect to have initial adoption partners by the end of the year and plan to start customer deployments in the second half of next year [48][74] Question: What is the sales outlook for the KARNO generator in 2025? - Management stated that they will provide more information on sales projections in the first half of next year, with initial revenue expected to be a couple of million from deployments next year [87][88]