Hyliion (HYLN) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for the year ended December 31, 2024, were $1,509 million, a 124.6$672 million in 2023[159]. - The net loss for 2024 was $52.0 million, a 57.9$123.5 million in 2023[159]. - Total revenues increased to $1.5 million in 2024 from$0.7 million in 2023, representing a growth of 114.3%[225]. - Net loss improved to $(52.0) million in 2024 compared to$(123.5) million in 2023, a reduction of 57.9%[225]. - The company reported a gross profit of $94 million in 2024, compared to a gross loss of$1.044 million in 2023, marking a turnaround[205]. - The Company reported a net loss attributable to common stockholders of $52.048 million for the year ended December 31, 2024, compared to a net loss of$123.510 million for 2023, indicating a significant improvement[294]. Expenses and Cost Management - Research and development expenses decreased by $45.2 million to$37.0 million in 2024, primarily due to the wind down of the powertrain business[161]. - Selling, general and administrative expenses decreased by $18.2 million to$24.4 million in 2024, reflecting the strategic plan to wind down the powertrain business[162]. - Operating expenses decreased to $64.393 million in 2024 from$136.325 million in 2023, reflecting a reduction of approximately 52.8%[205]. - Research and development expenses for 2024 were $37.004 million, down from$82.240 million in 2023, a decrease of about 55.1%[205]. - Personnel expenses decreased to $24.3 million in 2024 from$46.7 million in 2023, a reduction of 47.9%[225]. - Marketing, promotional, and advertising costs were reduced to $0.1 million in 2024 from$1.3 million in 2023, a decrease of 92.3%[249]. - The company recorded total charges related to its strategic plan of $3.0 million for 2024, down from$11.5 million in 2023[218]. Cash Flow and Liquidity - Cash flows used in operating activities for 2024 were $56.7 million, compared to$117.0 million in 2023, indicating improved cash management[165][166]. - The company reported cash and cash equivalents of $9.227 million as of December 31, 2024, down from$12.881 million in 2023, indicating a decrease of approximately 28.5%[203]. - Cash and cash equivalents decreased to $9.2 million in 2024 from$12.9 million in 2023, a decline of 28.5%[229]. - The company has a letter of credit for $7.9 million secured by restricted cash, which was released in Q1 2024[228]. - The Company reported cash flows from operating leases of$(1.687) million in 2024, an improvement from $(2.470) million in 2023[296]. Assets and Liabilities - Total assets decreased from$328.383 million in 2023 to $263.046 million in 2024, reflecting a decline of about 19.9$306.266 million in 2023 to $244.389 million in 2024, a reduction of approximately 20.2$346.2 million and state net operating loss carryforwards of $12.5 million, which begin to expire in 2036[186]. - The company reported accrued expenses and other current liabilities of$6.622 million at December 31, 2024, down from $10.051 million in 2023[286]. - The company had$4.6 million of unrecognized compensation expense related to the 2020 Plan at December 31, 2024, expected to be recognized over 1.8 years[275]. Strategic Initiatives - The company plans to deploy initial units of the KARNO generator with customers in 2025, focusing on development and testing[152]. - The company plans to wind down its powertrain business to better align its workforce and reduce operating costs, with estimates of cash expenditures and charges expected to incur[182]. - The company expects to complete wind-down activities of its powertrain business by the fourth quarter of fiscal year 2025[217]. - The company has shifted focus to the development and commercialization of the fuel-agnostic KARNO generator technology, discontinuing the electrified powertrain systems business[242]. Shareholder Information - The company authorized a share repurchase program of up to $20.0 million in December 2023, with no expiration date[266]. - The 2024 Equity Incentive Plan allows for the grant of awards covering up to 8 million shares of common stock, with 232,176 RSUs granted in 2024[267][270]. - The company granted 2.7 million market-conditioned RSUs in 2024, which will vest between August 2025 and December 2026, contingent upon achieving stock price thresholds[272]. - The weighted average shares outstanding decreased from 181.411 million in 2023 to 174.915 million in 2024, contributing to a reduced net loss per share of$0.30 in 2024 compared to $0.68 in 2023[294]. Legal and Compliance - The Company is involved in various legal proceedings but believes that the outcomes will not have a significant adverse effect on its financial position[293]. - The Company has not incurred any cash payments for interest or taxes during the years ended December 31, 2024, and 2023[296].