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HYZON ANNOUNCES THIRD QUARTER 2024 FINANCIAL AND OPERATING RESULTS

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Hyzon announced key achievements in Q3 2024, including securing North America's first hydrogen-powered fuel cell electric refuse truck order from GreenWaste. The company achieved start-of-production for its 200kW fuel cell system and Class 8 fuel cell electric truck. Ten successful customer trials were completed, with majority in commercial negotiations. The company received ISO 9001 certification and demonstrated significant fuel efficiency improvements - refuse trucks showing 230-300% improvement over diesel. Cash and equivalents stood at $30.4 million, with monthly cash burn expected to reduce to $6.5 million by year-end.

Hyzon ha annunciato risultati chiave nel terzo trimestre del 2024, inclusi l'ottenimento del primo ordine di camion per rifiuti elettrici a celle a combustibile alimentati a idrogeno del Nord America da parte di GreenWaste. L'azienda ha avviato la produzione del suo sistema di celle a combustibile da 200 kW e del camion elettrico a celle a combustibile di classe 8. Sono stati completati dieci trial con i clienti, con la maggior parte in fase di trattative commerciali. L'azienda ha ottenuto la certificazione ISO 9001 e ha dimostrato significativi miglioramenti nell'efficienza del carburante, con i camion per rifiuti che mostrano un miglioramento del 230-300% rispetto al diesel. La liquidità e i suoi equivalenti ammontavano a 30,4 milioni di dollari, con un'aspettativa di riduzione del consumo mensile di cassa a 6,5 milioni di dollari entro la fine dell'anno.

Hyzon anunció logros clave en el tercer trimestre de 2024, incluyendo la obtención del primer pedido de camión de basura eléctrico de celda de combustible alimentado por hidrógeno en América del Norte a GreenWaste. La empresa logró iniciar la producción de su sistema de celda de combustible de 200 kW y del camión eléctrico de celda de combustible de Clase 8. Se completaron diez pruebas exitosas con clientes, la mayoría en negociaciones comerciales. La empresa recibió la certificación ISO 9001 y demostró importantes mejoras en la eficiencia del combustible, mostrando los camiones de basura un incremento del 230-300% en comparación con el diésel. El efectivo y equivalentes alcanzaban los 30,4 millones de dólares, y se espera que el consumo mensual de efectivo se reduzca a 6,5 millones de dólares para fin de año.

Hyzon은 2024년 3분기에 주요 성과를 발표했으며, 여기에는 GreenWaste로부터 북미 최초의 수소 연료전지 전기 쓰레기 트럭 주문을 확보한 것이 포함됩니다. 이 회사는 200kW 연료전지 시스템과 8등급 연료전지 전기 트럭의 생산을 시작했습니다. 고객 시험이 10건 성공적으로 완료되었으며, 대부분은 상업적 협상 중에 있습니다. 이 회사는 ISO 9001 인증을 받았으며, 연료 효율성이 크게 개선된 것을 입증했습니다. 쓰레기 트럭은 디젤에 비해 230-300%의 개선을 보였습니다. 현금 및 현금성 자산은 3,040만 달러에 달했으며, 연말까지 월간 현금 소모는 650만 달러로 줄어들 것으로 예상됩니다.

Hyzon a annoncé des résultats clés pour le troisième trimestre 2024, y compris la sécurisation de la première commande de camion de ordures électrique à hydrogène pour l'Amérique du Nord de GreenWaste. L'entreprise a atteint le démarrage de la production de son système de pile à hydrogène de 200 kW et de son camion électrique à hydrogène de classe 8. Dix essais clients réussis ont été réalisés, la majorité étant en négociations commerciales. L'entreprise a obtenu la certification ISO 9001 et a démontré des améliorations significatives de l'efficacité énergétique, avec des camions à ordures montrant des améliorations de 230 à 300 % par rapport au diesel. Les liquidités et équivalents s'élevaient à 30,4 millions de dollars, avec une réduction attendue de la consommation mensuelle de trésorerie à 6,5 millions de dollars d'ici la fin de l'année.

Hyzon gab im dritten Quartal 2024 wichtige Erfolge bekannt, einschließlich des Erhalts der ersten Bestellung für ein wasserstoffbetriebenes Brennstoffzellen-Elektromüllfahrzeug in Nordamerika von GreenWaste. Das Unternehmen hat die Produktion seines 200 kW Brennstoffzellensystems und des Elektrofahrzeugs der Klasse 8 gestartet. Zehn erfolgreiche Kundentest wurden abgeschlossen, wobei die Mehrheit in kommerziellen Verhandlungen ist. Das Unternehmen erhielt die ISO 9001-Zertifizierung und zeigte erhebliche Verbesserungen der Kraftstoffeffizienz - Müllfahrzeuge zeigen eine Verbesserung von 230-300% im Vergleich zu Diesel. Liquidität und Äquivalente betrugen 30,4 Millionen US-Dollar, wobei erwartet wird, dass der monatliche Cash-Burn bis zum Jahresende auf 6,5 Millionen US-Dollar sinken wird.

Positive
  • Secured first purchase agreement for 12 hydrogen-powered refuse trucks from GreenWaste
  • Achieved production milestone for 200kW fuel cell system with 700 units annual capacity
  • Completed 10 successful customer trials with majority in commercial negotiations
  • Demonstrated 230-300% fuel efficiency improvement in refuse trucks vs diesel
  • Reduced monthly cash burn from $15M to projected $6.5M by year-end
Negative
  • Continuing cash burn of $6.5M monthly indicates ongoing operational losses
  • Required additional capital raising through equity offering and ATM program
  • Purchase agreement with GreenWaste contingent on meeting certain terms and specifications

Insights

The Q3 results highlight significant operational progress but continued financial challenges. While securing the first-ever refuse FCET order and achieving production milestones are positive developments, the $30.4M cash position and $6.5M monthly burn rate remain concerning. The company's recent capital raises of $3.8M through direct offering and $5M via ATM program suggest ongoing funding needs.

The commercial traction is promising with 10 successful trials and active negotiations, but the GreenWaste order being contingent on meeting specifications indicates execution risks. The improved fuel efficiency metrics (up to 300% for refuse trucks) could drive compelling TCO advantages, particularly as hydrogen fuel costs become more competitive with diesel.

The manufacturing capability of 700 fuel cell systems annually provides decent scaling potential, but near-term revenue generation and path to profitability remain key concerns given the cash position.

The technical achievements mark important validation of Hyzon's fuel cell technology. The 200kW single-stack system entering production represents a significant milestone, as higher power density systems are important for heavy-duty applications. The ISO 9001 certification adds credibility to manufacturing processes.

Performance data from trials is particularly noteworthy - 230-300% fuel efficiency improvements for refuse trucks and 25-50% for Class 8 trucks versus diesel demonstrate compelling advantages. The 30-ton payload capacity matching diesel performance addresses a key adoption barrier.

The 300,000 miles of global on-road experience and near 100% availability during trials indicate maturing technology readiness. However, the Q4 2025 delivery timeline for the GreenWaste order suggests continued development work ahead.

Secured first hydrogen-powered fuel cell electric refuse truck order in North America from waste industry pioneer GreenWaste

Achieved start-of-production on the 200kW fuel cell system and 200kW Class 8 fuel cell electric truck

Ten successful Class 8 200kW and refuse fuel cell electric truck customer trials completed with majority in commercial agreement negotiations

BOLINGBROOK, Ill., Nov. 13, 2024 /PRNewswire/ -- Hyzon (NASDAQ: HYZN) (Hyzon or the Company), a U.S.-based, high-performance, hydrogen fuel cell system manufacturer and technology developer focused on providing zero-emission power to decarbonize the most demanding industries, today announced its third quarter 2024 financial and operating results:

Recent Highlights

  • Secured first-ever, refuse Fuel Cell Electric Truck (FCET) order in North America from waste industry pioneer, GreenWaste, after a successful trial.
  • Completed ten successful Class 8 200kW and refuse FCET trials since July 2024 with over twenty additional trials scheduled through February 2025, majority of completed trials in active commercial agreement negotiations.
  • Achieved Start of Production (SOP) of its revolutionary, U.S.-produced, single-stack, 200kW Fuel Cell System (FCS), enabling the manufacture of standardized FCSs at volume for commercial sale.
  • Achieved SOP of its innovative Class 8 200kW FCET, enabling production of its Class 8 200kW FCET through its collaboration with Fontaine Modification.
  • Secured ISO 9001 certification for fuel cell manufacturing, design, and research and development, certifying that Hyzon's development and production processes meet the highest international standards for quality.

"The third quarter marked the next inflection point in Hyzon's evolution, completing significant milestones that we previously committed to on the commercial, technical, and financial front. These achievements mark a pivotal moment in Hyzon's journey and the broader transition to zero-emission transportation, which is now in active commercialization," said Parker Meeks, CEO of Hyzon. "From securing North America's first-ever order for refuse fuel cell electric trucks to achieving start of production for our revolutionary 200kW fuel cell system and our innovative Class 8 fuel cell electric trucks, the third quarter was a success. Additionally, our ISO 9001 certification confirms our commitment to the highest quality standards and a step towards becoming a trusted and leading FCS OEM. On the back of our completed and continuing refuse and class 8 trials, which have exceeded our and our customers' expectations, we are well-positioned to capitalize on our active discussions with potential customers for orders. Additionally, the hydrogen fuel market is improving significantly, with fuel pricing that can enable cost-competitive operation of Hyzon's fuel cell trucks compared to diesel today. The market opportunity before us is substantial, and Hyzon is uniquely positioned to deliver high-performance, zero-emission solutions that meet the demanding needs of our customers across multiple sectors."

Third Quarter 2024 Business Highlights 

Commercial: Secured First Purchase Agreement; Large Fleet Customer Trial Programs Underway 

Hyzon secured a purchase agreement for North America's first 12 hydrogen-powered, refuse FCETs with recycling innovator, GreenWaste, contingent upon Hyzon meeting certain commercial terms and specifications as defined in the agreement. This pivotal order, announced on October 7, 2024, represents the first-ever refuse FCET order in North America, showcasing Hyzon's expanding reach into new market segments. The agreement follows a successful two-week trial of Hyzon's refuse FCET, which demonstrated the vehicle's capability to meet the demanding requirements of waste collection operations. Built in partnership with industry leader, New Way Trucks, these zero-emission vehicles are set to be delivered as soon as Q4 2025.

The Company continues to focus on large fleet customers in the North American Class 8 and refuse markets with the highest immediate commercial potential. The 200kW Class 8 FCET trial program and refuse FCET trial program began in July of this year, with 10 trials completed to date. All 10 trials have been confirmed as successful by Hyzon's trial customers, meaning that the trials met or exceeded the expectations set forth by the customer. Hyzon has now entered commercial negotiations with the majority of these parties for potential customer orders as the trial typically represents the final step in the development process with fleets prior to commercial agreement negotiations. The trial program has continued to expand to a total of over 30 fleets through February 2025, including those already completed as of November, up from the original 25 that were scheduled in July. The trial schedule represents an average of over 4,200 trucks per fleet and includes ten fleets with over 5,000 trucks.

From a performance perspective, the FCETs are operating at near 100% availability with range, hill climb, and fuel efficiency performance that has surpassed both customer expectations and their experience with other zero emission trucks. This strong availability and performance is the result of over three years of technology and powertrain development, testing, and optimization, which now includes over 300,000 miles of on-road experience for the Hyzon fuel cell powertrain globally since 2021.

Importantly, the Company continues to collect real-world data from the various challenging customer operations where these trucks are put to the test. From a fuel efficiency perspective, the refuse FCET has demonstrated 230% to 300% improvement relative to diesel while the Class 8 200kW trucks are observing 25% to 50% greater fuel efficiency. This is an important advantage as fleets look to total cost of ownership and operating cost comparisons to diesel. Additionally, the refuse FCETs are hauling as much as 30 tons of trash per day matching diesel performance, without refueling, and significantly outperforming battery electric vehicle alternatives, that can often only complete 50% to 60% of a typical diesel truck's full day's work.

Technology: Start of Production has been achieved and ISO 9001 Certification received

In a series of significant milestones, Hyzon demonstrated substantial progress in its mission to decarbonize heavy-duty industries through advanced hydrogen fuel cell technology.

On October 8, 2024, National Hydrogen Fuel Cell Day, Hyzon announced the SOP for its revolutionary, single-stack, 200kW FCS at its Bolingbrook, Illinois facility. This achievement marks a pivotal moment for zero-emission technology manufacturing in the United States, as Bolingbrook becomes home to one of the country's largest fully-integrated fuel cell production facilities.

The 200kW FCS production milestone follows closely on the heels of Hyzon's previously announced SOP for its innovative Class 8 200kW FCET in September, 2024. This milestone, made possible through collaboration with Fontaine Modification, signifies Hyzon's transition from prototype to series production of high-performance, zero-emission alternatives to diesel in the heavy-duty transport sector.

Further solidifying its commitment to quality and industry-leading standards, on October 9, 2004, Hyzon secured an ISO 9001:2015 certification for its fuel cell manufacturing, design, and research and development activities. This certification, issued by Bureau Veritas, validates that Hyzon's development and production processes meet the highest international standards for quality, underscoring the Company's dedication to delivering safe, high-quality, and reliable zero-emission solutions.

These achievements collectively highlight Hyzon's technological leadership and manufacturing capabilities in the hydrogen fuel cell industry. With the ability to now produce 700 fuel cell systems per year over a three-shift operation, Hyzon is well-positioned to meet growing demand for zero-emission power solutions in heavy-duty applications. The Company's fully integrated manufacturing strategy, from proprietary membrane electrode assembly production to complete fuel cell systems, enables rapid product development and customer responsiveness, setting a new standard for the industry.

Third Quarter 2024 Financial Updates

"I am pleased with the significant commercial and operational progress we have made this year while simultaneously reducing our spend. We began 2023 with an average monthly net cash burn in excess of $15 million, and through intentional, strategic actions we now have line of sight to a $6.5 million monthly cash burn by year-end. This was enabled through operational efficiencies, footprint rationalization, and cost take-outs. We also expanded our access to capital markets through the Company's first equity raise since our listing and putting in place an ATM program. Our team has done a tremendous job," said Hyzon Chief Financial Officer Stephen Weiland.

As of September 30, 2024, cash and cash equivalents stood at $30.4 million. In July, the Company executed a registered direct offering raising approximately $3.8 million in net proceeds. This significantly improved trading liquidity, laying the groundwork for potential equity fundraising in the future, such as the implementation of an at-the-market program at the end of September. The Company has subsequently used the program to raise approximately $5 million in proceeds to further support the existing cash position and opportunity for successful trials to convert into orders.

Conference Call Information
The Hyzon management team will host a conference call to discuss its third quarter financial results on Wednesday, November 13, 2024 at 8:30 a.m. Eastern Time.

Participants can join the call at 1-888-800-7840 or international callers can use 1-646-307-1856 and enter the access code 5240234. To listen to the live audio webcast and Q&A, visit the Hyzon investor relations website at https://investors.hyzonfuelcell.com.

About Hyzon

Hyzon is a global supplier of high-performance hydrogen fuel cell technology focused on providing zero-emission power to decarbonize demanding industries. With agile, high-power technology designed for heavy-duty applications, Hyzon is at the center of a new industrial revolution fueled by hydrogen, an abundant and clean energy source. Hyzon is focusing on deploying its fuel cell technology in heavy-duty commercial vehicles in Class 8 and refuse collection vehicles across North America. To learn more about how Hyzon partners across the hydrogen value chain to accelerate the clean energy transition, visit www.hyzonfuelcell.com.

Forward-Looking Statements 

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements regarding the Company's expectations, hopes, beliefs, intentions, or strategies for the future. You are cautioned that such statements are not guarantees of future performance and that the Company's actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause the Company's actual expectations to differ materially from these forward-looking statements include the Company's ability improve its capital structure; Hyzon's liquidity needs to operate its business and execute its strategy, and related use of cash; its ability to raise capital through equity issuances, asset sales or the incurrence of debt; the possibility that Hyzon may need to seek bankruptcy protection; Hyzon's ability to fully execute actions and steps that would be probable of mitigating the existence of substantial doubt regarding its ability to continue as a going concern; our ability to enter into any desired strategic alternative on a timely basis, on acceptable terms; our ability to maintain the listing of our Common Stock on the Nasdaq Capital Market; retail and credit market conditions; higher cost of capital and borrowing costs; impairments; changes in general economic conditions; and the other factors under the heading "Risk Factors" set forth in the Company's Annual Report on Form 10-K, as supplemented by the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. Such filings are available on our website or at www.sec.gov. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.

 

HYZON MOTORS INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

(unaudited)



September 30,
2024


December 31,
2023

ASSETS




Current assets




Cash and cash equivalents

$             30,428


$           112,280

Accounts receivable

86


498

Unbilled receivable

38


1,599

Inventory

6,036


28,811

Prepaid expenses and other current assets

5,833


9,335

Total current assets

42,421


152,523

Property, plant, and equipment, net

3,523


18,569

Right-of-use assets

1,566


4,741

Equity method investments


8,382

Investments in equity securities


763

Other assets

4,179


6,157

Total Assets

$             51,689


$           191,135

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable

$               2,043


$               1,479

Accrued liabilities

20,028


30,116

Related party payables

791


265

Contract liabilities

469


8,872

Current portion of lease liabilities

830


1,821

Total current liabilities

24,161


42,553

Long term liabilities




Lease liabilities

871


5,733

Private placement warrant liability

160


160

Earnout liability

5


1,725

July 2024 warrant liability

4,833


Accrued SEC settlement

8,270


8,000

Other liabilities

1,210


2,964

Total Liabilities

$             39,510


$             61,135

Commitments and contingencies




Stockholders' Equity




Common stock, $0.0001 par value; 20,000,000 shares authorized, 5,510,056 and 4,901,630 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.

1


Treasury stock, at cost; 75,392 shares as of September 30, 2024 and December 31, 2023, respectively.

(6,446)


(6,446)

Additional paid-in capital

389,019


380,286

Accumulated deficit

(368,974)


(242,640)

Accumulated other comprehensive loss

(651)


(514)

Total Hyzon Motors Inc. stockholders' equity

12,949


130,686

Noncontrolling interest

(770)


(686)

Total Stockholders' Equity

12,179


130,000

Total Liabilities and Stockholders' Equity

$             51,689


$           191,135

 

HYZON MOTORS INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(unaudited)



Three Months Ended

September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

Revenue

$                  134


$                    —


$            10,430


$                   —

Operating expense:








Cost of revenue

301


3,286


26,532


6,534

Research and development

8,074


10,857


28,720


32,794

Selling, general, and administrative

29,677


21,044


76,721


100,999

Restructuring and related charges

1,604


4,885


4,768


4,885

Gain on lease termination

(2,096)



(2,096)


Total operating expenses

37,560


40,072


134,645


145,212

Loss from operations

(37,426)


(40,072)


(124,215)


(145,212)

Other income (expense):








Change in fair value of private placement warrant liability


(240)



561

Change in fair value of earnout liability

1,316


(1,307)


1,720


6,029

Loss on issuance of July 2024 warrants

(567)



(567)


Change in fair value of July 2024 warrant liability

232



232


Impairment of investments

(9,145)



(9,145)


Gain on deconsolidation of subsidiary

2,559



2,559


Gain on disposal of auctioned assets

1,721



1,721


Foreign currency exchange gain (loss) and other expense, net

(534)


(3,877)


(1,217)


(2,447)

Investment income and interest income, net

524


1,441


2,500


6,501

Total other income (expense)

(3,894)


(3,983)


(2,197)


10,644

Loss before income taxes

$           (41,320)


$           (44,055)


$        (126,412)


$        (134,568)

Income tax expense




Net loss

$           (41,320)


$           (44,055)


$        (126,412)


(134,568)

Less: Net loss attributable to noncontrolling interest

(1)


(1)


(78)


(18)

Net loss attributable to Hyzon

$           (41,319)


$           (44,054)


$        (126,334)


$        (134,550)









Comprehensive loss:








Net loss

$           (41,320)


$           (44,055)


$        (126,412)


$        (134,568)

Foreign currency translation adjustment

(315)


2,721


(143)


986

Net change in unrealized gain (loss) on short-term investments


286



(702)

Comprehensive loss

$           (41,635)


$           (41,048)


$        (126,555)


$        (134,284)

Less: Comprehensive income (loss) attributable to noncontrolling interest

(23)


5


(84)


10

Comprehensive loss attributable to Hyzon

$           (41,612)


$           (41,053)


$        (126,471)


$        (134,294)

Net loss per share attributable to Hyzon:








Basic

$               (7.74)


$               (8.99)


$            (24.42)


$            (27.49)

Diluted

$               (7.74)


$               (8.99)


$            (24.42)


$            (27.49)

Weighted average common shares outstanding:








Basic

5,337


4,898


5,173


4,894

Diluted

5,337


4,898


5,173


4,894

 

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SOURCE Hyzon

FAQ

What was Hyzon's (HYZN) major order announcement in Q3 2024?

Hyzon secured North America's first order for 12 hydrogen-powered refuse fuel cell electric trucks from GreenWaste, with deliveries expected in Q4 2025.

What is Hyzon's (HYZN) current production capacity for fuel cell systems?

Hyzon can produce 700 fuel cell systems annually over a three-shift operation at its Bolingbrook, Illinois facility.

What was Hyzon's (HYZN) cash position as of September 30, 2024?

Hyzon reported cash and cash equivalents of $30.4 million as of September 30, 2024.

What fuel efficiency improvements did Hyzon (HYZN) demonstrate in Q3 2024?

Hyzon's refuse trucks showed 230-300% fuel efficiency improvement compared to diesel, while Class 8 trucks demonstrated 25-50% greater efficiency.

Hyzon Motors Inc.

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