Hyliion (HYLN) - 2024 Q3 - Quarterly Report

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$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$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].