The three use categories will be configured as follows, forming the backbone of three business lines:

HelioHeat - The production of heat or steam for use in industrial processes will be enabled by the baseline system.

HelioPower - With the baseline system as the foundation, the addition of a turbine generator system will then enable power generation.

HelioFuel - Building on the Power system described above, hydrogen fuel production will be enabled by further adding an electrolyzer system to the baseline system.

For each of the three above solutions, we are offering multiple support models to customers looking to deploy Heliogen's technology:

•Contracting with owner-operators to build turnkey facilities that deploy Heliogen's technology (Heliogen will contract with engineering, procurement and construction ("EPC") partners for constructing the facility);

•Selling heliostats (and associated software control systems) to owner-operators and/or EPC contractors;

•Providing asset maintenance support services during operation, for completed facilities that use Heliogen's technology; and

•Providing project development support services to help customers advance readiness to break ground in advance of final investment decisions.

In the future, we will also be prepared to offer Heliogen's IP through a licensing model to third parties interested in manufacturing and installing the hardware.

Key Factors and Trends Affecting our Business

Government Targets and Corporate Initiatives

Key Components of Our Results of Operations

Cost of Sales - cost of sales consists primarily of direct labor and direct external vendor costs related to our revenue contracts. No allocation of depreciation and amortization has been recognized due to the nature of work being performed and the impact would be immaterial.

Selling, General and Administrative Expense - selling, general, and administrative ("SG&A") expense consists primarily of salaries and other personnel-related costs, professional fees, insurance costs, and other business development and selling expenses.

Research and Development Expense - research and development ("R&D") expense consists primarily of salaries and other personnel-related costs; the cost of products, materials, and outside services used in our R&D activities.

•Net cash proceeds received by Heliogen of $159.4 million as a result of the Business Combination (reflecting proceeds from Athena's trust account, less redemptions, and a PIPE investment of $165.0 million, offset by transaction costs paid at closing);

•The conversion of Legacy Heliogen's legacy preferred stock, SAFE Instruments, and warrants to shares of common stock as part of the Merger; and

•The assumption of Athena's public and private warrants, which are accounted for at fair value.

Comparison of the Years Ended December 31, 2021 and 2020

We recognized a gross loss for the year ended December 31, 2020 due to cost overruns relating to a revenue contract for engineering and design service.

Selling, General, and Administrative Expense

A summary of the Company's cash flows from operating, investing and financing activities is presented in the following table:

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Expected Term - The expected term of the options represents the average period the stock options are expected to remain outstanding.

Expected Volatility - Prior to the Business Combination, we had no trading history for our common stock. Thus, expected volatility is based on the historical volatilities of the common stock of comparable publicly traded companies.

Risk-Free Interest Rate - The risk-free interest rate is based on the yield of zero-coupon U.S. Treasury notes as of the grant date with maturities commensurate with the expected term of the awards.

Expected Dividends - The expected dividends assumption is based on the expectation of not paying dividends in the foreseeable future; therefore, we used an expected dividend yield of zero.

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