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.
Letter of Intent with a Sustainable Fuels Company
In April 2022, the Company's wholly-owned subsidiary, Heliogen SR2, LLC, executed a right-of-way lease agreement with the BLM for 3,343 acres within the Brenda SEZ. As of June 30, 2022, the right-of-way lease had not commenced.
Installation of Fourth Generation Heliostats
Key Factors and Trends Affecting our Business
Global Events including the COVID-19 Pandemic
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.
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.
Comparison of the Three and Six Months Ended June 30, 2022 and 2021
Revenue and Gross Profit (Loss)
During the three and six months ended June 30, 2021, we recognized revenue of $0.8 million and $1.4 million, respectively, and no gross profit or loss associated with an engineering and design services contract.
Selling, General, and Administrative Expense
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