Arq, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Arq, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Arq, Inc. (ARQ) filed a Annual Report (10-K) with the SEC on March 12, 2024. Arq, Inc. filed its 2023 Form 10-K on March 12, 2024. The company was formerly known as Advanced Emissions Solutions, Inc. Its business address is 8051 E. Maplewood Ave., Ste 210, Greenwood Village, CO 80111. The company operates in the Miscellaneous Chemical Products sector (SIC 2890). The filing covers the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking Arq, Inc., this filing contains several important signals. This filing provides a comprehensive overview of Arq, Inc.'s financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a public company, Arq, Inc. is required to disclose detailed financial information and business activities, offering transparency into its operations within the miscellaneous chemical products industry.

Risk Assessment

Risk Level: medium — Arq, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various risks inherent in the chemical products industry, including market fluctuations and operational challenges, as detailed in the 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K filing to understand Arq, Inc.'s performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-12 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Fiscal Year Start (Reporting period)
• 2022-12-31 — Prior Year End (Comparison period)

Key Players & Entities

• Arq, Inc. (company) — Filer name
• Advanced Emissions Solutions, Inc. (company) — Former company name
• Greenwood Village, CO (location) — Business and mailing address city and state
• 2890 (industry_code) — Standard Industrial Classification code
• 2023-12-31 (date) — Fiscal year end date
• 2024-03-12 (date) — Filing date
• Tinuum Group LLC (company) — Related entity
• Tinuum Services LLC (company) — Related entity

FAQ

Industry Context

Arq, Inc. operates within the Miscellaneous Chemical Products industry, which involves the manufacturing and distribution of chemical products.

Regulatory Implications

As a publicly traded company, Arq, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the 1934 Act.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Review the risk factors section to understand potential challenges and uncertainties.
3. Examine any disclosures regarding executive compensation and related party transactions.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share ARQ Nasdaq Global Market Se
• $62 — pment purchases will be in the range of $62 to $67 million. 3 As of January 2024
• $67 million — urchases will be in the range of $62 to $67 million. 3 As of January 2024, major constru
• $10 — Corbin Facility will be in the range of $10 to $15 million. In March 2023, we sold
• $15 million — Facility will be in the range of $10 to $15 million. In March 2023, we sold 100% of the me
• $3.3 million — urred research and development costs of $3.3 million and $2.1 million, respectively. Legisl
• $2.1 m — d development costs of $3.3 million and $2.1 million, respectively. Legislation and E

Filing Documents

• arq-20231231.htm (10-K) — 1718KB
• exhibit410descriptionofreg.htm (EX-4.10) — 27KB
• exhibit103formof2022omnibu.htm (EX-10.3) — 33KB
• exhibit104formofperformanc.htm (EX-10.4) — 48KB
• exhibit1030inducementaward.htm (EX-10.30) — 37KB
• exhibit211-subsidiariesofa.htm (EX-21.1) — 16KB
• exhibit231-consent_2023.htm (EX-23.1) — 2KB
• exhibit311-certificationpe.htm (EX-31.1) — 8KB
• exhibit312-certificationpf.htm (EX-31.2) — 10KB
• exhibit321-906certificatio.htm (EX-32.1) — 7KB
• exhibit95-minesafety2023.htm (EX-95) — 16KB
• exhibit97clawbackpolicy.htm (EX-97) — 21KB
• 0001515156-24-000036.txt (&nbsp;) — 10510KB
• arq-20231231.xsd (EX-101.SCH) — 71KB
• arq-20231231_cal.xml (EX-101.CAL) — 139KB
• arq-20231231_def.xml (EX-101.DEF) — 391KB
• arq-20231231_lab.xml (EX-101.LAB) — 938KB
• arq-20231231_pre.xml (EX-101.PRE) — 689KB
• arq-20231231_htm.xml (XML) — 1424KB

Business

Business 1 ITEM 1A.

Risk Factors

Risk Factors 10 ITEM 1B. Unresolved Staff Comments 21

C

ITEM 1 C . Cybersecurity 21 ITEM 2.

Properties

Properties 23 ITEM 3.

Legal Proceedings

Legal Proceedings 23 ITEM 4. Mine Safety Disclosures 23 PART II. ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 ITEM 6. Reserved 25 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 ITEM 8.

Financial Statements and Supplementary Financial Information

Financial Statements and Supplementary Financial Information 39 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 76 ITEM 9A.

Controls and Procedures

Controls and Procedures 76 ITEM 9B. Other Information 77 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 77 PART III. ITEM 10. Directors, Executive Officers and Corporate Governance 78 ITEM 11.

Executive Compensation

Executive Compensation 78 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 ITEM 13. Certain Relationships and Related Transaction and Director Independence 78 ITEM 14. Principal Accountant Fees and Services 78 PART IV. ITEM 15. Exhibits and Financial Statement Schedules 79 ITEM 16. Form 10-K Summary 83

SIGNATURES

SIGNATURES i PART I

Business

Item 1. Business General Arq, Inc. ("Arq", the "Company," "we," "us", "our," or similar pronouns) is an environmental technology company principally engaged in the sale of consumable air, water, and soil treatment solutions including activated carbon ("AC") and chemical technologies. Our proprietary AC products enable customers to reduce air, water, and soil contaminants, including mercury, per - and polyfluoroalkyl substances ("PFAS") and other pollutants, to meet the challenges of existing and pending air quality and water regulations. We manufacture and sell AC and other chemicals used to capture and remove contaminants for the coal-fired power generation, industrial, municipal water and air, water and soil treatment and remediation markets (collectively, the advanced purification technologies or "APT" market). Our predecessor, ADA-ES, Inc. ("ADA"), a Colorado corporation, was incorporated in 1997. Pursuant to an Agreement and Plan of Merger, effective July 1, 2013, the Company (formerly known as Advanced Emissions Solutions, Inc. ("ADES")), a Delaware company incorporated in 2011, succeeded ADA as the publicly-held corporation and ADA became a wholly-owned subsidiary of the Company. In 2018, we acquired ADA Carbon Solutions, LLC ("Carbon Solutions") to enter into the broader AC market and to expand our product offerings in the mercury control industry and other applicable AC markets. In February 2023, we acquired 100% of the equity of the subsidiaries of Arq Limited (the "Arq Acquisition," and hereafter the Arq Limited subsidiaries referred to as "Legacy Arq") to secure access to a feedstock, a manufacturing facility and certain patented processes to manufacture new advanced granular activated carbon ("GAC") products for sale into markets to the APT and other markets. In February 2024, as part of a larger rebranding, the Company changed its name to Arq, Inc., and on February 1, 2024, our common stock commenced trading under the ticker symbol, "ARQ". This Ann

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View this 10-K filing on SEC EDGAR