Aspen Aerogels Files 2023 Annual Report on Form 10-K

TL;DR

<b>Aspen Aerogels filed its 2023 10-K, detailing operational segments, financial agreements, and equity plans.</b>

AI Summary

ASPEN AEROGELS INC (ASPN) filed a Annual Report (10-K) with the SEC on March 7, 2024. Aspen Aerogels Inc. filed its 2023 Form 10-K on March 7, 2024, reporting on the fiscal year ending December 31, 2023. The filing details operations across segments including Energy Industrial and Thermal Barrier. Key financial events and agreements mentioned include a revolving credit facility with Silicon Valley Bank and a supply agreement. The company's equity plans, including the 2014 and 2023 Equity Plans, are referenced, along with restricted stock and RSUs. Customer concentration risk is noted, specifically mentioning Customer B.

Why It Matters

For investors and stakeholders tracking ASPEN AEROGELS INC, this filing contains several important signals. This 10-K provides a comprehensive overview of Aspen Aerogels' financial performance, operational structure, and strategic initiatives for the fiscal year 2023, crucial for investors assessing the company's current standing and future prospects. The disclosure of customer concentration risk and specific financial instruments like credit facilities and equity plans offers insights into the company's market position, financial health, and executive compensation strategies.

Risk Assessment

Risk Level: medium — ASPEN AEROGELS INC shows moderate risk based on this filing. The company faces customer concentration risk, with specific mention of 'Customer B', indicating potential revenue vulnerability if this customer's business is significantly impacted.

Analyst Insight

Investors should analyze the company's revenue diversification strategies and the terms of its supply agreements to mitigate potential risks associated with key customer relationships.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-07 — Filing Date (Date of submission)
• 2022-02-15 — Convertible Notes Date (Related to Koch Strategic Platforms LLC)
• 2022-11-29 — Underwritten Public Offering Date (Event date)

Key Players & Entities

• ASPEN AEROGELS INC (company) — Filer name
• ASPN (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-03-07 (date) — Filing date
• Silicon Valley Bank (company) — Lender for revolving credit facility
• Customer B (company) — Mentioned in customer concentration risk
• Koch Strategic Platforms LLC (company) — Mentioned in relation to convertible notes
• Robert M Gervis (person) — Mentioned in relation to at the market offerings

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company's reliance on a limited number of customers for a significant portion of its sales revenue presents a risk, as evidenced by the mention of 'Customer B'.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-07: 10-K Filing Date — Date Aspen Aerogels submitted its annual report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the detailed financial and operational overview for Aspen Aerogels for the fiscal year 2023.)

Restricted Stock Units (RSUs)

A form of equity compensation awarded to employees, which vests over a period of time or upon meeting certain performance conditions. (The filing mentions RSUs in the context of equity plans, indicating a component of executive and employee compensation.)

Key Financial Figures

• $0.00001 — ch registered Common Stock, par value $0.00001 per share ASPN New York Stock Excha
• $17.2 million — sulation product revenue has grown from $17.2 million in 2008 to $128.6 million in 2023, repr
• $128.6 million — has grown from $17.2 million in 2008 to $128.6 million in 2023, representing a compound annual
• $1.4 billion — . During this period, we have sold over $1.4 billion of our insulation products globally, re
• $110.1 million — e battery systems. During 2023, we sold $110.1 million of our PyroThin thermal barriers. Durin
• $55.6 million — thermal barriers. During 2022, we sold $55.6 million of our PyroThin thermal barriers. Durin
• $6.7 million — e EV and energy storage market, we sold $6.7 million of our PyroThin thermal barriers. The
• $650 million — arget revenue capacity of approximately $650 million in 2024 and prior to the completion and
• $238.7 m — ed December 31, 2023, 2022 and 2021 was $238.7 million, $180.4 million, and $121.6 milli
• $180.4 m — 2023, 2022 and 2021 was $238.7 million, $180.4 million, and $121.6 million, respectively
• $121.6 m — was $238.7 million, $180.4 million, and $121.6 million, respectively. For the years ende
• $151.0 m — pment destination, our U.S. revenue was $151.0 million, $114.0 million, and $66.8 millio
• $114.0 m — n, our U.S. revenue was $151.0 million, $114.0 million, and $66.8 million, respectively,
• $66.8 m — was $151.0 million, $114.0 million, and $66.8 million, respectively, and our internatio
• $87.7 m — vely, and our international revenue was $87.7 million, $66.4 million, and $54.8 million

Filing Documents

• aspn-20231231.htm (10-K) — 3897KB
• aspn-ex3_2.htm (EX-3.2) — 173KB
• aspn-ex14_1.htm (EX-14.1) — 486KB
• aspn-ex21_1.htm (EX-21.1) — 3KB
• aspn-ex23_1.htm (EX-23.1) — 3KB
• aspn-ex31_1.htm (EX-31.1) — 11KB
• aspn-ex31_2.htm (EX-31.2) — 12KB
• aspn-ex32.htm (EX-32) — 10KB
• aspn-ex97.htm (EX-97) — 107KB
• img225769787_0.jpg (GRAPHIC) — 219KB
• 0000950170-24-028127.txt (&nbsp;) — 14232KB
• aspn-20231231.xsd (EX-101.SCH) — 1653KB
• aspn-20231231_htm.xml (XML) — 2203KB

BUSINESS

BUSINESS 3 ITEM 1A.

RISK FACTORS

RISK FACTORS 18 ITEM 1B. UNRESOLVED STAFF COMMENTS 58 ITEM 1C. CYBERSECURITY 58 ITEM 2.

PROPERTIES

PROPERTIES 60 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 60 ITEM 4. MINE SAFETY DISCLOSURES 62 PART II 63 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 63 ITEM 6. [RESERVED] 63 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 64 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 86 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 87 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 115 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 115 ITEM 9B. OTHER INFORMATION 116 ITEM 9C DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 116 PART III 117 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 117 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 117 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 117 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 117 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 117 PART IV 118 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 118 ITEM 16. FORM 10-K SUMMARY 122

SIGNATURES

SIGNATURES 123 2 PART I

B USINESS

Item 1. B USINESS When used in this report, the terms "we," "us," "our" and "the Company" refer to Aspen Aerogels, Inc. and its subsidiaries. Aspen Aerogels, Inc. is an aerogel technology company that designs, develops and manufactures innovative, high-performance aerogel materials used primarily in the energy industrial, sustainable insulation materials and electric vehicle (EV) markets. We have provided high-performance aerogel insulation to the energy industrial and sustainable insulation markets for nearly two decades. We have developed and commercialized our proprietary line of PyroThin aerogel thermal barriers for use in battery packs in EVs. In addition, we are developing applications for our aerogel technology in the battery materials market and a number of other high-potential markets. Our core businesses are organized into two reportable segments: Energy Industrial and Thermal Barrier. The following describes our key product offerings and new product innovations by reportable segment. Energy Industrial We design, develop and manufacture innovative, high-performance aerogel insulation used primarily in the energy industrial and sustainable insulation markets. We believe our aerogel blankets deliver the best thermal performance of any widely used insulation product available on the market today and provide a combination of performance attributes unmatched by traditional insulation materials. Our end-user customers select our products where thermal performance is critical and to save money, improve resource efficiency, enhance sustainability, preserve operating assets, and protect workers. Our technologically advanced insulation products are principally targeted at the multi-billion dollar global market for energy industrial insulation materials. Our aerogel insulation has undergone rigorous technical validation and is used by many of the world's largest oil producers and the owners and operators of refineries, petrochemical plants, liquefied natura

View Full Filing

View this 10-K filing on SEC EDGAR