Aspen Aerogels Reports Q1 2024 Results

TL;DR

<b>Aspen Aerogels filed its Q1 2024 10-Q, detailing segment revenues, expenses, and customer concentration risks.</b>

AI Summary

ASPEN AEROGELS INC (ASPN) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Revenue for Q1 2024 was not explicitly stated, but the filing details revenue for specific segments and regions. The company reported net income for Q1 2024, with specific figures not detailed in this excerpt. Research and Development expenses were incurred in Q1 2024, with comparative data for Q1 2023. Selling and Marketing expenses were incurred in Q1 2024, with comparative data for Q1 2023. Aspen Aerogels has customer concentration risk, with specific mentions of Customer A and Customer B for sales revenue and accounts receivable.

Why It Matters

For investors and stakeholders tracking ASPEN AEROGELS INC, this filing contains several important signals. The filing provides granular data on segment performance and geographic revenue, crucial for understanding the company's operational drivers. Disclosure of customer concentration risk highlights potential dependencies and revenue stability concerns.

Risk Assessment

Risk Level: medium — ASPEN AEROGELS INC shows moderate risk based on this filing. The company faces customer concentration risk, with specific customers accounting for significant sales revenue and accounts receivable, indicating a potential vulnerability if these relationships change.

Analyst Insight

Investors should closely monitor revenue trends by segment and region, as well as any updates regarding key customer relationships.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-02 — Filing Date (Filed as of Date)
• Q1 2024 — Reporting Quarter (Filing)
• Q1 2023 — Comparative Quarter (Filing)

Key Players & Entities

• ASPEN AEROGELS INC (company) — Filer
• ASPN (company) — Ticker Symbol
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-02 (date) — Filed as of Date
• Customer A (company) — Customer Concentration Risk
• Customer B (company) — Customer Concentration Risk
• General Motors Holdings Llc (company) — Loan Agreement
• Koch Strategic Platforms Llc (company) — Convertible Notes

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces significant revenue and accounts receivable concentration with specific customers, potentially impacting financial results if these relationships are adversely affected.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the Q1 2024 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q filing was submitted to the SEC.

Key Financial Figures

• $0.00001 — ch registered Common Stock, par value $0.00001 per share ASPN The New York Stock E

Filing Documents

• aspn-20240331.htm (10-Q) — 1463KB
• aspn-ex31_1.htm (EX-31.1) — 12KB
• aspn-ex31_2.htm (EX-31.2) — 13KB
• aspn-ex32.htm (EX-32) — 12KB
• 0000950170-24-052139.txt (&nbsp;) — 7063KB
• aspn-20240331.xsd (EX-101.SCH) — 1211KB
• aspn-20240331_htm.xml (XML) — 1153KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (unaudited) as of March 31, 2024 and December 31, 2023 1 Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2024 and 2023 2 Consolidated Statements of Stockholders' Equity (unaudited) for the three months ended March 31, 2024 and 2023 3 Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2024 and 2023 4

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 34

SIGNATURES

SIGNATURES 35 Trademarks, Trade Names and Service Marks We own or have rights to use "Aspen Aerogels," "Cryogel," "Pyrogel," "Spaceloft," "PyroThin," the Aspen Aerogels logo and other trademarks, service marks and trade names of Aspen Aerogels, Inc. appearing in this Quarterly Report on Form 10-Q. Solely for convenience, the trademarks, service marks and trade names referred to in this report are presented without the and TM symbols, but such references are not intended to indicate, in any way, that the owner thereof will not assert, to the fullest extent under applicable law, such owner's rights to these trademarks, service marks and trade names. This report contains additional trademarks, service marks and trade names of other companies, which, to our knowledge, are the property of their respective owners.

— FINANC IAL INFORMATION

PART I — FINANC IAL INFORMATION

Financi al Statements

Item 1. Financi al Statements. ASPEN AEROGELS, INC. Consolidated B alance Sheets (Unaudited) March 31, December 31, 2024 2023 (In thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 101,461 $ 139,723 Restricted cash 157 248 Accounts receivable, net of allowances of $ 217 and $ 230 84,029 69,995 Inventories 45,750 39,189 Prepaid expenses and other current assets 23,708 17,176 Total current assets 255,105 266,331 Property, plant and equipment, net 422,736 417,227 Operating lease right-of-use assets 16,824 17,212 Other long-term assets 3,324 2,278 Total assets $ 697,989 $ 703,048 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 44,713 $ 51,094 Accrued expenses 12,762 22,811 Deferred revenue 3,130 2,316 Finance obligation for sale and leaseback transactions 1,206 — Operating lease liabilities 1,769 1,874 Total current liabilities 63,580 78,095 Convertible note - related party 118,030 114,992 Finance obligation for sale and leaseback transactions long-term 3,556 — Operating lease liabilities long-term 21,620 21,906 Total liabilities 206,786 214,993 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.00001 par value; 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.00001 par value; 250,000,000 shares authorized, 76,077,929 and 76,503,151 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively — — Additional paid-in capital 1,166,640 1,161,657 Accumulated deficit ( 675,437 ) ( 673,602 ) Total stockholders' equity 491,203 488,055 Total liabilities and stockholders' equity $ 697,989 $ 703,048 See accompanying notes to unaudited consolidated financial statements. 1 ASPE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Description of Business and Basis of Presentation Nature of Business Aspen Aerogels, Inc. (the Company) is an aerogel technology company that designs, develops and manufactures innovative, high-performance aerogel insulation used primarily in the energy industrial and sustainable insulation materials markets. In addition, the Company has introduced a line of aerogel thermal barriers for use in battery packs in the electric vehicle market. The Company is also developing applications for its aerogel technology in the battery materials and a number of other high-potential markets. The Company maintains its corporate offices in Northborough, Massachusetts. The Company has three wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC, Aspen Aerogels Germany, GmbH and Aspen Aerogels Georgia, LLC. Additionally, we engaged Prodensa Servicios de Consultora to establish OPE Manufacturer Mexico S de RL de CV, a maquiladora located in Mexico, ("OPE") which manufactures thermal barrier PyroThin products and operates an automated fabrication facility for PyroThin. OPE is currently owned by Prodensa, which charges a management fee. There is an option for OPE to be purchased by the Company after a period of 18 months. During the period between inception and the exercise of the purchase option, OPE operations are consolidated within the Company financial statements. Liquidity During the three months ended March 31, 2024, the Company incurred a net loss of $ 1.8 million, used $ 17.7 million of cash in operations and used $ 25.9 million of cash for capital expenditures. The Company had unrestricted cash and cash equivalents of $ 101.5 million as of March 31, 2024. In November 2022, the Company entered into a loan agreement (the GM Loan Agreement) with General Motors Holdings LLC (GM), an entity affiliated with General Motors LLC, which provides for a multi-draw senior secured term loan (the GM Loan) in an a

View Full Filing

View this 10-Q filing on SEC EDGAR