Aspen Aerogels Reports Q3 2024, Secures New Credit Facility

TL;DR

Aspen Aerogels got a new credit line from Midcap Financial, good for operations.

AI Summary

Aspen Aerogels Inc. reported its Q3 2024 results, ending September 30, 2024. The company entered into a Credit Security and Guaranty Agreement with Midcap Financial on August 19, 2024, which includes an Asset Based Revolving Credit Facility. This filing also references financial data from periods including Q3 2023 and the year-to-date periods for 2023 and 2024.

Why It Matters

The new credit facility provides Aspen Aerogels with increased financial flexibility, which is crucial for funding its operations and potential growth initiatives.

Risk Assessment

Risk Level: medium — The company's reliance on specific customers and potential concentration risk, along with the details of its new credit facility, warrant a medium risk assessment.

Key Numbers

• Q3 2024 — Reporting Period (The company's financial performance for the third quarter of 2024 is detailed.)
• 2024-08-19 — Credit Facility Date (This is the date Aspen Aerogels entered into its new credit agreement.)

Key Players & Entities

• Aspen Aerogels Inc. (company) — Filer of the 10-Q
• Midcap Financial (company) — Lender in the new credit agreement
• August 19, 2024 (date) — Date of the Credit Security and Guaranty Agreement
• September 30, 2024 (date) — End of the reporting period (Q3 2024)
• Asset Based Revolving Credit Facility (financial_instrument) — Type of credit facility secured

FAQ

Key Financial Figures

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

Filing Documents

• aspn-20240930.htm (10-Q) — 2305KB
• aspn-ex31_1.htm (EX-31.1) — 13KB
• aspn-ex31_2.htm (EX-31.2) — 14KB
• aspn-ex32.htm (EX-32) — 12KB
• 0000950170-24-123427.txt ( ) — 9332KB
• aspn-20240930.xsd (EX-101.SCH) — 1394KB
• aspn-20240930_htm.xml (XML) — 1689KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (unaudited) as of September 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2024 and 2023 2 Consolidated Statements of Stockholders' Equity (unaudited) for the three and nine months ended September 30, 2024 and 2023 3 Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 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 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42

SIGNATURES

SIGNATURES 43 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) September 30, December 31, 2024 2023 (In thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 113,489 $ 139,723 Restricted cash 394 248 Accounts receivable, net of allowances of $ 898 and $ 230 115,199 69,995 Inventories 47,430 39,189 Prepaid expenses and other current assets 29,344 17,176 Total current assets 305,856 266,331 Property, plant and equipment, net 451,569 417,227 Operating lease right-of-use assets 20,373 17,212 Other long-term assets 4,789 2,278 Total assets $ 782,587 $ 703,048 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 42,280 $ 51,094 Accrued expenses 26,531 22,811 Deferred revenue 2,405 2,316 Finance obligation for sale and leaseback transactions 3,653 — Operating lease liabilities 3,181 1,874 Long term debt - current portion 26,250 — Total current liabilities 104,300 78,095 Revolving line of credit 42,735 — Long term debt 93,674 — Convertible note - related party — 114,992 Finance obligation for sale and leaseback transactions long-term 10,486 — Operating lease liabilities long-term 23,742 21,906 Total liabilities 274,937 214,993 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.00001 par value; 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.00001 par value; 250,000,000 shares authorized, 77,155,896 and 76,503,151 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively — — Additional paid-in capital 1,179,239 1,161,657 Accumulated deficit ( 671,589 ) ( 673,602 ) Total stockholders' equity 507,650 488,055 Total liabilities and stock

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 has introduced a line of aerogel thermal barriers for use in battery packs in the electric vehicle market. In addition, the Company designs, develops and manufactures innovative, high-performance aerogel insulation used in the energy industrial and sustainable insulation materials markets. 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 RI), Aspen Aerogels Germany, GmbH and Aspen Aerogels Georgia, LLC (Aspen Georgia). 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 nine months ended September 30, 2024, the Company earned net income of $ 2.0 million, provided $ 9.9 million of cash in operations and used $ 71.5 million of cash for capital expenditures. The Company had unrestricted cash and cash equivalents of $ 113.5 million as of September 30, 2024. In January 2024 and September 2024 , the Company entered i nto sale and leaseback arrangements, pursuant to which the Company sold certain equipment to an equipment leasing company for one-time cash payments of $ 5.0 and $ 1

View Full Filing

View this 10-Q filing on SEC EDGAR