OneSpan Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>OneSpan Inc. has filed its 2023 10-K report detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

OneSpan Inc. (OSPN) filed a Annual Report (10-K) with the SEC on March 6, 2024. OneSpan Inc. filed its 2023 Form 10-K on March 6, 2024, reporting on the fiscal year ending December 31, 2023. The company's principal business address is 1 Marina Park Drive, Unit 1410, Boston, MA 02210. OneSpan Inc. was formerly known as VASCO Data Security International Inc. before a name change on July 6, 2018. The filing covers the fiscal year 2023, with data points for 2023, 2022, and 2021 available. The company's SIC code is 7373 for Computer Integrated Systems Design.

Why It Matters

For investors and stakeholders tracking OneSpan Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of OneSpan's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. Understanding the detailed financial statements, risk factors, and executive compensation outlined in this report is essential for making informed investment decisions regarding OneSpan Inc. (OSPN).

Risk Assessment

Risk Level: medium — OneSpan Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various market and operational risks inherent in the technology and cybersecurity sectors, as detailed in the full 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess the company's performance and identify potential investment opportunities or risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-06 — Filing Date (Date of submission)
• 7373 — SIC Code (Industry classification)

Key Players & Entities

• OneSpan Inc. (company) — Filer name
• VASCO DATA SECURITY INTERNATIONAL INC (company) — Former company name
• 1 Marina Park Drive, Unit 1410, Boston, MA 02210 (company) — Business address
• 3127664001 (dollar_amount) — Business phone

FAQ

Industry Context

OneSpan Inc. operates in the Computer Integrated Systems Design industry, providing solutions related to digital identity and transaction security.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Thoroughly review the financial statements and management's discussion and analysis (MD&A) for the fiscal year 2023.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing OneSpan Inc.
3. Examine any disclosed executive compensation details to assess management incentives and alignment with shareholder interests.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-06: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $14.84 — of the registrant was $ 588,629,980 at $14.84 per share. As of March 1, 2024, there
• $38.4 m — ses, net of software capitalization, of $38.4 million, $41.7 million, and $47.4 million
• $41.7 m — tware capitalization, of $38.4 million, $41.7 million, and $47.4 million, respectively,
• $47.4 m — n, of $38.4 million, $41.7 million, and $47.4 million, respectively, for research and d

Filing Documents

• ospn-20231231.htm (10-K) — 2151KB
• exhibit42descriptionofcapi.htm (EX-4.2) — 17KB
• exhibit1042023managementin.htm (EX-10.4) — 45KB
• exhibit108exectime-basedrs.htm (EX-10.8) — 70KB
• exhibit1018moynahanm-ar202.htm (EX-10.18) — 92KB
• ex1021onespanmoynahansepar.htm (EX-10.21) — 51KB
• exhibit1022severanceagreem.htm (EX-10.22) — 70KB
• exhibit21subsidiariesofreg.htm (EX-21) — 15KB
• ex23_consentofkmpgllc.htm (EX-23) — 4KB
• ex311.htm (EX-31.1) — 10KB
• ex312.htm (EX-31.2) — 10KB
• ex321.htm (EX-32.1) — 4KB
• ex322.htm (EX-32.2) — 4KB
• exhibit97dodd-frankcompens.htm (EX-97) — 21KB
• image.jpg (GRAPHIC) — 6KB
• image_0.jpg (GRAPHIC) — 11KB
• image_0a.jpg (GRAPHIC) — 6KB
• image_0b.jpg (GRAPHIC) — 6KB
• ospn-20231231_g1.jpg (GRAPHIC) — 399KB
• 0001628280-24-009466.txt (&nbsp;) — 13283KB
• ospn-20231231.xsd (EX-101.SCH) — 73KB
• ospn-20231231_cal.xml (EX-101.CAL) — 100KB
• ospn-20231231_def.xml (EX-101.DEF) — 413KB
• ospn-20231231_lab.xml (EX-101.LAB) — 895KB
• ospn-20231231_pre.xml (EX-101.PRE) — 731KB
• ospn-20231231_htm.xml (XML) — 1872KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 30 I tem 1C. Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6. [Reserved] 33 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 33 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 52 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 52 Item 9A.

Controls and Procedures

Controls and Procedures 52 Item 9B. Other Information 53 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 53 PART III Item 10. Directors, Executive Officers and Corporate Governance 53 Item 11.

Executive Compensation

Executive Compensation 53 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 53 Item 13. Certain Relationships and Related Transactions, and Director Independence 53 Item 14. Principal Accounting Fees and Services 54 PART IV Item 15. Exhibits, Financial Statement Schedules 54 CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE F- 1 References to OneSpan Throughout this Annual Report on Form 10-K, the "Company," "OneSpan," "we," "us," and "our," except where the context requires otherwise, refer to OneSpan Inc. and its consolidated subsidiaries, and "our board of directors" refers to the board of directors of OneSpan Inc. Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the outcomes we expect from our updated strategic transformation plan and cost reduction and restructuring actions approved in August 2023 and in prior periods, including the ability of those actions to allow us to accelerate Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) growth and drive value creation by growing revenue efficiently and profitably; estimates concerning the timing and amount of savings, Adjusted EBITDA improvements, and/or restructuring charges that may result from our cost reduction and restructuring actions; our plans for managing our Digital Agreements and Security Solutions segments; expectations about trends in our cost of goods sold, gross margin, and sales and marketing, research and development, and general and administrative expenses; the impact of foreign currency rate fluctuations; expectations regarding sources and uses of cash; and our general expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", "expect", "

– Business

Item 1 – Business Overview OneSpan provides security, identity, electronic signature ("e-signature") and digital workflow solutions that protect and facilitate digital transactions and agreements. Through our two business units, Security Solutions and Digital Agreements, we deliver products and services that automate and secure customer-facing and revenue-generating business processes for use cases ranging from simple transactions to workflows that are complex or require higher levels of security. Our solutions help our customers ensure the integrity of the people and records associated with digital agreements, transactions, and interactions in industries including banking, financial services, healthcare, and professional services. We are trusted by global blue-chip enterprises, including more than 60% of the world's largest 100 banks, and we process millions of digital agreements and billions of transactions in more than 100 countries annually. We offer our products primarily through a subscription licensing model and provide multiple deployment options, including cloud-based and on-premises solutions. Our solutions are sold worldwide through our direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. Business Transformation We are currently in the midst of a business transformation. In December 2021, our board of directors ("Board" or "Board of Directors") approved a restructuring plan (the "restructuring plan") designed to advance our operating model, streamline our business, improve efficiency, and enhance our capital resources. The first phase of this restructuring plan began and was substantially completed during the three months ended March 31, 2022. In May 2022, our Board approved additional actions related to the restructuring plan and we announced a three-year strategic transformation plan that began on January 1, 2023 (the "2022 strategic plan"). In conjunction with the 2022 stra

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View this 10-K filing on SEC EDGAR