ASPEN AEROGELS INC [ASPN] Filings

10-Q 1 aspn-20230630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-36481

ASPEN AEROGELS, INC.

(Exact name of registrant as specified in its charter)


Delaware		04-3559972
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

30 Forbes Road, Building B Northborough, Massachusetts		01532
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (508) 691-1111

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, par value $0.00001 per share	ASPN	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 3, 2023, the registrant had 70,207,439 shares of common stock outstanding.

ASPEN AEROGELS, INC.

INDEX TO FORM 10-Q


		Page
	PART I FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets (unaudited) as of June 30, 2023 and December 31, 2022	1

	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2023 and 2022	2

	Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended June 30, 2023 and 2022	3

	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2023 and 2022	4

	Notes to Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	34

	PART II OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38

Item 3.	Defaults Upon Senior Securities	38

Item 4.	Mine Safety Disclosures	38

Item 5.	Other Information	38

Item 6.	Exhibits	39

SIGNATURES		40

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.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

ASPEN AEROGELS, INC.

Consolidated Balance Sheets

(Unaudited)


	June 30,			December 31,
	2023			2022
	(In thousands, except share and per share data)
Assets
Current assets:
Cash and cash equivalents	$	134,298		$	281,335
Restricted cash		320			1,226
Accounts receivable, net of allowances of $179 and $255		44,167			57,350
Inventories		33,289			22,538
Prepaid expenses and other current assets		15,962			7,236
Total current assets		228,036			369,685
Property, plant and equipment, net		368,270			259,223
Operating lease right-of-use assets		18,380			11,990
Other long-term assets		2,388			2,518
Total assets	$	617,074		$	643,416
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	48,063		$	54,728
Accrued expenses		10,672			16,003
Deferred revenue		4,634			5,846
Operating lease liabilities		2,256			2,368
Total current liabilities		65,625			78,945
Convertible note - related party		109,189			103,580
Operating lease liabilities long-term		22,289			13,456
Total liabilities		197,103			195,981
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2023 and December 31, 2022		—			—
Common stock, $0.00001 par value; 125,000,000 shares authorized, 70,158,143 and 69,994,963 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		—			—
Additional paid-in capital		1,079,981			1,075,226
Accumulated deficit		(660,010	)		(627,791	)
Total stockholders’ equity		419,971			447,435
Total liabilities and stockholders’ equity	$	617,074		$	643,416

See accompanying notes to unaudited consolidated financial statements.

ASPEN AEROGELS, INC.

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
	(In thousands, except share and per share data)						(In thousands, except share and per share data)
Revenue	$	48,158		$	45,640		$	93,744		$	84,047
Cost of revenue		39,751			46,851			80,251			87,046
Gross profit (loss)		8,407			(1,211	)		13,493			(2,999	)
Operating expenses:
Research and development		3,964			4,447			8,063			8,039
Sales and marketing		8,127			7,633			15,840			13,651
General and administrative		13,360			9,355			25,542			16,581
Total operating expenses		25,451			21,435			49,445			38,271
Loss from operations		(17,044	)		(22,646	)		(35,952	)		(41,270	)
Other income (expense)
Interest expense, convertible note - related party		(211	)		(1,550	)		(486	)		(2,369	)
Interest income (expense), net		1,832			146			4,219			105
Total other income (expense), net		1,621			(1,404	)		3,733			(2,264	)
Net loss	$	(15,423	)	$	(24,050	)	$	(32,219	)	$	(43,534	)
Net loss per share:
Basic and diluted	$	(0.22	)	$	(0.68	)	$	(0.47	)	$	(1.27	)
Weighted-average common shares outstanding:
Basic and diluted		69,249,281			35,207,975			69,206,249			34,276,083

See accompanying notes to unaudited consolidated financial statements.

ASPEN AEROGELS, INC.

Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)


	Preferred Stock $0.00001 Par Value				Common Stock $0.00001 Par Value				Additional Paid-in Capital			Accumulated Deficit			Total Stockholders' Equity
	Shares		Value		Shares		Value
Balance at December 31, 2022		—	$	—		69,994,963	$	—	$	1,075,226		$	(627,791	)	$	447,435
Net loss		—		—		—		—		—			(16,796	)		(16,796	)
Stock compensation expense		—		—		—		—		2,267			—			2,267
Vesting of restricted stock units		—		—		71,643		—		(385	)		—			(385	)
Proceeds from employee stock option exercises		—		—		2,554		—		21			—			21
Balance at March 31, 2023		—	$	—		70,069,160	$	—	$	1,077,129		$	(644,587	)	$	432,542
Net loss		—		—		—		—		—			(15,423	)		(15,423	)
Stock compensation expense		—		—		—		—		2,710			—			2,710
Issuance of restricted stock		—		—		44,928		—		—			—			—
Vesting of restricted stock units		—		—		2,464		—		(8	)		—			(8	)
Proceeds from employee stock option exercises		—		—		41,591		—		150			—			150
Balance at June 30, 2023		—	$	—		70,158,143	$	—	$	1,079,981		$	(660,010	)	$	419,971


	Preferred Stock $0.00001 Par Value				Common Stock $0.00001 Par Value				Additional Paid-in Capital			Accumulated Deficit			Total Stockholders' Equity
	Shares		Value		Shares		Value
Balance at December 31, 2021		—	$	—		33,218,115	$	—	$	673,461		$	(545,053	)	$	128,408
Net loss		—		—		—		—		—			(19,484	)		(19,484	)
Stock compensation expense		—		—		—		—		1,828			—			1,828
Vesting of restricted stock units		—		—		166,211		—		(2,315	)		—			(2,315	)
Proceeds from employee stock option exercises		—		—		4,681		—		38			—			38
Proceeds from at-the-market offering, net of commissions of $729 and issuance costs of $318		—		—		737,288		—		23,272			—			23,272
Proceeds from private placement of common stock, net of fees and issuance costs of $136		—		—		1,791,986		—		49,864			—			49,864
Balance at March 31, 2022		—	$	—		35,918,281	$	—	$	746,148		$	(564,537	)	$	181,611
Net loss		—		—		—		—		—			(24,050	)		(24,050	)
Stock compensation expense		—		—		—		—		2,295			—			2,295
Issuance of restricted stock		—		—		391,324		—		—			—			—
Vesting of restricted stock units		—		—		2,569		—		(24	)		—			(24	)
Proceeds from employee stock option exercises		—		—		21,110		—		136			—			136
Proceeds from at-the-market offering, net of commissions of $149 and issuance costs of $28		—		—		145,000		—		4,786			—			4,786
Balance at June 30, 2022		—	$	—		36,478,284	$	—	$	753,341		$	(588,587	)	$	164,754

See accompanying notes to unaudited consolidated financial statements.

ASPEN AEROGELS, INC.

Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
	2023			2022
	(In thousands)
Cash flows from operating activities:
Net loss	$	(32,219	)	$	(43,534	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		6,207			4,161
Accretion of interest on convertible note - related party		—			2,369
Amortization of convertible note issuance costs		18			13
Amortization of debt discount due to modification of convertible note – related party		469			—
Provision for bad debt		(72	)		(1	)
Stock-compensation expense		4,977			4,123
Reduction in the carrying amount of operating lease right-of-use assets		1,405			1,219
Changes in operating assets and liabilities:
Accounts receivable		13,255			(9,054	)
Inventories		(10,751	)		(5,013	)
Prepaid expenses and other assets		(6,512	)		(2,500	)
Accounts payable		(1,407	)		15,980
Accrued expenses		(5,331	)		154
Deferred revenue		(1,212	)		295
Operating lease liabilities		(1,158	)		(1,076	)
Net cash used in operating activities		(32,331	)		(32,864	)
Cash flows from investing activities:
Capital expenditures		(115,390	)		(52,359	)
Net cash used in investing activities		(115,390	)		(52,359	)
Cash flows from financing activities:
Proceeds from issuance of convertible note related party		—			100,000
Issuance costs from convertible note		—			(185	)
Proceeds from employee stock option exercises		171			174
Payments made for employee restricted stock tax withholdings		(393	)		(2,339	)
Proceeds from at-the-market offering, net of commissions of $879		—			28,404
Fees and issuance costs from at-the-market offering		—			(346	)
Proceeds from private placement of common stock		—

ASPEN AEROGELS INC [ASPN] Filings
10-Q	[2023-08-03]
10-Q	[2023-05-04]
10-K	[2023-03-16]
10-Q	[2022-11-07]
10-Q	[2022-08-04]
10-Q	[2022-05-10]
10-K	[2022-03-01]
10-Q	[2021-11-04]
10-Q	[2021-08-04]
10-Q	[2021-05-04]
10-K	[2021-03-12]
10-Q	[2020-11-05]
10-Q	[2020-08-05]
10-Q	[2020-05-04]
10-K	[2020-03-06]
10-Q	[2019-11-01]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-03-08]
10-Q	[2018-11-07]
10-Q	[2018-08-03]
10-Q	[2018-05-04]
10-K	[2018-03-01]
10-Q	[2017-11-03]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-03-02]
10-Q	[2016-11-03]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-03-04]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-13]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
S-1	[2014-04-28]