Industry Overview - The insurance industry has encountered significant challenges in recent years, resulting in a hardening of the capital cycle that may shift towards sustainable profitability in 2024 [1] Company Focus - Aspen Insurance Holdings Limited (NYSE: AHL) has managed to navigate through these industry headwinds effectively [1]

Company Overview - Aspen Aerogels, Inc. is a technology leader in sustainability and electrification solutions, focusing on resource efficiency, e-mobility, and clean energy [3] - The company's aerogel technology supports customers in addressing global megatrends, particularly in the electric vehicle (EV) market [3] - Aspen's PyroThin® products are designed to tackle thermal runaway challenges in EVs, while its carbon aerogel initiative aims to enhance lithium-ion battery performance, reducing charging time and costs for EV manufacturers [3] Upcoming Events - Aspen Aerogels is scheduled to participate in the 25th Annual B. Riley Securities Investor Conference on May 21-22, 2025, at the Ritz-Carlton in Marina Del Rey, CA [1] - The company's President & CEO, Donald R. Young, and CFO & Treasurer, Ricardo C. Rodriguez, will host one-on-one and small group meetings with investors during the conference [2] Strategic Partnerships - Aspen aims to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets [3] - The company's Cryogel® and Pyrogel® products are recognized and valued by major energy infrastructure companies globally [3]

Core Insights - Aspen Aerogels reported total revenues of $78.7 million for Q1 2025, a decrease of 17% compared to $94.5 million in Q1 2024 [2][6] - The company experienced a net loss of $301.2 million, which included a significant impairment charge of $286.6 million related to the demobilization of a planned manufacturing plant [3][21] - Adjusted EBITDA for Q1 2025 was $4.9 million, down from $12.9 million in Q1 2024 [4] Financial Performance - Revenue breakdown: Thermal Barrier segment generated $48.9 million (25% decrease YoY), while Energy Industrial segment saw $29.8 million (3% increase YoY) [6] - Gross margins were reported at 29%, reflecting an eight-percentage point decrease year-over-year [6] - Operating cash flow for the quarter was $5.6 million, with cash and equivalents at the end of the quarter totaling $192.0 million [6][24] Business Developments - Aspen secured a new PyroThin contract with a leading American OEM for a next-gen prismatic lithium iron phosphate (LFP) vehicle platform, with production expected to start in 2028 [5][6] - The company is focusing on optimizing its cost structure and fortifying its supply chain to enhance financial performance [5] Q2 2025 Financial Outlook - Revenue is projected to range between $70 million and $80 million, with a net loss expected between $11 million and $4 million [7] - Adjusted EBITDA is anticipated to be between breakeven and $7 million [7] - Capital expenditures, excluding costs related to the Statesboro plant, are expected to be less than $10 million [7]

PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) This section presents Aspen Group, Inc.'s unaudited consolidated financial statements, reporting a net loss of $1.6 million for Q3 and $7.6 million for the nine months ended January 31, 2023 Consolidated Balance Sheet Highlights (Unaudited) | Account | January 31, 2023 | April 30, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,603,501 | $6,482,750 | | Total current assets | $31,020,566 | $39,382,591 | | Total assets | $87,834,620 | $91,066,051 | | Total current liabilities | $24,071,254 | $16,835,273 | | Total liabilities | $51,898,336 | $48,520,327 | | Total stockholders' equity | $35,936,284 | $42,545,724 | Consolidated Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | Nine Months Ended Jan 31, 2023 | Nine Months Ended Jan 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $15,574,042 | $18,944,798 | $51,542,502 | $57,316,004 | | Operating loss | $(813,793) | $(3,335,644) | $(5,469,208) | $(7,231,639) | | Net loss | $(1,555,040) | $(3,733,997) | $(7,563,651) | $(7,457,143) | | Net loss per share | $(0.06) | $(0.15) | $(0.30) | $(0.30) | Consolidated Statement of Cash Flows Highlights (Unaudited, Nine Months Ended Jan 31) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,456,117) | $(7,719,760) | | Net cash used in investing activities | $(1,681,706) | $(3,734,670) | | Net cash (used in) provided by financing activities | $(251,298) | $5,191,034 | | Net decrease in cash, cash equivalents and restricted cash | $(6,389,121) | $(6,263,396) | [Note 1. Nature of Operations](index=10&type=section&id=Note%201.%20Nature%20of%20Operations) Aspen Group, Inc. operates as an education technology holding company with two accredited universities, focusing on affordable higher education and the nursing profession - AGI operates as an education technology holding company with two subsidiaries, Aspen University and United States University[27](index=27&type=chunk) - The company's primary growth strategy targets the high-growth nursing profession[28](index=28&type=chunk) - Both universities are accredited and participate in Title IV federal student financial assistance programs[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 5. Debt](index=15&type=section&id=Note%205.%20Debt) As of January 31, 2023, the company's long-term debt totaled $15 million, comprising a $5 million credit facility and $10 million in 12% convertible notes, with a $20 million revolving facility expiring unused Long-Term Debt Composition (as of Jan 31, 2023) | Debt Instrument | Principal Amount | | :--- | :--- | | 2018 Credit Facility | $5,000,000 | | 2022 Convertible Notes | $10,000,000 | | **Total Long-Term Debt** | **$15,000,000** | - The **$10 million** in 2022 Convertible Notes bear **12% interest** (later increased to **14%**), are convertible to common stock at **$1.00 per share**, and mature in March 2027[63](index=63&type=chunk) - The **$5 million** 2018 Credit Facility had its maturity extended to November 4, 2023, and was subsequently repaid on May 12, 2023[70](index=70&type=chunk)[77](index=77&type=chunk) - A **$20 million** 2022 Revolving Credit Facility expired unused on March 14, 2023[66](index=66&type=chunk) [Note 7. Revenue](index=22&type=section&id=Note%207.%20Revenue) Revenue, primarily from tuition and fees, totaled **$51.5 million** for the nine months ended January 31, 2023, a decrease from the prior year, with the pre-licensure nursing program contributing **22%** Revenue Disaggregation (Nine Months Ended Jan 31) | Revenue Source | 2023 | 2022 | | :--- | :--- | :--- | | Tuition | $44,264,750 | $50,304,380 | | Course fees | $5,760,009 | $5,967,581 | | Other fees | $1,517,743 | $1,044,043 | | **Total Revenue** | **$51,542,502** | **$57,316,004** | - The pre-licensure nursing program, which is being taught out, contributed **19% of revenue in Q3 2023** and **22% in the first nine months of fiscal 2023**[121](index=121&type=chunk) - Deferred revenue increased to **$8.1 million** as of January 31, 2023, from **$5.9 million** as of April 30, 2022[113](index=113&type=chunk) [Note 10. Commitments and Contingencies](index=26&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) The company faces significant regulatory and legal challenges, including a class action lawsuit, a teach-out agreement for its pre-licensure nursing program due to low NCLEX pass rates, and a Department of Education program review - Aspen University faces a class action lawsuit in Arizona alleging violations of the Arizona Consumer Fraud Act and Unjust Enrichment related to its pre-licensure nursing program[137](index=137&type=chunk) - Due to low NCLEX pass rates (**58% in 2021 vs. 80% standard**), Aspen University entered a Consent Agreement with the Arizona State Board of Nursing to voluntarily surrender its pre-licensure program approval and conduct a teach-out for current students[149](index=149&type=chunk)[152](index=152&type=chunk) - On January 6, 2023, the Department of Education initiated an off-site Program Review of Aspen University, focusing on its administration of Title IV programs for the 2021-2023 award years[163](index=163&type=chunk) [Note 11. Subsequent Events](index=32&type=section&id=Note%2011.Subsequent%20Events) Post-quarter, the company completed a **$12.4 million** private offering, voluntarily delisted from Nasdaq, and Aspen University faced further regulatory scrutiny including a 'Show Cause' directive and Heightened Cash Management 2 status - On May 12, 2023, the company completed a private offering of **$12.4 million** in **15% Senior Secured Debentures** due 2026, using proceeds to repay the 2018 Credit Facility and for working capital[168](index=168&type=chunk) - The company voluntarily delisted its common stock from Nasdaq on March 23, 2023, and now trades on the OTC market to reduce costs and management time[175](index=175&type=chunk) - On February 1, 2023, accreditor DEAC issued a 'Show Cause' directive to Aspen University, questioning its compliance and accreditation[178](index=178&type=chunk) Subsequently, on February 7, 2023, the DOE placed the university on Heightened Cash Management 2 (HCM2), impacting its access to Title IV funds[183](index=183&type=chunk)[185](index=185&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses a **27%** decline in active students and **18%** revenue decrease in Q3 FY2023, driven by program suspension and reduced marketing, offset by restructuring efforts leading to improved operating loss and positive Adjusted EBITDA - The active student body declined **27% year-over-year to 9,956**, and new student enrollments dropped **40% in Q3**, primarily due to the pre-licensure program stoppage and a significant reduction in marketing spend[201](index=201&type=chunk)[206](index=206&type=chunk) Q3 Fiscal 2023 vs Q3 Fiscal 2022 Performance | Metric | Q3 FY2023 | Q3 FY2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $15.6M | $18.9M | (18)% | | Marketing & Promotional Costs | $0.13M | $4.35M | (97)% | | General & Administrative | $9.6M | $11.8M | (18)% | | Net Loss | $(1.6M) | $(3.7M) | 58% improvement | | Adjusted EBITDA | $1.0M | $(1.3M) | N/A | - A restructuring plan implemented in late Q1 2023 involved cutting marketing spend to maintenance levels and eliminating **~70 positions**, resulting in total spend reductions of **$4.9 million in Q3 2023**[298](index=298&type=chunk) - The company secured **$12.4 million** in new **15% Senior Secured Debentures** on May 12, 2023, providing **$3.4 million** in unrestricted cash for working capital after repaying prior debt and fees[290](index=290&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is marked as not applicable by the company - Not applicable[303](index=303&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures are effective as of January 31, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures are effective as of January 31, 2023[306](index=306&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[307](index=307&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings.) No material changes to legal proceedings were reported for the period, consistent with the Annual Report on Form 10-K - No material changes to legal proceedings were reported for the period[310](index=310&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors.) No new or materially changed risk factors were disclosed in this section for the quarter - This section is marked as 'None', indicating no new risk factors are being disclosed in this filing[311](index=311&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reported no unregistered sales of equity securities during the period - This section is marked as 'None'[312](index=312&type=chunk)