FORM 10-K Delaware 83-1739858 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.0001 per share ATER The Nasdaq Stock Market LLC Non-accelerated filer ☒ Smaller reporting company ☒ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI ...

Aterian, Inc. (NASDAQ:ATER) Q4 2023 Earnings Conference Call March 12, 2024 5:00 PM ET Company Participants Ilya Grozovsky - Vice President, Investor Relations and Corporate Development Joe Risico - Co-Chief Executive Officer Arturo Rodriguez - Co-Chief Executive Officer and Chief Financial Officer Conference Call Participants Brian Kinstlinger - Alliance Global Partners Mike Zabran - ROTH MKM Marvin Fong - BTIG Operator Good afternoon. I would like to welcome you to the Aterian, Inc. Q4 Earnings Report. Al ...

Core Viewpoint - Aterian, Inc. has made a strategic minority equity investment in 4th & Heart, a leading U.S. maker of premium ghee butter products, amounting to approximately $0.2 million in cash and around 145,000 shares of Aterian common stock [1] Group 1: Aterian, Inc. - Aterian, Inc. is a technology-enabled consumer products company that builds and acquires leading e-commerce brands across multiple categories, including home and kitchen appliances, health and wellness, and air quality devices [3] - The company focuses on selling through major online marketplaces, particularly Amazon and Walmart in the U.S., as well as its own direct-to-consumer websites [3] Group 2: 4th & Heart - 4th & Heart, based in Marina del Rey, California, was launched in 2015 and aims to revolutionize the modern pantry with ghee butter, an ancient Ayurvedic staple [4] - The company's products are available in over 12,000 stores nationwide, including major retailers such as Whole Foods, Kroger, Albertsons, Publix, Wegmans, and Walmart [4] - 4th & Heart offers a variety of kitchen essentials, including flavored spreads and oils, to help consumers incorporate grass-fed ghee into their daily diets [4] Group 3: Strategic Partnership - Aterian's Co-CEO expressed excitement about the investment and the potential for strategic opportunities between the two companies, emphasizing a shared vision of promoting healthier lifestyles through their products [1] - The CEO of 4th & Heart highlighted that the partnership with Aterian will support the growth of their brand in both current and emerging markets, aiming to unlock future potential together [1]

Core Viewpoint - Aterian, Inc. is set to report its fourth quarter and full year 2023 financial results on March 12, 2024, and will host a conference call for investors that evening [1]. Company Overview - Aterian, Inc. is a technology-enabled consumer products company that focuses on building and acquiring leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [2]. - The company primarily sells its products through major online marketplaces, with a significant focus on Amazon and Walmart in the U.S., as well as its own direct-to-consumer websites [2]. Investor Contact Information - Ilya Grozovsky is the Vice President of Investor Relations & Corporate Development at Aterian, and can be contacted via email at ilya@aterian.io or by phone at 917-905-1699 [3].

Core Viewpoint - Aterian, Inc. has successfully extended its asset-backed credit facility with MidCap Financial, enhancing its financial liquidity and providing a more favorable covenant structure for future growth [1][2]. Group 1: Credit Facility Details - The maturity of the credit facility has been extended to December 2026, allowing Aterian access to $17.0 million in current commitments, which can potentially increase to $30.0 million under certain conditions [1]. - The minimum liquidity financial covenant has been reduced from $15.0 million to $6.8 million, improving the company's cash management flexibility [1]. - The extension fee for this credit facility was less than $0.1 million [1]. Group 2: Management Commentary - Aterian's Co-CEO and CFO, Arturo Rodriguez, expressed enthusiasm about the long-term relationship with MidCap Financial, highlighting the company's recent initiatives to focus and stabilize its core business [2]. - Rodriguez indicated that the credit facility's flexibility on liquidity covenants, combined with existing cash, has strengthened Aterian's balance sheet, positioning the company towards adjusted EBITDA profitability in the second half of 2024 [2]. Group 3: Company Overview - Aterian, Inc. is a technology-enabled consumer products company that builds and acquires leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [3]. - The company primarily sells through major online marketplaces, focusing on Amazon and Walmart in the U.S., as well as its own direct-to-consumer websites [3]. Group 4: About MidCap Financial - MidCap Financial is a specialty finance firm focused on providing senior debt solutions to middle-market companies across all industries, managing over $50 billion in commitments as of December 31, 2023 [4]. - The firm is managed by Apollo Capital Management, a subsidiary of Apollo Global Management, Inc. [4].

Expected to Save $4.0 Million Annualized On Target for Second Half 2024 Adjusted EBITDA Profitability Fourth Quarter 2023 Net Revenue Range Improved to $31.2 Million to $32.0 Million Expected Adjusted EBITDA Loss Range Improved to $(6.3) Million to $(5.5) Million NEW YORK, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Aterian, Inc. (NASDAQ:ATER) ("Aterian" or the "Company") today announced a fixed cost reduction as part of the final steps of its previously announced SKU rationalization program. The Company also relea ...

Aterian, Inc. (NASDAQ:ATER) Q3 2023 Earnings Conference Call November 8, 2023 5:00 PM ET Company Participants Ilya Grozovsky - Vice President, Investor Relations & Corporate Development Joe Risico - Co-Chief Executive Officer Arturo Rodriguez - Co-Chief Executive Officer Conference Call Participants Mike Zabran - ROTH MKM Brian Kinstlinger - Alliance Global Partners Ilya Grozovsky Thank you for joining us today to discuss Aterian’s Third Quarter 2023 Earnings Results. On today's call are Joe Risico and Artu ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.0001 par value per share ATER The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission Fil ...

Financial Data and Key Metrics Changes - For Q2 2023, net revenues declined 39.5% to $35.3 million from $58.3 million in the same quarter last year, primarily due to reduced consumer discretionary spending and significant competitive pricing pressures [15][20] - Overall gross margin for Q2 2023 decreased to 42.2% from 53.8% in the year-ago quarter, driven by pricing pressures and a $2.5 million increase in inventory obsolescence reserve [17][18] - Adjusted EBITDA loss for Q2 2023 was $8 million, increasing from a loss of $3.7 million in Q2 2022 [21] Business Line Data and Key Metrics Changes - Sustain net revenues decreased by $23.1 million, particularly affecting dehumidifier and air conditioning product lines [16] - Liquidation net revenue increased by $1.3 million due to strategic initiatives to sell off higher-priced inventory [16] - Contribution margin for sustain products declined to 2.1% from 13.3% year-over-year, impacted by pricing pressure and inventory obsolescence [18] Market Data and Key Metrics Changes - The company experienced significant pricing pressure across its portfolio, particularly in environmental appliances [9][10] - Competitive dynamics on marketplaces like Amazon have intensified, affecting sales velocity and product visibility [49] Company Strategy and Development Direction - The company aims to focus on its most profitable products and rationalize its SKU portfolio to enhance profitability [11][12] - Geographic expansion, particularly in Europe, is not a near-term focus, with efforts concentrated on the U.S. market [12] - Organic growth through M&A remains part of the strategic roadmap, with a focus on core products and an omni-channel strategy [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from high consumer inflation and shifts in discretionary spending, expecting these trends to continue through 2023 [10][24] - The target for adjusted EBITDA profitability has been pushed to summer 2024, reflecting a more cautious outlook on consumer spending [24] Other Important Information - The company has a cash balance of approximately $28.9 million as of June 30, 2023, down from $33.9 million at the end of Q1 2023 [22] - Inventory levels decreased to $36.7 million from $40.4 million in Q1 2023, but further normalization is needed [22] Q&A Session Summary Question: What is the impact of SKU rationalization on revenue? - Management indicated that while SKU rationalization will impact revenue, the focus is more on profitability rather than material revenue cuts [28] Question: Will entire brands be eliminated during SKU rationalization? - The approach will be surgical, reviewing each SKU, with potential elimination of brands that do not contribute meaningfully to profitability [30] Question: What is the status of inventory liquidation? - The company has reduced inventory from $76 million to $36 million but aims to further decrease it to below 10% of average balances [35] Question: What is driving pricing pressure in the product categories? - Pricing pressure is noted across the portfolio, particularly in discretionary items, with some products facing competitive challenges on marketplaces [37] Question: What are the expected cost savings from restructuring? - Approximately 90% to 95% of the $6 million in annualized cost cuts will come from headcount reductions, with full impact expected by Q1 of the following year [43] Question: What are the top-performing brands for investment? - Brands like Squatty Potty and others in home and kitchen appliances are identified as key areas for investment and marketing focus [45]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38937 | --- | --- | --- | |------------------------------------------------------------------------------|------------------------------|--------------------------- ...