ASPEN AEROGELS INC, 10-Q filed on 8/7/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Jul. 31, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
ASPN 
 
Entity Registrant Name
ASPEN AEROGELS INC 
 
Entity Central Index Key
0001145986 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
23,046,278 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 29,575 
$ 49,719 
Marketable securities
2,504 
 
Accounts receivable, net of allowances of $108 and $120, respectively
19,957 
17,924 
Inventories
6,075 
4,897 
Prepaid expenses and other current assets
2,105 
836 
Total current assets
60,216 
73,376 
Property, plant and equipment, net
78,149 
71,492 
Other assets
123 
175 
Total assets
138,488 
145,043 
Current liabilities:
 
 
Capital leases, current portion
75 
76 
Accounts payable
9,791 
14,202 
Accrued expenses
4,081 
5,588 
Deferred revenue
2,531 
292 
Other current liabilities
37 
50 
Total current liabilities
16,515 
20,208 
Capital leases, excluding current portion
52 
89 
Other long-term liabilities
1,038 
1,030 
Total liabilities
17,605 
21,327 
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, 2015 and December 31, 2014;
   
   
Common stock, $0.00001 par value; 125,000,000 shares authorized, 23,046,278 and 22,992,273 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
Additional paid-in capital
525,499 
522,800 
Accumulated deficit
(404,616)
(399,084)
Total stockholders' equity
120,883 
123,716 
Total liabilities and stockholders' equity
$ 138,488 
$ 145,043 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 108 
$ 120 
Preferred stock, par value
$ 0.00001 
$ 0.00001 
Preferred stock, shares authorized
5,000,000 
5,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.00001 
$ 0.00001 
Common stock, shares authorized
125,000,000 
125,000,000 
Common stock, shares issued
23,046,278 
22,992,273 
Common stock, shares outstanding
23,046,278 
22,992,273 
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenue:
 
 
 
 
Product
$ 29,755 
$ 25,893 
$ 52,966 
$ 47,386 
Research services
341 
722 
630 
1,592 
Total revenue
30,096 
26,615 
53,596 
48,978 
Cost of revenue:
 
 
 
 
Product
24,814 
22,850 
43,659 
41,391 
Research services
173 
340 
313 
816 
Gross profit
5,109 
3,425 
9,624 
6,771 
Operating expenses:
 
 
 
 
Research and development
1,551 
1,920 
2,855 
3,203 
Sales and marketing
2,722 
3,420 
5,054 
5,658 
General and administrative
3,534 
6,206 
7,157 
8,928 
Total operating expenses
7,807 
11,546 
15,066 
17,789 
Loss from operations
(2,698)
(8,121)
(5,442)
(11,018)
Interest expense
(45)
(34,027)
(90)
(50,178)
Total interest expense
(45)
(34,027)
(90)
(50,178)
Net loss
(2,743)
(42,148)
(5,532)
(61,196)
Net loss attributable to common stockholders
$ (2,743)
$ (42,148)
$ (5,532)
$ (61,196)
Net loss attributable to common stockholders per share:
 
 
 
 
Basic
$ (0.12)
$ (13.88)
$ (0.24)
$ (40.05)
Diluted
$ (0.12)
$ (13.88)
$ (0.24)
$ (40.05)
Weighted-average common shares outstanding:
 
 
 
 
Basic and diluted
22,999,988 
3,035,717 
22,996,152 
1,527,806 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:
 
 
Net loss
$ (5,532)
$ (61,196)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
 
 
Depreciation and amortization
4,759 
5,179 
Loss on disposal of assets
 
15 
Debt issuance costs
 
32 
Accretion of debt to fair value
 
50,011 
Stock compensation expense
2,699 
6,344 
Other
 
(31)
Changes in operating assets and liabilities:
 
 
Accounts receivable
(2,033)
213 
Inventories
(1,178)
1,402 
Prepaid expenses and other assets
(1,267)
(436)
Accounts payable
1,177 
(83)
Accrued expenses
(1,507)
(1,623)
Deferred revenue
2,239 
364 
Net cash (used in) provided by operating activities
(643)
191 
Cash flows from investing activities:
 
 
Capital expenditures
(16,959)
(2,197)
Purchases of marketable securities
(2,504)
 
Net cash used in investing activities
(19,463)
(2,197)
Cash flows from financing activities:
 
 
Borrowings under line of credit
 
4,500 
Repayments under line of credit
 
(5,500)
Repayment of borrowing under long-term debt
 
(18,849)
Financing costs
 
(32)
Repayment of obligations under capital lease
(38)
(42)
Proceeds from initial public offering
 
77,270 
Proceeds from issuance of common stock
 
Net cash (used in) provided by financing activities
(38)
57,349 
Net (decrease) increase in cash
(20,144)
55,343 
Cash at beginning of period
49,719 
1,574 
Cash at end of period
29,575 
56,917 
Supplemental disclosures of cash flow information:
 
 
Interest paid
99 
134 
Income taxes paid
Supplemental disclosures of non-cash activities:
 
 
Conversion of convertible and senior convertible notes to common stock
 
168,511 
Unpaid initial public offering costs
 
2,516 
Changes in accrued capital expenditures
(5,588)
52 
Capitalized interest
 
34 
Capitalized leases
 
$ 5 
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation

(1) Description of Business and Basis of Presentation

Nature of Business

Aspen Aerogels, Inc. (the Company) is an energy technology company that designs, develops and manufactures innovative, high-performance aerogel insulation. The Company also conducts research and development related to aerogel technology supported by funding from several agencies of the U.S. government and other institutions in the form of research and development contracts.

The Company maintains its corporate offices in Northborough, Massachusetts. The Company has two wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC and Aspen Aerogels Germany, GmbH.

On June 18, 2014, the Company completed an initial public offering (IPO) of 7,500,000 shares of its common stock at a public offering price of $11.00 per share. The Company received net proceeds of $74.7 million after deducting underwriting discounts and commissions of $4.3 million and offering expenses of approximately $3.5 million. Upon the closing of the offering, all of the Company’s then-outstanding (i) warrants to purchase Series C preferred stock (the Series C warrants) were subject to an automatic net cashless exercise, (ii) convertible preferred stock (including the shares of Series C preferred stock issued upon the automatic net cashless exercise of Series C warrants) automatically converted into 115,982 shares of common stock, and (iii) Convertible Notes and Senior Convertible Notes (see note 7) automatically converted into 15,319,034 shares of common stock.

Prior to the closing of the offering, the Company completed a 1-for-824.7412544 reverse stock split of its common stock. All common shares and related per share amounts in the financial statements and notes have been adjusted retroactively to reflect the reverse stock split.

Unaudited Interim Financial Information

The accompanying unaudited interim consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report), filed with the Securities and Exchange Commission on March 13, 2015.

In the opinion of the Company’s management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments that are of a normal recurring nature and necessary for the fair statement of the Company’s financial position as of June 30, 2015 and the results of its operations for the three and six months ended June 30, 2015 and 2014 and the cash flows for the six month period then ended. The Company has evaluated events through the date of this filing.

The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or any other period.

There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and notes thereto.

 

Principles of Consolidation

The accompanying consolidated financial statements, which have been prepared in accordance with U.S. GAAP, include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Significant Accounting Policies
Significant Accounting Policies

(2) Significant Accounting Policies

Use of Estimates

The preparation of the consolidated financial statements requires the Company to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include allowances for doubtful accounts, sales returns and allowances, inventory valuation, the carrying amount of property and equipment, fair value of debt and capital stock, stock-based compensation and deferred income taxes. The Company evaluates its estimates and assumptions on an on-going basis using historical experience and other factors, including the current economic environment, which are believed to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets and declines in business investment increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid instruments, which consist of money market accounts. All cash and cash equivalents are maintained with major financial institutions in North America. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk.

Marketable Securities

Marketable securities consist primarily of marketable debt securities which are classified as available-for-sale and are carried at fair value at June 30, 2015. The Company held no marketable securities at December 31, 2014. The unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss). The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase to be cash equivalents, and investments with maturities of greater than 90 days at the time of purchase to be marketable securities. When a marketable security incurs a significant unrealized loss for a sustained period of time, the Company will review the instrument to determine if it is other-than-temporarily impaired. If it is determined that an instrument is other-than-temporarily impaired, the Company will record the unrealized loss in the consolidated statement of operations.

The following table classifies the Company’s marketable securities by contractual maturities as of June 30, 2015:

 

     Fair Value  
     (In thousands)  

Due in one year or less

   $ 2,504   

Due in more than one year

     —    
  

 

 

 

Total marketable securities

   $ 2,504   
  

 

 

 

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consists of changes in the fair market value of available-for-sale securities. As of June 30, 2015, amortized cost of available-for-sale securities approximated fair value.

 

Fair Value of Financial Instruments

Fair value is an exit price that represents the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Accordingly, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company discloses the manner in which fair value is determined for assets and liabilities based on a three-tiered fair value hierarchy. The hierarchy ranks the quality and reliability of the information used to determine the fair values. The three levels of inputs described in the standard are:

 

Level 1:

   Quoted prices in active markets for identical assets or liabilities.

Level 2:

   Observable inputs, other than Level 1 prices, for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.

Level 3:

   Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Under the Fair Value Option Subsections of Financial Accounting Standards Board (FASB) ASC Subtopic 825-10, Financial Instruments — Overall, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument by instrument basis, with changes in fair value reported in earnings each reporting period. As a result of electing this option, the Company recorded its previously outstanding Subordinated Notes, Senior Convertible Notes and Convertible Notes at fair value in order to measure these liabilities at amounts that more accurately reflect the economics of these instruments (see note 7).

During the six month period ended June 30, 2014, the Company valued its then outstanding Subordinated Notes, Senior Convertible Notes and Convertible Notes utilizing Level 3 inputs.

Upon the completion of the Company’s IPO discussed in note 1, the Company used a portion of the net proceeds to settle all obligations under the Subordinated Notes in full and the Senior Convertible Notes and Convertible Notes automatically converted into 15,319,034 shares of common stock.

At June 30, 2015, the Company held marketable debt securities classified as available-for-sale totaling $2.5 million, which were valued utilizing Level 1 inputs. The Company held no marketable securities at December 31, 2014.

Stock-based Compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award. Expense is recognized on a straight-line basis over the requisite service period for all awards with service conditions. For performance-based awards, the grant date fair value is recognized as expense when the condition is probable of being achieved, and then on a graded basis over the requisite service period. The Company uses the Black-Scholes option-pricing model to determine the fair value of service-based option awards, which requires a number of complex and subjective assumptions including fair value of the underlying security, the expected volatility of the underlying security, a risk-free interest rate and the expected term of the option. The fair value of restricted stock and restricted stock unit grants is determined using the closing trading price of the Company’s common stock on the date of grant.

During the six months ended June 30, 2015, the Company issued 219,944 restricted common stock units (RSUs) and non-qualified stock options (NSOs) to purchase 231,223 shares of common stock to its employees under the 2014 Employee, Director and Consultant Equity Incentive Plan (the 2014 Equity Plan). These RSUs and NSOs will vest over a three year period. In June 2015, the Company also issued 54,005 shares of restricted common stock and an additional 71,596 NSOs to its non-employee directors. These awards vest one year from the date of grant. Pursuant to the evergreen provisions of the 2014 Equity Plan, the number of shares of common stock available for issuance under the plan automatically increased to 3,698,257 shares effective January 1, 2015.

Earnings per Share

The Company calculates net loss per common share based on the weighted-average number of common shares outstanding during each period. Potential common stock equivalents are determined using the treasury stock method. The weighted-average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, RSUs and warrants. Common equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive.

 

Segments

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision maker when making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company’s chief operating decision maker reviews consolidated operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company views its operations and manages its business as one operating segment.

Information about the Company’s total revenues, based on shipment destination or services location, is presented in the following table:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  
     (In thousands)  

Revenue:

           

U.S.

   $ 11,038       $ 6,772       $ 21,722       $ 17,435   

International

     19,058         19,843         31,874         31,543   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 30,096       $ 26,615       $ 53,596       $ 48,978   
  

 

 

    

 

 

    

 

 

    

 

 

 

Recently Issued Accounting Standards

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Fair Value Measurements
Fair Value Measurements

(3) Fair Value Measurements

The following table sets forth the manner, within the three-tiered fair value hierarchy, by which financial assets are measured and reported at fair value as of June 30, 2015:

 

            Fair Value Measurement at
Reporting Date Using
 
     June 30, 2015      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 
     (In thousands)  

Marketable securities:

           

U.S. corporate bonds

   $ 1,004       $ 1,004       $ —         $ —     

Foreign corporate bonds

     1,500         1,500         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,504       $ 2,504       $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

As of June 30, 2015, the amortized cost of available-for-sale securities approximated their fair value.

Inventories
Inventories

(4) Inventories

Inventories consist of the following:

 

   June 30,
2015
     December 31,
2014
 
     (In thousands)  

Raw materials

   $ 4,635       $ 4,052   

Finished goods

     1,440         845   
  

 

 

    

 

 

 

Total

   $ 6,075       $ 4,897   
  

 

 

    

 

 

 

Property, Plant and Equipment, Net
Property, Plant and Equipment, Net

(5) Property, Plant and Equipment, Net

Property, plant and equipment consist of the following:

 

     June 30,
2015
     December 31,
2014
     Useful
life
     (In thousands)

Construction in progress

   $ 1,422       $ 24,124       —  

Buildings

     23,849         16,303       30 years

Machinery and equipment

     103,452         78,378       3-10 years

Computer equipment and software

     6,752         5,556       3 years
  

 

 

    

 

 

    

Total

     135,475         124,361      

Accumulated depreciation and amortization

     (57,326 )      (52,869 )   
  

 

 

    

 

 

    

Property, plant and equipment, net

   $ 78,149       $ 71,492      
  

 

 

    

 

 

    

Depreciation expense was $4.7 million and $5.1 million for the six months ended June 30, 2015 and 2014, respectively.

Construction in progress totaled $1.4 million and $24.1 million at June 30, 2015 and December 31, 2014, respectively. In March 2015, the Company placed into service approximately $31.8 million of assets related to the Company’s completed third production line at its manufacturing facility in East Providence, Rhode Island.

Accrued Expenses
Accrued Expenses

(6) Accrued Expenses

Accrued expenses consist of the following:

 

     June 30,
2015
     December 31,
2014
 
     (In thousands)  

Employee compensation

   $ 3,122       $ 4,851   

Professional fees

     135         76   

Deferred rent

     181         155   

Other accrued expenses

     643         506   
  

 

 

    

 

 

 

Total

   $ 4,081       $ 5,588   
  

 

 

    

 

 

 

Interest Expense
Interest Expense

(7) Interest Expense

Interest expense consists of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
         2015          2014          2015          2014  
     (In thousands)  

Changes in fair value:

           

Subordinated Notes

   $ —        $ 748       $ —        $ 1,543   

Senior Convertible Notes

     —          7,838         —          11,373   

Convertible Notes, net of capitalization

     —          25,355         —          37,095   

Debt closing costs

     —          15         —          32   

Other interest

     45         71         90         135   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

   $ 45       $ 34,027       $ 90       $ 50,178   
  

 

 

    

 

 

    

 

 

    

 

 

 

Prior to the completion of the Company’s IPO on June 18, 2014, the Company had Subordinated Notes, Senior Convertible Notes and Convertible Notes outstanding that were measured at fair value using level 3 inputs.

 

The change in fair value of the Subordinated Notes for the three and six months ended June 30, 2014 was determined by utilizing a probability weighted discounted cash flow analysis of the amount to be paid on the notes upon the occurrence of certain events in which the Subordinated Notes would be repaid to the noteholders in cash. This analysis utilized assumptions related to the probability of the occurrence of each of the various events and appropriate discount rates for each of the scenarios. The Subordinated Notes were repaid in full on June 20, 2014. As of that date, the aggregate fair value of the Subordinated Notes was determined to be $18.8 million.

The change in the fair value of the Senior Convertible Notes and the Convertible Notes for the three and six months ended June 30, 2014 was determined by utilizing a probability weighted discounted cash flow analysis which took into consideration market and general economic events as well as the Company’s financial results and other data available as of that date. This analysis determined the amount to be paid on the notes in either cash or shares at the occurrence of certain events in which the Senior Convertible Notes and the Convertible Notes would be converted into shares of the Company’s common stock or would be repaid to the noteholders in cash. This analysis also utilized assumptions related to the probability of the occurrence of each of the various events and appropriate discount rates for each of the scenarios. The fair value of the Senior Convertible Notes and the Convertible Notes upon the closing of the Company’s IPO were determined to be $39.5 million and $129.0 million, respectively.

Revolving Line of Credit
Revolving Line of Credit

(8) Revolving Line of Credit

The Company maintains a revolving credit facility with Silicon Valley Bank. On September 3, 2014, the Company amended and restated the loan and security agreement to extend the maturity date of the facility to August 31, 2016 and increase the maximum amount the Company is permitted to borrow, subject to continued covenant compliance and borrowing base requirements, from $10 million to $20 million. At the Company’s election, the interest rate applicable to borrowings under the revolving credit facility may be based on the prime rate or LIBOR. Prime rate-based rates vary from prime rate plus 0.75% per annum to prime rate plus 1.75% per annum, while LIBOR-based rates vary from LIBOR plus 3.75% per annum to LIBOR plus 4.25% per annum. In addition, the Company is required to pay a monthly unused revolving line facility fee of 0.5% per annum of the average unused portion of the revolving credit facility. The revolving credit facility is secured by a first priority security interest in all assets of the Company, including those at the East Providence facility, except for certain exclusions.

At both June 30, 2015 and December 31, 2014, the Company had no amounts drawn on the revolving credit facility. The Company had outstanding letters of credit backed by the revolving credit facility of $1.8 million at June 30, 2015 and $1.4 million at December 31, 2014, respectively, which reduce the funds otherwise available to the Company. Based on the available borrowing base, the effective amount available to the Company under the revolving credit facility at June 30, 2015 was $12.8 million after consideration of the $1.8 million of outstanding letters of credit (see note 9). Under the revolving credit facility, the Company is required to comply with financial covenants relating to, among other items, minimum Adjusted EBITDA, maximum unfinanced capital expenditures and other non-financial covenants. At June 30, 2015, the Company was in compliance with all such financial covenants.

Commitments and Contingencies
Commitments and Contingencies

(9) Commitments and Contingencies

Letters of Credit

Pursuant to the terms of its Northborough, Massachusetts facility lease, the Company has been required to provide the lessor with letters of credit securing certain obligations. In addition, the Company has been required to provide certain customers with letters of credit securing obligations under commercial contracts.

The Company had letters of credit outstanding for $1.8 million at June 30, 2015 and $1.4 million at December 31, 2014. These letters of credit are secured by the Company’s revolving line of credit (see note 8).

Litigation

The Company is, from time to time, a party to litigation that arises in the normal course of its business operations. The Company is not presently a party to any litigation for which it believes a loss is probable requiring an amount to be accrued or a possible loss contingency requiring disclosure.

Net Loss Per Share
Net Loss Per Share

(10) Net Loss Per Share

The computation of basic and diluted net loss attributable to common stockholders per share consists of the following:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2015     2014     2015     2014  
    

(In thousands, except

share and per share data)

 

Numerator:

        

Net loss attributable to common stockholders

   $ (2,743 )   $ (42,148 )   $ (5,532 )   $ (61,196 )
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted average shares outstanding, basic and diluted

     22,999,988        3,035,717        22,996,152        1,527,806   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders per common share, basic and diluted

   $ (0.12 )   $ (13.88 )   $ (0.24 )   $ (40.05 )
  

 

 

   

 

 

   

 

 

   

 

 

 

Potential dilutive common shares that were excluded from the computation of diluted net loss attributable to common stockholders per common share because they were anti-dilutive consist of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  

Common stock options

     1,298,931         96,999         1,298,931         96,999   

Restricted common stock units

     521,599         —           521,599         —     

Common stock warrants

     131         131        131         131  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,820,661         97,130         1,820,661         97,130   
  

 

 

    

 

 

    

 

 

    

 

 

 

As of June 30, 2015 and 2014, there was no dilutive impact of the common stock options, RSUs and common stock warrants.

Income Taxes
Income Taxes

(11) Income Taxes

The Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. Accordingly, the Company has not recorded a provision for federal or state income taxes.

Description of Business and Basis of Presentation (Policies)

Nature of Business

Aspen Aerogels, Inc. (the Company) is an energy technology company that designs, develops and manufactures innovative, high-performance aerogel insulation. The Company also conducts research and development related to aerogel technology supported by funding from several agencies of the U.S. government and other institutions in the form of research and development contracts.

The Company maintains its corporate offices in Northborough, Massachusetts. The Company has two wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC and Aspen Aerogels Germany, GmbH.

On June 18, 2014, the Company completed an initial public offering (IPO) of 7,500,000 shares of its common stock at a public offering price of $11.00 per share. The Company received net proceeds of $74.7 million after deducting underwriting discounts and commissions of $4.3 million and offering expenses of approximately $3.5 million. Upon the closing of the offering, all of the Company’s then-outstanding (i) warrants to purchase Series C preferred stock (the Series C warrants) were subject to an automatic net cashless exercise, (ii) convertible preferred stock (including the shares of Series C preferred stock issued upon the automatic net cashless exercise of Series C warrants) automatically converted into 115,982 shares of common stock, and (iii) Convertible Notes and Senior Convertible Notes (see note 7) automatically converted into 15,319,034 shares of common stock.

Prior to the closing of the offering, the Company completed a 1-for-824.7412544 reverse stock split of its common stock. All common shares and related per share amounts in the financial statements and notes have been adjusted retroactively to reflect the reverse stock split.

Unaudited Interim Financial Information

The accompanying unaudited interim consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report), filed with the Securities and Exchange Commission on March 13, 2015.

In the opinion of the Company’s management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments that are of a normal recurring nature and necessary for the fair statement of the Company’s financial position as of June 30, 2015 and the results of its operations for the three and six months ended June 30, 2015 and 2014 and the cash flows for the six month period then ended. The Company has evaluated events through the date of this filing.

The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or any other period.

There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and notes thereto.

Principles of Consolidation

The accompanying consolidated financial statements, which have been prepared in accordance with U.S. GAAP, include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements requires the Company to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include allowances for doubtful accounts, sales returns and allowances, inventory valuation, the carrying amount of property and equipment, fair value of debt and capital stock, stock-based compensation and deferred income taxes. The Company evaluates its estimates and assumptions on an on-going basis using historical experience and other factors, including the current economic environment, which are believed to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets and declines in business investment increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid instruments, which consist of money market accounts. All cash and cash equivalents are maintained with major financial institutions in North America. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk.

Marketable Securities

Marketable securities consist primarily of marketable debt securities which are classified as available-for-sale and are carried at fair value at June 30, 2015. The Company held no marketable securities at December 31, 2014. The unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss). The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase to be cash equivalents, and investments with maturities of greater than 90 days at the time of purchase to be marketable securities. When a marketable security incurs a significant unrealized loss for a sustained period of time, the Company will review the instrument to determine if it is other-than-temporarily impaired. If it is determined that an instrument is other-than-temporarily impaired, the Company will record the unrealized loss in the consolidated statement of operations.

The following table classifies the Company’s marketable securities by contractual maturities as of June 30, 2015:

 

     Fair Value  
     (In thousands)  

Due in one year or less

   $ 2,504   

Due in more than one year

     —    
  

 

 

 

Total marketable securities

   $ 2,504   
  

 

 

 

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consists of changes in the fair market value of available-for-sale securities. As of June 30, 2015, amortized cost of available-for-sale securities approximated fair value.

Fair Value of Financial Instruments

Fair value is an exit price that represents the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Accordingly, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company discloses the manner in which fair value is determined for assets and liabilities based on a three-tiered fair value hierarchy. The hierarchy ranks the quality and reliability of the information used to determine the fair values. The three levels of inputs described in the standard are:

 

Level 1:

   Quoted prices in active markets for identical assets or liabilities.

Level 2:

   Observable inputs, other than Level 1 prices, for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.

Level 3:

   Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Under the Fair Value Option Subsections of Financial Accounting Standards Board (FASB) ASC Subtopic 825-10, Financial Instruments — Overall, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument by instrument basis, with changes in fair value reported in earnings each reporting period. As a result of electing this option, the Company recorded its previously outstanding Subordinated Notes, Senior Convertible Notes and Convertible Notes at fair value in order to measure these liabilities at amounts that more accurately reflect the economics of these instruments (see note 7).

During the six month period ended June 30, 2014, the Company valued its then outstanding Subordinated Notes, Senior Convertible Notes and Convertible Notes utilizing Level 3 inputs.

Upon the completion of the Company’s IPO discussed in note 1, the Company used a portion of the net proceeds to settle all obligations under the Subordinated Notes in full and the Senior Convertible Notes and Convertible Notes automatically converted into 15,319,034 shares of common stock.

At June 30, 2015, the Company held marketable debt securities classified as available-for-sale totaling $2.5 million, which were valued utilizing Level 1 inputs. The Company held no marketable securities at December 31, 2014.

Stock-based Compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award. Expense is recognized on a straight-line basis over the requisite service period for all awards with service conditions. For performance-based awards, the grant date fair value is recognized as expense when the condition is probable of being achieved, and then on a graded basis over the requisite service period. The Company uses the Black-Scholes option-pricing model to determine the fair value of service-based option awards, which requires a number of complex and subjective assumptions including fair value of the underlying security, the expected volatility of the underlying security, a risk-free interest rate and the expected term of the option. The fair value of restricted stock and restricted stock unit grants is determined using the closing trading price of the Company’s common stock on the date of grant.

During the six months ended June 30, 2015, the Company issued 219,944 restricted common stock units (RSUs) and non-qualified stock options (NSOs) to purchase 231,223 shares of common stock to its employees under the 2014 Employee, Director and Consultant Equity Incentive Plan (the 2014 Equity Plan). These RSUs and NSOs will vest over a three year period. In June 2015, the Company also issued 54,005 shares of restricted common stock and an additional 71,596 NSOs to its non-employee directors. These awards vest one year from the date of grant. Pursuant to the evergreen provisions of the 2014 Equity Plan, the number of shares of common stock available for issuance under the plan automatically increased to 3,698,257 shares effective January 1, 2015.

Earnings per Share

The Company calculates net loss per common share based on the weighted-average number of common shares outstanding during each period. Potential common stock equivalents are determined using the treasury stock method. The weighted-average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, RSUs and warrants. Common equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive.

Segments

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision maker when making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company’s chief operating decision maker reviews consolidated operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company views its operations and manages its business as one operating segment.

Information about the Company’s total revenues, based on shipment destination or services location, is presented in the following table:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  
     (In thousands)  

Revenue:

           

U.S.

   $ 11,038       $ 6,772       $ 21,722       $ 17,435   

International

     19,058         19,843         31,874         31,543   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 30,096       $ 26,615       $ 53,596       $ 48,978   
  

 

 

    

 

 

    

 

 

    

 

 

 

Recently Issued Accounting Standards

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Significant Accounting Policies (Tables)

The following table classifies the Company’s marketable securities by contractual maturities as of June 30, 2015:

 

     Fair Value  
     (In thousands)  

Due in one year or less

   $ 2,504   

Due in more than one year

     —    
  

 

 

 

Total marketable securities

   $ 2,504   
  

 

 

 

Information about the Company’s total revenues, based on shipment destination or services location, is presented in the following table:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  
     (In thousands)  

Revenue:

           

U.S.

   $ 11,038       $ 6,772       $ 21,722       $ 17,435   

International

     19,058         19,843         31,874         31,543   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 30,096       $ 26,615       $ 53,596       $ 48,978   
  

 

 

    

 

 

    

 

 

    

 

 

 

Fair Value Measurements (Tables)
Summary of Financial Assets Measured and Reported at Fair Value

The following table sets forth the manner, within the three-tiered fair value hierarchy, by which financial assets are measured and reported at fair value as of June 30, 2015:

 

            Fair Value Measurement at
Reporting Date Using
 
     June 30, 2015      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
 
     (In thousands)  

Marketable securities:

           

U.S. corporate bonds

   $ 1,004       $ 1,004       $ —         $ —     

Foreign corporate bonds

     1,500         1,500         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,504       $ 2,504       $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 
Inventories (Tables)
Schedule of Inventories

Inventories consist of the following:

 

     June 30,
2015
     December 31,
2014
 
     (In thousands)  

Raw materials

   $ 4,635       $ 4,052   

Finished goods

     1,440         845   
  

 

 

    

 

 

 

Total

   $ 6,075       $ 4,897   
  

 

 

    

 

 

 

Property, Plant and Equipment, Net (Tables)
Summary of Property, Plant and Equipment

Property, plant and equipment consist of the following:

 

     June 30,
2015
     December 31,
2014
     Useful
life
     (In thousands)

Construction in progress

   $ 1,422       $ 24,124       —  

Buildings

     23,849         16,303       30 years

Machinery and equipment

     103,452         78,378       3-10 years

Computer equipment and software

     6,752         5,556       3 years
  

 

 

    

 

 

    

Total

     135,475         124,361      

Accumulated depreciation and amortization

     (57,326 )      (52,869 )   
  

 

 

    

 

 

    

Property, plant and equipment, net

   $ 78,149       $ 71,492      
  

 

 

    

 

 

    
Accrued Expenses (Tables)
Schedule of Accrued Expenses

Accrued expenses consist of the following:

 

     June 30,
2015
     December 31,
2014
 
     (In thousands)  

Employee compensation

   $ 3,122       $ 4,851   

Professional fees

     135         76   

Deferred rent

     181         155   

Other accrued expenses

     643         506   
  

 

 

    

 

 

 

Total

   $ 4,081       $ 5,588   
  

 

 

    

 

 

 

Interest Expense (Tables)
Summary of Interest Expense

Interest expense consists of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
         2015          2014          2015          2014  
     (In thousands)  

Changes in fair value:

           

Subordinated Notes

   $ —        $ 748       $ —        $ 1,543   

Senior Convertible Notes

     —          7,838         —          11,373   

Convertible Notes, net of capitalization

     —          25,355         —          37,095   

Debt closing costs

     —          15         —          32   

Other interest

     45         71         90         135   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

   $ 45       $ 34,027       $ 90       $ 50,178   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Loss Per Share (Tables)

The computation of basic and diluted net loss attributable to common stockholders per share consists of the following:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2015     2014     2015     2014  
    

(In thousands, except

share and per share data)

 

Numerator:

        

Net loss attributable to common stockholders

   $ (2,743 )   $ (42,148 )   $ (5,532 )   $ (61,196 )
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted average shares outstanding, basic and diluted

     22,999,988        3,035,717        22,996,152        1,527,806   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders per common share, basic and diluted

   $ (0.12 )   $ (13.88 )   $ (0.24 )   $ (40.05 )
  

 

 

   

 

 

   

 

 

   

 

 

Potential dilutive common shares that were excluded from the computation of diluted net loss attributable to common stockholders per common share because they were anti-dilutive consist of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  

Common stock options

     1,298,931         96,999         1,298,931         96,999   

Restricted common stock units

     521,599         —           521,599         —     

Common stock warrants

     131         131        131         131  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,820,661         97,130         1,820,661         97,130   
  

 

 

    

 

 

    

 

 

    

 

 

 
Description of Business and Basis of Presentation - Additional Information (Detail) (USD $)
0 Months Ended 6 Months Ended
Jun. 18, 2014
Jun. 30, 2015
Subsidiary
Jun. 30, 2014
Basis Of Presentation [Line Items]
 
 
 
Number of Subsidiaries
 
 
Proceeds from initial public offering
 
 
$ 77,270,000 
Reverse stock split of capital stock
Prior to the closing of the offering, the Company completed a 1-for-824.7412544 
 
 
Convertible Preferred Stock [Member]
 
 
 
Basis Of Presentation [Line Items]
 
 
 
Common shares issued upon conversion of securities
115,982 
 
 
Convertible Debt Securities [Member]
 
 
 
Basis Of Presentation [Line Items]
 
 
 
Common shares issued upon conversion of securities
15,319,034 
 
 
IPO [Member]
 
 
 
Basis Of Presentation [Line Items]
 
 
 
Initial public offering, common stock shares
7,500,000 
 
 
Proceeds from initial public offering
74,700,000 
 
 
Underwriting discounts and commissions
4,300,000 
 
 
Other offering expenses
$ 3,500,000 
 
 
Significant Accounting Policies - Additional Information (Detail) (USD $)
6 Months Ended 0 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2015
Segment
Dec. 31, 2014
Jun. 18, 2014
Convertible Debt Securities [Member]
Jun. 30, 2015
Level 1 [Member]
Jan. 1, 2015
2014 Employee, Director and Consultant Equity Incentive Plan [Member]
Jun. 30, 2015
2014 Employee, Director and Consultant Equity Incentive Plan [Member]
Restricted Common Stock Units [Member]
Jun. 30, 2015
2014 Employee, Director and Consultant Equity Incentive Plan [Member]
Restricted Common Stock Units [Member]
Jun. 30, 2015
2014 Employee, Director and Consultant Equity Incentive Plan [Member]
Non-Qualified Stock Options [Member]
Jun. 30, 2015
2014 Employee, Director and Consultant Equity Incentive Plan [Member]
Non-Qualified Stock Options [Member]
Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
Marketable Securities
$ 2,504,000 
$ 0 
 
 
 
 
 
 
 
Description of impaired investment securities
The unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss). The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase to be cash equivalents, and investments with maturities of greater than 90 days at the time of purchase to be marketable securities. When a marketable security incurs a significant unrealized loss for a sustained period of time, the Company will review the instrument to determine if it is other-than-temporarily impaired. If it is determined that an instrument is other-than-temporarily impaired, the Company will record the unrealized loss in the consolidated statement of operations. 
 
 
 
 
 
 
 
 
Common shares issued upon conversion of securities
 
 
15,319,034 
 
 
 
 
 
 
Available for sale securities
 
 
 
$ 2,500,000 
 
 
 
 
 
Issue of stock-based awards
 
 
 
 
 
54,005 
219,944 
 
 
Shares issued for 2014 Equity Plan
 
 
 
 
 
 
 
71,596 
231,223 
Increased number of shares available for grant
 
 
 
 
3,698,257 
 
 
 
 
Stock-based award vesting period
 
 
 
 
 
1 year 
3 years 
1 year 
3 years 
Number of segment
 
 
 
 
 
 
 
 
Significant Accounting Policies - Schedule of Marketable Securities by Contractual Maturities (Detail) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract]
 
 
Due in one year or less
$ 2,504,000 
 
Due in more than one year
 
Total marketable securities
$ 2,504,000 
$ 0 
Significant Accounting Policies - Schedule of Total Revenues, Based on Shipment Destination or Services Location (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
$ 30,096 
$ 26,615 
$ 53,596 
$ 48,978 
U.S. [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
11,038 
6,772 
21,722 
17,435 
International [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
$ 19,058 
$ 19,843 
$ 31,874 
$ 31,543 
Fair Value Measurements - Summary of Financial Assets Measured and Reported at Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
$ 2,504 
U.S. Corporate Bonds [Member]
 
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
1,004 
Foreign Corporate Bonds [Member]
 
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
1,500 
Level 1 [Member]
 
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
2,504 
Level 1 [Member] |
U.S. Corporate Bonds [Member]
 
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
1,004 
Level 1 [Member] |
Foreign Corporate Bonds [Member]
 
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
 
Total marketable securities
$ 1,500 
Inventories - Schedule of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 4,635 
$ 4,052 
Finished goods
1,440 
845 
Total
$ 6,075 
$ 4,897 
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 135,475 
$ 124,361 
Accumulated depreciation and amortization
(57,326)
(52,869)
Property, plant and equipment, net
78,149 
71,492 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
23,849 
16,303 
Property, plant and equipment, Useful life
30 years 
 
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
103,452 
78,378 
Computer Equipment and Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,752 
5,556 
Property, plant and equipment, Useful life
3 years 
 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 1,422 
$ 24,124 
Minimum [Member] |
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, Useful life
3 years 
 
Maximum [Member] |
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, Useful life
10 years 
 
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Mar. 31, 2015
East Providence, Rhode Island [Member]
Jun. 30, 2015
Construction in Progress [Member]
Dec. 31, 2014
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Depreciation expense
$ 4,700,000 
$ 5,100,000 
 
 
 
 
Property, plant and equipment, gross
$ 135,475,000 
 
$ 124,361,000 
$ 31,800,000 
$ 1,422,000 
$ 24,124,000 
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Accrued Liabilities, Current [Abstract]
 
 
Employee compensation
$ 3,122 
$ 4,851 
Professional fees
135 
76 
Deferred rent
181 
155 
Other accrued expenses
643 
506 
Total
$ 4,081 
$ 5,588 
Interest Expense - Summary of Interest Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Interest Income (Expense) [Line Items]
 
 
 
 
Debt closing costs
 
$ 15 
 
$ 32 
Other interest
45 
71 
90 
135 
Total interest expense
45 
34,027 
90 
50,178 
Subordinated Notes [Member]
 
 
 
 
Interest Income (Expense) [Line Items]
 
 
 
 
Changes in fair value
 
748 
 
1,543 
Senior Convertible Notes [Member]
 
 
 
 
Interest Income (Expense) [Line Items]
 
 
 
 
Changes in fair value
 
7,838 
 
11,373 
Convertible Notes, Net of Capitalization [Member]
 
 
 
 
Interest Income (Expense) [Line Items]
 
 
 
 
Changes in fair value
 
$ 25,355 
 
$ 37,095 
Interest Expense - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 20, 2014
Jun. 18, 2014
Senior Convertible Notes [Member]
Jun. 18, 2014
Convertible Notes, Net of Capitalization [Member]
Debt Instrument [Line Items]
 
 
 
Fair value of Subordinated Notes
$ 18.8 
 
 
Aggregate fair value of convertible notes
 
$ 39.5 
$ 129.0 
Revolving Line of Credit - Additional Information (Detail) (USD $)
0 Months Ended 0 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2015
Silicon Valley Bank Credit Facility [Member]
Dec. 31, 2014
Silicon Valley Bank Credit Facility [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Maximum [Member]
Prime Rate [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Maximum [Member]
LIBOR Rate [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Minimum [Member]
Prime Rate [Member]
Sep. 3, 2014
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Minimum [Member]
LIBOR Rate [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
Line of credit agreement, extended maturity date
 
 
 
 
Aug. 31, 2016 
 
 
 
 
 
Maximum increased borrowing amount
 
 
 
 
 
$ 20,000,000 
 
 
 
 
Additional interest rate per annum
 
 
 
 
 
 
1.75% 
4.25% 
0.75% 
3.75% 
Maximum borrowing amount
 
 
 
 
 
10,000,000 
 
 
 
 
Interest rate description
 
 
 
 
The interest rate applicable to borrowings under the revolving credit facility may be based on the prime rate or LIBOR. Prime rate-based rates vary from prime rate plus 0.75% per annum to prime rate plus 1.75% per annum, while LIBOR-based rates vary from LIBOR plus 3.75% per annum to LIBOR plus 4.25% per annum. 
 
 
 
 
 
Percentage of unused revolving line facility fee
 
 
 
 
0.50% 
 
 
 
 
 
Line of credit facility amount withdrawn
 
 
 
 
 
 
 
 
Letters of credit outstanding
1,800,000 
1,400,000 
1,800,000 
1,400,000 
 
 
 
 
 
 
Line of credit facility borrowing capacity
 
 
$ 12,800,000 
 
 
 
 
 
 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
 
 
Letters of credit outstanding
$ 1.8 
$ 1.4 
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Numerator:
 
 
 
 
Net loss attributable to common stockholders
$ (2,743)
$ (42,148)
$ (5,532)
$ (61,196)
Denominator:
 
 
 
 
Weighted average shares outstanding, basic and diluted
22,999,988 
3,035,717 
22,996,152 
1,527,806 
Net loss attributable to common stockholders per common share, basic and diluted
$ (0.12)
$ (13.88)
$ (0.24)
$ (40.05)
Net Loss Per Share - Summary of Potential Dilutive Common Shares Excluded from Computation of Diluted Net Loss Attributable to Common Stockholders Per Common Share (Detail)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
1,820,661 
97,130 
1,820,661 
97,130 
Common Stock Options [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
1,298,931 
96,999 
1,298,931 
96,999 
Restricted Common Stock Units [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
521,599 
 
521,599 
 
Common Stock Warrants [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
131 
131 
131 
131