ASPEN AEROGELS INC, 10-Q filed on 8/5/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2016
Jul. 31, 2016
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
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
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
23,308,914 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 19,737 
$ 32,804 
Accounts receivable, net of allowances of $114 and $89, respectively
24,734 
20,624 
Inventories
11,788 
6,532 
Prepaid expenses and other current assets
1,635 
1,687 
Total current assets
57,894 
61,647 
Property, plant and equipment, net
81,146 
78,322 
Other assets
147 
105 
Total assets
139,187 
140,074 
Current liabilities:
 
 
Capital leases, current portion
47 
67 
Accounts payable
12,208 
10,684 
Accrued expenses
4,114 
5,568 
Deferred revenue
449 
681 
Other current liabilities
 
409 
Total current liabilities
16,818 
17,409 
Capital leases, excluding current portion
17 
40 
Other long-term liabilities
341 
151 
Total liabilities
17,176 
17,600 
Commitments and contingencies (Note 6)
   
   
Stockholders' equity:
 
 
Preferred stock, $0.00001 par value; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2016 and December 31, 2015
   
   
Common stock, $0.00001 par value; 125,000,000 shares authorized, 23,308,914 and 23,184,852 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively
Additional paid-in capital
530,696 
527,975 
Accumulated deficit
(408,685)
(405,501)
Total stockholders' equity
122,011 
122,474 
Total liabilities and stockholders' equity
$ 139,187 
$ 140,074 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 114 
$ 89 
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
23,308,914 
23,184,852 
Common stock, shares outstanding
23,308,914 
23,184,852 
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Revenue:
 
 
 
 
Product
$ 27,123 
$ 29,755 
$ 59,409 
$ 52,966 
Research services
595 
341 
1,130 
630 
Total revenue
27,718 
30,096 
60,539 
53,596 
Cost of revenue:
 
 
 
 
Product
20,723 
24,814 
46,715 
43,659 
Research services
342 
173 
644 
313 
Gross profit
6,653 
5,109 
13,180 
9,624 
Operating expenses:
 
 
 
 
Research and development
1,286 
1,551 
2,596 
2,855 
Sales and marketing
2,821 
2,722 
5,883 
5,054 
General and administrative
3,894 
3,534 
7,807 
7,157 
Total operating expenses
8,001 
7,807 
16,286 
15,066 
Loss from operations
(1,348)
(2,698)
(3,106)
(5,442)
Interest expense, net
(39)
(45)
(78)
(90)
Total interest expense, net
(39)
(45)
(78)
(90)
Net loss
$ (1,387)
$ (2,743)
$ (3,184)
$ (5,532)
Net loss per share:
 
 
 
 
Basic
$ (0.06)
$ (0.12)
$ (0.14)
$ (0.24)
Diluted
$ (0.06)
$ (0.12)
$ (0.14)
$ (0.24)
Weighted-average common shares outstanding:
 
 
 
 
Basic and diluted
23,111,127 
22,999,988 
23,087,299 
22,996,152 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:
 
 
Net loss
$ (3,184)
$ (5,532)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
Depreciation and amortization
4,826 
4,759 
Stock compensation expense
2,803 
2,699 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(4,110)
(2,033)
Inventories
(5,256)
(1,178)
Prepaid expenses and other assets
(45)
(1,267)
Accounts payable
1,459 
1,177 
Accrued expenses
(1,475)
(1,507)
Deferred revenue
(232)
2,239 
Net cash used in operating activities
(5,214)
(643)
Cash flows from investing activities:
 
 
Capital expenditures
(7,728)
(16,959)
Purchases of marketable securities
 
(2,504)
Net cash used in investing activities
(7,728)
(19,463)
Cash flows from financing activities:
 
 
Repayment of obligations under capital lease
(43)
(38)
Payments made for employee restricted stock tax withholdings
(82)
 
Net cash used in financing activities
(125)
(38)
Net decrease in cash
(13,067)
(20,144)
Cash at beginning of period
32,804 
49,719 
Cash at end of period
19,737 
29,575 
Supplemental disclosures of cash flow information:
 
 
Interest paid
105 
99 
Income taxes paid
Supplemental disclosures of non-cash activities:
 
 
Changes in accrued capital expenditures
(95)
(5,588)
Settlement of asset retirement obligation
$ 241 
 
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.

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 our Annual Report on Form 10-K for the year ended December 31, 2015 (the Annual Report), filed with the Securities and Exchange Commission on March 4, 2016.

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, 2016 and the results of its operations for the three and six months ended June 30, 2016 and 2015 and the cash flows for the six month periods 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, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 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, product warranty costs, inventory valuation, the carrying amount of property and equipment, 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.

Deferred Revenue

The Company records deferred revenue for product sales when (i) the Company has delivered products but other revenue recognition criteria have not been satisfied, (ii) payments have been received in advance of products being delivered or (iii) amounts are billed in accordance with contractual terms in advance of products being delivered.

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. The fair value of awards containing market conditions is determined using a Monte Carlo simulation model based upon the terms of the conditions, the expected volatility of the underlying security, and other relevant factors.

During the six months ended June 30, 2016, the Company granted 75,152 shares of restricted common stock and non-qualified stock options (NSOs) to purchase 103,593 shares of common stock with a fair value of $0.4 million and $0.2 million, respectively, vesting over a period of one year to its non-employee directors under the 2014 Employee, Director and Consultant Equity Incentive Plan (the 2014 Equity Plan). During the six months ended June 30, 2016, the Company granted 420,284 restricted common stock units (RSUs) and NSOs to purchase 259,469 shares of common stock to employees under the 2014 Equity Plan. The employee RSUs and NSOs will vest over a three year period. Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2016      2015      2016      2015  
     (In thousands)  

Cost of product revenue

   $ 199       $ 191       $ 391       $ 406   

Research and development expenses

     148         215         288         363   

Sales and marketing expenses

     277         256         538         486   

General and administrative expenses

     809         742         1,586         1,444   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 1,433       $ 1,404       $ 2,803       $ 2,699   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pursuant to the “evergreen” provisions of the 2014 Equity Plan, the number of shares of common stock authorized for issuance under the plan automatically increased by 463,697 shares to 6,069,201 shares effective January 1, 2016.

As of June 30, 2016, 2,721,549 shares of common stock were reserved for issuance upon the exercise or vesting, as appropriate, of outstanding stock-based awards granted under the 2014 Equity Plan. In addition, as of June 30, 2016, 93,065 shares of common stock were reserved for issuance upon the exercise of outstanding stock options granted under the Company’s 2001 Equity Incentive Plan, as amended (the 2001 Equity Plan). Any cancellations or forfeitures of the options outstanding under the 2001 Equity Plan will result in the shares reserved for issuance upon exercise of such options becoming available for grant under the 2014 Equity Plan. As of June 30, 2016, there were 2,834,521 shares of common stock available for grant under the 2014 Equity Plan.

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 separate, discrete financial information is available for evaluation by the chief operating decision maker in 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,
 
     2016      2015      2016      2015  
     (In thousands)  

Revenue:

           

U.S.

   $ 10,208       $ 11,038       $ 21,621       $ 21,722   

International

     17,510         19,058         38,918         31,874   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 27,718       $ 30,096       $ 60,539       $ 53,596   
  

 

 

    

 

 

    

 

 

    

 

 

 

Warranty Costs

The Company provides warranties for its products and records the estimated cost within cost of sales in the period that the related revenue is recorded. The Company’s standard warranty period extends to one year from the date of shipment. The standard warranties provide that the Company’s products will be free from defects in material and workmanship, and will, under normal use, conform to the specifications for the product. Historically, warranty claims and charges have been insignificant.

The Company’s products may be utilized in systems that may involve new technical demands and new configurations. As such, the Company will continue to regularly review and assess whether warranty reserves shall be recorded in the period the related revenue is recorded. For initial shipments of products where the Company is unsure of meeting the customer’s specifications, the Company will defer the recognition of product revenue and related costs until written customer acceptance is obtained.

For the six months ended June 30, 2016, the Company recorded warranty reserves totaling $0.5 million as a component of accrued expenses. These specific reserves principally relate to product warranty claims for a specific project. These claims are outside of the Company’s typical experience.

Additionally, during the three months ended June 30, 2016 a customer notified the Company of a specific product application issue. The customer continues to request and receive shipment of additional aerogel product and no claim has been made. The Company cannot be certain that it will not be subject to an additional warranty claim.

Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The amendment is to simplify several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, the amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (FASB ASU 2016-02). FASB ASU 2016-02 changes the accounting for leases and includes a requirement to record all leases on the consolidated balance sheets as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018. Early application is permitted. The Company has not yet selected a transition method and is evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures.

In August 2015, the FASB issued a deferral of ASU 2014-09, Revenue from Contracts with Customers. The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. As a result of the deferral, public entities are required to apply the revenue recognition standard for the annual reporting period beginning on or after December 15, 2017, including interim periods within that annual reporting period. Early application is not permitted. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), which, for entities that do not measure inventory using the last-in, first-out (LIFO) or retail inventory method, changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The ASU also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. Public entities are required to apply the standards for fiscal years beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted as of the beginning of an interim or annual period. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on its consolidated financial statements and disclosures.

Inventories
Inventories

(3) Inventories

Inventories consist of the following:

 

     June 30,
2016
     December 31,
2015
 
     (In thousands)  

Raw materials

   $ 4,022       $ 4,432   

Finished goods

     7,766         2,100   
  

 

 

    

 

 

 

Total

   $ 11,788       $ 6,532   
  

 

 

    

 

 

 

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

(4) Property, Plant and Equipment, Net

Property, plant and equipment consist of the following:

 

     June 30,
2016
     December 31,
2015
     Useful
life
 
     (In thousands)         

Construction in progress

   $ 11,675       $ 5,138         —     

Buildings

     23,885         23,884         30 years   

Machinery and equipment

     105,347         104,658         3-10 years   

Computer equipment and software

     7,221         6,888         3 years   
  

 

 

    

 

 

    

Total

     148,128         140,568      

Accumulated depreciation

     (66,982      (62,246   
  

 

 

    

 

 

    

Property, plant and equipment, net

   $ 81,146       $ 78,322      
  

 

 

    

 

 

    

Depreciation expense was $4.8 million and $4.7 million for the six months ended June 30, 2016 and 2015, respectively.

Construction in progress totaled $11.7 million and $5.1 million at June 30, 2016 and December 31, 2015, respectively, which included engineering designs and other pre-construction costs for the planned manufacturing facility in Statesboro, Georgia of $5.8 million and $2.3 million at June 30, 2016 and December 31, 2015, respectively.

Accrued Expenses
Accrued Expenses

(5) Accrued Expenses

Accrued expenses consist of the following:

 

     June 30,
2016
     December 31,
2015
 
     (In thousands)  

Employee compensation

   $ 2,594       $ 4,184   

Other accrued expenses

     1,520         1,384   
  

 

 

    

 

 

 

Total

   $ 4,114       $ 5,568   
  

 

 

    

 

 

 
Commitments and Contingencies
Commitments and Contingencies

(6) Commitments and Contingencies

Customer Supply Agreement

On June 21, 2016, the Company entered into a supply agreement and a side agreement (together, the supply agreement) and a joint development agreement with BASF SE (BASF). Pursuant to the supply agreement, the Company will sell exclusively to BASF the Company’s Spaceloft® A2 product at annual volumes to be specified by BASF, subject to certain volume limits. The supply agreement will terminate on December 31, 2027, if not renewed prior to such date. Upon expiration of the supply agreement, the Company will be subject to a post-termination supply commitment for an additional two years. The joint development agreement is designed to facilitate the collaboration between the parties on the development and commercialization of new products.

In addition, BASF will make a non-interest bearing prepayment to the Company in the aggregate amount of $22 million during the construction of the planned manufacturing facility in Statesboro, Georgia (Plant Two), subject to the Company’s prior satisfaction of certain preconditions. BASF shall pay the prepayment to the Company in eight equal consecutive quarterly installments commencing on the later of (i) October 1, 2016 or (ii) the first day of the calendar quarter following the date on which the Plant Two progress preconditions are met. Once commenced, BASF’s obligation to make such quarterly payments shall be subject to postponement in the event of delays of three months or more in the projected date of completion of Plant Two by a commensurate number of months. Quarterly prepayments of $2,750,000 are expected to begin October 1, 2016. BASF will also provide technical support targeting manufacturing productivity, product cost and profit margins.

After October 1, 2018, the Company will, at BASF’s instruction, credit up to 25.3% of any amounts invoiced by the Company for Spaceloft® A2 product sold to BASF against the prepayment balance. However, BASF has no obligation to purchase products under the supply agreement. If any of the prepayment remains uncredited against amounts invoiced by the Company as of September 30, 2023, BASF may request that the Company repay the uncredited amount to BASF in four equal quarterly installments beginning on December 31, 2023. The repayment obligation will be secured by a security interest in real estate, plant and equipment at the Company’s Rhode Island and Georgia manufacturing facilities.

Asset Retirement Obligation

As of December 31, 2015, the Company had asset retirement obligations (ARO) arising from requirements to perform certain asset retirement activities upon the termination of its Northborough, Massachusetts facility lease and upon disposal of certain machinery and equipment.

During the six months ended June 30, 2016, the Company incurred approximately $0.2 million in expenditures in support of completing the restoration of 31,577 square feet of space formerly utilized for manufacturing operations in the Northborough, Massachusetts facility. This manufacturing space was vacated and returned to the landlord on July 1, 2016.

On June 29, 2016, the Company executed an agreement to remain at the Northborough, Massachusetts facility through December 31, 2026. As part of the new agreement, the Company’s obligation to restore the remaining space in the Northborough facility was eliminated. The settlement of the remaining reserve balance of approximately $0.2 million was reclassified to other liabilities and will be amortized as a reduction to rent expense over the term of the new lease agreement.

 

     Six months
ended
 
     June 30, 2016  
     (In thousands)  

Balance at beginning of period

   $ 397   

Expenditures

     (156

Settlement of asset retirement obligation

     (241
  

 

 

 

Balance at end of period

   $ —     
  

 

 

 

Revolving Line of Credit

The Company maintains a revolving credit facility with Silicon Valley Bank which expires on August 31, 2016. The Company may borrow up to $20 million under the facility subject to compliance with certain covenants and borrowing base limitations. 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, 2016 and December 31, 2015, 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 $2.6 million and $2.7 million at June 30, 2016 and December 31, 2015, respectively, which reduce the funds otherwise available to the Company under the facility. Based on the available borrowing base, the effective amount available to the Company under the revolving credit facility at June 30, 2016 was $12.3 million after consideration of the $2.6 million of outstanding letters of credit. 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, 2016, the Company was in compliance with all such financial covenants.

Letters of Credit

Pursuant to the terms of its existing Northborough, Massachusetts facility lease, the Company has been required to provide the landlord 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 $2.6 million and $2.7 million at June 30, 2016 and December 31, 2015, respectively. These letters of credit are secured by the Company’s revolving credit facility.

Litigation

The Company is, from time to time, a party to litigation that arises in the normal course of its business operations. See Part II, Item 1 (“Legal Proceedings”) of this Quarterly Report on Form 10-Q for a description of certain of the Company’s current legal proceedings. 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.

Operating Leases

On June 29, 2016, the Company entered into a new lease agreement with Cabot II- MA1M03, LLC (Cabot Properties) to lease approximately 51,650 square feet of office space located in Northborough, MA, the location of the Company’s current headquarters. The new lease supersedes the existing lease between the Company and Cabot Properties. The lease term will commence on January 1, 2017 and cease on December 31, 2026. The annual base rent associated with the lease will be approximately $408,000 during the first year, and increase by approximately 3% annually for the term of the lease. The lease also provides for the payment by the Company of its pro rata share of real estate taxes and certain other expenses. Upon expiration of the lease term, the Company will have the right to extend the lease for an additional term of three years.

The new lease contains provisions for Cabot Properties to provide the Company with an allowance of up to $1.2 million to be utilized for the construction of improvements of the leased premises. The Company will account for these improvements in accordance with its capitalization policy. As reimbursements for certain improvements become due from Cabot Properties, the Company will account for the reimbursements as a lease obligation incentive. In addition, the new lease eliminated the Company’s obligation under the existing lease to restore a portion of the office space. This obligation was previously classified as an asset retirement obligation and the settlement of the remaining reserve balance of approximately $0.2 million was reclassified to other liabilities. These amounts will be recorded as a component of deferred rent in determining the minimum lease payments for the property.

 

Net Loss Per Share
Net Loss Per Share

(7) Net Loss Per Share

The computation of basic and diluted net loss per share consists of the following:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2016     2015     2016     2015  
     (In thousands, except share and per share data)  

Numerator:

        

Net loss

   $ (1,387   $ (2,743   $ (3,184   $ (5,532
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted average shares outstanding, basic and diluted

     23,111,127        22,999,988        23,087,299        22,996,152   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.06   $ (0.12   $ (0.14   $ (0.24
  

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2016      2015      2016      2015  

Common stock options

     2,055,398         1,298,931         2,055,398         1,298,931   

Restricted common stock units

     759,230         521,599         759,230         521,599   

Common stock warrants

     115         131         115         131   

Restricted common stock awards

     153,277         54,005         153,277         54,005   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,968,020         1,874,666         2,968,020         1,874,666   
  

 

 

    

 

 

    

 

 

    

 

 

 

In the table above, anti-dilutive shares consist of those common stock equivalents that have (i) an exercise price above the average stock price for the period or (ii) related average unrecognized stock compensation expense sufficient to buy-back the entire amount of shares. The Company excludes the shares issued in connection with restricted stock awards from the calculation of basic weighted average common shares outstanding until the restrictions lapse.

Income Taxes
Income Taxes

(8) 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.

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 our Annual Report on Form 10-K for the year ended December 31, 2015 (the Annual Report), filed with the Securities and Exchange Commission on March 4, 2016.

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, 2016 and the results of its operations for the three and six months ended June 30, 2016 and 2015 and the cash flows for the six month periods 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, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 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, product warranty costs, inventory valuation, the carrying amount of property and equipment, 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.

Deferred Revenue

The Company records deferred revenue for product sales when (i) the Company has delivered products but other revenue recognition criteria have not been satisfied, (ii) payments have been received in advance of products being delivered or (iii) amounts are billed in accordance with contractual terms in advance of products being delivered.

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. The fair value of awards containing market conditions is determined using a Monte Carlo simulation model based upon the terms of the conditions, the expected volatility of the underlying security, and other relevant factors.

During the six months ended June 30, 2016, the Company granted 75,152 shares of restricted common stock and non-qualified stock options (NSOs) to purchase 103,593 shares of common stock with a fair value of $0.4 million and $0.2 million, respectively, vesting over a period of one year to its non-employee directors under the 2014 Employee, Director and Consultant Equity Incentive Plan (the 2014 Equity Plan). During the six months ended June 30, 2016, the Company granted 420,284 restricted common stock units (RSUs) and NSOs to purchase 259,469 shares of common stock to employees under the 2014 Equity Plan. The employee RSUs and NSOs will vest over a three year period. Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2016      2015      2016      2015  
     (In thousands)  

Cost of product revenue

   $ 199       $ 191       $ 391       $ 406   

Research and development expenses

     148         215         288         363   

Sales and marketing expenses

     277         256         538         486   

General and administrative expenses

     809         742         1,586         1,444   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 1,433       $ 1,404       $ 2,803       $ 2,699   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pursuant to the “evergreen” provisions of the 2014 Equity Plan, the number of shares of common stock authorized for issuance under the plan automatically increased by 463,697 shares to 6,069,201 shares effective January 1, 2016.

As of June 30, 2016, 2,721,549 shares of common stock were reserved for issuance upon the exercise or vesting, as appropriate, of outstanding stock-based awards granted under the 2014 Equity Plan. In addition, as of June 30, 2016, 93,065 shares of common stock were reserved for issuance upon the exercise of outstanding stock options granted under the Company’s 2001 Equity Incentive Plan, as amended (the 2001 Equity Plan). Any cancellations or forfeitures of the options outstanding under the 2001 Equity Plan will result in the shares reserved for issuance upon exercise of such options becoming available for grant under the 2014 Equity Plan. As of June 30, 2016, there were 2,834,521 shares of common stock available for grant under the 2014 Equity Plan.

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 separate, discrete financial information is available for evaluation by the chief operating decision maker in 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,
 
     2016      2015      2016      2015  
     (In thousands)  

Revenue:

           

U.S.

   $ 10,208       $ 11,038       $ 21,621       $ 21,722   

International

     17,510         19,058         38,918         31,874   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 27,718       $ 30,096       $ 60,539       $ 53,596   
  

 

 

    

 

 

    

 

 

    

 

 

 

Warranty Costs

The Company provides warranties for its products and records the estimated cost within cost of sales in the period that the related revenue is recorded. The Company’s standard warranty period extends to one year from the date of shipment. The standard warranties provide that the Company’s products will be free from defects in material and workmanship, and will, under normal use, conform to the specifications for the product. Historically, warranty claims and charges have been insignificant.

The Company’s products may be utilized in systems that may involve new technical demands and new configurations. As such, the Company will continue to regularly review and assess whether warranty reserves shall be recorded in the period the related revenue is recorded. For initial shipments of products where the Company is unsure of meeting the customer’s specifications, the Company will defer the recognition of product revenue and related costs until written customer acceptance is obtained.

For the six months ended June 30, 2016, the Company recorded warranty reserves totaling $0.5 million as a component of accrued expenses. These specific reserves principally relate to product warranty claims for a specific project. These claims are outside of the Company’s typical experience.

Additionally, during the three months ended June 30, 2016 a customer notified the Company of a specific product application issue. The customer continues to request and receive shipment of additional aerogel product and no claim has been made. The Company cannot be certain that it will not be subject to an additional warranty claim.

Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The amendment is to simplify several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, the amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-09 on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (FASB ASU 2016-02). FASB ASU 2016-02 changes the accounting for leases and includes a requirement to record all leases on the consolidated balance sheets as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018. Early application is permitted. The Company has not yet selected a transition method and is evaluating the effect the updated standard will have on its consolidated financial statements and related disclosures.

In August 2015, the FASB issued a deferral of ASU 2014-09, Revenue from Contracts with Customers. The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. As a result of the deferral, public entities are required to apply the revenue recognition standard for the annual reporting period beginning on or after December 15, 2017, including interim periods within that annual reporting period. Early application is not permitted. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), which, for entities that do not measure inventory using the last-in, first-out (LIFO) or retail inventory method, changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The ASU also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. Public entities are required to apply the standards for fiscal years beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted as of the beginning of an interim or annual period. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on its consolidated financial statements and disclosures.

Significant Accounting Policies (Tables)

Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following:

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2016      2015      2016      2015  
     (In thousands)  

Cost of product revenue

   $ 199       $ 191       $ 391       $ 406   

Research and development expenses

     148         215         288         363   

Sales and marketing expenses

     277         256         538         486   

General and administrative expenses

     809         742         1,586         1,444   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 1,433       $ 1,404       $ 2,803       $ 2,699   
  

 

 

    

 

 

    

 

 

    

 

 

 

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,
 
     2016      2015      2016      2015  
     (In thousands)  

Revenue:

           

U.S.

   $ 10,208       $ 11,038       $ 21,621       $ 21,722   

International

     17,510         19,058         38,918         31,874   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 27,718       $ 30,096       $ 60,539       $ 53,596   
  

 

 

    

 

 

    

 

 

    

 

 

 

Inventories (Tables)
Schedule of Inventories

Inventories consist of the following:

 

     June 30,
2016
     December 31,
2015
 
     (In thousands)  

Raw materials

   $ 4,022       $ 4,432   

Finished goods

     7,766         2,100   
  

 

 

    

 

 

 

Total

   $ 11,788       $ 6,532   
  

 

 

    

 

 

 

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

Property, plant and equipment consist of the following:

 

     June 30,
2016
     December 31,
2015
     Useful
life
 
     (In thousands)         

Construction in progress

   $ 11,675       $ 5,138         —     

Buildings

     23,885         23,884         30 years   

Machinery and equipment

     105,347         104,658         3-10 years   

Computer equipment and software

     7,221         6,888         3 years   
  

 

 

    

 

 

    

Total

     148,128         140,568      

Accumulated depreciation

     (66,982      (62,246   
  

 

 

    

 

 

    

Property, plant and equipment, net

   $ 81,146       $ 78,322   
Accrued Expenses (Tables)
Schedule of Accrued Expenses

Accrued expenses consist of the following:

 

     June 30,
2016
     December 31,
2015
 
     (In thousands)  

Employee compensation

   $ 2,594       $ 4,184   

Other accrued expenses

     1,520         1,384   
  

 

 

    

 

 

 

Total

   $ 4,114       $ 5,568   
  

 

 

    

 

 

 
Commitments and Contingencies (Tables)
Summary of ARO Activity


     Six months
ended
 
     June 30, 2016  
     (In thousands)  

Balance at beginning of period

   $ 397   

Expenditures

     (156

Settlement of asset retirement obligation

     (241
  

 

 

 

Balance at end of period

   $ —     
  

 

 

 

Net Loss Per Share (Tables)

The computation of basic and diluted net loss per share consists of the following:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2016     2015     2016     2015  
     (In thousands, except share and per share data)  

Numerator:

        

Net loss

   $ (1,387   $ (2,743   $ (3,184   $ (5,532
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted average shares outstanding, basic and diluted

     23,111,127        22,999,988        23,087,299        22,996,152   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.06   $ (0.12   $ (0.14   $ (0.24
  

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2016      2015      2016      2015  

Common stock options

     2,055,398         1,298,931         2,055,398         1,298,931   

Restricted common stock units

     759,230         521,599         759,230         521,599   

Common stock warrants

     115         131         115         131   

Restricted common stock awards

     153,277         54,005         153,277         54,005   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,968,020         1,874,666         2,968,020         1,874,666   
  

 

 

    

 

 

    

 

 

    

 

 

 
Description of Business and Basis of Presentation - Additional Information (Detail)
6 Months Ended
Jun. 30, 2016
Subsidiary
Regulatory Assets [Abstract]
 
Number of Subsidiaries
Significant Accounting Policies - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2016
Segment
Jan. 1, 2016
2014 Equity Plan [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Jan. 1, 2016
2014 Equity Plan [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Non-Employee Directors [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Restricted Stock Units [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Non-Qualified Stock Options [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Non-Qualified Stock Options [Member]
Non-Employee Directors [Member]
Jun. 30, 2016
2014 Equity Plan [Member]
Restricted Common Stock [Member]
Non-Employee Directors [Member]
Jun. 30, 2016
2001 Equity Incentive Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
Stock-based awards granted
 
 
 
 
 
420,284 
 
 
75,152 
 
Stock-based awards granted to purchase common stock
 
 
 
 
 
 
259,469 
103,593 
 
 
Stock-based award fair value
 
 
 
 
 
 
 
$ 0.2 
$ 0.4 
 
Stock-based award vesting period
 
 
 
 
1 year 
3 years 
3 years 
 
 
 
Authorized number of shares increased by
 
463,697 
 
 
 
 
 
 
 
 
Increased number of shares available for grant
 
 
2,834,521 
6,069,201 
 
 
 
 
 
 
Shares reserved for issuance
 
 
2,721,549 
 
 
 
 
 
 
93,065 
Number of segment
 
 
 
 
 
 
 
 
 
Warranty reserves
$ 0.5 
 
 
 
 
 
 
 
 
 
Significant Accounting Policies - Summary of Stock Based Compensation Included in Cost of Sales or Operating Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation
$ 1,433 
$ 1,404 
$ 2,803 
$ 2,699 
Cost of Product Revenue [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation
199 
191 
391 
406 
Research and Development Expenses [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation
148 
215 
288 
363 
Sales and Marketing Expenses [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation
277 
256 
538 
486 
General and Administrative Expenses [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Total stock-based compensation
$ 809 
$ 742 
$ 1,586 
$ 1,444 
Significant Accounting Policies - Schedule of Total Revenues, Based on Shipment Destination or Research Services Location (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
$ 27,718 
$ 30,096 
$ 60,539 
$ 53,596 
U.S. [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
10,208 
11,038 
21,621 
21,722 
International [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
$ 17,510 
$ 19,058 
$ 38,918 
$ 31,874 
Inventories - Schedule of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 4,022 
$ 4,432 
Finished goods
7,766 
2,100 
Total
$ 11,788 
$ 6,532 
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 148,128 
$ 140,568 
Accumulated depreciation
(66,982)
(62,246)
Property, plant and equipment, net
81,146 
78,322 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
23,885 
23,884 
Property, plant and equipment, Useful life
30 years 
 
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
105,347 
104,658 
Computer Equipment and Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
7,221 
6,888 
Property, plant and equipment, Useful life
3 years 
 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 11,675 
$ 5,138 
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, 2016
Jun. 30, 2015
Dec. 31, 2015
Property, Plant and Equipment [Line Items]
 
 
 
Depreciation expense
$ 4,800,000 
$ 4,700,000 
 
Property, plant and equipment, gross
148,128,000 
 
140,568,000 
Construction in Progress [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, plant and equipment, gross
11,675,000 
 
5,138,000 
Statesboro, Georgia [Member] |
Construction in Progress [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, plant and equipment, gross
$ 5,800,000 
 
$ 2,300,000 
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Accrued Liabilities, Current [Abstract]
 
 
Employee compensation
$ 2,594 
$ 4,184 
Other accrued expenses
1,520 
1,384 
Total
$ 4,114 
$ 5,568 
Commitments and Contingencies - Additional Information (Detail) (USD $)
6 Months Ended 0 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2016
sqft
Jun. 29, 2016
Cabot II- MA1M03, LLC [Member]
New Lease Agreement [Member]
Jun. 29, 2016
Cabot II- MA1M03, LLC [Member]
New Lease Agreement [Member]
sqft
Jun. 30, 2016
Supply and Joint Development Agreement [Member]
BASF [Member]
Installment
Jun. 30, 2016
Supply and Joint Development Agreement [Member]
BASF [Member]
Maximum [Member]
Jun. 30, 2016
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Dec. 31, 2015
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Jun. 30, 2016
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Minimum [Member]
Prime Rate [Member]
Jun. 30, 2016
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Minimum [Member]
LIBOR Rate [Member]
Jun. 30, 2016
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Maximum [Member]
Prime Rate [Member]
Jun. 30, 2016
Silicon Valley Bank Credit Facility [Member]
Revolving Credit Facility [Member]
Maximum [Member]
LIBOR Rate [Member]
Commitments And Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Supply agreement termination date
 
 
 
Dec. 31, 2027 
 
 
 
 
 
 
 
Non-interest bearing prepayment, aggregate amount
 
 
 
$ 22,000,000 
 
 
 
 
 
 
 
Number of quarterly installments
 
 
 
 
 
 
 
 
 
 
Quarterly payment
 
 
 
2,750,000 
 
 
 
 
 
 
 
Credit limit percentage on prepayment balance
 
 
 
 
25.30% 
 
 
 
 
 
 
Number of square feet for lease
31,577 
 
51,650 
 
 
 
 
 
 
 
 
Expenditures
241,000 
 
 
 
 
 
 
 
 
 
 
ARO reserve reclassified to other liabilities
200,000 
 
 
 
 
 
 
 
 
 
 
Line of credit agreement, extended maturity date
 
 
 
 
 
Aug. 31, 2016 
 
 
 
 
 
Maximum increased borrowing amount
 
 
 
 
 
20,000,000 
 
 
 
 
 
Additional interest rate per annum
 
 
 
 
 
 
 
0.75% 
3.75% 
1.75% 
4.25% 
Percentage of unused revolving line facility fee
 
 
 
 
 
0.50% 
 
 
 
 
 
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. 
 
 
 
 
 
Line of credit facility amount withdrawn
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
 
 
 
 
 
2,600,000 
2,700,000 
 
 
 
 
Line of credit facility borrowing capacity
 
 
 
 
 
12,300,000 
 
 
 
 
 
Lease commence date
 
Jan. 01, 2017 
 
 
 
 
 
 
 
 
 
Lease end date
 
Dec. 31, 2026 
 
 
 
 
 
 
 
 
 
Lease annual base rent
 
408,000 
 
 
 
 
 
 
 
 
 
Lease increased percentage
 
3.00% 
 
 
 
 
 
 
 
 
 
Lease extended term
 
3 years 
 
 
 
 
 
 
 
 
 
Amount receivables as an aid to construction of improvements of the leased premise
 
 
$ 1,200,000 
 
 
 
 
 
 
 
 
Commitments and Contingencies - Summary of ARO Activity (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
 
Balance at beginning of period
$ 397 
Expenditures
(156)
Settlement of asset retirement obligation
(241)
Balance at end of period
$ 0 
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, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Numerator:
 
 
 
 
Net loss
$ (1,387)
$ (2,743)
$ (3,184)
$ (5,532)
Denominator:
 
 
 
 
Weighted average shares outstanding, basic and diluted
23,111,127 
22,999,988 
23,087,299 
22,996,152 
Net loss per share, basic and diluted
$ (0.06)
$ (0.12)
$ (0.14)
$ (0.24)
Net Loss Per Share - Summary of Potentially Dilutive Common Shares Excluded from Computation of Diluted Net Loss Per Share (Detail)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
2,968,020 
1,874,666 
2,968,020 
1,874,666 
Common Stock Options [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
2,055,398 
1,298,931 
2,055,398 
1,298,931 
Restricted Common Stock Units [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
759,230 
521,599 
759,230 
521,599 
Common Stock Warrants [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
115 
131 
115 
131 
Restricted Common Stock Awards [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive Securities
153,277 
54,005 
153,277 
54,005