| Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
| Sep. 30, 2015 |
| Accounting Policies [Abstract] | |
| Nature of Business | 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 8) 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 | 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 September 30, 2015 and the results of its
operations for the three and nine months ended September 30,
2015 and 2014 and the cash flows for the nine month periods then
ended. The Company has evaluated events through the date of this
filing.
The results of operations for the three and nine months ended
September 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 | 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 | 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 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
Marketable securities consisted primarily of marketable debt
securities which are classified as available-for-sale and are
carried at fair value. The Company held no marketable securities as
of September 30, 2015 or December 31, 2014. During the
nine months ended September 30, 2015, the Company purchased
$2.5 million of marketable securities which matured during the same
period. 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. |
| Deferred Revenue | 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. |
| Accumulated Other Comprehensive Income (Loss) | 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
September 30, 2015 and December 31, 2014, the Company
held no marketable securities. |
| Fair Value of Financial Instruments | 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
During the nine months ended September 30, 2014, and prior to
the completion of the Company’s IPO on June 18, 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, 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.
During the nine months ended September 30, 2015, the Company
purchased $2.5 million of marketable securities which matured
during the same period. During this period, the instruments were
valued utilizing level 1 inputs. As of September 30, 2015 and
December 31, 2014, the Company held no marketable
securities. |
| Stock-based Compensation | 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 price of the Company’s common stock on the
date of grant.
During the nine months ended September 30, 2015, the Company
granted 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 under the 2014
Equity Plan. The awards to non-employee directors 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 | 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 | 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 Nine Months Ended
2015 2014 2015 2014
(In
thousands)
Revenue:
U.S. $ 12,088 $ 8,068 $ 33,810 $ 25,503
International 19,451 17,369 51,324 48,912
Total $ 31,539 $ 25,437 $ 85,134 $ 74,415 |
| Recently Issued Accounting Standards | 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. |
