Aspen Aerogels (ASPN) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	ASPN
Entity Registrant Name	ASPEN AEROGELS INC
Entity Central Index Key	1,145,986
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,637,115

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 7,305	$ 18,086
Accounts receivable, net of allowances of $98 and $93	17,106	17,535
Inventories	13,992	12,868
Prepaid expenses and other current assets	1,478	1,697
Total current assets	39,881	50,186
Property, plant and equipment, net	78,073	84,394
Other long-term assets	84	89
Total assets	118,038	134,669
Current liabilities:
Accounts payable	8,886	13,065
Accrued expenses	4,685	3,987
Deferred revenue	1,608	1,043
Capital leases, current portion	4	35
Total current liabilities	15,183	18,130
Capital leases, excluding current portion		4
Deferred rent	1,332	971
Total liabilities	16,515	19,105
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $0.00001 par value; 125,000,000 shares authorized, 23,637,115 and 23,369,838 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	0	0
Additional paid-in capital	536,985	533,088
Accumulated deficit	(435,462)	(417,524)
Total stockholders’ equity	101,523	115,564
Total liabilities and stockholders’ equity	$ 118,038	$ 134,669

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 98	$ 93
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	23,637,115	23,369,838
Common stock, shares outstanding	23,637,115	23,369,838

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Product	$ 26,812	$ 28,877	$ 73,700	$ 88,286
Research services	386	683	1,569	1,813
Total revenue	27,198	29,560	75,269	90,099
Cost of revenue:
Product	22,115	22,790	63,706	69,505
Research services	135	368	700	1,012
Gross profit	4,948	6,402	10,863	19,582
Operating expenses:
Research and development	1,468	1,328	4,753	3,924
Sales and marketing	2,745	3,056	9,271	8,939
General and administrative	3,765	4,422	14,354	12,229
Total operating expenses	7,978	8,806	28,378	25,092
Loss from operations	(3,030)	(2,404)	(17,515)	(5,510)
Other expense, net
Interest expense, net	(58)	(37)	(123)	(115)
Postponed financing costs		(656)		(656)
Total other expense, net	(58)	(693)	(123)	(771)
Net loss	$ (3,088)	$ (3,097)	$ (17,638)	$ (6,281)
Net loss per share:
Basic and diluted	$ (0.13)	$ (0.13)	$ (0.76)	$ (0.27)
Weighted-average common shares outstanding:
Basic and diluted	23,442,241	23,168,251	23,356,997	23,114,280

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (17,638)	$ (6,281)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,032	7,298
Stock-compensation expense	3,982	4,277
Lease incentives	(80)
Postponed financing costs		656
Other	(1)
Changes in operating assets and liabilities:
Accounts receivable	944	999
Inventories	(1,124)	(6,370)
Prepaid expenses and other assets	224	189
Accounts payable	(478)	(17)
Accrued expenses	752	(2,189)
Deferred revenue	565	72
Deferred rent	(128)
Net cash used in operating activities	(4,950)	(1,366)
Cash flows from investing activities:
Capital expenditures	(5,423)	(9,994)
Net cash used in investing activities	(5,423)	(9,994)
Cash flows from financing activities:
Proceeds from borrowings under line of credit	6,000
Repayment of borrowings under line of credit	(6,000)
Repayment of obligations under capital lease	(23)	(55)
Payments made for employee restricted stock tax withholdings	(385)	(196)
Payment of deferred financing costs		64
Net cash used in financing activities	(408)	(315)
Net decrease in cash	(10,781)	(11,675)
Cash at beginning of period	18,086	32,804
Cash at end of period	7,305	21,129
Supplemental disclosures of cash flow information:
Interest paid	151	153
Supplemental disclosures of non-cash activities:
Changes in accrued capital expenditures	$ (3,701)	602
Changes in building lease incentives		268
Unpaid financing costs		(592)
Settlement of asset retirement obligation		$ 241

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
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 aerogel technology company that designs, develops and manufactures innovative, high-performance aerogel insulation used primarily in the energy infrastructure and building materials markets. 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 three wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC, Aspen Aerogels Germany, GmbH and Aspen Aerogels Georgia, LLC. 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, 2016 (the Annual Report), filed with the Securities and Exchange Commission on March 2, 2017. 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, 2017, the results of its operations for the three and nine months ended September 30, 2017 and 2016 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, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or any other period.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	(2) Significant Accounting Policies 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 warrant. 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. Revenue Recognition The Company recognizes revenue from the sale of products and performance of research and development services. Revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, the price to the buyer is fixed or determinable, delivery has occurred or services have been provided, and collectability is reasonably assured. Product Revenue Product revenue is recognized upon transfer of title and risk of loss, which is upon shipment or delivery. The Company’s customary shipping terms are free on board (FOB) shipping point. The Company records deferred revenue for product sales when (i) the Company has delivered products but other revenue recognition criteria have not been satisfied or (ii) payments have been received in advance of products being delivered. Research Services Revenue The Company performs research services under contracts with various government agencies and other institutions. The Company records revenue earned on research services contracts using the percentage-of-completion method in two ways: (1) for firm-fixed-price contracts, the Company accrues that portion of the total contract price that is allocable, on the basis of the Company’s estimates of costs incurred to date to total contract costs; and (2) for cost-plus-fixed-fee contracts, the Company records revenue that is equal to total payroll cost incurred times a stated factor plus reimbursable expenses, to a stated upper limit. The primary cost under the Company’s research service contracts is the labor effort expended in completing the research, and the only deliverable, other than the labor hours expended, is reporting of research results to the customer. Because the input measure of labor hours expended is also reflective of the output measure, it is a reliable means to measure the extent of progress towards completion. Revisions in cost estimates and fees during the course of the contract are reflected in the accounting period in which the facts that require the revisions become known. Contract costs and rates used to allocate overhead to contracts are subject to audit by the respective contracting government agency. Adjustments to revenue as a result of audit are recorded in the period they become known. To date, adjustments to revenue as a result of audit have been insignificant. 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 (RSU) 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 nine months ended September 30, 2017, the Company granted 86,023 shares of restricted common stock and non-qualified options (NSOs) to purchase 119,133 shares of common stock with a grant date 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 nine months ended September 30, 2017, the Company also granted 481,373 RSUs and NSOs to purchase 320,571 shares of common stock with a grant date fair value of $1.3 million and $0.7 million, respectively, to employees under the 2014 Equity Plan. The RSUs and NSOs granted to employees will vest over a three year period. On August 2, 2017, the Company reduced the performance target for the year ending December 31, 2020 with respect to 78,125 shares of restricted stock held by its chief executive officer. In addition, the Company modified the vesting conditions of NSOs held by its chief executive officer to purchase 131,578 and 122,324 shares of common stock to extend the time period to achieve certain common stock price targets by an additional year to four and five years from the date of grant, respectively. The Company accounted for the change to the restricted stock performance target as a modification of the award in determining the stock-based compensation expense to be recognized over the remaining service period. The fair value of the award as a result of the modification was $0.4 million. The Company recognized expense of $0.1 million related to this award during the period ended September 30, 2017. The Company accounted for the extension of the time periods for the achievement of the common stock price target vesting conditions of the NSOs as modifications in determining the stock-based compensation expense to be recognized over the remaining service period. The total incremental compensation expense resulting from the modification was $0.1 million. The incremental compensation expense associated with these awards will be recognized over the remaining service period of the awards. Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Cost of product revenue $ 201 $ 241 $ 641 $ 632 Research and development expenses 151 184 449 472 Sales and marketing expenses 294 314 865 852 General and administrative expenses 718 735 2,027 2,321 Total stock-based compensation $ 1,364 $ 1,474 $ 3,982 $ 4,277 Effective January 1, 2017, the Company adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) related to the timing of accounting for the forfeitures of share based awards using a modified retrospective transition method. Under these provisions, the Company will record the impact of forfeitures of service based awards at the time an award is forfeited. Adoption of the provisions resulted in a cumulative-effect adjustment to equity as of January 1, 2017 of $0.3 million. 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 467,396 shares to 6,536,597 shares effective January 1, 2017. As of September 30, 2017, 3,219,510 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 September 30, 2017, 92,178 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 September 30, 2017, there were 2,358,632 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 income (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 income (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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Revenue: U.S. $ 13,555 $ 6,850 $ 32,816 $ 28,471 International 13,643 22,710 42,453 61,628 Total $ 27,198 $ 29,560 $ 75,269 $ 90,099 Warranty Costs The Company provides warranties for its products and records the estimated cost of such warranties 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. This standard warranty provides 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. The Company’s products may be utilized in systems that may involve new technical demands and new configurations. As such, the Company regularly reviews and assesses whether warranty reserves shall be recorded in the period the related revenue is recorded. For an initial shipment of product in a system with new technical demands or configurations and 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. During the nine months ended September 30, 2017 and 2016, the Company recorded warranty expense of $0.9 million and $0.5 million, respectively. These specific warranty charges were related to product claims for two separate product application issues . These claims are outside the Company’s typical experience. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Recently issued standards typically do not require adoption until a future effective date. Prior to their effective date, the Company evaluates the pronouncements to determine the potential effects of adoption to its consolidated financial statements. Standards Implemented Since December 31, 2016 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 standard for fiscal years beginning after December 15, 2016, including interim periods within those fiscal periods. The Company adopted this standard effective January 1, 2017. Application of the standard has not resulted in any material impact to the Company’s consolidated financial statements or other disclosures. In March 2016, the FASB issued ASU 2016-09. The amendment simplifies 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 has adopted this standard effective January 1, 2017. The provisions of ASU 2016-09 related to the timing of accounting for the forfeitures of share based awards was adopted using a modified retrospective method by means of a cumulative-effect adjustment to equity as of January 1, 2017 of $0.3 million. The other provisions of ASU 2016-09 have been adopted prospectively. Standards to be Implemented 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 revised 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 permitted only as of annual and interim periods in fiscal years beginning after December 15, 2016. The Company expects to adopt the modified retrospective method. The Company is in the process of reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company will continue to evaluate the impact on the financial statements and the related disclosures during the fourth quarter of 2017. In addition, during the fourth quarter of 2017, the Company plans to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company will adopt the new standard on January 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). FASB ASU 2016-02 modifies the accounting for leases and requires that all leases be recorded 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. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon the adoption of ASU 2016-02, which will increase the total assets and total liabilities that it reports relative to such amounts prior to adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). This amendment addresses eight classification issues related to the statement of cash flows. For public business entities, the amendments in ASU 2016-15 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company has completed its assessment of the amendment and has determined that adoption will have no significant impact to the Company’s consolidated financial statements or other disclosures. The Company will adopt the provisions of the amendment effective January 1, 2018.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	(3) Inventories Inventories consist of the following: September 30, December 31, 2017 2016 (In thousands) Raw materials $ 3,031 $ 3,511 Finished goods 10,961 9,357 Total $ 13,992 $ 12,868

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2017
Property Plant And Equipment [Abstract]
Property, Plant and Equipment, Net	(4) Property, Plant and Equipment, Net Property, plant and equipment consist of the following: September 30, December 31, Useful 2017 2016 life (In thousands) Construction in progress $ 7,821 $ 11,139 — Buildings 23,928 23,901 30 years Machinery and equipment 118,278 113,659 3-10 years Computer equipment and software 7,960 7,679 3 years Total 157,987 156,378 Accumulated depreciation (79,914 ) (71,984 ) Property, plant and equipment, net $ 78,073 $ 84,394 Depreciation expense was $8.0 million and $7.3 million for the nine months ended September 30, 2017 and 2016, respectively. Construction in progress totaled $7.8 million and $11.1 million at September 30, 2017 and December 31, 2016, respectively, which included engineering designs and other pre-construction costs for the planned manufacturing facility in Statesboro, Georgia of $7.2 million at September 30, 2017 and December 31, 2016. The Company anticipates that the impact of constrained capital investment and low activity levels in the global energy markets will continue into 2018. With this view of the market, the Company delayed the board approved project to construct the Statesboro, Georgia manufacturing facility and its related financing to better align the capacity expansion with the Company’s assessment of future demand.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2017
Payables And Accruals [Abstract]
Accrued Expenses	(5) Accrued Expenses Accrued expenses consist of the following: September 30, December 31, 2017 2016 (In thousands) Employee compensation $ 3,165 $ 2,796 Other accrued expenses 1,520 1,191 Total $ 4,685 $ 3,987

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	(6) Commitments and Contingencies Customer Supply Agreement During 2016, the Company entered into a supply agreement and a side agreement (together, the Supply Agreement) and a joint development agreement (the JDA) with BASF SE (BASF). Pursuant to the Supply Agreement, the Company agreed to sell exclusively to BASF the Company’s Spaceloft ® In addition, under the terms of the Supply Agreement, BASF will make a non-interest bearing prepayment to the Company in the aggregate amount of $22 million during the construction of the Company’s planned manufacturing facility in Statesboro, Georgia (Plant Two), subject to the Company’s prior satisfaction of certain preconditions, including securing a debt commitment from a third party lender for at least $30 million. BASF is obligated to pay the prepayment to the Company in eight equal consecutive quarterly installments commencing on the first day of the calendar quarter following the date on which the 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. 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 ® The Company anticipates that the impact of constrained capital investment and low activity levels in the global energy markets will continue into 2018. With this view of the market, the Company delayed the board approved Plant Two project and its related financing to better align the capacity expansion with the Company’s assessment of future demand. As a result, the Company has yet to fulfill the prepayment preconditions and commencement of the quarterly prepayments from BASF will be delayed until the preconditions are satisfied. Revolving Line of Credit The Company entered into an Amended and Restated Loan and Security Agreement with Silicon Valley Bank (Loan Agreement), on August 31, 2014, which has been subsequently amended from time to time. On January 27, 2017, the Loan Agreement was amended to extend the maturity date of the revolving credit facility to January 28, 2018. On September 27, 2017, the Loan Agreement was further amended to modify required minimum Adjusted EBITDA. Under the Loan Agreement, the Company may borrow up to $20 million subject to compliance with certain covenants and borrowing base limitations. At the Company’s election, the interest rate applicable to borrowings 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 line fee of 0.5% per annum of the average unused portion of the facility. The Company’s obligations under the Loan Agreement are secured by a first priority security interest in all assets of the Company, including those at the East Providence facility, except for certain exclusions. During the nine months ended September 30, 2017, the Company borrowed and repaid $6.0 million under the line of credit. At September 30, 2017 and December 31, 2016, the Company had no amounts drawn on the revolving credit facility. Under the Loan Agreement, the Company is required to comply with both non-financial and financial covenants, including minimum Adjusted EBITDA and minimum Adjusted Quick Ratio, as defined. At September 30, 2017, the Company was in compliance with all such financial covenants. The Company previously provided its landlord for its Northborough, Massachusetts facility with letters of credit securing certain obligations. As of January 31, 2017, these obligations were released by the landlord. In addition, the Company has been required to provide certain customers with letters of credit securing obligations under commercial contracts. The Company had outstanding letters of credit backed by the revolving credit facility of $2.4 million and $2.7 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017 was $11.3 million after consideration of the $2.4 million of outstanding letters of credit. 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.

Deferred Rent

Deferred Rent	9 Months Ended
	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Deferred Rent	(7) Deferred Rent The Company leases office and warehouse space in Northborough, Massachusetts and East Providence, Rhode Island. For leases that contain fixed increases in the minimum annual lease payment during the original term of the lease, the Company recognizes rental expense on a straight-line basis over the lease term, and records the difference between rent expense and the amount currently payable as deferred rent. Lease incentives for allowances for qualified leasehold improvements received from the landlord are amortized on a straight-line basis over the lease term. These improvements and the funding received from the landlord are recorded as fixed asset additions and a deferred rent liability on the consolidated balance sheet. The deferred rent liability is being amortized as a reduction to rent expense over the life of the lease. Cash flows from the landlord for the reimbursement of improvements have been reported within cash from operating activities, while cash flows remitted for the acquisition of leasehold improvements are classified within investing activity cash flows. As of September 30, 2017, deferred rent included $1.1 million in deferred lease incentives and $0.4 million of straight-line rental obligations. Deferred rent consists of the following: September 30, December 31, 2017 2016 (In thousands) Deferred rent $ 1,539 $ 1,125 Current maturities of deferred rent (207 ) (154 ) Deferred rent, less current maturities $ 1,332 $ 971

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	(8) Net Loss Per Share The computation of basic and diluted net loss per share consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands, except share and per share data) Numerator: Net loss $ (3,088 ) $ (3,097 ) $ (17,638 ) $ (6,281 ) Denominator: Weighted average shares outstanding, basic and diluted 23,442,241 23,168,251 23,356,997 23,114,280 Net loss per share, basic and diluted $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.27 ) 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Common stock options 2,476,829 2,044,840 2,476,829 2,044,840 Restricted common stock units 834,859 677,001 834,859 677,001 Common stock warrants 120 120 120 120 Restricted common stock awards 151,859 153,277 151,859 153,277 Total 3,463,667 2,875,238 3,463,667 2,875,238 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	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	(9) 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 B15

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Nature of Business	Nature of Business Aspen Aerogels, Inc. (the Company) is an aerogel technology company that designs, develops and manufactures innovative, high-performance aerogel insulation used primarily in the energy infrastructure and building materials markets. 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 three wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC, Aspen Aerogels Germany, GmbH and Aspen Aerogels Georgia, LLC.
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 our Annual Report on Form 10-K for the year ended December 31, 2016 (the Annual Report), filed with the Securities and Exchange Commission on March 2, 2017. 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, 2017, the results of its operations for the three and nine months ended September 30, 2017 and 2016 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, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or any other period.
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, 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 warrant. 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.
Revenue Recognition	Revenue Recognition The Company recognizes revenue from the sale of products and performance of research and development services. Revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, the price to the buyer is fixed or determinable, delivery has occurred or services have been provided, and collectability is reasonably assured.
Product Revenue	Product Revenue Product revenue is recognized upon transfer of title and risk of loss, which is upon shipment or delivery. The Company’s customary shipping terms are free on board (FOB) shipping point. The Company records deferred revenue for product sales when (i) the Company has delivered products but other revenue recognition criteria have not been satisfied or (ii) payments have been received in advance of products being delivered.
Research Services Revenue	Research Services Revenue The Company performs research services under contracts with various government agencies and other institutions. The Company records revenue earned on research services contracts using the percentage-of-completion method in two ways: (1) for firm-fixed-price contracts, the Company accrues that portion of the total contract price that is allocable, on the basis of the Company’s estimates of costs incurred to date to total contract costs; and (2) for cost-plus-fixed-fee contracts, the Company records revenue that is equal to total payroll cost incurred times a stated factor plus reimbursable expenses, to a stated upper limit. The primary cost under the Company’s research service contracts is the labor effort expended in completing the research, and the only deliverable, other than the labor hours expended, is reporting of research results to the customer. Because the input measure of labor hours expended is also reflective of the output measure, it is a reliable means to measure the extent of progress towards completion. Revisions in cost estimates and fees during the course of the contract are reflected in the accounting period in which the facts that require the revisions become known. Contract costs and rates used to allocate overhead to contracts are subject to audit by the respective contracting government agency. Adjustments to revenue as a result of audit are recorded in the period they become known. To date, adjustments to revenue as a result of audit have been insignificant.
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 (RSU) 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 nine months ended September 30, 2017, the Company granted 86,023 shares of restricted common stock and non-qualified options (NSOs) to purchase 119,133 shares of common stock with a grant date 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 nine months ended September 30, 2017, the Company also granted 481,373 RSUs and NSOs to purchase 320,571 shares of common stock with a grant date fair value of $1.3 million and $0.7 million, respectively, to employees under the 2014 Equity Plan. The RSUs and NSOs granted to employees will vest over a three year period. On August 2, 2017, the Company reduced the performance target for the year ending December 31, 2020 with respect to 78,125 shares of restricted stock held by its chief executive officer. In addition, the Company modified the vesting conditions of NSOs held by its chief executive officer to purchase 131,578 and 122,324 shares of common stock to extend the time period to achieve certain common stock price targets by an additional year to four and five years from the date of grant, respectively. The Company accounted for the change to the restricted stock performance target as a modification of the award in determining the stock-based compensation expense to be recognized over the remaining service period. The fair value of the award as a result of the modification was $0.4 million. The Company recognized expense of $0.1 million related to this award during the period ended September 30, 2017. The Company accounted for the extension of the time periods for the achievement of the common stock price target vesting conditions of the NSOs as modifications in determining the stock-based compensation expense to be recognized over the remaining service period. The total incremental compensation expense resulting from the modification was $0.1 million. The incremental compensation expense associated with these awards will be recognized over the remaining service period of the awards. Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Cost of product revenue $ 201 $ 241 $ 641 $ 632 Research and development expenses 151 184 449 472 Sales and marketing expenses 294 314 865 852 General and administrative expenses 718 735 2,027 2,321 Total stock-based compensation $ 1,364 $ 1,474 $ 3,982 $ 4,277 Effective January 1, 2017, the Company adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) related to the timing of accounting for the forfeitures of share based awards using a modified retrospective transition method. Under these provisions, the Company will record the impact of forfeitures of service based awards at the time an award is forfeited. Adoption of the provisions resulted in a cumulative-effect adjustment to equity as of January 1, 2017 of $0.3 million. 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 467,396 shares to 6,536,597 shares effective January 1, 2017. As of September 30, 2017, 3,219,510 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 September 30, 2017, 92,178 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 September 30, 2017, there were 2,358,632 shares of common stock available for grant under the 2014 Equity Plan.
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 income (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 income (loss) per share if their effect is antidilutive.
Segments	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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Revenue: U.S. $ 13,555 $ 6,850 $ 32,816 $ 28,471 International 13,643 22,710 42,453 61,628 Total $ 27,198 $ 29,560 $ 75,269 $ 90,099
Warranty Costs	Warranty Costs The Company provides warranties for its products and records the estimated cost of such warranties 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. This standard warranty provides 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. The Company’s products may be utilized in systems that may involve new technical demands and new configurations. As such, the Company regularly reviews and assesses whether warranty reserves shall be recorded in the period the related revenue is recorded. For an initial shipment of product in a system with new technical demands or configurations and 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. During the nine months ended September 30, 2017 and 2016, the Company recorded warranty expense of $0.9 million and $0.5 million, respectively. These specific warranty charges were related to product claims for two separate product application issues . These claims are outside the Company’s typical experience.
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. Recently issued standards typically do not require adoption until a future effective date. Prior to their effective date, the Company evaluates the pronouncements to determine the potential effects of adoption to its consolidated financial statements. Standards Implemented Since December 31, 2016 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 standard for fiscal years beginning after December 15, 2016, including interim periods within those fiscal periods. The Company adopted this standard effective January 1, 2017. Application of the standard has not resulted in any material impact to the Company’s consolidated financial statements or other disclosures. In March 2016, the FASB issued ASU 2016-09. The amendment simplifies 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 has adopted this standard effective January 1, 2017. The provisions of ASU 2016-09 related to the timing of accounting for the forfeitures of share based awards was adopted using a modified retrospective method by means of a cumulative-effect adjustment to equity as of January 1, 2017 of $0.3 million. The other provisions of ASU 2016-09 have been adopted prospectively. Standards to be Implemented 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 revised 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 permitted only as of annual and interim periods in fiscal years beginning after December 15, 2016. The Company expects to adopt the modified retrospective method. The Company is in the process of reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company will continue to evaluate the impact on the financial statements and the related disclosures during the fourth quarter of 2017. In addition, during the fourth quarter of 2017, the Company plans to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company will adopt the new standard on January 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). FASB ASU 2016-02 modifies the accounting for leases and requires that all leases be recorded 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. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon the adoption of ASU 2016-02, which will increase the total assets and total liabilities that it reports relative to such amounts prior to adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). This amendment addresses eight classification issues related to the statement of cash flows. For public business entities, the amendments in ASU 2016-15 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company has completed its assessment of the amendment and has determined that adoption will have no significant impact to the Company’s consolidated financial statements or other disclosures. The Company will adopt the provisions of the amendment effective January 1, 2018.

Significant Accounting Polici16

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Stock Based Compensation Included in Cost of Sales or Operating Expenses	Stock-based compensation is included in cost of sales or operating expenses, as applicable, and consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Cost of product revenue $ 201 $ 241 $ 641 $ 632 Research and development expenses 151 184 449 472 Sales and marketing expenses 294 314 865 852 General and administrative expenses 718 735 2,027 2,321 Total stock-based compensation $ 1,364 $ 1,474 $ 3,982 $ 4,277
Schedule of Total Revenues, Based on Shipment Destination or Research Services Location	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 September 30, September 30, 2017 2016 2017 2016 (In thousands) Revenue: U.S. $ 13,555 $ 6,850 $ 32,816 $ 28,471 International 13,643 22,710 42,453 61,628 Total $ 27,198 $ 29,560 $ 75,269 $ 90,099

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: September 30, December 31, 2017 2016 (In thousands) Raw materials $ 3,031 $ 3,511 Finished goods 10,961 9,357 Total $ 13,992 $ 12,868

Property, Plant and Equipment18

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2017
Property Plant And Equipment [Abstract]
Summary of Property, Plant and Equipment	Property, plant and equipment consist of the following: September 30, December 31, Useful 2017 2016 life (In thousands) Construction in progress $ 7,821 $ 11,139 — Buildings 23,928 23,901 30 years Machinery and equipment 118,278 113,659 3-10 years Computer equipment and software 7,960 7,679 3 years Total 157,987 156,378 Accumulated depreciation (79,914 ) (71,984 ) Property, plant and equipment, net $ 78,073 $ 84,394

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Payables And Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following: September 30, December 31, 2017 2016 (In thousands) Employee compensation $ 3,165 $ 2,796 Other accrued expenses 1,520 1,191 Total $ 4,685 $ 3,987

Deferred Rent (Tables)

Deferred Rent (Tables)	9 Months Ended
	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Summary of Deferred Rent	Deferred rent consists of the following: September 30, December 31, 2017 2016 (In thousands) Deferred rent $ 1,539 $ 1,125 Current maturities of deferred rent (207 ) (154 ) Deferred rent, less current maturities $ 1,332 $ 971

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The computation of basic and diluted net loss per share consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands, except share and per share data) Numerator: Net loss $ (3,088 ) $ (3,097 ) $ (17,638 ) $ (6,281 ) Denominator: Weighted average shares outstanding, basic and diluted 23,442,241 23,168,251 23,356,997 23,114,280 Net loss per share, basic and diluted $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.27 )
Summary of Potentially Dilutive Common Shares Excluded from Computation of Diluted Net Loss Per Share	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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Common stock options 2,476,829 2,044,840 2,476,829 2,044,840 Restricted common stock units 834,859 677,001 834,859 677,001 Common stock warrants 120 120 120 120 Restricted common stock awards 151,859 153,277 151,859 153,277 Total 3,463,667 2,875,238 3,463,667 2,875,238

Description of Business and B22

Description of Business and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017Subsidiary
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of Subsidiaries	3

Significant Accounting Polici23

Significant Accounting Policies - Additional Information (Detail) $ in Millions	Aug. 02, 2017USD ($)shares	Jan. 02, 2017shares	Sep. 30, 2017USD ($)Segmentshares	Sep. 30, 2016USD ($)	Jan. 01, 2017USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of segment | Segment			1
Standard product warranty period			1 year
Warranty expense | $			$ 0.9	$ 0.5
ASU 2016-09 [Member]
Summary Of Significant Accounting Policies [Line Items]
Cumulative effect adjustment to equity | $					$ 0.3
Chief Executive Officer [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of restricted stock awards modified during the period	78,125
Restricted Stock Units [Member] | Chief Executive Officer [Member]
Summary Of Significant Accounting Policies [Line Items]
Fair value of award after modification | $	$ 0.4
Expense related to award | $	0.1
Non-Qualified Stock Options [Member]
Summary Of Significant Accounting Policies [Line Items]
Total incremental compensation expense | $	$ 0.1
Non-Qualified Stock Options [Member] | Common Stock Price Target Achievements Conditions, Vesting Four Year Period [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based award vesting period	4 years
Number of options with modified vesting term	131,578
Non-Qualified Stock Options [Member] | Common Stock Price Target Achievements Conditions, Vesting Five Year Period [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based award vesting period	5 years
Number of options with modified vesting term	122,324
2014 Equity Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Authorized for issuance, number of shares increased by		467,396
Increased number of shares authorized for grant		6,536,597	2,358,632
Shares reserved for issuance			3,219,510
2014 Equity Plan [Member] | Restricted Stock Units [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based awards granted			481,373
Stock-based award vesting period			3 years
Stock-based award grant date fair value | $			$ 1.3
2014 Equity Plan [Member] | Restricted Stock Units [Member] | Non-Employee Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based awards granted			86,023
Stock-based award vesting period			1 year
Stock-based award grant date fair value | $			$ 0.4
2014 Equity Plan [Member] | Non-Qualified Stock Options [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based awards granted to purchase common stock			320,571
Stock-based award vesting period			3 years
Stock-based award grant date fair value | $			$ 0.7
2014 Equity Plan [Member] | Non-Qualified Stock Options [Member] | Non-Employee Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock-based awards granted to purchase common stock			119,133
Stock-based award vesting period			1 year
Stock-based award grant date fair value | $			$ 0.2
2001 Equity Incentive Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Shares reserved for issuance			92,178

Significant Accounting Polici24

Significant Accounting Policies - Summary of Stock Based Compensation Included in Cost of Sales or Operating Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 1,364	$ 1,474	$ 3,982	$ 4,277
Cost of Product Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	201	241	641	632
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	151	184	449	472
Sales and Marketing Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	294	314	865	852
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 718	$ 735	$ 2,027	$ 2,321

Significant Accounting Polici25

Significant Accounting Policies - Schedule of Total Revenues, Based on Shipment Destination or Research Services Location (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 27,198	$ 29,560	$ 75,269	$ 90,099
U.S. [Member]
Segment Reporting Information [Line Items]
Revenue	13,555	6,850	32,816	28,471
International [Member]
Segment Reporting Information [Line Items]
Revenue	$ 13,643	$ 22,710	$ 42,453	$ 61,628

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 3,031	$ 3,511
Finished goods	10,961	9,357
Total	$ 13,992	$ 12,868

Property, Plant and Equipment27

Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 157,987	$ 156,378
Accumulated depreciation	(79,914)	(71,984)
Property, plant and equipment, net	78,073	84,394
Construction in Progress [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,821	11,139
Buildings [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 23,928	23,901
Property, plant and equipment, Useful life	30 years
Machinery and Equipment [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 118,278	113,659
Machinery and Equipment [Member] | Minimum [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, Useful life	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, Useful life	10 years
Computer Equipment and Software [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,960	$ 7,679
Property, plant and equipment, Useful life	3 years

Property, Plant and Equipment28

Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property Plant and Equipment [Line Items]
Depreciation expense	$ 8,000	$ 7,300
Property, plant and equipment, gross	157,987		$ 156,378
Construction in Progress [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,821		11,139
Statesboro, Georgia [Member] | Construction in Progress [Member]
Property Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,200		$ 7,200

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities Current [Abstract]
Employee compensation	$ 3,165	$ 2,796
Other accrued expenses	1,520	1,191
Total	$ 4,685	$ 3,987

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Sep. 27, 2017USD ($)	Jan. 27, 2017	Sep. 30, 2017USD ($)Installment	Dec. 31, 2016USD ($)
Commitments And Contingencies [Line Items]
Borrowed under line of credit			$ 6,000,000
Repaid under line of credit			$ 6,000,000
Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member]
Commitments And Contingencies [Line Items]
Maximum increased borrowing amount	$ 20,000,000
Interest rate description			The interest rate applicable to borrowings 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 line fee	0.50%
Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member] | Revolving Credit Facility [Member]
Commitments And Contingencies [Line Items]
Extended maturity date		Jan. 28, 2018
Line of credit facility amount withdrawn			$ 0	$ 0
Borrowed under line of credit			6,000,000
Repaid under line of credit			6,000,000
Letters of credit outstanding			2,400,000	$ 2,700,000
Line of credit facility borrowing capacity			$ 11,300,000
Minimum [Member] | Prime Rate [Member] | Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member]
Commitments And Contingencies [Line Items]
Additional interest rate per annum	0.75%
Minimum [Member] | LIBOR Rate [Member] | Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member]
Commitments And Contingencies [Line Items]
Additional interest rate per annum	3.75%
Maximum [Member] | Prime Rate [Member] | Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member]
Commitments And Contingencies [Line Items]
Additional interest rate per annum	1.75%
Maximum [Member] | LIBOR Rate [Member] | Silicon Valley Bank Credit Facility [Member] | Loan Agreement [Member]
Commitments And Contingencies [Line Items]
Additional interest rate per annum	4.25%
Supply and Joint Development Agreement [Member] | BASF [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 | Installment			8
Supply and Joint Development Agreement [Member] | BASF [Member] | Maximum [Member]
Commitments And Contingencies [Line Items]
Credit limit percentage on prepayment balance			25.30%
Supply and Joint Development Agreement [Member] | BASF [Member] | Third Party Lender [Member] | Minimum [Member] | Plant Two [Member]
Commitments And Contingencies [Line Items]
Secured debt, commitment			$ 30,000,000

Deferred Rent - Additional Info

Deferred Rent - Additional Information (Detail) $ in Millions	Sep. 30, 2017USD ($)
Other Liabilities Disclosure [Abstract]
Deferred lease incentives	$ 1.1
Straight-line rental obligations	$ 0.4

Deferred Rent - Summary of Defe

Deferred Rent - Summary of Deferred Rent (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Revenue And Credits [Abstract]
Deferred rent	$ 1,539	$ 1,125
Current maturities of deferred rent	(207)	(154)
Deferred rent, less current maturities	$ 1,332	$ 971

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net loss	$ (3,088)	$ (3,097)	$ (17,638)	$ (6,281)
Denominator:
Weighted average shares outstanding, basic and diluted	23,442,241	23,168,251	23,356,997	23,114,280
Net loss per share, basic and diluted	$ (0.13)	$ (0.13)	$ (0.76)	$ (0.27)

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Potentially Dilutive Common Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities	3,463,667	2,875,238	3,463,667	2,875,238
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities	2,476,829	2,044,840	2,476,829	2,044,840
Restricted Common Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities	834,859	677,001	834,859	677,001
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities	120	120	120	120
Restricted Common Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities	151,859	153,277	151,859	153,277