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Property and Equipment, Net

Note 9.

Property and Equipment, net

Property and Equipment, net as of June 30, 2018 and December 31, 2017 consisted of the following:

	Useful Lives	June 30, 2018			December 31, 2017

Machinery	3-15 yrs	$	20,286		$	20,056
Furniture and fixtures	3-15 yrs		1,109			1,109
Leasehold improvements	(a)		21,275			21,271
Computer, network equipment and software	3-7 yrs		2,228			2,108
Construction in progress			1,578			921
			46,476			45,465
Less: accumulated depreciation and amortization			(33,710	)		(32,005	)
Total property and equipment, net		$	12,766		$	13,460

(a)	Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives.

Total depreciation and amortization related to property and equipment was approximately $765 and $938 for the three months ended June 30, 2018 and 2017, respectively and $1,705 and $1,853 for the six months ended June 30, 2018 and 2017, respectively.

Net Loss Per Share

6 Months Ended

Jun. 30, 2018

Net Loss Per Share [Abstract]

Net Loss Per Share

Note 10.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares.

As a result of the corporate conversion and reorganization described in Note 1(B), there were no potentially dilutive instruments outstanding for the three and six months period ended June 30, 2018. Therefore, basic and diluted net loss per share were the same for all periods presented as reflected below.

	For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2018
Numerator:
Net loss	$	(36,493	)	$	(32,394	)
Denominator:
Weighted-average number of common shares – basic and diluted		19,188,624			17,144,492
Income per common share – basic and diluted	$	(1.90	)	$	(1.89	)

The LLC interests, prior to the corporate conversion and reorganization of the Company described in Note 1(B), were complex and varied across several series of LLC equity interest conveying different economics and rights. As such, loss per share information prior to the reorganization under the prior equity structure is not comparable to earnings per share for periods presented after the reorganization.

Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2018

Accounts Payable and Accrued Expenses [Abstract]

Accounts Payable and Accrued Expenses

Note 11.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30, 2018		December 31, 2017

Accounts payable	$	16,522	$	9,601
Accrued salaries, performance bonuses, other compensation and benefits		2,339		3,761
Accrued withholding tax for share-based compensation		1,741		-
Real estate and personal property taxes		263		340
Other		275		301
Total accounts payable and accrued expenses	$	21,140	$	14,003

Loans Payable

6 Months Ended

Jun. 30, 2018

Loans Payable [Abstract]

Loans Payable

Note 12.

Loans Payable

On August 16, 2016, the Company entered into a Loan Agreement and Guaranty with Perceptive Credit Opportunities Fund, LP (“Perceptive”). At closing, the Company borrowed $45,000 from Perceptive, Perceptive received a warrant to purchase senior common equity interests representing 4.5% of the fully diluted common units of the Company on an as converted basis (see Note 13).and the Company was permitted to borrow up to an additional $5,000 within one year of the closing date based upon achievement of a defined milestone. In March 2017, the Company met its performance obligations under the terms of the credit agreement with Perceptive and submitted a formal request to draw down the remaining $5,000 of its $50,000 credit facility. The loan proceeds were used to pay the existing debt obligation of $37,500 due to White Oak Global Advisors, LLC, with the balance available for general business purposes.

On May 21, 2018, the Company and Perceptive agreed to make certain amendments to the loan agreement then in effect. In the event that a qualified IPO is consummated on or before December 31, 2018, the Company and Perceptive agreed to postpone the initial loan principal payments and delay the loan maturity date to December 16, 2020 and bears interest, payable monthly, at one-month LIBOR or 2% plus 9.75%, subject to a minimum rate of 11.75%. Commencing on May 31, 2019, seven monthly loan principal payments are due in the amount of $550. Thereafter, monthly principal payments in the amount of $750 are due through the maturity date, at which time the full amount of the remaining outstanding loan balance is due. At June 30, 2018, $1,100 was classified as current debt. The Company’s tangible and intangible assets are subject to first priority liens to the extent of the outstanding debt. Other significant terms include financial covenants, change of control triggers and limitations on additional indebtedness, asset sales, acquisitions and dividend payments. Financial covenant requirements include (1) minimum liquidity under which a $4,000 minimum cash balance must be maintained at all times and (2) a minimum revenue requirement under which minimum revenues for the trailing twelve consecutive months, measured at the end of each calendar quarter, must also be met. As of June 30, 2018, the Company was in compliance with all financial covenants. Also, as of that date, the Company’s carrying value of this loan payable approximated its fair market value.

The Company capitalizes legal and other third-party costs incurred in connection with obtaining debt as deferred debt issuance costs and applies the unamortized portion as a reduction of the outstanding face amount of the related loan in accordance with ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. Similarly, the Company amortizes debt discounts, such as those represented by warrants issued to its lenders, and offsets those as a direct reduction of its outstanding debt. Amortization expense arising from deferred debt issuance costs and debt discounts for the three months ended June 30, 2018 and 2017 totaled $465 and $463, respectively and for the six months ended June 30, 2018 and 2017 totaled $923 and $920, respectively.

Unamortized deferred debt issuance costs and deferred debt discounts totaled $3,570 as of June 30, 2018 and $4,493 as of December 31, 2017.

Warrant Liability

6 Months Ended

Jun. 30, 2018

Warrant Liability [Abstract]

Warrant Liability

Note 13.

Warrant Liability

The warrant issued to Perceptive in connection with the August 16, 2016 Loan Agreement expires on August 16, 2023 and has certain rights and preferences including anti-dilution adjustments so that, upon exercise, they will represent 4.5% of the Company’s fully diluted common stock on an as converted basis, subject to dilution for certain financing transactions including the issuance of shares upon termination of our Performance Unit Plans. The warrant also provides Perceptive with a put right which, if exercised under certain circumstances, would require the Company to purchase the warrant for $3,000 within the first year of the loan or $5,000 thereafter. These re-purchase terms may require net-cash settlement, and as a result, the appraised value of this warrant at the time of issuance of $5,800 was classified as a liability, rather than as a component of equity, and is treated as a debt discount, with the unamortized portion applied to reduce the face amount of the loan in the accompanying Consolidated Balance Sheet. As noted in Note 17(A), these warrants were exercised in connection with the Company's IPO in July 2018.

The Company uses a third-party valuation to assist in determining the fair value of the warrant due to the absence of available Level 1 and Level 2 inputs. The appraisals at both the date of the issuance and the balance sheet date were based on unobservable Level 3 inputs. The first step in determining the fair value of the warrant liability is to determine the value of the aggregate equity of the Company which was estimated utilizing the income and market valuation approaches. A probability weighted return model was then utilized to allocate the aggregate equity value of the Company to the underlying securities. Estimates and assumptions impacting the fair value measurement include the following factors: the progress of the Company’s pipeline products since the prior valuations, including status of clinical trials; the Company’s progress towards an IPO; discount rates of 26.5% and 24.0% for the six months ended June 30, 2018 and 2017, respectively and volatility rates of 85% for both the six month periods ended June 30, 2018 and 2017, respectively.

A roll-forward of warrant liability is as follows:

	Warrant liabilities
Balance as of December 31, 2017	$	7,673
Changes in fair value recognized		1,162
Closing Balance as of June 30, 2018	$	8,835

Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 14.

Commitments and Contingencies

(A)	Operating Leases

The Company has entered into various lease agreements for production and research facilities and offices. Most leases contain renewal options. Certain leases contain purchase options and require the Company to pay for taxes, maintenance and operating expenses. All of the Company’s leases are classified as operating leases.

Rent expense for all leased manufacturing facilities and sales, laboratory and office space was approximately $292 and $323 for three months ended June 30, 2018 and 2017, respectively and $623 and $645 for the six months ended June 30, 2018 and 2017, respectively.

(B)	Litigation and Contingencies

From time to time, we have been and may again become involved in legal proceedings arising in the ordinary course of our business. Except as described below, we are not presently a party to any litigation or legal proceedings that we believe to be material and we are not aware of any pending or threatened litigation against us that we believe could have a material adverse effect on our business, operating results, financial condition or cash flows.

Patent-Related Litigation

Beginning in August 2013, we were informed of ANDA filings in the United States by Watson Laboratories, Inc. (now Actavis Laboratories, Inc., or Actavis), Par Pharmaceutical, Inc., or Par, Alvogen Pine Brook, Inc., or Alvogen, Teva Pharmaceuticals USA, Inc., or Teva, Sandoz Inc., or Sandoz, and Mylan Technologies Inc. or Mylan, for the approval by the FDA of generic versions of Suboxone Sublingual Film in the United States. We filed patent infringement lawsuits against all six generic companies in the U.S. District Court for the District of Delaware. Of these, cases against two of the six generic companies have been resolved.

•

Sandoz. By court order in August 2016, our ANDA patent litigation case against Sandoz has been dismissed without prejudice for lack of subject matter jurisdiction because Sandoz is no longer pursuing a Paragraph IV certification for its proposed generic version of Suboxone Sublingual Film, and therefore is no longer challenging the validity or infringement of our Orange Book-listed patents.

•	Mylan. The case against Mylan was settled and the Court signed a Consent Judgment in September 2017 disposing of the entire case.

After the commencement of the above-mentioned ANDA patent litigation against Teva, Dr. Reddy’s Laboratories acquired the ANDA filings for Teva’s buprenorphine and naloxone sublingual film that are at issue in these trials.

Trials against Dr. Reddy’s, Actavis and Par in the lawsuits involving the Orange Book and process patents occurred in November-December of 2015 and November of 2016. On June 3, 2016, the Court issued its Trial Opinion finding that the asserted claims of U.S. Patent No. 8,603,514, or the ’514 patent, are valid and infringed by Actavis’s and Par’s ANDA Products. On August 31, 2017, the Court upheld U.S. Patent No. 8,900,497, or the ’497 patent, as valid but not infringed by Par’s, Actavis’s or Dr. Reddy’s proposed processes for making their ANDA Products. The Court also again upheld the validity of the ’514 patent but held it was not infringed by Dr. Reddy’s ANDA Products, and upheld the validity of U.S. Patent No. 8,017,150, or the ’150 patent, but held that it was not infringed by Dr. Reddy’s ANDA Products. All of these cases are consolidated on appeal to the Federal Circuit, except that the cases between Indivior and us and Par and certain affiliates have been resolved by a settlement agreement.

Trial against Alvogen was held in September, 2017. The only issue raised at trial was whether Alvogen’s ANDA Products and processes infringe the ’514 and ’497 patents; Alvogen did not challenge the validity of the patents. In March 2018, the Court issued its opinion finding that Alvogen’s ANDA products and processes would not infringe the ’514 or ’497 patents. We and Indivior appealed the ruling, and the appeal is currently pending before the Federal Circuit. If any company is able to obtain FDA approval for its generic version of Suboxone Sublingual Film, it may be able to launch the product prior to the expiration of any or all the applicable patents protecting our Suboxone Film, which could have a material adverse effect on our business, prospects, results of operations and financial condition.

We are also seeking to enforce our patent rights in multiple cases against BioDelivery Sciences International, Inc., or BDSI. Two cases are currently pending but stayed in the U.S. District Court for the Eastern District of North Carolina:

The first, a declaratory judgment action brought by BDSI against Indivior and Aquestive, seeks declarations of invalidity and non-infringement of U.S. Patents Nos. 7,897,080, or the ’080 patent, 8,652,378, or the ’378 patent, and 8,475,832, or the ’832 patent. This case stayed pending inter partes review of the ’832 patent and reexamination of the ’080 patent.

The second was filed by us and Indivior related to BDSI’s infringing Bunavail product, and alleges infringement of our patent, U.S. Patent No. 8,765,167, or the ’167 patent. This case was initially filed in September 2014 in the U.S. District Court for the District of New Jersey but was transferred to North Carolina. Shortly after the case was filed, BDSI filed an IPR challenging the asserted ’167 patent. On March 24, 2016, the Patent Trial and Appeal Board, or the PTAB, issued a final written decision finding the ’167 patent was not unpatentable. This case is stayed pending the outcome and final determination of the proceedings concerning the ’167 patent (discussed further below).

On January 13, 2017, we also sued BDSI asserting infringement of the ’167 patent by BDSI’s Belbuca product. The case was originally filed in the U.S. District Court for the District of New Jersey and was later transferred to the U.S. District Court for the District of Delaware by agreement of the parties.

On November 28, 2016, after the PTAB issued its final written decisions finding that the ’167 patent was not unpatentable in IPR2015-00165, IPR2015-00168 and IPR2015-00169, BDSI filed a notice of appeal of those decisions to the U.S. Court of Appeals for the Federal Circuit. The case has been fully briefed and the Court heard oral arguments on February 9, 2018. On June 19, 2018, BDSI filed a motion to terminate and remand the appeal, which the Company opposed. On July 31, 2018, the Federal Circuit granted the motion, vacating the PTAB’s decisions and remanding for further proceedings before the PTAB.

In September 2017, Indivior brought suit against Alvogen for infringement of U.S. Patent No. 9,687,454, or the ’454 patent, based on the filing of an ANDA seeking approval for a generic version of Suboxone Sublingual Film, in the U.S. District Court for the District of New Jersey. In February 2018, we and Indivior amended the complaint, which added us as a plaintiff and a claim for infringement of U.S. Patent No. 9,855,221, or the ’221 patent.

Indivior brought suits against Dr. Reddy’s and Teva in September 2017, and against Par and certain affiliates in October 2017, for infringement of the ’454 patent, in the U.S. District Court for the District of New Jersey. Indivior also brought suit in September 2017 against Actavis Laboratories UT, Inc. for infringement of the ’454 patent, in the U.S. District Court for the District of Utah. On March 13, 2018, the Court granted transfer of this case to the U.S. District Court for the District of Delaware.

In February 2018, we and Indivior brought suit against Actavis, Dr. Reddy’s, Teva, and Par and certain affiliates for infringement of the ’221 patent. The suit against Actavis was filed in the U.S. District Court for the District of Utah, and the other three cases were filed in the U.S. District Court for the District of New Jersey.

In April 2018, we brought suit with Indivior against Actavis, Alvogen, Dr. Reddy’s, Teva, and Par and certain affiliates for infringement of U.S. Patent No. 9,931,305, or the ’305 patent. The cases against Alvogen, Dr. Reddy’s, Teva, and Par are pending in the U.S. District Court for the District of New Jersey, and they have each been consolidated with the actions asserting infringement of the ’454 and ’221 patents. Following transfer of the case asserting the ’454 patent from Utah to Delaware, and by agreement of the parties, the cases against Actavis asserting infringement of the ’454, ’221, and ’305 patents are consolidated in a single action pending in the U.S. District Court for the District of Delaware.

All matters involving Par were resolved on May 11, 2018, when we, Indivior, and Par and certain of its affiliates entered into a settlement agreement resolving patent litigation related to SUBOXONE (buprenorphine and Naloxone) Sublingual Film. As required by law, the parties submitted the settlement agreement to the U.S. Federal Trade Commission and the U.S. Department of Justice for review.

On June 14, 2018, Dr. Reddy’s notified the U.S. District Court for the District of New Jersey that the FDA had granted final approval of its ANDAs and that it had launched generic versions of Suboxone Sublingual Film. The Company and Indivior filed a motion for a preliminary injunction and a request for a temporary restraining order, and the Court grant the request on June 15, 2018 enjoining and restraining Dr. Reddy’s from offering for sale, selling or importing its generic versions of Suboxone Sublingual Film. On July 13, 2018, the Court granted the preliminary injunction, which enjoins Dr. Reddy’s from launching a generic version of Suboxone during the pendency of the litigation and until further order from the Court. Dr. Reddy’s appealed the preliminary injunction ruling to the Federal Circuit. Dr. Reddy’s also requested a stay of the injunction pending appeal, which the Company and Indivior opposed. Both the District Judge and the Federal Circuit denied Dr. Reddy’s request for a stay. The appeal is currently being briefed in the Federal Circuit on a modified schedule. Although a specific date has not been set, the Federal Circuit has indicated that oral argument on the appeal will be held in October 2018.

Antitrust Litigation

On September 22, 2016, forty-one states and the District of Columbia, or the States, brought suit against Indivior and us in the U.S. District Court for the Eastern District of Pennsylvania, alleging violations of federal and state antitrust statutes and state unfair trade and consumer protection laws relating to Indivior’s launch of Suboxone Sublingual Film in 2010. After filing, the case was consolidated for pre-trial purposes with the In re Suboxone (Buprenorphine Hydrochloride and Naloxone) Antitrust Litigation, MDL No. 2445, or the Suboxone MDL, a multidistrict litigation relating to putative class actions on behalf of various private plaintiffs against Indivior relating to its launch of Suboxone Sublingual Film. While we were not named as a defendant in the original Suboxone MDL cases, the action brought by the States alleges that we participated in an antitrust conspiracy with Indivior in connection with Indivior’s launch of Suboxone Sublingual Film and engaged in related conduct in violation of federal and state antitrust law. We moved to dismiss the States’ conspiracy claims, and by order dated October 30, 2017, the Court denied our motion to dismiss. We filed an answer denying the States’ claims on November 20, 2017. The fact discovery period closed July 27, 2018, but the parties agreed to conduct certain fact depositions in August 2018. The case will then proceed to expert discovery, which is scheduled to close May 3, 2019.

Product Litigation

On December 27, 2016, we were named as a c-defendant in product liability suit brought by Laurence and Michelle Allen, as Co-Administrators of the Estate of John Bradley Allen, in the U.S. District Court for the Northern District of New York. This suit, which also named Indivior Inc. and Indivior PLC as defendants, asserts causes of action for negligence, strict liability, and failure to warn against the defendants in connection with the manufacture and sale of Suboxone Sublingual Film. Plaintiffs allege that John Bradley Allen’s use of Suboxone Sublingual Film was a substantial contributing cause of his mental anguish and death and seek $100 million in damages. All defendants moved to dismiss the complaint on April 10, 2017, and those motions were fully briefed on May 18, 2017. Aquestive was dismissed from the case on May 9, 2017, and the remainder of the case was closed on August 9, 2018, after the complaint was dismissed in favor of Indivior.

Share-Based Compensation

6 Months Ended

Jun. 30, 2018

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 15.

Share-Based Compensation

(A) Non-Voting Common Share Issuance

The Company had two Performance Unit Plans, both of which were considered to be within the scope of FASB ASC Subtopic 718-30, Compensation – Stock Compensation – Awards Classified as Liabilities. Pursuant to the Plans, vested grants were not exercisable prior to either a change in control of the Company or completion of an IPO. These performance conditions rendered the grants contingent and deferred expense recognition until either of the conditions were satisfied. Neither of these conditions were satisfied as of December 31, 2017.

On April 16, 2018, the Company terminated the Performance Unit Plans. The termination was executed in accordance with the provisions of the Plans’ termination, which required both Board of Directors and the certain plan participant approval. As a result, the Company accelerated the vesting of any unvested performance units and issued non-voting common shares to compensate the performance unit holders.

In accordance with ASC 718, Compensation — Stock Compensation, the Company recorded a total charge to earnings of $27,298 comprised of $19,934 which relates to the fair market value of the non-voting shares at the date the shares were granted and $7,364 related to withholding taxes which the Company elected to pay on behalf of the performance unit holders in the second quarter of 2018 to reflect the compensation cost associated with the issuance of 4,922,353 non-voting common shares. The compensation expense was estimated using an independent third-party valuation prepared in accordance with the American Institute of Certified Public Accountants Practice Aide, Valuation of Privately-Held Company Equity Securities Issued as Compensation.

The assumptions for the determination of the fair value of are provided in the following table:

Valuation assumptions:
Discount rate for lack of marketability	34	%
Volatility	90	%
Weighted average cost of capital	27.5	%

The discount for lack of marketability takes into consideration the illiquid nature of the security as well as other qualitative characteristics that would make it less marketable than the more senior securities. For volatility, the Company used comparable public companies as a basis for its expected volatility. The weighted average cost of capital uses comparable public companies and market interest rate data.

(B) Option Awards

Aquestive issued stock options providing rights to purchase up to 81,068 shares to three key executives and one board member in April 2018. The Company measured the value of stock option grants as of the date of grant using the Black-Scholes-Merton option pricing model. The values determined through the fair value methodology are amortized on a straight-line basis over the vesting term into manufacture and supply, research and development and/or selling, general and administrative expenses, as appropriate. These options provide a contractual term of 10 years, with a fair value at date of grant price of $2.34 and vesting over three annual periods for approximately 94% of the total option shares and vesting over 12 quarterly periods for the remaining 6%.

The assumptions for the determination of the fair value of the options issued in April 2018 are provided in the following table:

Valuation assumptions:
Expected dividend yield	0	%
Expected volatility	90	%
Expected term (years)	6.1
Risk-free interest rate	2.9	%

The risk-free interest rate is the average U.S. Treasury rate with a term that most closely resembles the expected life of the award. The expected term of the award was calculated using the simplified method. For volatility, the Company uses comparable public companies as a basis for its expected volatility. The Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future. A weighted average was utilized taking into account the two vesting periods to determine the expected term in years and the risk-free interest rate. The other assumptions were the same under the two vesting periods. The remaining unrecognized compensation expense is $101 and is expected to be recognized over approximately three years.

The following table summarizes the components of share-based compensation expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six month periods ended June 30, 2018:

Share-based compensation
Manufacturing and supply	$	345
Research and development		2,186
General and administrative		24,774
Total share-based compensation expense	$	27,305

There was no share-based compensation recognized during the three and six months ended June 30, 2017.

Income Taxes

6 Months Ended

Jun. 30, 2018

Income Taxes [Abstract]

Income Taxes

Note 16.

Income Taxes

From its founding through October 31, 2017, the Company was a limited liability company (“LLC”) treated as a partnership for income tax purposes. From November 1, 2017 through December 31, 2017, the LLC elected to be taxed as a C-corporation. On January 1, 2018, MonoSol converted from a Delaware LLC into a Delaware C-corporation pursuant to a statutory conversion and changed its name to Aquestive Therapeutics, Inc.

From November 1, 2017, the Company accounts for income taxes under the asset and liability method, which requires deferred tax assets and liabilities to be recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts and respective tax bases of existing assets and liabilities, as well as net operating loss carryforwards and research and development credit. Valuation allowances are provided if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. For the three months and six months ended June 30, 2018, the Company recorded income tax benefit of $0, on pretax losses of $36,493 and $32,394, respectively.

The Company’s U.S. statutory rate is 21%. The primary factor impacting the effective tax rate for the six months ended June 30, 2018 is the anticipated full year losses which will be incurred by the Company’s operations that have valuation allowances against their net deferred tax assets.

Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Note 17.

Subsequent Events

In preparing the condensed consolidated financial statements as of and for the three and six months ended June 30, 2018, the Company has evaluated subsequent events for recognition and measurement purposes. The Company has concluded that the following events require disclosure in the accompanying consolidated financial statements:

(A)

Perceptive Exercise of Warrants

Immediately prior to pricing of the Company’s initial public offering, Perceptive received 863,400 shares of common stock issuable pursuant to the automatic exercise of warrants from APL’s ownership interest at an exercise price of $.01 per share. As a result, the warrant liability reflected on the Company’s balance sheet as of June 30, 2018 will be reclassified to additional paid in capital during the third quarter of 2018.

(B)

Initial Public Offering of Common Stock

On July 27, 2018, the Company closed the IPO of 4,500,000 shares of common stock at an offering price of $15.00 per share. The Company received net proceeds of $57,545 after deducting underwriter discounts, commissions, and offering related transaction costs of approximately $9,955. On August 15, 2018, the Company was informed that the underwriters exercised their over-allotment option and the Company issued 425,727 additional common shares at $15.00 per share. Upon the closing of such exercise, the Company received additional net proceeds of approximately $5,939, after deducting underwriter discounts of approximately $447. Immediately prior to the consummation of the IPO, all of the Company’s outstanding shares of non-voting common stock were automatically converted into 4,922,353 shares of voting common stock.

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2018
Basis of Presentation [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2017 included in our prospectus dated July 29, 2018 filed with the SEC, pursuant to Rule 424(b) under the Securities Act. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The results of operations and cash flows reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire fiscal year. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

(A)	Principles of Consolidation

Use of Estimates

(B)	Use of Estimates

Deferred Offering Costs

(C)	Deferred Offering Costs

Recent Accounting Pronouncements

(D)	Recent Accounting Pronouncements

The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a material impact on the financial statements.

Corporate Organization and Company Overview (Tables)

6 Months Ended

Jun. 30, 2018

Corporate Organization and Company Overview [Abstract]

Redeemable and Non-redeemable Interests Outstanding for Each Series of Membership Interests

	December 31, 2017
Redeemable Preferred A-3 Interests		5,055,000
Redeemable Preferred A-2 Interests		82,071,200
Nonredeemable A-1 interests		21,526,850
Nonredeemable A interests		16,886,750
Common Interests		121,228,353
		246,768,153

Revenue Recognition and Trade Receivables, net (Tables)

6 Months Ended

Jun. 30, 2018

Revenue Recognition and Trade Receivables, net [Abstract]

Revenue

The Company’s revenues for the three and six months ended June 30, 2018 and 2017 consisted of the following:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Manufacture and supply revenue	$	8,684	$	10,336	$	20,244	$	20,491
License and royalty revenue		4,532		246		14,032		5,469
Co-development and research fees		712		560		3,063		1,617
Revenues	$	13,928	$	11,142	$	37,339	$	27,577

Disaggregation of Revenue

The following table provides additional information pertaining to revenues disaggregated by geographic market for the three and six months ended June 30, 2018 and 2017:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
United States	$	13,380	$	10,684	$	36,577	$	26,572
Ex-United States		548		458		762		1,005
Revenues	$	13,928	$	11,142	$	37,339	$	27,577

Accounts Receivable, Net

Accounts Receivable, net consist of the following:

	June 30, 2018			December 31, 2017

Trade receivables	$	6,662		$	6,156
Other receivables		53			78
Less: allowance for bad debts		(86	)		(55	)
Trade receivables, net	$	6,629		$	6,179

Changes in Allowance for Bad Debts Account

The following table presents the changes in the allowance for bad debts account:

	June 30, 2018		December 31, 2017

Allowance for doubtful accounts at beginning of year	$	55	$	108
Additions charged to bad debt expense		31		-
Recoveries of amounts previously reserved		-		(53	)
Allowance for doubtful accounts at end of the period	$	86	$	55

Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Inventories [Abstract]

Inventories

The Company regularly reviews its inventories for impairment and reserves are established when necessary.

	June 30, 2018		December 31, 2017

Raw material	$	729	$	725
Packaging material		2,301		2,225
Finished goods		1,318		1,064
Total inventory	$	4,348	$	4,014

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2018

Property and Equipment, Net

Property and Equipment, net as of June 30, 2018 and December 31, 2017 consisted of the following:

	Useful Lives	June 30, 2018			December 31, 2017

Machinery	3-15 yrs	$	20,286		$	20,056
Furniture and fixtures	3-15 yrs		1,109			1,109
Leasehold improvements	(a)		21,275			21,271
Computer, network equipment and software	3-7 yrs		2,228			2,108
Construction in progress			1,578			921
			46,476			45,465
Less: accumulated depreciation and amortization			(33,710	)		(32,005	)
Total property and equipment, net		$	12,766		$	13,460

(a)	Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives.

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Net Loss Per Share [Abstract]

Basic and Diluted Net Loss Per Share

Therefore, basic and diluted net loss per share were the same for all periods presented as reflected below.

	For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2018
Numerator:
Net loss	$	(36,493	)	$	(32,394	)
Denominator:
Weighted-average number of common shares – basic and diluted		19,188,624			17,144,492
Income per common share – basic and diluted	$	(1.90	)	$	(1.89	)

Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Accounts Payable and Accrued Expenses [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30, 2018		December 31, 2017

Accounts payable	$	16,522	$	9,601
Accrued salaries, performance bonuses, other compensation and benefits		2,339		3,761
Accrued withholding tax for share-based compensation		1,741		-
Real estate and personal property taxes		263		340
Other		275		301
Total accounts payable and accrued expenses	$	21,140	$	14,003

Warrant Liability (Tables)

6 Months Ended

Jun. 30, 2018

Warrant Liability [Abstract]

Warrant Liability

A roll-forward of warrant liability is as follows:

	Warrant liabilities
Balance as of December 31, 2017	$	7,673
Changes in fair value recognized		1,162
Closing Balance as of June 30, 2018	$	8,835

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Share-Based Compensation [Abstract]

Valuation Assumptions for Determination of Fair Value

The assumptions for the determination of the fair value of are provided in the following table:

Valuation assumptions:
Discount rate for lack of marketability	34	%
Volatility	90	%
Weighted average cost of capital	27.5	%

Valuation Assumptions for Determination of Fair Value of Options

The assumptions for the determination of the fair value of the options issued in April 2018 are provided in the following table:

Valuation assumptions:
Expected dividend yield	0	%
Expected volatility	90	%
Expected term (years)	6.1
Risk-free interest rate	2.9	%

Share-based Compensation Expense

Share-based compensation
Manufacturing and supply	$	345
Research and development		2,186
General and administrative		24,774
Total share-based compensation expense	$	27,305

Corporate Organization and Company Overview (Details) $ / shares in Units, $ in Thousands			1 Months Ended			3 Months Ended	12 Months Ended
	Aug. 15, 2018 USD ($) $ / shares shares	Jul. 27, 2018 USD ($) $ / shares shares	Aug. 15, 2018 USD ($) $ / shares	Jul. 31, 2018 $ / shares shares	Apr. 30, 2018 $ / shares shares	Jun. 30, 2018 $ / shares shares	Dec. 31, 2017 shares
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							246,768,153
Corporate Conversion, Reorganization, Stock Splits and IPO [Abstract]
Conversion ratio for redeemable and non-redeemable stock							1
Common stock, shares authorized (in shares)					25,000	350,000,000
Common stock, par value (in dollars per share) \| $ / shares				$ 0.001		$ 0.001
Reverse stock split (in shares)				12.34
Subsequent Event [Member] \| Initial Public Offering [Member]
Initial Public Offering of Common Stock [Abstract]
Number of common shares issued (in shares)		4,500,000
Share price (in dollars per share) \| $ / shares		$ 15.00
Net proceeds from initial public offering \| $		$ 57,545	$ 63,484
Payments of stock issuance costs \| $		$ (9,955)
Subsequent Event [Member] \| Over-Allotment Option [Member]
Initial Public Offering of Common Stock [Abstract]
Number of common shares issued (in shares)	425,727
Share price (in dollars per share) \| $ / shares	$ 15.00		$ 15.00
Net proceeds from initial public offering \| $	$ 5,939
Payments of stock issuance costs \| $	$ (447)
Redeemable Preferred A-3 Interests [Member]
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							5,055,000
Redeemable Preferred A-2 Interests [Member]
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							82,071,200
Nonredeemable A-1 Interests [Member]
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							21,526,850
Nonredeemable A Interests [Member]
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							16,886,750
Common Interests [Member]
Number of Redeemable and Non-redeemable Interests Outstanding [Abstract]
Number of redeemable and non-redeemable interests outstanding (in shares)							121,228,353
Voting Common Stock [Member]
Corporate Conversion, Reorganization, Stock Splits and IPO [Abstract]
Common stock, shares issued (in shares)						15,077,647
Common stock, par value (in dollars per share) \| $ / shares					$ 0.001
Affect of stock split (unaudited) (in shares)					37,212
Nonvoting Common Stock [Member]
Corporate Conversion, Reorganization, Stock Splits and IPO [Abstract]
Common stock, shares issued (in shares)						4,922,353
Initial Public Offering of Common Stock [Abstract]
Number of common shares issued (in shares)						4,922,353
Aquestive Partners, LLC [Member] \| Voting Common Stock [Member]
Corporate Conversion, Reorganization, Stock Splits and IPO [Abstract]
Common stock, shares issued (in shares)						5,000
Common Stock [Member]
Corporate Conversion, Reorganization, Stock Splits and IPO [Abstract]
Common stock, par value (in dollars per share) \| $ / shares					$ 0.001

Summary of Significant Accounting Policies (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Deferred Offering Costs [Abstract]
Capitalized costs related to equity raising initiatives	$ 4,273

Risks and Uncertainties (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	6 Months Ended	12 Months Ended
	Aug. 15, 2018	Jul. 27, 2018	Aug. 15, 2018	Jun. 30, 2018	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Working capital				$ 3,175	$ 12,813
Initial Public Offering [Member] \| Subsequent Event [Member]
Initial public offering [Abstract]
Number of common shares issued (in shares)		4,500,000
Share price (in dollars per share)		$ 15.00
Net cash proceeds from initial public offering		$ 57,545	$ 63,484
Over-Allotment Option [Member] \| Subsequent Event [Member]
Initial public offering [Abstract]
Number of common shares issued (in shares)	425,727
Share price (in dollars per share)	$ 15.00		$ 15.00
Net cash proceeds from initial public offering	$ 5,939
Revenue [Member] \| Indivior [Member]
Customer Concentration [Abstract]
Concentrations of risk				97.00%	77.00%
Receivables [Member] \| Indivior [Member]
Customer Concentration [Abstract]
Concentrations of risk				94.00%	93.00%

Revenue Recognition and Trade Receivables, net, Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue Recognition and Trade Receivables, net [Abstract]
Maximum period of research and development projects			3 years
Revenue [Abstract]
Revenue	$ 13,928	$ 11,142	$ 37,339	$ 27,577
Manufacture and Supply Revenue [Member]
Revenue [Abstract]
Revenue	8,684	10,336	20,244	20,491
License and Royalty Revenue [Member]
Revenue [Abstract]
Revenue	4,532	246	14,032	5,469
Co-Development and Research Fees [Member]
Revenue [Abstract]
Revenue	$ 712	$ 560	$ 3,063	$ 1,617

Revenue Recognition and Trade Receivables, net, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues by Geographic Market [Abstract]
Revenues	$ 13,928	$ 11,142	$ 37,339	$ 27,577
Minimum [Member]
Revenues by Geographic Market [Abstract]
Trade receivables, period for credit term			30 days
Maximum [Member]
Revenues by Geographic Market [Abstract]
Trade receivables, period for credit term			60 days
United States [Member]
Revenues by Geographic Market [Abstract]
Revenues	13,380	10,684	$ 36,577	26,572
Ex-United States [Member]
Revenues by Geographic Market [Abstract]
Revenues	$ 548	$ 458	$ 762	$ 1,005

Revenue Recognition and Trade Receivables, net, Accounts Receivables, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts Receivable, Net [Abstract]
Trade receivables	$ 6,662	$ 6,156
Other receivables	53	78
Less: allowance for bad debts	(86)	(55)	$ (108)
Trade receivables, net	$ 6,629	$ 6,179

Revenue Recognition and Trade Receivables, net, Changes in Allowance for Bad Debts Account (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Allowance for doubtful accounts at beginning of year	$ 55	$ 108
Additions charged to bad debt expense	31	0
Recoveries of amounts previously reserved	0	(53)
Allowance for doubtful accounts at end of the period	$ 86	$ 55

Material Agreements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
Material Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Supplemental Agreement [Abstract]
Revenues		$ 13,928	$ 11,142	$ 37,339	$ 27,577
License and Royalty Revenue [Member]
Supplemental Agreement [Abstract]
Revenues		4,532	$ 246	$ 14,032	5,469
Commercial Exploitation Agreement with Indivior [Member]
Commercial Exploitation Agreement [Abstract]
License agreement term				7 years
Automatic renewal period of agreement				1 year
Commercial Exploitation Agreement with Indivior [Member] \| Minimum [Member]
Commercial Exploitation Agreement [Abstract]
Notice period of intent not to renew agreement				1 year
Supplemental Agreement with Indivior [Member]
Supplemental Agreement [Abstract]
Receivable, Issuance of process patent rights		2,500		$ 2,500
Supplemental Agreement with Indivior [Member] \| Maximum [Member]
Supplemental Agreement [Abstract]
Receivable, Additional amounts		44,500		44,500
Receivable, Milestone payments and royalties		42,000		42,000
Receivable, Issuance of process patent rights		75,000		75,000
Supplemental Agreement with Indivior [Member] \| License and Royalty Revenue [Member]
Supplemental Agreement [Abstract]
Revenues	$ 17,000	4,250		13,500
License Agreement with Sunovion Pharmaceuticals, Inc. [Member]
License Agreement [Abstract]
Revenues, Milestone revenues recognized				0	5,000
License Agreement with Sunovion Pharmaceuticals, Inc. [Member] \| Maximum [Member]
License Agreement [Abstract]
Remaining milestone payments, Regulatory events		11,000		11,000
Remaining milestone payments, Commercial events		$ 20,000		20,000
Collaboration and License Agreement with Mitsubishi Tanabe [Member]
Supplemental Agreement [Abstract]
Revenues				240
Agreement to Terminate CLA with KemPharm [Member]
Supplemental Agreement [Abstract]
Revenues				$ 0	$ 0

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Level 2 [Member]
Fair Value of Financial Instruments [Abstract]
Assets, fair value	$ 0
Liabilities, fair value	0
Level 3 [Member]
Fair Value of Financial Instruments [Abstract]
Warrant liability, fair value	$ 8,835	$ 7,673

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventories [Abstract]
Raw material	$ 729	$ 725
Packaging material	2,301	2,225
Finished goods	1,318	1,064
Total inventory	$ 4,348	$ 4,014

Property and Equipment, Net (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Dec. 31, 2017

Less: accumulated depreciation and amortization

$ 46,476

$ 45,465

(33,710)

(32,005)

Total property and equipment, net

12,766

13,460

Property Plant and Equipment Income Statement Disclosures [Abstract]

Total depreciation and amortization

765

$ 938

1,705

$ 1,853

Machinery [Member]

Machinery [Member] | Minimum [Member]

20,286

$ 20,286

20,056

Machinery [Member] | Maximum [Member]

3 years

Furniture and Fixtures [Member]

15 years

Furniture and Fixtures [Member] | Minimum [Member]

1,109

$ 1,109

1,109

Furniture and Fixtures [Member] | Maximum [Member]

3 years

Leasehold Improvements [Member]

15 years

Computer, Network Equipment and Software [Member]

^[1]

21,275

$ 21,275

21,271

Computer, Network Equipment and Software [Member] | Minimum [Member]

2,228

$ 2,228

2,108

Computer, Network Equipment and Software [Member] | Maximum [Member]

3 years

Construction in Progress [Member]

7 years