Luna Innovations (LUNA) 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'LUNA	'
Entity Registrant Name	'LUNA INNOVATIONS INC	'
Entity Central Index Key	'0001239819	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	14,735,401

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$10,886,015	$7,778,541
Accounts receivable, net	10,512,087	5,408,281
Inventory, net	3,294,498	3,346,177
Prepaid expenses	542,788	708,974
Other current assets	70,208	70,208
Total current assets	25,305,596	17,312,181
Property and equipment, net	1,960,095	2,060,709
Intangible assets, net	223,366	288,475
Other assets	23,918	42,710
Total assets	27,512,975	19,704,075
Current Liabilities:	'	'
Current portion of long-term debt obligation	1,500,000	1,500,000
Current portion of capital lease obligation	67,621	66,617
Accounts payable	1,257,633	1,401,764
Accrued liabilities	3,061,184	3,546,585
Deferred credits	552,831	691,424
Total current liabilities	6,439,269	7,206,390
Long-term debt obligation	'	625,000
Long-term lease obligation	93,021	110,307
Total liabilities	6,782,290	7,941,697
Commitments and contingencies	'	'
Stockholders’ equity:	'	'
Preferred stock, par value $ 0.001, 1,321,514 shares authorized, issued and outstanding at March 31, 2014 and December 31, 2013	1,322	1,322
Common stock, par value $ 0.001, 100,000,000 shares authorized, 14,731,652 and 14,527,335 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	15,066	14,842
Additional paid-in capital	63,213,966	62,756,571
Accumulated deficit	-42,499,669	-51,010,357
Total stockholders’ equity	20,730,685	11,762,378
Total liabilities and stockholders’ equity	$27,512,975	$19,704,075

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	1,321,514	1,321,514
Preferred stock, shares issued	1,321,514	1,321,514
Preferred stock, shares outstanding	1,321,514	1,321,514
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	14,731,652	14,527,335
Common stock, shares outstanding	14,731,652	14,527,335

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Technology development revenues	$2,675,452	$2,627,241
Products and licensing revenues	1,796,429	1,478,127
Total revenues	4,471,881	4,105,368
Cost of revenues:	'	'
Technology development costs	2,025,155	2,184,914
Products and licensing costs	894,640	785,728
Total cost of revenues	2,919,795	2,970,642
Gross Profit	1,552,086	1,134,726
Operating expense:	'	'
Selling, general and administrative	2,755,078	2,663,108
Research, development and engineering	749,154	712,952
Total operating expense	3,504,232	3,376,060
Operating loss	-1,952,146	-2,241,334
Other (expense)/income:	'	'
Other income, net	82,106	98,154
Interest expense	-32,365	-58,179
Total other income	49,741	39,975
Loss from continuing operations before income taxes	-1,902,405	-2,201,359
Income tax benefit	-769,190	-882,427
Net loss from continuing operations	-1,133,215	-1,318,932
Income from discontinued operations, net of income taxes	9,673,439	4,104,529
Net income	8,540,224	2,785,597
Preferred stock dividend	29,536	23,629
Net income attributable to common stockholders	$8,510,688	$2,761,968
Net loss per share from continuing operations:	'	'
Basic (in dollars per share)	($0.08)	($0.09)
Diluted (in dollars per share)	($0.08)	($0.09)
Net income per share from discontinued operations:	'	'
Basic (in dollars per share)	$0.66	$0.29
Diluted (in dollars per share)	$0.56	$0.25
Net income per share attributable to common stockholders:	'	'
Basic (in dollars per share)	$0.58	$0.20
Diluted (in dollars per share)	$0.49	$0.17
Weighted average common shares and common equivalent shares outstanding:	'	'
Basic (in shares)	14,653,262	14,011,814
Diluted (in shares)	17,424,769	16,615,574

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows used in operating activities	'	'
Net income	$8,540,224	$2,785,597
Adjustments to reconcile net income to net cash used in operating activities	'	'
Depreciation and amortization	202,305	228,267
Share-based compensation	230,939	313,516
Gain on sale of discontinued operations, net of income taxes	-9,701,515	-4,046,497
Tax benefit from utilization of net operating loss carryforward	-787,318	-843,785
Change in assets and liabilities:	'	'
Accounts receivable	896,194	2,039,952
Inventory	13,314	-185,004
Other current assets	112,286	-127,333
Other assets	18,792	53,792
Accounts payable and accrued expenses	-821,763	-231,430
Deferred credits	-138,593	-259,427
Net cash used in operating activities	-1,435,135	-272,352
Cash flows provided by investing activities	'	'
Acquisition of property and equipment	-67,944	-50,255
Intangible property costs	-126,091	-11,777
Proceeds from sale of discontinued operations, net of fees	4,958,891	4,522,460
Net cash provided by investing activities	4,764,856	4,460,428
Cash flows used in financing activities	'	'
Payments on capital lease obligations	-16,282	-13,221
Payment of debt obligations	-375,000	-250,000
Proceeds from the exercise of options and warrants	169,035	1,682
Net cash used in financing activities	-222,247	-261,539
Net increase in cash and cash equivalents	3,107,474	3,926,537
Cash and cash equivalents—beginning of period	7,778,541	6,340,461
Cash and cash equivalents—end of period	10,886,015	10,266,998
Supplemental disclosure of cash flow information	'	'
Cash paid for interest	30,000	35,063
Dividend on preferred stock, 19,823 shares of common stock issuable for the quarter ended March 31, 2014 and 2013	29,536	23,629
Cash paid for income taxes	$0	$14,010

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Parenthetical)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Cash Flows [Abstract]	'	'
Dividend on preferred stock, shares of common stock issuable	19,823	19,823

Basis_of_Presentation_and_Sign

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation and Significant Accounting Policies	'
	Basis of Presentation and Significant Accounting Policies
	Nature of Operations
	Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”) is incorporated in the State of Delaware and headquartered in Roanoke, Virginia. We develop, manufacture and market fiber optic sensing, test and measurement products and are focused on bringing new and innovative technology solutions to measure, monitor, protect and improve critical processes in the aerospace, automotive, energy, composite, telecommunications and defense industries. We are organized into two main groups, which work closely together to turn ideas into products: our Technology Development segment and our Products and Licensing segment. Our business model is designed to accelerate the process of bringing new and innovative technologies to market. We have a history of net losses from continuing operations from 2005 through the three months ended March 31, 2014 attributable to our operations and other charges. We have historically managed our liquidity through cost reduction initiatives, debt financings and capital market transactions.
	Since the second half of 2008, the increased turmoil in the U.S. and global capital markets and a global slowdown of economic growth created a substantially more difficult business environment. Our ability to access the capital markets may be limited. Economic and market conditions may not improve significantly during the remainder of 2014 and could get worse.
	Although there can be no guarantees, we believe that our current cash balance, in addition to the funds available to us under the Credit Facilities described in Note 5below, will provide adequate liquidity for us to meet our working capital needs over the next twelve months.
	Unaudited Interim Financial Information
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments, consisting of only normal recurring accruals considered necessary to present fairly our financial position at March 31, 2014, results of operations for the three months ended March 31, 2014 and 2013, and cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on April 10, 2014 and amended on April 15, 2014. As used herein, the terms “Luna”, the “Company”, “we”, “our” and “us” mean Luna Innovations Incorporated and its consolidated subsidiaries.
	Consolidation Policy
	Our consolidated financial statements are prepared in accordance with U.S. GAAP and include the accounts of the Company and our wholly owned subsidiaries. We eliminate from our financial results all significant intercompany transactions. We do not have any investments in entities we believe are variable interest entities for which we are the primary beneficiary.
	Fair Value Measurements
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:
	•	Level 1—Quoted prices for identical instruments in active markets
	•	Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets
	•	Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable
	The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. The carrying value of our debt approximates fair value, as we consider the floating interest rate on our credit facilities with Silicon Valley Bank to be at market. Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. This includes items such as nonfinancial assets and liabilities initially measured at fair value in a business combination and nonfinancial long-lived asset groups measured at fair value for an impairment assessment. In general, nonfinancial assets including intangible assets and property and equipment are measured at fair value when there is an indication of impairment and are recorded at fair value only when any impairment is recognized.
	Use of Estimates
	The preparation of our consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions.
	Net Loss Per Share from Continuing Operations and Net Income Attributable to Common Stockholders
		Net loss per share from continuing							Net income attributable to common stockholders per share
		operations
		For the three months ended March 31,							For the three months ended March 31,
		2014				2013			2014			2013
	Numerator:
	Net loss from continuing operations	$	(1,133,215	)		$	(1,318,932	)
	Net income attributable to stockholders								$	8,510,688		2,761,968
	Denominator:
	Basic weighted average common shares outstanding	14,653,262				14,011,814			14,653,262			14,011,814
	Weighted average common stock equivalents from assumed exercise of stock options and restricted stock awards	—				—			1,115,645			1,047,013
	Convertible preferred stock	—				—			1,321,514			1,321,514
	Preferred stock dividends	—				—			334,348			235,233
	Diluted weighted average common shares outstanding	14,653,262				14,011,814			17,424,769			16,615,574
	Basic net loss per share from continuing operations	$	(0.08	)		$	(0.09	)
	Diluted net loss per share from continuing operations	$	(0.08	)		$	(0.09	)
	Basic net income per share attributable to common stockholders								$	0.58		$	0.2
	Diluted net income per share attributable to common stockholders								$	0.49		$	0.17
	Weighted-average anti-dilutive shares related to:
	Outstanding stock options	4,440,731				5,422,130			3,593,929			4,786,630
	Convertible preferred stock	1,321,514				1,321,514			—			—
	Preferred stock dividends	314,525				195,587			—			—
	Restricted stock	268,843				169,515			—			—
	Carilion warrants	366,000				366,000			366,000			366,000
	The weighted-average anti-dilutive shares shown in the foregoing table were not included in the computation of diluted net loss from continuing operations and net income per share attributable to common stockholders. For reporting periods in which we have reported net income attributable to common stockholders, weighted-average anti-dilutive shares comprise stock options that have exercise prices above the average stock price for the period. For reporting periods in which we have a net loss from continuing operations, the weighted-average anti-dilutive shares comprise shares that would have been dilutive had we had net income from continuing operations (e.g., convertible preferred stock, preferred stock dividends, restricted stock, warrants and stock options that have exercise prices below the average stock price for the period), plus the number of stock options that would be anti-dilutive had we had a net income from continuing operations.
	Share-Based Compensation
	We recognize share-based compensation expense based upon the fair value of the underlying equity award on the date of the grant. For restricted stock awards and restricted stock units, we recognize expense based upon the price of our underlying stock at the date of the grant. We have elected to use the Black-Scholes option pricing model to value any option or warrant awards granted. We amortize share-based compensation for such awards on a straight-line basis over the related service period of the awards taking into account the effects of the employees’ expected exercise and post-vesting employment termination behavior. To compute the volatility used in this model we use the historical volatility of our common stock over the expected life of options granted. The risk-free interest rate is based on U.S. Treasury interest rates, the terms of which are consistent with the expected life of the stock options. The expected life and estimated post-employment termination behavior is based upon historical experience of homogeneous groups within our company. We also assume an expected dividend yield of zero for all periods, as we have never paid a dividend on our common stock and do not have any plans to do so in the future.
	The fair value of each option granted during the three months ended March 31, 2014 and 2013 was estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:
		Three months ended March 31, 2014		Three months ended March 31, 2013
	Risk-free interest rate	2.14%		1.27%
	Expected life of options (in years)	7.5		7.5
	Expected stock price volatility	106%		108%
	A summary of the activity for our 2003 Stock Plan and 2006 Equity Incentive Plan is presented below for the three months ended March 31, 2014:
		Options Outstanding											Options Exercisable
		Number of			Price per Share		Weighted			Aggregate			Number of	Weighted		Aggregate
		Shares			Range		Average			Intrinsic			Shares	Average		Intrinsic
							Exercise			Value (1)				Exercise		Value (1)
							Price							Price
	Balance, January 1, 2014	5,279,229			$0.35 - $6.55		$	2.11		$	784,154		4,012,378	$	2.28	$	697,826
	Granted	10,000			$1.53		$	1.53
	Exercised	(204,317	)		$0.35 - $1.27		$	0.83
	Canceled	(202,845	)		$0.82 - $2.46		$	1.39
	Balance, March 31, 2014	4,882,067			$0.35 - $6.55		$	2.19		$	733,958		3,983,733	$	2.29	$	652,065
	-1	The intrinsic value of an option represents the amount by which the market value of the stock exceeds the exercise price of the option of in-the-money options only. The aggregate intrinsic value is based on the closing price of our Common Stock on the NASDAQ Capital Market, as applicable, on the respective dates.
	At March 31, 2014, the outstanding stock options to purchase an aggregate of 4.9 million shares had a weighted average remaining contractual term of 5.5 years, and the exercisable stock options to purchase an aggregate of 4.0 million shares had a weighted average remaining contractual term of 4.9 years.
For the three months ended March 31, 2014 and 2013, we recognized $0.2 million and $0.3 million, respectively, in share-based compensation expense, which is included in our selling, general and administrative expenses in the accompanying consolidated financial statements. We expect to recognize $1.4 million in share-based compensation expense over the weighted average remaining service period of 1.3 years for stock options outstanding as of March 31, 2014.
Intangible Assets and Other Long Lived Assets
Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair market value, less cost to sell.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation.

Discontinued_Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Discontinued Operations	'
	Discontinued Operations
	On March 1, 2013, we completed the sale of our Secure Computing and Communications group, ("SCC"), which was part of our Technology Development segment, to an unaffiliated third party for a gross sales price of $6.1 million of cash. Prior to the sale, SCC provided innovative solutions designed to secure critical technologies within the U.S. government. SCC conducted applied research and provided services to the government in this area, with its revenues primarily derived from U.S. government contracts and purchase orders. Of the purchase price, we received approximately $5.4 million at closing and $110,000 on December 31, 2013. During December 2013, an additional $475,000 in purchase price was released to us from escrow and another $125,000 is in escrow and may be released 18 months after the closing of the transaction, subject to any indemnification claims of the acquirer. In connection with the sale, we incurred approximately $0.9 million in transaction costs that included various charges related to investment banker and legal fees. In addition, the acquirer has entered into a sublease with us for the facilities historically occupied by SCC through May1, 2014 for a total of $0.1 million during the three months ended March 31, 2014. In the transaction, we sold the equipment, contracts and intellectual property associated with SCC. Approximately 20 employees of SCC transferred to the acquirer. Included in the transaction were current assets of approximately $0.2 million and long term assets with a net book value of approximately $0.1 million, at February 28, 2013.We recorded an aggregate after-tax gain on the sale of SCC of $3.3 million or $0.20 per diluted share in our results of operations for the year ended December 31, 2013.
	We have reported the results of operations of SCC as discontinued operations in our consolidated financial statements. We allocated a portion of the consolidated tax expense to discontinued operations based on the ratio of the discontinued group’s income or loss before allocations. Through December 31, 2013, we continued to act on behalf of the purchaser and bill the government for certain contracts that have not yet been transferred by the government to the purchaser. We recorded these amounts as revenues, with an offsetting amount as cost of revenues, within (loss)/income from discontinued operations.
	On January 21, 2014, we completed the sale of our medical shape sensing business, which was part of our Products and Licensing segment, to an unaffiliated third party for a gross sales price of up to $30.0 million, of which $6.0 million was paid at closing and a second $6.0 million in cash was received on April 22, 2014, plus up to $8.0 million upon the accomplishment by the buyer of certain technical specifications and up to $10.0 million in potential future royalties. We had been engaged since 2007 in various development projects developing a fiber optic-based shape sensing and position tracking system to be integrated in the buyer's products. Also as part of the transaction, the buyer has hired certain employees of Luna, many of whom were historically engaged in this development project. In connection with this sale, we incurred approximately $1.1 million in transaction costs that included various charges related to investment banker and legal fees, along with discretionary bonus to a former employee who was hired by the buyer. Included in the transaction were current and long term assets with a net book value of approximately $0.3 million on January 20, 2014. Our medical shape sensing business accounted for12% of our revenues, and 10% of our costs of revenues for the year ended December 31, 2013. We recorded an aggregate after-tax gain on the sale of medical shape sensing business of $9.7 million or $0.56 per diluted share in our first quarter 2014 results.
	We have reported the results of operations of SCC and our medical shape sensing business as discontinued operations in our consolidated financial statements. We allocated a portion of the consolidated tax expense to discontinued operations based on the ratio of the discontinued groups' income before allocations.
	The key components of income from discontinued operations were as follows:
		Three Months Ended
		31-Mar-14			31-Mar-13
	Net revenues	$	—		$	1,033,124
	Cost of revenues	46,204			706,705
	Operating expenses	—			229,745
	(Loss)/Income before income taxes	(46,204		)	96,674
	Allocated tax (benefit)/expense	(18,128		)	38,642
	Operating (loss)/ income from discontinued operations	(28,076		)	58,032
	Gain on sale, net of $1.0 million, and $0.9 million, of related income taxes, respectively	9,701,515			4,046,497
	Income from discontinued operations, net of income taxes	$	9,673,439		$	4,104,529

Inventory

Inventory	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	Inventory
	Inventory consists of finished goods, work-in-process and parts valued at the lower of cost (determined on the first-in, first-out basis) or market. We provide reserves for estimated obsolescence or unmarketable inventory equal to the difference between the cost of the inventory and the estimated market value based upon assumptions about future demand and market conditions.
	Components of inventory are as follows:
		March 31,		December 31,
		2014		2013
	Finished goods	$	666,980	$	719,574
	Work-in-process	454,261		361,754
	Parts	2,377,325		2,339,595
		3,498,566		3,420,923
	Less: Inventory reserves	204,068		74,746
	Total inventory, net	$	3,294,498	$	3,346,177

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2014
Payables and Accruals [Abstract]	'
Accrued Liabilities	'
	Accrued Liabilities
		31-Mar-14		31-Dec-13
	Accrued compensation	$	1,743,898	$	2,205,612
	Accrued sub-contracts	348,348		297,510
	Accrued professional fees	211,035		279,991
	Accrued income tax	182,340		13,143
	Deferred rent	96,662		102,569
	Royalties	64,453		290,025
	Warranty reserve	56,188		56,700
	Accrued liabilities - other	358,260		301,035
	Total Accrued Liabilities	$	3,061,184	$	3,546,585

Debt

Debt	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Debt	'
	Debt
	Silicon Valley Bank Credit Facilities
	We currently have a Loan and Security Agreement with Silicon Valley Bank (“SVB”) in which we have a term loan with an original borrowing amount of $6.0 million (the “Term Loan”). The Term Loan is to be repaid by us in 48 monthly installments, plus accrued interest payable monthly in arrears, and unless earlier terminated, matures on the earlier of either May 1, 2015 or an event of a default under the loan agreement. The Term Loan carries a floating annual interest rate equal to SVB’s prime rate then in effect plus 2%. We may repay amounts due under the Term Loan at any time with no penalties.
	In addition to the terms and conditions of the Term Loan, we also have a revolving credit facility (the “Line of Credit” and together with the Term Loan, the “Credit Facilities”) with a maximum borrowing capacity of $1.0 million. The interest rate on the Line of Credit is SVB’s prime rate plus 1.25%, payable monthly in arrears, and we are required to pay an unused Line of Credit fee of one-quarter of one percent (0.25%), payable monthly. We may terminate the Line of Credit for a termination fee of $10,000, which fee would not be payable in the event that the Line of Credit is replaced by another loan facility with SVB. The Line of Credit has a maturity date of May 17, 2014. We are currently discussing extending this maturity date.
	Amounts due under the Credit Facilities are secured by substantially all of our assets, including intellectual property, personal property and bank accounts.
	On March 21, 2013, we entered into a Fourth Loan Modification Agreement with SVB that replaced the existing financial covenants with a single covenant that we maintain a minimum cash balance of $5.0 million with SVB. Effective on January 21, 2014, in connection with our sale of assets to Intuitive, this covenant was modified to reduce the required minimum cash balance to $3.5 million. The Credit Facilities also require us to observe a number of operational covenants, including protection and registration of intellectual property rights, and certain customary negative covenants. As of March 31, 2014, we were in compliance with all covenants under the Credit Facilities.
	In addition, the Credit Facilities contain customary events of default, including nonpayment of principal, interest or other amounts, violation of covenants, material adverse change, an event of default under any subordinated debt documents, incorrectness of representations and warranties in any material respect, bankruptcy, judgments in excess of a threshold amount, and violations of other agreements in excess of a threshold amount. If any event of default occurs SVB may declare due immediately all borrowings under the Credit Facilities and foreclose on the collateral. Furthermore, an event of default under the Credit Facilities would result in an increase in the interest rate on any amounts outstanding. As of March 31, 2014, there were no events of default on our Credit Facilities.
	The balance under the Term Loan at March 31, 2014 was $1.8 million of which $0.3 million was classified as long-term and $1.5 million was classified as short-term. No amounts were outstanding under the Line of Credit and the available credit capacity was $1.0 million at March 31, 2014.

Capital_Stock_and_Additional_P

Capital Stock and Additional Paid-in Capital	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Capital Stock and Additional Paid-in Capital	'
	Capital Stock and Additional Paid-in Capital
	The following details our equity transactions during the three months ended March 31, 2014:
		Preferred Stock		Common Stock		Additional
						Paid-in
						Capital
		Shares	$	Shares	$	$
	Balances, December 31, 2013	1,321,514	1,322	14,527,335	14,842	62,756,571
	Exercise of stock options	—	—	204,317	204	168,831
	Share-based compensation (1)	—	—	—	—	259,048
	Stock dividends to Carilion Clinic(2)	—	—	—	20	29,516
	Balances, March 31, 2014	1,321,514	1,322	14,731,652	15,066	63,213,966
	-1	Share-based compensation includes the acceleration of stock options for a former employee included in the sale of our medical shape sensing business to Intuitive.
	-2	The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to March 31, 2014. For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through March 31, 2014, the Series A Preferred Stock issued to Carilion has accrued $739,711 in dividends. The accrued and unpaid dividends as of March 31, 2014 will be paid by the issuance of 334,348 shares of our common stock upon Carilion’s written request.

Operating_Segments

Operating Segments	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Operating Segments	'
	Operating Segments
	Our operations are divided into two operating segments—“Technology Development” and “Products and Licensing”.
	The Technology Development segment provides applied research to customers in our areas of focus. Our engineers and scientists collaborate with our network of government, academic and industry experts to identify technologies and ideas with promising market potential. We then compete to win fee-for-service contracts from government agencies and industrial customers who seek innovative solutions to practical problems that require new technology. The Technology Development segment derives its revenue primarily from services.
	The Products and Licensing segment derives its revenue from product sales, funded product development and technology licenses. This segment previously included our medical shape sensing business, which was sold on January 21, 2014, and the amounts below do not include the revenue, expenses and assets of our medical shape sensing business.
	Through March 31, 2014, our Chief Executive Officer and his direct reports collectively represented our chief operating decision makers, and they evaluated segment performance based primarily on revenue and operating income or loss. The accounting policies of our segments are the same as those described in the summary of significant accounting policies (see Note 1 to our Financial Statements, “Organization and Summary of Significant Accounting Policies,” presented in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on April 10, 2014 and amended on April 15, 2014).
	The table below presents revenues and operating loss for reportable segments not including discontinued operations:
		Three Months Ended
		March 31,
		2014			2013
		(unaudited)
	Revenues:
	Technology development revenues	$	2,675,452		$	2,627,241
	Products and licensing revenues	1,796,429			1,478,127
	Total revenues	$	4,471,881		$	4,105,368
	Technology development operating loss	$	(1,527,646	)	$	(951,763	)
	Products and licensing operating loss	(424,500		)	(1,289,571		)
	Total operating loss	$	(1,952,146	)	$	(2,241,334	)
	Depreciation, technology development	$	56,743		$	101,566
	Depreciation, products and licensing	$	38,100		$	57,142
	Amortization, technology development	$	64,293		$	44,514
	Amortization, products and licensing	$	43,169		$	25,045
	The table below presents assets for reportable segments:
		March 31,			December 31,
		2014			2013
	Total segment assets:
	Technology development	$	16,460,555		$	10,208,433
	Products and licensing	11,052,420			9,495,642
	Total	$	27,512,975		$	19,704,075
	Property plant and equipment, and intangible assets, technology development	$	1,306,328		$	1,217,083
	Property plant and equipment, and intangible assets, products and licensing	$	877,133		$	1,132,101
	There are no material inter-segment revenues for any period presented.
	The United States Government accounted for approximately 62% and 66% of total consolidated revenues for the three months ended March 31, 2014 and 2013, respectively.
	International revenues (customers outside the United States) accounted for approximately 19% and 26% of total consolidated revenues for the three months ended March 31, 2014 and 2013, respectively.

Contingencies_and_Guarantees

Contingencies and Guarantees	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Contingencies and Guarantees	'
	Contingencies and Guarantees
	We are from time to time involved in certain legal proceedings in the ordinary course of conducting our business. While the ultimate liability pursuant to these actions cannot currently be determined, we believe these legal proceedings will not have a material adverse effect on our financial position or results of operations.
	In the fourth quarter of 2013 we executed two non-cancelable purchase orders totaling $1.4 million for multiple shipments of tunable lasers to be delivered over an 18-month period beginning in 2013. At March 31, 2014, approximately $1.0 million of this commitment remained.
	We have entered into indemnification agreements with our officers and directors, to the extent permitted by law, pursuant to which we have agreed to reimburse the officers and directors for legal expenses in the event of litigation and regulatory matters. The terms of these indemnification agreements provide for no limitation to the maximum potential future payments. We have a directors and officers insurance policy that may, in certain instances, mitigate the potential liability and payments.

Basis_of_Presentation_and_Sign1

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Nature of Operations	'
	Nature of Operations
	Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”) is incorporated in the State of Delaware and headquartered in Roanoke, Virginia. We develop, manufacture and market fiber optic sensing, test and measurement products and are focused on bringing new and innovative technology solutions to measure, monitor, protect and improve critical processes in the aerospace, automotive, energy, composite, telecommunications and defense industries. We are organized into two main groups, which work closely together to turn ideas into products: our Technology Development segment and our Products and Licensing segment. Our business model is designed to accelerate the process of bringing new and innovative technologies to market. We have a history of net losses from continuing operations from 2005 through the three months ended March 31, 2014 attributable to our operations and other charges. We have historically managed our liquidity through cost reduction initiatives, debt financings and capital market transactions.
	Since the second half of 2008, the increased turmoil in the U.S. and global capital markets and a global slowdown of economic growth created a substantially more difficult business environment. Our ability to access the capital markets may be limited. Economic and market conditions may not improve significantly during the remainder of 2014 and could get worse.
	Although there can be no guarantees, we believe that our current cash balance, in addition to the funds available to us under the Credit Facilities described in Note 5below, will provide adequate liquidity for us to meet our working capital needs over the next twelve months.
Unaudited Interim Financial Information	'
	Unaudited Interim Financial Information
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments, consisting of only normal recurring accruals considered necessary to present fairly our financial position at March 31, 2014, results of operations for the three months ended March 31, 2014 and 2013, and cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on April 10, 2014 and amended on April 15, 2014. As used herein, the terms “Luna”, the “Company”, “we”, “our” and “us” mean Luna Innovations Incorporated and its consolidated subsidiaries.
Consolidation Policy	'
	Consolidation Policy
	Our consolidated financial statements are prepared in accordance with U.S. GAAP and include the accounts of the Company and our wholly owned subsidiaries. We eliminate from our financial results all significant intercompany transactions. We do not have any investments in entities we believe are variable interest entities for which we are the primary beneficiary.
Fair Value Measurements	'
	Fair Value Measurements
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:
	•	Level 1—Quoted prices for identical instruments in active markets
	•	Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets
	•	Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable
	The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. The carrying value of our debt approximates fair value, as we consider the floating interest rate on our credit facilities with Silicon Valley Bank to be at market. Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. This includes items such as nonfinancial assets and liabilities initially measured at fair value in a business combination and nonfinancial long-lived asset groups measured at fair value for an impairment assessment. In general, nonfinancial assets including intangible assets and property and equipment are measured at fair value when there is an indication of impairment and are recorded at fair value only when any impairment is recognized.
Use of Estimates	'
	Use of Estimates
	The preparation of our consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions.
Net Loss Per Share from Continuing Operations and Net Income Attributable to Common Stockholders	'
	Per Share from Continuing Operations and Net Income Attributable to Common Stockholders
		Net loss per share from continuing						Net income attributable to common stockholders per share
		operations
		For the three months ended March 31,						For the three months ended March 31,
		2014			2013			2014		2013
	Numerator:
	Net loss from continuing operations	$	(1,133,215	)	$	(1,318,932	)
	Net income attributable to stockholders							$	8,510,688	2,761,968
	Denominator:
	Basic weighted average common shares outstanding	14,653,262			14,011,814			14,653,262		14,011,814
	Weighted average common stock equivalents from assumed exercise of stock options and restricted stock awards	—			—			1,115,645		1,047,013
	Convertible preferred stock	—			—			1,321,514		1,321,514
	Preferred stock dividends	—			—			334,348		235,233
	Diluted weighted average common shares outstanding	14,653,262			14,011,814			17,424,769		16,615,574
	Basic net loss per share from continuing operations	$	(0.08	)	$	(0.09	)
	Diluted net loss per share from continuing operations	$	(0.08	)	$	(0.09	)
	Basic net income per share attributable to common stockholders							$	0.58	$	0.2
	Diluted net income per share attributable to common stockholders							$	0.49	$	0.17
	Weighted-average anti-dilutive shares related to:
	Outstanding stock options	4,440,731			5,422,130			3,593,929		4,786,630
	Convertible preferred stock	1,321,514			1,321,514			—		—
	Preferred stock dividends	314,525			195,587			—		—
	Restricted stock	268,843			169,515			—		—
	Carilion warrants	366,000			366,000			366,000		366,000
	The weighted-average anti-dilutive shares shown in the foregoing table were not included in the computation of diluted net loss from continuing operations and net income per share attributable to common stockholders. For reporting periods in which we have reported net income attributable to common stockholders, weighted-average anti-dilutive shares comprise stock options that have exercise prices above the average stock price for the period. For reporting periods in which we have a net loss from continuing operations, the weighted-average anti-dilutive shares comprise shares that would have been dilutive had we had net income from continuing operations (e.g., convertible preferred stock, preferred stock dividends, restricted stock, warrants and stock options that have exercise prices below the average stock price for the period), plus the number of stock options that would be anti-dilutive had we had a net income from continuing operations.
Share-Based Compensation	'
	Share-Based Compensation
	We recognize share-based compensation expense based upon the fair value of the underlying equity award on the date of the grant. For restricted stock awards and restricted stock units, we recognize expense based upon the price of our underlying stock at the date of the grant. We have elected to use the Black-Scholes option pricing model to value any option or warrant awards granted. We amortize share-based compensation for such awards on a straight-line basis over the related service period of the awards taking into account the effects of the employees’ expected exercise and post-vesting employment termination behavior. To compute the volatility used in this model we use the historical volatility of our common stock over the expected life of options granted. The risk-free interest rate is based on U.S. Treasury interest rates, the terms of which are consistent with the expected life of the stock options. The expected life and estimated post-employment termination behavior is based upon historical experience of homogeneous groups within our company. We also assume an expected dividend yield of zero for all periods, as we have never paid a dividend on our common stock and do not have any plans to do so in the future.
Intangible Assets and Other Long Lived Assets	'
	Intangible Assets and Other Long Lived Assets
	Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair market value, less cost to sell.
Reclassifications	'
	Reclassifications
	Certain prior year amounts have been reclassified to conform to the current year presentation.

Basis_of_Presentation_and_Sign2

Basis of Presentation and Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Per Share Net Loss from Continuing Operations and Net Income Attributable to Common Stockholders	'
	Per Share from Continuing Operations and Net Income Attributable to Common Stockholders
		Net loss per share from continuing							Net income attributable to common stockholders per share
		operations
		For the three months ended March 31,							For the three months ended March 31,
		2014				2013			2014			2013
	Numerator:
	Net loss from continuing operations	$	(1,133,215	)		$	(1,318,932	)
	Net income attributable to stockholders								$	8,510,688		2,761,968
	Denominator:
	Basic weighted average common shares outstanding	14,653,262				14,011,814			14,653,262			14,011,814
	Weighted average common stock equivalents from assumed exercise of stock options and restricted stock awards	—				—			1,115,645			1,047,013
	Convertible preferred stock	—				—			1,321,514			1,321,514
	Preferred stock dividends	—				—			334,348			235,233
	Diluted weighted average common shares outstanding	14,653,262				14,011,814			17,424,769			16,615,574
	Basic net loss per share from continuing operations	$	(0.08	)		$	(0.09	)
	Diluted net loss per share from continuing operations	$	(0.08	)		$	(0.09	)
	Basic net income per share attributable to common stockholders								$	0.58		$	0.2
	Diluted net income per share attributable to common stockholders								$	0.49		$	0.17
	Weighted-average anti-dilutive shares related to:
	Outstanding stock options	4,440,731				5,422,130			3,593,929			4,786,630
	Convertible preferred stock	1,321,514				1,321,514			—			—
	Preferred stock dividends	314,525				195,587			—			—
	Restricted stock	268,843				169,515			—			—
	Carilion warrants	366,000				366,000			366,000			366,000
Assumptions Used to Estimate Fair Value of Option Granted	'
	The fair value of each option granted during the three months ended March 31, 2014 and 2013 was estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:
		Three months ended March 31, 2014		Three months ended March 31, 2013
	Risk-free interest rate	2.14%		1.27%
	Expected life of options (in years)	7.5		7.5
	Expected stock price volatility	106%		108%
Summary of Activity of 2003 Stock Plan and 2006 Equity Incentive Plan	'
	A summary of the activity for our 2003 Stock Plan and 2006 Equity Incentive Plan is presented below for the three months ended March 31, 2014:
		Options Outstanding											Options Exercisable
		Number of			Price per Share		Weighted			Aggregate			Number of	Weighted		Aggregate
		Shares			Range		Average			Intrinsic			Shares	Average		Intrinsic
							Exercise			Value (1)				Exercise		Value (1)
							Price							Price
	Balance, January 1, 2014	5,279,229			$0.35 - $6.55		$	2.11		$	784,154		4,012,378	$	2.28	$	697,826
	Granted	10,000			$1.53		$	1.53
	Exercised	(204,317	)		$0.35 - $1.27		$	0.83
	Canceled	(202,845	)		$0.82 - $2.46		$	1.39
	Balance, March 31, 2014	4,882,067			$0.35 - $6.55		$	2.19		$	733,958		3,983,733	$	2.29	$	652,065
	-1	The intrinsic value of an option represents the amount by which the market value of the stock exceeds the exercise price of the option of in-the-money options only. The aggregate intrinsic value is based on the closing price of our Common Stock on the NASDAQ Capital Market, as applicable, on the respective dates.

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Components of (Loss)/Income from Discontinued Operations	'
	The key components of income from discontinued operations were as follows:
		Three Months Ended
		31-Mar-14			31-Mar-13
	Net revenues	$	—		$	1,033,124
	Cost of revenues	46,204			706,705
	Operating expenses	—			229,745
	(Loss)/Income before income taxes	(46,204		)	96,674
	Allocated tax (benefit)/expense	(18,128		)	38,642
	Operating (loss)/ income from discontinued operations	(28,076		)	58,032
	Gain on sale, net of $1.0 million, and $0.9 million, of related income taxes, respectively	9,701,515			4,046,497
	Income from discontinued operations, net of income taxes	$	9,673,439		$	4,104,529

Inventory_Tables

Inventory (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Components of Inventory	'
	Components of inventory are as follows:
		March 31,		December 31,
		2014		2013
	Finished goods	$	666,980	$	719,574
	Work-in-process	454,261		361,754
	Parts	2,377,325		2,339,595
		3,498,566		3,420,923
	Less: Inventory reserves	204,068		74,746
	Total inventory, net	$	3,294,498	$	3,346,177

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2014
Payables and Accruals [Abstract]	'
Schedule of Accrued Liabilities	'
		31-Mar-14		31-Dec-13
	Accrued compensation	$	1,743,898	$	2,205,612
	Accrued sub-contracts	348,348		297,510
	Accrued professional fees	211,035		279,991
	Accrued income tax	182,340		13,143
	Deferred rent	96,662		102,569
	Royalties	64,453		290,025
	Warranty reserve	56,188		56,700
	Accrued liabilities - other	358,260		301,035
	Total Accrued Liabilities	$	3,061,184	$	3,546,585

Capital_Stock_and_Additional_P1

Capital Stock and Additional Paid-in Capital (Tables)	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Equity Transactions	'
	The following details our equity transactions during the three months ended March 31, 2014:
		Preferred Stock		Common Stock		Additional
						Paid-in
						Capital
		Shares	$	Shares	$	$
	Balances, December 31, 2013	1,321,514	1,322	14,527,335	14,842	62,756,571
	Exercise of stock options	—	—	204,317	204	168,831
	Share-based compensation (1)	—	—	—	—	259,048
	Stock dividends to Carilion Clinic(2)	—	—	—	20	29,516
	Balances, March 31, 2014	1,321,514	1,322	14,731,652	15,066	63,213,966
	-1	Share-based compensation includes the acceleration of stock options for a former employee included in the sale of our medical shape sensing business to Intuitive.
	-2	The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to March 31, 2014. For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through March 31, 2014, the Series A Preferred Stock issued to Carilion has accrued $739,711 in dividends. The accrued and unpaid dividends as of March 31, 2014 will be paid by the issuance of 334,348 shares of our common stock upon Carilion’s written request.

Operating_Segments_Tables

Operating Segments (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Revenues and Operating Loss for Reportable Segments Not Including Discontinued Operations	'
	The table below presents revenues and operating loss for reportable segments not including discontinued operations:
		Three Months Ended
		March 31,
		2014			2013
		(unaudited)
	Revenues:
	Technology development revenues	$	2,675,452		$	2,627,241
	Products and licensing revenues	1,796,429			1,478,127
	Total revenues	$	4,471,881		$	4,105,368
	Technology development operating loss	$	(1,527,646	)	$	(951,763	)
	Products and licensing operating loss	(424,500		)	(1,289,571		)
	Total operating loss	$	(1,952,146	)	$	(2,241,334	)
	Depreciation, technology development	$	56,743		$	101,566
	Depreciation, products and licensing	$	38,100		$	57,142
	Amortization, technology development	$	64,293		$	44,514
	Amortization, products and licensing	$	43,169		$	25,045
Assets for Reportable Segments	'
	The table below presents assets for reportable segments:
		March 31,			December 31,
		2014			2013
	Total segment assets:
	Technology development	$	16,460,555		$	10,208,433
	Products and licensing	11,052,420			9,495,642
	Total	$	27,512,975		$	19,704,075
	Property plant and equipment, and intangible assets, technology development	$	1,306,328		$	1,217,083
	Property plant and equipment, and intangible assets, products and licensing	$	877,133		$	1,132,101

Basis_of_Presentation_and_Sign3

Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
	Segment
Significant Accounting Policies [Line Items]	'	'	'
Number of operating segments	2	'	'
Expected dividend yield of stock options	0.00%	0.00%	'
Outstanding stock options (in shares)	4,882,067	'	5,279,229
Outstanding stock options, weighted average remaining contractual term	'5 years 6 months	'	'
Exercisable stock options (in shares)	3,983,733	'	4,012,378
Exercisable stock options, weighted average remaining contractual term	'4 years 10 months 24 days	'	'
Stock-based compensation	$230,939	$313,516	'
Stock-based compensation expense expected to recognize	1,400,000	'	'
Weighted average remaining service	'1 year 3 months 7 days	'	'
Selling, General and Administrative Expenses	'	'	'
Significant Accounting Policies [Line Items]	'	'	'
Stock-based compensation	$200,000	$300,000	'

Basis_of_Presentation_and_Sign4

Basis of Presentation and Significant Accounting Policies - Per Share Net Loss from Continuing Operations and Net (Loss)/Income Attributable to Common Stockholders (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Numerator:	'	'
Net loss from continuing operations	($1,133,215)	($1,318,932)
Net income attributable to stockholders	$8,510,688	$2,761,968
Denominator:	'	'
Basic weighted average common shares outstanding	14,653,262	14,011,814
Weighted average common stock equivalents from assumed exercise of stock options and restricted stock awards (in shares)	1,115,645	1,047,013
Convertible preferred stock (in shares)	1,321,514	1,321,514
Preferred stock dividends (in shares)	334,348	235,233
Diluted weighted average common shares outstanding	17,424,769	16,615,574
Diluted weighted average common shares outstanding	17,424,769	16,615,574
Basic net loss per share from continuing operations (in dollars per share)	($0.08)	($0.09)
Diluted net loss per share from continuing operations (in dollars per share)	($0.08)	($0.09)
Basic net income per share attributable to stockholders (in dollars per share)	$0.58	$0.20
Diluted net income per share attributable to stockholders (in dollars per share)	$0.49	$0.17
Continuing Operations	'	'
Denominator:	'	'
Basic weighted average common shares outstanding	14,653,262	14,011,814
Diluted weighted average common shares outstanding	14,653,262	14,011,814
Outstanding Stock Options	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	3,593,929	4,786,630
Outstanding Stock Options | Continuing Operations	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	4,440,731	5,422,130
Convertible preferred stock	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0
Convertible preferred stock | Continuing Operations	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	1,321,514	1,321,514
Preferred Stock	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0
Preferred Stock | Continuing Operations	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	314,525	195,587
Restricted Stock	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0
Restricted Stock | Continuing Operations	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	268,843	169,515
Carilion Warrants	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	366,000	366,000
Carilion Warrants | Continuing Operations	'	'
Denominator:	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	366,000	366,000

Basis_of_Presentation_and_Sign5

Basis of Presentation and Significant Accounting Policies - Assumptions Used to Estimate Fair Values of Option Granted (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accounting Policies [Abstract]	'	'
Risk-free interest rate	2.14%	1.27%
Expected life of options (in years)	'7 years 6 months	'7 years 6 months
Expected stock price volatility	106.00%	108.00%

Basis_of_Presentation_and_Sign6

Basis of Presentation and Significant Accounting Policies - Summary of Activity of 2003 stock Plan and 2006 Equity Incentive Plan (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Options Outstanding, Number of Shares	'
Beginning Balance (in shares)	5,279,229
Granted (in shares)	10,000
Exercised (in shares)	-204,317
Canceled (in shares)	-202,845
Ending Balance (in shares)	4,882,067
Options Outstanding, Price per Share Range	'
Beginning Balance, lower limit (in dollars per share)	$0.35
Beginning Balance, upper limit (in dollars per share)	$6.55
Granted, lower limit (in dollars per share)	$1.53
Exercised, lower limit (in dollars per share)	$0.35
Exercised, upper limit (in dollars per share)	$1.27
Canceled, lower limit (in dollars per share)	$0.82
Canceled, upper limit (in dollars per share)	$2.46
Balance, lower limit (in dollars per share)	$0.35
Balance, upper limit (in dollars per share)	$6.55
Options Outstanding, Weighted Average Exercise Price	'
Beginning Balance (in dollars per share)	$2.11
Granted (in dollars per share)	$1.53
Exercised (in dollars per share)	$0.83
Canceled (in dollars per share)	$1.39
Ending Balance (in dollars per share)	$2.19
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance	$784,154
Options Outstanding, Aggregate Intrinsic Value, Ending Balance	733,958
Options Exercisable, Beginning Balance (in shares)	4,012,378
Options Exercisable, Ending Balance (in shares)	3,983,733
Options Exercisable, Weighted Average Exercise Price, Beginning Balance (in dollars per share)	$2.28
Options Exercisable, Weighted Average Exercise Price, Ending Balance (in dollars per share)	$2.29
Options Exercisable, Aggregate Intrinsic Value, Beginning Balance	697,826
Options Exercisable, Aggregate Intrinsic Value, Ending Balance	$652,065

Discontinued_Operations_Additi

Discontinued Operations - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended		0 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended		0 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Mar. 01, 2013	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Feb. 28, 2013	Jan. 21, 2014	Apr. 22, 2014
			Revenues	Cost of Revenues	Secure Computing and Communications Group (SCC)	Secure Computing and Communications Group (SCC)	Secure Computing and Communications Group (SCC)	Secure Computing and Communications Group (SCC)	Secure Computing and Communications Group (SCC)	Medical Shape Sensing Business	Medical Shape Sensing Business
					Employee						Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Sale price to an unaffiliated third party	'	'	'	'	$6,100,000	'	'	'	'	$30,000,000	'
Purchase price receivable on sale of disposal group	'	'	'	'	5,400,000	110,000	'	110,000	'	'	'
Purchase price received from escrow	'	'	'	'	'	475,000	'	'	'	'	'
Escrow deposits related to disposal group sales	'	'	'	'	'	125,000	'	'	'	'	'
Escrow release period	'	'	'	'	'	'18 months	'	'	'	'	'
Transaction costs incurred related to disposal group sales	'	'	'	'	900,000	'	'	'	'	1,100,000	'
Sublease income	'	'	'	'	'	'	100,000	'	'	'	'
Employees of disposal group transferred to purchaser	'	'	'	'	20	'	'	'	'	'	'
Current assets related to disposal group	'	'	'	'	'	'	'	'	200,000	'	'
Long-term assets related to disposal group	'	'	'	'	'	'	'	'	100,000	300,000	'
Gain on sale, net of income taxes	9,701,515	4,046,497	'	'	'	'	'	3,300,000	'	'	'
Net income per share from discontinued operations, diluted (in dollars per share)	$0.56	$0.25	'	'	'	'	'	$0.20	'	'	'
Cash consideration received at closing	'	'	'	'	'	'	'	'	'	6,000,000	'
Cash consideration received within 90 days of closing	'	'	'	'	'	'	'	'	'	'	6,000,000
Cash consideration received in future tied to achievement of technical specifications	'	'	'	'	'	'	'	'	'	8,000,000	'
Cash consideration received in future, potential future royalties	'	'	'	'	'	'	'	'	'	$10,000,000	'
Disposal group accounted percentage of revenue and cost of revenue	'	'	12.00%	10.00%	'	'	'	'	'	'	'

Discontinued_Operations_Compon

Discontinued Operations - Components of (Loss) Income from Discontinued Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]	'	'
Net revenues	$0	$1,033,124
Cost of revenues	46,204	706,705
Operating expenses	0	229,745
(Loss)/Income before income taxes	-46,204	96,674
Allocated tax (benefit)/expense	-18,128	38,642
Operating (loss)/ income from discontinued operations	-28,076	58,032
Gain on sale, net of $1.0 million, and $0.9 million, of related income taxes, respectively	9,701,515	4,046,497
Income from discontinued operations, net of income taxes	$9,673,439	$4,104,529

Discontinued_Operations_Compon1

Discontinued Operations - Components of (Loss) Income from Discontinued Operations (Parenthetical) (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]	'	'
Gain on sale, related income taxes	$1.10	$0.90

Inventory_Components_of_Invent

Inventory - Components of Inventory (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'
Finished goods	$666,980	$719,574
Work-in-process	454,261	361,754
Parts	2,377,325	2,339,595
Total inventory, gross	3,498,566	3,420,923
Less: Inventory reserves	204,068	74,746
Total inventory, net	$3,294,498	$3,346,177

Accrued_Liabilities_Details

Accrued Liabilities (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]	'	'
Accrued compensation	$1,743,898	$2,205,612
Accrued sub-contracts	348,348	297,510
Accrued professional fees	211,035	279,991
Accrued income tax	182,340	13,143
Deferred rent	96,662	102,569
Royalties	64,453	290,025
Warranty reserve	56,188	56,700
Accrued liabilities - other	358,260	301,035
Total Accrued Liabilities	$3,061,184	$3,546,585

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Jan. 21, 2014	Mar. 21, 2013	Mar. 31, 2014	Mar. 31, 2014
			Term Loan	Revolving Credit Facility	Revolving Credit Facility	Revolving Credit Facility	Revolving Credit Facility
			Installment	Fourth Loan Modification Agreement	Fourth Loan Modification Agreement	Silicon Valley Bank Term Loan	Silicon Valley Bank Term Loan
						Second and Third Amendment	Second and Third Amendment
							Monthly Payment
Debt Instrument [Line Items]	'	'	'	'	'	'	'
Debt, face amount	'	'	$6,000,000	'	'	'	'
Debt, number of monthly payment	'	'	48	'	'	'	'
Debt, frequency of periodic payment	'	'	'monthly	'	'	'	'
Debt, additional interest above prime rate	'	'	2.00%	'	'	1.25%	'
Credit facility, maximum borrowing capacity	'	'	'	'	'	1,000,000	'
Unused Line of Credit fee percentage	'	'	'	'	'	'	0.25%
Frequency of commitment fee payment	'	'	'	'	'	'	'monthly
Termination fee	'	'	'	'	'	10,000	'
Credit facility, maturity date	'	'	'	'	'	17-May-14	'
Maintaining minimum cash balance as per covenant	'	'	'	3,500,000	5,000,000	'	'
Long-term debt obligation	'	'	1,800,000	'	'	'	'
Long-term debt obligation, excluding current maturities	'	625,000	300,000	'	'	'	'
Current portion of long term debt obligation	1,500,000	1,500,000	1,500,000	'	'	'	'
Line of Credit, outstanding amount	0	'	'	'	'	'	'
Credit facility, available borrowing capacity	$1,000,000	'	'	'	'	'	'

Equity_Transactions_Detail

Equity Transactions (Detail) (USD $)	3 Months Ended			3 Months Ended
	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014
		Preferred Stock	Preferred Stock	Common Stock	Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'
Beginning Balances (in shares)	'	1,321,514	1,321,514	14,527,335	'
Beginning Balances	$11,762,378	$1,322	$1,322	$14,842	$62,756,571
Exercise of stock options (in shares)	204,317	'	'	204,317	'
Exercise of stock options	'	'	'	204	168,831
Share-based compensation (1)	'	'	'	'	259,048
Stock dividends to Carilion Clinic	'	'	'	20	29,516
Ending Balances (in shares)	'	1,321,514	1,321,514	14,731,652	'
Ending Balances	$20,730,685	$1,322	$1,322	$15,066	$63,213,966

Equity_Transactions_Parentheti

Equity Transactions (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Stockholders Equity Note [Line Items]	'
Accrued dividends	739,711
Carilion Clinic | Series A Preferred Stock	'
Stockholders Equity Note [Line Items]	'
Stock dividends for preferred shareholders	334,348

Operating_Segments_Additional_

Operating Segments - Additional Information (Detail)	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
	Segment	Sales	International	International	United States Government	United States Government
			Sales	Sales	Sales	Sales
Segment Reporting Information [Line Items]	'	'	'	'	'	'
Number of operating segments	2	'	'	'	'	'
Percentage of total consolidated revenues by customer	'	12.00%	'	'	62.00%	66.00%
Percentage of total consolidated revenues	'	'	19.00%	26.00%	'	'

Operating_Segments_Revenues_an

Operating Segments - Revenues and Operating Loss for Reportable Segments Not Including Discontinued Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]	'	'
Technology development revenues	$2,675,452	$2,627,241
Products and licensing revenues	1,796,429	1,478,127
Total revenues	4,471,881	4,105,368
Total operating loss	-1,952,146	-2,241,334
Technology Development	'	'
Segment Reporting Information [Line Items]	'	'
Total operating loss	-1,527,646	-951,763
Depreciation	56,743	101,566
Amortization	64,293	44,514
Products and Licensing	'	'
Segment Reporting Information [Line Items]	'	'
Total operating loss	-424,500	-1,289,571
Depreciation	38,100	57,142
Amortization	$43,169	$25,045

Operating_Segments_Assets_for_

Operating Segments - Assets for Reportable Segments (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting, Asset Reconciling Item [Line Items]	'	'
Assets	$27,512,975	$19,704,075
Property plant and equipment, and intangible assets	1,960,095	2,060,709
Technology Development	'	'
Segment Reporting, Asset Reconciling Item [Line Items]	'	'
Assets	16,460,555	10,208,433
Property plant and equipment, and intangible assets	1,306,328	1,217,083
Products and Licensing	'	'
Segment Reporting, Asset Reconciling Item [Line Items]	'	'
Assets	11,052,420	9,495,642
Property plant and equipment, and intangible assets	$877,133	$1,132,101

Contingencies_and_Guarantees_A

Contingencies and Guarantees - Additional information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Mar. 31, 2014
	purchase_order
Commitments and Contingencies Disclosure [Abstract]	'	'
Number of non-cancelable purchase orders executed	2	'
Non-cancelable purchase order commitment	$1.40	'
Non-cancelable purchase order delivery period	'18 months	'
Non-cancelable purchase order commitment remained	'	$1