Luna Innovations (LUNA) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	8-May-15
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	LUNA
Entity Registrant Name	LUNA INNOVATIONS INC
Entity Central Index Key	1239819
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		26,968,365

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$13,296,415	$14,116,969
Accounts receivable, net	4,817,836	5,689,615
Inventory, net	3,807,294	3,364,233
Prepaid expenses	425,133	523,553
Other current assets	221,411	191,749
Total current assets	22,568,089	23,886,119
Property and equipment, net	3,379,214	3,497,057
Intangible assets, net	181,491	199,277
Other assets	1,995	1,995
Total assets	26,130,789	27,584,448
Current liabilities:
Current portion of long-term debt obligation	250,000	625,000
Current portion of capital lease obligation	66,492	70,725
Accounts payable	2,266,437	1,447,177
Accrued liabilities	4,522,346	3,965,945
Deferred revenue	811,918	861,081
Total current liabilities	7,917,193	6,969,928
Operating Leases, Future Minimum Payments Due	1,536,067	1,570,377
Long-term capital lease obligation	26,529	39,582
Total liabilities	9,479,789	8,579,887
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $ 0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2014 and March 31, 2015	1,322	1,322
Common stock, par value $ 0.001, 100,000,000 shares authorized, 15,110,924 and 15,117,744 shares issued, 15,088,199 and 15,095,017 shares outstanding at December 31, 2014 and March 31, 2015	15,567	15,541
Less treasury stock at cost, 22,725 shares at December 31, 2014 and March 31, 2015	-32,221	-32,221
Additional paid-in capital	64,447,793	64,147,666
Accumulated deficit	-47,781,461	-45,127,747
Total stockholders’ equity	16,651,000	19,004,561
Total liabilities and stockholders’ equity	$26,130,789	$27,584,448

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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	15,117,744	15,110,924
Common stock, shares outstanding	15,095,017	15,088,199
Treasury stock, shares	22,725	22,725

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Technology development revenues	$2,875,515	$2,675,452
Products and licensing revenues	2,463,587	1,796,429
Total revenues	5,339,102	4,471,881
Cost of revenues:
Technology development costs	2,083,624	2,025,155
Products and licensing costs	966,689	894,640
Total cost of revenues	3,050,313	2,919,795
Gross profit	2,288,789	1,552,086
Operating expense:
Selling, general and administrative	4,569,107	2,755,078
Research, development and engineering	334,891	749,154
Total operating expense	4,903,998	3,504,232
Operating loss	-2,615,209	-1,952,146
Other income/(expense):
Other income, net	0	82,106
Interest expense	-9,137	-32,365
Total other income/(expense)	-9,137	49,741
Loss from continuing operations, before income taxes	-2,624,346	-1,902,405
Income tax (benefit)/expense	2,808	-769,190
Net loss from continuing operations	-2,627,154	-1,133,215
Income from discontinued operations, net of income taxes	0	9,673,439
Net income/(loss)	-2,627,154	8,540,224
Preferred stock dividend	26,560	29,536
Net income/(loss) attributable to common stockholders	($2,653,714)	$8,510,688
Net loss per share from continuing operations:
Basic and diluted (in dollars per share)	($0.17)	($0.08)
Net income per share from discontinued operations:
Basic and diluted (in dollars per share)	$0	$0.66
Net income/(loss) per share attributable to common stockholders:
Basic and diluted (in dollars per share)	($0.18)	$0.58
Weighted average common shares and common equivalent shares outstanding:
Basic and diluted (in dollars per share)	15,117,679	14,653,262

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows used in operating activities
Net income/(loss)	($2,627,154)	$8,540,224
Adjustments to reconcile net income/(loss) to net cash used in operating activities
Depreciation and amortization	165,081	202,305
Share-based compensation	271,077	230,939
Gain on sale of discontinued operations, net of income taxes	0	-9,701,515
Tax benefit from utilization of loss from current year operations	0	-787,318
Change in assets and liabilities
Accounts receivable	871,779	896,194
Inventory	-443,061	13,314
Other current assets	68,758	112,286
Other assets	0	18,792
Accounts payable and accrued expenses	1,341,352	-821,763
Deferred revenue	-49,163	-138,593
Net cash used in operating activities	-401,331	-1,435,135
Cash flows provided by/(used in) investing activities
Acquisition of property and equipment	-18,321	-67,944
Intangible property costs	-11,131	-126,091
Proceeds from sale of discontinued operations, net of fees	0	4,958,891
Net cash provided by/(used in) investing activities	-29,452	4,764,856
Cash flows used in financing activities
Payments on capital lease obligations	-17,286	-16,282
Payment of debt obligations	-375,000	-375,000
Proceeds from the exercise of options	2,515	169,035
Net cash used in financing activities	-389,771	-222,247
Net increase/(decrease) in cash and cash equivalents	-820,554	3,107,474
Cash and cash equivalents—beginning of period	14,116,969	7,778,541
Cash and cash equivalents—end of period	13,296,415	10,886,015
Supplemental disclosure of cash flow information
Cash paid for interest	7,583	30,000
Dividend on preferred stock, 19,823 shares of common stock issuable for the three months ended March 31, 2014 and 2015	26,560	29,536
Cash paid for income taxes	$2,808	$0

Consolidated_Statements_of_Cas1

Consolidated Statements of Cash Flows (Parenthetical)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
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, 2015
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 business segments, 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 beginning in 2005. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital market transactions and asset sales.
	Although there can be no guarantees, we believe that our current cash balance will provide adequate liquidity for us to meet our working capital needs over the next twelve months.
	Unaudited Interim Financial Information
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“U.S. GAAP”) 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 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, 2015, results of operations for the three months ended March 31, 2014 and 2015, and cash flows for the three months ended March 31, 2014 and 2015. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
	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, 2014, included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2015.
	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.
	Net loss Per Share
	Basic per share data is computed by dividing loss from continuing operations by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing income from continuing operations, if applicable, by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. Diluted per share data would also include the potential common share equivalents relating to convertible securities by application of the if-converted method.
	The effect of 2.8 million and 2.5 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are not included for the quarters ended March 31, 2014 and 2015, respectively, as they are antidilutive to earnings per share due to the Company having a net loss from continuing operations.
	Recently Issued Accounting Pronouncements
	In April 2015, the Financial Accounting Standards Board (“FASB”) issued guidance which requires debt issuance costs to be presented on the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU No. 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”. ASU No. 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU No. 2014-09 is currently scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU No. 2014-09 provides for either full retrospective adoption or a modified retrospective adoption by which it is applied only to the most current period presented. Early adoption is not permitted. In April 2015, the FASB issued a proposal that would defer ASU No. 2014-09 by one year, but it would permit all entities to adopt the standard as of the original effective date. We are currently in the process of evaluating the impact of the adoption of ASU No. 2014-09 on our consolidated financial statements.

Discontinued_Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	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 $12.0 million in cash has been received, up to $8.0 million is payable to us in the future upon the accomplishment by the buyer of certain technical specifications, and up to $10.0 million is payable to us 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 the company, many of whom were historically engaged in this development project. In connection with this sale, we incurred approximately $1.3 million in transaction costs that included various charges related to investment banker and legal fees and a 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.
	We have reported the results of operations of 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-15
	Net revenues	$	—		$	—
	Cost of revenues	46,204			—
	Operating expenses	—			—
	Loss before income taxes	(46,204		)	—
	Allocated tax benefit	(18,128		)	—
	Operating loss from discontinued operations, net of income taxes	(28,076		)	—
	Gain on sale, net of $1.0 million of related income taxes	9,701,515			—
	Income from discontinued operations, net of income taxes	$	9,673,439		$	—

Inventory

Inventory	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Inventory	Inventory
	Inventory consists of finished goods, work-in-process and raw materials 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:
		December 31,		March 31,
		2014		2015
	Finished goods	$	580,184	$	669,842
	Work-in-process	262,025		331,549
	Raw materials	2,522,024		2,805,903
	Total inventory, net	$	3,364,233	$	3,807,294

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities
		31-Dec-14		31-Mar-15
	Accrued compensation	$	2,362,608	$	2,771,186
	Accrued sub-contracts	244,218		270,693
	Accrued professional fees	177,712		716,824
	Accrued income tax	166,550		8,820
	Deferred rent	182,340		159,498
	Royalties	392,945		179,086
	Warranty reserve	69,264		67,325
	Accrued liabilities - other	370,308		348,914
	Total accrued liabilities	$	3,965,945	$	4,522,346

Debt

Debt	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt	Debt
	Silicon Valley Bank Facility
	We currently have a Loan and Security Agreement with Silicon Valley Bank (“SVB”) under which we have a term loan with an original borrowing amount of $6.0 million (the “Term Loan” or “Credit Facility”). Prior to the amendment to the Credit Facility in connection with our merger with Advanced Photonix, Inc., (“API”) as described below, the Term Loan was to be repaid by us in 48 monthly installments, plus accrued interest payable monthly in arrears, and unless earlier terminated, was scheduled to mature on May 1, 2015. The Term Loan carried a floating annual interest rate equal to SVB’s prime rate then in effect plus 2%. We were permitted to 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 had a revolving line of credit (the “Line of Credit”), which had a maximum borrowing capacity of $1.0 million. The Line of Credit matured on May 18, 2014 and was not renewed.
	Amounts due under the Credit Facility 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 Facility also requires 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, 2015, we were in compliance with all covenants under the Credit Facility.
	In addition, the Credit Facility contains 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 Facility and foreclose on the collateral. Furthermore, an event of default under the Credit Facility would result in an increase in the interest rate on any amounts outstanding. As of March 31, 2015, there were no events of default on the Credit Facility.
	The balance under the Term Loan at December 31, 2014 and March 31, 2015, was $0.6 million and $0.3 million, respectively, all of which was classified as short-term. The effective rate of our Term Loan at March 31, 2015 was 6%.
	The following table presents a summary of debt outstanding as of December 31, 2014 and March 31, 2015:
		December 31, 2014			March 31, 2015
	Silicon Valley Bank Term Loan	$	625,000		$	250,000
	Less: current portion	625,000			250,000
	Total long-term debt	$	—		$	—
	Costs associated with loans outstanding were as follows:
		Three months ended March 31,
		2014		2015
	Interest expense	30,000		7,622
	Amortization of transaction costs	2,573		1,568
	Total interest expense	32,573		9,190
	In connection with our merger with API (See Note 9, “Subsequent Events”), on May 8, 2015, we entered into the Sixth Loan Modification Agreement with SVB, under which we received a new term loan in the amount of $6.0 million, payable in 48 monthly installments and bearing interest at a floating rate of prime plus 2%.  Amounts due under the new term loan continue to be secured by substantially all of our assets, including the assets of API, as well as our intellectual property, personal property and bank accounts. We used the proceeds of the new term loan to repay all amounts then outstanding under the prior Term Loan, as well as all of API’s outstanding indebtedness as of the completion of the merger.

Capital_Stock_and_Additional_P

Capital Stock and Additional Paid-in Capital	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Capital Stock and Additional Paid-in Capital	Capital Stock and Additional Paid-in Capital
	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, 2015 and 2014 was estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:
		Three Months Ended March 31,
		2014	2015
	Risk-free interest rate	2.14%	1.88%
	Expected life of options (in years)	7.5	7.5
	Expected stock price volatility	106%	103%
	Executive turnover rates	—%	—%
	Non-executive turnover rates	33.60%	40.00%
	Expected dividend yield	—%	—%
	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, 2015:
		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, 2015	4,289,631		$0.35 - $6.55		$	1.93		$	512,901		3,111,199		$	2.11	$	453,032
	Granted	32,250		$1.45		$	1.45
	Exercised	4,577		$1.59 - $174		$	1.34
	Canceled	4,313		$0.35 - $2.15		$	0.38
	Balance, March 31, 2015	4,312,991		$0.35 - $6.55		$	1.93		$	533,715		3,253,115		$	2.08	$	470,695
	-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, 2015, the outstanding stock options to purchase an aggregate of 4.3 million shares had a weighted-average remaining contractual term of 5.8 years, and the exercisable stock options to purchase an aggregate of 3.3 million shares had a weighted-average remaining contractual term of 4.9 years.
	For the three months ended March 31, 2014 and 2015, we recognized $0.2 million and $0.3 million in share-based compensation expense, respectively, which is included in our selling, general and administrative expense in the accompanying consolidated financial statements. We expect to recognize $1.3 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, 2015.
	The following table summarizes our restricted stock awards:
		Number of Vested Shares	Number of Unvested Shares		Weighted Average Grant Date Fair Value			Aggregate Value of Vested Shares	Aggregate Value of Unvested Shares
	Balance at January 1, 2015	128,663	528,000		$	1.36		183,115	707,700
	Granted	—	—		$	—		—	—
	Vested	112,500	(112,500	)	$	1.26		141,750	(141,750	)
	Exercised	—	—		$	—		—	—
	Balance at March 31, 2015	241,163	415,500		$	1.36		324,865	565,950
	The following details our equity transactions during the three months ended March 31, 2015:
		Preferred Stock					Common Stock				Treasury Stock				Additional
															Paid-in
															Capital
		Shares		$			Shares		$		Shares		$		$
	Balance, December 31, 2014	1,321,514		1,322			15,088,199		15,541		22,725		(32,221	)	64,147,666
	Exercise of stock options	—		—			6,818		7		—		—		2,508
	Share-based compensation	—		—			—		—		—		—		220,814
	Non-cash compensation	—		—			—		—		—		—		50,264
	Stock dividends to Carilion Clinic(1)	—		—			—		19		—		—		26,541
	Purchase of treasury stock	—		—			—		—		—		—		—
	Balance, March 31, 2015	1,321,514		1,322			15,095,017		15,567		22,725		(32,221	)	64,447,793
	-1	The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to March 31, 2015. For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through March 31, 2015, the Series A Preferred Stock issued to Carilion has accrued $898,914 in dividends. The accrued and unpaid dividends as of March 31, 2015 will be paid by the issuance of 412,560 shares of our common stock upon Carilion’s written request.

Operating_Segments

Operating Segments	3 Months Ended
	Mar. 31, 2015
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 revenues primarily from services.
	The Products and Licensing segment derives its revenues 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 revenues, expenses and assets of our medical shape sensing business.
	Through March 31, 2015, our Chief Executive Officer and his direct reports collectively represented our chief operating decision makers, and they evaluated segment performance based primarily on revenues 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 SEC on March 16, 2015).
	The table below presents revenues and operating loss for reportable segments not including discontinued operations:
		Three Months Ended
		March 31,
		2014			2015
		(unaudited)
	Revenues:
	Technology development revenues	$	2,675,452		$	2,875,515
	Products and licensing revenues	1,796,429			2,463,587
	Total revenues	$	4,471,881		$	5,339,102
	Technology development operating loss	$	(1,527,646	)	$	(259,486	)
	Products and licensing operating loss	(424,500		)	(2,355,723		)
	Total operating loss	$	(1,952,146	)	$	(2,615,209	)
	Depreciation, technology development	$	56,743		$	73,335
	Depreciation, products and licensing	$	38,100		$	62,829
	Amortization, technology development	$	64,293		$	15,573
	Amortization, products and licensing	$	43,169		$	13,343
	The table below presents assets for reportable segments:
		December 31,			March 31,
		2014			2015
	Total segment assets:
	Technology development	$	16,503,316		$	14,073,430
	Products and licensing	11,081,132			12,057,359
	Total	$	27,584,448		$	26,130,789
	Property plant and equipment, and intangible assets, technology development	$	2,122,157		$	1,917,712
	Property plant and equipment, and intangible assets, products and licensing	$	1,574,177		$	1,642,993
	There are no material inter-segment revenues for any period presented.
	The United States Government accounted for approximately 58% and 62% of total consolidated revenues for the three months ended March 31, 2015 and 2014, respectively.
	International revenues (customers outside the United States) accounted for approximately 14% and 19% of total consolidated revenues for the three months ended March 31, 2015 and 2014, respectively.

Contingencies_and_Guarantees

Contingencies and Guarantees	3 Months Ended
	Mar. 31, 2015
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, 2015, approximately $0.2 million of this commitment remained.
	In September 2014, we received a preliminary audit report from the Defense Contract Audit Agency (the “DCAA”), with respect to our 2007 incurred cost submission and questioning $0.8 million of claimed costs that the DCAA believes are expressly unallowable under the Federal Acquisition Regulations and, therefore, subject to potential penalty. We have not been informed of any actual claim for penalty by the Defense Contract Management Agency and intend to contest such claim if received.
	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.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events
	On January 30, 2015, we entered into an agreement to merge with API, subject to approval by the stockholders of both companies and customary closing conditions. API is a leading test and measurement company that packages optoelectronic semiconductors into high-speed optical receivers, custom optoelectronic subsystems and Terahertz instrumentation, serving the test and measurement, telecommunications, military/aerospace and medical markets. On May 8, 2015, our stockholders and API's stockholders approved the merger, and the merger was completed. In the merger API stockholders received 0.31782 shares of our common stock for each outstanding share of API common stock they owned as of the effective time of the merger.
	The statements presented in this report do not reflect the consummation of the merger. We are in the process of evaluating the financial consequences of the merger and will report the results of the combined company from the effective date of the merger in our Quarterly Report on Form 10-Q for the quarter ending June 30, 2015.

Basis_of_Presentation_and_Sign1

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
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 business segments, 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 beginning in 2005. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital market transactions and asset sales.
	Although there can be no guarantees, we believe that our current cash balance 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“U.S. GAAP”) 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 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, 2015, results of operations for the three months ended March 31, 2014 and 2015, and cash flows for the three months ended March 31, 2014 and 2015. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
	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, 2014, included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2015.
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.
Net Loss Per Share	Net loss Per Share
	Basic per share data is computed by dividing loss from continuing operations by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing income from continuing operations, if applicable, by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. Diluted per share data would also include the potential common share equivalents relating to convertible securities by application of the if-converted method.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements
	In April 2015, the Financial Accounting Standards Board (“FASB”) issued guidance which requires debt issuance costs to be presented on the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU No. 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”. ASU No. 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU No. 2014-09 is currently scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU No. 2014-09 provides for either full retrospective adoption or a modified retrospective adoption by which it is applied only to the most current period presented. Early adoption is not permitted. In April 2015, the FASB issued a proposal that would defer ASU No. 2014-09 by one year, but it would permit all entities to adopt the standard as of the original effective date. We are currently in the process of evaluating the impact of the adoption of ASU No. 2014-09 on our consolidated financial statements.

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Components of Income from Discontinued Operations	The key components of income from discontinued operations were as follows:
		Three Months Ended
		31-Mar-14			31-Mar-15
	Net revenues	$	—		$	—
	Cost of revenues	46,204			—
	Operating expenses	—			—
	Loss before income taxes	(46,204		)	—
	Allocated tax benefit	(18,128		)	—
	Operating loss from discontinued operations, net of income taxes	(28,076		)	—
	Gain on sale, net of $1.0 million of related income taxes	9,701,515			—
	Income from discontinued operations, net of income taxes	$	9,673,439		$	—

Inventory_Tables

Inventory (Tables)	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Components of Inventory	Components of inventory are as follows:
		December 31,		March 31,
		2014		2015
	Finished goods	$	580,184	$	669,842
	Work-in-process	262,025		331,549
	Raw materials	2,522,024		2,805,903
	Total inventory, net	$	3,364,233	$	3,807,294

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities
		31-Dec-14		31-Mar-15
	Accrued compensation	$	2,362,608	$	2,771,186
	Accrued sub-contracts	244,218		270,693
	Accrued professional fees	177,712		716,824
	Accrued income tax	166,550		8,820
	Deferred rent	182,340		159,498
	Royalties	392,945		179,086
	Warranty reserve	69,264		67,325
	Accrued liabilities - other	370,308		348,914
	Total accrued liabilities	$	3,965,945	$	4,522,346

Debt_Tables

Debt (Tables)	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Summary of Debt Outstanding	The following table presents a summary of debt outstanding as of December 31, 2014 and March 31, 2015:
		December 31, 2014			March 31, 2015
	Silicon Valley Bank Term Loan	$	625,000		$	250,000
	Less: current portion	625,000			250,000
	Total long-term debt	$	—		$	—
Costs Associated with Loans Outstanding	Costs associated with loans outstanding were as follows:
		Three months ended March 31,
		2014		2015
	Interest expense	30,000		7,622
	Amortization of transaction costs	2,573		1,568
	Total interest expense	32,573		9,190

Capital_Stock_and_Additional_P1

Capital Stock and Additional Paid-in Capital (Tables)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Assumptions Used to Estimate Fair Value of Option Granted	The fair value of each option granted during the three months ended March 31, 2015 and 2014 was estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:
		Three Months Ended March 31,
		2014	2015
	Risk-free interest rate	2.14%	1.88%
	Expected life of options (in years)	7.5	7.5
	Expected stock price volatility	106%	103%
	Executive turnover rates	—%	—%
	Non-executive turnover rates	33.60%	40.00%
	Expected dividend yield	—%	—%
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, 2015:
		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, 2015	4,289,631		$0.35 - $6.55		$	1.93		$	512,901		3,111,199		$	2.11	$	453,032
	Granted	32,250		$1.45		$	1.45
	Exercised	4,577		$1.59 - $174		$	1.34
	Canceled	4,313		$0.35 - $2.15		$	0.38
	Balance, March 31, 2015	4,312,991		$0.35 - $6.55		$	1.93		$	533,715		3,253,115		$	2.08	$	470,695
	-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.
Summary of Restricted Stock Awards	The following table summarizes our restricted stock awards:
		Number of Vested Shares	Number of Unvested Shares		Weighted Average Grant Date Fair Value			Aggregate Value of Vested Shares	Aggregate Value of Unvested Shares
	Balance at January 1, 2015	128,663	528,000		$	1.36		183,115	707,700
	Granted	—	—		$	—		—	—
	Vested	112,500	(112,500	)	$	1.26		141,750	(141,750	)
	Exercised	—	—		$	—		—	—
	Balance at March 31, 2015	241,163	415,500		$	1.36		324,865	565,950
Equity Transactions	The following details our equity transactions during the three months ended March 31, 2015:
		Preferred Stock					Common Stock				Treasury Stock				Additional
															Paid-in
															Capital
		Shares		$			Shares		$		Shares		$		$
	Balance, December 31, 2014	1,321,514		1,322			15,088,199		15,541		22,725		(32,221	)	64,147,666
	Exercise of stock options	—		—			6,818		7		—		—		2,508
	Share-based compensation	—		—			—		—		—		—		220,814
	Non-cash compensation	—		—			—		—		—		—		50,264
	Stock dividends to Carilion Clinic(1)	—		—			—		19		—		—		26,541
	Purchase of treasury stock	—		—			—		—		—		—		—
	Balance, March 31, 2015	1,321,514		1,322			15,095,017		15,567		22,725		(32,221	)	64,447,793
	-1	The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to March 31, 2015. For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through March 31, 2015, the Series A Preferred Stock issued to Carilion has accrued $898,914 in dividends. The accrued and unpaid dividends as of March 31, 2015 will be paid by the issuance of 412,560 shares of our common stock upon Carilion’s written request.

Operating_Segments_Tables

Operating Segments (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Schedule of revenues, operating loss and assets for reportable segments	The table below presents revenues and operating loss for reportable segments not including discontinued operations:
		Three Months Ended
		March 31,
		2014			2015
		(unaudited)
	Revenues:
	Technology development revenues	$	2,675,452		$	2,875,515
	Products and licensing revenues	1,796,429			2,463,587
	Total revenues	$	4,471,881		$	5,339,102
	Technology development operating loss	$	(1,527,646	)	$	(259,486	)
	Products and licensing operating loss	(424,500		)	(2,355,723		)
	Total operating loss	$	(1,952,146	)	$	(2,615,209	)
	Depreciation, technology development	$	56,743		$	73,335
	Depreciation, products and licensing	$	38,100		$	62,829
	Amortization, technology development	$	64,293		$	15,573
	Amortization, products and licensing	$	43,169		$	13,343
	The table below presents assets for reportable segments:
		December 31,			March 31,
		2014			2015
	Total segment assets:
	Technology development	$	16,503,316		$	14,073,430
	Products and licensing	11,081,132			12,057,359
	Total	$	27,584,448		$	26,130,789
	Property plant and equipment, and intangible assets, technology development	$	2,122,157		$	1,917,712
	Property plant and equipment, and intangible assets, products and licensing	$	1,574,177		$	1,642,993

Basis_of_Presentation_and_Sign2

Basis of Presentation and Significant Accounting Policies - Additional Information (Details)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
	Segment
Accounting Policies [Abstract]
Number of operating segments	2
Antidilutive securities excluded from computation of net loss per share (shares)	2.5	2.8

Discontinued_Operations_Additi

Discontinued Operations - Additional Information (Detail) (Medical Shape Sensing Business, USD $)	0 Months Ended
In Millions, unless otherwise specified	Jan. 21, 2014	Jan. 21, 2014	Jan. 20, 2014
Medical Shape Sensing Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price to an unaffiliated third party	$30	$30
Cash consideration received at closing	12	12
Cash consideration received in future tied to achievement of technical specifications	8	8
Cash consideration received in future, potential future royalties	10	10
Transaction costs incurred related to disposal group sales	1.3
Long-term assets related to disposal group			$0.30

Discontinued_Operations_Compon

Discontinued Operations - Components of Income from Discontinued Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Net revenues	$0	$0
Cost of revenues	0	46,204
Operating expenses	0	0
Loss before income taxes	0	-46,204
Allocated tax benefit	0	-18,128
Operating loss from discontinued operations, net of income taxes	0	-28,076
Gain on sale, net of $1.0 million of related income taxes	0	9,701,515
Income from discontinued operations, net of income taxes	$0	$9,673,439

Discontinued_Operations_Compon1

Discontinued Operations - Components of (Loss) Income from Discontinued Operations (Additional Information) (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Gain on sale, related income taxes	$0	$1

Inventory_Components_of_Invent

Inventory - Components of Inventory (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods	$669,842	$580,184
Work-in-process	331,549	262,025
Raw materials	2,805,903	2,522,024
Total inventory, net	$3,807,294	$3,364,233

Accrued_Liabilities_Details

Accrued Liabilities (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued compensation	$2,771,186	$2,362,608
Accrued sub-contracts	270,693	244,218
Accrued professional fees	716,824	177,712
Accrued income tax	8,820	166,550
Deferred rent	159,498	182,340
Royalties	179,086	392,945
Warranty reserve	67,325	69,264
Accrued liabilities - other	348,914	370,308
Total accrued liabilities	$4,522,346	$3,965,945

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	3 Months Ended	0 Months Ended
	Mar. 31, 2015	8-May-15	Dec. 31, 2014	Jan. 21, 2014	Mar. 21, 2013
	Installment
Term Loan
Debt Instrument [Line Items]
Debt, face amount	$6,000,000
Debt, number of monthly payment	48
Debt, frequency of periodic payment	monthly
Long-term debt obligation	300,000		600,000
Effective interest rate	6.00%
Term Loan | Sixth Loan Modification Agreement | Subsequent Event
Debt Instrument [Line Items]
Debt, face amount		6,000,000
Debt, number of monthly payment		48
Debt, frequency of periodic payment		monthly
Term Loan | Prime Rate | Sixth Loan Modification Agreement | Subsequent Event
Debt Instrument [Line Items]
Debt, additional interest above prime rate		2.00%
Term Loan | Silicon Valley Bank | Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate	2.00%
Revolving Credit Facility | Second and Third Amendment
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	1,000,000
Revolving Credit Facility | Fourth Loan Modification Agreement
Debt Instrument [Line Items]
Maintaining minimum cash balance as per covenant				$3,500,000	$5,000,000

Debt_Summary_of_Debt_Outstandi

Debt - Summary of Debt Outstanding (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Less: current portion	$250,000	$625,000
Total long-term debt	0	0
Term Loan
Debt Instrument [Line Items]
Silicon Valley Bank Term Loan	300,000	600,000
Term Loan | Silicon Valley Bank Term Loan
Debt Instrument [Line Items]
Silicon Valley Bank Term Loan	$250,000	$625,000

Debt_Cost_Associated_with_Loan

Debt - Cost Associated with Loans Outstanding (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Debt Disclosure [Abstract]
Interest expense	$7,622	$30,000
Amortization of transaction costs	1,568	2,573
Total interest expense	$9,190	$32,573

Capital_Stock_and_Additional_P2

Capital Stock and Additional Paid-in Capital - Assumptions Used to Estimate Fair Values of Options Granted (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity [Abstract]
Risk-free interest rate	1.88%	2.14%
Expected life of options (in years)	7 years 6 months	7 years 6 months
Expected stock price volatility	103.00%	106.00%
Executive turnover rates	0.00%	0.00%
Non-executive turnover rates	40.00%	33.60%
Expected dividend yield	0.00%	0.00%

Capital_Stock_and_Additional_P3

Capital Stock and Additional Paid-in Capital - Summary of Activity of 2003 Stock Plan and 2006 Equity Incentive Plan (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Options Outstanding, Number of Shares
Beginning Balance (in shares)	4,289,631
Granted	32,250
Exercised	4,577
Canceled	4,313
Ending Balance (in shares)	4,312,991
Options Outstanding, Price per Share Range (usd per share)
Beginning balance, lower limit	$0.35
Beginning balance, upper limit	$6.55
Granted lower limit	$1.45
Granted upper limit	$1.45
Exercised lower limit	$1.59
Exercised upper limit	$1.74
Canceled lower limit	$0.35
Canceled upper limit	$2.15
Balance, lower limit	$0.35
Balance, upper limit	$6.55
Options Outstanding, Weighted Average Exercise Price (usd per share)
Beginning Balance (in dollars per share)	$1.93
Granted	$1.45
Exercised	$1.34
Canceled	$0.38
Ending Balance (in dollars per share)	$1.93
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance	$512,901
Options Outstanding, Aggregate Intrinsic Value, Ending Balance	533,715
Options Exercisable, Beginning Balance (in shares)	3,111,199
Options Exercisable, Ending Balance (in shares)	3,253,115
Options Exercisable, Weighted Average Exercise Price, Beginning Balance (in dollars per share)	$2.11
Options Exercisable, Weighted Average Exercise Price, Ending Balance (in dollars per share)	$2.08
Options Exercisable, Aggregate Intrinsic Value, Beginning Balance	453,032
Options Exercisable, Aggregate Intrinsic Value, Ending Balance	$470,695

Capital_Stock_and_Additional_P4

Capital Stock and Additional Paid-in Capital - Summary of Restricted Stock Awards (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Number of Vested Shares
Beginning balance	128,663
Granted	0
Vested	112,500
Exercised	0
Ending balance	241,163
Number of Unvested Shares
Beginning balance	528,000
Granted	0
Vested	-112,500
Exercised	0
Ending balance	415,500
Weighted Average Grant Date Fair Value (in usd per share)
Beginning balance	$1.36
Granted	$0
Vested	$1.26
Exercised	$0
Ending balance	$1.36
Aggregate Value of Vested Shares
Beginning balance	$183,115
Granted	0
Vested	141,750
Exercised	0
Ending balance	324,865
Aggregate Value of Unvested Shares
Beginning balance	707,700
Granted	0
Vested	-141,750
Exercised	0
Ending balance	$565,950

Capital_Stock_and_Additional_P5

Capital Stock and Additional Paid-in Capital - Equity Transactions (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, December 31, 2014 (in shares)	1,321,514
Balances, December 31, 2014 (in shares)	15,088,199
Balances, December 31, 2014	$19,004,561
Balances, December 31, 2014 (in shares)	22,725
Exercised	4,577
Balances, March 31, 2015 (in shares)	1,321,514
Balances, March 31, 2015 (in shares)	15,095,017
Balances, March 31, 2015 (in shares)	22,725
Balances, March 31, 2015	16,651,000
Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, December 31, 2014 (in shares)			1,321,514
Balances, December 31, 2014			1,322
Balances, March 31, 2015 (in shares)	1,321,514		1,321,514
Balances, March 31, 2015	1,322		1,322
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, December 31, 2014 (in shares)	15,088,199
Balances, December 31, 2014	15,541
Exercised	6,818
Exercise of stock options	7
Share-based compensation (in shares)	0
Share-based compensation	0
Stock dividends to Carilion Clinic	19	[1]
Balances, March 31, 2015 (in shares)	15,095,017
Balances, March 31, 2015	15,567
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, December 31, 2014	-32,221
Balances, December 31, 2014 (in shares)	22,725
Purchase of treasury stock (in shares)	0
Purchase of treasury stock	0
Balances, March 31, 2015 (in shares)	22,725
Balances, March 31, 2015	-32,221
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances, December 31, 2014	64,147,666
Exercise of stock options	2,508
Share-based compensation	220,814
Non-cash compensation	50,264
Stock dividends to Carilion Clinic	26,541	[1]
Balances, March 31, 2015	$64,447,793
[1]	The stock dividends payable in connection with Carilion Clinicbs Series A Preferred Stock will be issued subsequent to MarchB 31, 2015. For the period from JanuaryB 12, 2010, the original issue date of the Series A Preferred Stock, through MarchB 31, 2015, the Series A Preferred Stock issued to Carilion has accrued $898,914 in dividends. The accrued and unpaid dividends as of MarchB 31, 2015 will be paid by the issuance of 412,560 shares of our common stock upon Carilionbs written request.

Capital_Stock_and_Additional_P6

Capital Stock and Additional Paid-in Capital - Equity Transactions (Additional Information) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Stockholders Equity Note [Line Items]
Accrued dividends	898,914
Carilion Clinic | Series A Preferred Stock
Stockholders Equity Note [Line Items]
Stock dividends for preferred shareholders (shares)	412,560

Capital_Stock_and_Additional_P7

Capital Stock and Additional Paid-in Capital - Additional Information (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Equity [Abstract]
Expected dividend yield	0.00%	0.00%
Aggregate outstanding stock options	4,312,991		4,289,631
Outstanding stock options, weighted average remaining contractual term	5 years 9 months 18 days
Exercisable stock options (in shares)	3,253,115		3,111,199
Exercisable stock options, weighted average remaining contractual term	4 years 10 months 24 days
Share-based compensation	$271,077	$230,939
Stock-based compensation expense not yet recognized	$1,300,000
Weighted average remaining service period	1 year 3 months 18 days

Operating_Segments_Additional_

Operating Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Number of operating segments	2
Sales | International
Segment Reporting Information [Line Items]
Percentage of total consolidated revenues	14.00%	19.00%
Sales | United States Government
Segment Reporting Information [Line Items]
Percentage of total consolidated revenues by customer	58.00%	62.00%

Operating_Segments_Revenues_an

Operating Segments - Revenues and Operating Loss for Reportable Segments Not Including Discontinued Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Technology development revenues	$2,875,515	$2,675,452
Products and licensing revenues	2,463,587	1,796,429
Total revenues	5,339,102	4,471,881
Total operating loss	-2,615,209	-1,952,146
Technology Development
Segment Reporting Information [Line Items]
Total operating loss	-259,486	-1,527,646
Depreciation	73,335	56,743
Amortization	15,573	64,293
Products and Licensing
Segment Reporting Information [Line Items]
Total operating loss	-2,355,723	-424,500
Depreciation	62,829	38,100
Amortization	$13,343	$43,169

Operating_Segments_Assets_for_

Operating Segments - Assets for Reportable Segments (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$26,130,789	$27,584,448
Property plant and equipment, and intangible assets	3,379,214	3,497,057
Technology Development
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	14,073,430	16,503,316
Property plant and equipment, and intangible assets	1,917,712	2,122,157
Products and Licensing
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	12,057,359	11,081,132
Property plant and equipment, and intangible assets	$1,642,993	$1,574,177

Contingencies_and_Guarantees_A

Contingencies and Guarantees - Additional information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Mar. 31, 2015	Sep. 30, 2014
	purchase_order
Loss Contingencies [Line Items]
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		0.2
Defense Contract Audit Agency | Preliminary Audit Report
Loss Contingencies [Line Items]
Claimed cost, subject to potential penalty			$0.80

Subsequent_Events_Details

Subsequent Events (Details) (API, Subsequent Event)	8-May-15
API | Subsequent Event
Subsequent Event [Line Items]
Number of company shares received by API stockholders for every API stock owned	0.31782