Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 08, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LUNA | |
Entity Registrant Name | LUNA INNOVATIONS INC | |
Entity Central Index Key | 1,239,819 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 27,542,401 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 13,183,151 | $ 17,464,040 |
Accounts receivable, net | 11,976,920 | 11,034,557 |
Inventory | 7,898,724 | 8,863,167 |
Prepaid expenses and other current assets | 1,770,071 | 1,388,439 |
Total current assets | 34,828,866 | 38,750,203 |
Property and equipment, net | 7,112,535 | 6,614,238 |
Intangible assets, net | 9,053,931 | 10,404,312 |
Goodwill | 2,348,331 | 2,274,112 |
Other assets | 88,948 | 88,948 |
Total assets | 53,432,611 | 58,131,813 |
Current liabilities: | ||
Current portion of long-term debt obligations | 1,833,333 | 1,833,333 |
Current portion of capital lease obligations | 50,926 | 31,459 |
Accounts payable | 3,257,014 | 4,054,425 |
Accrued liabilities | 8,220,339 | 8,304,686 |
Deferred revenue | 988,888 | 1,109,759 |
Total current liabilities | 14,350,500 | 15,333,662 |
Long-term deferred rent | 1,440,146 | 1,564,229 |
Long-term debt obligations | 2,916,667 | 4,291,667 |
Long-term capital lease obligations | 128,612 | 35,237 |
Total liabilities | 18,835,925 | 21,224,795 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at September 30, 2016 and December 31, 2015 | 1,322 | 1,322 |
Common stock, par value $0.001, 100,000,000 shares authorized, 27,982,877 and 27,644,832 shares issued, 27,542,401 and 27,477,181 shares outstanding at September 30, 2016 and December 31, 2015 | 28,262 | 28,178 |
Treasury stock at cost, 440,427 and 167,652 shares at September 30, 2016 and December 31, 2015 | (509,994) | (184,934) |
Additional paid-in capital | 82,226,909 | 81,461,907 |
Accumulated deficit | (47,149,813) | (44,399,455) |
Total stockholders’ equity | 34,596,686 | 36,907,018 |
Total liabilities and stockholders’ equity | $ 53,432,611 | $ 58,131,813 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 1,321,514 | 1,321,514 |
Preferred stock, issued (in shares) | 1,321,514 | 1,321,514 |
Preferred stock, outstanding (in shares) | 1,321,514 | 1,321,514 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 27,982,877 | 27,644,832 |
Common stock, outstanding (in shares) | 27,542,401 | 27,477,181 |
Treasury Stock (in shares) | 440,427 | 167,652 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Technology development | $ 4,312,372 | $ 3,277,442 | $ 12,173,016 | $ 9,881,228 |
Products and licensing | 10,306,548 | 9,927,788 | 31,079,821 | 18,688,852 |
Total revenues | 14,618,920 | 13,205,230 | 43,252,837 | 28,570,080 |
Cost of revenues: | ||||
Technology development | 3,106,098 | 2,558,987 | 9,167,380 | 7,218,757 |
Products and licensing | 5,903,522 | 5,667,170 | 18,461,702 | 9,886,557 |
Total cost of revenues | 9,009,620 | 8,226,157 | 27,629,082 | 17,105,314 |
Gross profit | 5,609,300 | 4,979,073 | 15,623,755 | 11,464,766 |
Operating expense: | ||||
Selling, general and administrative | 4,567,168 | 4,210,718 | 13,793,051 | 13,916,545 |
Research, development and engineering | 1,403,678 | 1,491,096 | 4,194,824 | 2,982,451 |
Total operating expense | 5,970,846 | 5,701,814 | 17,987,875 | 16,898,996 |
Operating loss | (361,546) | (722,741) | (2,364,120) | (5,434,230) |
Other income (expense): | ||||
Other (expense) income, net | (231) | 14,765 | (36,940) | (7,602) |
Interest expense | (73,599) | (77,417) | (238,689) | (136,520) |
Total other expense | (73,830) | (62,652) | (275,629) | (144,122) |
Loss before income taxes | (435,376) | (785,393) | (2,639,749) | (5,578,352) |
Income tax expense | 9,702 | 16,296 | 35,877 | 19,104 |
Net loss | (445,078) | (801,689) | (2,675,626) | (5,597,456) |
Preferred stock dividend | 28,941 | 18,217 | 74,731 | 64,798 |
Net loss attributable to common stockholders | $ (474,019) | $ (819,906) | $ (2,750,357) | $ (5,662,254) |
Net loss per share attributable to common stockholders: | ||||
Basic and diluted (in dollars per share) | $ (0.02) | $ (0.03) | $ (0.10) | $ (0.26) |
Weighted average common shares and common equivalent shares outstanding: | ||||
Basic and diluted (in shares) | 27,605,028 | 27,393,392 | 27,531,730 | 21,530,315 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows used in operating activities | ||
Net loss | $ (2,675,626) | $ (5,597,456) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 2,759,877 | 1,548,808 |
Share-based compensation | 665,354 | 846,727 |
Bad debt expense | 255,522 | 10,375 |
Change in assets and liabilities | ||
Accounts receivable | (1,197,885) | (328,061) |
Inventory | 964,443 | (1,426,968) |
Other current assets | (381,632) | (396,671) |
Accounts payable and accrued expenses | (1,055,060) | (897,163) |
Deferred revenue | (120,871) | (72,107) |
Net cash used in operating activities | (785,878) | (6,312,516) |
Cash flows (used in) provided by investing activities | ||
Acquisition of property and equipment | (1,433,260) | (387,508) |
Intangible property costs | (317,287) | (237,245) |
Cash acquired in business combination | 0 | 374,517 |
Net cash used in investing activities | (1,750,547) | (250,236) |
Cash flows (used in) provided by financing activities | ||
Payments on capital lease obligations | (44,404) | (56,629) |
Payments of debt obligations | (1,375,000) | (6,337,355) |
Repurchase of common stock | (325,060) | (152,713) |
Proceeds from term loan | 0 | 6,000,000 |
Proceeds from the exercise of options | 0 | 82,516 |
Net cash used in financing activities | (1,744,464) | (464,181) |
Net decrease in cash and cash equivalents | (4,280,889) | (7,026,933) |
Cash and cash equivalents—beginning of period | 17,464,040 | 14,116,969 |
Cash and cash equivalents—end of period | 13,183,151 | 7,090,036 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 239,347 | 106,998 |
Cash paid for income taxes | 203,305 | 19,104 |
Non-cash investing and financing activities | ||
Shares of common stock issued for business combination | 0 | 11,872,557 |
Dividend on preferred stock, 59,469 shares of common stock issuable for the nine months ended September 30, 2016 and 2015 | 74,731 | 64,798 |
Capital expenditures funded by capital lease borrowings | $ 157,246 | $ 0 |
Consolidated Statements of Cas6
Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Dividend on preferred stock, common issuable (in shares) | 59,469 | 59,469 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003. We are a leader in advanced optical technology, providing unique capabilities in high speed optoelectronics and high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive 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 operations beginning in 2005. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital markets transactions and the sale of assets. 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”) for interim financial statements and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. 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 September 30, 2016 , results of operations for the three and nine months ended September 30, 2016 and 2015 , and cash flows for the nine months ended September 30, 2016 and 2015 . The results of operations for the three and nine months ended September 30, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015 , included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 29, 2016. 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 ("SVB") to be at market for similar instruments. 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 our net loss by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income, 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 5.6 million and 6.5 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are not included for the three months ended September 30, 2016 and 2015 , respectively, as they are anti-dilutive to earnings per share due to our net loss. The effect of 5.7 million and 6.2 million common stock equivalents are not included for the nine months ended September 30, 2016 and 2015 , respectively, as they are considered anti-dilutive to earnings per share due to our net loss. Recently Issued Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230) , which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments should be applied retrospectively to all periods presented. We do not expect ASU 2016-15 will have a material impact on our financial statements. In April 2016, the FASB amended the FASB Accounting Standards Codification and created a new Topic 606, and issued ASU No. 2016-10, Revenue from contracts with customers: Identifying Performance Obligations and Licensing . This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance throughout the Industry Topics of the Accounting Standards Codification, and is effective for annual and interim reporting periods beginning after December 15, 2017. We are currently determining the transition method and assessing the impact the amendments may have on our financial condition, results of operations or cash flows as a result of adopting this standard. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accountin g. The amendments apply to several aspects of accounting for share-based compensation including the recognition of excess tax benefits and deficiencies and their related presentation in the statement of cash flows as well as accounting for forfeitures. ASU No. 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods and allows for prospective, retrospective or modified retrospective adoption, depending on the area covered in the update, with early adoption permitted. We are currently determining the transition method and assessing the impact the amendments may have on our financial condition, results of operations or cash flows as a result of adopting this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires a lessee to recognize in its statement of financial position an asset and liability for most leases with a term greater than 12 months. Lessees should recognize a liability to make lease payments and a right-of-use asset representing the lessee's right to use the underlying asset for the lease term. The amendment is effective for fiscal years ending after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be classified as noncurrent in any classified balance sheet rather than being separated into current and non-current amounts. The amendment is effective for reporting periods beginning after December 15, 2016. We do not expect the adoption of this standard to have a significant impact on our consolidated financial statements. |
Merger with API
Merger with API | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Merger with API | Merger with API On May 8, 2015, we completed our merger with Advanced Photonix, Inc. ("API") pursuant to the Agreement and Plan of Merger (the "Merger Agreement") for a total purchase consideration of $ 15.9 million (the "Merger"). In accordance with the terms of the Merger Agreement, API shareholders received 0 .31782 shares of our common stock for each share of API common stock they owned. The Merger has been accounted for under the acquisition method of accounting in accordance with ASC 805, with Luna treated as the accounting acquirer. We incurred $0.1 million and $3.6 million in Merger-related costs for the three and nine months ended September 30, 2015 , respectively. Merger-related costs are included within selling, general and administrative expenses in the Consolidated Statement of Operations. We did not incur Merger-related costs for the three and nine months ended September 30, 2016. The total purchase consideration of $ 15.9 million consisted of the following: Purchase Consideration Fair value of Luna common stock issued to API shareholders $ 15,671,775 Fair value of vested API options assumed by Luna 187,879 Total purchase consideration $ 15,859,654 Under the acquisition method of accounting, the total estimated purchase consideration is allocated to the acquired tangible and intangible assets and assumed liabilities based on their estimated fair values as of the acquisition date. Any excess of the fair value of assets acquired and liabilities assumed over the fair value of the acquisition consideration is recognized as a gain by the acquirer. We completed an allocation of the purchase consideration with the assistance of a third-party valuation expert, as represented in the table below. Allocation of Purchase Consideration Cash $ 374,517 Accounts receivable 3,314,994 Inventory 5,246,000 Other current assets 541,726 Property and equipment 3,601,850 Identifiable intangible assets 11,100,000 Goodwill 2,348,331 Other assets 86,953 Accounts payable and accrued expenses (5,508,789 ) Debt (5,212,355 ) Other liabilities (33,573 ) Total purchase consideration $ 15,859,654 The identifiable intangible assets acquired and their estimated lives were as follows: Estimated Fair Value Estimated Useful Life Developed technology $ 4,500,000 2-10 years In-process research and development 3,900,000 Indefinite Customer base 1,300,000 9-11 years Trade names 1,000,000 10 years Backlog 400,000 1 year $ 11,100,000 Amortization expense related to intangible assets was $1.7 million for the nine months ended September 30, 2016 . Goodwill Goodwill represents the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed in connection with the Merger. During 2015 and 2016, we recognized various measurement period adjustments to the value of assets acquired and liabilities assumed in the Merger. These adjustments primarily related to the estimated value of trade names acquired, certain deferred compensation and claims reserve liabilities assumed, with an offsetting increase to the recorded value of goodwill. Goodwill as of January 1, 2014 $ — Goodwill recorded at acquisition date of API 614,184 Measurement period adjustments 1,659,928 Goodwill as of December 31, 2015 2,274,112 Measurement period adjustments 74,219 Goodwill as of September 30, 2016 $ 2,348,331 Pro forma consolidated results of operations The following unaudited pro forma financial information presents combined results of operations for each of the periods presented as if the Merger had been completed on January 1, 2015. The pro forma information includes adjustments to depreciation expense for property and equipment acquired, amortization expense for the intangible assets acquired, interest expense for the new debt facility, and elimination of the Merger-related transaction expenses recognized in each period. The pro forma data is for informational purposes only and is not necessarily indicative of the consolidated results of operations of the combined business had the Merger actually occurred on January 1, 2015 or the results of future operations of the combined business. For instance, planned or expected operational synergies following the Merger are not reflected in the pro forma information. Consequently, actual results will differ from the unaudited pro forma information presented below. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) Revenue $ 14,619 $ 13,205 $ 43,253 $ 37,437 Net loss $ (427 ) $ (802 ) $ (2,473 ) $ (4,691 ) |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2016 | |
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 write down inventory for estimated obsolescence or unmarketable inventory in an amount 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 were as follows: September 30, December 31, (unaudited) Finished goods $ 1,603,353 $ 1,938,466 Work-in-process 1,145,002 1,227,270 Raw materials 5,150,369 5,697,431 Total inventory $ 7,898,724 $ 8,863,167 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at September 30, 2016 and December 31, 2015 consisted of the following: September 30, 2016 December 31, 2015 (unaudited) Accrued compensation $ 4,848,062 $ 4,719,533 Claims reserve 1,577,123 1,752,904 Accrued sub-contracts 493,357 351,847 Accrued professional fees 223,220 133,847 Accrued income tax — 160,438 Deferred rent 157,287 137,889 Royalties 255,719 351,003 Warranty reserve 176,338 173,687 Accrued liabilities - other 489,233 523,538 Total accrued liabilities $ 8,220,339 $ 8,304,686 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Silicon Valley Bank Facility We currently have a Loan and Security Agreement with 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 API, 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% . On May 8, 2015, we entered into the Sixth Loan Modification Agreement with SVB, under which we executed a new term loan in the principal amount of $6.0 million and used the proceeds principally to repay the previously outstanding indebtedness of API and other transaction related costs. The Term Loan bore interest at a floating prime rate plus 2% and was to be repaid in 48 monthly installments of $125,000 plus accrued interest. In September 2015, we entered into the Waiver and Seventh Loan Modification Agreement, which provides an additional $1 million of available financing for purchases of equipment through December 31, 2015, which we have fully borrowed. The Waiver and Seventh Loan Modification Agreement also provides a waiver of any breach of the minimum liquidity covenant in periods prior to the amendment, and requires us to maintain at each month end a ratio of cash plus 60% of accounts receivable greater than or equal to 1.5 times the outstanding principal balance of the Term Loan. In addition, the Waiver and Seventh Loan Modification requires us to achieve a minimum Adjusted EBITDA, as defined therein, on a quarterly basis. As modified by the Seventh Loan Modification Agreement, the Term Loan bears interest at a floating prime rate plus 2% and is to be repaid in 35 monthly installments of $27,778 plus accrued interest. The Credit Facility also requires us to observe a number of additional operational covenants, including protection and registration of intellectual property rights, and certain customary negative covenants. As of September 30, 2016 , we were in compliance with all covenants under the Credit Facility. Amounts due under the Credit Facility are secured by substantially all of our assets, including intellectual property, personal property and bank accounts. 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 September 30, 2016 , there were no events of default on the Credit Facility. The balance under the Term Loan at September 30, 2016 and December 31, 2015 , was $4.8 million and $6.1 million , respectively. The effective rate of our Term Loan at September 30, 2016 was 5.5% . The following table presents a summary of debt outstanding as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (unaudited) Silicon Valley Bank Term Loan $ 4,750,000 $ 6,125,000 Less: current portion 1,833,333 1,833,333 Total long-term debt $ 2,916,667 $ 4,291,667 The schedule of remaining principal payments under our term loan as of September 30, 2016 was as follows: 2016 458,328 2017 1,833,336 2018 1,833,336 2019 625,000 $ 4,750,000 |
Capital Stock and Share-Based C
Capital Stock and Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Capital Stock and Share-Based Compensation | Capital Stock and 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-Merton option pricing model to value any option or warrant awards granted. We recognize share-based compensation for such awards on a straight-line basis over the requisite 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 nine months ended September 30, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: Nine Months Ended September 30, 2016 2015 Risk-free interest rate 1.5% 1.88% Expected life of options (in years) 7.5 7.5 Expected stock price volatility 73% 103% Employee turnover rates 14% 40% Expected dividend yield —% —% A summary of the activity for our 2003 Stock Plan, 2006 Equity Incentive Plan and 2016 Equity Incentive Plan is presented below for the nine months ended September 30, 2016 : Options Outstanding Options Exercisable Number of Shares Price per Share Weighted Average Exercise Price Aggregate Intrinsic Value (1) Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Balance, January 1, 2016 3,800,728 $0.61 - $8.43 $ 2.17 $ 111,314 3,045,150 $ 2.39 $ 103,603 Granted 20,000 $1.15 $ 1.15 Canceled (798,749 ) $1.18 - $8.43 $ 2.93 Balance, September 30, 2016 3,021,979 $0.61 - $8.43 $ 1.96 $ 72,271 2,728,465 $ 2.03 $ 85,643 (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 September 30, 2016 , the outstanding stock options to purchase an aggregate of 3.0 million shares had a weighted-average remaining contractual term of 5.2 years , and the exercisable stock options to purchase an aggregate of 2.7 million shares had a weighted-average remaining contractual term of 4.9 years. For the three months ended September 30, 2016 and 2015 we recognized $0.2 million and $0.3 million in share-based compensation expense, respectively, and for the nine months ended September 30, 2016 and 2015 we recognized $0.7 million and $0.8 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 $0.4 million in share-based compensation expense over the weighted-average remaining service period of 1.0 years for stock options outstanding as of September 30, 2016 . The following table summarizes the unvested value of our restricted stock awards: Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Value of Unvested Shares Balance at January 1, 2016 $ 669,625 $ 1.23 $ 823,639 Granted 313,724 $ 1.15 572,700 Vested (303,246 ) $ 1.25 (379,058 ) Repurchased (73,675 ) $ 1.14 (84,244 ) Balance at September 30, 2016 $ 606,428 $ 1.18 $ 933,037 The following details our equity transactions during the nine months ended September 30, 2016 : Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Shares $ Shares $ Shares $ $ Balance at January 1, 2016 1,321,514 1,322 27,477,181 28,178 167,652 (184,934 ) 81,461,907 Exercise of stock options — — — — — — — Share-based compensation — — 337,995 — — — 665,354 Non-cash compensation — — — 25 — — 24,976 Stock dividends to Carilion Clinic (1) — — — 59 — — 74,672 Forfeitures of restricted stock grants — — (73,675 ) — — — — Repurchase of common stock — — (199,100 ) — 272,775 (325,060 ) — Balance at September 30, 2016 1,321,514 1,322 27,542,401 28,262 440,427 (509,994 ) 82,226,909 (1) The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to September 30, 2016 . For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through September 30, 2016 , the Series A Preferred Stock issued to Carilion has accrued $1,032,895 in dividends. The accrued and unpaid dividends as of September 30, 2016 will be paid by the issuance of 532,578 shares of our common stock upon Carilion’s written request. Stock Repurchase Program In May 2016, our board of directors authorized us to repurchase up to $2,000,000 of our common stock through May 31, 2017. Our stock repurchase program does not obligate us to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. As of September 30, 2016, we had repurchased a total of 199,100 shares for an aggregate purchase price of $0.2 million . The following chart details our share repurchases during each month of the quarter ended September 30, 2016 : Total Number of Shares Repurchased Average Price Paid per Share July 2016 41,100 $ 1.24 August 2016 79,000 $ 1.19 September 2016 20,000 $ 1.21 We currently maintain these repurchased shares as treasury stock. |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2016 | |
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. Through September 30, 2016 , 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 29, 2016). The table below presents revenues and operating loss for reportable segments: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) Revenues: Technology development $ 4,312,372 $ 3,277,442 $ 12,173,016 $ 9,881,228 Products and licensing 10,306,548 9,927,788 31,079,821 18,688,852 Total revenues $ 14,618,920 $ 13,205,230 $ 43,252,837 $ 28,570,080 Technology development operating income (loss) $ 295,524 $ (476,179 ) $ (34,615 ) $ (3,423,863 ) Products and licensing operating loss (657,070 ) (246,562 ) (2,329,505 ) (2,010,367 ) Total operating loss $ (361,546 ) $ (722,741 ) $ (2,364,120 ) $ (5,434,230 ) Depreciation, technology development $ 87,884 $ 110,597 $ 264,549 $ 314,451 Depreciation, products and licensing $ 300,530 $ 273,727 $ 827,660 $ 499,530 Amortization, technology development $ 23,651 $ 21,026 $ 141,490 $ 78,248 Amortization, products and licensing $ 486,209 $ 319,028 $ 1,526,178 $ 656,579 The table below presents assets for reportable segments: September 30, December 31, (unaudited) Total segment assets: Technology development $ 15,390,519 $ 21,203,211 Products and licensing 38,042,092 36,928,602 Total assets $ 53,432,611 $ 58,131,813 Property plant and equipment, and intangible assets, technology development $ 2,716,840 $ 2,917,448 Property plant and equipment, and intangible assets, products and licensing $ 15,797,957 $ 16,375,215 There are no material inter-segment revenues for any period presented. The U.S. government accounted for 31% and 26% of total consolidated revenues for the three months ended September 30, 2016 and 2015 , respectively, and for 30% and 36% of total consolidated revenues for the nine months ended September 30, 2016 and 2015 , respectively. International revenues (customers outside the United States) accounted for approximately 22% and 31% of total consolidated revenues for the three months ended September 30, 2016 and 2015 , respectively, and approximately 29% and 23% of total consolidated revenues for the nine months ended September 30, 2016 and 2015 , respectively. Revenues from customers in China represented approximately 9% and 16% of total revenues for the three and nine months ended September 30, 2016 , respectively. No other single country, outside of the United States, represented more than 10% of total revenues in the three and nine months ended September 30, 2015 . |
Contingencies and Guarantees
Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
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 it is not reasonably possible that these legal proceedings will have a material adverse effect on our financial position or results of operations. 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. In June 2015, we received from the Defense Contract Management Agency a final determination and demand for payment of penalties, interest, and over billing in the aggregate amount of $1.1 million . In July 2015, we filed an appeal with the Armed Services Board of Contract Appeals. Because of the early stage of the appeal process, we are unable to estimate the amount of loss, if any, that may be realized. In the third quarter of 2016 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. At September 30, 2016 , approximately $1.4 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 Sig15
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003. We are a leader in advanced optical technology, providing unique capabilities in high speed optoelectronics and high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive 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 operations beginning in 2005. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital markets transactions and the sale of assets. |
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”) for interim financial statements and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. 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 September 30, 2016 , results of operations for the three and nine months ended September 30, 2016 and 2015 , and cash flows for the nine months ended September 30, 2016 and 2015 . The results of operations for the three and nine months ended September 30, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015 , included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 29, 2016. |
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 ("SVB") to be at market for similar instruments. 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 our net loss by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income, 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 August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230) , which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments should be applied retrospectively to all periods presented. We do not expect ASU 2016-15 will have a material impact on our financial statements. In April 2016, the FASB amended the FASB Accounting Standards Codification and created a new Topic 606, and issued ASU No. 2016-10, Revenue from contracts with customers: Identifying Performance Obligations and Licensing . This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance throughout the Industry Topics of the Accounting Standards Codification, and is effective for annual and interim reporting periods beginning after December 15, 2017. We are currently determining the transition method and assessing the impact the amendments may have on our financial condition, results of operations or cash flows as a result of adopting this standard. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accountin g. The amendments apply to several aspects of accounting for share-based compensation including the recognition of excess tax benefits and deficiencies and their related presentation in the statement of cash flows as well as accounting for forfeitures. ASU No. 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods and allows for prospective, retrospective or modified retrospective adoption, depending on the area covered in the update, with early adoption permitted. We are currently determining the transition method and assessing the impact the amendments may have on our financial condition, results of operations or cash flows as a result of adopting this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires a lessee to recognize in its statement of financial position an asset and liability for most leases with a term greater than 12 months. Lessees should recognize a liability to make lease payments and a right-of-use asset representing the lessee's right to use the underlying asset for the lease term. The amendment is effective for fiscal years ending after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be classified as noncurrent in any classified balance sheet rather than being separated into current and non-current amounts. The amendment is effective for reporting periods beginning after December 15, 2016. We do not expect the adoption of this standard to have a significant impact on our consolidated financial statements. |
Merger with API (Tables)
Merger with API (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Total Purchase Consideration | The total purchase consideration of $ 15.9 million consisted of the following: Purchase Consideration Fair value of Luna common stock issued to API shareholders $ 15,671,775 Fair value of vested API options assumed by Luna 187,879 Total purchase consideration $ 15,859,654 |
Schedule of Allocation of the Purchase Consideration | We completed an allocation of the purchase consideration with the assistance of a third-party valuation expert, as represented in the table below. Allocation of Purchase Consideration Cash $ 374,517 Accounts receivable 3,314,994 Inventory 5,246,000 Other current assets 541,726 Property and equipment 3,601,850 Identifiable intangible assets 11,100,000 Goodwill 2,348,331 Other assets 86,953 Accounts payable and accrued expenses (5,508,789 ) Debt (5,212,355 ) Other liabilities (33,573 ) Total purchase consideration $ 15,859,654 |
Schedule of Identifiable Intangible Assets Acquired and their Estimated Lives | The identifiable intangible assets acquired and their estimated lives were as follows: Estimated Fair Value Estimated Useful Life Developed technology $ 4,500,000 2-10 years In-process research and development 3,900,000 Indefinite Customer base 1,300,000 9-11 years Trade names 1,000,000 10 years Backlog 400,000 1 year $ 11,100,000 |
Schedule of Goodwill and Related Adjustments | These adjustments primarily related to the estimated value of trade names acquired, certain deferred compensation and claims reserve liabilities assumed, with an offsetting increase to the recorded value of goodwill. Goodwill as of January 1, 2014 $ — Goodwill recorded at acquisition date of API 614,184 Measurement period adjustments 1,659,928 Goodwill as of December 31, 2015 2,274,112 Measurement period adjustments 74,219 Goodwill as of September 30, 2016 $ 2,348,331 |
Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information presents combined results of operations for each of the periods presented as if the Merger had been completed on January 1, 2015. The pro forma information includes adjustments to depreciation expense for property and equipment acquired, amortization expense for the intangible assets acquired, interest expense for the new debt facility, and elimination of the Merger-related transaction expenses recognized in each period. The pro forma data is for informational purposes only and is not necessarily indicative of the consolidated results of operations of the combined business had the Merger actually occurred on January 1, 2015 or the results of future operations of the combined business. For instance, planned or expected operational synergies following the Merger are not reflected in the pro forma information. Consequently, actual results will differ from the unaudited pro forma information presented below. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) Revenue $ 14,619 $ 13,205 $ 43,253 $ 37,437 Net loss $ (427 ) $ (802 ) $ (2,473 ) $ (4,691 ) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventory were as follows: September 30, December 31, (unaudited) Finished goods $ 1,603,353 $ 1,938,466 Work-in-process 1,145,002 1,227,270 Raw materials 5,150,369 5,697,431 Total inventory $ 7,898,724 $ 8,863,167 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at September 30, 2016 and December 31, 2015 consisted of the following: September 30, 2016 December 31, 2015 (unaudited) Accrued compensation $ 4,848,062 $ 4,719,533 Claims reserve 1,577,123 1,752,904 Accrued sub-contracts 493,357 351,847 Accrued professional fees 223,220 133,847 Accrued income tax — 160,438 Deferred rent 157,287 137,889 Royalties 255,719 351,003 Warranty reserve 176,338 173,687 Accrued liabilities - other 489,233 523,538 Total accrued liabilities $ 8,220,339 $ 8,304,686 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt Outstanding | The following table presents a summary of debt outstanding as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (unaudited) Silicon Valley Bank Term Loan $ 4,750,000 $ 6,125,000 Less: current portion 1,833,333 1,833,333 Total long-term debt $ 2,916,667 $ 4,291,667 |
Schedule of Remaining Principal Payments Under the Term Loan | The schedule of remaining principal payments under our term loan as of September 30, 2016 was as follows: 2016 458,328 2017 1,833,336 2018 1,833,336 2019 625,000 $ 4,750,000 |
Capital Stock and Share-Based20
Capital Stock and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Assumptions Used to Estimate Fair Value of Options Granted | The fair value of each option granted during the nine months ended September 30, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: Nine Months Ended September 30, 2016 2015 Risk-free interest rate 1.5% 1.88% Expected life of options (in years) 7.5 7.5 Expected stock price volatility 73% 103% Employee turnover rates 14% 40% Expected dividend yield —% —% |
Summary of Activity for Stock and Equity Incentive Plans | A summary of the activity for our 2003 Stock Plan, 2006 Equity Incentive Plan and 2016 Equity Incentive Plan is presented below for the nine months ended September 30, 2016 : Options Outstanding Options Exercisable Number of Shares Price per Share Weighted Average Exercise Price Aggregate Intrinsic Value (1) Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Balance, January 1, 2016 3,800,728 $0.61 - $8.43 $ 2.17 $ 111,314 3,045,150 $ 2.39 $ 103,603 Granted 20,000 $1.15 $ 1.15 Canceled (798,749 ) $1.18 - $8.43 $ 2.93 Balance, September 30, 2016 3,021,979 $0.61 - $8.43 $ 1.96 $ 72,271 2,728,465 $ 2.03 $ 85,643 (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 the unvested value of our restricted stock awards: Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Value of Unvested Shares Balance at January 1, 2016 $ 669,625 $ 1.23 $ 823,639 Granted 313,724 $ 1.15 572,700 Vested (303,246 ) $ 1.25 (379,058 ) Repurchased (73,675 ) $ 1.14 (84,244 ) Balance at September 30, 2016 $ 606,428 $ 1.18 $ 933,037 |
Details of Equity Transactions | The following details our equity transactions during the nine months ended September 30, 2016 : Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Shares $ Shares $ Shares $ $ Balance at January 1, 2016 1,321,514 1,322 27,477,181 28,178 167,652 (184,934 ) 81,461,907 Exercise of stock options — — — — — — — Share-based compensation — — 337,995 — — — 665,354 Non-cash compensation — — — 25 — — 24,976 Stock dividends to Carilion Clinic (1) — — — 59 — — 74,672 Forfeitures of restricted stock grants — — (73,675 ) — — — — Repurchase of common stock — — (199,100 ) — 272,775 (325,060 ) — Balance at September 30, 2016 1,321,514 1,322 27,542,401 28,262 440,427 (509,994 ) 82,226,909 (1) The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to September 30, 2016 . For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through September 30, 2016 , the Series A Preferred Stock issued to Carilion has accrued $1,032,895 in dividends. The accrued and unpaid dividends as of September 30, 2016 will be paid by the issuance of 532,578 shares of our common stock upon Carilion’s written request. |
Details of Stock Repurchase Program | The following chart details our share repurchases during each month of the quarter ended September 30, 2016 : Total Number of Shares Repurchased Average Price Paid per Share July 2016 41,100 $ 1.24 August 2016 79,000 $ 1.19 September 2016 20,000 $ 1.21 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenues, Operating Loss and Assets for Reportable Segments | The table below presents revenues and operating loss for reportable segments: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) Revenues: Technology development $ 4,312,372 $ 3,277,442 $ 12,173,016 $ 9,881,228 Products and licensing 10,306,548 9,927,788 31,079,821 18,688,852 Total revenues $ 14,618,920 $ 13,205,230 $ 43,252,837 $ 28,570,080 Technology development operating income (loss) $ 295,524 $ (476,179 ) $ (34,615 ) $ (3,423,863 ) Products and licensing operating loss (657,070 ) (246,562 ) (2,329,505 ) (2,010,367 ) Total operating loss $ (361,546 ) $ (722,741 ) $ (2,364,120 ) $ (5,434,230 ) Depreciation, technology development $ 87,884 $ 110,597 $ 264,549 $ 314,451 Depreciation, products and licensing $ 300,530 $ 273,727 $ 827,660 $ 499,530 Amortization, technology development $ 23,651 $ 21,026 $ 141,490 $ 78,248 Amortization, products and licensing $ 486,209 $ 319,028 $ 1,526,178 $ 656,579 The table below presents assets for reportable segments: September 30, December 31, (unaudited) Total segment assets: Technology development $ 15,390,519 $ 21,203,211 Products and licensing 38,042,092 36,928,602 Total assets $ 53,432,611 $ 58,131,813 Property plant and equipment, and intangible assets, technology development $ 2,716,840 $ 2,917,448 Property plant and equipment, and intangible assets, products and licensing $ 15,797,957 $ 16,375,215 |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Details) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016shares | Sep. 30, 2015shares | Sep. 30, 2016segmentshares | Sep. 30, 2015shares | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 2 | |||
Antidilutive securities excluded from computation of net loss per share (in shares) | shares | 5.6 | 6.5 | 5.7 | 6.2 |
Merger with API - Narrative (De
Merger with API - Narrative (Details) - API | May 08, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Total purchase consideration | $ 15,859,654 | ||||
Number of company shares received by API stockholders for every API stock owned | 0.31782 | ||||
Merger-related costs | $ 0 | $ 100,000 | $ 0 | $ 3,600,000 | |
Intangible asset amortization expense | $ 1,700,000 |
Merger with API - Schedule of T
Merger with API - Schedule of Total Purchase Consideration (Details) - API | May 08, 2015USD ($) |
Purchase Consideration | |
Fair value of Luna common stock issued to API shareholders | $ 15,671,775 |
Fair value of vested API options assumed by Luna | 187,879 |
Total purchase consideration | $ 15,859,654 |
Merger with API - Allocation of
Merger with API - Allocation of Purchase Consideration (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | May 08, 2015 | Dec. 31, 2013 |
Allocation of Purchase Consideration | ||||
Goodwill | $ 2,348,331 | $ 2,274,112 | ||
API | ||||
Allocation of Purchase Consideration | ||||
Cash | $ 374,517 | |||
Accounts receivable | 3,314,994 | |||
Inventory | 5,246,000 | |||
Other current assets | 541,726 | |||
Property and equipment | 3,601,850 | |||
Identifiable intangible assets | 11,100,000 | |||
Goodwill | $ 2,348,331 | $ 2,274,112 | 2,348,331 | $ 0 |
Other assets | 86,953 | |||
Accounts payable and accrued expenses | (5,508,789) | |||
Debt | (5,212,355) | |||
Other liabilities | (33,573) | |||
Total purchase consideration | $ 15,859,654 |
Merger with API - Preliminary I
Merger with API - Preliminary Identifiable Intangible Assets Acquired and their Estimated Lives (Details) - API - USD ($) | May 08, 2015 | Sep. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 11,100,000 | |
In-process research and development | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Identifiable indefinite-lived intangible assets acquired | 3,900,000 | |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable finite-lived intangible assets acquired | 4,500,000 | |
Developed technology | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 2 years | |
Developed technology | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 10 years | |
Customer base | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable finite-lived intangible assets acquired | 1,300,000 | |
Customer base | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 9 years | |
Customer base | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 11 years | |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable finite-lived intangible assets acquired | 1,000,000 | |
Estimated Useful Life | 10 years | |
Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable finite-lived intangible assets acquired | $ 400,000 | |
Estimated Useful Life | 1 year |
Merger with API - Goodwill (Det
Merger with API - Goodwill (Details) - USD ($) | 9 Months Ended | 24 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Goodwill | ||
Goodwill, beginning balance | $ 2,274,112 | |
Goodwill, ending balance | 2,348,331 | $ 2,274,112 |
API | ||
Goodwill | ||
Goodwill, beginning balance | 2,274,112 | 0 |
Goodwill recorded at acquisition date of API | 614,184 | |
Measurement period adjustments | 74,219 | 1,659,928 |
Goodwill, ending balance | $ 2,348,331 | $ 2,274,112 |
Merger with API - Pro Forma Con
Merger with API - Pro Forma Consolidated Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Combinations [Abstract] | ||||
Revenue | $ 14,619 | $ 13,205 | $ 43,253 | $ 37,437 |
Net loss | $ (427) | $ (802) | $ (2,473) | $ (4,691) |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,603,353 | $ 1,938,466 |
Work-in-process | 1,145,002 | 1,227,270 |
Raw materials | 5,150,369 | 5,697,431 |
Total inventory | $ 7,898,724 | $ 8,863,167 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 4,848,062 | $ 4,719,533 |
Claims reserve | 1,577,123 | 1,752,904 |
Accrued sub-contracts | 493,357 | 351,847 |
Accrued professional fees | 223,220 | 133,847 |
Accrued income tax | 0 | 160,438 |
Deferred rent | 157,287 | 137,889 |
Royalties | 255,719 | 351,003 |
Warranty reserve | 176,338 | 173,687 |
Accrued liabilities - other | 489,233 | 523,538 |
Total accrued liabilities | $ 8,220,339 | $ 8,304,686 |
Debt - Additional Information (
Debt - Additional Information (Details) | May 08, 2015USD ($)installment | Sep. 30, 2015USD ($)installment | May 07, 2015installment | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 4,750,000 | $ 6,125,000 | |||
Term Loan | Silicon Valley Bank | |||||
Debt Instrument [Line Items] | |||||
Debt, face amount | $ 6,000,000 | ||||
Debt, number of monthly payment | installment | 48 | ||||
Effective interest rate | 5.50% | ||||
Term Loan | Silicon Valley Bank | Sixth Loan Modification Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt, face amount | $ 6,000,000 | ||||
Debt, number of monthly payment | installment | 48 | ||||
Debt, monthly principal payments | $ 125,000 | ||||
Term Loan | Silicon Valley Bank | Seventh Loan Modification Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt, face amount | $ 1,000,000 | ||||
Debt, number of monthly payment | installment | 35 | ||||
Debt, additional interest above prime rate | 2.00% | ||||
Debt, monthly principal payments | $ 27,778 | ||||
Liquidity covenant component, accounts receivable percentage | 60.00% | ||||
Liquidity covenant component, outstanding principal loan balance multiplier | 1.5 | ||||
Term Loan | Silicon Valley Bank | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Debt, additional interest above prime rate | 2.00% | ||||
Term Loan | Silicon Valley Bank | Prime Rate | Sixth Loan Modification Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt, additional interest above prime rate | 2.00% |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Silicon Valley Bank Term Loan | $ 4,750,000 | $ 6,125,000 |
Less: current portion | 1,833,333 | 1,833,333 |
Total long-term debt | $ 2,916,667 | $ 4,291,667 |
Debt - Remaining Principal Paym
Debt - Remaining Principal Payments Under the Term Loan (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 458,328 | |
2,017 | 1,833,336 | |
2,018 | 1,833,336 | |
2,019 | 625,000 | |
Silicon Valley Bank Term Loan | $ 4,750,000 | $ 6,125,000 |
Capital Stock and Share-Based34
Capital Stock and Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Equity [Abstract] | |||||
Expected dividend yield | 0.00% | 0.00% | |||
Aggregate outstanding stock options (in shares) | 3,021,979 | 3,021,979 | 3,800,728 | ||
Outstanding stock options, weighted average remaining contractual term | 5 years 2 months 12 days | ||||
Exercisable stock options (in shares) | 2,728,465 | 2,728,465 | 3,045,150 | ||
Exercisable stock options, weighted average remaining contractual term | 4 years 10 months 24 days | ||||
Share-based compensation | $ 200,000 | $ 300,000 | $ 665,354 | $ 846,727 | |
Stock-based compensation expense not yet recognized | $ 400,000 | $ 400,000 | |||
Weighted average remaining service period | 1 year |
Capital Stock and Share-Based35
Capital Stock and Share-Based Compensation - Assumptions Used to Estimate Fair Values of Options Granted (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Equity [Abstract] | ||
Risk-free interest rate | 1.50% | 1.88% |
Expected life of options | 7 years 6 months | 7 years 6 months |
Expected stock price volatility | 73.00% | 103.00% |
Employee turnover rates | 14.00% | 40.00% |
Expected dividend yield | 0.00% | 0.00% |
Capital Stock and Share-Based36
Capital Stock and Share-Based Compensation - Summary of Activity of 2003 Stock Plan, 2006 Equity Incentive Plan and 2016 Equity Incentive Plan (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Options Outstanding, Number of Shares | ||
Beginning Balance (shares) | 3,800,728 | |
Granted (in shares) | 20,000 | |
Canceled (in shares) | (798,748.6) | |
Ending Balance (shares) | 3,021,979 | |
Options Outstanding, Price per Share Range | ||
Beginning balance, lower limit (in usd per share) | $ 0.61 | |
Beginning balance, upper limit (in usd per share) | 8.43 | |
Granted (in usd per share) | 1.15 | |
Canceled lower limit (in usd per share) | 1.18 | |
Canceled upper limit (in usd per share) | 8.43 | |
Ending balance, lower limit (in usd per share) | 0.61 | |
Ending balance, upper limit (in usd per share) | 8.43 | |
Options Outstanding, Weighted Average Exercise Price | ||
Beginning Balance (in usd per share) | 2.17 | |
Granted (in usd per share) | 1.15 | |
Canceled (in usd per share) | 2.93 | |
Ending Balance (in usd per share) | $ 1.96 | |
Additional Disclosures | ||
Options Outstanding, Aggregate Intrinsic Value | $ 72,271 | $ 111,314 |
Options Exercisable, Number of Shares | 2,728,465 | 3,045,150 |
Options Exercisable, Weighted Average Exercise Price (in usd per share) | $ 2.03 | $ 2.39 |
Options Exercisable, Aggregate Intrinsic Value | $ 85,643 | $ 103,603 |
Capital Stock and Share-Based37
Capital Stock and Share-Based Compensation - Summary of Restricted Stock Awards (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Number of Unvested Shares | |
Number of Shares, Beginning balance (in shares) | shares | 669,625 |
Number of Shares, Granted (in shares) | shares | 313,724 |
Number of Shares, Vested (in shares) | shares | (303,246) |
Number of Shares, Repurchased (in shares) | shares | (73,675) |
Number of Shares, Ending balance (in shares) | shares | 606,428 |
Weighted Average Grant Date Fair Value | |
Weighted average fair value, Beginning balance (in usd per share) | $ / shares | $ 1.23 |
Weighted average fair value, Granted (in usd per share) | $ / shares | 1.15 |
Weighted average fair value, Vested (in usd per share) | $ / shares | 1.25 |
Weighted average fair value, Repurchased (in usd per share) | $ / shares | 1.14 |
Weighted average fair value, Ending balance (in usd per share) | $ / shares | $ 1.18 |
Aggregate Value of Unvested Shares | |
Aggregate value of shares, Beginning balance | $ | $ 823,639 |
Aggregate value of shares, Granted | $ | 572,700 |
Aggregate value of shares, Vested | $ | (379,058) |
Aggregate value of shares, Repurchased | $ | (84,244) |
Aggregate value of shares, Ending balance | $ | $ 933,037 |
Capital Stock and Share-Based38
Capital Stock and Share-Based Compensation - Equity Transactions (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Sep. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity | ||||
Stockholder's equity beginning balance | $ 36,907,018 | |||
Preferred stock beginning balance (in shares) | 1,321,514 | |||
Common stock beginning balance (in shares) | 27,477,181 | |||
Treasury stock beginning balance (in shares) | 167,652 | |||
Forfeitures of restricted stock grants | $ 0 | |||
Repurchase of common stock (in shares) | 20,000 | 79,000 | 41,100 | 199,100 |
Preferred stock ending balance (in shares) | 1,321,514 | 1,321,514 | ||
Common stock ending balance (in shares) | 27,542,401 | 27,542,401 | ||
Treasury stock ending balance (in shares) | 440,427 | 440,427 | ||
Stockholder's equity ending balance | $ 34,596,686 | $ 34,596,686 | ||
Carilion Clinic | Series A Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Accrued dividends | $ 1,032,895 | $ 1,032,895 | ||
Stock dividends for preferred shareholders (in shares) | 532,578 | |||
Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Stockholder's equity beginning balance | $ 1,322 | |||
Preferred stock beginning balance (in shares) | 1,321,514 | |||
Exercise of stock options | $ 0 | |||
Exercise of stock options (in shares) | 0 | |||
Share-based compensation | $ 0 | |||
Share-based compensation (in shares) | 0 | |||
Non-cash compensation | $ 0 | |||
Non-cash compensation (in shares) | 0 | |||
Stock dividends to Carilion Clinic | $ 0 | |||
Stock dividends to Carilion Clinic (in shares) | 0 | |||
Forfeitures of restricted stock grants | $ 0 | |||
Forfeitures of restricted stock grants (in shares) | 0 | |||
Repurchase of common stock | $ 0 | |||
Repurchase of common stock (in shares) | 0 | |||
Preferred stock ending balance (in shares) | 1,321,514 | 1,321,514 | ||
Stockholder's equity ending balance | $ 1,322 | $ 1,322 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Stockholder's equity beginning balance | $ 28,178 | |||
Common stock beginning balance (in shares) | 27,477,181 | |||
Exercise of stock options | $ 0 | |||
Exercise of stock options (in shares) | 0 | |||
Share-based compensation | $ 0 | |||
Share-based compensation (in shares) | 337,995 | |||
Non-cash compensation | $ 25 | |||
Non-cash compensation (in shares) | 0 | |||
Stock dividends to Carilion Clinic | $ 59 | |||
Stock dividends to Carilion Clinic (in shares) | 0 | |||
Forfeitures of restricted stock grants | $ 0 | |||
Forfeitures of restricted stock grants (in shares) | (73,675) | |||
Repurchase of common stock | $ 0 | |||
Repurchase of common stock (in shares) | (199,100) | |||
Common stock ending balance (in shares) | 27,542,401 | 27,542,401 | ||
Stockholder's equity ending balance | $ 28,262 | $ 28,262 | ||
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Stockholder's equity beginning balance | $ (184,934) | |||
Treasury stock beginning balance (in shares) | 167,652 | |||
Exercise of stock options | $ 0 | |||
Exercise of stock options (in shares) | 0 | |||
Share-based compensation | $ 0 | |||
Share-based compensation (in shares) | 0 | |||
Non-cash compensation | $ 0 | |||
Non-cash compensation (in shares) | 0 | |||
Stock dividends to Carilion Clinic | $ 0 | |||
Stock dividends to Carilion Clinic (in shares) | 0 | |||
Forfeitures of restricted stock grants | $ 0 | |||
Forfeitures of restricted stock grants (in shares) | 0 | |||
Repurchase of common stock | $ (325,060) | |||
Repurchase of common stock (in shares) | 272,775 | |||
Treasury stock ending balance (in shares) | 440,427 | 440,427 | ||
Stockholder's equity ending balance | $ (509,994) | $ (509,994) | ||
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Stockholder's equity beginning balance | 81,461,907 | |||
Exercise of stock options | 0 | |||
Share-based compensation | 665,354 | |||
Non-cash compensation | 24,976 | |||
Stock dividends to Carilion Clinic | 74,672 | |||
Repurchase of common stock | 0 | |||
Stockholder's equity ending balance | $ 82,226,909 | $ 82,226,909 |
Capital Stock and Share-Based39
Capital Stock and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Sep. 30, 2016 | May 31, 2016 | |
Equity [Abstract] | |||||
Authorized share repurchase amount | $ 2,000,000 | ||||
Amount of stock repurchased | $ 200,000 | ||||
Total Number of Shares Repurchased (in shares) | 20,000 | 79,000 | 41,100 | 199,100 | |
Average Price Paid per Share (in usd per share) | $ 1.21 | $ 1.19 | $ 1.24 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Number of operating segments | 2 | |||
Revenues | Government Contracts Concentration Risk | U.S. Government | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total consolidated revenues by customer | 31.00% | 26.00% | 30.00% | 36.00% |
Revenues | Geographic Concentration Risk | Outside of the United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total consolidated revenues by customer | 22.00% | 31.00% | 29.00% | 23.00% |
Revenues | Geographic Concentration Risk | China | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total consolidated revenues by customer | 9.00% | 16.00% |
Operating Segments - Revenues a
Operating Segments - Revenues and Operating Loss for Reportable Segments Not Including Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Technology development | $ 4,312,372 | $ 3,277,442 | $ 12,173,016 | $ 9,881,228 |
Products and licensing | 10,306,548 | 9,927,788 | 31,079,821 | 18,688,852 |
Total revenues | 14,618,920 | 13,205,230 | 43,252,837 | 28,570,080 |
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | (361,546) | (722,741) | (2,364,120) | (5,434,230) |
Technology development | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 295,524 | (476,179) | (34,615) | (3,423,863) |
Depreciation | 87,884 | 110,597 | 264,549 | 314,451 |
Amortization | 23,651 | 21,026 | 141,490 | 78,248 |
Products and licensing | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | (657,070) | (246,562) | (2,329,505) | (2,010,367) |
Depreciation | 300,530 | 273,727 | 827,660 | 499,530 |
Amortization | $ 486,209 | $ 319,028 | $ 1,526,178 | $ 656,579 |
Operating Segments - Assets for
Operating Segments - Assets for Reportable Segments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Total segment assets: | ||
Total assets | $ 53,432,611 | $ 58,131,813 |
Property plant and equipment, and intangible assets | 7,112,535 | 6,614,238 |
Technology development | ||
Total segment assets: | ||
Total assets | 15,390,519 | 21,203,211 |
Property plant and equipment, and intangible assets | 2,716,840 | 2,917,448 |
Products and licensing | ||
Total segment assets: | ||
Total assets | 38,042,092 | 36,928,602 |
Property plant and equipment, and intangible assets | $ 15,797,957 | $ 16,375,215 |
Contingencies and Guarantees (D
Contingencies and Guarantees (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016USD ($)purchase_order | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Loss Contingencies [Line Items] | |||
Number of non-cancelable purchase orders executed | purchase_order | 2 | ||
Non-cancelable purchase order delivery period | 18 months | ||
Tunable Lasers | |||
Loss Contingencies [Line Items] | |||
Non-cancelable purchase order commitment | $ 1.4 | ||
Non-cancelable purchase order commitment remaining | $ 1.4 | ||
Preliminary Audit Report | Defense Contract Audit Agency | |||
Loss Contingencies [Line Items] | |||
Claimed cost, subject to potential penalty | $ 1.1 | $ 0.8 |