Luna Innovations (LUNA) 10-K 15 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Mar. 12, 2019	Jun. 29, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	LUNA
Entity Registrant Name	LUNA INNOVATIONS INC
Entity Central Index Key	0001239819
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,125,598
Entity Public Float			$ 71.9

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 42,460,267		$ 36,981,533	$ 12,802,458
Accounts receivable, net	13,037,068		5,929,042
Receivable from sale of HSOR business	2,500,000		4,000,976
Contract assets	2,422,495		1,778,142
Inventory	6,873,742		4,634,781
Prepaid expenses and other current assets	935,185		1,140,999
Current assets held for sale	0	$ 4,715,996	4,336,105
Total current assets	68,228,757		58,801,578
Property and equipment, net	3,627,886		2,854,641
Intangible assets, net	3,302,270		1,727,390
Goodwill	101,008		0
Long term contract assets	336,820		209,699
Other assets	1,995		1,995
Non-current assets held for sale	0		2,627,333
Total assets	75,598,736		66,222,636
Current liabilities:
Current portion of long term debt obligations	619,315		1,833,333
Current portion of capital lease obligations	40,586		43,665
Accounts payable	2,395,984		2,111,077
Accrued liabilities	6,597,458		6,547,230
Contract liabilities	2,486,111		3,318,379
Current liabilities held for sale	0	885,818	972,451
Total current liabilities	12,139,454		14,826,135
Long-term portion of deferred rent	1,035,974		1,184,438
Long-term debt obligations	0		603,007
Long-term capital lease obligations	68,978		71,275
Total liabilities	13,244,406		16,684,855
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2018 and 2017	1,322		1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,209,506 and 28,354,822 shares issued, 27,956,401 and 27,283,918 shares outstanding at December 31, 2018 and 2017, respectively	30,120		29,186
Treasury stock at cost, 1,253,105 and 1,070,904 shares at December 31, 2018 and 2017, respectively	(2,116,640)		(1,649,746)
Additional paid-in capital	85,744,750		83,563,208
Accumulated deficit	(21,305,222)	(32,052,161)	(32,406,189)
Total stockholders’ equity	62,354,330	$ 49,891,809	49,537,781	$ 35,089,688
Total liabilities and stockholders’ equity	$ 75,598,736		$ 66,222,636

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
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)	29,209,506	28,354,822
Common stock outstanding (in shares)	27,956,401	27,283,918
Treasury stock (in shares)	1,253,105	1,070,904

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 42,917,245	$ 33,081,865
Cost of revenues:
Total cost of revenues	23,479,345	19,712,835
Gross profit	19,437,900	13,369,030
Operating expense:
Selling, general and administrative	14,794,205	12,923,841
Research, development and engineering	3,766,160	2,653,337
Total operating expense	18,560,365	15,577,178
Operating income/(loss)	877,535	(2,208,148)
Other income/(expense):
Other (expense)/income, net	(17,143)	26,106
Investment income	549,580	0
Interest expense, net	(124,344)	(217,352)
Total other income/(expense)	408,093	(191,246)
Income/(loss) from continuing operations before income taxes	1,285,628	(2,399,394)
Income tax (expense)/benefit	(47,818)	1,148,579
Net income/(loss) from continuing operations	1,237,810	(1,250,815)
Operating income from discontinued operations, net of income tax expense of $183,921 and $876,588	1,170,634	194,692
Gain on sale, net of $1,572,244 and $912,298 of related income taxes	8,595,797	15,671,028
Net income from discontinued operations	9,766,431	15,865,720
Net income	11,004,241	14,614,905
Preferred stock dividend	257,302	146,889
Net income attributable to common stockholders	$ 10,746,939	$ 14,468,016
Net income/(loss) per share from continuing operations:
Basic (in dollars per share)	$ 0.04	$ (0.05)
Diluted (in dollars per share)	0.04	(0.05)
Net income per share from discontinued operations:
Basic (in dollars per share)	0.35	0.58
Diluted (in dollars per share)	0.30	0.58
Net income per share attributable to common stockholders:
Basic (in dollars per share)	0.39	0.52
Diluted (in dollars per share)	$ 0.33	$ 0.52
Weighted average shares:
Basic (in shares)	27,596,401	27,579,988
Diluted (in shares)	32,452,228	27,579,988
Technology development
Revenues:
Total revenues	$ 20,967,556	$ 18,576,383
Cost of revenues:
Total cost of revenues	15,400,475	13,988,378
Products and licensing
Revenues:
Total revenues	21,949,689	14,505,482
Cost of revenues:
Total cost of revenues	$ 8,078,870	$ 5,724,457

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Allocated tax expense	$ 183,921	$ 876,588
Tax effect on gain from sale of discontinued operations	$ 1,572,244	$ 912,298

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($)		Total	Preferred Stock	Common Stock	Treasury Stock	Additional Paid in Capital	Accumulated Deficit	Restatement Adjustment	Restatement AdjustmentAccumulated Deficit
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)			1,321,514
Impact of change in accounting policy, Common stock balance (in shares)				27,541,277
Impact of change in accounting policy, Treasury stock balance (in shares)					446,827
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 35,089,688	$ 1,322	$ 28,600	$ (517,987)	$ 82,451,958	$ (46,874,205)
Preferred stock beginning balance (in shares) at Dec. 31, 2016			1,321,514
Common stock beginning balance (in shares) at Dec. 31, 2016				27,541,277
Treasury stock beginning balance (in shares) at Dec. 31, 2016					446,827
Stockholder's equity beginning balance at Dec. 31, 2016		$ 35,089,688	$ 1,322	$ 28,600	$ (517,987)	82,451,958	(46,874,205)
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)		1,321,514	1,321,514
Impact of change in accounting policy, Common stock balance (in shares)		27,283,918		27,541,277
Impact of change in accounting policy, Treasury stock balance (in shares)		1,070,904			446,827
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 35,089,688	$ 1,322	$ 28,600	$ (517,987)	82,451,958	(46,874,205)
Exercise of stock options (in shares)		83,888		83,888
Exercise of stock options and warrants		$ 99,853		$ 84		99,769
Stock-based compensation (in shares)				147,333
Stock-based compensation		715,094		$ 287		714,807
Non cash compensation (in shares)				135,497
Non-cash compensation		150,000		$ 136		149,864
Stock dividends	[1]	$ 0		$ 79		146,810	(146,889)
Purchase of treasury stock (in shares)		(433,179)		(624,077)	624,077
Purchase of treasury stock		$ (1,131,759)			$ (1,131,759)
Net income		$ 14,614,905					14,614,905
Preferred stock ending balance (in shares) at Dec. 31, 2017		1,321,514	1,321,514
Common stock ending balance (in shares) at Dec. 31, 2017		27,283,918		27,283,918
Treasury stock ending balance (in shares) at Dec. 31, 2017		1,070,904			1,070,904
Stockholder's equity ending balance at Dec. 31, 2017		$ 49,537,781	$ 1,322	$ 29,186	$ (1,649,746)	83,563,208	(32,406,189)
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)		1,321,514	1,321,514
Impact of change in accounting policy, Common stock balance (in shares)		27,283,918		27,283,918
Impact of change in accounting policy, Treasury stock balance (in shares)		1,070,904			1,070,904
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 49,537,781	$ 1,322	$ 29,186	$ (1,649,746)	83,563,208	(32,406,189)
Impact of change in accounting policy, Preferred stock balance (in shares)		1,321,514	1,321,514
Impact of change in accounting policy, Common stock balance (in shares)		27,283,918		27,283,918
Impact of change in accounting policy, Treasury stock balance (in shares)		1,070,904			1,070,904
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 49,537,781	$ 1,322	$ 29,186	$ (1,649,746)	83,563,208	(32,406,189)
Exercise of stock options (in shares)		96,425
Purchase of treasury stock (in shares)		(565,629)
Net income		$ 11,004,241
Preferred stock ending balance (in shares) at Dec. 31, 2018		1,321,514	1,321,514
Common stock ending balance (in shares) at Dec. 31, 2018		27,956,401		27,956,401
Treasury stock ending balance (in shares) at Dec. 31, 2018		1,253,105			1,253,105
Stockholder's equity ending balance at Dec. 31, 2018		$ 62,354,330	$ 1,322	$ 30,120	$ (2,116,640)	85,744,750	(21,305,222)
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)			1,321,514
Impact of change in accounting policy, Common stock balance (in shares)				27,283,918
Impact of change in accounting policy, Treasury stock balance (in shares)					1,070,904
Impact of change in accounting policy, Stockholder's equity adjusted balance		49,891,809	$ 1,322	$ 29,186	$ (1,649,746)	83,563,208	(32,052,161)	$ 354,028	$ 354,028
Preferred stock beginning balance (in shares) at Jan. 01, 2018			1,321,514
Common stock beginning balance (in shares) at Jan. 01, 2018				27,283,918
Treasury stock beginning balance (in shares) at Jan. 01, 2018					1,070,904
Stockholder's equity beginning balance at Jan. 01, 2018		$ 49,891,809	$ 1,322	$ 29,186	$ (1,649,746)	83,563,208	(32,052,161)	354,028	354,028
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)		1,321,514	1,321,514
Impact of change in accounting policy, Common stock balance (in shares)		27,956,401		27,956,401
Impact of change in accounting policy, Treasury stock balance (in shares)		1,253,105			1,253,105
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 62,354,330	$ 1,322	$ 30,120	$ (2,116,640)	85,744,750	(21,305,222)	$ 354,028	$ 354,028
Exercise of stock options and warrants (in shares)				442,425
Exercise of stock options and warrants		1,097,033		$ 441		1,096,592
Stock-based compensation (in shares)				282,394
Stock-based compensation		628,139		$ 282		627,857
Non cash compensation (in shares)				129,865
Non-cash compensation		200,002		$ 131		199,871
Stock dividends	[1]	0		$ 80		257,222	(257,302)
Purchase of treasury stock (in shares)				(182,201)	182,201
Purchase of treasury stock		(466,894)			$ (466,894)
Net income		$ 11,004,241					11,004,241
Preferred stock ending balance (in shares) at Dec. 31, 2018		1,321,514	1,321,514
Common stock ending balance (in shares) at Dec. 31, 2018		27,956,401		27,956,401
Treasury stock ending balance (in shares) at Dec. 31, 2018		1,253,105			1,253,105
Stockholder's equity ending balance at Dec. 31, 2018		$ 62,354,330	$ 1,322	$ 30,120	$ (2,116,640)	85,744,750	(21,305,222)
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)		1,321,514	1,321,514
Impact of change in accounting policy, Common stock balance (in shares)		27,956,401		27,956,401
Impact of change in accounting policy, Treasury stock balance (in shares)		1,253,105			1,253,105
Impact of change in accounting policy, Stockholder's equity adjusted balance		$ 62,354,330	$ 1,322	$ 30,120	$ (2,116,640)	$ 85,744,750	$ (21,305,222)
[1]	The stock dividends payable in connection with the Series A Convertible Preferred Stock are issuable upon the request of Carilion.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows (used in)/provided by operating activities:
Net income	$ 11,004,241	$ 14,614,905
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Depreciation and amortization	1,218,559	2,526,609
Stock-based compensation	627,856	715,094
Loss on disposal of fixed assets	(1,000)	3,640
Gain on sale of discontinued operations, net of income taxes	(8,595,797)	(15,671,028)
Bad debt	6,000	99,888
Changes in operating assets and liabilities:
Accounts receivable	(6,240,377)	1,152,055
Contract assets	(761,714)	0
Inventory	(967,797)	(1,902,311)
Other assets	1,849,630	83,428
Accounts payable and accrued expenses	(461,928)	(896,534)
Contract liabilities	(986,498)	0
Deferred revenue	0	189,296
Net cash (used in)/provided by operating activities	(3,308,825)	915,042
Cash flows provided by investing activities:
Acquisition of property and equipment	(386,890)	(1,352,531)
Proceeds from sale of property and equipment	1,000	3,000
Intangible property costs	(374,766)	(495,597)
Acquisition of Micron Optics	(5,001,750)	0
Proceeds from sale of discontinued operations, net	15,799,529	28,026,528
Net cash provided by investing activities	10,037,123	26,181,400
Cash flows used in financing activities:
Payments on debt obligations	(1,833,333)	(1,833,333)
Payments on capital lease obligations	(46,653)	(52,128)
Purchase of treasury stock	(466,894)	(1,131,759)
Proceeds from the exercise of options and warrants	1,097,316	99,853
Net cash used in financing activities	(1,249,564)	(2,917,367)
Net change in cash and cash equivalents	5,478,734	24,179,075
Cash and cash equivalents—beginning of period	36,981,533	12,802,458
Cash and cash equivalents—end of period	42,460,267	36,981,533
Supplemental disclosure of cash flow information
Cash paid for interest	117,616	209,497
Cash paid for income taxes	1,846,037	377,907
Cash received for income tax refunds	17,834	0
Common stock issued pursuant to restricted stock vesting	200,202	150,000
Dividend on preferred stock	$ 257,302	$ 146,889

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	Organization and Summary of Significant Accounting Policies Luna Innovations Incorporated (“we” 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 high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing products for industries utilizing composite and other advanced materials, such as the automotive, aerospace, energy and infrastructure industries. Our distributed fiber optic sensing products help designers and manufacturers more efficiently develop new and innovative products by providing valuable information such as highly detailed stress, strain, and temperature measurements of a new design or manufacturing process. In addition, our distributed fiber optic sensing products are used to monitor the structural integrity or operational health of critical assets, including large civil structures such as bridges. Our communications test products accelerate the development of advanced fiber optic components and networks by providing fast and highly accurate characterization of components and networks. We also provide applied research services, typically under research programs funded by the U.S. government, in areas of advanced materials, sensing, and healthcare applications. Our business model is designed to accelerate the process of bringing new and innovative products to market. We use our in-house technical expertise across a range of technologies to perform applied research services for companies and for government funded projects. We continue to invest in product development and commercialization, which we anticipate will lead to increased product sales growth. Consolidation Policy Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include our accounts and the accounts of our wholly owned subsidiaries. We eliminate from our financial results all intercompany transactions. Reclassifications Certain amounts in the prior period have been reclassified to conform to current presentation. As a result of the adoption of Accounting Standards Codification ("ASC") 2014-09, Revenue from Contracts with Customers (Topic 606), we presented balances entitled contract assets and contract liabilities within the consolidated balance sheet as well as the impact of the changes in these balances within the consolidated statement of cash flows. We reclassified comparable balances within the December 31, 2017 consolidated balance sheet as well as the impact of changes in those balances within the consolidated statement of cash flows in order to enhance comparability. These reclassifications had no effect on our reported financial condition, results of operations, or cash flows. Any other reclassifications were immaterial to the consolidated interim financial statements taken as a whole. Use of Estimates The preparation of our consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions. Technology Development Revenues We perform research and development for U.S. Federal government agencies, educational institutions and commercial organizations. We account for a research contract when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred. Our contracts with agencies of the U.S. government are subject to periodic funding by the respective contracting agency. Funding for a contract may be provided in full at inception of the contract or ratably throughout the contract as the services are provided. In evaluating the probability of funding for purposes of assessing collectability of the contract price, we consider our previous experience with our customers, communication with our customers regarding funding status and our knowledge of available funding for the contract or program. If funding is not assessed as probable, revenue recognition is deferred until realization is reasonably assured. Under the typical payment terms of our U.S. government contracts, the customer pays us either performance-based payments ("PBPs") or progress payments. PBPs, which are typically used in the firm fixed price contracts, are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments, which are typically used in our cost type contracts, are interim payments based on costs incurred as the work progresses. For our U.S. government cost-type contracts, the customer generally pays us during the performance period for 80% to 90% of our actual costs incurred. Because the customer retains a small portion of the contract price until completion of the contract and audit of allowable costs, cost type contracts generally result in revenue recognized in excess of billings which we present as contract assets on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these advance payments and PBPs paid in advance which are in excess of the revenue recognized and present these amounts as contract liabilities on the balance sheet. To determine the proper revenue recognition method for research and development contracts, we evaluate whether two or more contracts should be combined and accounted for as one single modified contract and whether the combined or single contract should be accounted for as more than one performance obligation. For instances where a contract has options that were bid with the initial contract and awarded at a later date, we combine the options with the original contract when options are awarded. For most of our contracts, the customer contracts for research with multiple milestones that are interdependent. Consequently, the entire contract is accounted for as one performance obligation. The effect of the combined or modified contract on the transaction price and measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract revenue recognition is measured over time as we perform because of continuous transfer of control to the customer. For U.S. government contracts which are typically subject to the Federal Acquisition Regulation, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for cost incurred plus a reasonable profit and take control of any work in process. From time to time, as part of normal management processes, facts may change, causing revisions to estimated total costs or revenues expected. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. We generally use the input method, more specifically the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The underlying bases for estimating our contract research revenues are measurable expenses, such as labor, subcontractor costs and materials, and data that are updated on a regular basis for purposes of preparing our cost estimates. Our research contracts generally have a period of performance of six months to three years , and our estimates of contract costs have historically been consistent with actual results. Revisions in these estimates between accounting periods to reflect changing facts and circumstances have not had a material impact on our operating results, and we do not expect future changes in these estimates to be material. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Under cost reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fixed fee representing the profit negotiated between us and the contracting agency. Revenue from cost reimbursable contracts is recognized as costs are incurred plus an estimate of applicable fees earned. We consider fixed fees under cost reimbursable contracts to be earned in proportion to the allowable costs incurred in performance of the contract. Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs. Fixed price contracts may include either a product delivery or specific service performance throughout a period. For fixed price contracts that are based on the proportional performance method and involve a specified number of deliverables, we recognize revenue based on the proportion of the cost of the deliverables compared to the cost of all deliverables included in the contract as this method more accurately measures performance under these arrangements. For fixed price contracts that provide for the development and delivery of a specific prototype or product, revenue is recognized based upon the percentage of completion method. Whether certain costs under government contracts are allowable is subject to audit by the government. Certain indirect costs are charged to contracts using provisional or estimated indirect rates, which are subject to later revision based on government audits of those costs. Management is of the opinion that costs subsequently disallowed, if any, would not likely have a significant impact on revenues recognized for those contracts. Product Sales Revenues Revenues from product sales are generated by the sale of commercial products and services under various sales programs to the end user and through distribution channels. We sell fiber optic sensing systems to end users for use in numerous fiber optic based measurement applications. Revenues are recorded net of applicable sales taxes collected from customers and payable to state or local governmental entities. To determine the proper revenue recognition method for Products and Licensing contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. We recognize revenue when the performance obligation has been satisfied by transferring the control of the product or service to the customer. For tangible products that contain software that is essential to the tangible product’s functionality, we consider the product and software to be a single performance obligation and recognize revenue accordingly. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on their relative stand-alone selling prices. In such circumstances, we use the observable price of goods or services which are sold separately in similar circumstances to similar customers. If these prices are not observable, then we will estimate the stand-alone selling price using information that is reasonably available. For the majority of our standard products and services, price list and discount structures related to customer type are available. For products and services that do not have price list and discount structures, we may use one or more of the following: (i) adjusted market assessment approach, (ii) expected cost plus a margin approach, and (iii) residual approach. The adjusted market approach requires us to evaluate the market in which we sell goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services. The expected cost plus margin approach requires us to forecast our expected costs of satisfying the performance obligation and then add a reasonable margin for that good or service. The residual approach decreases the total transaction price by the sum of the observable standalone selling prices if either the company sells the same good or services to different customers for a broad range of amounts or the company has not established a price for the good or service and that good or service has not been sold on a standalone basis. Shipping and handling activities primarily occur after a customer obtains control and are considered fulfillment cost rather than separate performance obligations. Similarly, sales and similar taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. For standard products, we recognize revenue at a point in time when control passes to the customer. Absent substantial product acceptance clauses, this is based on the shipping terms. For custom products that require engineering and development based on customer requirements, we will recognize revenue over time using the output method for any items shipped and any finished goods or work in process that is produced for balances of open sales orders. For any finished goods or work in process that has been produced for the balance of open sales orders we recognize revenue by applying the average selling price for such open order to the lesser of the on hand balance in finished goods or open sales order quantity which we present as a contract asset on the balance sheet. Cost of sales is recognized based on the standard cost of the finished goods and work in process associated with this revenue and inventory balances are reduced accordingly. For extended warranties and product rentals, revenue is recognized over time using the output method based on the time elapsed for the warranty or service period. In the case of warranties, we record a contract liability for amounts billed but that are not recognized until subsequent period. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expense. For testing services where we are performing testing on an asset the customer controls, revenue is recognized over time by the output method using the performance to date. For training where the customer is receiving the benefit of training as it is occurring and for repairs to a customer controlled asset, revenue is recognized over time by the output method using the performance to date. For royalty revenue, we apply the practical expedient “royalty exception” recognizing revenue based on the royalty agreement which specifies an amount based on sales or minimum amount, whichever is greater. In some product rental contracts, a customer may be offered a discount on the purchase of an item that would provide for a material right. When a material right has been provided to a customer, a separate performance obligation is established and a portion of the rental revenue will be deferred until the future product is purchased or the option expires. This deferred revenue is recognized as a contract liability on the balance sheet. In certain circumstances we may offer a "right of return" to a distributor of our products, in which case a contract liability is calculated based on the terms of the agreement and recorded as a reduction to revenue. In addition, a contract asset for the rights to recover products from customers and a reduction of cost of sales is also calculated and recorded. Allowance for Uncollectible Receivables Accounts receivable are recorded at their face amount, less an allowance for doubtful accounts. We review the status of our uncollected receivables on a regular basis. In determining the need for an allowance for uncollectible receivables, we consider our customers’ financial stability, past payment history and other factors that bear on the ultimate collection of such amounts. The allowance was $0.3 million at each of December 31, 2018 and 2017 . Cash Equivalents We consider all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. To date, we have not incurred losses related to cash and cash equivalents. Cash equivalents at December 31, 2018 and 2017 included $38.3 million and $25.2 million , respectively, invested in U.S. Treasury obligations through a sweep account with our bank. The full value of amounts invested through the sweep account are convertible to cash on a daily basis. Our cash transactions are processed through reputable commercial banks. We regularly maintain cash balances with financial institutions which exceed Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2018 and 2017 , we had approximately $4.0 million and $11.5 million , respectively, in excess of FDIC insured limits. We have outstanding term loans that require us to comply with certain financial covenants, including maintaining a minimum cash balance of at least $4.0 million . Fair Value Measurements Our financial assets and liabilities are measured at fair value, which is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. Valuation techniques are based on observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair value hierarchy: • 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 significant value drivers are observable. • Level 3—Valuations derived from valuation techniques in which 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. We consider the terms of the Silicon Valley Bank ("SVB") debt facility including its interest rate of prime plus 2% , to be at market based upon similar instruments that would be available to us. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. We record depreciation using the straight-line method over the following estimated useful lives: Equipment 3 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements Lesser of lease term or life of improvements Intangible Assets Intangible assets consist of patents related to certain intellectual property that we have developed or acquired and identifiable intangible assets recognized in connection with our merger with Advanced Photonix, Inc. ("API") and Micron Optics, Inc. ("MOI"). We amortize our identified intangible assets over their estimated useful lives ranging between one and eleven years , and analyze the reasonableness of the remaining useful life whenever events or circumstances indicate that the carrying amount may not be recoverable to determine whether their carrying value has been impaired. Goodwill Goodwill is reviewed for impairment at least annually, or more frequently if events or circumstances indicate that goodwill might be impaired. We have established October 1 as our specified annual date for impairment testing. Research, Development and Engineering Research, development and engineering expenses not related to contract performance are expensed as incurred. We expensed $3.8 million and $2.7 million of non-contract related research, development and engineering expenses for the year ended December 31, 2018 and 2017 , respectively. Valuation of Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less cost to sell. 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 net realizable value. Net Income/(Loss) per Share Basic per share data is computed by dividing net income/(loss) attributable to common stockholders by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income/(loss) attributable to common stockholders 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 common shares 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 4.9 million common stock equivalents (which include outstanding warrants, preferred stock, accrued stock dividends, and stock options) are included for the diluted per share data for the year ended December 31, 2018 . The effect of 4.3 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are not included for the year ended December 31, 2017 , as they are anti-dilutive to earnings per share due to us having a net loss from continuing operations. Stock-Based Compensation We have two stock-based compensation plans, which are described further in Note 10. We recognize compensation expense based upon the fair value of the underlying equity award as of the date of grant. We have elected to use the Black-Scholes option pricing model to value any stock options granted. Restricted stock and restricted stock units awarded are valued at the closing price of our common stock on the date of the award. We recognize stock-based compensation for such awards on a straight-line method over the requisite service period of the awards taking into account the effects of the employees’ expected exercise. We reduce stock-based compensation expense for the value of any forfeitures of vested awards as such forfeitures occur. We recognize expense for equity instruments issued to non-employees based upon the fair value of the equity instruments issued. Advertising We expense the cost of advertising as incurred. Advertising expenses were $0.1 million for each of the years ended December 31, 2018 and 2017 . Income Taxes We account for income taxes using the liability method. Deferred tax assets or liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when the differences reverse. A valuation allowance against net deferred tax assets is provided unless we conclude it is more likely than not that the deferred tax assets will be realized. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We evaluate our ability to benefit from all deferred tax assets and establish valuation allowances for amounts we believe are not more-likely-than-not to be realizable. For uncertain tax positions, we use a more-likely-than-not threshold, 51% or greater, based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. Penalties, if probable and reasonably estimable, and interest expense related to uncertain tax positions are recognized as a component of the tax provision. We account for income taxes using the liability method. Deferred tax assets or liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when the differences reverse. A valuation allowance against net deferred tax assets is provided unless we conclude it is more likely than not that the deferred tax assets will be realized. Recent Accounting Pronouncements Effective January 1, 2018, we adopted Revenue from Contracts with Customers (Topic 606), using the modified retrospective transition method. Under the modified retrospective approach, we apply the standards to new contracts and those that were not completed as of January 1, 2018. For those contracts not completed as of January 1, 2018, this method resulted in a cumulative adjustment to decrease the accumulated deficit in the net amount of $0.4 million . Prior periods will not be retrospectively adjusted, but we will maintain dual reporting for the year of initial application in order to maintain comparability of the periods presented. The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of Topic 606 was as follows: Balance at Adjustment for Adjusted balance at December 31, 2017 Topic 606 January 1, 2018 Assets: Current assets held for sale $ 4,336,105 $ 379,891 $ 4,715,996 Liabilities: Contract liabilities $ 3,318,379 $ 2,250 $ 3,320,629 Current liabilities held for sale $ 862,205 $ 23,613 $ 885,818 Stockholders' equity: Accumulated deficit $ (32,406,189 ) $ 354,028 $ (32,052,161 ) Contract assets were formerly reported as unbilled accounts receivable. Contract liabilities were formerly reported as accrued liabilities or deferred revenue. Inventory was also impacted by the adoption of the new guidance. The titles have been changed in the table below to be consistent with accounts currently used under the new standard. December 31, 2017 As Reported As Adopted Accounts receivables, net $ 9,857,009 $ 5,929,042 Contract assets — 1,778,142 Current assets held for sale — 1,940,126 Long-term contract assets — 209,699 Accrued liabilities 8,959,935 6,547,230 Contract liabilities — 3,318,379 Current liabilities held for sale — 120,665 Deferred revenue 1,026,339 — Under the new standard, contracts in our Technology Development segment, which primarily provide research services, are not materially impacted upon the adoption of Topic 606 as revenue will continue to be recognized over time using an input model. Contracts in our Products and Licensing segment generally provide for the following revenue sources: standard product sales, custom product development and sales, product rental, extended warranties, training/service, and certain royalties. Revenues for this segment are recognized using either the “point in time” or “over time” methods of Topic 606, depending upon the revenue source. The major change in revenue recognition for the Products and Licensing segment related to custom optoelectronic products which changed from “point in time” to “over time” upon the adoption of Topic 606. This change results in the acceleration of revenue when compared to existing standards with the cumulative adjustment relating to contracts that are not complete as of December 31, 2017 recognized as an adjustment to opening accumulated deficit on January 1, 2018. The revenue received from our custom optoelectronic products segment is included as part of our discontinued operations (Note 17) and shown above in the current assets and liabilities held for sale as of December 31, 2017. Our revenue for our standard products will continue to be recognized using the "point in time" model of Topic 606, and the timing of such revenue recognition is not expected to differ materially from our historical revenue recognition. Other immaterial adjustments related to the Products and Licensing segment that are sometimes offered to customers include discounts on future purchases related to rental agreements, customer rights of return, and volume discounts. Technology Development Revenues We perform research and development for U.S. Federal government agencies, educational institutions and commercial organizations. We account for a research contract when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred. Our contracts with agencies of the U.S. government are subject to periodic funding by the respective contracting agency. Funding for a contract may be provided in full at inception of the contract or ratably throughout the contract as the services are provided. In evaluating the probability of funding for purposes of assessing collectability of the contract price, we consider our previous experience with our customers, communication with our customers regarding funding status and our knowledge of available funding for the contract or program. If funding is not assessed as probable, revenue recognition is deferred until realization is reasonably assured. Under the typical payment terms of our U.S. government contracts, the customer pays us either performance-based payments ("PBPs") or progress payments. PBPs, which are typically used in the firm fixed price contracts, are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments, which are typically used in our cost type contracts, are interim payments based on costs incurred as the work progresses. For our U.S. government cost-type contracts, the customer generally pays us during the performance period for 80% to 90% of our actual costs incurred. Because the customer retains a small portion of the contract price until completion of the contract and audit of allowable costs, cost type contracts generally result in revenue recognized in excess of billings which we present as contract assets on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these advance payments and PBPs paid in advance which are in excess of the revenue recognized and present these amounts as contract liabilities on the balance sheet. To determine the proper revenue recognition method for research and development contracts, we evaluate whether two or

Inventory

Inventory	12 Months Ended
	Dec. 31, 2018
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 net realizable value. Components of inventory are as follows: December 31, 2018 2017 Finished goods $ 1,339,832 $ 762,394 Work-in-process 643,420 288,165 Raw materials 4,890,490 3,584,222 $ 6,873,742 $ 4,634,781

Contract Balances

Contract Balances	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract Balances	Contract Balances Our contract assets consist of unbilled amounts for technology development contracts, custom product contracts, royalty revenue receivable and the carrying amounts of right of returned inventory. Long-term contract assets include the fee withholding on cost reimbursable contracts that will not be billed within a year. Contract liabilities include excess billings, subcontractor accruals, warranty expense, extended warranty revenue, right of return refund, and customer deposits. The following table shows the significant changes in contract balances for the year ended December 31, 2018 : Contract Assets Contract Liabilities Opening Balance as of January 1, 2018 $ 1,987,841 $ 3,320,629 Revenue recognized that was included in the contract liabilities balance at the beginning of the period — (878,402 ) Transferred to payables from contract liabilities recognized at the beginning of the period — (2,078,640 ) Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period — 2,122,524 Transferred to receivables from contract assets recognized at the beginning of the period (1,679,363 ) — Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 2,450,837 — Balance as of December 31, 2018 $ 2,759,315 $ 2,486,111

Debt

Debt	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Debt	Debt Silicon Valley Bank Facility We currently have a Loan and Security Agreement with SVB (the "Credit Facility") under which, as amended on May 8, 2015, we have a term loan with an original borrowing amount of $6.0 million (the “Original Term Loan”). The Original Term Loan is repayable in 48 monthly installments of $125,000 , plus accrued interest payable monthly in arrears, and unless earlier terminated, is scheduled to mature in May 2019. The Original Term Loan carries a floating annual interest rate equal to SVB’s prime rate then in effect plus 2% . We may prepay amounts due under the Original Term Loan at any time, subject to an early termination fee of up to 2% of the amount of prepayment. In September 2015, we entered into the Waiver and Seventh Loan Modification Agreement, which provided an additional $1.0 million of available financing for purchases of equipment through December 31, 2015, which we fully borrowed in December 2015 (the "Second Term Loan" and, together with the Original Term Loan, the "Term Loans"). The Second Term Loan was repaid in December 2018. The Credit Facility requires us to maintain a minimum cash balance of $4.0 million and 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 of the Term Loans. 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 December 31, 2018 , 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 December 31, 2018 there were no events of default on the Credit Facility. The aggregate balance under the Term Loans at December 31, 2018 and December 31, 2017 was $0.6 million and $2.5 million , respectively. The remaining term loan, with a balance of $ 0.6 million as of December 31, 2018 , matures on May 1, 2019. The effective rate of our Term Loan at December 31, 2018 was 7% . The following table presents a summary of debt outstanding: December 31, 2018 2017 Silicon Valley Bank Term Loans $ 625,000 $ 2,458,333 Less: unamortized debt issuance costs 5,685 21,993 Less: current portion 619,315 1,833,333 Total long-term debt obligations $ — $ 603,007 Debt issuance costs associated with the issuance of the SVB Term Loans totaled $55 thousand . Amortization of debt issuance costs is computed using the effective interest method and is included in interest expense. Amortization of the debt issuance costs totaled $16 thousand for the year ended December 31, 2018 . Maturities on outstanding debt are as follows: Year Amount 2019 $ 625,000 Total $ 625,000 Interest expense for the years ended December 31, 2018 and 2017 consisted of the following: Years ended December 31, 2018 2017 Interest expense on Term Loans $ 108,062 $ 201,696 Amortization of debt issuance costs 16,308 16,308 Other interest income (26 ) (652 ) Total interest expense $ 124,344 $ 217,352

Accounts Receivable, Net

Accounts Receivable, Net	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Accounts Receivable-Trade	Accounts Receivable, Net Accounts receivable, net consist of the following: December 31, 2018 2017 Billed $ 13,289,790 $ 6,189,625 Other 31,361 20,000 13,321,151 6,209,625 Less: allowance for doubtful accounts (284,083 ) (280,583 ) $ 13,037,068 $ 5,929,042

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net, consists of the following: December 31, 2018 2017 Building $ 69,556 $ 69,556 Equipment 9,341,007 8,213,626 Furniture and fixtures 640,890 565,885 Software 1,122,231 1,122,231 Leasehold improvements 4,950,510 4,840,510 16,124,194 14,811,808 Less—accumulated depreciation (12,496,308 ) (11,957,167 ) $ 3,627,886 $ 2,854,641 Depreciation for the years ended December 31, 2018 and 2017 was approximately $0.5 million and $0.7 million , respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net consist of the following: December 31, Estimated Life 2018 2017 Patent costs 1 - 18 years $ 4,991,460 $ 4,658,198 Developed technology 5 years 2,600,000 1,400,000 In-process research and development N/A 200,000 — Customer base 7 years 100,000 — Trade names 3 years 150,000 — 8,041,460 6,058,198 Accumulated amortization (4,739,190 ) (4,330,808 ) $ 3,302,270 $ 1,727,390 Amortization for the years ended December 31, 2018 and 2017 was approximately $0.4 million and $0.5 million , respectively. Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2018 , for each of the next five years and beyond is as follows: Year Ending December 31, 2019 $ 591,120 2020 558,156 2021 535,288 2022 480,219 2023 279,631 2023 and beyond 857,856 $ 3,302,270

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following: December 31, 2018 2017 Accrued compensation $ 4,467,587 $ 5,274,005 Accrued professional fees 198,062 117,445 Accrued income tax 236,636 403,547 Deferred rent 146,542 144,740 Royalties 302,428 290,235 Accrued liabilities-other 404,752 317,258 Working capital payable 542,983 — Liability to related party 298,468 — Total accrued liabilities $ 6,597,458 $ 6,547,230

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense/(benefit) from continuing operations consisted of the following for the periods indicated: Years ended December 31, 2018 2017 Current: Federal $ (44,727 ) $ (1,154,105 ) State 92,545 5,526 Deferred federal — — Deferred state — — Income tax expense/(benefit) $ 47,818 $ (1,148,579 ) Deferred tax assets consist of the following components: December 31, 2018 December 31, 2017 Long-Term Long-Term Bad debt and inventory reserve $ 332,721 $ 226,358 Inventory adjustment (21,785 ) 405,242 UNICAP 2,804 32,579 Deferred revenue 115,676 84,669 Deferred rent 288,017 340,199 Depreciation and amortization (838,540 ) (1,238,458 ) Charitable contributions — 3,385 Net operating loss carryforwards- Luna 349,421 349,421 Net operating loss carryforwards- API 1,265,538 1,436,568 Net operating loss carryforwards - state 179,149 534,194 Net operating loss carryforwards- Canada 10,503 10,503 Research and development credits — 235,613 California manufacturing credit — 15,554 Accrued liabilities 394,118 504,472 Deferred compensation 216,944 223,607 Stock-based compensation 803,757 1,275,372 Restricted stock 60,681 — State bonus 44,861 — AMT credit — 581,467 Transaction costs 63,668 — Total 3,267,533 5,020,745 Valuation allowance (3,267,533 ) (5,020,745 ) Net deferred tax asset $ — $ — The expense/(benefit) from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our loss from continuing operations before income taxes as follows for the periods indicated: Years ended December 31, 2018 2017 Income tax expense at federal statutory rate 21.00 % 34.00 % State taxes, net of federal tax effects — % (10.84 )% Change in tax rate from Tax Cuts and Jobs Act — % (79.17 )% Change in valuation allowance (27.65 )% 113.86 % Incentive stock options (1.05 )% (9.65 )% Provision to return adjustments 21.16 % 3.87 % Meals and entertainment 0.97 % (0.65 )% Capitalized merger costs — % — % AMT Carryover (9.83 )% — % Other permanent differences (0.88 )% (3.55 )% Income tax expense/(benefit) 3.72 % 47.87 % The realization of our deferred income tax assets is dependent upon sufficient taxable income in future periods. In assessing whether deferred tax assets may be realized, we consider whether it is more likely than not that some portion, or all, of the deferred tax asset will be realized. We consider scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies that we can implement in making our assessment. We have no U.S. federal income tax net operating loss carryforwards at December 31, 2018 for Luna and net operating loss carryforwards of approximately $6.0 million for API expiring at varying dates through 2025 . In 2015, we performed a formal section 382 study and determined that we do not have a limitation on our net operating loss available to offset future income for the Luna net operating losses. As a result of the acquisition of API, the API net operating loss carryover and research and development credits will be subject to the Section 382 limitation. A formal Section 382 study was prepared in 2017 , and it was determined that there was no ownership changes in 2017 resulting in a limitation on NOLs, but a portion of the net operating losses will expire unutilized. As there is a full valuation allowance against all of the API deferred tax assets, there will not be a statement of operations impact to any expiration of the net operating losses or research and development credits. The U.S. federal statute of limitations remains open for the year 2015 and onward . We currently have no federal income tax returns under examination. U.S. state jurisdictions have statutes of limitation generally ranging from three to seven years . We currently have no state income or franchise tax returns under examination. We currently do not file tax returns in any foreign tax jurisdiction other than Canada. We currently have no positions for which we expect that the amount of unrecognized tax benefit will increase or decrease significantly within twelve months of the reporting date or for which we believe there is significant risk of disallowance upon audit. We have no tax interest or penalties reported in either our statement of operations or statement of financial position for any year reported herein. Management believes it is not more likely than not that the deferred tax assets at December 31, 2018 or December 31, 2017 will not be realized, and as a result a valuation allowance was established against all such deferred tax assets. Effective January 1, 2018, we adopted ASC Topic 606, Revenue from Contracts with Customers , which changes the timing of contract revenue recognition from recognizing at customer delivery to recognizing over a period of time. The adoption of ASC Topic 606 did not have a significant impact on our consolidated financial statements. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation makes significant changes in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21% . As a result of the enacted law, we were required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation resulted in a $1.9 million reduction in the deferred tax asset and a corresponding reduction in the valuation allowance. In 2018, we realized a benefit of $0.7 million in recovery of the alternative minimum tax credit from prior periods. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on our consolidated financial statements.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Series A Convertible Preferred Stock In January 2010, we entered into a transaction with Carilion, in which Carilion agreed to exchange all of its Senior Convertible Promissory Notes with an original principal amount of $5.0 million plus all accrued but unpaid interest, totaling $1.2 million , for 1,321,514 shares of our newly designated Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock is non-voting, carries a dividend of 6% payable in shares of common stock and maintains a liquidation preference up to $6.2 million . As of December 31, 2018 , 710,985 shares of common stock were issuable to Carilion as dividends and have been recorded in the statement of stockholders’ equity. These dividends are issuable on demand. Each share of Series A Convertible Preferred Stock may be converted into one share of our common stock at the option of the holder. We recorded the fair value of the Series A Convertible Preferred Stock, determined based upon the conversion value immediately prior to the exchange, the fair value of the new warrant issued to Carilion, determined using the Black-Scholes valuation model, and the incremental fair value of the prior warrant due to the re-pricing and extension of maturity to stockholders’ equity. Equity Incentive Plans In April 2016, we adopted our 2016 Equity Incentive Plan (the "2016 Plan") as a successor to the 2006 Plan. Under the 2016 Plan, our Board of Directors is authorized to grant both incentive and non-statutory stock options to purchase common stock and restricted stock awards to our employees, directors, and consultants. The 2016 Plan provides for the issuance of 3,500,000 shares plus any amounts forfeited from grants under the 2006 Plan after the expiration date of the 2006 Plan. Options generally have a life of 10 years and exercise price equal to or greater than the fair market value of the Common Stock as determined by the Board of Directors. Vesting for employees typically occurs over a four -year period. The following table sets forth the activity of the options to purchase common stock under the 2006 Plan and the 2016 Plan. The prices represent the closing price of our Common Stock on the Nasdaq Capital Market on the respective dates. Options Outstanding Options Exercisable Number of Price per Weighted Aggregate Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Balance at January 1, 2017 2,857,114 $0.61 - 6.83 $ 1.89 $ 107,063 2,367,630 $ 1.93 $ 101,071 Forfeited (178,665 ) $1.27 - 6.83 $ 2.24 Exercised (83,888 ) $0.82 - 1.40 $ 1.19 Granted 120,000 $1.51 - 2.40 $ 1.82 Balance at December 31, 2017 2,714,561 $0.61 - 6.55 $ 1.88 $ 2,098,195 2,590,030 $ 1.89 $ 2,013,034 Forfeited (675,607 ) $1.15 - 6.55 $ 1.90 Exercised (96,425 ) $0.65 - 2.46 $ 2.07 Granted 1,166,339 $2.67 - 3.53 $ 3.09 Balance at December 31, 2018 3,108,868 $0.61 - 6.55 $ 2.26 $ 3,669,794 1,986,740 $ 1.81 $ 3,314,494 (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 fair value of each option granted is estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions: Years ended December 31, 2018 2017 Risk-free interest rate range 3.0% 2.05% Expected life of option-years 7 6.5 Expected stock price volatility 67% 69% Expected dividend yield —% —% 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. Expected volatility is based upon the average historical volatility of our common stock over the period commensurate with the expected term of the related instrument. The expected life and estimated post-employment termination behavior is based upon historical experience of homogeneous groups, executives and non-executes, within our company. We do not currently pay dividends on our common stock nor do we expect to in the foreseeable future. Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Life in Years Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price of Options Exercisable Year ended December 31, 2017 $0.61 - 6.55 2,714,561 4.23 $1.88 2,590,030 $1.89 Year ended December 31, 2018 $0.61 - 6.55 3,108,868 5.72 $2.26 1,986,740 $1.81 Total Intrinsic Value of Options Exercised Total Fair Value of Options Vested Year ended December 31, 2017 $ 62,549 $ 3,962,746 Year ended December 31, 2018 $ 112,213 $ 2,980,110 For the years ended December 31, 2018 and 2017 , the weighted average grant date fair value of options granted was $2.07 and $1.18 per share, respectively. We estimate the fair value of options at the grant date using the Black-Scholes model. For all stock options granted through December 31, 2018 , the weighted average remaining service period is 3.6 years . Unamortized stock option expense at December 31, 2018 that will be amortized over the weighted-average remaining service period of 3.6 years totaled $2.2 million . Restricted Stock and Restricted Stock Units In 2018 and 2017 , we issued 280,000 and 349,000 shares of restricted stock, respectively, to certain employees. Shares issued to employees vest in three equal annual installments on the anniversary dates of their grant. In 2018 and 2017 , 182,500 and 530,542 shares of restricted stock vested, respectively. In addition, in 2018 and 2017 , we issued 16,286 and 129,865 , respectively, restricted stock units to members of our Board of Directors in respect of the annual equity compensation under our non-employee director compensation policy. Restricted stock units issued to our Board of Directors vest at the earlier of the one year anniversary of their grant or the next annual stockholders' meeting. In 2018 and 2017 , 129,865 and 86,956 restricted stock units, respectively, vested. The following table summarizes our aggregate restricted stock awards and restricted stock unit activity in 2018 and 2017 : Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Value of Unvested Shares Balance at January 1, 2017 829,998 $1.19 $ 988,763 Granted 478,865 $1.63 $ 780,252 Vested (617,498 ) $1.23 $ (758,653 ) Forfeitures (201,667 ) $1.35 $ (272,017 ) Balance at December 31, 2017 489,698 $1.51 $ 738,345 Granted 296,287 $3.07 $ 909,600 Vested (312,365 ) $1.45 $ (454,339 ) Forfeitures (15,000 ) $1.41 $ (21,150 ) Balance at December 31, 2018 458,620 $2.56 $ 1,172,456 We recognized $0.6 million and $0.7 million in stock-based compensation expense, which is recorded in selling, general and administrative expenses on the consolidated statement of operations for the years ended December 31, 2018 and 2017 , respectively, and we will recognize $0.9 million over the remaining requisite service period. Unamortized restricted stock and restricted stock units expense at December 31, 2018 that will be amortized over the weighted-average remaining service period of 2 years totaled $1.0 million . Non-employee Director Deferred Compensation Plan We maintain a non-employee director deferred compensation plan (the “Deferred Compensation Plan”) that permits our non-employee directors to defer receipt of certain of the compensation that they receive for serving on our board and board committees. During the years ended December 31, 2018 and 2017 , the Deferred Compensation Plan permitted the participants to elect to defer cash fees to which they were entitled for board and committee service. For 2018 , the Deferred Compensation Plan also permitted participants to defer the annual equity compensation for board service (which would otherwise be issued in the form of restricted stock units) under our non-employee director compensation policy. For participating directors, we credit their accounts under the Deferred Compensation Plan with a number of stock units based on the trading price of our common stock as of the date of the deferral. These stock units are vested immediately, in the case of stock units in lieu of cash fees, and upon the earlier of the one year anniversary date of the grant or next annual meeting of stockholders, in the case of annual equity compensation, although the participating directors do not receive the shares represented by such units until a future qualifying event. A summary of stock unit activity under the Deferred Compensation Plan for 2018 and 2017 is as follows. Number of Stock Units Weighted Average Grant Date Fair Value per Share Intrinsic Value Outstanding January 1, 2017 393,012 $1.37 Granted 73,690 $1.54 Vested — $1.15 Converted — $0.00 December 31, 2017 466,702 $1.40 $ 1,134,086 Granted 40,588 $2.99 Vested — $1.15 Converted — $0.00 December 31, 2018 507,290 $1.40 $1,699,422 Stock Repurchase Program In May 2016, our board of directors authorized us to repurchase up to $2.0 million of our common stock through May 31, 2017. As of May 31, 2017, we had repurchased a total of 205,500 shares for an aggregate purchase price of $0.2 million under this stock repurchase program, after which this stock repurchase program expired. In September 2017, our board of directors authorized a new stock repurchase program and providing for the repurchase of up to $2.0 million of our common stock through September 19, 2018. Our stock repurchase program did 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 December 31, 2018 and 2017 , we had repurchased a total of 565,629 and 433,179 shares, respectively, for an aggregate purchase price of $1.1 million under this stock repurchase program. We currently maintain all repurchased shares under these stock repurchase programs as treasury stock.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Obligation under Operating Leases We lease facilities in Virginia, Michigan, and Georgia under operating leases that as of December 31, 2018 were scheduled to expire between March 2020 and December 2024. Certain of the leases are subject to fixed escalations and provide for possible termination prior to their expiration dates. We recognize rent expense on such leases on a straight-line basis over the lease term. The difference between the straight line method and cash paid is reflected in changes to the deferred rent balance in our consolidated balance sheets. Deferred rent primarily resulted from recognition of the value of certain leasehold improvements associated with our Blacksburg, Virginia facility at the inception of the lease. Rent expense under these leases recorded in selling, general and administrative expense on our statements of operations totaled approximately $1.0 million and $1.1 million , respectively, for the years ended December 31, 2018 and 2017 . Minimum future payments, as of December 31, 2018 , under the aforementioned operating leases for each of the next five years and thereafter are: 2019 1,216,124 2020 1,117,684 2021 640,800 2022 544,704 2023 544,704 Thereafter 544,704 $ 4,608,720 Purchase Commitment We executed a non-cancelable purchase order totaling $0.5 million in the fourth quarter of 2017 , a non-cancelable purchase order totaling $1.1 million in the first quarter of 2018 , and a non-cancelable purchase order totaling $0.7 million in the second quarter of 2018 for multiple shipments of tunable lasers to be delivered over an 18 -month period. At December 31, 2018 , approximately $0.8 million of these commitments remained and is expected to be delivered by July 30, 2019 . Royalty Agreement We have licensed certain third-party technologies from vendors for which we owe minimum royalties aggregating $0.4 million payable over the remaining patent terms of the underlying technology.

Employee Profit Sharing Plan

Employee Profit Sharing Plan	12 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Employee Profit Sharing Plan	Employee Profit Sharing Plan We maintain a salary reduction/profit-sharing plan under provisions of Section 401(k) of the Internal Revenue Code. The plan is offered to all of our permanent employees. We contribute 25% of the salary deferral elected by each employee up to a maximum deferral of 10% of annual salary. We contributed approximately $0.3 million to the plan for each of the years ended December 31, 2018 and 2017 .

Litigation and Other Contingenc

Litigation and Other Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Litigation and Other Contingencies	Litigation and Other Contingencies From time to time, we may become involved in litigation in relation to claims arising out of our operations in the normal course of business. While management currently believes it is not reasonably possible the amount of ultimate liability, if any, with respect to these actions will have a material adverse effect on our financial position, results of operations or liquidity, the ultimate outcome of any litigation is uncertain. In December 2018, we received a notice of claim (the "Claim") from Macom Technology Solutions, Inc. ("Macom"), who acquired our HSOR business in August 2017 pursuant to an asset purchase agreement. Under the asset purchase agreement, we agreed to indemnify Macom for certain matters, including, among other things, the collection of accounts receivable from certain major customers, and placed $4.0 million of the purchase price into an escrow account for the potential settlement of any valid indemnity claims. The Claim received from Macom totaled $2.1 million under various indemnity provisions. We have disputed Macom's assertion of right to payment for the matters described in the Claim. It is uncertain what amount, if any, will be owed in settlement of the Claim. As of December 31, 2018, $1.5 million of the escrow balance had been received with the remaining $2.5 million in the escrow account pending resolution of the dispute. On July 31, 2018, we sold the assets associated with our optoelectronic components and sub-assemblies ("Opto") business to an unaffiliated third party. The asset purchase agreement provides for additional consideration of up to $1.0 million contingent upon the achievement of a specified revenue level by the sold business during the 18 months following the sale. There have been no amounts recorded in reference to the above matter in the financial statements as of December 31, 2018 . It is uncertain what amount, if any, will be received with respect to this potential adjustment. We have made, and will continue to make, efforts to comply with current and future environmental laws. We anticipate that we could incur additional capital and operating costs in the future to comply with existing environmental laws and new requirements arising from new or amended statutes and regulations. In addition, because the applicable regulatory agencies have not yet promulgated final standards for some existing environmental programs, we cannot at this time reasonably estimate the cost for compliance with these additional requirements. The amount of any such compliance costs could be material. We cannot predict the impact that future regulations will impose upon our business.

Relationship with Major Custome

Relationship with Major Customers	12 Months Ended
	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Relationship with Major Customers	Relationship with Major Customers During the years ended December 31, 2018 and 2017 , approximately 53% and 48% , respectively, of our consolidated revenues were attributable to contracts with the U.S. government. At December 31, 2018 and 2017 , receivables with respect to contracts with the U.S. government represented 23% and 20% of total trade receivables, respectively.

Financial Information About Seg

Financial Information About Segments	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Financial Information About Segments	Financial Information About Segments Our operations are divided into two operating segments: Technology Development and Products and Licensing. Our engineers and scientists collaborate with our network of government, academic and industry experts to identify technologies and ideas with promising market potential. We then compete to win fee-for-service contracts from government agencies and industrial customers who seek innovative solutions to practical problems that require new technology. The Technology Development segment derives its revenue primarily from services. The Technology Development segment provides applied research to customers in our areas of focus. The Products and Licensing segment develops and sells products or licenses technologies based on commercially viable concepts developed by the Technology Development segment. The Products and Licensing segment derives its revenue from product sales, funded product development and technology licenses. Our President and Chief Executive Officer and his direct reports collectively represent our chief operating decision makers, and they evaluate segment performance based primarily on revenue and operating income or loss. Information about the results of operations for each segment is set forth in the table below. There were no significant inter-segment sales during the years ended December 31, 2018 and 2017 . During the years ended December 31, 2018 and 2017 , 24% and 19% , respectively, of our total sales took place outside the United States. No single country, outside of the United States, represented more than 10% of total revenues during the years ended December 31, 2018 or 2017 . Years ended December 31, 2018 2017 Technology Development revenue $ 20,967,556 $ 18,576,383 Products and Licensing revenue 21,949,689 14,505,482 Total revenue 42,917,245 33,081,865 Technology Development operating income/(loss) 378,212 (120,417 ) Products and Licensing operating income/(loss) 499,323 (2,087,731 ) Total operating income/(loss) $ 877,535 $ (2,208,148 ) Depreciation, Technology Development $ 379,952 $ 359,626 Depreciation, Products and Licensing $ 273,185 $ 747,216 Amortization, Technology Development $ 130,765 $ 139,067 Amortization, Products and Licensing $ 418,349 $ 1,280,699 Products and licensing depreciation includes amounts from discontinued operations of $0.1 million and $0.4 million for the years ended December 31, 2018 and 2017 , respectively. Products and licensing amortization includes amounts from discontinued operations of $0.1 million and $0.9 million for the years ended December 31, 2018 and 2017 , respectively. Additional segment information is as follows: December 31, 2018 2017 Total segment assets: Technology Development $ 34,823,525 $ 32,011,084 Products and Licensing 40,775,211 34,211,552 Total $ 75,598,736 $ 66,222,636 Property plant and equipment and intangible assets, Technology Development $ 2,103,711 $ 2,361,663 Property plant and equipment and intangible assets, Products and Licensing $ 4,927,453 $ 4,831,671 For December 31, 2017, the products and licensing segment assets include assets held for sale in the amount of $7.0 million . Property plant and equipment, and intangible assets as of December 31, 2017 excludes assets associated with the optoelectronic components business sold during 2018.

Quarterly Results (unaudited)

Quarterly Results (unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Results (unaudited)	Quarterly Results (unaudited) The following table sets forth our unaudited historical revenues, operating loss and net (loss)/income by quarter during 2018 and 2017 . Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenues: Technology development $ 4,637 $ 5,466 $ 5,316 $ 5,549 $ 4,235 $ 4,602 $ 4,591 $ 5,549 Products and licensing 4,131 4,457 5,371 7,990 2,398 3,681 3,713 4,637 Total revenues 8,768 9,923 10,687 13,538 6,633 8,283 8,304 10,186 Gross margin 4,929 5,693 5,998 6,572 1,770 2,414 2,385 4,384 Operating income/(loss) (373 ) 205 581 423 (1,374 ) (237 ) (150 ) (61 ) Net income/(loss) from continuing operations (272 ) 299 1,293 (122 ) (1,254 ) (195 ) 194 257 Income/(loss) from discontinued operations net of income taxes 421 768 7,556 1,062 (102 ) (26 ) 15,563 749 Net (loss)/income 149 1,067 8,849 940 (1,356 ) (221 ) 15,757 1,006 Net (loss)/income attributable to common stockholders $ 84 $ 1,004 $ 8,785 $ 873 $ (1,390 ) $ (251 ) $ 15,723 $ 939 Net income/(loss) per share from continuing operations: Basic $ (0.01 ) $ 0.01 $ 0.05 $ — $ (0.05 ) $ (0.01 ) $ 0.01 $ 0.01 Diluted $ (0.01 ) $ 0.01 $ 0.04 $ — $ (0.05 ) $ (0.01 ) $ 0.01 $ 0.01 Net income/(loss) per share from discontinued operations: Basic $ 0.02 $ 0.03 $ 0.27 $ 0.04 $ — $ — $ 0.56 $ 0.03 Diluted $ 0.02 $ 0.02 $ 0.23 $ 0.04 $ — $ — $ 0.48 $ 0.02 Net income/(loss) attributable to common stockholders: Basic $ — $ 0.04 $ 0.31 $ 0.03 $ (0.05 ) $ (0.01 ) $ 0.57 $ 0.03 Diluted $ — $ 0.03 $ 0.27 $ 0.03 $ (0.05 ) $ (0.01 ) $ 0.48 $ 0.03 Weighted average shares: Basic 27,204,989 27,531,361 27,901,631 28,067,348 27,541,356 27,600,147 27,692,539 27,485,278 Diluted 27,204,989 31,506,745 33,055,881 28,067,348 27,541,356 27,600,147 32,714,389 31,790,418

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On August 9, 2017, we completed the sale of our high speed optical receivers ("HSOR") business, which was part of our Products and Licensing segment, to an unaffiliated third party for an initial purchase price of $33.5 million , of which $29.5 million in cash has been received, and $4.0 million was placed into escrow until December 15, 2018 for possible working capital adjustments to the purchase price and potential satisfaction of certain post-closing indemnification obligations (the "Transaction"). The purchase price is subject to adjustment in the future based upon a determination of final working capital, as defined in the asset purchase agreement. The HSOR business was a component of the operations of Advanced Photonix, Inc., which we acquired in May 2015. As part of the Transaction, the buyer also hired approximately 49 of our employees who were engaged in the development, manufacture, and sale of HSOR products in addition to certain corporate administrative functions. The buyer provided certain transition services to us with respect to infrastructure and administration for which we paid $0.3 million per month for a period of five months, for a total of $1.5 million . We recorded this obligation as a reduction of the value of the purchase price. In assessing the fair value of the services expected to be received by us in relation to those we expected to deliver to the buyer, we concluded that the transition service payments were more closely aligned with the fair value of the assets sold than the services received and, thus, should be accounted for as part of the consideration reconciliation rather than operating activities. Our HSOR business accounted for 16.1% of revenues and 18.5% of our costs of revenues for the year ended December 31, 2017 . On July 31, 2018 , we sold the assets and operations related to our Opto business, which was part of our Products and Licensing segment, to an unaffiliated third party for an initial purchase price up to $18.5 million , of which $17.5 million was received at closing and has been properly recorded in the financial statements in accordance with GAAP with the remaining purchase price adjustment up to $1.0 million which is contingent upon the attainment of specified revenue targets during the eighteen months following the closing of the sale. The purchase price is subject to adjustment in the future based upon a determination of final working capital, as defined in the asset purchase agreement. The Opto business was a component of the operations of API, which we acquired in May 2015, and represented all of our operations in our Camarillo, California and Montreal, Quebec facilities. We have reported the results of operations of both our HSOR and Opto businesses 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 business's loss before allocations. We allocated a portion of the consolidated tax (benefit)/expense to discontinued operations based on the ratio of the discontinued business's loss/(income) before allocations. The following table presents a summary of the transactions related to the sales of Opto in the year ended December 31, 2018 and HSOR in the year ended December 31, 2017 : Year Ended December 31, 2018 2017 Sale price $ 17,500,000 $ 33,500,000 Less: transition services payments — (1,500,000 ) Adjusted purchase price 17,500,000 32,000,000 Assets held for sale (8,193,184 ) (16,851,540 ) Liabilities held for sale 989,453 2,330,052 Transaction costs (858,227 ) (895,186 ) Return of working capital 730,000 — Income tax expense (1,572,245 ) (912,298 ) Gain on sale of discontinued operations $ 8,595,797 $ 15,671,028 Assets and liabilities held for sale as of December 31, 2017 were as follows: December 31, 2017 Assets Current assets: Accounts receivable, net $ 1,940,125 Inventory 2,316,329 Prepaid expenses and other current assets 79,651 Total current assets 4,336,105 Property and equipment, net 599,102 Intangible assets, net 1,510,203 Goodwill 502,000 Other assets 16,028 Total non-current assets 2,627,333 Total assets held for sale $ 6,963,438 Liabilities Current liabilities: Accounts payable $ 851,785 Accrued liabilities 120,666 Deferred revenue — Total current liabilities 972,451 Long-term deferred rent — Total non-current liabilities — Total liabilities held for sale $ 972,451 The key components of income from discontinued operations were as follows: Year Ended December 31, 2018 2017 Net revenues $ 8,363,606 $ 19,511,646 Cost of revenues 5,294,268 12,994,656 Operating expenses 1,728,113 5,413,952 Other (income)/expenses (13,330 ) 31,758 Income before income taxes 1,354,555 1,071,280 Allocated tax expense 183,921 876,588 Operating income from discontinued operations 1,170,634 194,692 Gain on sale, net of related income taxes 8,595,797 15,671,028 Net income from discontinued operations $ 9,766,431 $ 15,865,720 For the years ended December 31, 2018 and 2017 , depreciation and amortization from discontinued operations were $0.2 million and $1.3 million , respectively. For the years ended December 31, 2018 and 2017 , the acquisition of property plant and equipment for discontinued operations were $0.1 million in each period. For the years ended December 31, 2018 and 2017 , intangible property costs associated with discontinued operations were $0.01 million and $0.1 million , respectively. Proceeds from the sale of the Opto business which were included in cash flows from investing activities in 2018 were $16.0 million and proceeds from the sale of the HSOR business which are included in cash flows from investing activities for 2017 were $28.0 million . The gain on sale of discontinued operations included in non-cash adjustments to cash flows from operating activities for 2018 and 2017 was $8.6 million and $15.7 million , respectively.

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Business Acquisitions	Business Acquisitions On October 15, 2018, we acquired substantially all of the assets, other than cash, the United States operations of Micron Optics, Inc. ("MOI") for cash consideration of $5.5 million , of which $5.0 million was paid during 2018, with the remaining $0.5 million reflected in accrued liabilities. The transaction has been accounted for under the acquisition method of accounting in accordance with ASC 805. We incurred approximately $0.8 million of costs associated with the acquisition during 2018, which are included in selling, general and administrative expenses in our consolidated statement of operations. For the period from the closing of the acquisition through December 31, 2018, we recognized revenues of $2.6 million and income of $1.1 million associated with the operations of MOI. 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 the acquisition consideration over the identifiable assets acquired and liabilities assumed is recognized as goodwill. We have completed a preliminary allocation of the purchase consideration with the assistance of a third-party valuation expert. The following allocation of the purchase consideration is subject to revision as additional information becomes known in the future. Preliminary Allocation Accounts receivable $ 1,742,693 Inventory 1,435,606 Other current assets 69,951 Property and equipment 996,460 Identifiable intangible assets 1,650,000 Goodwill 101,008 Accounts payable and accrued expenses (450,985 ) Total purchase consideration $ 5,544,733 The preliminary identifiable intangible assets and their estimated useful lives were as follows: Estimated Estimated Fair Value Useful Life Developed technology $ 1,200,000 5.0 years In process research and development 200,000 7.0 years Trade names 150,000 3.0 years Customer base 100,000 7.0 years $ 1,650,000 Developed technologies acquired primarily consists of MOI's existing technologies related to fiber optic sensing instruments, modules, and components. The developed technologies were valued using the "multi-period excess earnings" method, under the income approach. The multi-period excess earnings method reflects the present value of the projected cash flows that are expected by the developed technologies less charges representing the contribution of other assets to those cash flows. A discount rate of 24.5% was used to discount the cash flows to present value. In process research and development represents the fair value of incomplete MOI research and development projects that had not reached technological feasibility as of the closing date of the acquisition. In the future, the fair value of such project at the closing date of the acquisition will be either amortized or impaired depending on whether the project is completed or abandoned. The fair value of in process research and development was determined using the multi-period excess earnings method. A discount rate of 29.5% was used to discount the cash flows to the present value. Customer base represents the fair value of projected cash flows that will be derived from the sale of products to MOI's existing customers as of the closing date of the acquisition. Customer relationships were valued using the "distributor" method, under the income approach. Under this premise, the margin of a distributor within the industry is deemed to be the margin attributable to customer relationships. This isolates the cash flows attributable to the customer relationships for which a market participant would be willing to pay. A discount rate of 24.5% was used to discount cash flows to present value. Trade names and trademarks are considered a type of guarantee of a certain level of quality or performance represented by the MOI brand. Trade names and trademarks were valued using the "relief from royalty" method of the income approach. This method is based on the assumption that in lieu of ownership, a market participant would be willing to pay a royalty in order to exploit the related benefits of this asset. A discount rate of 17% was used to discount the cash flows to the present value. 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 acquisition. 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 acquisition of MOI had been completed on January 1, 2017. The pro forma information includes adjustments to depreciation expense for property and equipment acquired, to amortize expense for the intangible assets acquired, and to eliminate the acquisition transaction expenses recognized in each period. Transaction-related expenses associated with the acquisition and excluded from the pro forma income/(loss) from continuing operations were $0.8 million . The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations or the combined business had the acquisition of MOI actually occurred on January 1, 2017, or the results of future operations of the combined business. For instance, planned or expected operational synergies following the acquisition are not reflected in the pro forma information. Consequently, actual results will differ from the unaudited pro forma information presented below. Year ended December 31, 2018 2017 (unaudited) (unaudited) Revenue $ 49,494,358 $ 40,954,093 Income/(loss) from continuing operations $ 1,579,318 $ (2,778,487 ) On March 1, 2019, we acquired the outstanding stock of General Photonics Corporation for cash consideration of $19.0 million . Of the purchase price, $17.1 million was paid at closing and $1.9 million was placed into escrow for possible working capital adjustments to the purchase price and potential satisfaction of certain post-closing indemnification obligations. Additionally, we can become obligated to pay additional cash consideration of up to $1.0 million if certain revenue targets for the General Photonics Corporation historical business are met for the twelve month period following the closing. The purchase price is also subject to adjustment based upon the determination of final working capital as of the closing date compared to a target working capital valued specified in the stock purchase agreement. We have not yet completed its analysis of the fair market value of the assets acquired and liabilities assumed as of the closing date and the associated allocation of the purchase price.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Schedule II Luna Innovations Incorporated Valuation and Qualifying Accounts Column A Column B Column C Column D Column E Balance at beginning of Period Additions Deductions Balance at end of period Year Ended December 31, 2017 Reserves deducted from assets to which they apply: Deferred tax valuation allowance $ 21,309,546 $ — $ (16,288,802 ) $ 5,020,744 Allowances for doubtful accounts 247,239 99,888 (60,410 ) 286,717 $ 21,556,785 $ 99,888 $ (16,349,212 ) $ 5,307,461 Year Ended December 31, 2018 Reserves deducted from assets to which they apply: Deferred tax valuation allowance $ 5,020,744 $ — $ (1,753,211 ) $ 3,267,533 Allowances for doubtful accounts 286,717 3,500 (6,134 ) 284,083 $ 5,307,461 $ 3,500 $ (1,759,345 ) $ 3,551,616 All other schedules are omitted as the required information is inapplicable or the information is presented in the Consolidated Financial Statements and notes thereto in Item 8 of Part II of this Annual Report on Form 10-K. (3) Exhibits. The exhibits filed as part of this report are listed under “Exhibits” at subsection (b) of this Item 15. (b) Exhibits

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Luna Innovations Incorporated (“we” 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 high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing products for industries utilizing composite and other advanced materials, such as the automotive, aerospace, energy and infrastructure industries. Our distributed fiber optic sensing products help designers and manufacturers more efficiently develop new and innovative products by providing valuable information such as highly detailed stress, strain, and temperature measurements of a new design or manufacturing process. In addition, our distributed fiber optic sensing products are used to monitor the structural integrity or operational health of critical assets, including large civil structures such as bridges. Our communications test products accelerate the development of advanced fiber optic components and networks by providing fast and highly accurate characterization of components and networks. We also provide applied research services, typically under research programs funded by the U.S. government, in areas of advanced materials, sensing, and healthcare applications. Our business model is designed to accelerate the process of bringing new and innovative products to market. We use our in-house technical expertise across a range of technologies to perform applied research services for companies and for government funded projects. We continue to invest in product development and commercialization, which we anticipate will lead to increased product sales growth.
Consolidation Policy	Consolidation Policy Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include our accounts and the accounts of our wholly owned subsidiaries. We eliminate from our financial results all intercompany transactions.
Reclassifications	Reclassifications Certain amounts in the prior period have been reclassified to conform to current presentation. As a result of the adoption of Accounting Standards Codification ("ASC") 2014-09, Revenue from Contracts with Customers (Topic 606), we presented balances entitled contract assets and contract liabilities within the consolidated balance sheet as well as the impact of the changes in these balances within the consolidated statement of cash flows. We reclassified comparable balances within the December 31, 2017 consolidated balance sheet as well as the impact of changes in those balances within the consolidated statement of cash flows in order to enhance comparability. These reclassifications had no effect on our reported financial condition, results of operations, or cash flows. Any other reclassifications were immaterial to the consolidated interim financial statements taken as a whole.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions.
Technology Development and Product Sales Revenues	Technology Development Revenues We perform research and development for U.S. Federal government agencies, educational institutions and commercial organizations. We account for a research contract when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred. Our contracts with agencies of the U.S. government are subject to periodic funding by the respective contracting agency. Funding for a contract may be provided in full at inception of the contract or ratably throughout the contract as the services are provided. In evaluating the probability of funding for purposes of assessing collectability of the contract price, we consider our previous experience with our customers, communication with our customers regarding funding status and our knowledge of available funding for the contract or program. If funding is not assessed as probable, revenue recognition is deferred until realization is reasonably assured. Under the typical payment terms of our U.S. government contracts, the customer pays us either performance-based payments ("PBPs") or progress payments. PBPs, which are typically used in the firm fixed price contracts, are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments, which are typically used in our cost type contracts, are interim payments based on costs incurred as the work progresses. For our U.S. government cost-type contracts, the customer generally pays us during the performance period for 80% to 90% of our actual costs incurred. Because the customer retains a small portion of the contract price until completion of the contract and audit of allowable costs, cost type contracts generally result in revenue recognized in excess of billings which we present as contract assets on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these advance payments and PBPs paid in advance which are in excess of the revenue recognized and present these amounts as contract liabilities on the balance sheet. To determine the proper revenue recognition method for research and development contracts, we evaluate whether two or more contracts should be combined and accounted for as one single modified contract and whether the combined or single contract should be accounted for as more than one performance obligation. For instances where a contract has options that were bid with the initial contract and awarded at a later date, we combine the options with the original contract when options are awarded. For most of our contracts, the customer contracts for research with multiple milestones that are interdependent. Consequently, the entire contract is accounted for as one performance obligation. The effect of the combined or modified contract on the transaction price and measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract revenue recognition is measured over time as we perform because of continuous transfer of control to the customer. For U.S. government contracts which are typically subject to the Federal Acquisition Regulation, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for cost incurred plus a reasonable profit and take control of any work in process. From time to time, as part of normal management processes, facts may change, causing revisions to estimated total costs or revenues expected. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. We generally use the input method, more specifically the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The underlying bases for estimating our contract research revenues are measurable expenses, such as labor, subcontractor costs and materials, and data that are updated on a regular basis for purposes of preparing our cost estimates. Our research contracts generally have a period of performance of six months to three years , and our estimates of contract costs have historically been consistent with actual results. Revisions in these estimates between accounting periods to reflect changing facts and circumstances have not had a material impact on our operating results, and we do not expect future changes in these estimates to be material. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Under cost reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fixed fee representing the profit negotiated between us and the contracting agency. Revenue from cost reimbursable contracts is recognized as costs are incurred plus an estimate of applicable fees earned. We consider fixed fees under cost reimbursable contracts to be earned in proportion to the allowable costs incurred in performance of the contract. Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs. Fixed price contracts may include either a product delivery or specific service performance throughout a period. For fixed price contracts that are based on the proportional performance method and involve a specified number of deliverables, we recognize revenue based on the proportion of the cost of the deliverables compared to the cost of all deliverables included in the contract as this method more accurately measures performance under these arrangements. For fixed price contracts that provide for the development and delivery of a specific prototype or product, revenue is recognized based upon the percentage of completion method. Whether certain costs under government contracts are allowable is subject to audit by the government. Certain indirect costs are charged to contracts using provisional or estimated indirect rates, which are subject to later revision based on government audits of those costs. Management is of the opinion that costs subsequently disallowed, if any, would not likely have a significant impact on revenues recognized for those contracts. Product Sales Revenues Revenues from product sales are generated by the sale of commercial products and services under various sales programs to the end user and through distribution channels. We sell fiber optic sensing systems to end users for use in numerous fiber optic based measurement applications. Revenues are recorded net of applicable sales taxes collected from customers and payable to state or local governmental entities. To determine the proper revenue recognition method for Products and Licensing contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. We recognize revenue when the performance obligation has been satisfied by transferring the control of the product or service to the customer. For tangible products that contain software that is essential to the tangible product’s functionality, we consider the product and software to be a single performance obligation and recognize revenue accordingly. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on their relative stand-alone selling prices. In such circumstances, we use the observable price of goods or services which are sold separately in similar circumstances to similar customers. If these prices are not observable, then we will estimate the stand-alone selling price using information that is reasonably available. For the majority of our standard products and services, price list and discount structures related to customer type are available. For products and services that do not have price list and discount structures, we may use one or more of the following: (i) adjusted market assessment approach, (ii) expected cost plus a margin approach, and (iii) residual approach. The adjusted market approach requires us to evaluate the market in which we sell goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services. The expected cost plus margin approach requires us to forecast our expected costs of satisfying the performance obligation and then add a reasonable margin for that good or service. The residual approach decreases the total transaction price by the sum of the observable standalone selling prices if either the company sells the same good or services to different customers for a broad range of amounts or the company has not established a price for the good or service and that good or service has not been sold on a standalone basis. Shipping and handling activities primarily occur after a customer obtains control and are considered fulfillment cost rather than separate performance obligations. Similarly, sales and similar taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. For standard products, we recognize revenue at a point in time when control passes to the customer. Absent substantial product acceptance clauses, this is based on the shipping terms. For custom products that require engineering and development based on customer requirements, we will recognize revenue over time using the output method for any items shipped and any finished goods or work in process that is produced for balances of open sales orders. For any finished goods or work in process that has been produced for the balance of open sales orders we recognize revenue by applying the average selling price for such open order to the lesser of the on hand balance in finished goods or open sales order quantity which we present as a contract asset on the balance sheet. Cost of sales is recognized based on the standard cost of the finished goods and work in process associated with this revenue and inventory balances are reduced accordingly. For extended warranties and product rentals, revenue is recognized over time using the output method based on the time elapsed for the warranty or service period. In the case of warranties, we record a contract liability for amounts billed but that are not recognized until subsequent period. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expense. For testing services where we are performing testing on an asset the customer controls, revenue is recognized over time by the output method using the performance to date. For training where the customer is receiving the benefit of training as it is occurring and for repairs to a customer controlled asset, revenue is recognized over time by the output method using the performance to date. For royalty revenue, we apply the practical expedient “royalty exception” recognizing revenue based on the royalty agreement which specifies an amount based on sales or minimum amount, whichever is greater. In some product rental contracts, a customer may be offered a discount on the purchase of an item that would provide for a material right. When a material right has been provided to a customer, a separate performance obligation is established and a portion of the rental revenue will be deferred until the future product is purchased or the option expires. This deferred revenue is recognized as a contract liability on the balance sheet. In certain circumstances we may offer a "right of return" to a distributor of our products, in which case a contract liability is calculated based on the terms of the agreement and recorded as a reduction to revenue. In addition, a contract asset for the rights to recover products from customers and a reduction of cost of sales is also calculated and recorded.
Allowance for Uncollectible Receivables	Allowance for Uncollectible Receivables Accounts receivable are recorded at their face amount, less an allowance for doubtful accounts. We review the status of our uncollected receivables on a regular basis. In determining the need for an allowance for uncollectible receivables, we consider our customers’ financial stability, past payment history and other factors that bear on the ultimate collection of such amounts.
Cash Equivalents	Cash Equivalents We consider all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. To date, we have not incurred losses related to cash and cash equivalents. Cash equivalents at December 31, 2018 and 2017 included $38.3 million and $25.2 million , respectively, invested in U.S. Treasury obligations through a sweep account with our bank. The full value of amounts invested through the sweep account are convertible to cash on a daily basis. Our cash transactions are processed through reputable commercial banks. We regularly maintain cash balances with financial institutions which exceed Federal Deposit Insurance Corporation (“FDIC”) insurance limits.
Fair Value Measurements	Fair Value Measurements Our financial assets and liabilities are measured at fair value, which is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. Valuation techniques are based on observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair value hierarchy: • 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 significant value drivers are observable. • Level 3—Valuations derived from valuation techniques in which 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. We consider the terms of the Silicon Valley Bank ("SVB") debt facility including its interest rate of prime plus 2% , to be at market based upon similar instruments that would be available to us.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. We record depreciation using the straight-line method over the following estimated useful lives: Equipment 3 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements Lesser of lease term or life of improvements
Intangible Assets	Intangible Assets Intangible assets consist of patents related to certain intellectual property that we have developed or acquired and identifiable intangible assets recognized in connection with our merger with Advanced Photonix, Inc. ("API") and Micron Optics, Inc. ("MOI"). We amortize our identified intangible assets over their estimated useful lives ranging between one and eleven years , and analyze the reasonableness of the remaining useful life whenever events or circumstances indicate that the carrying amount may not be recoverable to determine whether their carrying value has been impaired.
Goodwill	Goodwill Goodwill is reviewed for impairment at least annually, or more frequently if events or circumstances indicate that goodwill might be impaired. We have established October 1 as our specified annual date for impairment testing.
Research, Development and Engineering	Research, Development and Engineering Research, development and engineering expenses not related to contract performance are expensed as incurred.
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less cost to sell.
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 net realizable value.
Net Income/(Loss) per Share	Net Income/(Loss) per Share Basic per share data is computed by dividing net income/(loss) attributable to common stockholders by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income/(loss) attributable to common stockholders 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 common shares 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 4.9 million common stock equivalents (which include outstanding warrants, preferred stock, accrued stock dividends, and stock options) are included for the diluted per share data for the year ended December 31, 2018 . The effect of 4.3 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are not included for the year ended December 31, 2017 , as they are anti-dilutive to earnings per share due to us having a net loss from continuing operations.
Stock-Based Compensation	Stock-Based Compensation We have two stock-based compensation plans, which are described further in Note 10. We recognize compensation expense based upon the fair value of the underlying equity award as of the date of grant. We have elected to use the Black-Scholes option pricing model to value any stock options granted. Restricted stock and restricted stock units awarded are valued at the closing price of our common stock on the date of the award. We recognize stock-based compensation for such awards on a straight-line method over the requisite service period of the awards taking into account the effects of the employees’ expected exercise. We reduce stock-based compensation expense for the value of any forfeitures of vested awards as such forfeitures occur. We recognize expense for equity instruments issued to non-employees based upon the fair value of the equity instruments issued.
Advertising	Advertising We expense the cost of advertising as incurred.
Income Taxes	Income Taxes We account for income taxes using the liability method. Deferred tax assets or liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when the differences reverse. A valuation allowance against net deferred tax assets is provided unless we conclude it is more likely than not that the deferred tax assets will be realized. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We evaluate our ability to benefit from all deferred tax assets and establish valuation allowances for amounts we believe are not more-likely-than-not to be realizable. For uncertain tax positions, we use a more-likely-than-not threshold, 51% or greater, based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. Penalties, if probable and reasonably estimable, and interest expense related to uncertain tax positions are recognized as a component of the tax provision. We account for income taxes using the liability method. Deferred tax assets or liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when the differences reverse. A valuation allowance against net deferred tax assets is provided unless we conclude it is more likely than not that the deferred tax assets will be realized.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Effective January 1, 2018, we adopted Revenue from Contracts with Customers (Topic 606), using the modified retrospective transition method. Under the modified retrospective approach, we apply the standards to new contracts and those that were not completed as of January 1, 2018. For those contracts not completed as of January 1, 2018, this method resulted in a cumulative adjustment to decrease the accumulated deficit in the net amount of $0.4 million . Prior periods will not be retrospectively adjusted, but we will maintain dual reporting for the year of initial application in order to maintain comparability of the periods presented. Under the new standard, contracts in our Technology Development segment, which primarily provide research services, are not materially impacted upon the adoption of Topic 606 as revenue will continue to be recognized over time using an input model. Contracts in our Products and Licensing segment generally provide for the following revenue sources: standard product sales, custom product development and sales, product rental, extended warranties, training/service, and certain royalties. Revenues for this segment are recognized using either the “point in time” or “over time” methods of Topic 606, depending upon the revenue source. The major change in revenue recognition for the Products and Licensing segment related to custom optoelectronic products which changed from “point in time” to “over time” upon the adoption of Topic 606. This change results in the acceleration of revenue when compared to existing standards with the cumulative adjustment relating to contracts that are not complete as of December 31, 2017 recognized as an adjustment to opening accumulated deficit on January 1, 2018. The revenue received from our custom optoelectronic products segment is included as part of our discontinued operations (Note 17) and shown above in the current assets and liabilities held for sale as of December 31, 2017. Our revenue for our standard products will continue to be recognized using the "point in time" model of Topic 606, and the timing of such revenue recognition is not expected to differ materially from our historical revenue recognition. Other immaterial adjustments related to the Products and Licensing segment that are sometimes offered to customers include discounts on future purchases related to rental agreements, customer rights of return, and volume discounts. Technology Development Revenues We perform research and development for U.S. Federal government agencies, educational institutions and commercial organizations. We account for a research contract when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred. Our contracts with agencies of the U.S. government are subject to periodic funding by the respective contracting agency. Funding for a contract may be provided in full at inception of the contract or ratably throughout the contract as the services are provided. In evaluating the probability of funding for purposes of assessing collectability of the contract price, we consider our previous experience with our customers, communication with our customers regarding funding status and our knowledge of available funding for the contract or program. If funding is not assessed as probable, revenue recognition is deferred until realization is reasonably assured. Under the typical payment terms of our U.S. government contracts, the customer pays us either performance-based payments ("PBPs") or progress payments. PBPs, which are typically used in the firm fixed price contracts, are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments, which are typically used in our cost type contracts, are interim payments based on costs incurred as the work progresses. For our U.S. government cost-type contracts, the customer generally pays us during the performance period for 80% to 90% of our actual costs incurred. Because the customer retains a small portion of the contract price until completion of the contract and audit of allowable costs, cost type contracts generally result in revenue recognized in excess of billings which we present as contract assets on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these advance payments and PBPs paid in advance which are in excess of the revenue recognized and present these amounts as contract liabilities on the balance sheet. To determine the proper revenue recognition method for research and development contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For instances where a contract has options that were bid with the initial contract and awarded at a later date, we combine the options with the original contract when options are awarded. For most of our contracts, the customer contracts for research with multiple milestones that are interdependent. Consequently, the entire contract is accounted for as one performance obligation. The effect of the combined or modified contract on the transaction price and measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract revenue recognition is measured over time as we perform because of continuous transfer of control to the customer. For U.S. government contracts which are typically subject to the Federal Acquisition Regulation, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for cost incurred plus a reasonable profit and take control of any work in process. From time to time, as part of normal management processes, facts may change, causing revisions to estimated total costs or revenues expected. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. We generally use the input method, more specifically the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The underlying bases for estimating our contract research revenues are measurable expenses, such as labor, subcontractor costs and materials, and data that are updated on a regular basis for purposes of preparing our cost estimates. Our research contracts generally have a period of performance of six months to three years , and our estimates of contract costs have historically been consistent with actual results. Revisions in these estimates between accounting periods to reflect changing facts and circumstances have not had a material impact on our operating results, and we do not expect future changes in these estimates to be material. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known. Under cost reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fixed fee representing the profit negotiated between us and the contracting agency. Revenue from cost reimbursable contracts is recognized as costs are incurred plus an estimate of applicable fees earned. We consider fixed fees under cost reimbursable contracts to be earned in proportion to the allowable costs incurred in performance of the contract. Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs. Fixed price contracts may include either a product delivery or specific service performance throughout a period. For fixed price contracts that are based on the proportional performance method and involve a specified number of deliverables, we recognize revenue based on the proportion of the cost of the deliverables compared to the cost of all deliverables included in the contract as this method more accurately measures performance under these arrangements. For fixed price contracts that provide for the development and delivery of a specific prototype or product, revenue is recognized based upon the percentage of completion method. Whether certain costs under government contracts are allowable is subject to audit by the government. Certain indirect costs are charged to contracts using provisional or estimated indirect rates, which are subject to later revision based on government audits of those costs. Management is of the opinion that costs subsequently disallowed, if any, would not likely have a significant impact on revenues recognized for those contracts. We have agreed on final billing rates with the government through December 31, 2017. Products and Licensing Revenues We produce standard and customized products for commercial organizations, educational institutions, and U.S. Federal government agencies. In addition we will also offer extended warranties, product rentals, and services which include testing, training, or repairs for specific products. Customers also pay royalties as agreed based on sales or usage. We account for product and related items when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. To determine the proper revenue recognition method for Products and Licensing contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. We recognize revenue when the performance obligation has been satisfied by transferring the control of the product or service to the customer. For tangible products that contain software that is essential to the tangible product’s functionality, we consider the product and software to be a single performance obligation and recognize revenue accordingly. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on their relative stand-alone selling prices. In such circumstances, we use the observable price of goods or services which are sold separately in similar circumstances to similar customers. If these prices are not observable, then we will estimate the stand-alone selling price using information that is reasonably available. For the majority of our standard products and services, price list and discount structures related to customer type are available. For products and services that do not have price list and discount structures, we may use one or more of the following: (i) adjusted market assessment approach, (ii) expected cost plus a margin approach, and (iii) residual approach. The adjusted market approach requires us to evaluate the market in which we sell goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services. The expected cost plus margin approach requires us to forecast our expected costs of satisfying the performance obligation and then add a reasonable margin for that good or service. The residual approach decreases the total transaction price by the sum of the observable standalone selling prices if either the company sells the same good or services to different customers for a broad range of amounts or the company has not established a price for the good or service and that good or service has not been sold on a standalone basis. Shipping and handling activities primarily occur after a customer obtains control and are considered fulfillment cost rather than separate performance obligations. Similarly, sales and similar taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. For standard products, we recognize revenue at a point in time when control passes to the customer. Absent substantial product acceptance clauses, this is based on the shipping terms. For custom products that require engineering and development based on customer requirements, we will recognize revenue over time using the output method for any items shipped and any finished goods or work in process that is produced for balances of open sales orders. For any finished goods or work in process that has been produced for the balance of open sales orders we recognize revenue by applying the average selling price for such open order to the lesser of the on hand balance in finished goods or open sales order quantity which we present as a contract asset on the balance sheet. Cost of sales is recognized based on the standard cost of the finished goods and work in process associated with this revenue and inventory balances are reduced accordingly. For extended warranties and product rentals, revenue is recognized over time using the output method based on the time elapsed for the warranty or service period. In the case of warranties, we record a contract liability for amounts billed but that are not recognized until subsequent period. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expense. For testing services where we are performing testing on an asset the customer controls, revenue is recognized over time by the output method using the performance to date. For training where the customer is receiving the benefit of training as it is occurring and for repairs to a customer controlled asset, revenue is recognized over time by the output method using the performance to date. For royalty revenue, we apply the practical expedient “royalty exception” recognizing revenue based on the royalty agreement which specifies an amount based on sales or minimum amount, whichever is greater. In some product rental contracts, a customer may be offered a discount on the purchase of an item that would provide for a material right. When a material right has been provided to a customer, a separate performance obligation is established and a portion of the rental revenue will be deferred until the future product is purchased or the option expires. This deferred revenue is recognized as a contract liability on the balance sheet. In certain circumstances we may offer a "right of return" to a distributor of our products, in which case a contract liability is calculated based on the terms of the agreement and recorded as a reduction to revenue. In addition, a contract asset for the rights to recover products from customers and a reduction of cost of sales is also calculated and recorded. Unfulfilled performance obligations represent amounts expected to be earned on executed contracts. Indefinite delivery and quantity contracts and unexercised options are not reported in total unfulfilled performance obligations. Unfulfilled performance obligations include funded obligations, which is the amount for which money has been directly authorized by the U.S. government and for which a purchase order has been received by a commercial customer, and unfunded obligations, representing firm orders for which funding has not yet been appropriated. The approximate value of our Technology Development segment unfulfilled performance obligations was $26.0 million at December 31, 2018 . We expect to satisfy 87% of the performance obligations in 2019, 9% in 2020 and the remaining by 2022. The approximate value of our Products and Licensing segment unfulfilled performance obligations was $5.8 million at December 31, 2018 . We expect to satisfy 95% of the performance obligations in 2019, 4% in 2020 and the remaining by 2023. We disaggregate our revenue from contracts with customers by geographic locations, customer-type, contract type, timing of recognition, and major categories for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Effective January 1, 2018, we adopted 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. The adoption of ASU No. 2016-15 did not have a significant impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard revises the accounting for leases and requires lessees to recognize, for all leases with terms greater than one year, a right-of-use asset and liability which depicts the rights and obligations arising from a lease. This standard also requires qualitative and quantitative disclosures designed to provide information regarding the nature, amount and timing of lease expense. The new guidance is not expected to significantly change the recognition and measurement of lease expense. It is effective for the first interim and annual periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption. We adopted the standard beginning January 1, 2019 using the alternative transition method. We are finalizing the value as of the adoption date of the right-of-use asset and lease liabilities and estimate that the right-of-use asset will be between $4 million and $5 million and that the lease liability will be reasonably consistent with the right-of-use asset amounts. We do not expect a material impact from adopting the new standard on our results of operations or cash flows. In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the subsequent measurement of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019. We do not expect ASU 2017-04 will have a material impact on our financial statements. In February 2018, the FASB issued ASU 2018-02: Income Statement – Reporting Comprehensive Income (Topic 220) . Under current accounting guidance, the income tax effects for changes in income tax rates and certain other transactions are recognized in income from continuing operations resulting in income tax effects recognized in AOCI that do not reflect the current tax rate of the entity (“stranded tax effects”). The new guidance allows us the option to reclassify these stranded tax effects to accumulated deficit that relate to the change in the federal tax rate resulting from the passage of the Tax Cuts and Jobs Act. This update is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted. We do not expect the adoption of this standard will have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement. which amends the disclosure requirements in ASC 820 by adding, changing, or removing certain disclosures. The ASU applies to all entities that are required under this guidance to provide disclosures about recurring or nonrecurring fair value measurements. These amendments are effective for all entities for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. We do not expect ASU 2018-13 will have a material impact on our financial statements. Contract assets were formerly reported as unbilled accounts receivable. Contract liabilities were formerly reported as accrued liabilities or deferred revenue. Inventory was also impacted by the adoption of the new guidance.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and Equipment Estimated Useful Lives	We record depreciation using the straight-line method over the following estimated useful lives: Equipment 3 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements Lesser of lease term or life of improvements
Summary of Impacts of Adopting Topic 606	The following tables summarize the impacts of adopting Topic 606 on our consolidated financial statements as of and for the three months and year ended December 31, 2018 . Impact of changes in accounting policies December 31, 2018 As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets: Cash and cash equivalents $ 42,460,267 $ — $ 42,460,267 Accounts receivable, net 13,037,068 — 13,037,068 Receivable from sale of HSOR business 2,500,000 — 2,500,000 Contract assets 2,422,495 — 2,422,495 Inventory 6,873,742 — 6,873,742 Prepaid expenses and other current assets 935,185 — 935,185 Total current assets 68,228,757 — 68,228,757 Long-term contract assets 336,820 — 336,820 Property and equipment, net 3,627,886 — 3,627,886 Intangible assets, net 3,302,270 — 3,302,270 Goodwill 101,008 — 101,008 Other assets 1,995 — 1,995 Total assets $ 75,598,736 $ — $ 75,598,736 Liabilities and stockholders’ equity Current liabilities: Current portion of long-term debt obligations $ 619,315 $ — $ 619,315 Current portion of capital lease obligations 40,586 — 40,586 Accounts payable 2,395,984 — 2,395,984 Accrued liabilities 6,597,458 — 6,597,458 Contract liabilities 2,486,111 (3,880 ) 2,482,231 Total current liabilities 12,139,454 (3,880 ) 12,135,574 Long-term deferred rent 1,035,974 — 1,035,974 Long-term capital lease obligations 68,978 — 68,978 Total liabilities 13,244,406 (3,880 ) 13,240,526 Commitments and contingencies Stockholders’ equity: Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2018 and December 31, 2017, respectively 1,322 — 1,322 Common stock, par value $0.001, 100,000,000 shares authorized, 29,209,506 and 28,354,822 shares issued, 27,956,401 and 27,283,918 shares outstanding at December 31, 2018 and 2017, respectively 30,120 — 30,120 Treasury stock at cost, 1,253,105 and 1,070,904 shares at December 31, 2018 and December 31, 2017, respectively (2,116,640 ) — (2,116,640 ) Additional paid-in capital 85,744,750 — 85,744,750 Accumulated deficit (21,305,222 ) 3,880 (21,301,342 ) Total stockholders’ equity 62,354,330 3,880 62,358,210 Total liabilities and stockholders’ equity $ 75,598,736 $ — $ 75,598,736 Impact of changes in accounting policies Three Months Ended December 31, 2018 Year Ended December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 As reported Adjustments Balances without adoption of Topic 606 Revenues: Technology development $ 5,548,639 $ — $ 5,548,639 $ 20,967,556 $ — $ 20,967,556 Products and licensing 7,989,686 — 7,989,686 21,949,689 1,630 21,951,319 Total revenues 13,538,325 — 13,538,325 42,917,245 1,630 42,918,875 Cost of revenues: Technology development 4,268,509 — 4,268,509 15,400,475 — 15,400,475 Products and licensing 2,697,538 — 2,697,538 8,078,870 — 8,078,870 Total cost of revenues 6,966,047 — 6,966,047 23,479,345 — 23,479,345 Gross profit 6,572,278 — 6,572,278 19,437,900 1,630 19,439,530 Operating expense: Selling, general and administrative 4,896,136 — 4,896,136 14,794,205 — 14,794,205 Research, development and engineering 1,252,663 — 1,252,663 3,766,160 — 3,766,160 Total operating expense 6,148,799 — 6,148,799 18,560,365 — 18,560,365 Operating income 423,479 — 423,479 877,535 1,630 879,165 Other income: Other expense (1,070 ) — (1,070 ) (17,143 ) — (17,143 ) Investment income 198,525 — 198,525 549,580 — 549,580 Interest expense (21,136 ) — (21,136 ) (124,344 ) — (124,344 ) Total other income 176,319 — 176,319 408,093 — 408,093 Income from continuing operations before income taxes 599,798 — 599,798 1,285,628 1,630 1,287,258 Income tax expense 722,148 — 722,148 47,818 — 47,818 Net (loss)/income from continuing operations $ (122,350 ) $ — $ (122,350 ) $ 1,237,810 $ 1,630 $ 1,239,440 The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of Topic 606 was as follows: Balance at Adjustment for Adjusted balance at December 31, 2017 Topic 606 January 1, 2018 Assets: Current assets held for sale $ 4,336,105 $ 379,891 $ 4,715,996 Liabilities: Contract liabilities $ 3,318,379 $ 2,250 $ 3,320,629 Current liabilities held for sale $ 862,205 $ 23,613 $ 885,818 Stockholders' equity: Accumulated deficit $ (32,406,189 ) $ 354,028 $ (32,052,161 ) The titles have been changed in the table below to be consistent with accounts currently used under the new standard. December 31, 2017 As Reported As Adopted Accounts receivables, net $ 9,857,009 $ 5,929,042 Contract assets — 1,778,142 Current assets held for sale — 1,940,126 Long-term contract assets — 209,699 Accrued liabilities 8,959,935 6,547,230 Contract liabilities — 3,318,379 Current liabilities held for sale — 120,665 Deferred revenue 1,026,339 —
Disaggregation of Revenue	See details in the tables below. Three Months Ended December 31, 2018 Year Ended December 31, 2018 (unaudited) Technology Development Products and Licensing Total Technology Development Products and Licensing Total Total Revenue by Geographic Location United States $ 5,548,639 $ 3,624,247 $ 9,172,886 $ 20,967,556 $ 11,585,296 $ 32,552,852 Asia — 2,697,215 2,697,215 — 5,977,563 5,977,563 Europe — 1,331,145 1,331,145 — 3,873,161 3,873,161 Canada, Central and South America — 282,990 282,990 — 382,797 382,797 All Others — 54,089 54,089 — 130,872 130,872 Total $ 5,548,639 $ 7,989,686 $ 13,538,325 $ 20,967,556 $ 21,949,689 $ 42,917,245 Total Revenue by Major Customer Type Sales to the U.S. government $ 5,418,679 $ 469,534 $ 5,888,213 $ 20,703,338 $ 1,834,289 $ 22,537,627 U.S. direct commercial sales and other 129,960 3,154,714 3,284,674 264,218 9,737,720 10,001,938 Foreign commercial sales & other — 4,365,438 4,365,438 — 10,377,680 10,377,680 Total $ 5,548,639 $ 7,989,686 $ 13,538,325 $ 20,967,556 $ 21,949,689 $ 42,917,245 Total Revenue by Contract Type Fixed-price contracts $ 2,777,012 $ 7,989,686 $ 10,766,698 $ 9,388,770 $ 21,949,689 $ 31,338,459 Cost-type contracts 2,771,627 — 2,771,627 11,578,786 — 11,578,786 Total $ 5,548,639 $ 7,989,686 $ 13,538,325 $ 20,967,556 $ 21,949,689 $ 42,917,245 Total Revenue by Timing of Recognition Goods transferred at a point in time $ — $ 7,824,102 $ 7,824,102 $ — $ 21,329,999 $ 21,329,999 Goods/services transferred over time 5,548,639 165,584 5,714,223 20,967,556 619,690 21,587,246 Total $ 5,548,639 $ 7,989,686 $ 13,538,325 $ 20,967,556 $ 21,949,689 $ 42,917,245 Total Revenue by Major Products/Services Technology development $ 5,548,639 $ — $ 5,548,639 $ 20,967,556 $ — $ 20,967,556 Optical test and measurement systems — 7,625,325 7,625,325 — 19,641,434 19,641,434 Optical components and sub-assemblies — — — — — — Other — 364,361 364,361 — 2,308,255 2,308,255 Total $ 5,548,639 $ 7,989,686 $ 13,538,325 $ 20,967,556 $ 21,949,689 $ 42,917,245

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Components of Inventory	Components of inventory are as follows: December 31, 2018 2017 Finished goods $ 1,339,832 $ 762,394 Work-in-process 643,420 288,165 Raw materials 4,890,490 3,584,222 $ 6,873,742 $ 4,634,781

Contract Balances (Tables)

Contract Balances (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Significant Changes in Contract Balances	The following table shows the significant changes in contract balances for the year ended December 31, 2018 : Contract Assets Contract Liabilities Opening Balance as of January 1, 2018 $ 1,987,841 $ 3,320,629 Revenue recognized that was included in the contract liabilities balance at the beginning of the period — (878,402 ) Transferred to payables from contract liabilities recognized at the beginning of the period — (2,078,640 ) Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period — 2,122,524 Transferred to receivables from contract assets recognized at the beginning of the period (1,679,363 ) — Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 2,450,837 — Balance as of December 31, 2018 $ 2,759,315 $ 2,486,111

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Summary of Debt Outstanding	The following table presents a summary of debt outstanding: December 31, 2018 2017 Silicon Valley Bank Term Loans $ 625,000 $ 2,458,333 Less: unamortized debt issuance costs 5,685 21,993 Less: current portion 619,315 1,833,333 Total long-term debt obligations $ — $ 603,007
Maturities on Long-term Debt	Maturities on outstanding debt are as follows: Year Amount 2019 $ 625,000 Total $ 625,000
Schedule of Interest Expense	Interest expense for the years ended December 31, 2018 and 2017 consisted of the following: Years ended December 31, 2018 2017 Interest expense on Term Loans $ 108,062 $ 201,696 Amortization of debt issuance costs 16,308 16,308 Other interest income (26 ) (652 ) Total interest expense $ 124,344 $ 217,352

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Components of Accounts Receivable, net	Accounts receivable, net consist of the following: December 31, 2018 2017 Billed $ 13,289,790 $ 6,189,625 Other 31,361 20,000 13,321,151 6,209,625 Less: allowance for doubtful accounts (284,083 ) (280,583 ) $ 13,037,068 $ 5,929,042

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and equipment, net, consists of the following: December 31, 2018 2017 Building $ 69,556 $ 69,556 Equipment 9,341,007 8,213,626 Furniture and fixtures 640,890 565,885 Software 1,122,231 1,122,231 Leasehold improvements 4,950,510 4,840,510 16,124,194 14,811,808 Less—accumulated depreciation (12,496,308 ) (11,957,167 ) $ 3,627,886 $ 2,854,641

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets, net consist of the following: December 31, Estimated Life 2018 2017 Patent costs 1 - 18 years $ 4,991,460 $ 4,658,198 Developed technology 5 years 2,600,000 1,400,000 In-process research and development N/A 200,000 — Customer base 7 years 100,000 — Trade names 3 years 150,000 — 8,041,460 6,058,198 Accumulated amortization (4,739,190 ) (4,330,808 ) $ 3,302,270 $ 1,727,390
Estimated Aggregate Amortization Based on Net Value of Intangible Assets	Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2018 , for each of the next five years and beyond is as follows: Year Ending December 31, 2019 $ 591,120 2020 558,156 2021 535,288 2022 480,219 2023 279,631 2023 and beyond 857,856 $ 3,302,270

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: December 31, 2018 2017 Accrued compensation $ 4,467,587 $ 5,274,005 Accrued professional fees 198,062 117,445 Accrued income tax 236,636 403,547 Deferred rent 146,542 144,740 Royalties 302,428 290,235 Accrued liabilities-other 404,752 317,258 Working capital payable 542,983 — Liability to related party 298,468 — Total accrued liabilities $ 6,597,458 $ 6,547,230

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Components of Income Tax Expense	Income tax expense/(benefit) from continuing operations consisted of the following for the periods indicated: Years ended December 31, 2018 2017 Current: Federal $ (44,727 ) $ (1,154,105 ) State 92,545 5,526 Deferred federal — — Deferred state — — Income tax expense/(benefit) $ 47,818 $ (1,148,579 )
Deferred Tax Assets and Liabilities	Deferred tax assets consist of the following components: December 31, 2018 December 31, 2017 Long-Term Long-Term Bad debt and inventory reserve $ 332,721 $ 226,358 Inventory adjustment (21,785 ) 405,242 UNICAP 2,804 32,579 Deferred revenue 115,676 84,669 Deferred rent 288,017 340,199 Depreciation and amortization (838,540 ) (1,238,458 ) Charitable contributions — 3,385 Net operating loss carryforwards- Luna 349,421 349,421 Net operating loss carryforwards- API 1,265,538 1,436,568 Net operating loss carryforwards - state 179,149 534,194 Net operating loss carryforwards- Canada 10,503 10,503 Research and development credits — 235,613 California manufacturing credit — 15,554 Accrued liabilities 394,118 504,472 Deferred compensation 216,944 223,607 Stock-based compensation 803,757 1,275,372 Restricted stock 60,681 — State bonus 44,861 — AMT credit — 581,467 Transaction costs 63,668 — Total 3,267,533 5,020,745 Valuation allowance (3,267,533 ) (5,020,745 ) Net deferred tax asset $ — $ —
Reconciliation of Income Tax Benefit (Expense)	The expense/(benefit) from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our loss from continuing operations before income taxes as follows for the periods indicated: Years ended December 31, 2018 2017 Income tax expense at federal statutory rate 21.00 % 34.00 % State taxes, net of federal tax effects — % (10.84 )% Change in tax rate from Tax Cuts and Jobs Act — % (79.17 )% Change in valuation allowance (27.65 )% 113.86 % Incentive stock options (1.05 )% (9.65 )% Provision to return adjustments 21.16 % 3.87 % Meals and entertainment 0.97 % (0.65 )% Capitalized merger costs — % — % AMT Carryover (9.83 )% — % Other permanent differences (0.88 )% (3.55 )% Income tax expense/(benefit) 3.72 % 47.87 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Activity of Stock Options	The following table sets forth the activity of the options to purchase common stock under the 2006 Plan and the 2016 Plan. The prices represent the closing price of our Common Stock on the Nasdaq Capital Market on the respective dates. Options Outstanding Options Exercisable Number of Price per Weighted Aggregate Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Balance at January 1, 2017 2,857,114 $0.61 - 6.83 $ 1.89 $ 107,063 2,367,630 $ 1.93 $ 101,071 Forfeited (178,665 ) $1.27 - 6.83 $ 2.24 Exercised (83,888 ) $0.82 - 1.40 $ 1.19 Granted 120,000 $1.51 - 2.40 $ 1.82 Balance at December 31, 2017 2,714,561 $0.61 - 6.55 $ 1.88 $ 2,098,195 2,590,030 $ 1.89 $ 2,013,034 Forfeited (675,607 ) $1.15 - 6.55 $ 1.90 Exercised (96,425 ) $0.65 - 2.46 $ 2.07 Granted 1,166,339 $2.67 - 3.53 $ 3.09 Balance at December 31, 2018 3,108,868 $0.61 - 6.55 $ 2.26 $ 3,669,794 1,986,740 $ 1.81 $ 3,314,494 (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.
Assumptions Used to Estimate Fair Value of Option Granted	The fair value of each option granted is estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions: Years ended December 31, 2018 2017 Risk-free interest rate range 3.0% 2.05% Expected life of option-years 7 6.5 Expected stock price volatility 67% 69% Expected dividend yield —% —%
Activity of Stock Option by Exercise Price Range	Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Life in Years Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price of Options Exercisable Year ended December 31, 2017 $0.61 - 6.55 2,714,561 4.23 $1.88 2,590,030 $1.89 Year ended December 31, 2018 $0.61 - 6.55 3,108,868 5.72 $2.26 1,986,740 $1.81 Total Intrinsic Value of Options Exercised Total Fair Value of Options Vested Year ended December 31, 2017 $ 62,549 $ 3,962,746 Year ended December 31, 2018 $ 112,213 $ 2,980,110
Activity of Restricted Stock	The following table summarizes our aggregate restricted stock awards and restricted stock unit activity in 2018 and 2017 : Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Value of Unvested Shares Balance at January 1, 2017 829,998 $1.19 $ 988,763 Granted 478,865 $1.63 $ 780,252 Vested (617,498 ) $1.23 $ (758,653 ) Forfeitures (201,667 ) $1.35 $ (272,017 ) Balance at December 31, 2017 489,698 $1.51 $ 738,345 Granted 296,287 $3.07 $ 909,600 Vested (312,365 ) $1.45 $ (454,339 ) Forfeitures (15,000 ) $1.41 $ (21,150 ) Balance at December 31, 2018 458,620 $2.56 $ 1,172,456
Activity of Restricted Stock Units	A summary of stock unit activity under the Deferred Compensation Plan for 2018 and 2017 is as follows. Number of Stock Units Weighted Average Grant Date Fair Value per Share Intrinsic Value Outstanding January 1, 2017 393,012 $1.37 Granted 73,690 $1.54 Vested — $1.15 Converted — $0.00 December 31, 2017 466,702 $1.40 $ 1,134,086 Granted 40,588 $2.99 Vested — $1.15 Converted — $0.00 December 31, 2018 507,290 $1.40 $1,699,422

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Rental Payments for Operating Leases	Minimum future payments, as of December 31, 2018 , under the aforementioned operating leases for each of the next five years and thereafter are: 2019 1,216,124 2020 1,117,684 2021 640,800 2022 544,704 2023 544,704 Thereafter 544,704 $ 4,608,720

Financial Information About S_2

Financial Information About Segments (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Information About Results of Operations for Each Segment	Years ended December 31, 2018 2017 Technology Development revenue $ 20,967,556 $ 18,576,383 Products and Licensing revenue 21,949,689 14,505,482 Total revenue 42,917,245 33,081,865 Technology Development operating income/(loss) 378,212 (120,417 ) Products and Licensing operating income/(loss) 499,323 (2,087,731 ) Total operating income/(loss) $ 877,535 $ (2,208,148 ) Depreciation, Technology Development $ 379,952 $ 359,626 Depreciation, Products and Licensing $ 273,185 $ 747,216 Amortization, Technology Development $ 130,765 $ 139,067 Amortization, Products and Licensing $ 418,349 $ 1,280,699
Segment Information	Additional segment information is as follows: December 31, 2018 2017 Total segment assets: Technology Development $ 34,823,525 $ 32,011,084 Products and Licensing 40,775,211 34,211,552 Total $ 75,598,736 $ 66,222,636 Property plant and equipment and intangible assets, Technology Development $ 2,103,711 $ 2,361,663 Property plant and equipment and intangible assets, Products and Licensing $ 4,927,453 $ 4,831,671

Quarterly Results (unaudited) (

Quarterly Results (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	The following table sets forth our unaudited historical revenues, operating loss and net (loss)/income by quarter during 2018 and 2017 . Quarter Ended (Dollars in thousands, except per share amounts) March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenues: Technology development $ 4,637 $ 5,466 $ 5,316 $ 5,549 $ 4,235 $ 4,602 $ 4,591 $ 5,549 Products and licensing 4,131 4,457 5,371 7,990 2,398 3,681 3,713 4,637 Total revenues 8,768 9,923 10,687 13,538 6,633 8,283 8,304 10,186 Gross margin 4,929 5,693 5,998 6,572 1,770 2,414 2,385 4,384 Operating income/(loss) (373 ) 205 581 423 (1,374 ) (237 ) (150 ) (61 ) Net income/(loss) from continuing operations (272 ) 299 1,293 (122 ) (1,254 ) (195 ) 194 257 Income/(loss) from discontinued operations net of income taxes 421 768 7,556 1,062 (102 ) (26 ) 15,563 749 Net (loss)/income 149 1,067 8,849 940 (1,356 ) (221 ) 15,757 1,006 Net (loss)/income attributable to common stockholders $ 84 $ 1,004 $ 8,785 $ 873 $ (1,390 ) $ (251 ) $ 15,723 $ 939 Net income/(loss) per share from continuing operations: Basic $ (0.01 ) $ 0.01 $ 0.05 $ — $ (0.05 ) $ (0.01 ) $ 0.01 $ 0.01 Diluted $ (0.01 ) $ 0.01 $ 0.04 $ — $ (0.05 ) $ (0.01 ) $ 0.01 $ 0.01 Net income/(loss) per share from discontinued operations: Basic $ 0.02 $ 0.03 $ 0.27 $ 0.04 $ — $ — $ 0.56 $ 0.03 Diluted $ 0.02 $ 0.02 $ 0.23 $ 0.04 $ — $ — $ 0.48 $ 0.02 Net income/(loss) attributable to common stockholders: Basic $ — $ 0.04 $ 0.31 $ 0.03 $ (0.05 ) $ (0.01 ) $ 0.57 $ 0.03 Diluted $ — $ 0.03 $ 0.27 $ 0.03 $ (0.05 ) $ (0.01 ) $ 0.48 $ 0.03 Weighted average shares: Basic 27,204,989 27,531,361 27,901,631 28,067,348 27,541,356 27,600,147 27,692,539 27,485,278 Diluted 27,204,989 31,506,745 33,055,881 28,067,348 27,541,356 27,600,147 32,714,389 31,790,418

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Key Components of Discontinued Operations	The following table presents a summary of the transactions related to the sales of Opto in the year ended December 31, 2018 and HSOR in the year ended December 31, 2017 : Year Ended December 31, 2018 2017 Sale price $ 17,500,000 $ 33,500,000 Less: transition services payments — (1,500,000 ) Adjusted purchase price 17,500,000 32,000,000 Assets held for sale (8,193,184 ) (16,851,540 ) Liabilities held for sale 989,453 2,330,052 Transaction costs (858,227 ) (895,186 ) Return of working capital 730,000 — Income tax expense (1,572,245 ) (912,298 ) Gain on sale of discontinued operations $ 8,595,797 $ 15,671,028 Assets and liabilities held for sale as of December 31, 2017 were as follows: December 31, 2017 Assets Current assets: Accounts receivable, net $ 1,940,125 Inventory 2,316,329 Prepaid expenses and other current assets 79,651 Total current assets 4,336,105 Property and equipment, net 599,102 Intangible assets, net 1,510,203 Goodwill 502,000 Other assets 16,028 Total non-current assets 2,627,333 Total assets held for sale $ 6,963,438 Liabilities Current liabilities: Accounts payable $ 851,785 Accrued liabilities 120,666 Deferred revenue — Total current liabilities 972,451 Long-term deferred rent — Total non-current liabilities — Total liabilities held for sale $ 972,451 The key components of income from discontinued operations were as follows: Year Ended December 31, 2018 2017 Net revenues $ 8,363,606 $ 19,511,646 Cost of revenues 5,294,268 12,994,656 Operating expenses 1,728,113 5,413,952 Other (income)/expenses (13,330 ) 31,758 Income before income taxes 1,354,555 1,071,280 Allocated tax expense 183,921 876,588 Operating income from discontinued operations 1,170,634 194,692 Gain on sale, net of related income taxes 8,595,797 15,671,028 Net income from discontinued operations $ 9,766,431 $ 15,865,720

Business Acquisitions (Tables)

Business Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Allocation of the Purchase Consideration	The following allocation of the purchase consideration is subject to revision as additional information becomes known in the future. Preliminary Allocation Accounts receivable $ 1,742,693 Inventory 1,435,606 Other current assets 69,951 Property and equipment 996,460 Identifiable intangible assets 1,650,000 Goodwill 101,008 Accounts payable and accrued expenses (450,985 ) Total purchase consideration $ 5,544,733
Schedule of Preliminary Identifiable Intangible Assets Acquired and their Estimated Lives	The preliminary identifiable intangible assets and their estimated useful lives were as follows: Estimated Estimated Fair Value Useful Life Developed technology $ 1,200,000 5.0 years In process research and development 200,000 7.0 years Trade names 150,000 3.0 years Customer base 100,000 7.0 years $ 1,650,000
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 acquisition of MOI had been completed on January 1, 2017. The pro forma information includes adjustments to depreciation expense for property and equipment acquired, to amortize expense for the intangible assets acquired, and to eliminate the acquisition transaction expenses recognized in each period. Transaction-related expenses associated with the acquisition and excluded from the pro forma income/(loss) from continuing operations were $0.8 million . The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations or the combined business had the acquisition of MOI actually occurred on January 1, 2017, or the results of future operations of the combined business. For instance, planned or expected operational synergies following the acquisition are not reflected in the pro forma information. Consequently, actual results will differ from the unaudited pro forma information presented below. Year ended December 31, 2018 2017 (unaudited) (unaudited) Revenue $ 49,494,358 $ 40,954,093 Income/(loss) from continuing operations $ 1,579,318 $ (2,778,487 )

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Millions	Jan. 01, 2018	May 08, 2015	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Significant Accounting Policies [Line Items]
Allowance for uncollectible receivables			$ (284,083)	$ (284,083)	$ (280,583)
Cash in excess of FDIC insured limits			4,000,000	4,000,000	11,500,000
Debt covenant, minimum cash balance			4,000,000	4,000,000
Research, development and engineering			1,252,663	$ 3,766,160	2,653,337
Common stock equivalents included for diluted per share data (in shares)				(4.9)
Effect of stock equivalents excluded from computation of earnings (in shares)				4.3
Advertising expense				$ 100,000	100,000
Right-of-use assets								$ 4,000,000
Lease liabilities								4,000,000
Technology Development
Significant Accounting Policies [Line Items]
Unfulfilled performance obligations			26,000,000	26,000,000
Technology Development | Scenario, Forecast
Significant Accounting Policies [Line Items]
Percentage of performance obligations expected to satisfy						9.00%	87.00%
Products and Licensing
Significant Accounting Policies [Line Items]
Unfulfilled performance obligations			$ 5,800,000	$ 5,800,000
Products and Licensing | Scenario, Forecast
Significant Accounting Policies [Line Items]
Percentage of performance obligations expected to satisfy						4.00%	95.00%
Accounting Standards Update 2014-09
Significant Accounting Policies [Line Items]
Cumulative adjustment to increase retained earnings	$ 400,000
Minimum
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life				1 year
Right-of-use assets								4,000,000
Minimum | Technology Development
Significant Accounting Policies [Line Items]
Duration of research contracts			6 months	6 months
Maximum
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life				11 years
Right-of-use assets								$ 5,000,000
Maximum | Technology Development
Significant Accounting Policies [Line Items]
Duration of research contracts			3 years	3 years
Prime Rate | Silicon Valley Bank | Term Loan
Significant Accounting Policies [Line Items]
Debt, additional interest above prime rate		2.00%		2.00%
U.S. Treasury Obligations
Significant Accounting Policies [Line Items]
Cash equivalents			$ 38,300,000	$ 38,300,000	$ 25,200,000

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2018
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	3 years
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	7 years
Software
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	3 years

Organization and Summary of S_6

Organization and Summary of Significant Accounting Policies - Effect on Balance Sheet Items (Details) - USD ($)	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Current assets held for sale	$ 0	$ 4,715,996	$ 4,336,105
Liabilities
Contract liabilities	2,486,111	3,320,629	3,320,629
Current liabilities held for sale	0	885,818	972,451
Stockholders’ equity:
Accumulated deficit	(21,305,222)	$ (32,052,161)	(32,406,189)
As Reported
Assets
Current assets held for sale			4,336,105
Liabilities
Contract liabilities			3,318,379
Current liabilities held for sale			862,205
Stockholders’ equity:
Accumulated deficit	(21,301,342)		(32,406,189)
Adjustments | Accounting Standards Update 2014-09
Assets
Current assets held for sale			379,891
Liabilities
Contract liabilities			2,250
Current liabilities held for sale			23,613
Stockholders’ equity:
Accumulated deficit	$ 3,880		$ 354,028

Organization and Summary of S_7

Organization and Summary of Significant Accounting Policies - Effect on Contract Assets and Liabilities (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 13,037,068	$ 5,929,042
Contract assets	2,422,495	1,778,142
Current assets held for sale		1,940,126
Long term contract assets	336,820	209,699
Accrued liabilities	6,597,458	6,547,230
Contract liabilities	2,486,111	3,318,379
Current liabilities held for sale		120,665
Deferred revenue		0
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	13,037,068	9,857,009
Contract assets	2,422,495	0
Current assets held for sale		0
Long term contract assets	336,820	0
Accrued liabilities	6,597,458	8,959,935
Contract liabilities	$ 2,482,231	0
Current liabilities held for sale		0
Deferred revenue		$ 1,026,339

Organization and Summary of S_8

Organization and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 13,538,325	$ 10,687,000	$ 9,923,000	$ 8,768,000	$ 10,186,000	$ 8,304,000	$ 8,283,000	$ 6,633,000	$ 42,917,245	$ 33,081,865
Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,548,639								20,967,556
Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	7,989,686								21,949,689
Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,548,639								20,967,556
Technology development | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,548,639								20,967,556
Technology development | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Optical test and measurement systems
Disaggregation of Revenue [Line Items]
Total revenues	7,625,325								19,641,434
Optical test and measurement systems | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Optical test and measurement systems | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	7,625,325								19,641,434
Optical components and sub-assemblies
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Optical components and sub-assemblies | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Optical components and sub-assemblies | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Other
Disaggregation of Revenue [Line Items]
Total revenues	364,361								2,308,255
Other | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Other | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	364,361								2,308,255
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	7,824,102								21,329,999
Goods transferred at a point in time | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Goods transferred at a point in time | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	7,824,102								21,329,999
Goods/services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues	5,714,223								21,587,246
Goods/services transferred over time | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,548,639								20,967,556
Goods/services transferred over time | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	165,584								619,690
Fixed-price contracts
Disaggregation of Revenue [Line Items]
Total revenues	10,766,698								31,338,459
Fixed-price contracts | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	2,777,012								9,388,770
Fixed-price contracts | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	7,989,686								21,949,689
Cost-type contracts
Disaggregation of Revenue [Line Items]
Total revenues	2,771,627								11,578,786
Cost-type contracts | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	2,771,627								11,578,786
Cost-type contracts | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Sales to the U.S. government
Disaggregation of Revenue [Line Items]
Total revenues	5,888,213								22,537,627
Sales to the U.S. government | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,418,679								20,703,338
Sales to the U.S. government | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	469,534								1,834,289
U.S. direct commercial sales and other
Disaggregation of Revenue [Line Items]
Total revenues	3,284,674								10,001,938
U.S. direct commercial sales and other | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	129,960								264,218
U.S. direct commercial sales and other | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	3,154,714								9,737,720
Foreign commercial sales & other
Disaggregation of Revenue [Line Items]
Total revenues	4,365,438								10,377,680
Foreign commercial sales & other | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Foreign commercial sales & other | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	4,365,438								10,377,680
United States
Disaggregation of Revenue [Line Items]
Total revenues	9,172,886								32,552,852
United States | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,548,639								20,967,556
United States | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	3,624,247								11,585,296
Asia
Disaggregation of Revenue [Line Items]
Total revenues	2,697,215								5,977,563
Asia | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Asia | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	2,697,215								5,977,563
Europe
Disaggregation of Revenue [Line Items]
Total revenues	1,331,145								3,873,161
Europe | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Europe | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	1,331,145								3,873,161
Canada, Central and South America
Disaggregation of Revenue [Line Items]
Total revenues	282,990								382,797
Canada, Central and South America | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
Canada, Central and South America | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	282,990								382,797
All Others
Disaggregation of Revenue [Line Items]
Total revenues	54,089								130,872
All Others | Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	0								0
All Others | Products and Licensing
Disaggregation of Revenue [Line Items]
Total revenues	$ 54,089								$ 130,872

Organization and Summary of S_9

Organization and Summary of Significant Accounting Policies - Consolidated Balance Sheet (Details) - USD ($)	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Long-term debt obligations	$ 0		$ 603,007
Current liabilities held for sale	0	$ 885,818	972,451
Non-current assets held for sale	0		2,627,333
Goodwill	101,008		0
Current assets:
Cash and cash equivalents	42,460,267		36,981,533	$ 12,802,458
Accounts receivable, net	13,037,068		5,929,042
Receivable from sale of HSOR business	2,500,000		4,000,976
Contract assets	2,422,495		1,778,142
Inventory	6,873,742		4,634,781
Prepaid expenses and other current assets	935,185		1,140,999
Total current assets	68,228,757		58,801,578
Long term contract assets	336,820		209,699
Property and equipment, net	3,627,886		2,854,641
Intangible assets, net	3,302,270		1,727,390
Other assets	1,995		1,995
Total assets	75,598,736		66,222,636
Current liabilities:
Current portion of long term debt obligations	619,315		1,833,333
Current portion of capital lease obligations	40,586		43,665
Accounts payable	2,395,984		2,111,077
Accrued liabilities	6,597,458		6,547,230
Contract liabilities	2,486,111		3,318,379
Total current liabilities	12,139,454		14,826,135
Long-term portion of deferred rent	1,035,974		1,184,438
Long-term capital lease obligations	68,978		71,275
Total liabilities	13,244,406		16,684,855
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2018 and 2017	1,322		1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,209,506 and 28,354,822 shares issued, 27,956,401 and 27,283,918 shares outstanding at December 31, 2018 and 2017, respectively	30,120		29,186
Treasury stock at cost, 1,253,105 and 1,070,904 shares at December 31, 2018 and 2017, respectively	(2,116,640)		(1,649,746)
Additional paid-in capital	85,744,750		83,563,208
Accumulated deficit	(21,305,222)	(32,052,161)	(32,406,189)
Total stockholders’ equity	62,354,330	$ 49,891,809	49,537,781	$ 35,089,688
Total liabilities and stockholders’ equity	$ 75,598,736		$ 66,222,636
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)	29,209,506		28,354,822
Common stock outstanding (in shares)	27,956,401		27,283,918
Treasury stock (in shares)	1,253,105		1,070,904
Balances without adoption of Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current liabilities held for sale			$ 862,205
Goodwill	$ 101,008
Current assets:
Cash and cash equivalents	42,460,267
Accounts receivable, net	13,037,068		9,857,009
Receivable from sale of HSOR business	2,500,000
Contract assets	2,422,495		0
Inventory	6,873,742
Prepaid expenses and other current assets	935,185
Total current assets	68,228,757
Long term contract assets	336,820		0
Property and equipment, net	3,627,886
Intangible assets, net	3,302,270
Other assets	1,995
Total assets	75,598,736
Current liabilities:
Current portion of long term debt obligations	619,315
Current portion of capital lease obligations	40,586
Accounts payable	2,395,984
Accrued liabilities	6,597,458		8,959,935
Contract liabilities	2,482,231		0
Total current liabilities	12,135,574
Long-term portion of deferred rent	1,035,974
Long-term capital lease obligations	68,978
Total liabilities	13,240,526
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2018 and 2017	1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,209,506 and 28,354,822 shares issued, 27,956,401 and 27,283,918 shares outstanding at December 31, 2018 and 2017, respectively	30,120
Treasury stock at cost, 1,253,105 and 1,070,904 shares at December 31, 2018 and 2017, respectively	(2,116,640)
Additional paid-in capital	85,744,750
Accumulated deficit	(21,301,342)		(32,406,189)
Total stockholders’ equity	62,358,210
Total liabilities and stockholders’ equity	75,598,736
Accounting Standards Update 2014-09 | Adjustments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Current liabilities held for sale			23,613
Goodwill	0
Current assets:
Cash and cash equivalents	0
Accounts receivable, net	0
Receivable from sale of HSOR business	0
Contract assets	0
Inventory	0
Prepaid expenses and other current assets	0
Total current assets	0
Long term contract assets	0
Property and equipment, net	0
Intangible assets, net	0
Other assets	0
Total assets	0
Current liabilities:
Current portion of long term debt obligations	0
Current portion of capital lease obligations	0
Accounts payable	0
Accrued liabilities	0
Contract liabilities	(3,880)
Total current liabilities	(3,880)
Long-term portion of deferred rent	0
Long-term capital lease obligations	0
Total liabilities	(3,880)
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2018 and 2017	0
Common stock, par value $0.001, 100,000,000 shares authorized, 29,209,506 and 28,354,822 shares issued, 27,956,401 and 27,283,918 shares outstanding at December 31, 2018 and 2017, respectively	0
Treasury stock at cost, 1,253,105 and 1,070,904 shares at December 31, 2018 and 2017, respectively	0
Additional paid-in capital	0
Accumulated deficit	3,880		$ 354,028
Total stockholders’ equity	3,880
Total liabilities and stockholders’ equity	$ 0

Organization and Summary of _10

Organization and Summary of Significant Accounting Policies - Consolidated Statement of Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 13,538,325	$ 10,687,000	$ 9,923,000	$ 8,768,000	$ 10,186,000	$ 8,304,000	$ 8,283,000	$ 6,633,000	$ 42,917,245	$ 33,081,865
Cost of revenues:
Total cost of revenues	6,966,047								23,479,345	19,712,835
Gross profit	6,572,278	5,998,000	5,693,000	4,929,000	4,384,000	2,385,000	2,414,000	1,770,000	19,437,900	13,369,030
Operating expense:
Selling, general and administrative	4,896,136								14,794,205	12,923,841
Research, development and engineering	1,252,663								3,766,160	2,653,337
Total operating expense	6,148,799								18,560,365	15,577,178
Operating income/(loss)	423,479	581,000	205,000	(373,000)	(61,000)	(150,000)	(237,000)	(1,374,000)	877,535	(2,208,148)
Other income/(expense):
Other expense	(1,070)								(17,143)	26,106
Investment income	198,525								549,580	0
Interest expense	(21,136)								(124,344)	(217,352)
Total other income/(expense)	176,319								408,093	(191,246)
Income/(loss) from continuing operations before income taxes	599,798								1,285,628	(2,399,394)
Income tax expense	722,148								47,818	(1,148,579)
Net income/(loss) from continuing operations	(122,350)	1,293,000	299,000	(272,000)	257,000	194,000	(195,000)	(1,254,000)	1,237,810	(1,250,815)
Balances without adoption of Topic 606
Revenues:
Total revenues	13,538,325								42,918,875
Cost of revenues:
Total cost of revenues	6,966,047								23,479,345
Gross profit	6,572,278								19,439,530
Operating expense:
Selling, general and administrative	4,896,136								14,794,205
Research, development and engineering	1,252,663								3,766,160
Total operating expense	6,148,799								18,560,365
Operating income/(loss)	423,479								879,165
Other income/(expense):
Other expense	(1,070)								(17,143)
Investment income	198,525								549,580
Interest expense	(21,136)								(124,344)
Total other income/(expense)	176,319								408,093
Income/(loss) from continuing operations before income taxes	599,798								1,287,258
Income tax expense	722,148								47,818
Net income/(loss) from continuing operations	(122,350)								1,239,440
Accounting Standards Update 2014-09 | Adjustments
Revenues:
Total revenues	0								1,630
Cost of revenues:
Total cost of revenues	0								0
Gross profit	0								1,630
Operating expense:
Selling, general and administrative	0								0
Research, development and engineering	0								0
Total operating expense	0								0
Operating income/(loss)	0								1,630
Other income/(expense):
Other expense	0								0
Investment income	0								0
Interest expense	0								0
Total other income/(expense)	0								0
Income/(loss) from continuing operations before income taxes	0								1,630
Income tax expense	0								0
Net income/(loss) from continuing operations	0								1,630
Technology development
Revenues:
Total revenues	5,548,639	5,316,000	5,466,000	4,637,000	5,549,000	4,591,000	4,602,000	4,235,000	20,967,556	18,576,383
Cost of revenues:
Total cost of revenues	4,268,509								15,400,475	13,988,378
Technology development | Balances without adoption of Topic 606
Revenues:
Total revenues	5,548,639								20,967,556
Cost of revenues:
Total cost of revenues	4,268,509								15,400,475
Technology development | Accounting Standards Update 2014-09 | Adjustments
Revenues:
Total revenues	0								0
Cost of revenues:
Total cost of revenues	0								0
Products and licensing
Revenues:
Total revenues	7,989,686	$ 5,371,000	$ 4,457,000	$ 4,131,000	$ 4,637,000	$ 3,713,000	$ 3,681,000	$ 2,398,000	21,949,689	14,505,482
Cost of revenues:
Total cost of revenues	2,697,538								8,078,870	$ 5,724,457
Products and licensing | Balances without adoption of Topic 606
Revenues:
Total revenues	7,989,686								21,951,319
Cost of revenues:
Total cost of revenues	2,697,538								8,078,870
Products and licensing | Accounting Standards Update 2014-09 | Adjustments
Revenues:
Total revenues	0								1,630
Cost of revenues:
Total cost of revenues	$ 0								$ 0

Inventory (Details)

Inventory (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 1,339,832	$ 762,394
Work-in-process	643,420	288,165
Raw materials	4,890,490	3,584,222
Total Inventory	$ 6,873,742	$ 4,634,781

Contract Balances (Details)

Contract Balances (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
Contract Assets
Opening Balance as of January 1, 2018	$ 1,987,841
Transferred to receivables from contract assets recognized at the beginning of the period	(1,679,363)
Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	2,450,837
Balance as of December 31, 2018	2,759,315
Contract Liabilities
Opening Balance as of January 1, 2018	3,320,629
Revenue recognized that was included in the contract liabilities balance at the beginning of the period	(878,402)
Transferred to payables from contract liabilities recognized at the beginning of the period	(2,078,640)
Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period	2,122,524
Balance as of December 31, 2018	$ 2,486,111

Debt - Additional Information (

Debt - Additional Information (Details)	May 08, 2015USD ($)installment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2015USD ($)	May 01, 2015USD ($)
Debt Instrument [Line Items]
Long-term debt obligation		$ 625,000	$ 2,458,333
Current portion of long term debt obligations		619,315	1,833,333
Debt issuance costs		5,685	21,993
Amortization of debt issuance costs		16,308	16,308
Silicon Valley Bank | Term Loan
Debt Instrument [Line Items]
Debt, face amount	$ 6,000,000
Debt, number of monthly payment | installment	48
Early termination fee, percentage	2.00%
Long-term debt obligation		$ 600,000	$ 2,500,000
Effective interest rate		7.00%
Debt issuance costs					$ 55,000
Silicon Valley Bank | Term Loan | Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate	2.00%	2.00%
Silicon Valley Bank | Term Loan | Sixth Loan Modification Agreement
Debt Instrument [Line Items]
Monthly installments	$ 125,000
Silicon Valley Bank | Term Loan | Seventh Loan Modification Agreement
Debt Instrument [Line Items]
Debt, face amount				$ 1,000,000
Debt covenant, minimum cash balance				$ 4,000,000
Percentage of accounts receivable				60.00%
Outstanding principal balance multiplier				1.5

Debt - Summary of Debt Outstand

Debt - Summary of Debt Outstanding (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Silicon Valley Bank Term Loans	$ 625,000	$ 2,458,333
Less: unamortized debt issuance costs	5,685	21,993
Less: current portion	619,315	1,833,333
Total long-term debt obligations	$ 0	$ 603,007

Debt - Maturities on Long Term

Debt - Maturities on Long Term Debt (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2019	$ 625,000
Total	$ 625,000	$ 2,458,333

Debt - Interest Expense (Detail

Debt - Interest Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Interest expense on Term Loans	$ 108,062	$ 201,696
Amortization of debt issuance costs	16,308	16,308
Other interest income	(26)	(652)
Total interest expense	$ 124,344	$ 217,352

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Billed	$ 13,289,790	$ 6,189,625
Other	31,361	20,000
Accounts receivable, gross	13,321,151	6,209,625
Less: allowance for doubtful accounts	(284,083)	(280,583)
Accounts receivable, net	$ 13,037,068	$ 5,929,042

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment, Net (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Building	$ 69,556	$ 69,556
Equipment	9,341,007	8,213,626
Furniture and fixtures	640,890	565,885
Software	1,122,231	1,122,231
Leasehold improvements	4,950,510	4,840,510
Property, plant and equipment, gross, total	16,124,194	14,811,808
Less—accumulated depreciation	(12,496,308)	(11,957,167)
Property and equipment, net	$ 3,627,886	$ 2,854,641

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.5	$ 0.7

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 8,041,460	$ 6,058,198
Accumulated amortization	(4,739,190)	(4,330,808)
Intangible assets, net	3,302,270	1,727,390
In process research and development
Finite-Lived Intangible Assets [Line Items]
In-process research and development	200,000	0
Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	$ 4,991,460	4,658,198
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	5 years
Finite lived intangible assets gross	$ 2,600,000	1,400,000
Customer base
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	7 years
Finite lived intangible assets gross	$ 100,000	0
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	3 years
Finite lived intangible assets gross	$ 150,000	$ 0
Minimum
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	1 year
Minimum | Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	11 years
Maximum | Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	18 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.4	$ 0.5

Intangible Assets - Estimated A

Intangible Assets - Estimated Aggregate Amortization (Details)	Dec. 31, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 591,120
2020	558,156
2021	535,288
2022	480,219
2023	279,631
2023 and beyond	857,856
Finite lived intangible assets, net	$ 3,302,270

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation	$ 4,467,587	$ 5,274,005
Accrued professional fees	198,062	117,445
Accrued income tax	236,636	403,547
Deferred rent	146,542	144,740
Royalties	302,428	290,235
Accrued liabilities-other	404,752	317,258
Working capital payable	542,983	0
Liability to related party	298,468	0
Total accrued liabilities	$ 6,597,458	$ 6,547,230

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal		$ (44,727)	$ (1,154,105)
State		92,545	5,526
Deferred federal		0	0
Deferred state		0	0
Income tax expense/(benefit)	$ 722,148	$ 47,818	$ (1,148,579)

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred Income Tax Assets And Liabilities [Line Items]
Bad debt and inventory reserve	$ 332,721	$ 226,358
Inventory adjustment	(21,785)
Inventory adjustment		405,242
UNICAP	2,804	32,579
Deferred revenue	115,676	84,669
Deferred rent	288,017	340,199
Depreciation and amortization	(838,540)	(1,238,458)
Charitable contributions	0	3,385
Research and development credits	0	235,613
California manufacturing credit	0	15,554
Accrued liabilities	394,118	504,472
Deferred compensation	216,944	223,607
Stock-based compensation	803,757	1,275,372
Restricted stock	60,681	0
State bonus	44,861	0
AMT credit	0	581,467
Transaction costs	63,668	0
Total, long-term	3,267,533	5,020,745
Valuation allowance, long-term	(3,267,533)	(5,020,745)
Net deferred tax asset, long-term	0	0
Net operating loss carryforwards - state
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	179,149	534,194
Net operating loss carryforwards- Canada
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	10,503	10,503
Net operating loss carryforwards- Luna
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	349,421	349,421
Net operating loss carryforwards- API
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	$ 1,265,538	$ 1,436,568

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Benefit (Expense) (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense at federal statutory rate	21.00%	34.00%
State taxes, net of federal tax effects	0.00%	(10.84%)
Change in tax rate from Tax Cuts and Jobs Act	0.00%	(79.17%)
Change in valuation allowance	(27.65%)	113.86%
Incentive stock options	(1.05%)	(9.65%)
Provision to return adjustments	21.16%	3.87%
Meals and entertainment	0.97%	(0.65%)
Capitalized merger costs	0.00%	0.00%
AMT Carryover	(9.83%)	0.00%
Other permanent differences	(0.88%)	(3.55%)
Income tax expense/(benefit)	3.72%	47.87%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	Dec. 22, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Line Items]
Research and development credits		$ 0	$ 235,613
Unrecognized tax benefits net increases (decreases) resulting from current period tax positions		0
Reduction in deferred tax asset due to Tax Act	$ 1,900,000
Reduction in valuation allowance	$ 1,900,000
AMT credit		0	$ 581,467
Tax benefit realized in recovery of AMT credit from prior periods		700,000
Luna
Income Taxes [Line Items]
Net operating loss carryforwards		0
API
Income Taxes [Line Items]
Net operating loss carryforwards		$ 6,000,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)	1 Months Ended		12 Months Ended		13 Months Ended
	Apr. 30, 2016shares	Jan. 31, 2010USD ($)shares	Dec. 31, 2018USD ($)installment$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	May 31, 2017shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock based compensation expense | $			$ 600,000	$ 700,000
Stock-based compensation expense expected to be recognized | $			$ 900,000	$ 900,000
Purchase of treasury stock (in shares)			565,629	433,179	205,500
Carilion Clinic
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Senior convertible Promissory Notes principal amount converted | $		$ 5,000,000
Accrued interest converted | $		$ 1,200,000
Percentage of dividend payable on series A convertible preferred stock		6.00%
Preferred stock liquidation preference value | $		$ 6,200,000
Shares of common stock dividends (in shares)			710,985
Carilion Clinic | Series A Convertible Preferred Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Preferred stock issued in exchange of notes payable (in shares)		1,321,514
Stock Options
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period			4 years
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares			$ 2.07	$ 1.18
Weighted average remaining service period related to compensation recognition			3 years 7 months 12 days
Unamortized stock option expense to be recognized | $			$ 2,200,000
Stock Options | Carilion Clinic
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Conversion of stock, ratio		1
Restricted Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares issued (in shares)			280,000	349,000
Share-based compensation vesting installments | installment			3
Shares vested (in shares)			182,500	530,542
Restricted Stock and Restricted Stock Units
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Weighted average remaining service period related to compensation recognition			2 years
Shares issued (in shares)			296,287	478,865
Shares vested (in shares)			312,365	617,498
Unamortized restricted stock and restricted stock units expense to be recognized | $			$ 1,000,000
Restricted Stock Units (RSUs) | Member of Board of Directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares issued (in shares)			16,286	129,865
Shares vested (in shares)			129,865	86,956
2016 Equity Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares available for future grant (in shares)	3,500,000
Stock option contractual term	10 years

Stockholders' Equity - Activity

Stockholders' Equity - Activity of Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Options Outstanding, Number of Shares
Beginning Balance (in shares)	2,714,561	2,857,114
Forfeited (in shares)	(675,607)	(178,665)
Exercised (in shares)	(96,425)	(83,888)
Granted (in shares)	1,166,339	120,000
Ending Balance (in shares)	3,108,868	2,714,561
Options Outstanding, Price per Share Range
Beginning Balance, lower limit (in dollars per share)	$ 0.61	$ 0.61
Beginning Balance, upper limit (in dollars per share)	6.55	6.83
Forfeited, lower limit (in dollars per share)	1.15	1.27
Forfeited, upper limit (in dollars per share)	6.55	6.83
Exercised, lower limit (in dollars per share)	0.65	0.82
Exercised, upper limit (in dollars per share)	2.46	1.40
Granted, lower limit (in dollars per share)	2.67	1.51
Granted, upper limit (in dollars per share)	3.53	2.40
Ending Balance, lower limit (in dollars per share)	0.61	0.61
Ending Balance, upper limit (in dollars per share)	6.55	6.55
Options Outstanding, Weighted Average Exercise Price
Beginning balance (in dollars per share)	1.88	1.89
Forfeited (in dollars per share)	1.90	2.24
Exercised (in dollars per share)	2.07	1.19
Granted (in dollars per share)	3.09	1.82
Ending balance (in dollars per share)	$ 2.26	$ 1.88
Options Outstanding, Aggregate Intrinsic Value beginning balance (in shares)	$ 2,098,195	$ 107,063
Options Outstanding, Aggregate Intrinsic Value ending balance (in shares)	$ 3,669,794	$ 2,098,195
Options Exercisable, beginning balance (in shares)	2,590,030	2,367,630
Options Exercisable, ending balance (in shares)	1,986,740	2,590,030
Options Exercisable, Weighted Average Exercise Price, beginning balance (in dollars per share)	$ 1.89	$ 1.93
Options Exercisable, Weighted Average Exercise Price, ending balance (in dollars per share)	$ 1.81	$ 1.89
Options Exercisable, Aggregate Intrinsic Value, beginning balance	$ 2,013,034	$ 101,071
Options Exercisable, Aggregate Intrinsic Value, ending balance	$ 3,314,494	$ 2,013,034

Stockholders' Equity - Assumpti

Stockholders' Equity - Assumptions Used to Estimate Fair Value of Options Granted (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Risk-free interest rate range	3.00%	2.05%
Expected life of option-years	7 years	6 years 6 months
Expected stock price volatility	67.00%	69.00%
Expected dividend yield	0.00%	0.00%

Stockholders' Equity - Activi_2

Stockholders' Equity - Activity of Stock Option by Exercise Price Range (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range (in dollars per share)	$ 0.61	$ 0.61
Range of Exercise Prices, upper range (in dollars per share)	$ 6.55	$ 6.55
Options Outstanding (in shares)	3,108,868	2,714,561	2,857,114
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.26	$ 1.88	$ 1.89
Options Exercisable (in shares)	1,986,740	2,590,030	2,367,630
Weighted Average Exercise Price of Options Exercisable (in dollars per share)	$ 1.81	$ 1.89	$ 1.93
Total Intrinsic Value of Options Exercised	$ 112,213	$ 62,549
Total Fair Value of Options Vested	$ 2,980,110	$ 3,962,746
$0.61 - 6.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares)		2,714,561
Options Outstanding, Weighted Average Remaining Life in Years		4 years 2 months 23 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)		$ 1.88
Options Exercisable (in shares)		2,590,030
Weighted Average Exercise Price of Options Exercisable (in dollars per share)		$ 1.89
$0.61 - 6.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares)	3,108,868
Options Outstanding, Weighted Average Remaining Life in Years	5 years 8 months 20 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 2.26
Options Exercisable (in shares)	1,986,740
Weighted Average Exercise Price of Options Exercisable (in dollars per share)	$ 1.81

Stockholders' Equity - Activi_3

Stockholders' Equity - Activity of Restricted Stock Issuances (Details) - Restricted Stock and Restricted Stock Units - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Unvested Shares
Beginning balance (in shares)	489,698	829,998
Granted (in shares)	296,287	478,865
Vested (in shares)	(312,365)	(617,498)
Forfeitures (in shares)	(15,000)	(201,667)
Ending balance (in shares)	458,620	489,698
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 1.51	$ 1.19
Granted (in dollars per share)	3.07	1.63
Vested (in dollars per share)	1.45	1.23
Forfeitures (in dollars per share)	1.41	1.35
Ending balance (in dollars per share)	$ 2.56	$ 1.51
Aggregate Value of Unvested Shares
Beginning balance	$ 738,345	$ 988,763
Granted	909,600	780,252
Vested	(454,339)	(758,653)
Forfeitures	(21,150)	(272,017)
Ending balance	$ 1,172,456	$ 738,345

Stockholders' Equity - Activi_4

Stockholders' Equity - Activity of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - Deferred Compensation Plan - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Stock Units
Beginning balance (in shares)	466,702	393,012
Granted (in shares)	40,588	73,690
Vested (in shares)	0	0
Converted (in shares)	0	0
Ending balance (in shares)	507,290	466,702
Weighted Average Grant Date Fair Value per Share
Beginning balance (in dollars per share)	$ 1.40	$ 1.37
Granted (in dollars per share)	2.99	1.54
Vested (in dollars per share)	1.15	1.15
Converted (in dollars per share)	0	0
Ending balance (in dollars per share)	$ 1.40	$ 1.40
Intrinsic value, outstanding	$ 1,699,422	$ 1,134,086

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program (Details) - USD ($)	12 Months Ended			13 Months Ended	16 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	May 31, 2017	Dec. 31, 2018	Sep. 30, 2017	May 31, 2016
Equity [Abstract]
Authorized share repurchase amount						$ 2,000,000	$ 2,000,000
Purchase of treasury stock (in shares)	565,629		433,179	205,500
Amount of stock repurchased		$ 466,894	$ 1,131,759	$ 200,000	$ 1,100,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended			9 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)purchase_order	Mar. 31, 2018USD ($)purchase_order	Dec. 31, 2017USD ($)purchase_order	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Line Items]
Number of non-cancelable purchase orders executed | purchase_order	1	1	1
Minimum royalty payable					$ 0.4
Selling, General and Administrative Expenses
Commitments and Contingencies Disclosure [Line Items]
Lease and rental expense					1	$ 1.1
Tunable Lasers
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase order commitment	$ 0.7	$ 1.1	$ 0.5	$ 0.7		$ 0.5
Non-cancelable purchase order delivery period (in months)				18 months
Non-cancelable purchase order commitment remained					$ 0.8

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 1,216,124
2020	1,117,684
2021	640,800
2022	544,704
2023	544,704
Thereafter	544,704
Future minimum payments due, total	$ 4,608,720

Employee Profit Sharing Plan (D

Employee Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Percentage of employer's matching contributions to a defined contribution plan that vests	25.00%
Percentage of employees' gross pay for which employer contributes a matching contribution	10.00%
Contribution to employee compensation plan by employer	$ 0.3	$ 0.3

Litigation and Other Continge_2

Litigation and Other Contingencies (Details) - USD ($)	Jul. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Aug. 31, 2017	Aug. 09, 2017
Loss Contingencies [Line Items]
Accounts receivable, net		$ 13,037,068	$ 5,929,042
HSOR | Disposed of by Sale
Loss Contingencies [Line Items]
Placed into escrow					$ 4,000,000
HSOR | Disposed of by Sale | Macom Technology Solutions, Inc.
Loss Contingencies [Line Items]
Placed into escrow		2,500,000		$ 4,000,000
Amount of the escrow balance received		1,500,000
Opto | Disposed of by Sale
Loss Contingencies [Line Items]
Contingent consideration	$ 1,000,000
Asset purchase agreement duration following sale	18 months
Customer Concentration Risk | Macom Technology Solutions, Inc.
Loss Contingencies [Line Items]
Accounts receivable, net		$ 2,100,000

Relationship with Major Custo_2

Relationship with Major Customers (Details) - United States Government	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Consolidated Revenues
Concentration Risk [Line Items]
Concentration percentage	53.00%	48.00%
Billed Trade Receivables
Concentration Risk [Line Items]
Concentration percentage	23.00%	20.00%

Financial Information About S_3

Financial Information About Segments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)
Concentration Risk [Line Items]
Number of operating segments | segment	2
Depreciation	$ 500,000	$ 700,000
Amortization	400,000	500,000
Products and Licensing
Concentration Risk [Line Items]
Depreciation	273,185	747,216
Amortization	418,349	1,280,699
Assets held for sale		7,000,000
Products and Licensing | Discontinued Operations
Concentration Risk [Line Items]
Depreciation	100,000	400,000
Amortization	$ 100,000	$ 900,000
Revenues | Geographic Concentration Risk | Outside of the United States
Concentration Risk [Line Items]
Percentage of total revenues by customer	24.00%	19.00%

Financial Information About S_4

Financial Information About Segments - Information About Results of Operations for Each Segment (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 13,538,325	$ 10,687,000	$ 9,923,000	$ 8,768,000	$ 10,186,000	$ 8,304,000	$ 8,283,000	$ 6,633,000	$ 42,917,245	$ 33,081,865
Operating loss	423,479	581,000	205,000	(373,000)	(61,000)	(150,000)	(237,000)	(1,374,000)	877,535	(2,208,148)
Depreciation									500,000	700,000
Amortization									400,000	500,000
Technology Development
Segment Reporting Information [Line Items]
Total revenues	5,548,639								20,967,556
Operating loss									378,212	(120,417)
Depreciation									379,952	359,626
Amortization									130,765	139,067
Products and Licensing
Segment Reporting Information [Line Items]
Total revenues	7,989,686								21,949,689
Operating loss									499,323	(2,087,731)
Depreciation									273,185	747,216
Amortization									418,349	1,280,699
Technology development
Segment Reporting Information [Line Items]
Total revenues	5,548,639	5,316,000	5,466,000	4,637,000	5,549,000	4,591,000	4,602,000	4,235,000	20,967,556	18,576,383
Products and licensing
Segment Reporting Information [Line Items]
Total revenues	$ 7,989,686	$ 5,371,000	$ 4,457,000	$ 4,131,000	$ 4,637,000	$ 3,713,000	$ 3,681,000	$ 2,398,000	$ 21,949,689	$ 14,505,482

Financial Information About S_5

Financial Information About Segments - Segment Information (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 75,598,736	$ 66,222,636
Property plant and equipment, and intangible assets	3,627,886	2,854,641
Technology Development
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	34,823,525	32,011,084
Property plant and equipment, and intangible assets	2,103,711	2,361,663
Products and Licensing
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	40,775,211	34,211,552
Property plant and equipment, and intangible assets	$ 4,927,453	$ 4,831,671

Quarterly Results (unaudited)_2

Quarterly Results (unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 13,538,325	$ 10,687,000	$ 9,923,000	$ 8,768,000	$ 10,186,000	$ 8,304,000	$ 8,283,000	$ 6,633,000	$ 42,917,245		$ 33,081,865
Gross margin	6,572,278	5,998,000	5,693,000	4,929,000	4,384,000	2,385,000	2,414,000	1,770,000	19,437,900		13,369,030
Operating income/(loss)	423,479	581,000	205,000	(373,000)	(61,000)	(150,000)	(237,000)	(1,374,000)	877,535		(2,208,148)
Net income/(loss) from continuing operations	(122,350)	1,293,000	299,000	(272,000)	257,000	194,000	(195,000)	(1,254,000)	1,237,810		(1,250,815)
Income/(loss) from discontinued operations net of income taxes	1,062,000	7,556,000	768,000	421,000	749,000	15,563,000	(26,000)	(102,000)	9,766,431		15,865,720
Net income	940,000	8,849,000	1,067,000	149,000	1,006,000	15,757,000	(221,000)	(1,356,000)	11,004,241	$ 11,004,241	14,614,905
Net (loss)/income attributable to common stockholders	$ 873,000	$ 8,785,000	$ 1,004,000	$ 84,000	$ 939,000	$ 15,723,000	$ (251,000)	$ (1,390,000)	$ 10,746,939		$ 14,468,016
Net income/(loss) per share from continuing operations:
Basic (in dollars per share)	$ 0	$ 0.05	$ 0.01	$ (0.01)	$ 0.01	$ 0.01	$ (0.01)	$ (0.05)	$ 0.04		$ (0.05)
Diluted (in dollars per share)	0	0.04	0.01	(0.01)	0.01	0.01	(0.01)	(0.05)	0.04		(0.05)
Net income/(loss) per share from discontinued operations:
Basic (in dollars per share)	0.04	0.27	0.03	0.02	0.03	0.56	0	0	0.35		0.58
Diluted (in dollars per share)	0.04	0.23	0.02	0.02	0.02	0.48	0	0	0.30		0.58
Net income/(loss) attributable to common stockholders:
Basic (in dollars per share)	0.03	0.31	0.04	0	0.03	0.57	(0.01)	(0.05)	0.39		0.52
Diluted (in dollars per share)	$ 0.03	$ 0.27	$ 0.03	$ 0	$ 0.03	$ 0.48	$ (0.01)	$ (0.05)	$ 0.33		$ 0.52
Weighted average shares:
Basic (in shares)	28,067,348	27,901,631	27,531,361	27,204,989	27,485,278	27,692,539	27,600,147	27,541,356	27,596,401		27,579,988
Diluted (in shares)	28,067,348	33,055,881	31,506,745	27,204,989	31,790,418	32,714,389	27,600,147	27,541,356	32,452,228		27,579,988
Products and licensing
Revenues:
Total revenues	$ 7,989,686	$ 5,371,000	$ 4,457,000	$ 4,131,000	$ 4,637,000	$ 3,713,000	$ 3,681,000	$ 2,398,000	$ 21,949,689		$ 14,505,482
Technology development
Revenues:
Total revenues	$ 5,548,639	$ 5,316,000	$ 5,466,000	$ 4,637,000	$ 5,549,000	$ 4,591,000	$ 4,602,000	$ 4,235,000	$ 20,967,556		$ 18,576,383

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Details)	Jul. 31, 2018USD ($)	Aug. 09, 2017USD ($)employee	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture			$ 15,799,529	$ 28,026,528
Depreciation and amortization from discontinued operations			200,000	1,300,000
Acquisition of property, plant and equipment for discontinued operations			100,000	100,000
Intangible property costs			10,000	100,000
Gain on sale of discontinued operations			(8,595,797)	(15,671,028)
HSOR
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture				28,000,000
HSOR | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase price		$ 33,500,000	17,500,000	33,500,000
Proceeds from divestiture		29,500,000
Placed into escrow		$ 4,000,000
Employees hired by purchaser | employee		49
Monthly payment for transition services		$ 300,000
Transition period		5 months
Total transition cost		$ 1,500,000	0	1,500,000
Initial purchase price			17,500,000	32,000,000
Gain on sale of discontinued operations			(8,595,797)	$ (15,671,028)
HSOR | Revenues | Product Concentration Risk | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration percentage				16.10%
HSOR | Cost of Revenues | Product Concentration Risk | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration percentage				18.50%
Opto
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture			$ 16,000,000
Opto | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture	$ 17,500,000
Initial purchase price	18,500,000
Contingent consideration	$ 1,000,000

Discontinued Operations - Summa

Discontinued Operations - Summary of Transactions Related to Sale (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Aug. 09, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense	$ (1,572,244)	$ (912,298)
Gain on sale, net of related income taxes	8,595,797	15,671,028
HSOR | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	17,500,000	33,500,000	$ 33,500,000
Less: transition services payments	0	(1,500,000)	$ (1,500,000)
Adjusted purchase price	17,500,000	32,000,000
Assets held for sale	(8,193,184)	(16,851,540)
Liabilities held for sale	989,453	2,330,052
Transaction costs	(858,227)	(895,186)
Return of working capital	730,000	0
Income tax expense	(1,572,245)	(912,298)
Gain on sale, net of related income taxes	$ 8,595,797	$ 15,671,028

Discontinued Operations - Asset

Discontinued Operations - Assets and Liabilities Held For Sale (Details) - USD ($)	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Current assets:
Total current assets	$ 0	$ 4,715,996	$ 4,336,105
Total non-current assets	0		2,627,333
Current liabilities:
Total current liabilities	$ 0	$ 885,818	972,451
Held-for-sale
Current assets:
Accounts receivable, net			1,940,125
Inventory			2,316,329
Prepaid expenses and other current assets			79,651
Total current assets			4,336,105
Property and equipment, net			599,102
Intangible assets, net			1,510,203
Goodwill			502,000
Other assets			16,028
Total non-current assets			2,627,333
Total assets held for sale			6,963,438
Current liabilities:
Accounts payable			851,785
Accrued liabilities			120,666
Deferred revenue			0
Total current liabilities			972,451
Long-term deferred rent			0
Total non-current liabilities			0
Total liabilities held for sale			$ 972,451

Discontinued Operations - Compo

Discontinued Operations - Components of Income from Discontinued Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]
Net revenues									$ 8,363,606	$ 19,511,646
Cost of revenues									5,294,268	12,994,656
Operating expenses									1,728,113	5,413,952
Other (income)/expenses									(13,330)	31,758
Income before income taxes									1,354,555	1,071,280
Allocated tax expense									183,921	876,588
Operating income from discontinued operations									1,170,634	194,692
Gain on sale, net of related income taxes									8,595,797	15,671,028
Net income from discontinued operations	$ 1,062,000	$ 7,556,000	$ 768,000	$ 421,000	$ 749,000	$ 15,563,000	$ (26,000)	$ (102,000)	$ 9,766,431	$ 15,865,720

Business Acquisitions - Additio

Business Acquisitions - Additional Information (Details) - USD ($)	Mar. 01, 2019	Oct. 15, 2018	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Cash payments for acquisition, net of cash acquired				$ 5,001,750	$ 0
Micron Optics, Inc.
Business Acquisition [Line Items]
Cash payments for acquisition, net of cash acquired		$ 5,500,000	$ 5,000,000
Accrued liability for consideration transferred			500,000
Acquisition costs			800,000	$ 800,000
Income recognized since acquisition			2,600,000
Revenue recognized since acquisition			$ 1,100,000
Micron Optics, Inc. | Developed technology
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets		24.50%
Micron Optics, Inc. | In process research and development
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets		29.50%
Micron Optics, Inc. | Customer base
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets		24.50%
Micron Optics, Inc. | Trade names
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets		17.00%
Subsequent Event | General Photonics, Inc.
Business Acquisition [Line Items]
Cash consideration to purchase business	$ 19,000,000
Cash paid at closing	17,100,000
Remaining purchase price placed in escrow	1,900,000
Contingent consideration	$ 1,000,000

Business Acquisitions - Allocat

Business Acquisitions - Allocation of Purchase Consideration (Details) - USD ($)	Dec. 31, 2018	Oct. 15, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 101,008		$ 0
Micron Optics, Inc.
Business Acquisition [Line Items]
Accounts receivable		$ 1,742,693
Inventory		1,435,606
Other current assets		69,951
Property and equipment		996,460
Identifiable intangible assets		1,650,000
Goodwill		101,008
Accounts payable and accrued expenses		(450,985)
Total purchase consideration		$ 5,544,733

Business Acquisitions - Prelimi

Business Acquisitions - Preliminary Identifiable Intangible Assets Acquired and their Estimated Lives (Details) - Micron Optics, Inc.	Oct. 15, 2018USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 1,650,000
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 1,200,000
Estimated useful life	5 years 12 days
In process research and development
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 200,000
Estimated useful life	7 years 12 days
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 150,000
Estimated useful life	3 years 12 days
Customer base
Acquired Finite-Lived Intangible Assets [Line Items]
Identifiable intangible assets	$ 100,000
Estimated useful life	7 years 12 days

Business Acquisitions - Pro For

Business Acquisitions - Pro Forma Consolidated Results of Operations (Details) - Micron Optics, Inc. - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Revenue	$ 49,494,358	$ 40,954,093
Income/(loss) from continuing operations	$ 1,579,318	$ (2,778,487)

Valuation and Qualifying Acco_2

Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	$ 5,307,461	$ 21,556,785
Additions	3,500	99,888
Deductions	(1,759,345)	(16,349,212)
Balance at end of period	3,551,616	5,307,461
Deferred tax valuation allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	5,020,744	21,309,546
Additions	0	0
Deductions	(1,753,211)	(16,288,802)
Balance at end of period	3,267,533	5,020,744
Allowances for doubtful accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	286,717	247,239
Additions	3,500	99,888
Deductions	(6,134)	(60,410)
Balance at end of period	$ 284,083	$ 286,717