Luna Innovations (LUNA) 10-K 14 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Mar. 11, 2022	Jun. 30, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-52008
Entity Registrant Name	LUNA INNOVATIONS INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	54-1560050
Entity Address, Address Line One	301 1st St SW
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Roanoke
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	24011
City Area Code	540
Local Phone Number	769-8400
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	LUNA
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 337.5
Entity Common Stock, Shares Outstanding		32,298,014
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCESpecified portions of the registrant’s Proxy Statement with respect to its 2022 Annual Meeting of stockholders, anticipated to be filed within 120 days after the end of its fiscal year ended December 31, 2021, are incorporated by reference into Part III of this annual report on Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0001239819

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Name	GRANT THORNTON LLP
Auditor Location	Philadelphia, Pennsylvania
Auditor Firm ID	248

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 17,128	$ 15,366
Accounts receivable, net	20,913	21,928
Contract assets	5,166	4,139
Inventory	22,493	23,062
Prepaid expenses and other current assets	3,793	4,434
Assets held for sale	12,952	6,540
Total current assets	82,445	75,469
Property and equipment, net	2,988	2,917
Intangible assets, net	17,177	19,994
Goodwill	18,984	18,121
Operating lease right-of-use asset	5,075	5,984
Other non-current assets	247	369
Deferred tax asset	3,321	1,689
Non-current assets held for sale	0	6,459
Total assets	130,237	131,002
Current liabilities:
Current portion of long-term debt obligations	4,167	4,167
Accounts payable	2,809	2,851
Accrued and other current liabilities	9,258	11,325
Contract liabilities	4,649	6,147
Current portion of operating lease liability	2,101	1,876
Current liabilities held for sale	9,703	3,719
Total current liabilities	32,687	30,085
Long-term debt obligations	11,673	15,817
Long-term portion of operating lease liability	3,509	5,034
Other long-term liabilities	445	410
Non-current liabilities held for sale	0	5,214
Total liabilities	48,314	56,560
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, par value $0.001, 100,000,000 shares authorized, 33,855,725 and 32,724,512 shares issued, 32,116,270 and 31,024,537 shares outstanding at December 31, 2021 and 2020, respectively	34	33
Treasury stock at cost, 1,744,206 and 1,699,975 shares at December 31, 2021 and 2020, respectively	(5,248)	(4,789)
Additional paid-in capital	98,745	92,403
Accumulated deficit	(11,575)	(12,957)
Accumulated other comprehensive loss	(33)	(248)
Total stockholders’ equity	81,923	74,442
Total liabilities and stockholders’ equity	$ 130,237	$ 131,002

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
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)	33,855,725	32,724,512
Common stock outstanding (in shares)	32,116,270	31,024,537
Treasury stock (in shares)	1,744,206	1,699,975

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 87,513	$ 59,115
Cost of revenue	35,957	23,235
Gross profit	51,556	35,880
Operating expense:
Selling, general and administrative	43,956	28,353
Research, development and engineering	10,190	6,714
Total operating expense	54,146	35,067
Operating (loss)/income	(2,590)	813
Other income/(expense):
Other income, net	0	50
Investment income	0	67
Interest expense, net	(479)	(25)
Total other (expense)/income	(479)	92
(Loss)/income from continuing operations before income taxes	(3,069)	905
Income tax benefit	1,980	455
Net (loss)/income from continuing operations	(1,089)	1,360
Income from discontinued operations, net of income tax expense of $584 and $339	2,471	1,931
Net income	$ 1,382	$ 3,291
Net (loss)/income per share from continuing operations:
Basic (in dollars per share)	$ (0.03)	$ 0.04
Diluted (in dollars per share)	(0.03)	0.04
Net income per share from discontinued operations:
Basic (in dollars per share)	0.08	0.06
Diluted (in dollars per share)	0.08	0.06
Net income per share attributable to common stockholders:
Basic (in dollars per share)	0.04	0.11
Diluted (in dollars per share)	$ 0.04	$ 0.10
Weighted average shares:
Basic (in shares)	31,658,085	30,669,874
Diluted (in shares)	31,658,085	32,578,757

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Income tax expense	$ 584	$ 339

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 1,382	$ 3,291
Other comprehensive income/(loss)	215	(248)
Total other comprehensive income	$ 1,597	$ 3,043

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2019		30,149,105	(1,639,791)
Beginning balance at Dec. 31, 2019	$ 67,469	$ 32	$ (4,337)	$ 88,022	$ (16,248)	$ 0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		792,466
Exercise of stock option	2,276	$ 1		2,275
Stock-based compensation (in shares)		83,935
Stock-based compensation	2,134			2,134
Deferred compensation issuance (in shares)		47,377
Deferred compensation issuance	78			78
ESPP issuance (in shares)		93,368
ESPP issuance	456			456
Forfeitures of restricted stock (in shares)		(81,530)
Forfeitures of restricted stock	(562)			(562)
Purchase of treasury stock (in shares)		(60,184)	60,184
Purchase of treasury stock	(452)		$ (452)
Net income	3,291				3,291
Foreign currency translation adjustment	(248)					(248)
Ending balance (in shares) at Dec. 31, 2020		31,024,537	(1,699,975)
Ending balance at Dec. 31, 2020	74,442	$ 33	$ (4,789)	92,403	(12,957)	(248)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		818,267
Exercise of stock option	2,257	$ 1		2,256
Stock-based compensation (in shares)		169,793
Stock-based compensation	2,955			2,955
ESPP issuance (in shares)		147,724
ESPP issuance	1,131			1,131
Purchase of treasury stock (in shares)		(44,051)	44,051
Purchase of treasury stock	(459)		$ (459)
Net income	1,382				1,382
Foreign currency translation adjustment	215					215
Ending balance (in shares) at Dec. 31, 2021		32,116,270	(1,744,026)
Ending balance at Dec. 31, 2021	$ 81,923	$ 34	$ (5,248)	$ 98,745	$ (11,575)	$ (33)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows provided by operating activities:
Net income	$ 1,382	$ 3,291
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,628	2,970
Stock-based compensation	2,955	2,134
Loss on sale and disposal of property and equipment	0	644
Loss from discontinued operations, net of tax	0	1,436
Deferred tax asset	(1,501)	(522)
Bad debt expense	393	127
Changes in operating assets and liabilities:
Accounts receivable	(280)	(3,292)
Contract assets	(1,672)	(1,504)
Inventory	939	(1,550)
Prepaid expenses and other current assets	582	(2,203)
Other long-term assets	0	(3)
Accounts payable and accrued liabilities	(3,213)	1,143
Contract liabilities	186	(29)
Other long-term liabilities	84	214
Net cash provided by operating activities	4,483	2,856
Cash flows used in investing activities:
Acquisitions, net of cash acquired	0	(34,102)
Acquisition of property and equipment	(1,412)	(681)
Proceeds from sale of property and equipment	0	403
Intangible property costs	(356)	(379)
Proceeds from sale of discontinued operations	0	600
Net cash used in investing activities	(1,768)	(34,159)
Cash flows (used in)/provided by financing activities:
Proceeds from debt obligations	0	19,984
Payments on debt obligations	(4,144)	0
Payments on finance lease obligations	(48)	(53)
Purchase of common stock	(459)	(452)
Proceeds from ESPP	1,131	456
Proceeds from the exercise of options and warrants	2,256	1,714
Net cash (used in)/provided by financing activities	(1,264)	21,649
Net change in cash and cash equivalents	1,451	(9,654)
Effect of exchange rate changes on cash and cash equivalents	311	14
Cash and cash equivalents—beginning of period	15,366	25,006
Cash and cash equivalents—end of period	17,128	15,366
Supplemental disclosure of cash flow information
Cash paid for interest	458	4
Net cash received/(paid) for income taxes	$ 113	$ (1,244)

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
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," "our" 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, measurement and control products for the telecommunications and photonics industries; and distributed fiber optic sensing solutions that measure, or “sense,” the structures for industries ranging from aerospace, automotive, energy, oil and gas, security and infrastructure. 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. We reclassified $2,204 of previously separately reported acquisition related expenses in 2020 into selling, general, and administrative expense, to conform with current year presentation. 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. Revenue Recognition Products and Services 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 test and 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. 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 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. 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 use the residual approach. 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 costs rather than separate performance obligations. 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. In instances where acceptance of the product and installation services are specified by the customer, revenue is deferred until such required acceptance criteria have been met. 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 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 periods. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expenses. 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. 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. Research and Development Contracts 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 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. 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 bare on the ultimate collection of such amounts. The allowance was $0.9 million at each of December 31, 2021 and 2020. Cash and 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. Our foreign currency risk on cash and cash equivalents held outside of the US is not material. Cash equivalents at December 31, 2021 and 2020 included $1.0 million and $3.1 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, 2021 and 2020, we had approximately $9.5 million and $7.5 million, respectively, in excess of FDIC insured limits. 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, accounts payable and accrued liabilities approximate fair value because of the short-term nature of these instruments. The carrying amount of lease liabilities approximate fair value because these financial instruments bear interest at rates that approximate current market rates for similar agreements with similar maturities and credit. We consider the terms of the PNC Bank, National Association debt facility, including its interest rate of LIBOR plus a margin ranging from 1.75% to 2.25%, to be at market based upon similar instruments that would be available to us. Property and Equipment, net Property and equipment, net, 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, net 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 acquisition of OptaSense Holdings Ltd. ("OptaSense") in December 2020 and other companies prior to 2020. We amortize our identified intangible assets over their estimated useful lives ranging between one Goodwill Goodwill is tested annually for impairment as of the first day of our fourth quarter (October 1st) and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Goodwill is tested for impairment at the reporting unit level. As of December 31, 2021, we had two reporting units, Luna and OptaSense, both of which contained goodwill. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair value. Our goodwill impairment evaluation consisted of a qualitative assessment. A qualitative assessment can be performed to determine whether it is more likely than not the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, we compare the fair value of each reporting unit to its carrying value using a quantitative assessment. If the fair value of the reporting unit exceeds its carrying value, goodwill is considered not impaired. If the fair value of the reporting unit is less than the carrying value, the difference is recorded as an impairment loss. For the quantitative assessment, the fair value of each reporting unit is estimated using a combination of an income approach using a discounted cash flow ("DCF") analysis and a market-based valuation approach based on comparable public company trading values. Determining the fair value of a reporting unit requires the exercise of significant management judgment, including the amount and timing of projected future revenues, earnings and cash flows after considering factors such as recent operating performance, general market and industry conditions, existing and expected future contracts, changes in working capital and long-term business plans and growth initiatives. The carrying value of each reporting unit includes the assets and liabilities employed in its operations and goodwill. There are no significant allocations of amounts held at the corporate level to the reporting units. We have not recorded any goodwill impairment for the years ended December 31, 2021 and 2020. Research, Development and Engineering Research, development and engineering expense not related to contract performance is expensed as incurred. We expensed $10.2 million and $6.7 million of non-contract related research, development and engineering expense for the years ended December 31, 2021 and 2020, respectively. Impairment 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 per Share Basic per share data is computed by dividing net income 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 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 1.9 million common stock equivalents are included for the diluted per share data for the year ended December 31, 2020. Accrued stock dividends and stock options are included in our common stock equivalents for the years ended December 31, 2021 and 2020. Stock-Based Compensation We have two stock-based compensation plans, which are described further in Note 12. 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 basis over the requisite service period of the awards taking into account the effects of the expected exercise. We reduce stock-based compensation expense for the value of any forfeitures of unvested awards as such forfeitures occur. 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, greater than 50%, 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. Foreign Currency For our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss within equity. Gains and losses resulting from foreign currency transactions are included in earnings. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 Simplifying the Accounting for Income Taxes , which removes certain exceptions to the general principles of the accounting for income taxes and also improves consistent application of and simplification of other areas when accounting for income taxes. The guidance was effective for us beginning in the first quarter of fiscal year 2021. We adopted ASU 2019-12, effective January 1, 2021. The adoption of ASU 2019-12 did not have a significant impact on our consolidated financial statements. Recently Issued Pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, which requires companies to measure financial assets at an amortized cost basis to be presented at the net amount expected to be collected. The new accounting rules eliminate the probable initial recognition threshold and, instead, reflect an entity's current estimate of all expected credit losses. ASU 2016-13 is applicable to our trade receivables. This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting company. We have elected this extension and the effective date for us to adopt this standard will be for fiscal years beginning after December 15, 2022. We are currently in the process of evaluating the impact of ASU 2016-13, but we do not expect the adoption of these new accounting rules to have a significant impact on our consolidated financial statements.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations We actively marketed our Luna Labs segment to prospective buyers during 2021 as part of our growth strategy for our Lightwave segment. After advancing those marketing efforts during our third quarter of 2021, we previously determined that our Luna Labs segment met held-for-sale and discontinued operations accounting criteria as of September 30, 2021. Accordingly, we have separately reported the results of our Luna Labs segment as discontinued operations in our consolidated statements of operations for the years ended December 31, 2021 and 2020, and presented the related assets and liabilities as held for sale in the consolidated balance sheets as of December 31, 2021 and 2020. These changes have been applied to all periods presented. We completed the sale of substantially all of our equity interests in Luna Labs in March 2022, as described in Note 19, Subsequent Events. The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the Luna Labs segment that will be eliminated from continuing operations. Previously reported expenses for the Luna Labs segment have been restated to exclude certain allocated expenses that are not directly attributable to the Luna Labs segment. The key components from discontinued operations related to the Luna Labs segment are as follows (in thousands) : Years ended December 31, 2021 2020 Revenues $ 23,722 $ 23,566 Cost of revenues 19,009 17,259 Gross profit 4,713 6,307 Selling, general and administrative expenses 1,634 1,493 Research, development & engineering expenses 24 — Loss on sale and disposal of property and equipment — 644 Operating income 3,055 4,170 Income tax expense 584 803 Net income from discontinued operations, net of tax $ 2,471 $ 3,367 During the year ended December 31, 2020, we recognized a loss from discontinued operations of $1.4 million, net of income tax benefit of $0.5 million, related to a previous sales transaction. Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets as of December 31, 2021 and 2020 consist of the following (in thousands) : December 31, 2021 December 31, 2020 Accounts receivable, net $ 2,967 $ 3,023 Inventory, net 282 535 Contract assets 4,051 3,291 Prepaid expenses and other current assets 132 76 Property and equipment, net (1) 330 391 Intangible assets, net (1) 165 115 Operating lease ROU asset (1) 4,884 5,297 Other assets (1) 141 271 Assets held for sale $ 12,952 $ 12,999 Accounts payable 1,042 1,542 Accrued liabilities 821 883 Contract liabilities 2,626 948 Current portion of operating lease ROU liability 388 346 Long-term portion of operating lease ROU liability (1) 4,826 5,214 Liabilities associated with assets held for sale $ 9,703 $ 8,933 (1) The classification of these line items remains long-term as of December 31, 2020. Accordingly, these lines are included within the respective non-current asset or liability held for sale line in the consolidated balance sheet as of December 31, 2020. The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table presents cash flow and non-cash information related to discontinued operations for the years ended December 31, 2021 and 2020 (in thousands) : Years ended December 31, 2021 2020 Depreciation and amortization $ 112 $ 198 Share-based compensation 129 47

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business Acquisitions OptaSense Holdings Limited On December 3, 2020, we entered into and closed a Share Purchase Agreement (the “Share Purchase Agreement”) with QinetiQ Holdings Limited (“QinetiQ”) for the purchase of all of the shares of OptaSense, a recognized market leader in fiber optic distributed monitoring solutions for pipelines, oilfield services, security, highways and railways, as well as power and utilities monitoring systems. Pursuant to the Share Purchase Agreement, we acquired all outstanding shares of OptaSense for aggregate consideration of $38.9 million (£29.0 million) subject to adjustment as described in the Share Purchase Agreement (the “Transaction”). The acquisition of OptaSense provides us with important distributed acoustic sensing ("DAS") intellectual property and products. OptaSense's technology and products and geographic footprint are highly complementary to Luna, which we believe will accelerate our technology and overall growth roadmap. The Share Purchase Agreement and a Tax Deed entered into between QinetiQ and us (the “Tax Deed”) in connection with the Share Purchase Agreement contain customary representations and warranties and indemnities. In addition, at closing of the acquisition, we obtained a warranty and indemnity insurance policy from Liberty Mutual Insurance Europe SE (LMIE) in connection with the Share Purchase Agreement and the Tax Deed. For the period from the closing of the OptaSense acquisition through December 31, 2020 , we recognized revenue of $1.5 million and an operating loss of $0.9 million. OptaSense's operating loss for the period from the closing of the acquisition through December 31, 2020 included $0.1 million in amortization expense for the acquired intangibles and step-up in value of acquired inventory. The amortization expense for the acquired intangibles is included selling, general and administrative expense in our consolidated statements of operations. New Ridge Technologies On October 29, 2020, we acquired New Ridge Technologies ("NRT"), a small company that develops and manufactures fiber optic test and measurement equipment and advanced fiber optic subsystems primarily for telecommunication and radio-over-fiber applications. NRT's acquired operations will be integrated into, and reported as a part of, our Lightwave segment. This acquisition supports our growth strategy in the communications test arena. The total consideration was $0.6 million, which consisted of $0.4 million paid at closing and $0.2 million of contingent consideration related to an earn-out provision. We recorded $0.02 million of goodwill upon the completion of the purchase consideration allocation. Depending on the achievement of certain metrics during the two years following closing, we may pay the seller up to $0.1 million in contingent consideration related to the earn-out provision. These acquisitions have been accounted for under the acquisition method of accounting in accordance with ASC 805 - Business Combinations . Under ASC 805, 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. The following table summarizes the allocation of the purchase consideration for the acquisition of OptaSense (excluding cash of $5.2 million): (in thousands) Accounts receivable $ 4,534 Contract assets 1,513 Inventory 12,793 Other current assets 1,026 Property and equipment 1,247 Identifiable intangible assets 11,263 Goodwill 8,520 Right of use asset 2,151 Other long-term assets 22 Accounts payable and accrued expenses (3,925) Contract liabilities (3,259) Other current liabilities (862) Long-term operating lease liability (1,335) Total purchase consideration $ 33,688 During the second quarter of 2021, we obtained new information about facts and circumstances related to the acquisition of OptaSense that existed as of the acquisition date that resulted in a change in the fair value of assets and liabilities recognized. Accordingly, the fair values of assets and liabilities have been revised as of the acquisition date, resulting in an increase in goodwill of $0.9 million, which was primarily related to an adjustment of accounts receivable. During the third quarter of 2021, we completed the purchase accounting for OptaSense with no additional measurement period adjustments. The identifiable intangible assets and their estimated useful lives were as follows: Estimated Useful Life (in thousands) Developed technology 10 years $ 7,379 Trade names and trademarks 15 years 2,580 Backlog 3 years 699 Customer relationships 5 years 605 $ 11,263 OptaSense's developed technology primarily consists of its DAS product solutions that deliver superior measurements for a wide range of applications from advanced industrial monitoring through high performance geophysical measurements. 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 17.5% was used to discount the cash flows to the present value. Trade names and trademarks are considered a type of guarantee of a certain level of recognizability, quality or performance represented by the OptaSense brand. Trade names and trademarks were valued using the "relief from royalty" method under 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 these assets. A discount rates of 17.5% was used to discount the cash flows to the present value. Backlog arises from unfulfilled purchase or sales order contracts. The value of OptaSense's backlog as of the acquisition date was calculated using the income approach. A discount rate of 16.5% was used to discount the cash flows attributable solely to the backlog to the present value. Customer relationships represent the fair value of either (i) the avoidance of cost associated with the creation of a new customer relationship or (ii) the projected cash flows that will be derived from the sale of products to existing customers as of the acquisition date. OptaSense's customer relationships were valued using the cost approach based on the expected time to re-build the customer base. A discount rate of 17.5% 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. Goodwill generated from our business acquisitions was primarily attributable to expected synergies from future customer and sales growth. 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 OptaSense had been completed on January 1, 2019. The pro forma information includes adjustments to depreciation expense for property and equipment acquired and amortization expense for the intangible assets acquired and the elimination of transaction expenses recognized in each period. Transaction-related expenses associated with the acquisition of OptaSense and excluded from pro forma income from continuing operations were $2.2 million for the year ended December 31, 2020. 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 acquisitions of OptaSense occurred on January 1, 2019, 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. For the year ended December 31, 2020 (in thousands) (unaudited) Revenue $ 103,971 Income from continuing operations $ 1,364

Accounts Receivable, net

Accounts Receivable, net	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net Accounts receivable, net, consists of the following: December 31, (in thousands) 2021 2020 Billed $ 21,790 $ 22,395 Other 48 419 21,838 22,814 Less: allowance for doubtful accounts (925) (886) Accounts receivable, net $ 20,913 $ 21,928

Inventory

Inventory	12 Months Ended
	Dec. 31, 2021
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, (in thousands) 2021 2020 Finished goods $ 10,087 $ 11,547 Work-in-process 2,318 1,425 Raw materials 10,088 10,090 Inventory $ 22,493 $ 23,062

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net, consists of the following: December 31, (in thousands) 2021 2020 Building $ 226 $ — Equipment 10,255 4,141 Furniture and fixtures 1,316 345 Software 72 106 Leasehold improvements 2,292 2,088 Construction in process 646 185 14,807 6,865 Less—accumulated depreciation (11,819) (3,948) Property and equipment, net $ 2,988 $ 2,917

Intangible Assets, net

Intangible Assets, net	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	Intangible Assets, net Intangible assets, net consist of the following: December 31, (in thousands) Estimated Life 2021 2020 Patent costs 1 - 18 years $ 9,230 $ 3,595 Developed technology 5 - 10 years 14,440 17,344 In-process research and development N/A 2,732 1,580 Customer base 5 - 7 years 700 1,302 Trade names 3 - 15 years 550 3,122 Backlog 3 years — 696 27,652 27,639 Accumulated amortization (10,475) (7,645) Intangible assets, net $ 17,177 $ 19,994 Amortization for the years ended December 31, 2021 and 2020 was approximately $3.1 million and $1.7 million, respectively, and is included primarily in selling, general and administrative expense in our consolidated statements of operations. Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2021, for each of the next five years and beyond is as follows: (in thousands) Year Ending December 31, 2022 $ 2,896 2023 2,807 2024 2,403 2025 2,087 2026 1,756 2027 and beyond 5,228 $ 17,177 We did not recognize any intangible asset impairment charges during the years ended December 31, 2021 or 2020.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The change in the carrying value of goodwill during the years ended December 31, 2021 and December 31, 2020 were as follows: (in thousands) Balance as of December 31, 2019 $ 10,542 Goodwill resulting from business acquisition 7,637 Measurement period adjustment (58) Balance as of December 31, 2020 18,121 Measurement period adjustment 929 Foreign currency translation (66) Balance as of December 31, 2021 $ 18,984 After completing a qualitative assessment of our goodwill during the fourth quarter of 2021, we concluded the carrying value of goodwill was not impaired as of December 31, 2021.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following: December 31, (in thousands) 2021 2020 Accrued compensation $ 6,798 $ 8,221 Contingent consideration 225 225 Accrued professional fees 503 825 Accrued income tax 328 281 Current portion of finance lease liability 48 48 Accrued interest 17 42 Accrued royalties — 456 Accrued liabilities-other 1,339 1,227 Total accrued liabilities $ 9,258 $ 11,325

Debt

Debt	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consists of the following: Years ended December 31, (in thousands) 2021 2020 Term Loan (net of debt issuance costs of $44, 2.43% at December 31, 2021) $ 8,290 $ 12,434 Revolving Loan (2.43% at December 31, 2021) 7,550 7,550 15,840 19,984 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 11,673 $ 15,817 PNC Bank Facility On December 1, 2020 (the “Effective Date”), we entered into a Loan Agreement (the “Loan Agreement”) with PNC Bank, National Association, as lender (the “Lender”) and our domestic subsidiaries as guarantors. The Loan Agreement provides a $12.5 million term loan facility (the “Term Loan”) and a $15.0 million revolving credit facility (the “Revolving Line”), which includes a $3.0 million letter of credit sublimit. On the Effective Date, we borrowed the full amount of the Term Loan from the Lender pursuant to a term note (the “Term Note”) and a $7.6 million revolving loan (the “Revolving Loan”) pursuant to a revolving line of credit note (the “Revolving Line of Credit Note”). We may repay and reborrow advances under the Revolving Line from time to time pursuant to the Revolving Line of Credit Note. The Term Loan matures on December 1, 2023. The Term Loan is due and payable in 12 equal quarterly payments of principal and interest. The Term Loan bears interest at a floating per annum rate equal to the sum of (a) LIBOR plus (b) a margin ranging from 1.75% to 2.25% depending on the Net Leverage Ratio (as defined in the Loan Agreement). We may prepay the Term Loan without penalty or premium. The Revolving Line expires on December 1, 2023. Borrowings under the Revolving Line will bear interest at a floating per annum rate equal to the sum of (a) LIBOR plus (b) a margin ranging from 1.75% to 2.25% depending on the Net Leverage Ratio. Accrued interest will be due and payable on the first day of each month and the outstanding principal balance and any accrued but unpaid interest will be due and payable on December 1, 2023. The unused portion of the Revolving Line will accrue a fee equal to 0.20% per annum multiplied by the quarterly average unused amount. Provided our obligations under the Loan Agreement have been satisfied, we may terminate the Loan Agreement at any time upon three The Loan Agreement includes a number of affirmative and restrictive covenants applicable to us and our subsidiaries, including, among others, financial covenants regarding minimum net leverage and fixed charge coverage, affirmative covenants regarding delivery of financial statements, payment of taxes, and maintenance of government compliance, and restrictive covenants regarding dispositions of property, acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates. We are also restricted from paying dividends or making other distributions or payments on our capital stock, subject to limited exceptions. We were in compliance with these covenants as of December 31, 2021. Upon the occurrence of certain events, including failure to satisfy our payment obligations under the Loan Agreement, failure to adhere to the financial covenants, the breach of certain of our other covenants under the Loan Agreement, cross defaults to other indebtedness or material agreements, judgment defaults and defaults related to failure to maintain governmental approvals, the Lender will have the right, among other remedies, to declare all principal and interest immediately due and payable, and to exercise secured party remedies. Former Debt Arrangements On December 1, 2020, we terminated our former loan agreement with Silicon Valley Bank. As of the time of termination, there were no amounts outstanding under the loan agreement. On April 28, 2020, we were granted a loan (the "Loan") from SVB in the aggregate amount of $4.5 million, pursuant to the Paycheck Protection Program under Division A, Title I of the CARES Act, which was enacted March 27, 2020. On May 4, 2020, we returned the full amount of the proceeds of the Loan to SVB. The decision to return the proceeds was based on the revised guidance issued by the U.S. Department of Treasury and the Small Business Administration subsequent to our application for the Loan. Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2022 $ 4,167 2023 11,673 Total $ 15,840 Interest expense, net for the years ended December 31, 2021 and 2020 consisted of the following: Years ended December 31, (in thousands) 2021 2020 Interest expense on Term Loans $ 247 $ 26 Interest expense on Revolving Line of Credit 164 16 Amortization of debt issuance costs 44 2 Other interest expense 27 5 Interest income (3) (24) Total interest expense, net $ 479 $ 25

Leases

Leases	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Leases	Leases We have operating leases for our facilities, which have remaining terms ranging from 1 to 5 years. Our leases do not have an option to extend the lease period beyond the stated term unless the new term is agreed by both parties. They also do not have an early termination clause included. Our operating lease agreements do not contain any material restrictive covenants. Some of our operating lease agreements contain variable payment provisions that provide for rental increases based on consumer price indices. The change in rent expense resulting from changes in these indices are included within variable rent. We also have finance leases for equipment which have remaining terms ranging from 1 to 4 years. These lease agreements are for general office equipment with a 5-year useful life. These lease agreements do not have an option to extend the lease beyond the stated terms nor do they have an early termination clause. These lease agreements do not have any variable payment provisions included. The finance lease costs consist of interest expense and amortization, and are included primarily in selling, general and administrative expense in our consolidated statement of operations. The discount rate for both our operating and finance leases was not readily determinable in the specific lease agreements. As a result, our incremental borrowing rate was used as the discount rate when establishing the ROU assets and corresponding lease liabilities. As of December 31, 2021, we had no operating or finance leases that have not yet commenced. Rent expense is recognized on a straight-line basis over the life of the lease. Rent expense consists of the following: Year Ended (in thousands) December 31, 2021 December 31, 2020 Operating lease costs $ 2,303 $ 1,647 Variable rent costs (188) 133 Total rent expense $ 2,115 $ 1,780 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of December 31, 2021: (in thousands) Year Ending December 31, Operating Leases Finance Leases 2022 $ 2,270 $ 53 2023 1,785 53 2024 1,293 53 2025 609 48 2026 104 — 2027 and beyond — — Total future minimum lease payments 6,061 207 Less: Interest 451 11 Total lease liabilities $ 5,610 $ 196 Current lease liability $ 2,101 $ 48 Long-term lease liability 3,509 148 Total lease liabilities $ 5,610 $ 196 Other information related to leases is as follows: Year Ended (in thousands, except weighted-average data) December 31, 2021 December 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 48 $ 46 Interest on lease liabilities 4 5 Total finance lease cost $ 52 $ 51 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,115 $ 1,647 Finance cash flows from finance leases $ 48 $ 53 Right-of-use assets obtained in exchange for new operating lease liabilities $ 865 $ 10,740 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ 247 Weighted-average remaining lease term (years) - operating leases 8 6.3 Weighted-average remaining lease term (years) - finance leases 3.9 4.9 Weighted-average discount rate - operating leases 9 % 5 % Weighted-average discount rate - finance leases 3 % 2 %
Leases	Leases We have operating leases for our facilities, which have remaining terms ranging from 1 to 5 years. Our leases do not have an option to extend the lease period beyond the stated term unless the new term is agreed by both parties. They also do not have an early termination clause included. Our operating lease agreements do not contain any material restrictive covenants. Some of our operating lease agreements contain variable payment provisions that provide for rental increases based on consumer price indices. The change in rent expense resulting from changes in these indices are included within variable rent. We also have finance leases for equipment which have remaining terms ranging from 1 to 4 years. These lease agreements are for general office equipment with a 5-year useful life. These lease agreements do not have an option to extend the lease beyond the stated terms nor do they have an early termination clause. These lease agreements do not have any variable payment provisions included. The finance lease costs consist of interest expense and amortization, and are included primarily in selling, general and administrative expense in our consolidated statement of operations. The discount rate for both our operating and finance leases was not readily determinable in the specific lease agreements. As a result, our incremental borrowing rate was used as the discount rate when establishing the ROU assets and corresponding lease liabilities. As of December 31, 2021, we had no operating or finance leases that have not yet commenced. Rent expense is recognized on a straight-line basis over the life of the lease. Rent expense consists of the following: Year Ended (in thousands) December 31, 2021 December 31, 2020 Operating lease costs $ 2,303 $ 1,647 Variable rent costs (188) 133 Total rent expense $ 2,115 $ 1,780 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of December 31, 2021: (in thousands) Year Ending December 31, Operating Leases Finance Leases 2022 $ 2,270 $ 53 2023 1,785 53 2024 1,293 53 2025 609 48 2026 104 — 2027 and beyond — — Total future minimum lease payments 6,061 207 Less: Interest 451 11 Total lease liabilities $ 5,610 $ 196 Current lease liability $ 2,101 $ 48 Long-term lease liability 3,509 148 Total lease liabilities $ 5,610 $ 196 Other information related to leases is as follows: Year Ended (in thousands, except weighted-average data) December 31, 2021 December 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 48 $ 46 Interest on lease liabilities 4 5 Total finance lease cost $ 52 $ 51 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,115 $ 1,647 Finance cash flows from finance leases $ 48 $ 53 Right-of-use assets obtained in exchange for new operating lease liabilities $ 865 $ 10,740 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ 247 Weighted-average remaining lease term (years) - operating leases 8 6.3 Weighted-average remaining lease term (years) - finance leases 3.9 4.9 Weighted-average discount rate - operating leases 9 % 5 % Weighted-average discount rate - finance leases 3 % 2 %

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Stockholders' Equity	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 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 Weighted Aggregate (in thousands, except share, per share and weighted-average data) Balance at January 1, 2019 3,160,397 $1.18 - 7.37 $ 2.72 $ 14,460 1,835,799 $ 2.28 $ 9,198 Forfeited (108,515) $1.27 - 7.59 3.66 Exercised (792,466) $1.21 - 4.43 2.80 Granted 70,000 $6.27 - 7.59 6.65 Balance at December 31, 2020 2,329,416 $1.18 - 7.59 $ 2.76 $ 16,574 1,408,119 $ 2.26 $ 10,734 Forfeited (58,860) $3.37 - $11.40 5.91 Exercised (818,267) $1.18 - $7.59 2.73 Granted 80,735 $11.00 - $11.94 9.13 Balance at December 31, 2021 1,533,024 $1.18 - 11.40 $ 3.00 $ 8,439 1,050,177 $ 2.45 $ 6,314 (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, 2021 2020 Risk-free interest rate range 0.975% 0.685% Expected life of option-years 7 7 Expected stock price volatility 55% 63% 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-executives, 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 Options Weighted Weighted Options Weighted Weighted Year ended December 31, 2020 $1.18 - 7.59 2,329,416 6.04 $2.76 1,408,119 4.73 $2.2568 Year ended December 31, 2021 $1.18 - 11.40 1,533,024 4.73 $3.00 1,050,177 3.95 $2.45 (in thousands) Total Intrinsic Value of Total Fair Value of Year ended December 31, 2020 $ 3,322 $ 3,178 Year ended December 31, 2021 $ 6,288 $ 2,571 For the years ended December 31, 2021 and 2020, the weighted average grant date fair value of options granted was $11.30 and $6.65 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, 2021, the weighted average remaining service period is 7.0 years. Unamortized stock option expense at December 31, 2021 that will be amortized over the weighted-average remaining service period of 1.6 years totaled $1.2 million. Restricted Stock and Restricted Stock Units Historically, we have granted shares of restricted stock to certain employees that have vested in three equal annual installments on the anniversary dates of their grant. However, beginning in 2019, we altered our approach for these grants to replace the grant of restricted stock subject to time-based vesting with the grant of a combination of restricted stock units ("RSUs") subject to time-based vesting and performance-based vesting. Each RSU represents the contingent right to receive a single share of our common stock upon the vesting of the award. For the year ended December 31, 2021, we granted an aggregate of 281,384 RSUs to certain employees. Of the RSUs granted during 2021, 235,634 of such RSUs are subject to time-based vesting and are scheduled to vest in three equal annual installments on the anniversary dates of the grant. The remaining 45,750 RSUs are performance-based awards that will vest based on our achievement of long-term performance goals, in particular, based on our levels of 2023 revenue and operating income. The 45,750 shares issuable upon vesting of the performance-based RSUs represent the maximum payout under our performance-based awards, based upon 150% of our target performance for 2023 revenue and operating income (the payout of such awards based on target performance for 2023 revenue and operating income would be 41,300 shares). In the case of the time-based and performance-based RSUs, vesting is also subject to the employee's continuous service with us through vesting. In 2021, 93,333 shares of restricted stock and 91,232 RSUs granted to employees vested. In addition, in conjunction with our 2019, 2020 and 2021 Annual Meetings of Stockholders, we granted RSUs to certain members of our Board of Directors in respect of the annual equity compensation under our non-employee director compensation policy (other members of our Board of Directors elected to receive their annual equity compensation for Board service in the form of stock units under our Deferred Compensation Plan as described below). RSUs granted to our non-employee Directors vest at the earlier of the one-year anniversary of their grant or the next annual stockholders' meeting. In 2021 and 2020, we granted 3,384 and 10,652, respectively, RSUs to non-employee members of our Board of Directors in respect of the annual equity compensation under our non-employee director compensation policy. In 2021 and 2020, 10,652 and 11,600 RSUs granted to directors, respectively, vested. The following table summarizes the number of unvested shares underlying our restricted stock awards and RSUs and the value of our unvested restricted stock awards and RSUs in 2021 and 2020: (in thousands, except share and weighted-average share data) Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Grant Date Fair Value of Unvested Shares Balance at January 1, 2020 502,097 $ 3.32 $ 1,665 Granted 149,302 6.48 967 Vested (221,932) 3.19 (708) Forfeitures — — — Balance at December 31, 2020 429,467 $ 4.48 $ 1,924 Granted 281,384 10.71 3,014 Vested (234,367) 4.22 (989) Forfeitures (7,500) 11.94 (90) Balance at December 31, 2021 468,984 $ 8.58 $ 3,859 We recognized $3.0 million and $2.1 million in stock-based compensation expense, which is recorded in selling, general and administrative expense on the consolidated statements of operations for the years ended December 31, 2021 and 2020, respectively. Unamortized restricted stock and RSUs expense at December 31, 2021 that will be amortized over the weighted-average remaining service period of 1.6 years totaled $2.7 million. Employee Stock Purchase Plan On April 7, 2020, our board of directors approved, and on May 11, 2020, our stockholders approved, the Luna Innovations Incorporated 2020 Employee Stock Purchase Plan (the "2020 ESPP"). The 2020 ESPP grants our eligible employees a purchase right to purchase up to that number of shares of common stock purchasable either with a percentage or with a maximum dollar amount, as designed by the Board of Directors, during the period that begins on the offering date and ends on the date stated in the offering. The maximum number of shares of common stock that may be issued under the 2020 ESPP is 1,200,000 shares. The 2020 ESPP is considered a compensatory plan and the fair value of the discount and the look-back period will be estimated using the Black-Scholes option pricing model and expense will be recognized over the six-month withholding period prior to the purchase date. For the years ended December 31, 2021 and 2020, we recognized $0.4 million and $0.2 million in share-based compensation expense related to the 2020 ESPP, respectively, which is included in our selling, general and administrative expense in the accompanying consolidated statements of operations. 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 compensation that they receive for serving on our board and board committees. The Deferred Compensation Plan has historically permitted the participants to elect to defer cash fees to which they were entitled for board and committee service. For participating directors, in lieu of payment of cash fees, 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 vest immediately, although the participating directors do not receive the shares represented by such units until a future qualifying event. Pursuant to our Deferred Compensation Plan, non-employee directors can also elect to defer the receipt of some or all of the equity compensation that they receive for board and committee service. Stock units representing this equity compensation vest at the earlier of the one-year anniversary of their grant or the next annual stockholders' meeting. The following is a summary of our stock unit activity under the Deferred Compensation Plan for 2021 and 2020: (in thousands, except stock units and weighted-average share data) Number of Stock Units Weighted Average Grant Date Fair Value per Share Intrinsic Value Outstanding Balance, December 31, 2019 629,003 2.09 $ 4,585 Granted 53,757 6.62 Issued (47,377) 1.65 Balance, December 31, 2020 635,383 2.41 $ 6,278 Granted 40,576 10.6 Issued (47,377) 2.40 Balance, December 31, 2021 628,582 3.06 $ 5,334 As of December 31, 2021, 23,130 outstanding stock units had not yet vested. Stock Repurchases The Company has historically repurchased shares of its common stock during previous stock repurchase programs. The Company currently maintains all repurchased shares under those stock repurchase programs as treasury stock. In addition, the Company repurchased 44,051 and 60,184 shares of its common stock at an aggregate cost of $0.5 million and $0.5 million, or an average price of $10.41 and $7.51 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock units in 2021 and 2020, respectively.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic location, customer type, contract type, timing of recognition, and major categories, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. We disaggregate revenue on the basis of where the physical goods are shipped. We also classify revenue by the customer type of entity for which it does business, which is an indicator of the diversity of our client base. We attribute revenues generated from being a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that we have assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as we are required to deliver a scope of work or level of effort for a negotiated fixed price. Cost-based contracts are considered to provide the lowest amount of performance risk since we are generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements. By classifying revenue by major product and service, we attribute revenue from a client to the major product or service that we believe to be the client's primary market. The details are listed in the table below for the years ended December 31, 2021 and 2020: Years ended December 31, (in thousands) 2021 2020 Total Revenue by Geographic Location United States $ 45,334 $ 33,706 Asia 17,183 16,181 Europe 16,928 7,144 Canada, Central and South America 8,068 2,084 Total $ 87,513 $ 59,115 Total Revenue by Major Customer Type Sales to the U.S. government $ 9,525 $ 8,196 U.S. direct commercial sales and other 35,410 25,487 Foreign commercial sales & other 42,578 25,432 Total $ 87,513 $ 59,115 Total Revenue by Contract Type Fixed-price contracts $ 84,490 $ 56,266 Cost-type contracts 3,023 2,849 Total $ 87,513 $ 59,115 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 69,522 $ 50,347 Goods/services transferred over time 17,991 8,768 Total $ 87,513 $ 59,115 Total Revenue by Major Products/Services Technology development $ 7,136 $ 7,211 Test, measurement and sensing systems 78,528 50,881 Other 1,849 1,023 Total $ 87,513 $ 59,115 Contract Balances Our contract assets consist of unbilled amounts for technology development contracts as well as custom product contracts. Also included in contract assets are royalty revenue and 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, deferred extended warranty revenue, right of return refund, and customer deposits. The net contract assets/(liabilities) changed by $2.5 million primarily due to cost reimbursable contracts that have not reached milestones as designated in their respective contracts, but revenue has been recognized based on costs incurred. The following table shows the components of our contract balances as of December 31, 2021 and 2020: December 31, (in thousands) 2021 2020 Contract assets $ 5,166 $ 4,139 Contract liabilities (4,649) (6,147) Net contract assets/(liabilities) $ 517 $ (2,008) Performance Obligations 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 represent firm orders for which funding has not yet been appropriated. The approximate value of our unfulfilled performance obligations was $38.4 million at December 31, 2021. We expect to satisfy 65% of the performance obligations in 2022, 29% in 2023 and the remainder by 2025.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2021
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, (in thousands) 2021 2020 Current: Federal $ 28 $ (559) State (40) 305 Foreign 118 27 Current $ 106 $ (227) Deferred: Federal (1,692) (70) State (390) (161) Foreign $ (4) $ 3 Deferred $ (2,086) $ (228) Income tax benefit $ (1,980) $ (455) Deferred tax assets and liabilities consist of the following components: Years ended December 31, (in thousands) 2021 2020 Bad debt and inventory reserve $ 405 $ 430 UNICAP 130 113 Deferred revenue 156 109 ASC842 Lease Accounting (DTA) 1,236 1,454 ASC842 Lease Accounting (DTL) (1,090) (1,279) Depreciation and amortization (3,012) (3,450) Net operating loss carryforwards 6,984 5,767 Accrued liabilities 559 552 Stock-based compensation 899 829 R&D Credit Carryforward 500 — Other 360 14 Total $ 7,127 $ 4,539 Valuation allowance (3,806) (2,850) Net deferred tax asset $ 3,321 $ 1,689 The benefit from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our (loss)/income from continuing operations before income taxes as follows for the periods indicated: Years ended December 31, 2021 2020 Income tax expense at federal statutory rate 21.00 % 21.00 % Effect of foreign operations 28.79 1.28 State taxes, net of federal tax effects 9.48 5.30 Change in valuation allowance (24.66) 19.24 Provision to return adjustments (0.04) (1.86) Meals and entertainment (0.11) 0.72 Other permanent differences (14.71) 49.34 Equity compensation 34.43 (40.60) Current year R&D credit 8.80 (33.99) Prior year R&D credit 1.52 (100.07) Foreign derived intangible income benefit 3.31 — Reserve for uncertain tax positions (2.73) 23.53 Other (0.56) 5.83 Income tax benefit 64.52 % (50.28) % 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 net operating loss ("NOL") carryforwards of approximately $4.8 million for a previously acquired company expiring at varying dates through 2033. The current year NOL of $1.5 million has an indefinite carryforward period. The Company's NOL carryovers will be subject to a Section 382 limitation based on a 2015 ownership change, and there have been no subsequent ownership changes. We continue to be in a three year cumulative net income position, and based on all available positive and negative evidence, we believe our net deferred tax asset will be fully realizable. Our OptaSense acquisition included a UK entity and a US entity which have deferred tax assets. Based on all available evidence, including cumulative history of losses, we have realized deferred tax assets only to the extent they are supported by the reversal of existing temporary differences. As a result, we have recorded a valuation allowance of $3.8 million and $2.9 million as of December 31, 2021 and December 31, 2020, respectively. OptaSense US has approximately $3.6 million of NOL carryforwards. These NOLs are subject to limitation under IRC Section 382. The following table summarizes the activity related to our gross unrecognized tax benefits: Years ended December 31, (in thousands) 2021 2020 Unrecognized tax benefits, beginning of period $ 211 $ — Increases related to current period tax positions 75 81 Increases related to prior period tax positions 9 130 Unrecognized tax benefits, end of period $ 295 $ 211 As of December 31, 2021, we had $0.3 million of unrecognized tax benefits. If these amounts are recognized in future periods, it would affect the effective tax rate on income from continuing operations for the years in which they are recognized. Interest and penalties released related to uncertain tax positions were not material for the year ended December 31, 2021. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period for which the event occurs requiring the adjustment. The amount of accrued interest and penalties as of December 31, 2021 is recorded in other long-term liabilities on the consolidated balance sheets. Our policy is to recognize interest and/or penalties related to income tax matters in income tax expense. We do not believe there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. We file numerous consolidated and separate income tax returns in the US federal jurisdiction and in many state and foreign jurisdictions. The U.S. federal statute of limitations remains open for the year 2017 and onward. U.S. state jurisdictions have statutes of limitation generally ranging from three to seven years. Our OptaSense companies have open years for audit including UK - 2017 and forward; US - 2017 and forward; and Canada - 2016 and forward. Given that certain subsidiaries have federal or state net operating loss carryforwards, the statute for examination by the taxing authorities will typically remain open for a period following the use of such net operating loss carryforwards, extending the period for examination beyond the years indicated above. We currently have no income tax returns under examination. The Company considers undistributed earnings of certain foreign subsidiaries to be indefinitely reinvested outside of the U.S. No taxes have been recorded with respect to our indefinitely reinvested earnings in accordance with the relevant accounting guidance for income taxes. Should the earnings be remitted as dividends, the Company may be subject to additional foreign withholding and state income taxes. As of December 31, 2021, the cumulative amount of U.S. GAAP foreign un-remitted earnings upon which additional income taxes have not been provided is not material to the financial statements. It is not practicable to estimate the amount of any additional taxes which may be payable on the undistributed earnings. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act includes significant business tax provisions that, among other things, include the removal of certain limitations on utilization of net operating losses, increase the loss carryback period for certain losses to five years, and increase the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. We do not expect the CARES Act to have a significant impact on our tax obligations. In December 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA included additional funding through tax credits as part of its economic package for 2021. As of December 31, 2021 and December 31, 2020, we evaluated these items in our tax computation and determined that the items did not have a material impact on our financial statements.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation and other contingencies From time to time, we may become involved in litigation in relation to claims arising from 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. As of December 31, 2019, $1.5 million of the escrow balance had been received with the remaining $2.5 million in the escrow account pending resolution of our dispute of indemnity claims received from Macom. In March 2020, we settled the dispute resulting in us receiving $0.6 million and Macom receiving $1.9 million. For the year ended December 31, 2020, we have recorded a loss from discontinued operations of $1.4 million, net of income tax benefit, to reflect the settlement of the dispute. 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. Obligation under Operating Leases See Note 11 - Leases for discussion of our lease obligations. Purchase Commitments We executed a non-cancelable purchase order totaling $1.6 million in the fourth quarter of 2020, a non-cancelable purchase order totaling $1.5 million in the third quarter of 2021 and a non-cancelable purchase order totaling $0.8 million in the fourth quarter of 2021 for multiple shipments of tunable lasers and components to be delivered over an 18-month period. At December 31, 2021, approximately $1.8 million of these commitments remained and are expected to be delivered by May 7, 2022. Guarantees As of December 31, 2021, we had a total of $0.9 million in performance bond guarantees outstanding in favor of certain third parties to ensure performance of its obligations under certain customer contracts and lease arrangements. These guarantees expire at various dates through September 2027 To date, we have not incurred any charges associated with non-performance covered by such guarantees and have not accrued any liabilities as of December 31, 2021.

Employee Profit Sharing Plan

Employee Profit Sharing Plan	12 Months Ended
	Dec. 31, 2021
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 permanent employees. We contribute 30% of the salary deferral elected by each employee up to a maximum deferral of 10% of annual salary. We contributed approximately $0.7 million and $0.5 million to the plan for the years ended December 31, 2021 and December 31, 2020, respectively.

Relationship with Major Custome

Relationship with Major Customers	12 Months Ended
	Dec. 31, 2021
Risks and Uncertainties [Abstract]
Relationship with Major Customers	Relationship with Major CustomersDuring the years ended December 31, 2021 and 2020, approximately 11% and 14%, respectively, of our consolidated revenues were attributable to contracts with the U.S. government. At December 31, 2021 and 2020, receivables with respect to contracts with the U.S. government represented 6% and 2% of total trade receivables, respectively.

Quarterly Results (unaudited)

Quarterly Results (unaudited)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Quarterly Results (unaudited)	Quarterly Results (unaudited) The following table sets forth our unaudited historical revenues, operating (loss)/income and net income by quarter during 2021 and 2020. Three Months Ended (Dollars in thousands, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenue 20,997 21,965 20,329 24,222 11,553 12,934 15,350 19,278 Gross margin 12,271 12,580 12,585 14,120 6,710 7,783 9,632 11,754 Operating (loss)/income (1,580) (2,034) (11) 1,035 (845) 508 1,787 (637) Net (loss)/income from continuing operations (1,059) (1,161) (343) 1,475 (707) 287 2,725 (945) Income from discontinued operations before income taxes 786 1,032 937 303 295 1,302 465 1,164 Income tax expense related to discontinued operations 45 101 238 203 704 219 87 284 Income from discontinued operations, net of income tax expense 741 931 699 100 (409) 1,083 378 881 Net (loss)/income (319) (230) 356 1,575 (1,116) 1,369 3,102 (64) Net (loss)/income attributable to common stockholders $ (319) $ (230) $ 356 $ 1,575 $ (1,116) $ 1,369 $ 3,102 $ (64) Net (loss)/income per share from continuing operations: Basic $ (0.03) $ (0.04) $ (0.01) $ 0.05 $ (0.03) $ 0.01 $ 0.10 $ (0.03) Diluted $ (0.03) $ (0.04) $ (0.01) $ 0.04 $ (0.03) $ 0.01 $ 0.08 $ (0.03) Net income per share from discontinued operations: Basic $ 0.02 $ 0.03 $ 0.02 $ — $ (0.01) $ 0.04 $ 0.01 $ 0.03 Diluted $ 0.02 $ 0.03 $ 0.02 $ — $ (0.01) $ 0.03 $ 0.01 $ 0.03 Net (loss)/income attributable to common stockholders: Basic $ (0.01) $ (0.01) $ 0.01 $ 0.05 $ (0.04) $ 0.05 $ 0.11 $ — Diluted $ (0.01) $ (0.01) $ 0.01 $ 0.05 $ (0.04) $ 0.04 $ 0.10 $ — Weighted average shares: Basic 30,380,345 30,589,249 30,809,896 32,014,330 28,039,080 28,246,840 28,291,297 30,159,322 Diluted 30,380,345 30,589,249 30,809,896 33,665,613 28,039,080 33,650,790 32,115,847 30,159,322

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventsOn March 8, 2022, we completed the sale of substantially all of our equity interests in our Luna Labs business to certain members of Luna Labs’ senior management team and a group of outside investors for an initial purchase price of $20.4 million before working capital and escrow adjustments and transaction fees. Total consideration included $13.0 million of cash received at closing, $2.5 million in the form of a convertible note and $1.7 million in the form of 60-day promissory notes. We can earn up to $1.0 million in future payments from Luna Labs upon the achievement by Luna Labs of certain financial goals. The estimated gain on the transaction is $14.0 million before tax. On March 10, 2022, we acquired NKT Photonics GmbH and LIOS Technology Inc. (collectively, “LIOS Sensing”) for €20.0 million, or $22.1 million. LIOS Sensing, based in Cologne, Germany and formerly owned by NKT Photonics A/S, provides temperature and strain sensing products which are highly complementary to our existing portfolio of fiber optic offerings.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2021
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 (in thousands) Balance Additions Deductions Balance at Year Ended December 31, 2020 Reserves deducted from assets to which they apply: Deferred tax valuation allowance $ 360 $ 2,850 $ (360) $ 2,850 Allowances for doubtful accounts $ 930 $ 127 $ (171) $ 886 $ 1,290 $ 2,977 $ (531) $ 3,736 Year Ended December 31, 2021 Reserves deducted from assets to which they apply: Deferred tax valuation allowance $ 2,850 $ 2,815 $ (1,859) $ 3,806 Allowances for doubtful accounts $ 886 $ 880 $ (841) $ 925 $ 3,736 $ 3,695 $ (2,700) $ 4,731 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. ◦ 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, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Luna Innovations Incorporated ("we," "our" 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, measurement and control products for the telecommunications and photonics industries; and distributed fiber optic sensing solutions that measure, or “sense,” the structures for industries ranging from aerospace, automotive, energy, oil and gas, security and infrastructure.
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. We reclassified $2,204 of previously separately reported acquisition related expenses in 2020 into selling, general, and administrative expense, to conform with current year presentation.
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.
Revenue Recognition	Revenue Recognition Products and Services 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 test and 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. 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 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. 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 use the residual approach. 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 costs rather than separate performance obligations. 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. In instances where acceptance of the product and installation services are specified by the customer, revenue is deferred until such required acceptance criteria have been met. 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 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 periods. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expenses. 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. 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. Research and Development Contracts 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 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.
Allowance for Uncollectible Receivables	Allowance for Uncollectible ReceivablesAccounts 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 bare on the ultimate collection of such amounts.
Cash and Cash Equivalents	Cash and Cash EquivalentsWe 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. Our foreign currency risk on cash and cash equivalents held outside of the US is not material. Cash equivalents at December 31, 2021 and 2020 included $1.0 million and $3.1 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, accounts payable and accrued liabilities approximate fair value because of the short-term nature of these instruments. The carrying amount of lease liabilities approximate fair value because these financial instruments bear interest at rates that approximate current market rates for
Property and Equipment, Net	Property and Equipment, net Property and equipment, net, 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, net	Intangible Assets, net 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 acquisition of OptaSense Holdings Ltd. ("OptaSense") in December 2020 and other companies prior to 2020. We amortize our identified intangible assets over their estimated useful lives ranging between one
Goodwill	Goodwill Goodwill is tested annually for impairment as of the first day of our fourth quarter (October 1st) and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Goodwill is tested for impairment at the reporting unit level. As of December 31, 2021, we had two reporting units, Luna and OptaSense, both of which contained goodwill. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair value. Our goodwill impairment evaluation consisted of a qualitative assessment. A qualitative assessment can be performed to determine whether it is more likely than not the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, we compare the fair value of each reporting unit to its carrying value using a quantitative assessment. If the fair value of the reporting unit exceeds its carrying value, goodwill is considered not impaired. If the fair value of the reporting unit is less than the carrying value, the difference is recorded as an impairment loss. For the quantitative assessment, the fair value of each reporting unit is estimated using a combination of an income approach using a discounted cash flow ("DCF") analysis and a market-based valuation approach based on comparable public company trading values. Determining the fair value of a reporting unit requires the exercise of significant management judgment, including the amount and timing of projected future revenues, earnings and cash flows after considering factors such as recent operating performance, general market and industry conditions, existing and expected future contracts, changes in working capital and long-term business plans and growth initiatives. The carrying value of each reporting unit includes the assets and liabilities employed in its operations and goodwill. There are no significant allocations of amounts held at the corporate level to the reporting units. We have not recorded any goodwill impairment for the years ended December 31, 2021 and 2020.
Research, Development and Engineering	Research, Development and EngineeringResearch, development and engineering expense not related to contract performance is expensed as incurred.
Impairment of Long-Lived Assets	Impairment 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	InventoryInventory 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 per Share	Net Income per Share Basic per share data is computed by dividing net income 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 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.
Stock-Based Compensation	Stock-Based Compensation We have two stock-based compensation plans, which are described further in Note 12. 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 basis over the requisite service period of the awards taking into account the effects of the expected exercise. We reduce stock-based compensation expense for the value of any forfeitures of unvested awards as such forfeitures occur.
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, greater than 50%, 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.
Foreign Currency	Foreign CurrencyFor our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss within equity. Gains and losses resulting from foreign currency transactions are included in earnings.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 Simplifying the Accounting for Income Taxes , which removes certain exceptions to the general principles of the accounting for income taxes and also improves consistent application of and simplification of other areas when accounting for income taxes. The guidance was effective for us beginning in the first quarter of fiscal year 2021. We adopted ASU 2019-12, effective January 1, 2021. The adoption of ASU 2019-12 did not have a significant impact on our consolidated financial statements. Recently Issued Pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, which requires companies to measure financial assets at an amortized cost basis to be presented at the net amount expected to be collected. The new accounting rules eliminate the probable initial recognition threshold and, instead, reflect an entity's current estimate of all expected credit losses. ASU 2016-13 is applicable to our trade receivables. This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting company. We have elected this extension and the effective date for us to adopt this standard will be for fiscal years beginning after December 15, 2022. We are currently in the process of evaluating the impact of ASU 2016-13, but we do not expect the adoption of these new accounting rules to have a significant impact on our consolidated financial statements.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2021
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

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Components of Discontinued Operations	The key components from discontinued operations related to the Luna Labs segment are as follows (in thousands) : Years ended December 31, 2021 2020 Revenues $ 23,722 $ 23,566 Cost of revenues 19,009 17,259 Gross profit 4,713 6,307 Selling, general and administrative expenses 1,634 1,493 Research, development & engineering expenses 24 — Loss on sale and disposal of property and equipment — 644 Operating income 3,055 4,170 Income tax expense 584 803 Net income from discontinued operations, net of tax $ 2,471 $ 3,367 Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets as of December 31, 2021 and 2020 consist of the following (in thousands) : December 31, 2021 December 31, 2020 Accounts receivable, net $ 2,967 $ 3,023 Inventory, net 282 535 Contract assets 4,051 3,291 Prepaid expenses and other current assets 132 76 Property and equipment, net (1) 330 391 Intangible assets, net (1) 165 115 Operating lease ROU asset (1) 4,884 5,297 Other assets (1) 141 271 Assets held for sale $ 12,952 $ 12,999 Accounts payable 1,042 1,542 Accrued liabilities 821 883 Contract liabilities 2,626 948 Current portion of operating lease ROU liability 388 346 Long-term portion of operating lease ROU liability (1) 4,826 5,214 Liabilities associated with assets held for sale $ 9,703 $ 8,933 (1) The classification of these line items remains long-term as of December 31, 2020. Accordingly, these lines are included within the respective non-current asset or liability held for sale line in the consolidated balance sheet as of December 31, 2020. (in thousands) : Years ended December 31, 2021 2020 Depreciation and amortization $ 112 $ 198 Share-based compensation 129 47

Business Acquisitions (Tables)

Business Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Allocation of the Purchase Consideration	The following table summarizes the allocation of the purchase consideration for the acquisition of OptaSense (excluding cash of $5.2 million): (in thousands) Accounts receivable $ 4,534 Contract assets 1,513 Inventory 12,793 Other current assets 1,026 Property and equipment 1,247 Identifiable intangible assets 11,263 Goodwill 8,520 Right of use asset 2,151 Other long-term assets 22 Accounts payable and accrued expenses (3,925) Contract liabilities (3,259) Other current liabilities (862) Long-term operating lease liability (1,335) Total purchase consideration $ 33,688
Schedule of Preliminary Identifiable Intangible Assets Acquired and their Estimated Lives	The identifiable intangible assets and their estimated useful lives were as follows: Estimated Useful Life (in thousands) Developed technology 10 years $ 7,379 Trade names and trademarks 15 years 2,580 Backlog 3 years 699 Customer relationships 5 years 605 $ 11,263
Unaudited Pro Forma Financial Information	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 acquisitions of OptaSense occurred on January 1, 2019, 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. For the year ended December 31, 2020 (in thousands) (unaudited) Revenue $ 103,971 Income from continuing operations $ 1,364

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Components of Accounts Receivable, Net	Accounts receivable, net, consists of the following: December 31, (in thousands) 2021 2020 Billed $ 21,790 $ 22,395 Other 48 419 21,838 22,814 Less: allowance for doubtful accounts (925) (886) Accounts receivable, net $ 20,913 $ 21,928

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
Components of Inventory	Components of inventory are as follows: December 31, (in thousands) 2021 2020 Finished goods $ 10,087 $ 11,547 Work-in-process 2,318 1,425 Raw materials 10,088 10,090 Inventory $ 22,493 $ 23,062

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and equipment, net, consists of the following: December 31, (in thousands) 2021 2020 Building $ 226 $ — Equipment 10,255 4,141 Furniture and fixtures 1,316 345 Software 72 106 Leasehold improvements 2,292 2,088 Construction in process 646 185 14,807 6,865 Less—accumulated depreciation (11,819) (3,948) Property and equipment, net $ 2,988 $ 2,917

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets, net consist of the following: December 31, (in thousands) Estimated Life 2021 2020 Patent costs 1 - 18 years $ 9,230 $ 3,595 Developed technology 5 - 10 years 14,440 17,344 In-process research and development N/A 2,732 1,580 Customer base 5 - 7 years 700 1,302 Trade names 3 - 15 years 550 3,122 Backlog 3 years — 696 27,652 27,639 Accumulated amortization (10,475) (7,645) Intangible assets, net $ 17,177 $ 19,994
Estimated Aggregate Amortization Based on Net Value of Intangible Assets	Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2021, for each of the next five years and beyond is as follows: (in thousands) Year Ending December 31, 2022 $ 2,896 2023 2,807 2024 2,403 2025 2,087 2026 1,756 2027 and beyond 5,228 $ 17,177

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in the carrying value of goodwill during the years ended December 31, 2021 and December 31, 2020 were as follows: (in thousands) Balance as of December 31, 2019 $ 10,542 Goodwill resulting from business acquisition 7,637 Measurement period adjustment (58) Balance as of December 31, 2020 18,121 Measurement period adjustment 929 Foreign currency translation (66) Balance as of December 31, 2021 $ 18,984

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: December 31, (in thousands) 2021 2020 Accrued compensation $ 6,798 $ 8,221 Contingent consideration 225 225 Accrued professional fees 503 825 Accrued income tax 328 281 Current portion of finance lease liability 48 48 Accrued interest 17 42 Accrued royalties — 456 Accrued liabilities-other 1,339 1,227 Total accrued liabilities $ 9,258 $ 11,325

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt consists of the following: Years ended December 31, (in thousands) 2021 2020 Term Loan (net of debt issuance costs of $44, 2.43% at December 31, 2021) $ 8,290 $ 12,434 Revolving Loan (2.43% at December 31, 2021) 7,550 7,550 15,840 19,984 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 11,673 $ 15,817
Schedule of Maturities of Long-term Debt	Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2022 $ 4,167 2023 11,673 Total $ 15,840
Schedule of Interest Expense	Interest expense, net for the years ended December 31, 2021 and 2020 consisted of the following: Years ended December 31, (in thousands) 2021 2020 Interest expense on Term Loans $ 247 $ 26 Interest expense on Revolving Line of Credit 164 16 Amortization of debt issuance costs 44 2 Other interest expense 27 5 Interest income (3) (24) Total interest expense, net $ 479 $ 25

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Schedule of Other Information Related to Leases	Rent expense is recognized on a straight-line basis over the life of the lease. Rent expense consists of the following: Year Ended (in thousands) December 31, 2021 December 31, 2020 Operating lease costs $ 2,303 $ 1,647 Variable rent costs (188) 133 Total rent expense $ 2,115 $ 1,780 Other information related to leases is as follows: Year Ended (in thousands, except weighted-average data) December 31, 2021 December 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 48 $ 46 Interest on lease liabilities 4 5 Total finance lease cost $ 52 $ 51 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,115 $ 1,647 Finance cash flows from finance leases $ 48 $ 53 Right-of-use assets obtained in exchange for new operating lease liabilities $ 865 $ 10,740 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ 247 Weighted-average remaining lease term (years) - operating leases 8 6.3 Weighted-average remaining lease term (years) - finance leases 3.9 4.9 Weighted-average discount rate - operating leases 9 % 5 % Weighted-average discount rate - finance leases 3 % 2 %
Schedule of Future Minimum Lease Payments	Future minimum lease payments under non-cancelable operating and finance leases were as follows as of December 31, 2021: (in thousands) Year Ending December 31, Operating Leases Finance Leases 2022 $ 2,270 $ 53 2023 1,785 53 2024 1,293 53 2025 609 48 2026 104 — 2027 and beyond — — Total future minimum lease payments 6,061 207 Less: Interest 451 11 Total lease liabilities $ 5,610 $ 196 Current lease liability $ 2,101 $ 48 Long-term lease liability 3,509 148 Total lease liabilities $ 5,610 $ 196

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2021
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 Weighted Aggregate (in thousands, except share, per share and weighted-average data) Balance at January 1, 2019 3,160,397 $1.18 - 7.37 $ 2.72 $ 14,460 1,835,799 $ 2.28 $ 9,198 Forfeited (108,515) $1.27 - 7.59 3.66 Exercised (792,466) $1.21 - 4.43 2.80 Granted 70,000 $6.27 - 7.59 6.65 Balance at December 31, 2020 2,329,416 $1.18 - 7.59 $ 2.76 $ 16,574 1,408,119 $ 2.26 $ 10,734 Forfeited (58,860) $3.37 - $11.40 5.91 Exercised (818,267) $1.18 - $7.59 2.73 Granted 80,735 $11.00 - $11.94 9.13 Balance at December 31, 2021 1,533,024 $1.18 - 11.40 $ 3.00 $ 8,439 1,050,177 $ 2.45 $ 6,314
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, 2021 2020 Risk-free interest rate range 0.975% 0.685% Expected life of option-years 7 7 Expected stock price volatility 55% 63% Expected dividend yield —% —%
Activity of Stock Option by Exercise Price Range	Options Outstanding Options Exercisable Range of Options Weighted Weighted Options Weighted Weighted Year ended December 31, 2020 $1.18 - 7.59 2,329,416 6.04 $2.76 1,408,119 4.73 $2.2568 Year ended December 31, 2021 $1.18 - 11.40 1,533,024 4.73 $3.00 1,050,177 3.95 $2.45 (in thousands) Total Intrinsic Value of Total Fair Value of Year ended December 31, 2020 $ 3,322 $ 3,178 Year ended December 31, 2021 $ 6,288 $ 2,571
Activity of Restricted Stock	The following table summarizes the number of unvested shares underlying our restricted stock awards and RSUs and the value of our unvested restricted stock awards and RSUs in 2021 and 2020: (in thousands, except share and weighted-average share data) Number of Unvested Shares Weighted Average Grant Date Fair Value Aggregate Grant Date Fair Value of Unvested Shares Balance at January 1, 2020 502,097 $ 3.32 $ 1,665 Granted 149,302 6.48 967 Vested (221,932) 3.19 (708) Forfeitures — — — Balance at December 31, 2020 429,467 $ 4.48 $ 1,924 Granted 281,384 10.71 3,014 Vested (234,367) 4.22 (989) Forfeitures (7,500) 11.94 (90) Balance at December 31, 2021 468,984 $ 8.58 $ 3,859
Activity of Restricted Stock Units	The following is a summary of our stock unit activity under the Deferred Compensation Plan for 2021 and 2020: (in thousands, except stock units and weighted-average share data) Number of Stock Units Weighted Average Grant Date Fair Value per Share Intrinsic Value Outstanding Balance, December 31, 2019 629,003 2.09 $ 4,585 Granted 53,757 6.62 Issued (47,377) 1.65 Balance, December 31, 2020 635,383 2.41 $ 6,278 Granted 40,576 10.6 Issued (47,377) 2.40 Balance, December 31, 2021 628,582 3.06 $ 5,334

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The details are listed in the table below for the years ended December 31, 2021 and 2020: Years ended December 31, (in thousands) 2021 2020 Total Revenue by Geographic Location United States $ 45,334 $ 33,706 Asia 17,183 16,181 Europe 16,928 7,144 Canada, Central and South America 8,068 2,084 Total $ 87,513 $ 59,115 Total Revenue by Major Customer Type Sales to the U.S. government $ 9,525 $ 8,196 U.S. direct commercial sales and other 35,410 25,487 Foreign commercial sales & other 42,578 25,432 Total $ 87,513 $ 59,115 Total Revenue by Contract Type Fixed-price contracts $ 84,490 $ 56,266 Cost-type contracts 3,023 2,849 Total $ 87,513 $ 59,115 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 69,522 $ 50,347 Goods/services transferred over time 17,991 8,768 Total $ 87,513 $ 59,115 Total Revenue by Major Products/Services Technology development $ 7,136 $ 7,211 Test, measurement and sensing systems 78,528 50,881 Other 1,849 1,023 Total $ 87,513 $ 59,115
Schedule of Components of Contract Balances	The following table shows the components of our contract balances as of December 31, 2021 and 2020: December 31, (in thousands) 2021 2020 Contract assets $ 5,166 $ 4,139 Contract liabilities (4,649) (6,147) Net contract assets/(liabilities) $ 517 $ (2,008)

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Components of Income Tax Expense (Benefit)	Income tax expense/(benefit) from continuing operations consisted of the following for the periods indicated: Years ended December 31, (in thousands) 2021 2020 Current: Federal $ 28 $ (559) State (40) 305 Foreign 118 27 Current $ 106 $ (227) Deferred: Federal (1,692) (70) State (390) (161) Foreign $ (4) $ 3 Deferred $ (2,086) $ (228) Income tax benefit $ (1,980) $ (455)
Deferred Tax Assets and Liabilities	Deferred tax assets and liabilities consist of the following components: Years ended December 31, (in thousands) 2021 2020 Bad debt and inventory reserve $ 405 $ 430 UNICAP 130 113 Deferred revenue 156 109 ASC842 Lease Accounting (DTA) 1,236 1,454 ASC842 Lease Accounting (DTL) (1,090) (1,279) Depreciation and amortization (3,012) (3,450) Net operating loss carryforwards 6,984 5,767 Accrued liabilities 559 552 Stock-based compensation 899 829 R&D Credit Carryforward 500 — Other 360 14 Total $ 7,127 $ 4,539 Valuation allowance (3,806) (2,850) Net deferred tax asset $ 3,321 $ 1,689
Reconciliation of Income Tax Benefit (Expense)	The benefit from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our (loss)/income from continuing operations before income taxes as follows for the periods indicated: Years ended December 31, 2021 2020 Income tax expense at federal statutory rate 21.00 % 21.00 % Effect of foreign operations 28.79 1.28 State taxes, net of federal tax effects 9.48 5.30 Change in valuation allowance (24.66) 19.24 Provision to return adjustments (0.04) (1.86) Meals and entertainment (0.11) 0.72 Other permanent differences (14.71) 49.34 Equity compensation 34.43 (40.60) Current year R&D credit 8.80 (33.99) Prior year R&D credit 1.52 (100.07) Foreign derived intangible income benefit 3.31 — Reserve for uncertain tax positions (2.73) 23.53 Other (0.56) 5.83 Income tax benefit 64.52 % (50.28) %
Summary of Unrecognized Tax Benefits	The following table summarizes the activity related to our gross unrecognized tax benefits: Years ended December 31, (in thousands) 2021 2020 Unrecognized tax benefits, beginning of period $ 211 $ — Increases related to current period tax positions 75 81 Increases related to prior period tax positions 9 130 Unrecognized tax benefits, end of period $ 295 $ 211

Quarterly Results (unaudited) (

Quarterly Results (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	The following table sets forth our unaudited historical revenues, operating (loss)/income and net income by quarter during 2021 and 2020. Three Months Ended (Dollars in thousands, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenue 20,997 21,965 20,329 24,222 11,553 12,934 15,350 19,278 Gross margin 12,271 12,580 12,585 14,120 6,710 7,783 9,632 11,754 Operating (loss)/income (1,580) (2,034) (11) 1,035 (845) 508 1,787 (637) Net (loss)/income from continuing operations (1,059) (1,161) (343) 1,475 (707) 287 2,725 (945) Income from discontinued operations before income taxes 786 1,032 937 303 295 1,302 465 1,164 Income tax expense related to discontinued operations 45 101 238 203 704 219 87 284 Income from discontinued operations, net of income tax expense 741 931 699 100 (409) 1,083 378 881 Net (loss)/income (319) (230) 356 1,575 (1,116) 1,369 3,102 (64) Net (loss)/income attributable to common stockholders $ (319) $ (230) $ 356 $ 1,575 $ (1,116) $ 1,369 $ 3,102 $ (64) Net (loss)/income per share from continuing operations: Basic $ (0.03) $ (0.04) $ (0.01) $ 0.05 $ (0.03) $ 0.01 $ 0.10 $ (0.03) Diluted $ (0.03) $ (0.04) $ (0.01) $ 0.04 $ (0.03) $ 0.01 $ 0.08 $ (0.03) Net income per share from discontinued operations: Basic $ 0.02 $ 0.03 $ 0.02 $ — $ (0.01) $ 0.04 $ 0.01 $ 0.03 Diluted $ 0.02 $ 0.03 $ 0.02 $ — $ (0.01) $ 0.03 $ 0.01 $ 0.03 Net (loss)/income attributable to common stockholders: Basic $ (0.01) $ (0.01) $ 0.01 $ 0.05 $ (0.04) $ 0.05 $ 0.11 $ — Diluted $ (0.01) $ (0.01) $ 0.01 $ 0.05 $ (0.04) $ 0.04 $ 0.10 $ — Weighted average shares: Basic 30,380,345 30,589,249 30,809,896 32,014,330 28,039,080 28,246,840 28,291,297 30,159,322 Diluted 30,380,345 30,589,249 30,809,896 33,665,613 28,039,080 33,650,790 32,115,847 30,159,322

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands, shares in Millions	Dec. 01, 2020	Dec. 31, 2021USD ($)Installmentplan	Dec. 31, 2020USD ($)shares
Significant Accounting Policies [Line Items]
Acquisition related expense			$ 2,204
Allowance for uncollectible receivables		$ 925	886
Cash in excess of FDIC insured limits		$ 9,500	7,500
Number of reporting units | Installment		2
Research, development and engineering		$ 10,190	$ 6,714
Common stock equivalents included for diluted per share data (in shares) | shares			1.9
Stock based compensation plan | plan		2
Minimum
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life		1 year
Maximum
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life		15 years
LIBOR | PNC Bank Facility | Minimum | Term Loan
Significant Accounting Policies [Line Items]
Variable basis rate	1.75%
LIBOR | PNC Bank Facility | Maximum | Term Loan
Significant Accounting Policies [Line Items]
Variable basis rate	2.25%
U.S. Treasury Obligations
Significant Accounting Policies [Line Items]
Cash equivalents		$ 1,000	$ 3,100

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, 2021
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

Discontinued Operations - Disco

Discontinued Operations - Discontinued Operations Related To Luna Lab Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale and disposal of property and equipment									$ 0	$ 644
Income tax expense									584	339
Net income from discontinued operations, net of tax	$ 100	$ 699	$ 931	$ 741	$ 881	$ 378	$ 1,083	$ (409)	2,471	1,931
Discontinued Operations, Held-for-sale | Luna Labs
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues									23,722	23,566
Cost of revenues									19,009	17,259
Gross profit									4,713	6,307
Selling, general and administrative expenses									1,634	1,493
Research, development & engineering expenses									24	0
Loss on sale and disposal of property and equipment									0	644
Operating income									3,055	4,170
Income tax expense									584	803
Net income from discontinued operations, net of tax									$ 2,471	3,367
Discontinued Operations, Held-for-sale or Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense										(500)
Net income from discontinued operations, net of tax										$ 1,400

Discontinued Operations - Asset

Discontinued Operations - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract]
Assets held for sale	$ 12,952	$ 6,540
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract]
Liabilities associated with assets held for sale	9,703	3,719
Luna Labs | Discontinued Operations, Held-for-sale
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract]
Accounts receivable, net	2,967	3,023
Inventory, net	282	535
Contract assets	4,051	3,291
Prepaid expenses and other current assets	132	76
Property and equipment, net	330	391
Intangible assets, net	165	115
Operating lease ROU asset	4,884	5,297
Other assets	141	271
Assets held for sale	12,952	12,999
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract]
Accounts payable	1,042	1,542
Accrued liabilities	821	883
Contract liabilities	2,626	948
Current portion of operating lease ROU liability	388	346
Long-term portion of operating lease ROU liability	4,826	5,214
Liabilities associated with assets held for sale	$ 9,703	$ 8,933

Discontinued Operations - Cash

Discontinued Operations - Cash Flow And Non-Cash Information (Details) - Luna Labs - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization	$ 112	$ 198
Share-based compensation	$ 129	$ 47

Business Acquisitions - Additio

Business Acquisitions - Additional Information (Details) $ in Thousands, £ in Millions	Dec. 03, 2020USD ($)	Dec. 03, 2020GBP (£)	Oct. 29, 2020USD ($)	Jun. 30, 2021USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Business Acquisition [Line Items]
Amortization expense					$ 3,100	$ 1,700
Goodwill					18,984	18,121	$ 10,542
Measurement period adjustment					$ 929	(58)
Acquisition related expense						2,204
OptaSense Holdings Limited
Business Acquisition [Line Items]
Aggregate consideration	$ 38,900	£ 29
Income recognized since acquisition						1,500
Operating loss recognized since acquisition						(900)
Amortization expense						100
Goodwill	8,520
Cash acquired	$ 5,200
Measurement period adjustment				$ 900
Acquisition related expense						$ 2,200
OptaSense Holdings Limited | Developed technology | Measurement Input, Discount Rate
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	17.50%	17.50%
OptaSense Holdings Limited | Trademarks and Trade Names | Measurement Input, Discount Rate
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	17.50%	17.50%
OptaSense Holdings Limited | Backlog | Measurement Input, Discount Rate
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	16.50%	16.50%
New Ride Technologies
Business Acquisition [Line Items]
Aggregate consideration			$ 600
Cash paid			400
Contingent consideration			200
Goodwill			20
Contingent consideration, high			$ 100

Business Acquisitions - Allocat

Business Acquisitions - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 03, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 18,984	$ 18,121		$ 10,542
OptaSense Holdings Limited
Business Acquisition [Line Items]
Accounts receivable			$ 4,534
Contract assets			1,513
Inventory			12,793
Other current assets			1,026
Property and equipment			1,247
Identifiable intangible assets			11,263
Goodwill			8,520
Right of use asset			2,151
Other long-term assets			22
Accounts payable and accrued expenses			(3,925)
Contract liabilities			(3,259)
Other current liabilities			(862)
Long-term operating lease liability			(1,335)
Total purchase consideration			$ 33,688

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Preliminary Identifiable Intangible Assets Acquired (Details) - OptaSense Holdings Limited $ in Thousands	Dec. 03, 2020USD ($)
Business Acquisition [Line Items]
Identifiable intangible assets	$ 11,263
Developed technology
Business Acquisition [Line Items]
Estimated useful life	10 years
Identifiable intangible assets	$ 7,379
Trademarks and Trade Names
Business Acquisition [Line Items]
Estimated useful life	15 years
Identifiable intangible assets	$ 2,580
Backlog
Business Acquisition [Line Items]
Estimated useful life	3 years
Identifiable intangible assets	$ 699
Customer base
Business Acquisition [Line Items]
Estimated useful life	5 years
Identifiable intangible assets	$ 605

Business Acquisitions - Pro For

Business Acquisitions - Pro Forma Consolidated Results of Operations (Details) - OptaSense Holdings Limited $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Revenue	$ 103,971
Income from continuing operations	$ 1,364

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Billed	$ 21,790	$ 22,395
Other	48	419
Total, gross	21,838	22,814
Less: allowance for doubtful accounts	(925)	(886)
Accounts receivable, net	$ 20,913	$ 21,928

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 10,087	$ 11,547
Work-in-process	2,318	1,425
Raw materials	10,088	10,090
Inventory	$ 22,493	$ 23,062

Property and Equipment, net - C

Property and Equipment, net - Components of Property and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Building	$ 226	$ 0
Equipment	10,255	4,141
Furniture and fixtures	1,316	345
Software	72	106
Leasehold improvements	2,292	2,088
Construction in process	646	185
Property, plant and equipment, gross, total	14,807	6,865
Less—accumulated depreciation	(11,819)	(3,948)
Property and equipment, net	$ 2,988	$ 2,917

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 1.4	$ 1

Intangible Assets, net - Summar

Intangible Assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 27,652	$ 27,639
Accumulated amortization	(10,475)	(7,645)
Intangible assets, net	17,177	19,994
Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	9,230	3,595
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	14,440	17,344
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	2,732	1,580
Customer base
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	700	1,302
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	$ 550	3,122
Backlog
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	3 years
Finite lived intangible assets gross	$ 0	$ 696
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
Minimum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	5 years
Minimum | Customer base
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	5 years
Minimum | Trade names
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	15 years
Maximum | Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	18 years
Maximum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	10 years
Maximum | Customer base
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	7 years
Maximum | Trade names
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset, useful life	15 years

Intangible Assets, net - Additi

Intangible Assets, net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3.1	$ 1.7

Intangible Assets, net - Estima

Intangible Assets, net - Estimated Aggregate Amortization (Details) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 2,896
2023	2,807
2024	2,403
2025	2,087
2026	1,756
2027 and beyond	5,228
Finite lived intangible assets, net	$ 17,177

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning Balance	$ 18,121	$ 10,542
Goodwill resulting from business acquisition		7,637
Measurement period adjustment	929	(58)
Foreign currency translation	(66)
Ending Balance	$ 18,984	$ 18,121

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued compensation	$ 6,798	$ 8,221
Contingent consideration	225	225
Accrued professional fees	503	825
Accrued income tax	328	281
Current portion of finance lease ROU liability	48	48
Accrued interest	17	42
Accrued royalties	0	456
Accrued liabilities-other	1,339	1,227
Total accrued liabilities	$ 9,258	$ 11,325
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued liabilities	Total accrued liabilities

Debt - Long Term Debt (Details)

Debt - Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total	$ 15,840	$ 19,984
Current portion of long-term debt obligations	(4,167)	(4,167)
Long-term debt obligations	11,673	15,817
Term Loan
Debt Instrument [Line Items]
Total	8,290	12,434
Net of debt issuance costs	$ 44
Debt instrument, stated percentage	2.43%
Revolving Loan
Debt Instrument [Line Items]
Total	$ 7,550	$ 7,550
Debt instrument, stated percentage	2.43%

Debt - Additional Information (

Debt - Additional Information (Details)	Dec. 01, 2020USD ($)payment	Apr. 28, 2020USD ($)
Unsecured Debt | Payment Protection Plan
Debt Instrument [Line Items]
Debt, face amount		$ 4,500,000
PNC Bank Facility | Term Loan
Debt Instrument [Line Items]
Number of quarterly payments | payment	12
PNC Bank Facility | Term Loan | Loan Agreement
Debt Instrument [Line Items]
Debt, face amount	$ 12,500,000
PNC Bank Facility | Term Loan | LIBOR | Minimum
Debt Instrument [Line Items]
Variable basis rate	1.75%
PNC Bank Facility | Term Loan | LIBOR | Maximum
Debt Instrument [Line Items]
Variable basis rate	2.25%
PNC Bank Facility | Revolving Loan
Debt Instrument [Line Items]
Line of credit facility, commitment fee percentage	0.20%
Termination notice	3 days
PNC Bank Facility | Revolving Loan | Loan Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 15,000,000
Draw on line of credit	$ 7,600,000
PNC Bank Facility | Revolving Loan | LIBOR | Minimum
Debt Instrument [Line Items]
Variable basis rate	1.75%
PNC Bank Facility | Revolving Loan | LIBOR | Maximum
Debt Instrument [Line Items]
Variable basis rate	2.25%
PNC Bank Facility | Letter of Credit | Loan Agreement
Debt Instrument [Line Items]
Debt, face amount	$ 3,000,000

Debt - Maturities (Details)

Debt - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 4,167
2023	11,673
Total	$ 15,840	$ 19,984

Debt - Interest Expense (Detail

Debt - Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 44	$ 2
Other interest expense	27	5
Interest income	(3)	(24)
Total interest expense, net	479	25
Term Loan
Debt Instrument [Line Items]
Interest expense	247	26
Revolving Loan
Debt Instrument [Line Items]
Interest expense	$ 164	$ 16

Leases - Additional Information

Leases - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Lessee, Lease, Description [Line Items]
Operating leases contract terms	1 year
Finance leases contract terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating leases contract terms	5 years
Finance leases contract terms	4 years
Office Equipment
Lessee, Lease, Description [Line Items]
Useful life	5 years

Leases - Rent Expense (Details)

Leases - Rent Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease costs	$ 2,303	$ 1,647
Variable rent costs	(188)	133
Total rent expense	$ 2,115	$ 1,780

Leases - Future Lease Payments

Leases - Future Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 2,270
2023	1,785
2024	1,293
2025	609
2026	104
2027 and beyond	0
Total future minimum lease payments	6,061
Less: Interest	451
Total lease liabilities	5,610
Current lease liability	$ 2,101	$ 1,876
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities
Long-term lease liability	$ 3,509	5,034
Finance Leases
2022	53
2023	53
2024	53
2025	48
2026	0
2027 and beyond	0
Total future minimum lease payments	207
Less: Interest	11
Total lease liabilities	196
Current portion of finance lease ROU liability	48	$ 48
Long-term lease liability	$ 148

Leases - Other Lease Informatio

Leases - Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost:
Finance lease ROU asset	$ 48	$ 46
Interest on lease liabilities	4	5
Total finance lease cost	52	51
Other information:
Operating cash flows from operating leases	2,115	1,647
Finance cash flows from finance leases	48	53
Right-of-use assets obtained in exchange for new operating lease liabilities	865	10,740
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0	$ 247
Weighted-average remaining lease term (years) - operating leases	8 years	6 years 3 months 18 days
Weighted-average remaining lease term (years) - finance leases	3 years 10 months 24 days	4 years 10 months 24 days
Weighted-average discount rate - operating leases	9.00%	5.00%
Weighted-average discount rate - finance leases	3.00%	2.00%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions	Apr. 07, 2020shares	Apr. 30, 2016shares	Dec. 31, 2021USD ($)installment$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock based compensation expense | $			$ 3	$ 2.1
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			$ 11.30	$ 6.65
Options outstanding, remaining contractual term			7 years
Weighted average remaining service period related to compensation recognition			1 year 7 months 6 days
Unamortized stock option expense to be recognized | $			$ 1.2
Restricted Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation vesting installments | installment			3
Shares issued (in shares)			235,634
Share-based compensation, vested (in shares)			45,750
Share-based compensation, percentage			150.00%
Share-based compensation, revenue and operating Income (in shares)			41,300
Restricted Stock | Employees
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares issued (in shares)			281,384
Restricted Stock | Employees
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares vested (in shares)			93,333
Restricted Stock Units (RSUs) | Member of Board of Directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period			1 year
Shares issued (in shares)			3,384	10,652
Shares vested (in shares)			10,652	11,600
Restricted Stock Units (RSUs) | Employees
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation vesting installments | installment			3
Shares vested (in shares)			91,232
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			1 year 7 months 6 days
Shares issued (in shares)			281,384	149,302
Share-based compensation, vested (in shares)			468,984	429,467	502,097
Shares vested (in shares)			234,367	221,932
Unamortized restricted stock and restricted stock units expense to be recognized | $			$ 2.7
Employee Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares authorized (in shares)	1,200,000
Withholding period	6 months
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
2020 Employee Stock Purchase Plan | Stock Options
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation expense | $			$ 0.4	$ 0.2
Deferred Compensation Plan | Restricted Stock Units (RSUs)
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period			1 year
Employee Director Compensation Plan | Restricted Stock Units (RSUs)
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation, vested (in shares)			23,130

Stockholders' Equity - Activity

Stockholders' Equity - Activity of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Options Outstanding, Number of Shares
Beginning balance (in shares)	2,329,416	3,160,397
Forfeited (in shares)	(58,860)	(108,515)
Exercised (in shares)	(818,267)	(792,466)
Granted (in shares)	80,735	70,000
Ending balance (in shares)	1,533,024	2,329,416	3,160,397
Price per Share Range
Outstanding, lower limit (in dollars per share)	$ 1.18	$ 1.18	$ 1.18
Outstanding, upper limit (in dollars per share)	11.40	7.59	7.37
Forfeited, lower limit (in dollars per share)	3.37	1.27
Forfeited, upper limit (in dollars per share)	11.40	7.59
Exercised, lower limit (in dollars per share)	1.18	1.21
Exercised, upper limit (in dollars per share)	7.59	4.43
Granted, lower limit (in dollars per share)	11	6.27
Granted, upper limit (in dollars per share)	11.94	7.59
Options Outstanding, Weighted Average Exercise Price
Beginning balance (in dollars per share)	2.76	2.72
Forfeited (in dollars per share)	5.91	3.66
Exercised (in dollars per share)	2.73	2.80
Granted (in dollars per share)	9.13	6.65
Ending balance (in dollars per share)	$ 3	$ 2.76	$ 2.72
Additional Disclosures
Options outstanding, aggregate intrinsic value	$ 8,439	$ 16,574	$ 14,460
Exercisable stock options (in shares)	1,050,177	1,408,119	1,835,799
Options exercisable, weighted average exercise price (in dollars per share)	$ 2.45	$ 2.26	$ 2.28
Options exercisable, aggregate intrinsic value	$ 6,314	$ 10,734	$ 9,198

Stockholders' Equity - Assumpti

Stockholders' Equity - Assumptions Used to Estimate Fair Value of Options Granted (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Risk-free interest rate range	0.975%	0.685%
Expected life of option-years	7 years	7 years
Expected stock price volatility	55.00%	63.00%
Expected dividend yield	0.00%	0.00%

Stockholders' Equity - Activi_2

Stockholders' Equity - Activity of Stock Option by Exercise Price Range (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 1.18	$ 1.18	$ 1.18
Range of exercise prices, upper range (in dollars per share)	$ 11.40	$ 7.59	$ 7.37
Options outstanding (in shares)	1,533,024	2,329,416	3,160,397
Options outstanding, weighted average exercise price (in dollars per share)	$ 3	$ 2.76	$ 2.72
Options exercisable (in shares)	1,050,177	1,408,119	1,835,799
Weighted average exercise price of options exercisable (in dollars per share)	$ 2.45	$ 2.26	$ 2.28
Total Intrinsic Value of Options Exercised	$ 6,288	$ 3,322
Total Fair Value of Options Vested	$ 2,571	$ 3,178
Exercise Price Range One
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)		$ 1.18
Range of exercise prices, upper range (in dollars per share)		$ 7.59
Options outstanding (in shares)		2,329,416
Options outstanding, weighted average remaining life in years		6 years 14 days
Options outstanding, weighted average exercise price (in dollars per share)		$ 2.76
Options exercisable (in shares)		1,408,119
Options exercisable, weighted average remaining life in years		4 years 8 months 23 days
Weighted average exercise price of options exercisable (in dollars per share)		$ 2.2568
Exercise Price Range Two
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 1.18
Range of exercise prices, upper range (in dollars per share)	$ 11.40
Options outstanding (in shares)	1,533,024
Options outstanding, weighted average remaining life in years	4 years 8 months 23 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 3
Options exercisable (in shares)	1,050,177
Options exercisable, weighted average remaining life in years	3 years 11 months 12 days
Weighted average exercise price of options exercisable (in dollars per share)	$ 2.45

Stockholders' Equity - Activi_3

Stockholders' Equity - Activity of Restricted Stock Issuances (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Unvested Shares
Beginning balance (in shares)	429,467	502,097
Granted (in shares)	281,384	149,302
Vested (in shares)	(234,367)	(221,932)
Forfeitures (in shares)	(7,500)	0
Ending balance (in shares)	468,984	429,467
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 4.48	$ 3.32
Granted (in dollars per share)	10.71	6.48
Vested (in dollars per share)	4.22	3.19
Forfeitures (in dollars per share)	11.94	0
Ending balance (in dollars per share)	$ 8.58	$ 4.48
Aggregate Grant Date Fair Value of Unvested Shares
Aggregate grant date fair value of unvested shares, beginning balance	$ 1,924	$ 1,665
Granted	3,014	967
Vested	(989)	(708)
Forfeitures	(90)	0
Aggregate grant date fair value of unvested shares, ending balance	$ 3,859	$ 1,924

Stockholders' Equity - Activi_4

Stockholders' Equity - Activity of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - Deferred Compensation Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Stock Units
Beginning balance (in shares)	635,383	629,003
Granted (in shares)	40,576	53,757
Issued (in shares)	(47,377)	(47,377)
Ending balance (in shares)	628,582	635,383
Weighted Average Grant Date Fair Value per Share
Beginning balance (in dollars per share)	$ 2.41	$ 2.09
Granted (in dollars per share)	10.6	6.62
Issued (in dollars per share)	2.40	1.65
Ending balance (in dollars per share)	$ 3.06	$ 2.41
Intrinsic Value Outstanding
Aggregate grant date fair value of unvested shares, beginning balance	$ 6,278	$ 4,585
Aggregate grant date fair value of unvested shares, ending balance	$ 5,334	$ 6,278

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchases (Details) - Share Repurchase Program - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased during period, shares (in shares)	44,051	60,184
Stock repurchased during period, value	$ 0.5	$ 0.5
Sale of stock, price per share (in dollars per share)	$ 10.41	$ 7.51

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 24,222	$ 20,329	$ 21,965	$ 20,997	$ 19,278	$ 15,350	$ 12,934	$ 11,553	$ 87,513	$ 59,115
Technology development
Disaggregation of Revenue [Line Items]
Revenue									7,136	7,211
Test, measurement and sensing systems
Disaggregation of Revenue [Line Items]
Revenue									78,528	50,881
Other
Disaggregation of Revenue [Line Items]
Revenue									1,849	1,023
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue									69,522	50,347
Goods/services transferred over time
Disaggregation of Revenue [Line Items]
Revenue									17,991	8,768
Fixed-price contracts
Disaggregation of Revenue [Line Items]
Revenue									84,490	56,266
Cost-type contracts
Disaggregation of Revenue [Line Items]
Revenue									3,023	2,849
Sales to the U.S. government
Disaggregation of Revenue [Line Items]
Revenue									9,525	8,196
U.S. direct commercial sales and other
Disaggregation of Revenue [Line Items]
Revenue									35,410	25,487
Foreign commercial sales & other
Disaggregation of Revenue [Line Items]
Revenue									42,578	25,432
United States
Disaggregation of Revenue [Line Items]
Revenue									45,334	33,706
Asia
Disaggregation of Revenue [Line Items]
Revenue									17,183	16,181
Europe
Disaggregation of Revenue [Line Items]
Revenue									16,928	7,144
Canada, Central and South America
Disaggregation of Revenue [Line Items]
Revenue									$ 8,068	$ 2,084

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Increase in net contract assets (liabilities)	$ 2,500
Contract assets	5,166	$ 4,139
Contract liabilities	(4,649)	(6,147)
Net contract assets/(liabilities)	$ 517	$ (2,008)

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) $ in Millions	Dec. 31, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation amount	$ 38.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	1 year
Remaining performance obligation percentage	65.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	1 year
Remaining performance obligation percentage	29.00%

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal									$ 28	$ (559)
State									(40)	305
Foreign									118	27
Current tax asset									106	(227)
Deferred:
Federal									(1,692)	(70)
State									(390)	(161)
Foreign									(4)	3
Deferred tax asset									(2,086)	(228)
Income tax benefit	$ 203	$ 238	$ 101	$ 45	$ 284	$ 87	$ 219	$ 704	$ (1,980)	$ (455)

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Bad debt and inventory reserve	$ 405	$ 430
UNICAP	130	113
Deferred revenue	156	109
ASC842 Lease Accounting (DTA)	1,236	1,454
ASC842 Lease Accounting (DTL)	(1,090)	(1,279)
Depreciation and amortization	(3,012)	(3,450)
Net operating loss carryforwards	6,984	5,767
Accrued liabilities	559	552
Stock-based compensation	899	829
R&D Credit Carryforward	500	0
Other	360	14
Total	7,127	4,539
Valuation allowance	(3,806)	(2,850)
Net deferred tax asset	$ 3,321	$ 1,689

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax (Benefit) Expense (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense at federal statutory rate	21.00%	21.00%
Effect of foreign operations	28.79%	1.28%
State taxes, net of federal tax effects	9.48%	5.30%
Change in valuation allowance	(24.66%)	19.24%
Provision to return adjustments	(0.04%)	(1.86%)
Meals and entertainment	(0.11%)	0.72%
Other permanent differences	(14.71%)	49.34%
Equity compensation	34.43%	(40.60%)
Current year R&D credit	8.80%	(33.99%)
Prior year R&D credit	1.52%	(100.07%)
Foreign derived intangible income benefit	3.31%	0.00%
Reserve for uncertain tax positions	(2.73%)	23.53%
Other	(0.56%)	5.83%
Income tax benefit	64.52%	(50.28%)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Valuation allowance	$ 3,806	$ 2,850
Net operating loss carryforwards	1,500
Unrecognized tax benefits	295	$ 211	$ 0
Optasense US
Income Taxes [Line Items]
Net operating loss carryforwards	3,600
API
Income Taxes [Line Items]
Net operating loss carryforwards	$ 4,800

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning of period	$ 211	$ 0
Increases related to current period tax positions	75	81
Increases related to prior period tax positions	9	130
Unrecognized tax benefits, end of period	$ 295	$ 211

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2021

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Aug. 31, 2017

Commitments and Contingencies Disclosure [Line Items]

Loss on sale of discontinued operations

$ (100)

$ (699)

$ (931)

$ (741)

$ (881)

$ (378)

$ (1,083)

$ 409

$ (2,471)

$ (1,931)

Performance Guarantee

Commitments and Contingencies Disclosure [Line Items]

Guarantor obligations

900

900

Tunable Lasers

Commitments and Contingencies Disclosure [Line Items]

Non-cancelable purchase order commitment

800

$ 1,500

$ 1,600

800

1,600

Non-cancelable purchase order delivery period (in months)

18 months

Non-cancelable purchase order commitment remained

$ 1,800

$ 1,800

Disposed of by Sale | HSOR

Commitments and Contingencies Disclosure [Line Items]

Amount of the escrow balance received

$ 600

Loss on sale of discontinued operations

$ 1,400

Disposed of by Sale | HSOR | Macom

Commitments and Contingencies Disclosure [Line Items]

Amount of the escrow balance received

$ 1,900

Disposed of by Sale | HSOR | Macom

Commitments and Contingencies Disclosure [Line Items]

Escrow deposits related to indemnity claims

$ 2,500

$ 4,000

Amount of the escrow balance received

$ 1,500

Employee Profit Sharing Plan (D

Employee Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Percentage of employer's matching contributions to a defined contribution plan that vests	30.00%
Percentage of employees' gross pay for which employer contributes a matching contribution	10.00%
Contribution to employee compensation plan by employer	$ 0.7	$ 0.5

Relationship with Major Custo_2

Relationship with Major Customers (Details) - Sales to the U.S. government - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Consolidated Revenues
Concentration Risk [Line Items]
Concentration percentage	11.00%	14.00%
Billed Trade Receivables
Concentration Risk [Line Items]
Concentration percentage	6.00%	2.00%

Quarterly Results (unaudited)_2

Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 24,222	$ 20,329	$ 21,965	$ 20,997	$ 19,278	$ 15,350	$ 12,934	$ 11,553	$ 87,513	$ 59,115
Gross margin	14,120	12,585	12,580	12,271	11,754	9,632	7,783	6,710	51,556	35,880
Operating (loss)/income	1,035	(11)	(2,034)	(1,580)	(637)	1,787	508	(845)	(2,590)	813
Net (loss)/income from continuing operations	1,475	(343)	(1,161)	(1,059)	(945)	2,725	287	(707)
Income from discontinued operations before income taxes	303	937	1,032	786	1,164	465	1,302	295
Income tax expense related to discontinued operations	203	238	101	45	284	87	219	704	(1,980)	(455)
Income from discontinued operations, net of income tax expense	100	699	931	741	881	378	1,083	(409)	2,471	1,931
Net income	1,575	356	(230)	(319)	(64)	3,102	1,369	(1,116)	1,382	3,291
Net (loss)/income attributable to common stockholders	$ 1,575	$ 356	$ (230)	$ (319)	$ (64)	$ 3,102	$ 1,369	$ (1,116)	$ 1,382	$ 3,291
Net (loss)/income per share from continuing operations:
Basic (in dollars per share)	$ 0.05	$ (0.01)	$ (0.04)	$ (0.03)	$ (0.03)	$ 0.10	$ 0.01	$ (0.03)	$ (0.03)	$ 0.04
Diluted (in dollars per share)	0.04	(0.01)	(0.04)	(0.03)	(0.03)	0.08	0.01	(0.03)	(0.03)	0.04
Net income per share from discontinued operations:
Basic (in dollars per share)	0	0.02	0.03	0.02	0.03	0.01	0.04	(0.01)	0.08	0.06
Diluted (in dollars per share)	0	0.02	0.03	0.02	0.03	0.01	0.03	(0.01)	0.08	0.06
Net (loss)/income attributable to common stockholders:
Basic (in dollars per share)	0.05	0.01	(0.01)	(0.01)	0	0.11	0.05	(0.04)	0.04	0.11
Diluted (in dollars per share)	$ 0.05	$ 0.01	$ (0.01)	$ (0.01)	$ 0	$ 0.10	$ 0.04	$ (0.04)	$ 0.04	$ 0.10
Weighted average shares:
Basic (in shares)	32,014,330	30,809,896	30,589,249	30,380,345	30,159,322	28,291,297	28,246,840	28,039,080	31,658,085	30,669,874
Diluted (in shares)	33,665,613	30,809,896	30,589,249	30,380,345	30,159,322	32,115,847	33,650,790	28,039,080	31,658,085	32,578,757

Subsequent Event (Details)

Subsequent Event (Details) $ in Thousands, £ in Millions	Mar. 10, 2022USD ($)	Mar. 10, 2022GBP (£)	Mar. 08, 2022USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Subsequent Event [Line Items]
Proceeds from sale of discontinued operations				$ 0	$ 600
Subsequent Event | LIOS Sensing
Subsequent Event [Line Items]
Aggregate consideration	$ 22,100	£ 20
Subsequent Event | Luna Labs
Subsequent Event [Line Items]
Initial purchase price			$ 20,400
Proceeds from sale of discontinued operations			13,000
Gain on disposal			14,000
Contingent consideration			1,000
Subsequent Event | Luna Labs | Notes Receivable
Subsequent Event [Line Items]
Financing receivable			2,500
Subsequent Event | Luna Labs | Note Receivable 2
Subsequent Event [Line Items]
Financing receivable			$ 1,700

Valuation and Qualifying Acco_2

Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	$ 3,736	$ 1,290
Additions	3,695	2,977
Deductions	(2,700)	(531)
Balance at end of period	4,731	3,736
Deferred tax valuation allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	2,850	360
Additions	2,815	2,850
Deductions	(1,859)	(360)
Balance at end of period	3,806	2,850
Allowances for doubtful accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	886	930
Additions	880	127
Deductions	(841)	(171)
Balance at end of period	$ 925	$ 886