Luna Innovations (LUNA) 10-Q 16 May 22 2022 Q1 Quarterly report Financial data

Cover page

Cover page - shares	3 Months Ended
	Mar. 31, 2022	May 12, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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 First Street 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 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 Common Stock, Shares Outstanding		32,424,713
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001239819
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 10,788	$ 17,128
Accounts receivable, net	26,261	20,913
Contract assets	4,889	5,166
Inventory	28,891	22,493
Prepaid expenses and other current assets	7,152	3,793
Assets held for sale	0	12,952
Total current assets	77,981	82,445
Property and equipment, net	4,398	2,988
Intangible assets, net	22,332	17,177
Goodwill	29,199	18,984
Operating lease right-of-use assets	5,544	5,075
Other non-current assets	3,872	247
Deferred tax asset	1,339	3,321
Total assets	144,665	130,237
Current liabilities:
Current portion of long-term debt obligations	4,167	4,167
Accounts payable	2,617	2,809
Accrued and other current liabilities	17,312	9,258
Contract liabilities	4,047	4,649
Current portion of operating lease liabilities	2,458	2,101
Liabilities associated with assets held for sale	0	9,703
Total current liabilities	30,601	32,687
Long-term debt obligations, net of current portion	18,087	11,673
Long-term portion of operating lease liabilities	3,526	3,509
Other long-term liabilities	434	445
Total liabilities	52,648	48,314
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, par value $0.001, 100,000,000 shares authorized, 34,143,411 and 33,855,725 shares issued, 32,361,122 and 32,116,270 shares outstanding at March 31, 2022 and December 31, 2021, respectively	34	34
Treasury stock at cost, 1,782,289 and 1,744,026 shares at March 31, 2022 and December 31, 2021, respectively	(5,526)	(5,248)
Additional paid-in capital	99,906	98,745
Accumulated deficit	(1,994)	(11,575)
Accumulated other comprehensive loss	(403)	(33)
Total stockholders’ equity	92,017	81,923
Total liabilities and stockholders’ equity	$ 144,665	$ 130,237

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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)	34,143,411	33,855,725
Common stock, outstanding (in shares)	32,361,122	32,116,270
Treasury stock (in shares)	1,782,289	1,744,026

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 22,481,000	$ 20,997,000
Cost of revenue	8,202,000	8,726,000
Gross profit	14,279,000	12,271,000
Operating expense:
Selling, general and administrative	14,102,000	10,934,000
Research, development and engineering	2,543,000	2,917,000
Total operating expense	16,645,000	13,851,000
Operating loss	(2,366,000)	(1,580,000)
Other income/(expense):
Other income	21,000	0
Interest expense	(113,000)	(143,000)
Total other expense	(92,000)	(143,000)
Loss from continuing operations before income taxes	(2,458,000)	(1,723,000)
Income tax benefit	(1,115,000)	(664,000)
Net loss from continuing operations	(1,343,000)	(1,059,000)
Income from discontinued operations, net of income tax of $1,022 and $46	3,000	740,000
Gain on sale of discontinued operations, net of tax of $3,117	10,921,000	0
Net income from discontinued operations	10,924,000	740,000
Net income/(loss)	$ 9,581,000	$ (319,000)
Net loss per share from continuing operations:
Basic (in dollars per share)	$ (0.04)	$ (0.03)
Diluted (in dollars per share)	(0.04)	(0.03)
Net income per share from discontinued operations:
Basic (in dollars per share)	0.34	0.02
Diluted (in dollars per share)	0.34	0.02
Net income/(loss) per share attributable to common stockholders:
Basic (in dollars per share)	0.30	(0.01)
Diluted (in dollars per share)	$ 0.30	$ (0.01)
Weighted average shares:
Basic (in shares)	32,243,082	31,350,629
Diluted (in shares)	32,243,082	31,350,629

Consolidated Statements of Op_2

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Discontinued operations tax effect	$ 1,022	$ 46
Tax effect of gain from discontinued operation	$ 3,117	$ 3,117

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income/(loss)	$ 9,581,000	$ (319,000)
Other comprehensive (loss)/income	(370,000)	1,123,000
Total other comprehensive income	$ 9,211,000	$ 804,000

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss/ Income
Beginning balance (in shares) at Dec. 31, 2020		31,024,537	(1,699,975)
Beginning 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)		(314,697)
Exercise of stock options	845			845
Share-based compensation (in shares)		(74,565)
Share-based compensation	657			657
Purchase of treasury stock (in shares)		(20,810)	20,810
Purchase of treasury stock	(202)		$ (202)
Net income/(loss)	(319)				(319)
Foreign currency translation adjustment	1,123					1,123
Ending balance (in shares) at Mar. 31, 2021		31,392,989	(1,720,785)
Ending balance at Mar. 31, 2021	76,546	$ 33	$ (4,991)	93,905	(13,276)	875
Beginning balance (in shares) at Dec. 31, 2021		32,116,270	(1,744,026)
Beginning balance at Dec. 31, 2021	81,923	$ 34	$ (5,248)	98,745	(11,575)	(33)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		(143,392)	0
Exercise of stock options	220		$ 0	220
Share-based compensation (in shares)		(139,723)	0
Share-based compensation	941		$ 0	941
Purchase of treasury stock (in shares)		(38,263)	38,263
Purchase of treasury stock	(278)		$ (278)
Net income/(loss)	9,581				9,581
Foreign currency translation adjustment	(370)					(370)
Ending balance (in shares) at Mar. 31, 2022		32,361,122	(1,782,289)
Ending balance at Mar. 31, 2022	$ 92,017	$ 34	$ (5,526)	$ 99,906	$ (1,994)	$ (403)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows used in operating activities
Net income/(loss)	$ 9,581	$ (319)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,179	1,231
Share-based compensation	1,132	657
Gain on sale of discontinued operations, net of tax	(10,921)	0
Deferred taxes	220	0
Tax benefit from release of valuation allowance	0	262
Change in assets and liabilities
Accounts receivable	(1,795)	1,439
Contract assets	(1,144)	(729)
Inventory	(1,416)	(1,617)
Other current assets	(1,636)	(847)
Other long term assets	2	(80)
Accounts payable and accrued and other current liabilities	2,287	(1,939)
Contract liabilities	171	(992)
Deferred revenue	(33)	0
Net cash used in operating activities	(2,373)	(2,934)
Cash flows used in investing activities
Acquisition of property and equipment	(915)	(361)
Intangible property costs	38
Intangible property costs		(48)
Proceeds from sale of property and equipment	25	0
Proceeds from sale of discontinued operations	12,973	0
Acquisition of LIOS	(22,085)	0
Net cash used in investing activities	(9,964)	(409)
Cash flows provided by/(used in) financing activities
Payments on finance lease obligations	(12)	(12)
Payments of debt obligations	(1,036)	(1,036)
Repurchase of common stock	(278)	(202)
Proceeds from ESPP	85	0
Proceeds from the exercise of options	220	845
Proceeds from borrowings under revolver	7,450	0
Net cash provided by/(used in) financing activities	6,429	(405)
Effect of exchange rate changes on cash and cash equivalents	(432)	176
Net decrease in cash and cash equivalents	(6,340)	(3,572)
Cash and cash equivalents—beginning of period	17,128	15,366
Cash and cash equivalents—end of period	10,788	11,794
Supplemental disclosure of cash flow information
Cash paid for interest	108	125
Cash received for income tax refund, net	$ 342	$ 87

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Nature of Operations Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003. We are a leader in advanced optical technology, providing 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, oil and gas, security and infrastructure. Our communications test and control products help customers test their fiber optic networks and assemblies with speed and precision in both lab and production environments, accelerating the development of fiber optic products and assuring accurate testing of optical components like photonic integrated circuits and coherent receivers, which are both critical elements of meeting the world’s exponentially growing demand for bandwidth. Our distributed fiber optic sensing products help designers and manufacturers more efficiently develop new and innovative products by measuring stress, strain, and temperature at a high resolution for new designs or manufacturing processes. Our distributed fiber optic sensing products ensure the safety and structural integrity or operational health of critical assets in the field, by monitoring stress, strain, and vibration in large civil and industrial infrastructure such as bridges, roads, pipelines and borders. We also provide applied research services, primarily under federally funded development programs, that leverage our sensing and instrumentation technologies to meet the specific needs and applications of our customers. Unaudited Interim Financial Information The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial statements and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. The unaudited consolidated interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments, consisting of only normal recurring accruals considered necessary to present fairly our financial position at March 31, 2022, results of operations, comprehensive income/(loss) and changes in stockholders' equity for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The consolidated balance sheet as of December 31, 2021 was derived from our audited consolidated financial statements. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 14, 2022. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, as of October 1 of each year, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Purchased intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives. We analyze the reasonableness of the remaining useful life whenever events or circumstances indicate that the carrying amount may not be recoverable to determine whether the carrying value has been impaired. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels: • Level 1—Quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which 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. The Company has certain assets and liabilities that have been recorded at fair value on a non-recurring basis following an acquisition. Refer to Note 3, Business Acquisition , for the allocation of the total consideration based upon the fair value of the assets acquired and liabilities assumed as of the acquisition date. Reportable Segments Prior to September 30, 2021, we were organized into two main reporting segments, our Lightwave segment and our Luna Labs segment. We now have one reportable segment, Lightwave, following the determination that our Luna Labs segment met held-for-sale and discontinued operations accounting criteria at the end of the third quarter of 2021. On March 8, 2022, we completed the sale of substantially all of our equity interests in Luna Labs. Prior to the sale, our Luna Labs segment performed applied research principally in the areas of sensing and instrumentation, advanced materials, optical technologies and health sciences. See Note 2, Sale of Discontinued Operations, for additional disclosure related to discontinued operations and assets held for sale. The remaining segment, Lightwave, develops, manufactures and markets distributed fiber optic sensing products and fiber optic communications test and control products. Net Income/(Loss) Per Share Basic per share data is computed by dividing our net income/(loss) by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income/(loss) by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. For the three months ended March 31, 2022 and 2021, all potentially dilutive securities for stock options and restricted stock unites were excluded as their impact would be anti-dilutive. Foreign Currency For our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal period 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 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 to have a material impact on our consolidated financial statements.

Sale of Discontinued Operations

Sale of Discontinued Operations	3 Months Ended
	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Sale of Discontinued Operations	Sale of Discontinued Operations On 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 expenses. 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 60-day promissory notes and earn out receivable are included within the prepaid expenses and other current assets line item and the convertible note is included in other non-current assets line item of the consolidated balance sheet. The gain on the transaction was $10.9 million, net of taxes of $3.1 million. We have separately reported the financial results of Luna Labs as discontinued operations in our consolidated statements of operations for the three months ended March 31, 2022 and 2021, respectively, and presented the related assets and liabilities as held for sale in the consolidated balance sheets as of December 31, 2021. These changes have been applied to all periods presented. 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 business are as follows (in thousands) : Three Months Ended March 31, 2022 2021 Revenues $ 5,108 $ 5,302 Cost of revenues 3,692 4,144 Gross profit 1,416 1,158 Selling, general and administrative expenses 391 372 Operating income 1,025 786 Income tax expense 1,022 46 Net income from discontinued operations, net of tax $ 3 $ 740 Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets as of December 31, 2021 consist of the following (in thousands) : December 31, 2021 Accounts receivable, net $ 2,967 Inventory, net 282 Contract assets 4,051 Prepaid expenses and other current 132 Property and equipment, net 330 Intangible assets, net 165 Operating lease ROU asset 4,884 Other assets 141 Assets held for sale $ 12,952 Accounts payable 1,042 Accrued and other current liabilities 821 Contract liabilities 2,626 Current portion of operating lease liabilities 388 Long-term portion of operating lease liabilities 4,826 Liabilities associated with assets held for sale $ 9,703 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 three months ended March 31, 2022 and 2021 (in thousands) : Three Months Ended March 31, 2022 2021 Depreciation and amortization $ 23 $ 31 Share-based compensation 66 10 Acquisition of property and equipment 34 50

Business Acquisitions

Business Acquisitions	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business Acquisition On March 10, 2022, we entered into and closed a Share Purchase Agreement (the “Share Purchase Agreement”) with NKT Photonics A/S ("NKT Photonics") to purchase all of the shares of NKT Photonics GmbH and LIOS Technologies Inc. (collectively "LIOS") for aggregate consideration of $22.1 million (€20.0 million). LIOS is a provider of distributed fiber optic monitoring solutions for power cable, pipelines, oilfield services, security, highways, railways and industrial fire detection systems. The acquisition of LIOS provides us with long range, fully distributed temperature and strain sensing capabilities, intellectual property, products and expertise that are highly complementary to Luna, which we believe will accelerate our technology and overall growth roadmap. The Share Purchase Agreement contains customary representations and warranties and indemnities. The LIOS acquisition has 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. Due to the timing of the acquisition relative to the interim balance sheet date, the purchase price allocation of LIOS is based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available. The following table summarizes the preliminary allocation of the purchase consideration of the LIOS acquisition: (in thousands) Accounts receivable $ 3,001 Inventory 5,388 Prepaid expenses and other current assets 92 Property and equipment 858 Intangible assets 5,994 Goodwill 10,322 Operating lease right-of-use asset 512 Accounts payable (1,217) Accrued and other current liabilities (815) Current portion of operating lease liability (322) Deferred income tax liability (1,537) Long-term portion of operating lease liability (191) Total purchase consideration $ 22,085 The identifiable intangible assets and their estimated useful lives were as follows: Estimated Useful Life (in thousands) Developed technology 6 years 1,998 Customer relationships 8 years 3,330 Trade names and trademarks 7 years 333 Backlog 1 year 333 $ 5,994 LIOS's developed technology primarily consists of its distributed fiber optic monitoring solutions that provide a wide range of applications using fully distributed temperature and strain sensing. The developed technologies were valued using the "relief from royalty method" under the income approach. The relief from royalty 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 14.5% 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 LIOS 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 rate of 14.5% was used to discount the cash flows to the present value. Backlog arises from unfulfilled purchase or sales order contracts. The value of LIOS's backlog as of the acquisition date was calculated using the "multi-period excess earnings" method under the income approach. A discount rate of 13.5% 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. LIOS's customer relationships were valued using the "multi-period excess earnings" method under the income approach. This method reflects the present value of the projected cash flows that are expected by the existing customers less charges representing the contribution of other assets to those cash flows. A discount rate of 15.5% was used to discount these cash flows to the present value.

Intangible assets, net

Intangible assets, net	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, net	Intangible assets, net Intangible assets, net at March 31, 2022 and December 31, 2021 consisted of the following: Estimated Life March 31, 2022 December 31, 2021 (in thousands) Patent costs 1 - 18 years $ 9,187 $ 9,230 Developed technology 6 - 10 years 16,446 14,440 In-process research and development N/A 2,732 2,732 Customer base 5 - 8 years 4,030 700 Trade names 7 - 15 years 883 550 Backlog 1 - 3 years 333 — 33,611 27,652 Accumulated amortization (11,279) (10,475) $ 22,332 $ 17,177 Amortization expense for the three months ended March 31, 2022 was $0.8 million. Estimated aggregate amortization, based on the net value of intangible assets at March 31, 2022, for each of the next five years and beyond is as follows (in thousands) : Year Ending December 31, 2022 (remaining 9 months) $ 2,793 2023 3,774 2024 3,282 2025 2,947 2026 2,830 2027 & beyond 6,706 Total $ 22,332

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The change in the carrying value of goodwill during the three months ended March 31, 2022 was as follows: (in thousands) Balance as of December 31, 2021 18,984 Acquisition of LIOS 10,322 Foreign currency translation (107) Balance as of March 31, 2022 $ 29,199

Inventory

Inventory	3 Months Ended
	Mar. 31, 2022
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 were as follows: March 31, December 31, (in thousands) Finished goods $ 10,099 $ 10,087 Work-in-process 3,553 2,318 Raw materials 15,239 10,088 Total inventory 28,891 22,493

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued LiabilitiesAccrued liabilities consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Accrued compensation $ 7,985 $ 6,798 Contingent consideration 100 225 Accrued professional fees 1,360 503 Accrued income tax 3,012 328 Current portion of finance lease liability 49 48 Acquisition and divestiture related liabilities 2,015 — Accrued liabilities - other 2,791 1,356 Total accrued and other current liabilities $ 17,312 $ 9,258

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Term Loan (net of debt issuance costs of $38 and $44, 2.13% and 2.48% at March 31, 2022 and December 31, 2021, respectively) $ 7,254 $ 8,290 Revolving Loan (2.09% at March 31, 2022 and December 31, 2021) 15,000 7,550 22,254 15,840 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 18,087 $ 11,673 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 pursuant to a revolving line of credit note. During the three months ended March 31, 2022, we borrowed the remaining $7.4 million of availability of our Revolving Line in conjunction with the acquisition of LIOS. 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, 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 our covenants as of March 31, 2022. 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. Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2022 (remaining 9 months) $ 3,125 2023 19,129 Total $ 22,254

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases We recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet for those leases classified as operating or finance leases with terms greater than twelve months. We have operating leases for our facilities, which have remaining terms ranging from 1 to 5 years. Most of our leases do not have an option to extend the lease period beyond the stated term unless the new term is agreed to 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 3 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 finance lease ROU assets are included within the other non-current assets line item of the consolidated balance sheets. The current and long-term portion of the ROU lease liabilities are included within the accrued and other current liabilities and other long-term liabilities line items of the consolidated balance sheets, respectively. 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 March 31, 2022, 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: Three Months Ended March 31, (in thousands) 2022 2021 Operating lease costs $ 575 $ 544 Variable rent costs (50) (47) Total rent expense $ 525 $ 497 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of March 31, 2022 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2022 (remaining 9 months) $ 2,043 $ 39 2023 2,143 53 2024 1,387 53 2025 695 48 2026 143 — 2027 and beyond — — Total future minimum lease payments 6,411 193 Less: imputed interest 427 8 Total lease liabilities $ 5,984 $ 185 Current lease liability $ 2,458 $ 49 Long-term lease liability 3,526 136 Total lease liabilities $ 5,984 $ 185 Other information related to leases is as follows: Three Months Ended March 31, (in thousands, except weighted-average data) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 13 $ 14 Interest on lease liabilities (1) 1 Total finance lease cost $ 12 $ 15 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 577 $ 544 Finance cash flows from finance leases $ 12 $ 12 Right-of-use assets obtained in exchange for new operating lease liabilities $ 759 $ 1,274 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (years) - operating leases 7.3 6.2 Weighted-average remaining lease term (years) - finance leases 3.7 4.7 Weighted-average discount rate - operating leases 5 % 6 % Weighted-average discount rate - finance leases 3 % 2 %
Leases	Leases We recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet for those leases classified as operating or finance leases with terms greater than twelve months. We have operating leases for our facilities, which have remaining terms ranging from 1 to 5 years. Most of our leases do not have an option to extend the lease period beyond the stated term unless the new term is agreed to 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 3 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 finance lease ROU assets are included within the other non-current assets line item of the consolidated balance sheets. The current and long-term portion of the ROU lease liabilities are included within the accrued and other current liabilities and other long-term liabilities line items of the consolidated balance sheets, respectively. 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 March 31, 2022, 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: Three Months Ended March 31, (in thousands) 2022 2021 Operating lease costs $ 575 $ 544 Variable rent costs (50) (47) Total rent expense $ 525 $ 497 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of March 31, 2022 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2022 (remaining 9 months) $ 2,043 $ 39 2023 2,143 53 2024 1,387 53 2025 695 48 2026 143 — 2027 and beyond — — Total future minimum lease payments 6,411 193 Less: imputed interest 427 8 Total lease liabilities $ 5,984 $ 185 Current lease liability $ 2,458 $ 49 Long-term lease liability 3,526 136 Total lease liabilities $ 5,984 $ 185 Other information related to leases is as follows: Three Months Ended March 31, (in thousands, except weighted-average data) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 13 $ 14 Interest on lease liabilities (1) 1 Total finance lease cost $ 12 $ 15 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 577 $ 544 Finance cash flows from finance leases $ 12 $ 12 Right-of-use assets obtained in exchange for new operating lease liabilities $ 759 $ 1,274 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (years) - operating leases 7.3 6.2 Weighted-average remaining lease term (years) - finance leases 3.7 4.7 Weighted-average discount rate - operating leases 5 % 6 % Weighted-average discount rate - finance leases 3 % 2 %

Capital Stock and Share-Based C

Capital Stock and Share-Based Compensation	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Capital Stock and Share-Based Compensation	Capital Stock and Share-Based Compensation Stock Options For the three months ended March 31, 2022 and 2021, we recognized $0.2 million and $0.3 million, respectively, in share-based compensation expense related to stock options, which is included in our selling, general and administrative expense in the accompanying consolidated statement of operations. We expect to recognize $0.9 million in share-based compensation expense over the weighted-average remaining service period of 1.4 years for stock options outstanding as of March 31, 2022. Restricted Stock Units During the three months ended March 31, 2022 and 2021, we granted 255,842 and 79,250 time-based restricted stock units ("RSUs"), respectively. The general terms of the RSUs are similar to awards previously granted by us. The weighted average fair value of the time-based RSUs granted during the three months ended March 31, 2022 was $7.70 per share. The fair value of each RSU was determined based on the market price of our stock on the date of grant. In addition, pursuant to our Deferred Compensation Plan, non-employee directors can elect to defer the receipt of some or all of the equity compensation that they receive for board and committee service. During the three months ended March 31, 2022, and 2021, we granted 8,436 and 4,658 RSUs, respectively, pursuant to the Deferred Compensation Plan. The general terms of these RSUs are similar to awards previously granted by us. The weighted average fair value of these RSUs granted during the three months ended March 31, 2022 and 2021, was $8.46 and $9.42 per share, respectively. The fair value of each RSU was determined based on the market price of our stock on the date of grant. For the three months ended March 31, 2022 and 2021, we recognized $0.7 million and $0.3 million, respectively, in share-based compensation expense related to RSUs, which is included in our selling, general and administrative expense in the accompanying consolidated statement of operations. We expect to recognize $4.2 million in share-based compensation expense over the weighted-average remaining service period of 2.4 years for RSUs outstanding as of March 31, 2022. Employee Stock Purchase Plan ("ESPP")

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic locations, 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 three months ended March 31, 2022 and 2021: Three Months Ended March 31, (in thousands) 2022 2021 (unaudited) Total Revenue by Geographic Location United States $ 10,516 $ 10,579 Asia 4,830 3,672 Europe 4,907 3,977 Canada, Central and South America 2,228 2,769 All Others — — Total $ 22,481 $ 20,997 Total Revenue by Major Customer Type Sales to the U.S. government $ 1,635 $ 2,414 U.S. direct commercial sales and other 8,881 8,165 Foreign commercial sales & other 11,965 10,418 Total $ 22,481 $ 20,997 Total Revenue by Contract Type Fixed-price contracts $ 21,853 $ 20,405 Cost-type contracts 628 592 Total $ 22,481 $ 20,997 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 18,609 $ 16,839 Goods/services transferred over time 3,872 4,158 Total $ 22,481 $ 20,997 Total Revenue by Major Products/Services Technology development $ 1,597 $ 2,140 Test, measurement and sensing systems 20,096 18,519 Other 788 338 Total $ 22,481 $ 20,997 Contract Balances Our contract assets consist of unbilled amounts for research contracts as well as custom product contracts. Contract liabilities include excess billings, subcontractor accruals, warranty expense, extended warranty revenue, and customer deposits. During the three months ended March 31, 2022, we recognized $1.5 million of revenue that was included in contract liabilities as of December 31, 2021. The following table shows the components of our contract balances as of March 31, 2022 and December 31, 2021: (in thousands) March 31, 2022 December 31, 2021 Contract assets $ 4,889 $ 5,166 Contract liabilities 4,047 4,649 Net contract assets $ 842 $ 517 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 $45.8 million at March 31, 2022. We expect to satisfy $36.1 million of the performance obligations in 2022, $7.7 million in 2023 and the remainder by 2026.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesOur provision for income taxes is based upon the estimated annual effective tax rate for the year applied to the current period income plus the tax effect of any significant or unusual items, discrete events or changes in tax law. Fluctuations in the distribution of pre-tax income among our operating subsidiaries can lead to fluctuations of the effective tax rate in the consolidated financial statements. We and our subsidiaries file U.S. federal income tax returns and income tax returns in various state, local, and foreign jurisdictions. For the three months ended March 31, 2022, our effective income tax rate was 45.36% compared to 38.54% for the three months ended March 31, 2021. The effective tax rate for 2022 differed from the federal statutory rate of 21%, primarily as a result of research and development ("R&D") tax credits and favorable impact from the net Global Intangible Low Taxed Inclusion ("GILTI"). The effective tax rate for 2021 differed from the federal statutory rate of 21%, primarily as a result of the excess tax benefit on stock compensation vesting and exercises.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are from time to time involved in certain legal proceedings in the ordinary course of conducting our business. While the ultimate liability pursuant to these actions cannot currently be determined, we believe it is not reasonably possible that these legal proceedings will have a material adverse effect on our financial position or results of operations. We executed non-cancelable purchase orders totaling $3.9 million in 2020 and 2021 for multiple shipments of tunable lasers to be delivered over an 18-month period. At March 31, 2022, approximately $0.6 million of these commitments remained and are expected to be delivered by August 24, 2022.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial statements and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. The unaudited consolidated interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments, consisting of only normal recurring accruals considered necessary to present fairly our financial position at March 31, 2022, results of operations, comprehensive income/(loss) and changes in stockholders' equity for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The consolidated balance sheet as of December 31, 2021 was derived from our audited consolidated financial statements. The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 14, 2022.
Goodwill and Intangible Assets	Goodwill and Intangible AssetsGoodwill and intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, as of October 1 of each year, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Purchased intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives. We analyze the reasonableness of the remaining useful life whenever events or circumstances indicate that the carrying amount may not be recoverable to determine whether the carrying value has been impaired.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels: • Level 1—Quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which 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. The Company has certain assets and liabilities that have been recorded at fair value on a non-recurring basis following an acquisition. Refer to Note 3, Business Acquisition
Reportable Segments	Reportable Segments Prior to September 30, 2021, we were organized into two main reporting segments, our Lightwave segment and our Luna Labs segment. We now have one reportable segment, Lightwave, following the determination that our Luna Labs segment met held-for-sale and discontinued operations accounting criteria at the end of the third quarter of 2021. On March 8, 2022, we completed the sale of substantially all of our equity interests in Luna Labs. Prior to the sale, our Luna Labs segment performed applied research principally in the areas of sensing and instrumentation, advanced materials, optical technologies and health sciences. See Note 2, Sale of Discontinued Operations, for additional disclosure related to discontinued operations and assets held for sale. The remaining segment, Lightwave, develops, manufactures and markets distributed fiber optic sensing products and fiber optic communications test and control products.
Net Income/(Loss) Per Share	Net Income/(Loss) Per Share Basic per share data is computed by dividing our net income/(loss) by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income/(loss) by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. For the three months ended March 31, 2022 and 2021, all potentially dilutive securities for stock options and restricted stock unites were excluded as their impact would be anti-dilutive.
Foreign Currency	Foreign CurrencyFor our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal period 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 Issued Pronouncements, Not Yet Adopted	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 to have a material impact on our consolidated financial statements.

Sale of Discontinued Operatio_2

Sale of Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	The key components from discontinued operations related to the Luna Labs business are as follows (in thousands) : Three Months Ended March 31, 2022 2021 Revenues $ 5,108 $ 5,302 Cost of revenues 3,692 4,144 Gross profit 1,416 1,158 Selling, general and administrative expenses 391 372 Operating income 1,025 786 Income tax expense 1,022 46 Net income from discontinued operations, net of tax $ 3 $ 740 Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets as of December 31, 2021 consist of the following (in thousands) : December 31, 2021 Accounts receivable, net $ 2,967 Inventory, net 282 Contract assets 4,051 Prepaid expenses and other current 132 Property and equipment, net 330 Intangible assets, net 165 Operating lease ROU asset 4,884 Other assets 141 Assets held for sale $ 12,952 Accounts payable 1,042 Accrued and other current liabilities 821 Contract liabilities 2,626 Current portion of operating lease liabilities 388 Long-term portion of operating lease liabilities 4,826 Liabilities associated with assets held for sale $ 9,703 (in thousands) : Three Months Ended March 31, 2022 2021 Depreciation and amortization $ 23 $ 31 Share-based compensation 66 10 Acquisition of property and equipment 34 50

Business Acquisitions (Tables)

Business Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Allocation of Purchase Consideration	The following table summarizes the preliminary allocation of the purchase consideration of the LIOS acquisition: (in thousands) Accounts receivable $ 3,001 Inventory 5,388 Prepaid expenses and other current assets 92 Property and equipment 858 Intangible assets 5,994 Goodwill 10,322 Operating lease right-of-use asset 512 Accounts payable (1,217) Accrued and other current liabilities (815) Current portion of operating lease liability (322) Deferred income tax liability (1,537) Long-term portion of operating lease liability (191) Total purchase consideration $ 22,085
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 6 years 1,998 Customer relationships 8 years 3,330 Trade names and trademarks 7 years 333 Backlog 1 year 333 $ 5,994

Intangible assets, net (Tables)

Intangible assets, net (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets, net at March 31, 2022 and December 31, 2021 consisted of the following: Estimated Life March 31, 2022 December 31, 2021 (in thousands) Patent costs 1 - 18 years $ 9,187 $ 9,230 Developed technology 6 - 10 years 16,446 14,440 In-process research and development N/A 2,732 2,732 Customer base 5 - 8 years 4,030 700 Trade names 7 - 15 years 883 550 Backlog 1 - 3 years 333 — 33,611 27,652 Accumulated amortization (11,279) (10,475) $ 22,332 $ 17,177
Schedule of Estimated Aggregate Amortization Based on Net Value of Intangible Assets	Estimated aggregate amortization, based on the net value of intangible assets at March 31, 2022, for each of the next five years and beyond is as follows (in thousands) : Year Ending December 31, 2022 (remaining 9 months) $ 2,793 2023 3,774 2024 3,282 2025 2,947 2026 2,830 2027 & beyond 6,706 Total $ 22,332

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in the carrying value of goodwill during the three months ended March 31, 2022 was as follows: (in thousands) Balance as of December 31, 2021 18,984 Acquisition of LIOS 10,322 Foreign currency translation (107) Balance as of March 31, 2022 $ 29,199

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Components of inventory were as follows: March 31, December 31, (in thousands) Finished goods $ 10,099 $ 10,087 Work-in-process 3,553 2,318 Raw materials 15,239 10,088 Total inventory 28,891 22,493

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Accrued compensation $ 7,985 $ 6,798 Contingent consideration 100 225 Accrued professional fees 1,360 503 Accrued income tax 3,012 328 Current portion of finance lease liability 49 48 Acquisition and divestiture related liabilities 2,015 — Accrued liabilities - other 2,791 1,356 Total accrued and other current liabilities $ 17,312 $ 9,258

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Term Loan (net of debt issuance costs of $38 and $44, 2.13% and 2.48% at March 31, 2022 and December 31, 2021, respectively) $ 7,254 $ 8,290 Revolving Loan (2.09% at March 31, 2022 and December 31, 2021) 15,000 7,550 22,254 15,840 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 18,087 $ 11,673
Schedule of Maturities of Long-term Debt	Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2022 (remaining 9 months) $ 3,125 2023 19,129 Total $ 22,254

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
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: Three Months Ended March 31, (in thousands) 2022 2021 Operating lease costs $ 575 $ 544 Variable rent costs (50) (47) Total rent expense $ 525 $ 497 Three Months Ended March 31, (in thousands, except weighted-average data) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 13 $ 14 Interest on lease liabilities (1) 1 Total finance lease cost $ 12 $ 15 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 577 $ 544 Finance cash flows from finance leases $ 12 $ 12 Right-of-use assets obtained in exchange for new operating lease liabilities $ 759 $ 1,274 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — Weighted-average remaining lease term (years) - operating leases 7.3 6.2 Weighted-average remaining lease term (years) - finance leases 3.7 4.7 Weighted-average discount rate - operating leases 5 % 6 % Weighted-average discount rate - finance leases 3 % 2 %
Schedule of future operating lease payments	Future minimum lease payments under non-cancelable operating and finance leases were as follows as of March 31, 2022 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2022 (remaining 9 months) $ 2,043 $ 39 2023 2,143 53 2024 1,387 53 2025 695 48 2026 143 — 2027 and beyond — — Total future minimum lease payments 6,411 193 Less: imputed interest 427 8 Total lease liabilities $ 5,984 $ 185 Current lease liability $ 2,458 $ 49 Long-term lease liability 3,526 136 Total lease liabilities $ 5,984 $ 185
Schedule of future finance lease payments	Future minimum lease payments under non-cancelable operating and finance leases were as follows as of March 31, 2022 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2022 (remaining 9 months) $ 2,043 $ 39 2023 2,143 53 2024 1,387 53 2025 695 48 2026 143 — 2027 and beyond — — Total future minimum lease payments 6,411 193 Less: imputed interest 427 8 Total lease liabilities $ 5,984 $ 185 Current lease liability $ 2,458 $ 49 Long-term lease liability 3,526 136 Total lease liabilities $ 5,984 $ 185

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The details are listed in the table below for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (in thousands) 2022 2021 (unaudited) Total Revenue by Geographic Location United States $ 10,516 $ 10,579 Asia 4,830 3,672 Europe 4,907 3,977 Canada, Central and South America 2,228 2,769 All Others — — Total $ 22,481 $ 20,997 Total Revenue by Major Customer Type Sales to the U.S. government $ 1,635 $ 2,414 U.S. direct commercial sales and other 8,881 8,165 Foreign commercial sales & other 11,965 10,418 Total $ 22,481 $ 20,997 Total Revenue by Contract Type Fixed-price contracts $ 21,853 $ 20,405 Cost-type contracts 628 592 Total $ 22,481 $ 20,997 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 18,609 $ 16,839 Goods/services transferred over time 3,872 4,158 Total $ 22,481 $ 20,997 Total Revenue by Major Products/Services Technology development $ 1,597 $ 2,140 Test, measurement and sensing systems 20,096 18,519 Other 788 338 Total $ 22,481 $ 20,997
Schedule of components of contract balances	The following table shows the components of our contract balances as of March 31, 2022 and December 31, 2021: (in thousands) March 31, 2022 December 31, 2021 Contract assets $ 4,889 $ 5,166 Contract liabilities 4,047 4,649 Net contract assets $ 842 $ 517

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - segment	Sep. 29, 2021	Dec. 01, 2020	Mar. 31, 2022
Debt Instrument [Line Items]
Number of operating segments	2
Number of reportable segments			1
London Interbank Offered Rate (LIBOR) | PNC Bank Facility | Minimum | Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.75%	1.75%
London Interbank Offered Rate (LIBOR) | PNC Bank Facility | Maximum | Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.25%	2.25%

Sale of Discontinued Operatio_3

Sale of Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands	Mar. 08, 2022	Mar. 31, 2022	Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of discontinued operations		$ 12,973	$ 0
Tax effect of gain from discontinued operation		$ 3,117	$ 3,117
Discontinued Operations, Held-for-sale or Disposed of by Sale | Luna Labs
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price	$ 20,400
Proceeds from sale of discontinued operations	13,000
Contingent consideration	1,000
Gain on the transaction	10,900
Tax effect of gain from discontinued operation	3,100
Discontinued Operations, Held-for-sale or Disposed of by Sale | Luna Labs | Notes Receivable
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Convertible note	2,500
Discontinued Operations, Held-for-sale or Disposed of by Sale | Luna Labs | Note Receivable 2
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Convertible note	$ 1,700

Sale of Discontinued Operatio_4

Sale of Discontinued Operations - Discontinued Operations Related To Luna Lab Segment (Details) - Held-for-sale - Luna Labs - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 5,108	$ 5,302
Cost of revenues	3,692	4,144
Gross profit	1,416	1,158
Selling, general and administrative expenses	391	372
Operating income	1,025	786
Income tax expense	1,022	46
Net income from discontinued operations, net of tax	$ 3	$ 740

Sale of Discontinued Operatio_5

Sale of Discontinued Operations - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract]
Assets held for sale	$ 0	$ 12,952
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract]
Liabilities associated with assets held for sale	$ 0	9,703
Luna Labs | Held-for-sale
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract]
Accounts receivable, net		2,967
Inventory, net		282
Contract assets		4,051
Prepaid expenses and other current		132
Property and equipment, net		330
Intangible assets, net		165
Operating lease ROU asset		4,884
Other assets		141
Assets held for sale		12,952
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract]
Accounts payable		1,042
Accrued and other current liabilities		821
Contract liabilities		2,626
Current portion of operating lease liabilities		388
Long-term portion of operating lease liabilities		4,826
Liabilities associated with assets held for sale		$ 9,703

Sale of Discontinued Operatio_6

Sale of Discontinued Operations - Cash Flow And Non-Cash Information (Details) - Luna Labs - Held-for-sale - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization	$ 23	$ 31
Share-based compensation	66	10
Acquisition of property and equipment	$ 34	$ 50

Business Acquisitions - Additio

Business Acquisitions - Additional Information (Details) - LIOS Acquisition € in Millions, $ in Millions	Mar. 10, 2022USD ($)	Mar. 10, 2022EUR (€)
Business Acquisition [Line Items]
Aggregate consideration	$ 22.1	€ 20
Developed technology
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	14.50%	14.50%
Trade names and trademarks
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	14.50%	14.50%
Backlog
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	13.50%	13.50%
Customer relationships
Business Acquisition [Line Items]
Discount rate used to estimate fair value of acquired finite-lived intangible assets	15.50%	15.50%

Business Acquisitions - Allocat

Business Acquisitions - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 10, 2022	Dec. 31, 2021	Oct. 29, 2020
Business Acquisition [Line Items]
Goodwill	$ 29,199		$ 18,984
LIOS Acquisition
Business Acquisition [Line Items]
Accounts receivable		$ 3,001
Inventory		5,388
Prepaid expenses and other current assets		92
Property and equipment		858
Intangible assets		5,994		$ 5,994
Goodwill		10,322
Operating lease right-of-use asset		512
Accounts payable		(1,217)
Accrued and other current liabilities		(815)
Current portion of operating lease liability		(322)
Deferred income tax liability		(1,537)
Long-term portion of operating lease liability		(191)
Total purchase consideration		$ 22,085

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Preliminary Identifiable Intangible Assets Acquired (Details) - LIOS Acquisition - USD ($)	Mar. 10, 2022	Oct. 29, 2020
Business Acquisition [Line Items]
Intangible assets	$ 5,994,000	$ 5,994,000
Developed technology
Business Acquisition [Line Items]
Acquired assets expected useful lives	6 years
Intangible assets	$ 1,998,000
Customer relationships
Business Acquisition [Line Items]
Acquired assets expected useful lives	8 years
Intangible assets	$ 3,330,000
Trade names and trademarks
Business Acquisition [Line Items]
Acquired assets expected useful lives	7 years
Intangible assets	$ 333,000
Backlog
Business Acquisition [Line Items]
Acquired assets expected useful lives	1 year
Intangible assets	$ 333,000

Intangible assets, net - Summar

Intangible assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 33,611	$ 27,652
Accumulated amortization	(11,279)	(10,475)
Total	22,332	17,177
Patent costs
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 9,187	9,230
Patent costs | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	1 year
Patent costs | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	18 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 16,446	14,440
Developed technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	6 years
Developed technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	10 years
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 2,732	2,732
Customer base
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 4,030	700
Customer base | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	5 years
Customer base | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	8 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 883	550
Trade names | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	7 years
Trade names | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	15 years
Backlog
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 333	$ 0
Backlog | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	1 year
Backlog | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Life	3 years

Intangible assets, net - Additi

Intangible assets, net - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.8

Intangible assets, net - Estima

Intangible assets, net - Estimated Aggregate Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (remaining 9 months)	$ 2,793
2023	3,774
2024	3,282
2025	2,947
2026	2,830
2027 & beyond	6,706
Total	$ 22,332	$ 17,177

Goodwill (Details)

Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 18,984
Acquisition of LIOS	10,322
Foreign currency translation	(107)
Ending balance	$ 29,199

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 10,099	$ 10,087
Work-in-process	3,553	2,318
Raw materials	15,239	10,088
Total inventory	$ 28,891	$ 22,493

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued compensation	$ 7,985	$ 6,798
Contingent consideration	100	225
Accrued professional fees	1,360	503
Accrued income tax	3,012	328
Current portion of finance lease liability	49	48
Acquisition and divestiture related liabilities	2,015	0
Accrued liabilities - other	2,791	1,356
Accrued and other current liabilities	$ 17,312	$ 9,258
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued and other current liabilities	Accrued and other current liabilities

Debt - Long Term Debt (Details)

Debt - Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total	$ 22,254	$ 15,840
Less: Current portion of long-term debt obligations	(4,167)	(4,167)
Long-term debt obligations	18,087	11,673
Term Loan
Debt Instrument [Line Items]
Total	7,254	8,290
Net of debt issuance costs	$ 38	$ 44
Debt instrument, stated percentage	2.13%	2.48%
Revolving Loan
Debt Instrument [Line Items]
Total	$ 15,000	$ 7,550
Debt instrument, stated percentage	2.09%	2.09%

Debt - Additional Information (

Debt - Additional Information (Details)	Dec. 01, 2020USD ($)payment	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)
Debt Instrument [Line Items]
Proceeds from borrowings under revolver		$ 7,450,000	$ 0
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 | 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	$ 15,000,000
Proceeds from borrowings under revolver	7,600,000	$ 7,400,000
PNC Bank Facility | Letter of Credit | Loan Agreement
Debt Instrument [Line Items]
Debt, face amount	$ 3,000,000
PNC Bank Facility | London Interbank Offered Rate (LIBOR) | Term Loan | Minimum
Debt Instrument [Line Items]
Variable basis rate	1.75%	1.75%
PNC Bank Facility | London Interbank Offered Rate (LIBOR) | Term Loan | Maximum
Debt Instrument [Line Items]
Variable basis rate	2.25%	2.25%
PNC Bank Facility | London Interbank Offered Rate (LIBOR) | Revolving Loan | Minimum
Debt Instrument [Line Items]
Variable basis rate	1.75%
PNC Bank Facility | London Interbank Offered Rate (LIBOR) | Revolving Loan | Maximum
Debt Instrument [Line Items]
Variable basis rate	2.25%

Debt - Maturities (Details)

Debt - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2022 (remaining 9 months)	$ 3,125
2023	19,129
Total	$ 22,254	$ 15,840

Leases - Additional Information

Leases - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022
Office equipment
Lessee, Lease, Description [Line Items]
Useful life	5 years
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	3 years

Leases - Rent Expense (Details)

Leases - Rent Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease costs	$ 575	$ 544
Variable rent costs	(50)	(47)
Total rent expense	$ 525	$ 497

Leases - Future Operating and F

Leases - Future Operating and Finance Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Operating Leases
2022 (remaining 9 months)	$ 2,043
2023	2,143
2024	1,387
2025	695
2026	143
2027 and beyond	0
Total future minimum lease payments	6,411
Less: imputed interest	427
Total lease liabilities	5,984
Current lease liability	2,458	$ 2,101
Long-term lease liability	3,526	3,509
Total lease liabilities	5,984
Finance Leases
2022 (remaining 9 months)	39
2023	53
2024	53
2025	48
2026	0
2027 and beyond	0
Total future minimum lease payments	193
Less: imputed interest	8
Total lease liabilities	185
Current portion of finance lease liability	49	$ 48
Long-term portion of finance lease liability	136
Total lease liabilities	$ 185
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities

Leases - Other Lease Informatio

Leases - Other Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Finance lease cost:
Amortization of right-of-use assets	$ 13	$ 14
Interest on lease liabilities	(1)	1
Total finance lease cost	12	15
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	577	544
Finance cash flows from finance leases	12	12
Right-of-use assets obtained in exchange for new operating lease liabilities	759	1,274
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0	$ 0
Weighted-average remaining lease term (years) - operating leases	7 years 3 months 18 days	6 years 2 months 12 days
Weighted-average remaining lease term (years) - finance leases	3 years 8 months 12 days	4 years 8 months 12 days
Weighted-average discount rate - operating leases	5.00%	6.00%
Weighted-average discount rate - finance leases	3.00%	2.00%

Capital Stock and Share-Based_2

Capital Stock and Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.2	$ 0.3
Stock-based compensation expense not yet recognized	$ 0.9
Weighted average remaining service period	1 year 4 months 24 days
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.7	$ 0.3
Stock-based compensation expense not yet recognized	$ 4.2
Weighted average remaining service period	2 years 4 months 24 days
RSUs granted (in shares)	255,842	79,250
RSUs granted (in dollars per share)	$ 7.70
Restricted stock units (RSUs) | Non-Employee Director Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)	8,436	4,658
RSUs granted (in dollars per share)	$ 8.46	$ 9.42
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.1	$ 0.1

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 22,481,000	$ 20,997,000
Technology development
Disaggregation of Revenue [Line Items]
Revenue	1,597,000	2,140,000
Test, measurement and sensing systems
Disaggregation of Revenue [Line Items]
Revenue	20,096,000	18,519,000
Other
Disaggregation of Revenue [Line Items]
Revenue	788,000	338,000
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue	18,609,000	16,839,000
Goods/services transferred over time
Disaggregation of Revenue [Line Items]
Revenue	3,872,000	4,158,000
Fixed-price contracts
Disaggregation of Revenue [Line Items]
Revenue	21,853,000	20,405,000
Cost-type contracts
Disaggregation of Revenue [Line Items]
Revenue	628,000	592,000
Sales to the U.S. government
Disaggregation of Revenue [Line Items]
Revenue	1,635,000	2,414,000
U.S. direct commercial sales and other
Disaggregation of Revenue [Line Items]
Revenue	8,881,000	8,165,000
Foreign commercial sales & other
Disaggregation of Revenue [Line Items]
Revenue	11,965,000	10,418,000
United States
Disaggregation of Revenue [Line Items]
Revenue	10,516,000	10,579,000
Asia
Disaggregation of Revenue [Line Items]
Revenue	4,830,000	3,672,000
Europe
Disaggregation of Revenue [Line Items]
Revenue	4,907,000	3,977,000
Canada, Central and South America
Disaggregation of Revenue [Line Items]
Revenue	2,228,000	2,769,000
All Others
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 1,500
Contract assets	4,889	$ 5,166
Contract liabilities	4,047	4,649
Net contract assets	$ 842	$ 517

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation Amount (Details) $ in Millions	Mar. 31, 2022USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 45.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 36.1
Remaining performance obligation, period	3 months
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	$ 7.7
Remaining performance obligation, period	1 year

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	45.36%	38.54%

Commitments and Contingencies (

Commitments and Contingencies (Details) - Tunable lasers - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Mar. 31, 2022	Dec. 31, 2020
Loss Contingencies [Line Items]
Non-cancelable purchase order commitment	$ 3.9		$ 3.9
Non-cancelable purchase order delivery period	18 months
Non-cancelable purchase order commitment remaining		$ 0.6