Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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, $0.001 par value per share | |
Trading Symbol | LUNA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,967,691 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001239819 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 14,755,000 | $ 15,366,000 |
Accounts receivable, net | 19,557,000 | 21,928,000 |
Contract assets | 2,883,000 | 4,139,000 |
Inventory | 25,350,000 | 23,062,000 |
Prepaid expenses and other current assets | 6,213,000 | 4,433,000 |
Assets held for sale | 13,855,000 | 6,541,000 |
Total current assets | 82,613,000 | 75,469,000 |
Property and equipment, net | 2,820,000 | 2,917,000 |
Intangible assets, net | 17,819,000 | 19,994,000 |
Goodwill | 18,979,000 | 18,121,000 |
Operating lease right-of-use asset | 5,497,000 | 5,984,000 |
Other non-current assets | 246,000 | 369,000 |
Deferred tax asset | 1,707,000 | 1,689,000 |
Non-current assets held for sale | 0 | 6,459,000 |
Total assets | 129,681,000 | 131,002,000 |
Current liabilities: | ||
Current portion of long-term debt obligations | 4,167,000 | 4,167,000 |
Accounts payable | 2,585,000 | 2,852,000 |
Accrued and other current liabilities | 10,826,000 | 10,773,000 |
Contract liabilities | 4,967,000 | 6,698,000 |
Current portion of operating lease liability | 2,020,000 | 1,876,000 |
Liabilities associated with assets held for sale | 9,091,000 | 3,719,000 |
Total current liabilities | 33,656,000 | 30,085,000 |
Long-term debt obligations | 12,709,000 | 15,817,000 |
Long-term portion of operating lease liability | 4,073,000 | 5,034,000 |
Other long-term liabilities | 374,000 | 410,000 |
Non-current liabilities associated with assets held for sale | 0 | 5,214,000 |
Total liabilities | 50,812,000 | 56,560,000 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock, par value $0.001, 100,000,000 shares authorized, 33,511,899 and 32,724,512 shares issued, 31,961,907 and 31,024,537 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 34,000 | 33,000 |
Treasury stock at cost, 1,739,455 and 1,699,975 shares at September 30, 2021 and December 31, 2020, respectively | (5,209,000) | (4,789,000) |
Additional paid-in capital | 97,238,000 | 92,403,000 |
Accumulated deficit | (13,150,000) | (12,957,000) |
Accumulated other comprehensive loss | (44,000) | (248,000) |
Total stockholders’ equity | 78,869,000 | 74,442,000 |
Total liabilities and stockholders’ equity | $ 129,681,000 | $ 131,002,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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) | 33,511,899 | 32,724,512 |
Common stock, outstanding (in shares) | 31,961,907 | 31,024,537 |
Treasury stock (in shares) | 1,739,455 | 1,699,975 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 20,329 | $ 15,350 | $ 63,291 | $ 39,837 |
Cost of revenue | 7,745 | 5,718 | 25,855 | 15,711 |
Gross profit | 12,584 | 9,632 | 37,436 | 24,126 |
Operating expense: | ||||
Selling, general and administrative | 9,674 | 6,229 | 33,414 | 17,959 |
Research, development and engineering | 2,920 | 1,615 | 7,647 | 4,717 |
Loss on sale of property and equipment | 0 | 576 | 0 | 576 |
Total operating expense | 12,594 | 8,420 | 41,061 | 23,252 |
Operating (loss)/income | (10) | 1,212 | (3,625) | 874 |
Other income/(expense): | ||||
Investment income | 0 | 1 | 0 | 65 |
Other income | 0 | 13 | 0 | 19 |
Interest expense, net | (110) | (1) | (375) | (2) |
Total other (expense)/income | (110) | 13 | (375) | 82 |
(Loss)/income from continuing operations before income taxes | (120) | 1,225 | (4,000) | 956 |
Income tax expense/(benefit) | 224 | (1,083) | (1,436) | (930) |
Net (loss)/income from continuing operations | (344) | 2,308 | (2,564) | 1,886 |
Income from discontinued operations, net of income tax of $235, $246, $381, and $673 | 699 | 794 | 2,371 | 1,469 |
Net income/(loss) | $ 355 | $ 3,102 | $ (193) | $ 3,355 |
Net (loss)/income per share from continuing operations: | ||||
Basic (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.08) | $ 0.06 |
Diluted (in dollars per share) | (0.01) | 0.07 | (0.08) | 0.06 |
Net income per share from discontinued operations: | ||||
Basic (in dollars per share) | 0.02 | 0.03 | 0.08 | 0.05 |
Diluted (in dollars per share) | 0.02 | 0.02 | 0.07 | 0.05 |
Net income/(loss) per share attributable to common stockholders: | ||||
Basic (in dollars per share) | 0.01 | 0.10 | (0.01) | 0.11 |
Diluted (in dollars per share) | $ 0.01 | $ 0.10 | $ (0.01) | $ 0.10 |
Weighted average shares: | ||||
Basic (in shares) | 31,944,869 | 30,809,896 | 31,553,998 | 30,593,954 |
Diluted (in shares) | 33,780,714 | 32,411,086 | 33,585,973 | 32,478,625 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Tax benefit from loss on sale of discontinued operations | $ 235 | $ 246 | $ 381 | $ 673 |
Income from discontinued operations, net of income tax of $235, $246, $381, and $673 | $ 699 | $ 794 | $ 2,371 | $ 1,469 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss)/Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 355 | $ 3,102 | $ (193) | $ 3,355 |
Other comprehensive (loss)/income | (672) | 0 | 204 | 0 |
Total other comprehensive (loss)/income | $ (317) | $ 3,102 | $ 11 | $ 3,355 |
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)/Income |
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) | 688,495 | |||||
Exercise of stock options | 1,958 | $ 1 | 1,957 | |||
Share-based compensation (in shares) | 67,268 | |||||
Share-based compensation | 1,538 | 1,538 | ||||
Deferred compensation issuance (in shares) | 47,377 | |||||
Deferred Compensation Issuance | 78 | 78 | ||||
Purchase of treasury stock (in shares) | (47,650) | (47,650) | ||||
Purchase of treasury stock | (329) | $ (329) | ||||
Net (loss)/income | 3,355 | 3,355 | ||||
Foreign currency translation adjustment | 0 | |||||
Forfeitures of restricted stock (in shares) | (81,530) | |||||
Forfeitures of restricted stock | (561) | (561) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 30,823,065 | (1,687,441) | ||||
Ending balance at Sep. 30, 2020 | 73,508 | $ 33 | $ (4,666) | 91,034 | (12,893) | 0 |
Beginning balance (in shares) at Jun. 30, 2020 | 30,797,535 | 1,672,741 | ||||
Beginning balance at Jun. 30, 2020 | 69,802 | $ 33 | $ (4,541) | 90,305 | (15,995) | 0 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of stock options (in shares) | 25,530 | |||||
Exercise of stock options | 33 | $ 0 | 33 | |||
Share-based compensation | 571 | 571 | ||||
Purchase of treasury stock (in shares) | (14,700) | (14,700) | ||||
Purchase of treasury stock | (125) | $ (125) | ||||
Net (loss)/income | 3,102 | 3,102 | ||||
Foreign currency translation adjustment | 0 | |||||
Forfeitures of restricted stock (in shares) | 14,700 | |||||
Forfeitures of restricted stock | 125 | 125 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 30,823,065 | (1,687,441) | ||||
Ending balance at Sep. 30, 2020 | 73,508 | $ 33 | $ (4,666) | 91,034 | (12,893) | 0 |
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) | 764,320 | |||||
Exercise of stock options | 2,076 | $ 1 | 2,075 | |||
Share-based compensation (in shares) | 149,337 | |||||
Share-based compensation | 2,230 | 2,230 | ||||
ESPP Issuance (in shares) | 63,193 | |||||
ESPP issuance | 530 | 530 | ||||
Purchase of treasury stock (in shares) | (39,480) | (39,480) | ||||
Purchase of treasury stock | (420) | $ (420) | ||||
Net (loss)/income | (193) | (193) | ||||
Foreign currency translation adjustment | 204 | 204 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 31,961,907 | (1,739,455) | ||||
Ending balance at Sep. 30, 2021 | 78,869 | $ 34 | $ (5,209) | 97,238 | (13,150) | (44) |
Beginning balance (in shares) at Jun. 30, 2021 | 31,772,444 | 1,739,455 | ||||
Beginning balance at Jun. 30, 2021 | 77,883 | $ 33 | $ (5,209) | 95,936 | (13,505) | 628 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of stock options (in shares) | 186,139 | |||||
Exercise of stock options | 587 | $ 1 | 586 | |||
Share-based compensation (in shares) | 3,324 | |||||
Share-based compensation | 716 | 716 | ||||
Net (loss)/income | 355 | 355 | ||||
Foreign currency translation adjustment | (672) | |||||
Ending balance (in shares) at Sep. 30, 2021 | 31,961,907 | (1,739,455) | ||||
Ending balance at Sep. 30, 2021 | $ 78,869 | $ 34 | $ (5,209) | $ 97,238 | $ (13,150) | $ (44) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows provided by operating activities | ||
Net (loss)/income | $ (193) | $ 3,355 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities | ||
Depreciation and amortization | 3,523 | 2,126 |
Share-based compensation | 2,230 | 1,538 |
Bad debt expense | 262 | 147 |
Loss on sale of property and equipment | 0 | 576 |
Loss from discontinued operations, net of tax | 0 | 1,436 |
Deferred taxes | (23) | (313) |
Change in assets and liabilities | ||
Accounts receivable | 220 | (2,131) |
Contract assets | 837 | (1,589) |
Inventory | (1,906) | (1,419) |
Other current assets | (1,752) | (1,982) |
Accounts payable and accrued and other current liabilities | (1,681) | (1,481) |
Contract liabilities | (287) | (166) |
Net cash provided by operating activities | 1,230 | 97 |
Cash flows (used in)/provided by investing activities | ||
Acquisition of property and equipment | (943) | (422) |
Intangible property costs | (215) | (291) |
Proceeds from sale of property and equipment | 0 | 403 |
Proceeds from sale of discontinued operations | 0 | 600 |
Net cash (used in)/provided by investing activities | (1,158) | 290 |
Cash flows (used in)/provided by financing activities | ||
Payments on finance lease obligations | (36) | (39) |
Payments of debt obligations | (3,110) | 0 |
Repurchase of common stock | (420) | (329) |
Proceeds from ESPP | 530 | 0 |
Proceeds from the exercise of options and warrants | 2,076 | 1,397 |
Net cash (used in)/provided by financing activities | (960) | 1,029 |
Effect of exchange rate changes on cash and cash equivalents | 277 | 0 |
Net (decrease)/increase in cash and cash equivalents | (611) | 1,416 |
Cash and cash equivalents—beginning of period | 15,366 | 25,006 |
Cash and cash equivalents—end of period | 14,755 | 26,422 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 75 | 3 |
Cash received for income tax refund, net | $ 75 | $ 2,000 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 ("PICs") 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. In addition, 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, typically under research programs funded by the U.S. government, in areas of advanced materials, sensing, and healthcare applications. Our business model is designed to accelerate the process of bringing new and innovative products to market. We use our in-house technical expertise across a range of technologies to perform applied research services for companies and for government funded projects. We continue to invest in product development and commercialization, which we anticipate will lead to increased product sales growth. 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 September 30, 2021, results of operations, comprehensive (loss)/income and changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The consolidated balance sheet as of December 31, 2020 was derived from our audited consolidated financial statements. The COVID-19 pandemic has resulted in a global slowdown of economic activity. While the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use reasonably available information to assess certain accounting matters including, but not limited to, accounts receivable, inventory and the carrying value of goodwill and other long-lived tangible and intangible assets. While the assessments have not resulted in any material impacts to our financial statements as of September 30, 2021, we believe the full impact of the pandemic remains uncertain and ongoing developments related to the pandemic may cause material impacts to our 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, 2020, included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 12, 2021. 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 and reviewed for impairment as described above. 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. Reportable Segments During the three months ended September 30, 2021, we classified one of our reporting segments, Luna Labs, as held for sale. Therefore, we will only have one reportable segment remaining. See Note 2 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. The segment now held for sale, Luna Labs, performs applied research principally in the areas of sensing and instrumentation, advanced materials and health sciences. Net Income Per Share Basic per share data is computed by dividing our net income by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. Diluted per share data would also include the potential common share equivalents relating to convertible securities by application of the if-converted method. The effects of 1.8 million and 1.6 million common stock equivalents are included for the diluted per share data for the three months ended September 30, 2021 and 2020, respectively. The effects of 2.0 million and 1.9 million common stock equivalents are included for the diluted per share data for the nine months ended September 30, 2021 and 2020, respectively. Stock options, restricted stock units and deferred stock units credited to our directors under our non-employee deferred compensation plan are included in our common stock equivalents for the three and nine months ended September 30, 2021 and 2020. 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 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 is 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 this new accounting rule to have a significant impact on our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations We have been actively marketing 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 the three months ended September 30, 2021, we determined that our Luna Labs segment met held-for-sale and discontinued operations accounting criteria at the end of the third quarter. Accordingly, we have begun to separately report the results of our Luna Labs segment as discontinued operations in our consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, respectively, and to present the related assets and liabilities as held for sale in the consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. These changes have been applied to all periods presented. We expect to complete the sale of this business within one year. 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) : Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 6,376 $ 5,700 $ 17,650 $ 16,929 Cost of revenues 5,145 4,383 13,892 12,225 Gross profit 1,231 1,317 3,758 4,704 Selling, general and administrative expenses 297 276 1,006 1,126 Operating income 934 1,041 2,752 3,578 Income tax expense 235 247 381 673 Net income from discontinued operations, net of tax $ 699 $ 794 $ 2,371 $ 2,905 During the three months ended September 30, 2020, we previously 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 September 30, 2021 and December 31, 2020 consist of the following (in thousands) : September 30, 2021 December 31, 2020 Accounts receivable, net $ 3,951 $ 3,023 Inventory, net 265 535 Contract assets 3,824 2,906 Prepaid expenses and other current 47 76 Property and equipment, net (1) 349 391 Intangible assets, net (1) 154 115 Operating lease ROU asset (1) 4,989 5,297 Other assets (1) 276 657 Assets held for sale $ 13,855 $ 13,000 Accounts payable 1,040 1,542 Accrued liabilities 1,870 1,434 Contract liabilities 875 397 Current portion of operating lease ROU liability 377 346 Long-term portion of operating lease ROU liability (1) 4,929 5,214 Liabilities associated with assets held for sale $ 9,091 $ 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 nine months ended September 30, 2021 and 2020 (in thousands) : Nine Months Ended September 30, 2021 2020 Depreciation and amortization $ 83 $ 147 Share-based compensation 97 88 Acquisition of property and equipment 24 28 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 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. New Ridge Technologies On October 29, 2020, we acquired New Ridge Technologies, 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. New Ridge'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 $0.2 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 of the OptaSense acquisition (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 assets 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 three months ended June 30, 2021, we obtained new information about facts and circumstances 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 three months ended September 30, 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 (in thousands) Useful Life OptaSense 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 rate 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 these 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 the period presented as if the acquisition of OptaSense had been completed on January 1, 2019. The pro forma information includes adjustments to amortization expense for the intangible assets acquired and interest expense for the additional debt used to partially fund the acquisition price. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations or the combined business had the acquisition of 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. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) Revenue $ 21,323 $ 57,806 Income (loss) from continuing operations $ 471 $ (2,798) |
Intangible assets, net
Intangible assets, net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | Intangible assets, net Intangible assets, net at September 30, 2021 and December 31, 2020 consisted of the following: Estimated Life September 30, 2021 December 31, 2020 (in thousands) Patent costs 1 - 18 years $ 3,508 $ 3,595 Developed technology 5 - 10 years 17,409 17,344 In-process research & development N/A 1,580 1,580 Customer base 5-7 years 1,302 1,302 Trade names 3 - 15 years 3,121 3,122 Backlog 3 years 696 696 27,616 27,639 Accumulated amortization (9,797) (7,645) $ 17,819 $ 19,994 Amortization expense for the each of the three and nine months ended September 30, 2021 was $0.8 million and $2.4 million, respectively. Estimated aggregate amortization, based on the net value of intangible assets at September 30, 2021, for each of the next five years and beyond is as follows (in thousands) : Year Ending December 31, 2021 - remaining 3 months $ 775 2022 2,894 2023 2,804 2024 2,401 2025 2,085 2026 & beyond 6,860 Total $ 17,819 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill was $19.0 million and $18.1 million at September 30, 2021 and December 31, 2020, respectively, and has been allocated to the Lightwave segment. The decrease in goodwill of $0.2 million during the three months ended September 30, 2021 was due to foreign currency translation. The decrease in goodwill of $0.9 million during the nine months ended September 30, 2021 was primarily due to measurement period adjustments recorded in the second quarter. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 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 were as follows: September 30, December 31, (in thousands) Finished goods $ 10,955 $ 11,547 Work-in-process 3,023 1,425 Raw materials 11,372 10,090 Total inventory $ 25,350 $ 23,062 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: September 30, 2021 December 31, 2020 (in thousands) Accrued compensation $ 7,785 $ 7,669 Contingent consideration 225 225 Accrued professional fees 647 825 Accrued income tax 1,286 281 Current portion of finance lease liability 48 48 Accrued interest 19 42 Accrued royalties 312 456 Accrued liabilities - other 504 1,227 Total accrued and other current liabilities $ 10,826 $ 10,773 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Term Loan (net of debt issuance costs of $49 and $66, 2.13% and 2.48% at September 30, 2021 and December 31, 2020, respectively) $ 9,326 $ 12,434 Revolving Loan (2.09% at September 30, 2021 and December 31, 2020) 7,550 7,550 16,876 19,984 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 12,709 $ 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, 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. Additionally, we are subject to financial covenants regarding minimum net leverage and fixed charge coverage. We were in compliance with our financial covenants as of September 30, 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. Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2021 - remaining 3 months $ 1,042 2022 4,167 2023 11,667 Total $ 16,876 Interest expense, net for the three and nine months ended September 30, 2021 and 2020 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Interest expense on Term Loan $ 55 $ — $ 197 $ — Interest expense on Revolving Line 44 — 119 — Amortization of debt issuance costs 11 — 33 — Other interest expense — 1 27 2 Interest income — — (1) — Total interest expense, net $ 110 $ 1 $ 375 $ 2 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 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: Three Months Ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease costs $ 604 $ 320 $ 1,688 $ 1,099 Variable rent costs (46) 155 (139) 141 Total rent expense $ 558 $ 475 $ 1,549 $ 1,240 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of September 30, 2021 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2021 - remaining 3 months $ 632 $ 13 2022 2,178 53 2023 1,796 53 2024 1,298 53 2025 613 47 2026 and beyond 104 — Total future minimum lease payments 6,621 219 Less: interest 528 11 Total lease liabilities $ 6,093 $ 208 Current lease liability $ 2,020 $ 48 Long-term lease liability 4,073 160 Total lease liabilities $ 6,093 $ 208 Other information related to leases is as follows: Three Months Ended September 30, Nine months ended September 30, (in thousands, except weighted-average data) 2021 2020 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 12 $ 7 $ 36 $ 35 Interest on lease liabilities 1 1 4 3 Total finance lease cost $ 13 $ 8 $ 40 $ 38 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 540 $ 320 $ 1,563 $ 1,064 Finance cash flows from finance leases $ 12 $ 13 $ 36 $ 39 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 1,274 $ — $ 6,805 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ — $ — Weighted-average remaining lease term (years) - operating leases 5.8 7.7 5.8 7.7 Weighted-average remaining lease term (years) - finance leases 4.2 2 4.2 2 Weighted-average discount rate - operating leases 6 % 6 % 6 % 6 % Weighted-average discount rate - finance leases 3 % 7 % 3 % 7 % |
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 September 30, 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: Three Months Ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease costs $ 604 $ 320 $ 1,688 $ 1,099 Variable rent costs (46) 155 (139) 141 Total rent expense $ 558 $ 475 $ 1,549 $ 1,240 Future minimum lease payments under non-cancelable operating and finance leases were as follows as of September 30, 2021 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2021 - remaining 3 months $ 632 $ 13 2022 2,178 53 2023 1,796 53 2024 1,298 53 2025 613 47 2026 and beyond 104 — Total future minimum lease payments 6,621 219 Less: interest 528 11 Total lease liabilities $ 6,093 $ 208 Current lease liability $ 2,020 $ 48 Long-term lease liability 4,073 160 Total lease liabilities $ 6,093 $ 208 Other information related to leases is as follows: Three Months Ended September 30, Nine months ended September 30, (in thousands, except weighted-average data) 2021 2020 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 12 $ 7 $ 36 $ 35 Interest on lease liabilities 1 1 4 3 Total finance lease cost $ 13 $ 8 $ 40 $ 38 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 540 $ 320 $ 1,563 $ 1,064 Finance cash flows from finance leases $ 12 $ 13 $ 36 $ 39 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 1,274 $ — $ 6,805 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ — $ — Weighted-average remaining lease term (years) - operating leases 5.8 7.7 5.8 7.7 Weighted-average remaining lease term (years) - finance leases 4.2 2 4.2 2 Weighted-average discount rate - operating leases 6 % 6 % 6 % 6 % Weighted-average discount rate - finance leases 3 % 7 % 3 % 7 % |
Capital Stock and Share-Based C
Capital Stock and Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Capital Stock and Share-Based Compensation | Capital Stock and Share-Based Compensation Stock Options During the nine months ended September 30, 2021, we granted options to purchase 80,735 shares of our common stock. The general terms of the stock options are similar to awards previously granted by us. We did not grant any stock options in either the three months ended June 30, 2021 or three months ended September 30, 2021. The fair values of stock options granted were estimated using the following weighted-average assumptions: Nine Months Ended September 30, 2021 Risk-free rate 0.98 % Expected volatility 55.22 % Expected term (in years) 7 The weighted average fair value of stock options granted during the nine months ended September 30, 2021 was $5.24 per share. The fair value of each stock option was determined using the Black-Scholes model. For the three and nine months ended September 30, 2021, we recognized $0.3 million and $0.8 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 $1.5 million in share-based compensation expense over the weighted-average remaining service period of 1.7 years for stock options outstanding as of September 30, 2021. Restricted Stock Units During the nine months ended September 30, 2021, we granted 134,250 time-based restricted stock units ("RSUs"). We did not grant any RSU's in the three months ended September 30, 2021. 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 nine months ended September 30, 2021 was $11.35 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 and nine months ended September 30, 2021, we granted 5,530 and 14,447 RSUs pursuant to the Deferred Compensation Plan, respectively. 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 and nine months ended September 30, 2021 was $10.85 and $10.38 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 each of the three and nine months ended September 30, 2021 we recognized $0.5 million and $1.1 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 $2.0 million in share-based compensation expense over the weighted-average remaining service period of 2.0 years for RSUs outstanding as of September 30, 2021. Employee Stock Purchase Plan ("ESPP") For the three and nine months ended September 30, 2021, we recognized $0.1 million and $0.3 million, respectively, in share-based compensation expense related to the ESPP, which is included in our selling, general and administrative expense in the accompanying consolidated statement of operations. There was no share-based compensation expense related to the ESPP for the nine months ended September 30, 2020. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
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 for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. 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 and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 (unaudited) (unaudited) Total Revenue by Geographic Location United States $ 11,555 $ 8,729 33,670 21,622 Asia 3,390 4,532 10,658 11,857 Europe 3,628 1,694 12,114 5,261 Canada, Central and South America 1,756 319 6,849 782 All Others — 76 — 315 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Major Customer Type Sales to the U.S. government $ 2,713 $ 2,599 7,629 6,119 U.S. direct commercial sales and other 8,444 6,130 25,642 15,503 Foreign commercial sales & other 9,172 6,621 30,020 18,215 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Contract Type Fixed-price contracts $ 19,745 $ 14,717 60,882 37,667 Cost-type contracts 584 633 2,409 2,170 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 17,106 $ 12,987 52,044 34,023 Goods/services transferred over time 3,223 2,363 11,247 5,814 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Major Products/Services Technology development $ 1,461 $ 2,040 5,629 5,275 Test, measurement and sensing systems 18,253 12,987 56,255 34,023 Other 615 323 1,407 539 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 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 return inventory. Contract liabilities include excess billings, subcontractor accruals, warranty expense, extended warranty revenue, right of return refund, and customer deposits. The following table shows the components of our contract balances as of September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Contract assets $ 2,883 $ 4,139 Contract liabilities 4,967 6,698 Net contract assets $ (2,084) $ (2,559) Performance Obligations |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our 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 nine months ended September 30, 2021, our effective income tax rate was 35.90% compared to (97.28)% for the nine months ended September 30, 2020. The effective tax rate for 2021 differed from the federal statutory rate of 21%, primarily as a result of permanent differences related to equity compensation adjustments, state income taxes, research & development ("R&D") tax credits and losses for which no income tax benefit can be recorded due to corresponding valuation allowances. The effective tax rate for 2020 differed from the federal statutory rate of 21%, primarily as a result of permanent differences related to equity compensation adjustments, state income taxes, and R&D tax credits. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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. 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 had been received with $2.5 million remaining in escrow pending resolution of the dispute. In March 2020, we settled the dispute resulting in us receiving $0.6 million and Macom receiving $1.9 million. For the nine months ended September 30, 2020, we recorded a loss of $1.4 million, net of income tax benefit, to reflect the settlement of the dispute which is reported in income from discontinued operations in the consolidated statement of operations. We executed non-cancelable purchase orders totaling $1.6 million in the fourth quarter of 2020 and $1.5 million in the third quarter of 2021 for multiple shipments of tunable lasers to be delivered over an 12-month period. At September 30, 2021, approximately $1.7 million of these commitments remained and are expected to be delivered by September 30, 2022. We have entered into indemnification agreements with our officers and directors, to the extent permitted by law, pursuant to which we have agreed to reimburse the officers and directors for legal expenses in the event of litigation and regulatory matters. The terms of these indemnification agreements provide for no limitation to the maximum potential future payments. We have a directors and officers insurance policy that may, in certain instances, mitigate the potential liability and payments. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003. We are a leader in advanced optical technology, providing 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 ("PICs") 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. In addition, 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, typically under research programs funded by the U.S. government, in areas of advanced materials, sensing, and healthcare applications. Our business model is designed to accelerate the process of bringing new and innovative products to market. We use our in-house technical expertise across a range of technologies to perform applied research services for companies and for government funded projects. We continue to invest in product development and commercialization, which we anticipate will lead to increased product sales growth. |
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 September 30, 2021, results of operations, comprehensive (loss)/income and changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The consolidated balance sheet as of December 31, 2020 was derived from our audited consolidated financial statements. The COVID-19 pandemic has resulted in a global slowdown of economic activity. While the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use reasonably available information to assess certain accounting matters including, but not limited to, accounts receivable, inventory and the carrying value of goodwill and other long-lived tangible and intangible assets. While the assessments have not resulted in any material impacts to our financial statements as of September 30, 2021, we believe the full impact of the pandemic remains uncertain and ongoing developments related to the pandemic may cause material impacts to our 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, 2020, included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 12, 2021. |
Goodwill and Intangible Assets | 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 |
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. |
Reportable Segments | Reportable Segments During the three months ended September 30, 2021, we classified one of our reporting segments, Luna Labs, as held for sale. Therefore, we will only have one reportable segment remaining. See Note 2 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. The segment now held for sale, Luna Labs, performs applied research principally in the areas of sensing and instrumentation, advanced materials and health sciences. |
Net Income Per Share | Net Income Per ShareBasic per share data is computed by dividing our net income by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential shares of common stock had been issued using the treasury stock method. Diluted per share data would also include the potential common share equivalents relating to convertible securities by application of the if-converted method. |
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 Adopted Accounting Pronouncements/Recently Issued Pronouncements, net yet adopted | 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 is 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 this new accounting rule to have a significant impact on our consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 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) : Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 6,376 $ 5,700 $ 17,650 $ 16,929 Cost of revenues 5,145 4,383 13,892 12,225 Gross profit 1,231 1,317 3,758 4,704 Selling, general and administrative expenses 297 276 1,006 1,126 Operating income 934 1,041 2,752 3,578 Income tax expense 235 247 381 673 Net income from discontinued operations, net of tax $ 699 $ 794 $ 2,371 $ 2,905 Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets as of September 30, 2021 and December 31, 2020 consist of the following (in thousands) : September 30, 2021 December 31, 2020 Accounts receivable, net $ 3,951 $ 3,023 Inventory, net 265 535 Contract assets 3,824 2,906 Prepaid expenses and other current 47 76 Property and equipment, net (1) 349 391 Intangible assets, net (1) 154 115 Operating lease ROU asset (1) 4,989 5,297 Other assets (1) 276 657 Assets held for sale $ 13,855 $ 13,000 Accounts payable 1,040 1,542 Accrued liabilities 1,870 1,434 Contract liabilities 875 397 Current portion of operating lease ROU liability 377 346 Long-term portion of operating lease ROU liability (1) 4,929 5,214 Liabilities associated with assets held for sale $ 9,091 $ 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) : Nine Months Ended September 30, 2021 2020 Depreciation and amortization $ 83 $ 147 Share-based compensation 97 88 Acquisition of property and equipment 24 28 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Allocation of Purchase Consideration | The following table summarizes the allocation of the purchase consideration of the OptaSense acquisition (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 assets 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 (in thousands) Useful Life OptaSense 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 following unaudited pro forma financial information presents combined results of operations for the period presented as if the acquisition of OptaSense had been completed on January 1, 2019. The pro forma information includes adjustments to amortization expense for the intangible assets acquired and interest expense for the additional debt used to partially fund the acquisition price. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations or the combined business had the acquisition of 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. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) Revenue $ 21,323 $ 57,806 Income (loss) from continuing operations $ 471 $ (2,798) |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets, net at September 30, 2021 and December 31, 2020 consisted of the following: Estimated Life September 30, 2021 December 31, 2020 (in thousands) Patent costs 1 - 18 years $ 3,508 $ 3,595 Developed technology 5 - 10 years 17,409 17,344 In-process research & development N/A 1,580 1,580 Customer base 5-7 years 1,302 1,302 Trade names 3 - 15 years 3,121 3,122 Backlog 3 years 696 696 27,616 27,639 Accumulated amortization (9,797) (7,645) $ 17,819 $ 19,994 |
Estimated Aggregate Amortization Based on Net Value of Intangible Assets | Estimated aggregate amortization, based on the net value of intangible assets at September 30, 2021, for each of the next five years and beyond is as follows (in thousands) : Year Ending December 31, 2021 - remaining 3 months $ 775 2022 2,894 2023 2,804 2024 2,401 2025 2,085 2026 & beyond 6,860 Total $ 17,819 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventory were as follows: September 30, December 31, (in thousands) Finished goods $ 10,955 $ 11,547 Work-in-process 3,023 1,425 Raw materials 11,372 10,090 Total inventory $ 25,350 $ 23,062 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: September 30, 2021 December 31, 2020 (in thousands) Accrued compensation $ 7,785 $ 7,669 Contingent consideration 225 225 Accrued professional fees 647 825 Accrued income tax 1,286 281 Current portion of finance lease liability 48 48 Accrued interest 19 42 Accrued royalties 312 456 Accrued liabilities - other 504 1,227 Total accrued and other current liabilities $ 10,826 $ 10,773 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Term Loan (net of debt issuance costs of $49 and $66, 2.13% and 2.48% at September 30, 2021 and December 31, 2020, respectively) $ 9,326 $ 12,434 Revolving Loan (2.09% at September 30, 2021 and December 31, 2020) 7,550 7,550 16,876 19,984 Less: Current portion of long-term debt obligations (4,167) (4,167) Long-term debt obligations $ 12,709 $ 15,817 |
Schedule of Maturities of Long-term Debt | Maturities on debt are as follows ( in thousands) : Year Ending December 31, Amount 2021 - remaining 3 months $ 1,042 2022 4,167 2023 11,667 Total $ 16,876 |
Summary of Debt Interest Expense | Interest expense, net for the three and nine months ended September 30, 2021 and 2020 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Interest expense on Term Loan $ 55 $ — $ 197 $ — Interest expense on Revolving Line 44 — 119 — Amortization of debt issuance costs 11 — 33 — Other interest expense — 1 27 2 Interest income — — (1) — Total interest expense, net $ 110 $ 1 $ 375 $ 2 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 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: Three Months Ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease costs $ 604 $ 320 $ 1,688 $ 1,099 Variable rent costs (46) 155 (139) 141 Total rent expense $ 558 $ 475 $ 1,549 $ 1,240 Three Months Ended September 30, Nine months ended September 30, (in thousands, except weighted-average data) 2021 2020 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 12 $ 7 $ 36 $ 35 Interest on lease liabilities 1 1 4 3 Total finance lease cost $ 13 $ 8 $ 40 $ 38 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 540 $ 320 $ 1,563 $ 1,064 Finance cash flows from finance leases $ 12 $ 13 $ 36 $ 39 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 1,274 $ — $ 6,805 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ — $ — Weighted-average remaining lease term (years) - operating leases 5.8 7.7 5.8 7.7 Weighted-average remaining lease term (years) - finance leases 4.2 2 4.2 2 Weighted-average discount rate - operating leases 6 % 6 % 6 % 6 % Weighted-average discount rate - finance leases 3 % 7 % 3 % 7 % |
Schedule of future operating lease payments | Future minimum lease payments under non-cancelable operating and finance leases were as follows as of September 30, 2021 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2021 - remaining 3 months $ 632 $ 13 2022 2,178 53 2023 1,796 53 2024 1,298 53 2025 613 47 2026 and beyond 104 — Total future minimum lease payments 6,621 219 Less: interest 528 11 Total lease liabilities $ 6,093 $ 208 Current lease liability $ 2,020 $ 48 Long-term lease liability 4,073 160 Total lease liabilities $ 6,093 $ 208 |
Schedule of future finance lease payments | Future minimum lease payments under non-cancelable operating and finance leases were as follows as of September 30, 2021 (in thousands) : Operating Leases Finance Leases Year Ending December 31, 2021 - remaining 3 months $ 632 $ 13 2022 2,178 53 2023 1,796 53 2024 1,298 53 2025 613 47 2026 and beyond 104 — Total future minimum lease payments 6,621 219 Less: interest 528 11 Total lease liabilities $ 6,093 $ 208 Current lease liability $ 2,020 $ 48 Long-term lease liability 4,073 160 Total lease liabilities $ 6,093 $ 208 |
Capital Stock and Share-Based_2
Capital Stock and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair values of stock options granted were estimated using the following weighted-average assumptions: Nine Months Ended September 30, 2021 Risk-free rate 0.98 % Expected volatility 55.22 % Expected term (in years) 7 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The details are listed in the table below for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 (unaudited) (unaudited) Total Revenue by Geographic Location United States $ 11,555 $ 8,729 33,670 21,622 Asia 3,390 4,532 10,658 11,857 Europe 3,628 1,694 12,114 5,261 Canada, Central and South America 1,756 319 6,849 782 All Others — 76 — 315 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Major Customer Type Sales to the U.S. government $ 2,713 $ 2,599 7,629 6,119 U.S. direct commercial sales and other 8,444 6,130 25,642 15,503 Foreign commercial sales & other 9,172 6,621 30,020 18,215 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Contract Type Fixed-price contracts $ 19,745 $ 14,717 60,882 37,667 Cost-type contracts 584 633 2,409 2,170 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Timing of Recognition Goods transferred at a point in time $ 17,106 $ 12,987 52,044 34,023 Goods/services transferred over time 3,223 2,363 11,247 5,814 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 Total Revenue by Major Products/Services Technology development $ 1,461 $ 2,040 5,629 5,275 Test, measurement and sensing systems 18,253 12,987 56,255 34,023 Other 615 323 1,407 539 Total $ 20,329 $ 15,350 $ 63,291 $ 39,837 |
Schedule of components of contract balances | The following table shows the components of our contract balances as of September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Contract assets $ 2,883 $ 4,139 Contract liabilities 4,967 6,698 Net contract assets $ (2,084) $ (2,559) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) shares in Millions | Dec. 01, 2020 | Sep. 30, 2021segmentshares | Sep. 30, 2020shares | Sep. 30, 2021shares | Sep. 30, 2020shares |
Debt Instrument [Line Items] | |||||
Number of operating segments | 1 | ||||
Number of reportable segments | 1 | ||||
Common stock equivalents included in diluted per share data (in shares) | shares | 1.8 | 1.6 | 2 | 1.9 | |
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% |
Discontinued Operations - Disco
Discontinued Operations - Discontinued Operations Related To Luna Lab Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Held-for-sale | Luna Labs | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | $ 6,376 | $ 5,700 | $ 17,650 | $ 16,929 |
Cost of revenues | 5,145 | 4,383 | 13,892 | 12,225 |
Gross profit | 1,231 | 1,317 | 3,758 | 4,704 |
Selling, general and administrative expenses | 297 | 276 | 1,006 | 1,126 |
Operating income | 934 | 1,041 | 2,752 | 3,578 |
Income tax expense | 235 | 247 | 381 | 673 |
Net income from discontinued operations, net of tax | 699 | $ 794 | $ 2,371 | $ 2,905 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Assets held for sale | $ 13,855 | $ 6,541 |
Luna Labs | Held-for-sale | ||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Accounts receivable, net | 3,951 | 3,023 |
Inventory, net | 265 | 535 |
Contract assets | 3,824 | 2,906 |
Prepaid expenses and other current | 47 | 76 |
Property and equipment, net (1) | 349 | 391 |
Intangible assets, net (1) | 154 | 115 |
Operating lease ROU asset (1) | 4,989 | 5,297 |
Other assets (1) | 276 | 657 |
Assets held for sale | 13,855 | 13,000 |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Accounts payable | 1,040 | 1,542 |
Accrued liabilities | 1,870 | 1,434 |
Contract liabilities | 875 | 397 |
Current portion of operating lease ROU liability | 377 | 346 |
Long-term portion of operating lease ROU liability (1) | 4,929 | 5,214 |
Liabilities associated with assets held for sale | $ 9,091 | $ 8,933 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow And Non-Cash Information (Details) - Luna Labs - Held-for-sale - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 83 | $ 147 |
Share-based compensation | 97 | 88 |
Acquisition of property and equipment | $ 24 | $ 28 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) $ in Thousands, £ in Millions | Dec. 03, 2020USD ($) | Dec. 03, 2020GBP (£) | Oct. 29, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 18,979 | $ 18,121 | ||||
Goodwill adjustment | $ 900 | |||||
OptaSense Holdings Limited | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate consideration | $ 38,900 | £ 29 | ||||
Goodwill | $ 8,520 | |||||
Goodwill adjustment | $ 900 | |||||
New Ride Technologies | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate consideration | 600 | |||||
Cash consideration | 400 | |||||
Contingent obligation | 200 | |||||
Goodwill | 20 | |||||
Potential maximum obligation of contingent consideration | $ 200 | |||||
Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate used to estimate fair value of acquired finite-lived intangible assets | 17.50% | |||||
Trade names and trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate used to estimate fair value of acquired finite-lived intangible assets | 17.50% | |||||
Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate used to estimate fair value of acquired finite-lived intangible assets | 16.50% | |||||
Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate used to estimate fair value of acquired finite-lived intangible assets | 17.50% |
Business Acquisitions - Allocat
Business Acquisitions - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands | Oct. 29, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Combination and Asset Acquisition [Abstract] | |||
Cash acquired | $ 5,200 | ||
Business Acquisition [Line Items] | |||
Goodwill | $ 18,979 | $ 18,121 | |
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 assets | 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 | Oct. 29, 2020USD ($) |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 11,263 |
Developed technology | |
Business Acquisition [Line Items] | |
Acquired assets expected useful lives | 10 years |
Identifiable intangible assets | $ 7,379 |
Trade names and trademarks | |
Business Acquisition [Line Items] | |
Acquired assets expected useful lives | 15 years |
Identifiable intangible assets | $ 2,580 |
Backlog | |
Business Acquisition [Line Items] | |
Acquired assets expected useful lives | 3 years |
Identifiable intangible assets | $ 699 |
Customer relationships | |
Business Acquisition [Line Items] | |
Acquired assets expected useful lives | 5 years |
Identifiable intangible assets | $ 605 |
Business Acquisitions - Unaudit
Business Acquisitions - Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenue | $ 21,323 | $ 57,806 |
Income from continuing operations | $ 471 | $ (2,798) |
Intangible assets, net - Summar
Intangible assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 27,616 | $ 27,639 |
Accumulated amortization | (9,797) | (7,645) |
Total | 17,819 | 19,994 |
Patent costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,508 | 3,595 |
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 | $ 17,409 | 17,344 |
Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 5 years | |
Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 10 years | |
In-process research & development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,580 | 1,580 |
Customer base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,302 | 1,302 |
Customer base | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 5 years | |
Customer base | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 7 years | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,121 | 3,122 |
Trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 3 years | |
Trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 15 years | |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 696 | $ 696 |
Estimated Life | 3 years |
Intangible assets, net - Additi
Intangible assets, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.8 | $ 2.4 |
Intangible assets, net - Estima
Intangible assets, net - Estimated Aggregate Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 - remaining 3 months | $ 775 | |
2022 | 2,894 | |
2023 | 2,804 | |
2024 | 2,401 | |
2025 | 2,085 | |
2026 & beyond | 6,860 | |
Total | $ 17,819 | $ 19,994 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 18,979 | $ 18,979 | $ 18,121 |
Foreign currency translation | $ 200 | ||
Goodwill adjustment | $ 900 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 10,955 | $ 11,547 |
Work-in-process | 3,023 | 1,425 |
Raw materials | 11,372 | 10,090 |
Total inventory | $ 25,350 | $ 23,062 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 7,785 | $ 7,669 |
Contingent consideration | 225 | 225 |
Accrued professional fees | 647 | 825 |
Accrued income tax | 1,286 | 281 |
Current portion of finance lease liability | 48 | 48 |
Accrued interest | 19 | 42 |
Accrued royalties | 312 | 456 |
Accrued liabilities - other | 504 | 1,227 |
Accrued and other current liabilities | $ 10,826 | $ 10,773 |
Debt - Additional Information (
Debt - Additional Information (Details) - PNC Bank Facility $ in Millions | Dec. 01, 2020USD ($)payment | Sep. 30, 2021 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Number of quarterly payments | payment | 12 | |
Term Loan | Loan Agreement | ||
Debt Instrument [Line Items] | ||
Debt, face amount | $ 12.5 | |
Revolving Loan | ||
Debt Instrument [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.20% | |
Termination notice | 3 days | |
Revolving Loan | Loan Agreement | ||
Debt Instrument [Line Items] | ||
Line of credit facility | $ 15 | |
Proceeds from Lines of Credit | 7.6 | |
Letter of Credit | Loan Agreement | ||
Debt Instrument [Line Items] | ||
Debt, face amount | $ 3 | |
London Interbank Offered Rate (LIBOR) | Term Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Variable basis rate | 1.75% | 1.75% |
London Interbank Offered Rate (LIBOR) | Term Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Variable basis rate | 2.25% | 2.25% |
London Interbank Offered Rate (LIBOR) | Revolving Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Variable basis rate | 1.75% | |
London Interbank Offered Rate (LIBOR) | Revolving Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Variable basis rate | 2.25% |
Debt - Long Term Debt (Details)
Debt - Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 16,876 | $ 19,984 |
Less: Current portion of long-term debt obligations | (4,167) | (4,167) |
Long-term debt obligations | 12,709 | 15,817 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total | 9,326 | 12,434 |
Net of debt issuance costs | $ 49 | $ 66 |
Debt instrument, stated percentage | 2.13% | 2.48% |
Revolving Loan | ||
Debt Instrument [Line Items] | ||
Total | $ 7,550 | $ 7,550 |
Debt instrument, stated percentage | 2.09% | 2.09% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 - remaining 3 months | $ 1,042 | |
2022 | 4,167 | |
2023 | 11,667 | |
Total | $ 16,876 | $ 19,984 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 11 | $ 0 | $ 33 | $ 0 |
Other interest expense | 0 | 1 | 27 | 2 |
Interest income | 0 | (1) | ||
Total interest expense, net | 110 | 1 | 375 | 2 |
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 55 | 0 | 197 | 0 |
Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 44 | $ 0 | $ 119 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 604 | $ 320 | $ 1,688 | $ 1,099 |
Variable rent costs | (46) | 155 | (139) | 141 |
Total rent expense | $ 558 | $ 475 | $ 1,549 | $ 1,240 |
Leases - Future Operating and F
Leases - Future Operating and Finance Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 - remaining 3 months | $ 632 | |
2022 | 2,178 | |
2023 | 1,796 | |
2024 | 1,298 | |
2025 | 613 | |
2026 and beyond | 104 | |
Total future minimum lease payments | 6,621 | |
Less: interest | 528 | |
Total lease liabilities | 6,093 | |
Current lease liability | 2,020 | $ 1,876 |
Long-term lease liability | 4,073 | 5,034 |
Total lease liabilities | 6,093 | |
Finance Leases | ||
2021 - remaining 3 months | 13 | |
2022 | 53 | |
2023 | 53 | |
2024 | 53 | |
2025 | 47 | |
2026 and beyond | 0 | |
Total future minimum lease payments | 219 | |
Less: interest | 11 | |
Total lease liabilities | 208 | |
Current portion of finance lease liability | 48 | $ 48 |
Long-term portion of finance lease liability | 160 | |
Total lease liabilities | $ 208 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finance lease cost: | ||||
Amortization of right-of-use assets | $ 12 | $ 7 | $ 36 | $ 35 |
Interest on lease liabilities | 1 | 1 | 4 | 3 |
Total finance lease cost | 13 | 8 | 40 | 38 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | 540 | 320 | 1,563 | 1,064 |
Finance cash flows from finance leases | 12 | 13 | 36 | 39 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 | 1,274 | 0 | 6,805 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted-average remaining lease term (years) - operating leases | 5 years 9 months 18 days | 7 years 8 months 12 days | 5 years 9 months 18 days | 7 years 8 months 12 days |
Weighted-average remaining lease term (years) - finance leases | 4 years 2 months 12 days | 2 years | 4 years 2 months 12 days | 2 years |
Weighted-average discount rate - operating leases | 6.00% | 6.00% | 6.00% | 6.00% |
Weighted-average discount rate - finance leases | 3.00% | 7.00% | 3.00% | 7.00% |
Capital Stock and Share-Based_3
Capital Stock and Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 80,735 | ||
Granted (in dollars per share) | $ 5.24 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 300,000 | $ 800,000 | |
Stock-based compensation expense not yet recognized | 1,500,000 | $ 1,500,000 | |
Weighted average remaining service period | 1 year 8 months 12 days | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 500,000 | $ 1,100,000 | |
Stock-based compensation expense not yet recognized | $ 2,000,000 | $ 2,000,000 | |
Weighted average remaining service period | 2 years | ||
RSUs granted (in shares) | 0 | 134,250 | |
RSUs granted (in dollars per share) | $ 11.35 | ||
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) | 5,530 | 14,447 | |
RSUs granted (in dollars per share) | $ 10.85 | $ 10.38 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 100,000 | $ 0 | $ 300,000 |
Capital Stock and Share-Based_4
Capital Stock and Share-Based Compensation - Fair Values of Stock Options (Details) - Stock Options | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 0.98% |
Expected volatility | 55.22% |
Expected term (in years) | 7 years |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 20,329 | $ 15,350 | $ 63,291 | $ 39,837 |
Technology development | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,461 | 2,040 | 5,629 | 5,275 |
Test, measurement and sensing systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,253 | 12,987 | 56,255 | 34,023 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 615 | 323 | 1,407 | 539 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17,106 | 12,987 | 52,044 | 34,023 |
Goods/services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,223 | 2,363 | 11,247 | 5,814 |
Fixed-price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19,745 | 14,717 | 60,882 | 37,667 |
Cost-type contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 584 | 633 | 2,409 | 2,170 |
Sales to the U.S. government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,713 | 2,599 | 7,629 | 6,119 |
U.S. direct commercial sales and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,444 | 6,130 | 25,642 | 15,503 |
Foreign commercial sales & other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,172 | 6,621 | 30,020 | 18,215 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,555 | 8,729 | 33,670 | 21,622 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,390 | 4,532 | 10,658 | 11,857 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,628 | 1,694 | 12,114 | 5,261 |
Canada, Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,756 | 319 | 6,849 | 782 |
All Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 76 | $ 0 | $ 315 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 2,883 | $ 4,139 |
Contract liabilities | 4,967 | 6,698 |
Net contract assets | $ (2,084) | $ (2,559) |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation Amount (Details) - Lightwave $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 38.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 36.00% |
Remaining performance obligation, period | 3 months |
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, percentage | 56.00% |
Remaining performance obligation, period | 1 year |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 35.90% | (97.28%) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2017 | |
Tunable lasers | ||||||||
Loss Contingencies [Line Items] | ||||||||
Non-cancelable purchase order commitment | $ 1.5 | $ 1.6 | ||||||
Non-cancelable purchase order delivery period | 12 months | |||||||
Non-cancelable purchase order commitment remaining | $ 1.7 | |||||||
High speed optical receivers business | Disposed of by Sale | ||||||||
Loss Contingencies [Line Items] | ||||||||
Escrow deposits related to indemnity claims | $ 2.5 | |||||||
Amount of the escrow balance received | $ 0.6 | $ 1.5 | ||||||
Loss on sale of discontinued operations | $ 1.4 | |||||||
High speed optical receivers business | Disposed of by Sale | Macom | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of the escrow balance received | $ 1.9 | |||||||
Macom | High speed optical receivers business | Disposed of by Sale | ||||||||
Loss Contingencies [Line Items] | ||||||||
Escrow deposits related to indemnity claims | $ 4 |