LUNA INNOVATIONS INC

CIK:0001239819|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 30,703	$ 29,153	$ 84,912	$ 77,795
Cost of revenue	13,074	12,234	35,445	30,633
Gross profit	17,629	16,919	49,467	47,162
Operating expense:
Selling, general and administrative	12,829	11,678	39,565	39,733
Research, development and engineering	2,719	2,776	8,257	7,983
Amortization of intangible assets	929	987	2,839	2,794
Total operating expense	16,477	15,441	50,661	50,510
Operating income/(loss)	1,152	1,478	(1,194)	(3,348)
Other income/(expense):
Other income	115	73	98	146
Interest expense, net	(613)	(218)	(1,566)	(442)
Total other expense, net	(498)	(145)	(1,468)	(296)
Income/(loss) from continuing operations before income taxes	654	1,333	(2,662)	(3,644)
Income tax expense/(benefit)	193	165	(723)	(527)
Net income/(loss) from continuing operations	461	1,168	(1,939)	(3,117)
Income/(loss) from discontinued operations, net of income tax expense/(benefit) of $—, $(78), $(346), and $3,205.	0	28	(1,038)	622
Gain on sale of discontinued operations, net of tax of $3,117	0	0	0	10,921
Net income/(loss) from discontinued operations	0	28	(1,038)	11,543
Net income/(loss)	$ 461	$ 1,196	$ (2,977)	$ 8,426
Net income/(loss) per share from continuing operations:
Basic (in dollars per share)	$ 0.01	$ 0.04	$ (0.06)	$ (0.10)
Diluted (in dollars per share)	0.01	0.03	(0.06)	(0.10)
Net income/(loss) per share from discontinued operations:
Basic (in dollars per share)	0	0.00	(0.03)	0.36
Diluted (in dollars per share)	0	0.00	(0.03)	0.36
Net income/(loss) per share attributable to common stockholders:
Basic (in dollars per share)	0.01	0.04	(0.09)	0.26
Diluted (in dollars per share)	$ 0.01	$ 0.04	$ (0.09)	$ 0.26
Weighted average shares:
Basic (in shares)	33,917,700	32,800,690	33,631,654	32,492,276
Diluted (in shares)	35,218,547	34,104,850	33,631,654	32,492,276

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows used in by operating activities
Net (loss)/income	$ (2,977)	$ 8,426
Adjustments to reconcile net (loss)/income to net cash used in operating activities
Depreciation and amortization	4,092	3,993
Share-based compensation	3,219	3,204
Loss on disposal of property and equipment	281	0
Gain on sale of discontinued operations, net of tax	0	(10,921)
Deferred taxes	(998)	(3,374)
Change in assets and liabilities
Accounts receivable	(6,095)	(6,166)
Contract assets	1,145	(2,739)
Inventory	(6,520)	(6,662)
Other current assets	202	2,093
Other non-current assets	(121)	599
Accounts payable and accrued and other current liabilities	(479)	5,824
Contract liabilities	111	2,425
Other non-current liabilities	0	13
Net cash used in operating activities	(8,140)	(3,285)
Cash flows used in investing activities
Acquisition of property and equipment	(1,750)	(2,313)
Acquisition of intangible property	(95)	0
Proceeds from sale of discontinued operations	0	12,973
Acquisition of Luna Innovations Germany GmbH	0	(22,085)
Other	0	29
Net cash used in investing activities	(1,845)	(11,396)
Cash flows provided by financing activities
Payments on finance lease obligations	(37)	(36)
Proceeds from borrowings under debt obligations	10,400	22,150
Payments of debt obligations	(1,750)	(16,275)
Repurchase of common stock	(436)	(294)
Proceeds from ESPP	546	521
Proceeds from the exercise of stock options	1,272	1,160
Net cash provided by financing activities	9,995	7,226
Effect of exchange rate changes on cash and cash equivalents	(6)	(1,784)
Net increase/(decrease) in cash and cash equivalents	4	(9,239)
Cash and cash equivalents—beginning of period	6,024	17,128
Cash and cash equivalents—end of period	6,028	7,889
Supplemental disclosure of cash flow information
Cash paid for interest	1,590	209
Cash paid for income tax	$ 3,206	$ 220

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 6,028	$ 6,024
Accounts receivable, net	39,304	33,249
Contract assets	7,324	7,691
Inventory	43,318	36,582
Prepaid expenses and other current assets	4,207	4,328
Total current assets	100,181	87,874
Property and equipment, net	4,892	4,893
Intangible assets, net	16,143	18,750
Goodwill	26,896	26,927
Operating lease right-of-use assets	7,999	4,661
Other non-current assets	3,338	3,255
Deferred tax asset	5,645	4,647
Total assets	165,094	151,007
Current liabilities:
Current portion of long-term debt obligations	3,000	2,500
Accounts payable	10,617	8,109
Accrued and other current liabilities	14,705	16,694
Contract liabilities	4,619	4,089
Current portion of operating lease liabilities	2,069	2,239
Total current liabilities	35,010	33,631
Long-term debt obligations, net of current portion	28,887	20,726
Long-term portion of operating lease liabilities	6,178	2,804
Other long-term liabilities	407	444
Total liabilities	70,482	57,605
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, par value $0.001, 100,000,000 shares authorized, 35,781,127 and 34,901,954 shares issued, 33,943,453 and 33,105,080 shares outstanding at September 30, 2023 and December 31, 2022, respectively	36	35
Treasury stock at cost, 1,837,674 and 1,796,862 shares at September 30, 2023 and December 31, 2022, respectively	(6,043)	(5,607)
Additional paid-in capital	109,634	104,893
Accumulated deficit	(5,273)	(2,296)
Accumulated other comprehensive loss	(3,742)	(3,623)
Total stockholders’ equity	94,612	93,402
Total liabilities and stockholders’ equity	$ 165,094	$ 151,007