View Filing Data

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Mar. 15, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	LUNA
Entity Registrant Name	LUNA INNOVATIONS INC
Entity Central Index Key	0001239819
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		28,356,322
Entity Public Float			$ 40.1

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 36,981,533	$ 12,802,458
Accounts receivable, net	9,857,009	10,269,012
Receivable from sale of HSOR business	4,000,976	0
Inventory	6,951,110	6,848,835
Prepaid expenses and other current assets	1,220,650	1,375,659
Current assets held for sale	0	5,801,629
Total current assets	59,011,278	37,097,593
Property and equipment, net	3,453,741	3,482,687
Intangible assets, net	3,237,593	3,367,217
Goodwill	502,000	502,000
Other assets	18,024	38,194
Non-current assets held for sale	0	10,509,282
Total assets	66,222,636	54,996,973
Current liabilities:
Current portion of long term debt obligations	1,833,333	1,833,333
Current portion of capital lease obligations	43,665	52,128
Accounts payable	2,962,863	2,954,742
Accrued liabilities	8,959,935	7,913,544
Deferred revenue	1,026,339	837,906
Current liabilities held for sale	0	2,376,703
Total current liabilities	14,826,135	15,968,356
Long-term portion of deferred rent	1,184,438	1,319,402
Long-term debt obligations	603,007	2,420,032
Long-term capital lease obligations	71,275	114,940
Non-current liabilities held for sale	0	84,555
Total liabilities	16,684,855	19,907,285
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2017 and 2016	1,322	1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 28,354,822 and 27,988,104 shares issued, 27,283,918 and 27,541,277 shares outstanding at December 31, 2017 and 2016, respectively	29,186	28,600
Treasury stock at cost, 1,070,904 and 446,827 shares at December 31, 2017 and 2016, respectively	(1,649,746)	(517,987)
Additional paid-in capital	83,563,208	82,451,958
Accumulated deficit	(32,406,189)	(46,874,205)
Total stockholders’ equity	49,537,781	35,089,688
Total liabilities and stockholders’ equity	$ 66,222,636	$ 54,996,973

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	1,321,514	1,321,514
Preferred stock issued (in shares)	1,321,514	1,321,514
Preferred stock outstanding (in shares)	1,321,514	1,321,514
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	100,000,000	100,000,000
Common stock issued (in shares)	28,354,822	27,988,104
Common stock outstanding (in shares)	27,283,918	27,541,277
Treasury stock (in shares)	1,070,904	446,827

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Technology development	$ 18,576,383	$ 16,280,582
Products and licensing	27,660,891	25,587,187
Total revenues	46,237,274	41,867,769
Cost of revenues:
Technology development	13,988,378	12,473,211
Products and licensing	14,120,071	13,589,858
Total cost of revenues	28,108,449	26,063,069
Gross profit	18,128,825	15,804,700
Operating expense:
Selling, general and administrative	14,770,986	14,763,709
Research, development and engineering	3,469,193	3,540,227
Total operating expense	18,240,179	18,303,936
Operating loss	(111,354)	(2,499,236)
Other income/(expense):
Other (expense)/income, net	(4,498)	13,071
Interest expense, net	(218,506)	(319,334)
Total other expense	(223,004)	(306,263)
Loss from continuing operations before income taxes	(334,358)	(2,805,499)
Income tax benefit	295,753	135,567
Net (loss)/income from continuing operations	(38,605)	(2,669,932)
Operating (loss)/income from discontinued operations, net of income tax expense of $23,762 and $210,933	(1,017,518)	300,440
Gain on sale, net of $912,298 of related income taxes	15,671,028	0
Net income from discontinued operations	14,653,510	300,440
Net income/(loss)	14,614,905	(2,369,492)
Preferred stock dividend	146,889	105,258
Net income/(loss) attributable to common stockholders	$ 14,468,016	$ (2,474,750)
Net loss per share from continuing operations:
Basic and diluted (in dollars per share)	$ 0.00	$ (0.10)
Net income per share from discontinued operations:
Basic and diluted (in dollars per share)	0.53	0.01
Net income/(loss) per share attributable to common stockholders:
Basic and diluted (in dollars per share)	$ 0.52	$ (0.09)
Weighted average shares:
Basic and diluted (in shares)	27,579,988	27,547,217

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Allocated tax expense	$ 23,762	$ 210,933
Tax effect on gain from sale of discontinued operations	912,298	0
Tax effect on income from discontinued operations	$ 900,000	$ 200,000

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References + Details

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($)

Total

Preferred Stock

Common Stock

Treasury Stock

Additional Paid in Capital

Accumulated Deficit

Beginning Balance (in shares) at Dec. 31, 2015

1,321,514

27,477,181

167,652

Beginning Balance at Dec. 31, 2015

$ 36,907,018

$ 1,322

$ 28,178

$ (184,934)

$ 81,461,907

$ (44,399,455)

Increase (Decrease) in Stockholders' Equity

Exercise of stock options (in shares)

Stock-based compensation (in shares)

319,000

Stock-based compensation

$ 860,215

$ 319

859,896

Non cash compensation (in shares)

24,271

Non-cash compensation

25,000

$ 24

24,976

Stock dividends

^[1]

$ 79

105,179

(105,258)

Purchase of treasury stock (in shares)

(279,175)

279,175

Purchase of treasury stock

(333,053)

$ (333,053)

Net income/(loss)

(2,369,492)

Ending Balance (in shares) at Dec. 31, 2016

1,321,514

27,541,277

446,827

Ending Balance at Dec. 31, 2016

$ 35,089,688

$ 1,322

$ 28,600

$ (517,987)

82,451,958

(46,874,205)

Increase (Decrease) in Stockholders' Equity

Exercise of stock options (in shares)

83,888

Exercise of stock option

$ 99,853

$ 84

99,769

Stock-based compensation (in shares)

147,333

Stock-based compensation

715,094

$ 287

714,807

Non cash compensation (in shares)

135,497

Non-cash compensation

150,000

$ 136

149,864

Stock dividends

^[1]

$ 0

$ 79

146,810

(146,889)

Purchase of treasury stock (in shares)

(433,179)

(624,077)

624,077

Purchase of treasury stock

$ (1,131,759)

Net income/(loss)

14,614,905

Ending Balance (in shares) at Dec. 31, 2017

1,321,514

27,283,918

1,070,904

Ending Balance at Dec. 31, 2017

$ 49,537,781

$ 1,322

$ 29,186

$ (1,649,746)

$ 83,563,208

$ (32,406,189)

[1]	The stock dividends payable in connection with the Series A Convertible Preferred Stock are issuable upon the request of Carilion.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Cash flows provided by/(used in) operating activities:
Net income/(loss)	$ 14,614,905	$ (2,369,492)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation and amortization	2,526,609	3,713,879
Stock-based compensation	715,094	860,215
Loss on disposal of fixed assets	3,640	0
Gain on sale of discontinued operations, net of income taxes	(15,671,028)	0
Bad debt	99,888	305,593
Changes in operating assets and liabilities:
Accounts receivable	1,152,055	(3,568,761)
Inventory	(1,902,311)	492,932
Other assets	83,428	(238,736)
Accounts payable and accrued expenses	(896,534)	564,689
Deferred revenue	189,296	(160,156)
Net cash provided by/(used in) operating activities	915,042	(399,837)
Cash flows provided by/(used in) investing activities:
Acquisition of property and equipment	(1,352,531)	(1,509,984)
Proceeds from sale of property and equipment	3,000	0
Intangible property costs	(495,597)	(490,200)
Proceeds from sale of discontinued operations, net	28,026,528	0
Net cash provided by/(used in) investing activities	26,181,400	(2,000,184)
Cash flows used in financing activities:
Payments on debt obligations	(1,833,333)	(1,871,635)
Payments on capital lease obligations	(52,128)	(56,873)
Purchase of treasury stock	(1,131,759)	(333,053)
Proceeds from the exercise of options	99,853	0
Net cash used in financing activities	(2,917,367)	(2,261,561)
Net change in cash and cash equivalents	24,179,075	(4,661,582)
Cash and cash equivalents—beginning of period	12,802,458	17,464,040
Cash and cash equivalents—end of period	36,981,533	12,802,458
Supplemental disclosure of cash flow information
Cash paid for interest	209,497	308,116
Cash paid for income taxes	377,907	233,732
Cash received for income tax refunds	0	67,127
Dividend on preferred stock, 79,292 shares of common stock issuable for each of the years ended December 31, 2017 and 2016	$ 146,889	$ 105,258

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Cash Flows [Abstract]
Dividend on preferred stock, common shares issuable (in shares)	79,292	79,292

Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies

Luna Innovations Incorporated (“we” or the "Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003.

We are a leader in advanced optical technology, providing unique capabilities in high speed optoelectronics and high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive industries. Our distributed fiber optic sensing products provide critical stress, strain and temperature information to designers and manufacturers working with advanced materials. Our custom optoelectronic products are sold to scientific instrumentation manufacturers for various applications such as metrology, missile guidance, flame monitoring, and temperature sensing. In addition, we 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 to perform applied research services on government funded projects across a range of technologies and also for corporate customers in the fiber optic sensing area. We are organized into two business segments: our Technology Development segment and our Products and Licensing segment. Our Technology Development segment performs applied research principally on government-funded projects. Most of the government funding in our Technology Development segment is derived from the U.S. government’s Small Business Innovation Research ("SBIR") program coordinated by the U.S. Small Business Administration ("SBA"). Our Products and Licensing segment focuses on fiber optic test & measurement, sensing, and instrumentation products and also conducts applied research in the fiber optic sensing area to corporate and government customers.

We have a history of net losses. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital markets transactions and the sale of assets.

Although there can be no guarantees, we believe that our current cash and cash equivalents balance provides adequate liquidity for us to meet our working capital needs for the foreseeable future.

Consolidation Policy

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of the Company and its wholly owned subsidiaries. We eliminate from our financial results intercompany transactions.

Use of Estimates

The preparation of our consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes.

Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions.

Technology Development Revenues

We perform research and development for U.S. government agencies, educational institutions and commercial organizations. We recognize revenues under research contracts when a contract has been executed, the contract price is fixed and determinable, delivery of services or products has occurred and collection of the contract price is considered reasonably assured. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred.

Under cost reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and are paid a fixed fee representing the profit negotiated between us and the contracting agency. Revenue from cost reimbursable contracts is recognized as costs are incurred plus a portion of the fee earned. Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs.

Revenue from fixed price research contracts that involve the delivery of services and a prototype model is recognized under the percentage of completion method by determining proportional performance based upon the ratio of costs incurred to achieve contract milestones to total estimated cost as this method more accurately measures performance under these arrangements. Losses on contracts, if any, are recognized in the period in which they become known and estimable.

Product Sales Revenues

Revenues from product sales are generated by the sale of commercial products and services under various sales programs to the end user and through distribution channels. We sell fiber optic sensing systems to end users for use in numerous fiber optic based measurement applications. Revenues are recorded net of applicable sales taxes collected from customers and payable to state or local governmental entities.

We recognize revenue relating to our products when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable and collectability of the resulting receivable is reasonably assured.

For multi-element arrangements that include tangible products that contain software that is essential to the tangible product’s functionality, we allocate revenue to all deliverables based on their relative selling prices. Other deliverables include extended warranty, training and various add-on products. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("ESP"). VSOE exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. Our product sales often include bundled products, options, and services and therefore VSOE is not readily determinable. In addition, we believe that because of unique features of our products, TPE also is not available. Also, due to the uniqueness of our products comparable third party evidence is generally not available. ESP, which is used when VSOE and TPE does not exist, reflects our best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis.

Our process for determining our ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors considered in developing the ESPs include prices charged by us for similar offerings, our historical pricing practices, the nature of the deliverables, and the relative ESP of all of the deliverables as compared to the total selling price of the product. We may also consider, when appropriate, the impact of other products and services on selling price assumptions when developing and reviewing our ESPs.

Revenues from product sales that require no ongoing obligations are recognized as revenues when shipped to the customer, title has passed and collection is reasonably assured.

Allowance for Uncollectible Receivables

Accounts receivable are recorded at their face amount, less an allowance for doubtful accounts. We review the status of our uncollected receivables on a regular basis. In determining the need for an allowance for uncollectible receivables, we consider our customers’ financial stability, past payment history and other factors that bear on the ultimate collection of such amounts. The allowance was $0.3 million at December 31, 2017 and $0.2 million at December 31, 2016.

Cash Equivalents

We consider all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. To date, we have not incurred losses related to cash and cash equivalents. Cash equivalents at December 31, 2017 and 2016 include $25.2 million and $0, respectively, invested in U.S. Treasury obligations through a sweep account with our bank. The full value of amounts invested through the sweep account are convertible to cash on a daily basis. Our cash transactions are processed through reputable commercial banks. We regularly maintain cash balances with financial institutions which exceed Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2017 and December 31, 2016, we had approximately $11.5 million and $12.6 million, respectively, in excess of FDIC insured limits.

We have outstanding term loans that require us to comply with certain financial covenants, including maintaining a minimum cash balance of at least $4.0 million.

Fair Value Measurements

Our financial assets and liabilities are measured at fair value, which is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. Valuation techniques are based on observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair value hierarchy:


•	Level 1—Quoted prices for identical instruments in active markets.


•	Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant value drivers are observable.


•	Level 3—Valuations derived from valuation techniques in which significant value drivers are unobservable.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. We consider the terms of the Silicon Valley Bank ("SVB") debt facility including its interest rate of prime plus 2%, to be at market based upon similar instruments that would be available to us.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. We record depreciation using the straight-line method over the following estimated useful lives:



Equipment	3 – 7 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Lesser of lease term or life of improvements

Intangible Assets

Intangible assets consist of patents related to certain intellectual property that we have developed or acquired and identifiable intangible assets recognized in connection with our merger with Advanced Photonix, Inc. ("API"). We amortize our identified intangible assets over their estimated useful lives ranging between one and eleven years, and analyze the reasonableness of the remaining useful life whenever events or circumstances indicate that the carrying amount may not be recoverable to determine whether their carrying value has been impaired.

Research, Development and Engineering

Research, development and engineering expenses not related to contract performance are expensed as incurred. We expensed $3.5 million of non-contract related research, development and engineering expenses for each of the years ended December 31, 2017 and 2016.

Valuation of Long-Lived Assets

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less cost to sell.

Inventory

Inventory consists of finished goods, work in process and raw materials valued at the lower of cost (determined on the first-in, first-out basis) or market.

Net Income/(Loss) per Share

Basic per share data is computed by dividing net income/(loss) attributable to common stockholders by the weighted average number of shares outstanding during the period. Diluted per share data is computed by dividing net income/(loss) attributable to common stockholders by the weighted average shares outstanding during the period increased to include, if dilutive, the number of additional common share equivalents that would have been outstanding if potential common shares had been issued using the treasury stock method. Diluted per share data would also include the potential common share equivalents relating to convertible securities by application of the if-converted method.

The effect of 4.3 million and $5.5 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are not included for the year ended December 31, 2017 and 2016, as they are anti-dilutive to earnings per share due to us having a net loss from continuing operations.

Stock-Based Compensation

We have two stock-based compensation plans, which are described further in Note 9. We recognize compensation expense based upon the fair value of the underlying equity award as of the date of grant. We have elected to use the Black-Scholes option pricing model to value any stock options granted. Restricted stock and restricted stock units awarded are valued at the closing price of our common stock on the date of the award. We recognize stock-based compensation for such awards on a straight-line method over the requisite service period of the awards taking into account the effects of the employees’ expected exercise and post-vesting employment termination behavior.

We recognize expense for equity instruments issued to non-employees based upon the fair value of the equity instruments issued.

Advertising

We expense the cost of advertising as incurred. Advertising expenses were $0.1 million for each of the years ended December 31, 2017 and 2016.

Income Taxes

We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We evaluate our ability to benefit from all deferred tax assets and establish valuation allowances for amounts we believe are not more-likely-than-not to be realizable. For uncertain tax positions, we use a more-likely-than-not threshold, 51% or greater, based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. Penalties, if probable and reasonably estimable, and interest expense related to uncertain tax positions are recognized as a component of the tax provision.

We account for income taxes using the liability method. Deferred tax assets or liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when the differences reverse. A valuation allowance against net deferred tax assets is provided unless we conclude it is more likely than not that the deferred tax assets will be realized.

Recent Accounting Pronouncements

Effective January 1, 2017, we adopted Accounting Standards Update ("ASU") No. 2016-09, Improvements to Employee Share-Based Payment Accounting. These amendments apply to several aspects of accounting for share-based compensation including the recognition of excess tax benefits and deficiencies and their related presentation in the statement of cash flows as well as accounting for forfeitures. The adoption of ASU No. 2016-09 did not have a significant impact on our consolidated financial statements.

Effective January 1, 2017, we adopted ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be classified as noncurrent in any classified balance sheet rather than being separated into current and non-current amounts. The adoption of ASU No. 2015-17 did not have a significant impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires a lessee to recognize in its statement of financial position an asset and liability for most leases with a term greater than 12 months. Lessees should recognize a liability to make lease payments and a right-of-use asset representing the lessee's right to use the underlying asset for the lease term. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments should be applied retrospectively to all periods presented. We do not expect ASU 2016-15 will have a material impact on our financial statements.

In December 2016, the FASB issued ASU No. 2016-20, Technical corrections and improvements to Topic 606, Revenue from Contracts with Customers. This update provides additional clarification and implementation guidance on the previously issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard, as subsequently updated in July 2015, is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).

We have completed our assessment of the impact of Topic 606 and have reached the following conclusions regarding its impact on our revenue recognition policies and procedures. Contracts in our Technology Development segment primarily provide research services. We have concluded that revenue specific to this segment will not be materially impacted upon the adoption of Topic 606 as revenue will continue to be recognized over time using an input model. Contracts in our Products and Licensing segment generally provide for the following revenue sources: standard product sales, custom product development and sales, product rental, extended warranties, training/service, and certain royalties. We expect revenues for this segment to be recognized using either the “point in time” or “over time” methods of Topic 606, depending upon the revenue source. We expect the pattern of recognition of custom optoelectronic products to change from “point in time” to “over time” upon the adoption of Topic 606. Our revenue recognized specific to custom products approximates $10 million annually. This change will result in the acceleration of revenue when compared to existing standards with the cumulative adjustment relating to contracts that are not complete as of December 31, 2017 recognized as an adjustment to opening retained earnings on January 1, 2018. Our revenue for our standard products will be recognized using the "point in time" criteria of Topic 606, and the timing of such revenue recognition is not expected to differ materially from our historical revenue recognition. Other immaterial adjustments related to the products segment that are sometimes offered to customers include discounts on future purchases related to rental agreements, customer rights of return, and volume discounts. We are adopting the standard using the modified retrospective transition method. Under the modified retrospective approach, the new standard will, for the period beginning January 1, 2018, apply to new contracts and those that were not completed as of January 1, 2018. For those contracts not completed as of January 1, 2018, this method will result in a cumulative adjustment to increase retained earnings in the amount of $0.4 million. Prior periods will not be retrospectively adjusted, but we will maintain dual reporting for the year of initial application in order to disclose the effect on revenue of adopting the new guidance.

In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the subsequent measurement of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard will be effective for reporting periods beginning after December 15, 2019. We do not expect ASU 2017-04 will have a material impact on our financial statements.

Inventory

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

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 market.

Components of inventory are as follows:



	December 31,
	2017		2016
Finished goods	$	2,143,953	$	1,952,885
Work-in-process	578,195		714,867
Raw materials	4,228,962		4,181,083
	$	6,951,110	$	6,848,835

Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt

Silicon Valley Bank Facility

We currently have a Loan and Security Agreement with SVB under which we have a term loan with an original borrowing amount of $6.0 million (the “Term Loan”). The Term Loan was to be repaid by us in 48 monthly installments, plus accrued interest payable monthly in arrears and matured on May 1, 2015. On May 8, 2015, in connection with the merger with Advanced Photonics, Inc. ("API"), we entered into the Joinder, Consent and Sixth Loan Modification Agreement (the "2015 Term Loan") under which we borrowed $6.0 million and used the proceeds principally to repay the then outstanding debt of API at the time of the Merger. The 2015 Term Loan is to be repaid by us in 48 monthly installments, plus accrued interest payable monthly in arrears and matures at the earlier of May 1, 2019, or upon an event of a default under the loan agreement. The term loan carries a floating annual interest rate equal to prime rate then in effect, as published in the Wall Street Journal, plus 2%. We may prepay amounts due under the 2015 Term Loan at any time, subject to an early termination fee of up to 2% of the amount of prepayment.

On September 29, 2015, we entered into the Waiver and Seventh Loan Modification Agreement with SVB, under which we borrowed an additional $1.0 million in December 2015 to fund certain anticipated capital expenditures (the "2015 Equipment Term Loan"). The principal amount plus accrued interest of the 2015 Equipment Term Loan is to be repaid by us in 36 monthly installments. The 2015 Equipment Term Loan carries a floating annual interest rate equal to the prime rate then in effect, as published in the Wall Street Journal, plus 2%. We may prepay amounts due under the 2015 Equipment Term Loan at any time, subject to an early termination fee of up to 2% of the amount of prepayment.

In December 2016, we entered into the Eighth Loan Modification Agreement with SVB, under which the financial covenants were modified.

Amounts due under the 2015 Term Loan and the 2015 Equipment Term Loan (collectively, the "Term Loans") are secured by substantially all of our assets, including intellectual property, personal property and bank accounts.

In addition, the Term Loans contain customary events of default, including nonpayment of principal, interest or other amounts, violation of covenants, material adverse change, an event of default under any subordinated debt documents, incorrectness of representations and warranties in any material respect, bankruptcy, judgments in excess of a threshold amount, and violations of other agreements in excess of a threshold amount. The Term Loans require that we meet certain financial covenants, including a minimum cash balance of $4.0 million, and a minimum liquidity coverage ratio, each as defined in the 2015 Equipment Term Loan. If any event of default occurs, SVB may declare due immediately all borrowings under the Term Loans and foreclose on the collateral. Furthermore, an event of default under the Term Loans would result in an increase in the interest rate on any amounts outstanding. As of December 31, 2017, we were in compliance with all covenants under the Term Loans.

The balance under the Term Loans at December 31, 2017 was $2.5 million, of which $1.8 million was classified as short-term. The effective rate of our Term Loans at December 31, 2017 was 6.5%.

The following table presents a summary of debt outstanding as of December 31, 2017 and 2016:



	December 31,
	2017		2016
Silicon Valley Bank Term Loans	$	2,458,333	$	4,291,667
Less: unamortized debt issuance costs	21,993		38,302
Less: current portion	1,833,333		1,833,333
Total long-term debt obligations	$	603,007	$	2,420,032

Debt issuance costs associated with the issuance of the SVB Term Loans totaled $55 thousand. Amortization of debt issuance costs is computed using the straight line method and is included in interest expense. Amortization of the debt issuance costs totaled $16 thousand for the year ended December 31, 2017.

Maturities on long-term debt are as follows:



Year	Amount
2018	$	1,833,333
2019	625,000
Total	$	2,458,333

Interest expense for the years ended December 31, 2017 and 2016 consisted of the following:



	Years ended December 31,
		2017			2016
Interest expense on Term Loans		$	202,850		$	287,491
Amortization of debt issuance costs		16,308			16,308
Other interest (income)/expense		(652		)	15,535
Total interest expense		$	218,506		$	319,334

Accounts Receivable-Trade

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Accounts Receivable-Trade

Accounts Receivable—Trade

Accounts receivable consist of the following:



	December 31,
	2017			2016
Billed	$	8,186,961		$	8,519,581
Unbilled	1,921,256			1,977,191
Other	35,509			19,479
	10,143,726			10,516,251
Less: allowance for doubtful accounts	(286,717		)	(247,239		)
	$	9,857,009		$	10,269,012

Unbilled receivables result from contract retainages and revenues that have been earned in advance of billing and can be invoiced at contractually defined intervals, milestones, or at completion of the contract. Unbilled amounts are expected to be billed in future periods and are classified as current assets in accordance with industry practice.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net, consists of the following:



	December 31,
	2017			2016
Building	$	69,556		$	69,556
Equipment	9,246,094			8,649,886
Furniture and fixtures	592,258			591,569
Software	1,139,715			1,137,043
Leasehold improvements	4,984,010			4,973,556
	16,031,633			15,421,610
Less—accumulated depreciation	(12,577,892		)	(11,938,923		)
	$	3,453,741		$	3,482,687

Depreciation for the years ended December 31, 2017 and 2016 was approximately $0.7 million and $0.8 million, respectively.

Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following is a summary of intangible assets, net:



	December 31,
	2017			2016
Patent costs	$	4,668,577		$	4,263,386
Developed technology	2,200,000			2,200,000
Customer base	1,200,000			1,200,000
Backlog	200,000			200,000
	8,268,577			7,863,386
Accumulated amortization	(5,030,984		)	(4,496,169		)
	$	3,237,593		$	3,367,217

Amortization for the years ended December 31, 2017 and 2016 was approximately $0.5 million and $0.6 million, respectively. Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2017, for each of the next five years and beyond is as follows:



Year Ending December 31,
2018	466,193
2019	397,132
2020	373,032
2021	362,038
2022	354,733
2023 and beyond	1,284,465
	$	3,237,593

Accrued Liabilities

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following:



		December 31,
		2017		2016
	Accrued compensation	$	5,274,005	$	4,742,760
	Claims reserve	1,637,118		1,577,123
	Accrued sub-contracts	544,342		483,477
	Accrued professional fees	117,445		67,719
	Accrued income tax	403,548		—
	Deferred rent	144,741		155,138
	Royalties	290,235		345,895
	Warranty reserve	210,599		185,125
	Accrued liabilities-other	337,902		356,307
Total accrued liabilities		$	8,959,935	$	7,913,544

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income tax expense/(benefit) from continuing operations consisted of the following for the periods indicated:



	Years ended December 31,
	2017			2016
Current:
Federal	$	(320,560	)	$	—
State	24,807			(135,567		)
Deferred federal	—			—
Deferred state	—			—
Income tax benefit	$	(295,753	)	$	(135,567	)

Deferred tax assets and liabilities consist of the following components:



	December 31, 2017					December 31, 2016
	Current		Long-Term			Current			Long-Term
Bad debt and inventory reserve	$	—	$	226,358		$	382,075		$	—
Inventory adjustment	—		405,242			—			940,885
UNICAP	—		32,579			—			46,593
Deferred revenue			84,669			—			154,608
Deferred rent	—		340,199			—			550,419
Depreciation and amortization	—		(1,238,458		)	—			(3,490,869		)
Charitable contributions	—		3,385			—			5,741
Net operating loss carryforwards- Luna	—		349,421			—			4,779,976
Net operating loss carryforwards- API	—		1,436,568			—			9,783,512
Net operating loss carryforwards - state	—		534,194			—			281,799
Net operating loss carryforwards- Canada	—		10,503			—			10,503
Research and development credits	—		235,613			—			4,250,803
California manufacturing credit	—		15,554			—			15,554
Accrued liabilities	—		504,472			1,067,019			—
Deferred compensation	—		223,607			—			267,897
Stock-based compensation	—		1,275,371			—			1,867,947
AMT credit	—		581,467			—			395,083
Total	—		5,020,744			1,449,094			19,860,451
Valuation allowance	—		(5,020,744		)	(1,449,094		)	(19,860,451		)
Net deferred tax asset	$	—	$	—		$	—		$	—

The benefit from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our loss from continuing operations before income taxes as follows for the periods indicated:



	Years ended December 31,
	2017		2016
Income tax expense at federal statutory rate	34.00	%	34.00	%
State taxes, net of federal tax effects	(102.48	)%	(0.93	)%
Change in tax rate from Tax Cuts and Jobs Act	(568.11	)%	—	%
Change in valuation allowance	796.72	%	(18.17	)%
Incentive stock options	(69.26	)%	(9.00	)%
Provision to return adjustments	27.75	%	(0.82	)%
Meals and entertainment	(4.69	)%	(0.64	)%
Capitalized merger costs	—	%	—	%
Windfall deduction	—	%	—	%
Other permanent differences	(25.48	)%	0.35	%
Income tax benefit	88.45	%	4.79	%

The realization of our deferred income tax assets is dependent upon sufficient taxable income in future periods. In assessing whether deferred tax assets may be realized, we consider whether it is more likely than not that some portion, or all, of the deferred tax asset will be realized. We consider scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies that we can implement in making our assessment. We have U.S. federal income tax net operating loss carryforwards at December 31, 2017 of approximately $1.7 million for Luna and net operating loss carryforwards of approximately $6.8 million for API expiring at varying dates through 2025. We have research and development tax credit carryforwards at December 31, 2017 of approximately $0.2 million, which expire at varying dates through 2024.

In 2015, we performed a formal section 382 study and determined that we do not have a limitation on our net operating loss available to offset future income for the Luna net operating losses. As a result of the acquisition of API, the API net operating loss carryover and research and development credits will be subject to the Section 382 limitation. A formal Section 382 study was prepared in 2017, and it was determined that there was no ownership changes in 2017 resulting in a limitation on NOLs, but a portion of the net operating losses will expire unutilized. As there is a full valuation allowance against all of the API deferred tax assets, there will not be a statement of operations impact to any expiration of the net operating losses or research and development credits.

The U.S. federal statute of limitations remains open for the year 2014 and onward. We currently have no federal income tax returns under examination. U.S. state jurisdictions have statutes of limitation generally ranging from three to seven years. We currently have no state income or franchise tax returns under examination. We currently do not file tax returns in any foreign tax jurisdiction other than Canada.

We currently have no positions for which we expect that the amount of unrecognized tax benefit will increase or decrease significantly within twelve months of the reporting date or for which we believe there is significant risk of disallowance upon audit. We have no tax interest or penalties reported in either our statement of operations or statement of financial position for any year reported herein. Management believes it is not more likely than not that the deferred tax assets at December 31, 2017 or December 31, 2016 will not be realized, and as a result a valuation allowance was established against all such deferred tax assets.

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation makes significant changes in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21%. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation resulted in a $1.9 million reduction in the deferred tax asset and a corresponding reduction in the valuation allowance. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on the 2017 financial statements.

Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Series A Convertible Preferred Stock

In January 2010, we entered into a transaction with Carilion, in which Carilion agreed to exchange all of its Senior Convertible Promissory Notes with an original principal amount of $5.0 million plus all accrued but unpaid interest, totaling $1.2 million, for 1,321,514 shares of our newly designated Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock is non-voting, carries a dividend of 6% payable in shares of common stock and maintains a liquidation preference up to $6.2 million. As of December 31, 2017, 631,693 shares of common stock were issuable to Carilion as dividends and have been recorded in the statement of stockholders’ equity. These dividends are issuable on demand. Each share of Series A Convertible Preferred Stock may be converted into one share of our common stock at the option of the holder. We recorded the fair value of the Series A Convertible Preferred Stock, determined based upon the conversion value immediately prior to the exchange, the fair value of the new warrant issued to Carilion, determined using the Black-Scholes valuation model, and the incremental fair value of the prior warrant due to the re-pricing and extension of maturity to stockholders’ equity.

Warrants

Carilion Clinic holds unexercised warrants for 366,000 shares of our common stock. The warrants have an exercise price of $2.50 per share and expire on December 31, 2020.

Equity Incentive Plans

In April 2016, we adopted our 2016 Equity Incentive Plan (the "2016 Plan") as a successor to the 2006 Plan. Under the 2016 Plan, our Board of Directors is authorized to grant both incentive and non-statutory stock options to purchase common stock and restricted stock awards to our employees, directors, and consultants. The 2016 Plan provides for the issuance of 3,500,000 shares plus any amounts forfeited from grants under the 2006 Plan after the expiration date of the 2006 Plan. Options generally have a life of 10 years and exercise price equal to or greater than the fair market value of the Common Stock as determined by the Board of Directors.

Vesting for employees typically occurs over a four-year period.

The following table sets forth the activity of the options to purchase common stock under the 2006 Plan and the 2016 Plan. The prices represent the closing price of our Common Stock on the NASDAQ Capital Market on the respective dates.



	Options Outstanding							Options Exercisable
	Number of Shares		Price per Share Range	Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Number of Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value (1)
Balance at January 1, 2016	3,800,728		$0.61 - 8.43	$	2.17	$	111,314	3,045,150	$	2.39	$	103,603
Forfeited	(963,614	)	$1.18 - 8.43	$	2.99
Exercised	—		0	$	—
Granted	20,000		$1.15	$	1.15
Balance at December 31, 2016	2,857,114		$0.61 - 6.83	$	1.89	$	107,063	2,367,630	$	1.93	$	101,071
Forfeited	(178,665	)	$1.27 - 6.83	$	2.24
Exercised	(83,888	)	$0.82 - 1.40	$	1.19
Granted	120,000		$1.51 - 2.40	$	1.82
Balance at December 31, 2017	2,714,561		$0.61 - 6.55	$	1.88	$	2,098,195	2,590,030	$	1.89	$	2,013,034


(1)	The intrinsic value of an option represents the amount by which the market value of the stock exceeds the exercise price of the option of in-the-money options only.

The fair value of each option granted is estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:



	Years ended December 31,
	2017	2016
Risk-free interest rate range	2.1%	1.5%
Expected life of option-years	6.5	7.5
Expected stock price volatility	69%	73%
Expected dividend yield	—%	—%

The risk-free interest rate is based on U.S. Treasury interest rates, the terms of which are consistent with the expected life of the stock options. Expected volatility is based upon the average historical volatility of our common stock over the period commensurate with the expected term of the related instrument. The expected life and estimated post-employment termination behavior is based upon historical experience of homogeneous groups, executives and non-executes, within our company. We do not currently pay dividends on our common stock nor do we expect to in the foreseeable future.



		Options Outstanding			Options Exercisable
	Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Life in Years	Weighted Average Exercise Price	Options Exercisable	Weighted Average Exercise Price of Options Exercisable
Year ended December 31, 2016	$0.61 - 6.83	2,857,114	5.09	$1.89	2,637,630	$1.93
Year ended December 31, 2017	$0.61 - 6.55	2,714,561	4.23	$1.88	2,590,030	$1.89



	Total Intrinsic Value of Options Exercised		Total Fair Value of Options Vested
Year ended December 31, 2016	$	—	$	370,654
Year ended December 31, 2017	$	62,549	$	3,962,746

For the years ended December 31, 2017 and 2016, the weighted average grant date fair value of options granted was $1.18 and $1.15, respectively, per share. We estimate the fair value of options at the grant date using the Black-Scholes model. For all stock options granted through December 31, 2017, the weighted average remaining service period is 3.2 years.

Restricted Stock and Restricted Stock Units

In 2017 and 2016, we issued 349,000 and 319,000, respectively, shares of restricted stock to certain employees. Shares issued to employees vest in three equal annual installments on the anniversary dates of their grant. In 2017 and 2016, 530,542 and 245,583 shares, respectively, of restricted stock vested.

In addition, in 2017 and 2016, we issued 129,865 and 86,956, respectively, restricted stock units to members of our Board of Directors. Restricted stock units issued to our Board of Directors vest at the earlier of the one year anniversary of their grant or the next annual stockholders' meeting. In 2017 and 2016, 86,956 and 48,542 restricted stock units, respectively, vested.

The following table summarizes our aggregate restricted stock awards and restricted stock unit activity in 2016 and 2017:



	Number of Unvested Shares		Weighted Average Grant Date Fair Value	Aggregate Value of Unvested Shares
Balance at January 1, 2016	718,167		$1.22	$	874,186
Granted	405,956		$1.15	$	466,849
Vested	(294,125	)	$1.20	$	(352,272	)
Forfeitures	—		$0.00	$	—
Balance at December 31, 2016	829,998		$1.19	$	988,763
Granted	478,865		$1.63	$	780,252
Vested	(617,498	)	$1.23	$	(758,653	)
Forfeitures	(201,667	)	$1.35	$	(272,017	)
Balance at December 31, 2017	489,698		$1.51	$	738,345

We recognized $0.7 million and $0.9 million in stock-based compensation expense, which is recorded in selling, general and administrative expenses on the consolidated statement of operations for the years ended December 31, 2017 and 2016, respectively, and we will recognize $0.5 million over the remaining requisite service period.

Non-employee Director Deferred Compensation Plan

We maintain a non-employee director deferred compensation plan (the “Deferred Compensation Plan”) that permits our non-employee directors to defer receipt of certain of the compensation that they receive for serving on our board and board committees. During the years ended December 31, 2017 and 2016, the Deferred Compensation Plan permitted the participants to elect to defer cash fees to which they were entitled for board and committee service. For participating directors, in lieu of payment of cash fees, we credit their accounts under the Deferred Compensation Plan with a number of stock units based on the trading price of our common stock as of the date of the deferral. These stock units are vested immediately, although the participating directors do not receive the shares represented by such units until a future qualifying event. A summary of stock unit activity under the Deferred Compensation Plan for 2016 and 2017 is as follows.



	Number of Stock Units		Weighted Average Grant Date Fair Value per Share	Intrinsic Value Outstanding
January 1, 2016	315,382		$1.38
Granted	101,901		$1.21
Vested	—		$1.01
Converted	(24,271	)	$1.01
December 31, 2016	393,012		$1.37	$	577,728
Granted	73,690		$1.54
Vested	—		$1.15
Converted	—		$0.00
December 31, 2017	466,702		$1.40	$1,134,086

In December 2017, we amended and restated our Deferred Compensation Plan to also permit participating non-employee directors to elect, beginning in 2018, to defer the receipt of some or all of the equity compensation that they receive for board and committee service.

Stock Repurchase Program

In May 2016, our board of directors authorized us to repurchase up to $2.0 million of our common stock through May 31, 2017. As of May 31, 2017, we had repurchased a total of 205,500 shares for an aggregate purchase price of $0.2 million under this stock repurchase program, after which this stock repurchase program expired.

In September 2017, our board of directors authorized a new stock repurchase program and providing for the repurchase of up to $2.0 million of our common stock through September 19, 2018. Our stock repurchase program does not obligate us to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. As of December 31, 2017, we had repurchased a total of 433,179 shares for an aggregate purchase price of $0.8 million under this stock repurchase program. In addition, in December 2017 we repurchased 100,000 shares directly from a member of our Board of Directors outside of the repurchase program. We currently maintain all repurchased shares under these stock repurchase programs as treasury stock. The following chart details our share repurchases during the year ended December 31, 2017:



	Total Number of Shares Repurchased	Average Price Paid per Share
January 1 - September 30, 2017	141,000	$1.62
October 2017	193,323	$1.62
November 2017	130,120	$1.68
December 2017	159,634	$2.35

We currently maintain these repurchased shares as treasury stock.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Obligation under Operating Leases

We lease facilities in Virginia, Michigan, California, and Canada under operating leases that as of December 31, 2017 were scheduled to expire between March 2019 and December 2024. Certain of the leases are subject to fixed escalations and provide for possible termination prior to their expiration dates. We recognize rent expense on such leases on a straight-line basis over the lease term. The difference between the straight line method and cash paid is reflected in changes to the deferred rent balance in our consolidated balance sheets. Deferred rent primarily resulted from recognition of the value of certain leasehold improvements associated with our Blacksburg, Virginia facility at the inception of the lease. Rent expense under these leases recorded in selling, general and administrative expense on our statements of operations totaled approximately $1.1 million and $1.5 million, respectively, for the years ended December 31, 2017 and 2016.

Minimum future payments, as of December 31, 2017, under the aforementioned operating leases for each of the next five years and thereafter are:



2018	1,284,524
2019	833,094
2020	715,848
2021	544,704
2022	544,704
Thereafter	1,089,408
	$	5,012,282

Purchase Commitment

In 2016 we executed two non-cancelable purchase orders totaling $1.5 million for multiple shipments of tunable lasers to be delivered over an 18-month period beginning in the third quarter of 2016. At December 31, 2017, approximately $0.1 million of this commitment remained under these purchase agreements. In the third quarter of 2017 we executed a non-cancelable purchase order totaling $0.5 million for multiple shipments of tunable lasers to be delivered over an 18-month period beginning the third quarter of 2017. At December 31, 2017, approximately $0.5 million of this commitment remained under this purchase order.

Royalty Agreement

We have licensed certain third-party technologies from vendors for which we owe minimum royalties aggregating $0.7 million payable over the remaining patent terms of the underlying technology.

Employee Profit Sharing Plan	12 Months Ended
Employee Profit Sharing Plan	Dec. 31, 2017
Retirement Benefits [Abstract]
Employee Profit Sharing Plan	Employee Profit Sharing Plan We maintain a salary reduction/profit-sharing plan under provisions of Section 401(k) of the Internal Revenue Code. The plan is offered to all permanent employees of Luna Innovations Incorporated and its wholly-owned subsidiaries. We contribute 25% of the salary deferral elected by each employee up to a maximum deferral of 10% of annual salary. We contributed approximately $0.3 million to the plan for each of the years ended December 31, 2017 and 2016.

Litigation and Other Contingencies	12 Months Ended
Litigation and Other Contingencies	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Litigation and Other Contingencies	Litigation and Other Contingencies From time to time, we may become involved in litigation in relation to claims arising out of our operations in the normal course of business. While management currently believes it is not reasonably possible the amount of ultimate liability, if any, with respect to these actions will have a material adverse effect on our financial position, results of operations or liquidity, the ultimate outcome of any litigation is uncertain. In September 2014, we received a preliminary audit report from the Defense Contract Audit Agency ("DCAA"), with respect to our 2007 incurred cost submission and questioning $0.8 million of claimed costs that the DCAA believes are expressly unallowable under the Federal Acquisition Regulations and, therefore, subject to potential penalty. In June 2015, we received from the Defense Contract Management Agency (the "DCMA") a final determination and demand for payment of penalties, interest, and over billing in the aggregate amount of $1.1 million. In July 2015, we filed an appeal with the Armed Services Board of Contract Appeals ("ASBCA"). On November 29, 2017, ASBCA ruled that the claimed costs were unallowable for reimbursement but were not considered to be expressly unallowable under the FAR, and accordingly were not subject to the penalties assessed by the DCMA. The ruling is subject to appeal by the DCMA. We have made, and will continue to make, efforts to comply with current and future environmental laws. We anticipate that we could incur additional capital and operating costs in the future to comply with existing environmental laws and new requirements arising from new or amended statutes and regulations. In addition, because the applicable regulatory agencies have not yet promulgated final standards for some existing environmental programs, we cannot at this time reasonably estimate the cost for compliance with these additional requirements. The amount of any such compliance costs could be material. We cannot predict the impact that future regulations will impose upon our business.

Relationship with Major Customers	12 Months Ended
Relationship with Major Customers	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Relationship with Major Customers	Relationship with Major Customers During the years ended December 31, 2017 and 2016, approximately 48% and 41%, respectively, of our consolidated revenues were attributable to contracts with the U.S. government. At December 31, 2017 and 2016, receivables with respect to contracts with the U.S. government represented 20% and 14% of total trade receivables, respectively.

Financial Information About Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Financial Information About Segments

Our operations are divided into two operating segments: Technology Development and Products and Licensing. Our engineers and scientists collaborate with our network of government, academic and industry experts to identify technologies and ideas with promising market potential. We then compete to win fee-for-service contracts from government agencies and industrial customers who seek innovative solutions to practical problems that require new technology. The Technology Development segment derives its revenue primarily from services. The Technology Development segment provides applied research to customers in our areas of focus.

The Products and Licensing segment develops and sells products or licenses technologies based on commercially viable concepts developed by the Technology Development segment. The Products and Licensing segment derives its revenue from product sales, funded product development and technology licenses.

Our President and Chief Executive Officer and his direct reports collectively represent our chief operating decision makers, and they evaluate segment performance based primarily on revenue and operating income or loss.

Information about the results of operations for each segment is set forth in the table below. There were no significant inter-segment sales during the years ended December 31, 2017 and 2016.

During the years ended December 31, 2017 and 2016, 20% and 19%, respectively, of our total sales took place outside the United States. No single country, outside of the United States, represented more than 10% of total revenues during the years ended December 31, 2017 or 2016.



	Years ended December 31,
		2017			2016
Technology Development revenue		$	18,576,383		$	16,280,582
Products and Licensing revenue		27,660,891			25,587,187
Total revenue		46,237,274			41,867,769
Technology Development operating loss		(120,417		)	(499,583		)
Products and Licensing operating loss		9,063			(1,999,653		)
Total operating loss		$	(111,354	)	$	(2,499,236	)
Depreciation, Technology Development		$	359,626		$	352,435
Depreciation, Products and Licensing		$	747,216		$	1,148,195
Amortization, Technology Development		$	139,067		$	195,619
Amortization, Products and Licensing		$	1,280,699		$	2,017,629

Products and licensing depreciation includes amounts from discontinued operations of $0.4 million and $0.7 million for the years ended December 31, 2017 and 2016, respectively. Products and licensing amortization includes amounts from discontinued operations of $0.9 million and $1.6 million for the years ended December 31, 2017 and 2016, respectively.

Additional segment information is as follows:



	December 31,
	2017		2016
Total segment assets:
Technology Development	$	32,011,084	$	16,923,090
Products and Licensing	34,211,552		38,073,883
Total	$	66,222,636	$	54,996,973
Property plant and equipment and intangible assets, Technology Development	$	2,361,663	$	2,602,803
Property plant and equipment and intangible assets, Products and Licensing	$	4,831,671	$	4,749,101

For December 31, 2016, the products and licensing segment assets include assets held for sale in the amount of $16.3 million. Property plant and equipment, and intangible assets excludes HSOR amounts for December 31, 2017 and December 31, 2016.

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (unaudited)

The following table sets forth our unaudited historical revenues, operating loss and net (loss)/income by quarter during 2017 and 2016.



	Quarter Ended
(Dollars in thousands, except per share amounts)	March 31, 2017			June 30, 2017			September 30, 2017		December 31, 2017		March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Revenues:
Technology development	$	4,235		$	4,602		$	4,591	$	5,148	$	3,607		$	4,047		$	4,118		$	4,509
Products and licensing	5,851			6,691			7,052		8,067		5,381			5,854			7,067			7,285
Total revenues	10,086			11,293			11,643		13,215		8,988			9,901			11,185			11,794
Gross margin	3,876			4,368			4,533		5,352		3,148			3,628			4,358			4,671
Operating (loss)/income	(774		)	180			446		37		(1,760		)	(922		)	(271		)	454
Net (loss)/income from continuing operations	(865		)	78			514		234		(1,711		)	(919		)	(388		)	348
(Loss)/income from discontinued operations net of income taxes	(491		)	(299		)	15,243		201		250			149			(57		)	(42		)
Net (loss)/income	(1,356		)	(221		)	15,757		435		(1,461		)	(770		)	(445		)	306
Net (loss)/income attributable to common stockholders	$	(1,390	)	$	(251	)	$	15,723	$	386	$	(1,481	)	$	(796	)	$	(474	)	$	276
Net (loss)/income per share from continuing operations:
Basic	$	(0.03	)	$	—		$	0.02	$	0.01	$	(0.06	)	$	(0.03	)	$	(0.01	)	$	0.01
Diluted	$	(0.03	)	$	—		$	0.02	$	0.01	$	(0.06	)	$	(0.03	)	$	(0.01	)	$	0.01
Net (loss)/income per share from discontinued operations:
Basic	$	(0.02	)	$	(0.01	)	$	0.55	$	0.01	$	0.01		$	0.01		$	—		$	—
Diluted	$	(0.02	)	$	(0.01	)	$	0.47	$	0.01	$	0.01		$	0.01		$	—		$	—
Net (loss)/income attributable to common stockholders:
Basic	$	(0.05	)	$	(0.01	)	$	0.57	$	0.01	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.01
Diluted	$	(0.05	)	$	(0.01	)	$	0.48	$	0.01	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.01
Weighted average shares:
Basic	27,541,356			27,600,147			27,692,539		27,485,278		27,477,181			27,557,960			27,605,028			27,543,882
Diluted	27,541,356			32,579,379			32,714,389		31,790,418		27,477,181			27,557,960			27,605,028			32,568,289

Discontinued Operations

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

On August 9, 2017, we completed the sale of our high speed optical receivers ("HSOR") business, which was part of our Products and Licensing segment, to an unaffiliated third party for an initial purchase price of $33.5 million, of which $29.5 million in cash has been received, and $4.0 million was placed into escrow until December 15, 2018 for possible working capital adjustments to the purchase price and potential satisfaction of certain post-closing indemnification obligations (the "Transaction"). The purchase price is subject to adjustment in the future based upon a determination of final working capital, as defined in the asset purchase agreement. The HSOR business was a component of the operations of Advanced Photonix, Inc., which we acquired in May 2015. As part of the Transaction, the buyer also hired approximately 49 of our employees who were engaged in the development, manufacture, and sale of HSOR products in addition to certain corporate administrative functions. The buyer provided certain transition services to us with respect to infrastructure and administration for which we paid $0.3 million per month for a period of five months, for a total of $1.5 million. We recorded this obligation as a reduction of the value of the purchase price. In assessing the fair value of the services expected to be received by us in relation to those we expected to deliver to the buyer, we concluded that the transition service payments were more closely aligned with the fair value of the assets sold than the services received and, thus, should be accounted for as part of the consideration reconciliation rather than operating activities. Our HSOR business accounted for 16.1% of revenues and 18.5% of our costs of revenues for the twelve months ended December 31, 2017.

We have reported the results of operations of our HSOR business as discontinued operations in our consolidated financial statements. We allocated a portion of the consolidated tax (benefit)/expense to discontinued operations based on the ratio of the discontinued business's loss/(income) before allocations.

The following table presents a summary of the transactions related to the sale.



	December 31, 2017
Sale price	$	33,500,000
Less: transition services payments	(1,500,000		)
Adjusted purchase price	32,000,000

Assets held for sale	(16,851,540		)
Liabilities held for sale	2,330,052
Transaction costs	(895,186		)
Income tax expense	(912,298		)
Gain on sale of discontinued operations	$	15,671,028

Assets and liabilities held for sale as of December 31, 2016 were as follows:



	December 31, 2016

Assets
Current assets:
Accounts receivable, net	$	4,028,713
Inventory	1,521,400
Prepaid expenses and other current assets	251,516
Total current assets	5,801,629
Property and equipment, net	3,298,151
Intangible assets, net	5,314,046
Goodwill	1,846,331
Other assets	50,754
Total non-current assets	10,509,282
Total assets held for sale	$	16,310,911
Liabilities
Current liabilities:
Accounts payable	$	1,511,450
Accrued liabilities	753,556
Deferred revenue	111,697
Total current liabilities	2,376,703
Long-term deferred rent	84,555
Total non-current liabilities	84,555
Total liabilities held for sale	$	2,461,258

The key components of income from discontinued operations were as follows:



	Twelve Months Ended December 31,
	2017			2016
Net revenues	$	6,356,237		$	17,343,227
Cost of revenues	4,599,042			11,413,166
Operating expenses	2,750,951			5,368,160
Other expenses	—			50,528
(Loss)/income before income taxes	(993,756		)	511,373
Allocated tax expense	23,762			210,933
Operating (loss)/income from discontinued operations	(1,017,518		)	300,440
Gain on sale, net of related income taxes	15,671,028			—
Net income from discontinued operations	$	14,653,510		$	300,440

For the years ended December 31, 2017 and 2016, depreciation and amortization from discontinued operations were $1.3 million and $2.3 million, respectively. For the years ended December 31, 2017 and 2016, the acquisition of property plant and equipment for discontinued operations was $0.1 million and $1.4 million, respectively. For the years ended December 31, 2017 and 2016, intangible property costs associated with discontinued operations were $0.1 million in each period. Proceeds from the sale of the HSOR business which are included in cash flows from investing activities for 2017 were $28.0 million. The gain on sale of discontinued operations included in non-cash adjustments to cash flows from operating activities for 2017 was $15.7 million.

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

Schedule II

Luna Innovations Incorporated

Valuation and Qualifying Accounts



Column A	Column B		Column C		Column D			Column E
	Balance at beginning of Period		Additions		Deductions			Balance at end of period
Year Ended December 31, 2016
Reserves deducted from assets to which they apply:
Deferred tax valuation allowance	$	20,759,102	$	550,444	$	—		$	21,309,546
Allowances for doubtful accounts	129,411		305,593		(187,765		)	247,239
	$	20,888,513	$	856,037	$	(187,765	)	$	21,556,785
Year Ended December 31, 2017
Reserves deducted from assets to which they apply:
Deferred tax valuation allowance	$	21,309,546			$	(16,288,802	)	$	5,020,744
Allowances for doubtful accounts	247,239		99,888		(60,410		)	286,717
	$	21,556,785	$	99,888	$	(16,349,212	)	$	5,307,461

All other schedules are omitted as the required information is inapplicable or the information is presented in the Consolidated Financial Statements and notes thereto in Item 8 of Part II of this Annual Report on Form 10-K.


(3)	Exhibits. The exhibits filed as part of this report are listed under “Exhibits” at subsection (b) of this Item 15.


(b)	Exhibits

Organization and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

We have a history of net losses. We have historically managed our liquidity through cost reduction initiatives, debt financings, capital markets transactions and the sale of assets.

Although there can be no guarantees, we believe that our current cash and cash equivalents balance provides adequate liquidity for us to meet our working capital needs for the foreseeable future.

Consolidation Policy

Use of Estimates

Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may differ from such estimates and assumptions.

Technology Development Revenues

Product Sales Revenues

Revenues from product sales that require no ongoing obligations are recognized as revenues when shipped to the customer, title has passed and collection is reasonably assured.

Allowance for Uncollectible Receivables

Cash Equivalents

Fair Value Measurements


•	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.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. We record depreciation using the straight-line method over the following estimated useful lives:



Equipment	3 – 7 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Lesser of lease term or life of improvements

Intangible Assets

Research, Development and Engineering

Research, development and engineering expenses not related to contract performance are expensed as incurred.

Valuation of Long-Lived Assets

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 market.

Net Income/(Loss) per Share

Stock-Based Compensation

We recognize expense for equity instruments issued to non-employees based upon the fair value of the equity instruments issued.

Advertising

We expense the cost of advertising as incurred.

Income Taxes

Recent Accounting Pronouncements

Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property and Equipment Estimated Useful Lives

We record depreciation using the straight-line method over the following estimated useful lives:



Equipment	3 – 7 years
Furniture and fixtures	7 years
Software	3 years
Leasehold improvements	Lesser of lease term or life of improvements

Inventory (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Components of Inventory

Components of inventory are as follows:



	December 31,
	2017		2016
Finished goods	$	2,143,953	$	1,952,885
Work-in-process	578,195		714,867
Raw materials	4,228,962		4,181,083
	$	6,951,110	$	6,848,835

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Summary of Debt Outstanding

The following table presents a summary of debt outstanding as of December 31, 2017 and 2016:



	December 31,
	2017		2016
Silicon Valley Bank Term Loans	$	2,458,333	$	4,291,667
Less: unamortized debt issuance costs	21,993		38,302
Less: current portion	1,833,333		1,833,333
Total long-term debt obligations	$	603,007	$	2,420,032

Maturities on Long-term Debt

Maturities on long-term debt are as follows:



Year	Amount
2018	$	1,833,333
2019	625,000
Total	$	2,458,333

Schedule of Interest Expense

Interest expense for the years ended December 31, 2017 and 2016 consisted of the following:



	Years ended December 31,
		2017			2016
Interest expense on Term Loans		$	202,850		$	287,491
Amortization of debt issuance costs		16,308			16,308
Other interest (income)/expense		(652		)	15,535
Total interest expense		$	218,506		$	319,334

Accounts Receivable-Trade (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Components of Accounts Receivable

Accounts receivable consist of the following:



	December 31,
	2017			2016
Billed	$	8,186,961		$	8,519,581
Unbilled	1,921,256			1,977,191
Other	35,509			19,479
	10,143,726			10,516,251
Less: allowance for doubtful accounts	(286,717		)	(247,239		)
	$	9,857,009		$	10,269,012

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and equipment, net, consists of the following:



	December 31,
	2017			2016
Building	$	69,556		$	69,556
Equipment	9,246,094			8,649,886
Furniture and fixtures	592,258			591,569
Software	1,139,715			1,137,043
Leasehold improvements	4,984,010			4,973,556
	16,031,633			15,421,610
Less—accumulated depreciation	(12,577,892		)	(11,938,923		)
	$	3,453,741		$	3,482,687

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The following is a summary of intangible assets, net:



	December 31,
	2017			2016
Patent costs	$	4,668,577		$	4,263,386
Developed technology	2,200,000			2,200,000
Customer base	1,200,000			1,200,000
Backlog	200,000			200,000
	8,268,577			7,863,386
Accumulated amortization	(5,030,984		)	(4,496,169		)
	$	3,237,593		$	3,367,217

Estimated Aggregate Amortization Based on Net Value of Intangible Assets

Estimated aggregate amortization, based on the net value of intangible assets at December 31, 2017, for each of the next five years and beyond is as follows:



Year Ending December 31,
2018	466,193
2019	397,132
2020	373,032
2021	362,038
2022	354,733
2023 and beyond	1,284,465
	$	3,237,593

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:



		December 31,
		2017		2016
	Accrued compensation	$	5,274,005	$	4,742,760
	Claims reserve	1,637,118		1,577,123
	Accrued sub-contracts	544,342		483,477
	Accrued professional fees	117,445		67,719
	Accrued income tax	403,548		—
	Deferred rent	144,741		155,138
	Royalties	290,235		345,895
	Warranty reserve	210,599		185,125
	Accrued liabilities-other	337,902		356,307
Total accrued liabilities		$	8,959,935	$	7,913,544

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

Income tax expense/(benefit) from continuing operations consisted of the following for the periods indicated:



	Years ended December 31,
	2017			2016
Current:
Federal	$	(320,560	)	$	—
State	24,807			(135,567		)
Deferred federal	—			—
Deferred state	—			—
Income tax benefit	$	(295,753	)	$	(135,567	)

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following components:



	December 31, 2017					December 31, 2016
	Current		Long-Term			Current			Long-Term
Bad debt and inventory reserve	$	—	$	226,358		$	382,075		$	—
Inventory adjustment	—		405,242			—			940,885
UNICAP	—		32,579			—			46,593
Deferred revenue			84,669			—			154,608
Deferred rent	—		340,199			—			550,419
Depreciation and amortization	—		(1,238,458		)	—			(3,490,869		)
Charitable contributions	—		3,385			—			5,741
Net operating loss carryforwards- Luna	—		349,421			—			4,779,976
Net operating loss carryforwards- API	—		1,436,568			—			9,783,512
Net operating loss carryforwards - state	—		534,194			—			281,799
Net operating loss carryforwards- Canada	—		10,503			—			10,503
Research and development credits	—		235,613			—			4,250,803
California manufacturing credit	—		15,554			—			15,554
Accrued liabilities	—		504,472			1,067,019			—
Deferred compensation	—		223,607			—			267,897
Stock-based compensation	—		1,275,371			—			1,867,947
AMT credit	—		581,467			—			395,083
Total	—		5,020,744			1,449,094			19,860,451
Valuation allowance	—		(5,020,744		)	(1,449,094		)	(19,860,451		)
Net deferred tax asset	$	—	$	—		$	—		$	—

Reconciliation of Income Tax Benefit (Expense)



	Years ended December 31,
	2017		2016
Income tax expense at federal statutory rate	34.00	%	34.00	%
State taxes, net of federal tax effects	(102.48	)%	(0.93	)%
Change in tax rate from Tax Cuts and Jobs Act	(568.11	)%	—	%
Change in valuation allowance	796.72	%	(18.17	)%
Incentive stock options	(69.26	)%	(9.00	)%
Provision to return adjustments	27.75	%	(0.82	)%
Meals and entertainment	(4.69	)%	(0.64	)%
Capitalized merger costs	—	%	—	%
Windfall deduction	—	%	—	%
Other permanent differences	(25.48	)%	0.35	%
Income tax benefit	88.45	%	4.79	%

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Activity of Stock Options



	Options Outstanding							Options Exercisable
	Number of Shares		Price per Share Range	Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Number of Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value (1)
Balance at January 1, 2016	3,800,728		$0.61 - 8.43	$	2.17	$	111,314	3,045,150	$	2.39	$	103,603
Forfeited	(963,614	)	$1.18 - 8.43	$	2.99
Exercised	—		0	$	—
Granted	20,000		$1.15	$	1.15
Balance at December 31, 2016	2,857,114		$0.61 - 6.83	$	1.89	$	107,063	2,367,630	$	1.93	$	101,071
Forfeited	(178,665	)	$1.27 - 6.83	$	2.24
Exercised	(83,888	)	$0.82 - 1.40	$	1.19
Granted	120,000		$1.51 - 2.40	$	1.82
Balance at December 31, 2017	2,714,561		$0.61 - 6.55	$	1.88	$	2,098,195	2,590,030	$	1.89	$	2,013,034


(1)	The intrinsic value of an option represents the amount by which the market value of the stock exceeds the exercise price of the option of in-the-money options only.

Assumptions Used to Estimate Fair Value of Option Granted

The fair value of each option granted is estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:



	Years ended December 31,
	2017	2016
Risk-free interest rate range	2.1%	1.5%
Expected life of option-years	6.5	7.5
Expected stock price volatility	69%	73%
Expected dividend yield	—%	—%

Activity of Stock Option by Exercise Price Range



		Options Outstanding			Options Exercisable
	Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Life in Years	Weighted Average Exercise Price	Options Exercisable	Weighted Average Exercise Price of Options Exercisable
Year ended December 31, 2016	$0.61 - 6.83	2,857,114	5.09	$1.89	2,637,630	$1.93
Year ended December 31, 2017	$0.61 - 6.55	2,714,561	4.23	$1.88	2,590,030	$1.89



	Total Intrinsic Value of Options Exercised		Total Fair Value of Options Vested
Year ended December 31, 2016	$	—	$	370,654
Year ended December 31, 2017	$	62,549	$	3,962,746

Activity of Restricted Stock

The following table summarizes our aggregate restricted stock awards and restricted stock unit activity in 2016 and 2017:



	Number of Unvested Shares		Weighted Average Grant Date Fair Value	Aggregate Value of Unvested Shares
Balance at January 1, 2016	718,167		$1.22	$	874,186
Granted	405,956		$1.15	$	466,849
Vested	(294,125	)	$1.20	$	(352,272	)
Forfeitures	—		$0.00	$	—
Balance at December 31, 2016	829,998		$1.19	$	988,763
Granted	478,865		$1.63	$	780,252
Vested	(617,498	)	$1.23	$	(758,653	)
Forfeitures	(201,667	)	$1.35	$	(272,017	)
Balance at December 31, 2017	489,698		$1.51	$	738,345

Activity of Restricted Stock Units

A summary of stock unit activity under the Deferred Compensation Plan for 2016 and 2017 is as follows.



	Number of Stock Units		Weighted Average Grant Date Fair Value per Share	Intrinsic Value Outstanding
January 1, 2016	315,382		$1.38
Granted	101,901		$1.21
Vested	—		$1.01
Converted	(24,271	)	$1.01
December 31, 2016	393,012		$1.37	$	577,728
Granted	73,690		$1.54
Vested	—		$1.15
Converted	—		$0.00
December 31, 2017	466,702		$1.40	$1,134,086

Chart of Share Repurchases

The following chart details our share repurchases during the year ended December 31, 2017:



	Total Number of Shares Repurchased	Average Price Paid per Share
January 1 - September 30, 2017	141,000	$1.62
October 2017	193,323	$1.62
November 2017	130,120	$1.68
December 2017	159,634	$2.35

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments for Operating Leases

Minimum future payments, as of December 31, 2017, under the aforementioned operating leases for each of the next five years and thereafter are:



2018	1,284,524
2019	833,094
2020	715,848
2021	544,704
2022	544,704
Thereafter	1,089,408
	$	5,012,282

Financial Information About Segments (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Information About Results of Operations for Each Segment



	Years ended December 31,
		2017			2016
Technology Development revenue		$	18,576,383		$	16,280,582
Products and Licensing revenue		27,660,891			25,587,187
Total revenue		46,237,274			41,867,769
Technology Development operating loss		(120,417		)	(499,583		)
Products and Licensing operating loss		9,063			(1,999,653		)
Total operating loss		$	(111,354	)	$	(2,499,236	)
Depreciation, Technology Development		$	359,626		$	352,435
Depreciation, Products and Licensing		$	747,216		$	1,148,195
Amortization, Technology Development		$	139,067		$	195,619
Amortization, Products and Licensing		$	1,280,699		$	2,017,629

Segment Information

Additional segment information is as follows:



	December 31,
	2017		2016
Total segment assets:
Technology Development	$	32,011,084	$	16,923,090
Products and Licensing	34,211,552		38,073,883
Total	$	66,222,636	$	54,996,973
Property plant and equipment and intangible assets, Technology Development	$	2,361,663	$	2,602,803
Property plant and equipment and intangible assets, Products and Licensing	$	4,831,671	$	4,749,101

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following table sets forth our unaudited historical revenues, operating loss and net (loss)/income by quarter during 2017 and 2016.



	Quarter Ended
(Dollars in thousands, except per share amounts)	March 31, 2017			June 30, 2017			September 30, 2017		December 31, 2017		March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Revenues:
Technology development	$	4,235		$	4,602		$	4,591	$	5,148	$	3,607		$	4,047		$	4,118		$	4,509
Products and licensing	5,851			6,691			7,052		8,067		5,381			5,854			7,067			7,285
Total revenues	10,086			11,293			11,643		13,215		8,988			9,901			11,185			11,794
Gross margin	3,876			4,368			4,533		5,352		3,148			3,628			4,358			4,671
Operating (loss)/income	(774		)	180			446		37		(1,760		)	(922		)	(271		)	454
Net (loss)/income from continuing operations	(865		)	78			514		234		(1,711		)	(919		)	(388		)	348
(Loss)/income from discontinued operations net of income taxes	(491		)	(299		)	15,243		201		250			149			(57		)	(42		)
Net (loss)/income	(1,356		)	(221		)	15,757		435		(1,461		)	(770		)	(445		)	306
Net (loss)/income attributable to common stockholders	$	(1,390	)	$	(251	)	$	15,723	$	386	$	(1,481	)	$	(796	)	$	(474	)	$	276
Net (loss)/income per share from continuing operations:
Basic	$	(0.03	)	$	—		$	0.02	$	0.01	$	(0.06	)	$	(0.03	)	$	(0.01	)	$	0.01
Diluted	$	(0.03	)	$	—		$	0.02	$	0.01	$	(0.06	)	$	(0.03	)	$	(0.01	)	$	0.01
Net (loss)/income per share from discontinued operations:
Basic	$	(0.02	)	$	(0.01	)	$	0.55	$	0.01	$	0.01		$	0.01		$	—		$	—
Diluted	$	(0.02	)	$	(0.01	)	$	0.47	$	0.01	$	0.01		$	0.01		$	—		$	—
Net (loss)/income attributable to common stockholders:
Basic	$	(0.05	)	$	(0.01	)	$	0.57	$	0.01	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.01
Diluted	$	(0.05	)	$	(0.01	)	$	0.48	$	0.01	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	0.01
Weighted average shares:
Basic	27,541,356			27,600,147			27,692,539		27,485,278		27,477,181			27,557,960			27,605,028			27,543,882
Diluted	27,541,356			32,579,379			32,714,389		31,790,418		27,477,181			27,557,960			27,605,028			32,568,289

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Key Components of Discontinued Operations

The following table presents a summary of the transactions related to the sale.



	December 31, 2017
Sale price	$	33,500,000
Less: transition services payments	(1,500,000		)
Adjusted purchase price	32,000,000

Assets held for sale	(16,851,540		)
Liabilities held for sale	2,330,052
Transaction costs	(895,186		)
Income tax expense	(912,298		)
Gain on sale of discontinued operations	$	15,671,028

Assets and liabilities held for sale as of December 31, 2016 were as follows:



	December 31, 2016

Assets
Current assets:
Accounts receivable, net	$	4,028,713
Inventory	1,521,400
Prepaid expenses and other current assets	251,516
Total current assets	5,801,629
Property and equipment, net	3,298,151
Intangible assets, net	5,314,046
Goodwill	1,846,331
Other assets	50,754
Total non-current assets	10,509,282
Total assets held for sale	$	16,310,911
Liabilities
Current liabilities:
Accounts payable	$	1,511,450
Accrued liabilities	753,556
Deferred revenue	111,697
Total current liabilities	2,376,703
Long-term deferred rent	84,555
Total non-current liabilities	84,555
Total liabilities held for sale	$	2,461,258

The key components of income from discontinued operations were as follows:

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Organization and Summary of Significant Accounting Policies - Additional Information (Details) shares in Millions		3 Months Ended								12 Months Ended
	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment shares	Dec. 31, 2016 USD ($) shares
Significant Accounting Policies [Line Items]
Number of operating segments \| segment										2
Allowance for uncollectible receivables		$ 286,717				$ 247,239				$ 286,717	$ 247,239
Cash equivalents		11,500,000				12,600,000				11,500,000	12,600,000
Debt covenant, minimum cash balance		4,000,000								4,000,000
Research, development and engineering										3,469,193	3,540,227
Advertising expense										100,000	100,000
Revenue		13,215,000	$ 11,643,000	$ 11,293,000	$ 10,086,000	11,794,000	$ 11,185,000	$ 9,901,000	$ 8,988,000	46,237,274	41,867,769
Scenario, Forecast \| Retained Earnings \| Accounting Standards Update 2016-20
Significant Accounting Policies [Line Items]
Revenue	$ 10,000,000
Cumulative adjustment to increase retained earnings	$ 400,000
U.S. Treasury Obligations
Significant Accounting Policies [Line Items]
Cash equivalents		$ 25,200,000				$ 0				$ 25,200,000	$ 0
Stock Option and Warrant
Significant Accounting Policies [Line Items]
Effect of stock equivalents excluded from computation of earnings (in shares) \| shares										4.3	5.5
Silicon Valley Bank \| Prime Rate \| Term Loan
Significant Accounting Policies [Line Items]
Debt, additional interest above prime rate										2.00%
Minimum \| Patents
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life										1 year
Maximum \| Patents
Significant Accounting Policies [Line Items]
Finite lived intangible asset, useful life										11 years

Organization and Summary of Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2017
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	3 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	7 years
Software
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	3 years

Inventory (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 2,143,953	$ 1,952,885
Work-in-process	578,195	714,867
Raw materials	4,228,962	4,181,083
Total Inventory	$ 6,951,110	$ 6,848,835

Debt - Additional Information (Details)			12 Months Ended
Debt - Additional Information (Details)	Sep. 29, 2015 USD ($) installment	May 08, 2015 USD ($) installment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	May 01, 2015 USD ($) installment
Debt Instrument [Line Items]
Long-term debt obligation			$ 2,458,333	$ 4,291,667
Debt covenant, minimum cash balance			4,000,000
Current portion of long term debt obligations			1,833,333	1,833,333
Debt issuance costs			21,993	38,302
Amortization of debt issuance costs			$ 16,308	$ 16,308
Term Loan
Debt Instrument [Line Items]
Effective interest rate			6.50%
Silicon Valley Bank \| Term Loan
Debt Instrument [Line Items]
Debt, face amount					$ 6,000,000.0
Debt, number of monthly payment \| installment					48
Debt issuance costs					$ 55,000
Silicon Valley Bank \| Term Loan \| Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate			2.00%
Silicon Valley Bank \| Term Loan \| Sixth Loan Modification Agreement
Debt Instrument [Line Items]
Debt, number of monthly payment \| installment		48
Long-term debt obligation		$ 6,000,000
Silicon Valley Bank \| Term Loan \| Sixth Loan Modification Agreement \| Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate		2.00%
Early termination fee, percentage		2.00%
Silicon Valley Bank \| Term Loan \| Seventh Loan Modification Agreement
Debt Instrument [Line Items]
Debt, number of monthly payment \| installment	36
Long-term debt obligation	$ 1,000,000
Silicon Valley Bank \| Term Loan \| Seventh Loan Modification Agreement \| Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate	2.00%
Early termination fee, percentage	2.00%

Debt - Summary of Debt Outstanding (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Silicon Valley Bank Term Loans	$ 2,458,333	$ 4,291,667
Less: unamortized debt issuance costs	21,993	38,302
Less: current portion	1,833,333	1,833,333
Total long-term debt obligations	$ 603,007	$ 2,420,032

Debt - Maturities on Long Term Debt (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
2018	$ 1,833,333
2019	625,000
Total	$ 2,458,333	$ 4,291,667

Debt - Interest Expense (Details) - USD ($)	12 Months Ended
Debt - Interest Expense (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Interest expense on Term Loans	$ 202,850	$ 287,491
Amortization of debt issuance costs	16,308	16,308
Other interest (income)/expense	(652)	15,535
Total interest expense	$ 218,506	$ 319,334

Accounts Receivable-Trade (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Billed	$ 8,186,961	$ 8,519,581
Unbilled	1,921,256	1,977,191
Other	35,509	19,479
Accounts receivable, gross	10,143,726	10,516,251
Less: allowance for doubtful accounts	(286,717)	(247,239)
Accounts receivable, net	$ 9,857,009	$ 10,269,012

Property and Equipment - Components of Property and Equipment, Net (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Building	$ 69,556	$ 69,556
Equipment	9,246,094	8,649,886
Furniture and fixtures	592,258	591,569
Software	1,139,715	1,137,043
Leasehold improvements	4,984,010	4,973,556
Property, plant and equipment, gross, total	16,031,633	15,421,610
Less—accumulated depreciation	(12,577,892)	(11,938,923)
Property and equipment, net	$ 3,453,741	$ 3,482,687

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.7	$ 0.8

Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	$ 8,268,577	$ 7,863,386
Accumulated amortization	(5,030,984)	(4,496,169)
Finite lived intangible assets, net	3,237,593	3,367,217
Patent costs
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	4,668,577	4,263,386
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	2,200,000	2,200,000
Customer base
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	1,200,000	1,200,000
Backlog
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets gross	$ 200,000	$ 200,000

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.5	$ 0.6

Intangible Assets - Estimated Aggregate Amortization (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 466,193
2019	397,132
2020	373,032
2021	362,038
2022	354,733
2023 and beyond	1,284,465
Finite lived intangible assets, net	$ 3,237,593	$ 3,367,217

Accrued Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued compensation	$ 5,274,005	$ 4,742,760
Claims reserve	1,637,118	1,577,123
Accrued sub-contracts	544,342	483,477
Accrued professional fees	117,445	67,719
Accrued income tax	403,548	0
Deferred rent	144,741	155,138
Royalties	290,235	345,895
Warranty reserve	210,599	185,125
Accrued liabilities-other	337,902	356,307
Total accrued liabilities	$ 8,959,935	$ 7,913,544

Income Taxes - Components of Income Tax Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ (320,560)	$ 0
State	24,807	(135,567)
Deferred federal	0	0
Deferred state	0	0
Income tax benefit	$ (295,753)	$ (135,567)

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred Income Tax Assets And Liabilities [Line Items]
Research and development credits	$ 200,000
Total, current	0	$ 1,449,094
Valuation allowance, current	0	(1,449,094)
Net deferred tax asset, current	0	0
Total, long-term	5,020,744	19,860,451
Valuation allowance, long-term	(5,020,744)	(19,860,451)
Net deferred tax asset, long-term	0	0
Current
Deferred Income Tax Assets And Liabilities [Line Items]
Bad debt and inventory reserve	0	382,075
Accrued liabilities	0	1,067,019
Long-Term
Deferred Income Tax Assets And Liabilities [Line Items]
Bad debt and inventory reserve	226,358
Inventory adjustment	405,242	940,885
UNICAP	32,579	46,593
Deferred revenue	84,669	154,608
Deferred rent	340,199	550,419
Depreciation and amortization	(1,238,458)	(3,490,869)
Charitable contributions	3,385	5,741
Research and development credits	235,613	4,250,803
California manufacturing credit	15,554	15,554
Accrued liabilities	504,472
Deferred compensation	223,607	267,897
Stock-based compensation	1,275,371	1,867,947
AMT credit	581,467	395,083
Net operating loss carryforwards - state \| Long-Term
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	534,194	281,799
Net operating loss carryforwards- Canada \| Long-Term
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	10,503	10,503
Net operating loss carryforwards- Luna \| Long-Term
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	349,421	4,779,976
Net operating loss carryforwards- API \| Long-Term
Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	$ 1,436,568	$ 9,783,512

Income Taxes - Reconciliation of Income Tax Benefit (Expense) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense at federal statutory rate	34.00%	34.00%
State taxes, net of federal tax effects	(102.48%)	(0.93%)
Change in tax rate from Tax Cuts and Jobs Act	(568.11%)	0.00%
Change in valuation allowance	796.72%	(18.17%)
Incentive stock options	(69.26%)	(9.00%)
Provision to return adjustments	27.75%	(0.82%)
Meals and entertainment	(4.69%)	(0.64%)
Capitalized merger costs	(0.00%)	(0.00%)
Windfall deduction	0.00%	0.00%
Other permanent differences	(25.48%)	0.35%
Income tax benefit	88.45%	4.79%

Income Taxes - Additional Information (Details) - USD ($)		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2017
Income Taxes [Line Items]
Research and development credits		$ 200,000
Unrecognized tax benefits net increases (decreases) resulting from current period tax positions		0
Reduction in deferred tax asset due to Tax Act	$ 1,900,000
Reduction in valuation allowance	$ 1,900,000
Luna
Income Taxes [Line Items]
Net operating loss carryforwards		1,700,000
API
Income Taxes [Line Items]
Net operating loss carryforwards		$ 6,800,000

Stockholders' Equity - Additional Information (Details)	1 Months Ended		12 Months Ended
Stockholders' Equity - Additional Information (Details)	Apr. 30, 2016 shares	Jan. 31, 2010 USD ($) shares	Dec. 31, 2017 USD ($) installment $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock based compensation expense \| $			$ 700,000	$ 900,000
Stock-based compensation expense expected to be recognized \| $			$ 500,000
Carilion Clinic
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Senior convertible Promissory Notes principal amount converted \| $		$ 5,000,000.0
Accrued interest converted \| $		$ 1,200,000
Percentage of dividend payable on series A convertible preferred stock		6.00%
Preferred stock liquidation preference value \| $		$ 6,200,000
Shares of common stock dividends (in shares)			631,693
Unexercised warrants (in shares)			366,000
Exercise price of warrants (in dollars per share) \| $ / shares			$ 2.50
Carilion Clinic \| Series A Convertible Preferred Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Preferred stock issued in exchange of notes payable (in shares)		1,321,514
Stock Options
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period			4 years
Weighted average grant date fair value of options granted (in dollars per share) \| $ / shares			$ 1.18	$ 1.15
Weighted average remaining service period				3 years 2 months 12 days
Stock Options \| Carilion Clinic
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Conversion of stock, ratio		1
Restricted Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares issued (in shares)			349,000	319,000
Share-based compensation vesting installments \| installment			3
Shares vested (in shares)			530,542	245,583
Restricted Stock Units (RSUs) \| Member of Board of Directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares issued (in shares)			129,865	86,956
Shares vested (in shares)			86,956	48,542
2016 Equity Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares available for future grant (in shares)	3,500,000
Stock option contractual term	10 years

Stockholders' Equity - Activity of Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Options Outstanding, Number of Shares
Beginning Balance (in shares)	2,857,114	3,800,728
Forfeited (in shares)	(178,665)	(963,614)
Exercised (in shares)	(83,888)	0
Granted (in shares)	120,000	20,000
Ending Balance (in shares)	2,714,561	2,857,114
Options Outstanding, Price per Share Range
Beginning Balance, lower limit (in dollars per share)	$ 0.61	$ 0.61
Beginning Balance, upper limit (in dollars per share)	6.83	8.43
Forfeited, lower limit (in dollars per share)	1.27	1.18
Forfeited, upper limit (in dollars per share)	6.83	8.43
Exercised, lower limit (in dollars per share)	0.82
Exercised, upper limit (in dollars per share)	1.40
Granted, lower limit (in dollars per share)	1.51	1.15
Granted, upper limit (in dollars per share)	2.40
Ending Balance, lower limit (in dollars per share)	0.61	0.61
Ending Balance, upper limit (in dollars per share)	6.55	6.83
Options Outstanding, Weighted Average Exercise Price
Beginning balance (in dollars per share)	1.89	2.17
Forfeited (in dollars per share)	2.24	2.99
Exercised (in dollars per share)	1.19	0.00
Granted (in dollars per share)	1.82	1.15
Ending balance (in dollars per share)	$ 1.88	$ 1.89
Options Outstanding, Aggregate Intrinsic Value beginning balance (in shares)	$ 107,063	$ 111,314
Options Outstanding, Aggregate Intrinsic Value ending balance (in shares)	$ 2,098,195	$ 107,063
Options Exercisable, beginning balance (in shares)	2,367,630	3,045,150
Options Exercisable, ending balance (in shares)	2,590,030	2,367,630
Options Exercisable, Weighted Average Exercise Price, beginning balance (in dollars per share)	$ 1.93	$ 2.39
Options Exercisable, Weighted Average Exercise Price, ending balance (in dollars per share)	$ 1.89	$ 1.93
Options Exercisable, Aggregate Intrinsic Value, beginning balance	$ 101,071	$ 103,603
Options Exercisable, Aggregate Intrinsic Value, ending balance	$ 2,013,034	$ 101,071

Stockholders' Equity - Assumptions Used to Estimate Fair Value of Options Granted (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Risk-free interest rate range	2.10%	1.50%
Expected life of option-years	6 years 6 months	7 years 6 months
Expected stock price volatility	69.00%	73.00%
Expected dividend yield	0.00%	0.00%

Stockholders' Equity - Activity of Stock Option by Exercise Price Range (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range (in dollars per share)	$ 0.61	$ 0.61
Range of Exercise Prices, upper range (in dollars per share)	$ 6.55	$ 6.83
Options Outstanding (in shares)	2,714,561	2,857,114	3,800,728
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.88	$ 1.89	$ 2.17
Options Exercisable (in shares)	2,590,030	2,367,630	3,045,150
Weighted Average Exercise Price of Options Exercisable (in dollars per share)	$ 1.89	$ 1.93	$ 2.39
Total Intrinsic Value of Options Exercised	$ 62,549	$ 0
Total Fair Value of Options Vested	$ 3,962,746	$ 370,654
$0.61 - 6.83
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares)		2,857,114
Options Outstanding, Weighted Average Remaining Life in Years		5 years 1 month 2 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)		$ 1.89
Options Exercisable (in shares)		2,637,630
Weighted Average Exercise Price of Options Exercisable (in dollars per share)		$ 1.93
$0.61 - 6.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares)	2,714,561
Options Outstanding, Weighted Average Remaining Life in Years	4 years 2 months 23 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 1.88
Options Exercisable (in shares)	2,590,030
Weighted Average Exercise Price of Options Exercisable (in dollars per share)	$ 1.89

Stockholders' Equity - Activity of Restricted Stock Issuances (Details) - Restricted Stock and Restricted Stock Units - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Unvested Shares
Beginning balance (in shares)	829,998	718,167
Granted (in shares)	478,865	405,956
Vested (in shares)	(617,498)	(294,125)
Forfeitures (in shares)	(201,667)	0
Ending balance (in shares)	489,698	829,998
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 1.19	$ 1.22
Granted (in dollars per share)	1.63	1.15
Vested (in dollars per share)	1.23	1.20
Forfeitures (in dollars per share)	1.35	0.00
Ending balance (in dollars per share)	$ 1.51	$ 1.19
Aggregate Value of Unvested Shares
Beginning balance	$ 988,763	$ 874,186
Granted	780,252	466,849
Vested	(758,653)	(352,272)
Forfeitures	(272,017)	0
Ending balance	$ 738,345	$ 988,763

Stockholders' Equity - Activity of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - Deferred Compensation Plan - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Stock Units
Beginning balance (in shares)	393,012	315,382
Granted (in shares)	73,690	101,901
Vested (in shares)	0	0
Converted (in shares)	0	(24,271)
Ending balance (in shares)	466,702	393,012
Weighted Average Grant Date Fair Value per Share
Beginning balance (in dollars per share)	$ 1.37	$ 1.38
Granted (in dollars per share)	1.54	1.21
Vested (in dollars per share)	1.15	1.01
Converted (in dollars per share)	0.00	1.01
Ending balance (in dollars per share)	$ 1.40	$ 1.37
Intrinsic value, outstanding	$ 1,134,086	$ 577,728

Stockholders' Equity - Share Repurchase Program (Details) - USD ($)	1 Months Ended			4 Months Ended	9 Months Ended	12 Months Ended		13 Months Ended
	Dec. 31, 2017	Nov. 30, 2017	Oct. 31, 2017	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	May 31, 2017	May 31, 2016
Equity, Class of Treasury Stock [Line Items]
Authorized share repurchase amount					$ 2,000,000.0				$ 2,000,000.0
Amount of stock repurchased				$ 800,000		$ 1,131,759	$ 333,053	$ 200,000
Total Number of Shares Repurchased (in shares)	159,634	130,120	193,323		141,000	433,179		205,500
Average Price Paid per Share (in usd per share)	$ 2.35	$ 1.68	$ 1.62		$ 1.62
Member of Board of Directors
Equity, Class of Treasury Stock [Line Items]
Total Number of Shares Repurchased (in shares)	100,000

Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) purchase_order
Commitments and Contingencies Disclosure [Line Items]
Minimum royalty payable			$ 0.7
Selling, General and Administrative Expenses
Commitments and Contingencies Disclosure [Line Items]
Lease and rental expense			1.1	$ 1.5
Purchase Commitment
Commitments and Contingencies Disclosure [Line Items]
Number of non-cancelable purchase orders executed \| purchase_order				2
Non-cancelable purchase order commitment				$ 1.5
Non-cancelable purchase order delivery period (in months)		18 months
Non-cancelable purchase order commitment remained			0.1
Purchase Commitment Two
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase order commitment	$ 0.5
Non-cancelable purchase order delivery period (in months)	18 months
Non-cancelable purchase order commitment remained			$ 0.5

Commitments and Contingencies - Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 1,284,524
2019	833,094
2020	715,848
2021	544,704
2022	544,704
Thereafter	1,089,408
Future minimum payments due, total	$ 5,012,282

Employee Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Percentage of employer's matching contributions to a defined contribution plan that vests	25.00%
Percentage of employees' gross pay for which employer contributes a matching contribution	10.00%
Contribution to employee compensation plan by employer	$ 0.3	$ 0.3

Litigation and Other Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2015	Sep. 30, 2014
Government \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Loss contingency estimate of possible loss	$ 1.1	$ 0.8

Relationship with Major Customers (Details) - United States Government	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Consolidated Revenues
Concentration Risk [Line Items]
Concentration percentage	48.00%	41.00%
Billed Trade Receivables
Concentration Risk [Line Items]
Concentration percentage	20.00%	14.00%

Financial Information About Segments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)
Concentration Risk [Line Items]
Number of operating segments \| segment	2
Depreciation	$ 700,000	$ 800,000
Amortization	500,000	600,000
Products and Licensing
Concentration Risk [Line Items]
Depreciation	747,216	1,148,195
Amortization	1,280,699	2,017,629
Products and Licensing \| Discontinued Operations
Concentration Risk [Line Items]
Depreciation	400,000	700,000
Amortization	$ 900,000	1,600,000
Products and Licensing \| Held-for-sale \| HSOR
Concentration Risk [Line Items]
Assets held for sale		$ 16,300,000
Revenues \| Geographic Concentration Risk \| Outside of the United States
Concentration Risk [Line Items]
Percentage of total revenues by customer	20.00%	19.00%

Financial Information About Segments - Information About Results of Operations for Each Segment (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Technology Development revenue	$ 5,148,000	$ 4,591,000	$ 4,602,000	$ 4,235,000	$ 4,509,000	$ 4,118,000	$ 4,047,000	$ 3,607,000	$ 18,576,383	$ 16,280,582
Products and Licensing revenue	8,067,000	7,052,000	6,691,000	5,851,000	7,285,000	7,067,000	5,854,000	5,381,000	27,660,891	25,587,187
Total revenues	13,215,000	11,643,000	11,293,000	10,086,000	11,794,000	11,185,000	9,901,000	8,988,000	46,237,274	41,867,769
Operating loss	$ 37,000	$ 446,000	$ 180,000	$ (774,000)	$ 454,000	$ (271,000)	$ (922,000)	$ (1,760,000)	(111,354)	(2,499,236)
Depreciation									700,000	800,000
Amortization									500,000	600,000
Technology Development
Segment Reporting Information [Line Items]
Operating loss									(120,417)	(499,583)
Depreciation									359,626	352,435
Amortization									139,067	195,619
Products and Licensing
Segment Reporting Information [Line Items]
Operating loss									9,063	(1,999,653)
Depreciation									747,216	1,148,195
Amortization									$ 1,280,699	$ 2,017,629

Financial Information About Segments - Segment Information (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 66,222,636	$ 54,996,973
Property plant and equipment, and intangible assets	3,453,741	3,482,687
Technology Development
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	32,011,084	16,923,090
Property plant and equipment, and intangible assets	2,361,663	2,602,803
Products and Licensing
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	34,211,552	38,073,883
Property plant and equipment, and intangible assets	$ 4,831,671	$ 4,749,101

Quarterly Results (unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
Quarterly Results (unaudited) (Details) - USD ($)	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Technology development	$ 5,148,000	$ 4,591,000	$ 4,602,000	$ 4,235,000	$ 4,509,000	$ 4,118,000	$ 4,047,000	$ 3,607,000	$ 18,576,383	$ 16,280,582
Products and licensing	8,067,000	7,052,000	6,691,000	5,851,000	7,285,000	7,067,000	5,854,000	5,381,000	27,660,891	25,587,187
Total revenues	13,215,000	11,643,000	11,293,000	10,086,000	11,794,000	11,185,000	9,901,000	8,988,000	46,237,274	41,867,769
Gross margin	5,352,000	4,533,000	4,368,000	3,876,000	4,671,000	4,358,000	3,628,000	3,148,000	18,128,825	15,804,700
Operating (loss)/income	37,000	446,000	180,000	(774,000)	454,000	(271,000)	(922,000)	(1,760,000)	(111,354)	(2,499,236)
Net (loss)/income from continuing operations	234,000	514,000	78,000	(865,000)	348,000	(388,000)	(919,000)	(1,711,000)	(38,605)	(2,669,932)
(Loss)/income from discontinued operations net of income taxes	201,000	15,243,000	(299,000)	(491,000)	(42,000)	(57,000)	149,000	250,000	14,653,510	300,440
Net income/(loss)	435,000	15,757,000	(221,000)	(1,356,000)	306,000	(445,000)	(770,000)	(1,461,000)	14,614,905	(2,369,492)
Net (loss)/income attributable to common stockholders	$ 386,000	$ 15,723,000	$ (251,000)	$ (1,390,000)	$ 276,000	$ (474,000)	$ (796,000)	$ (1,481,000)	$ 14,468,016	$ (2,474,750)
Net (loss)/income per share from continuing operations:
Basic (in dollars per share)	$ 0.01	$ 0.02	$ 0.00	$ (0.03)	$ 0.01	$ (0.01)	$ (0.03)	$ (0.06)
Diluted (in dollars per share)	0.01	0.02	0.00	(0.03)	0.01	(0.01)	(0.03)	(0.06)
Net (loss)/income per share from discontinued operations:
Basic (in dollars per share)	0.01	0.55	(0.01)	(0.02)	0.00	0.00	0.01	0.01
Diluted (in dollars per share)	0.01	0.47	(0.01)	(0.02)	0.00	0.00	0.01	0.01
Net (loss)/income attributable to common stockholders:
Basic (in dollars per share)	0.01	0.57	(0.01)	(0.05)	0.01	(0.02)	(0.03)	(0.05)
Diluted (in dollars per share)	$ 0.01	$ 0.48	$ (0.01)	$ (0.05)	$ 0.01	$ (0.02)	$ (0.03)	$ (0.05)
Weighted average shares:
Basic (in shares)	27,485,278	27,692,539	27,600,147	27,541,356	27,543,882	27,605,028	27,557,960	27,477,181
Diluted (in shares)	31,790,418	32,714,389	32,579,379	27,541,356	32,568,289	27,605,028	27,557,960	27,477,181

Discontinued Operations - Additional Information (Details)		12 Months Ended
	Aug. 09, 2017 USD ($) employee	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture		$ 28,026,528	$ 0
Depreciation and amortization from discontinued operations		1,300,000	2,300,000
Acquisition of property, plant and equipment for discontinued operations		100,000	1,400,000
Intangible property costs		100,000	100,000
Gain on sale of discontinued operations		(15,671,028)	$ 0
HSOR
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture		$ 28,000,000
HSOR \| Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase price	$ 33,500,000
Proceeds from divestiture	29,500,000
Placed into escrow	$ 4,000,000
Employees hired by purchaser \| employee	49
Monthly payment for transition services	$ 300,000
Transition period	5 months
Total transition cost	$ 1,500,000
Gain on sale of discontinued operations	$ (15,671,028)
HSOR \| Revenues \| Product Concentration Risk \| Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration percentage		16.10%
HSOR \| Cost of Revenues \| Product Concentration Risk \| Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration percentage		18.50%

Discontinued Operations - Summary of Transactions Related to Sale (Details) - USD ($)		12 Months Ended
	Aug. 09, 2017	Dec. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense		$ (912,298)	$ 0
Gain on sale, net of related income taxes		$ 15,671,028	$ 0
HSOR \| Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	$ 33,500,000
Less: transition services payments	(1,500,000)
Adjusted purchase price	32,000,000
Assets held for sale	(16,851,540)
Liabilities held for sale	2,330,052
Transaction costs	(895,186)
Income tax expense	(912,298)
Gain on sale, net of related income taxes	$ 15,671,028

Discontinued Operations - Assets and Liabilities Held For Sale (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Total current assets	$ 0	$ 5,801,629
Total non-current assets	0	10,509,282
Current liabilities:
Total current liabilities	0	2,376,703
Total non-current liabilities	$ 0	84,555
Held-for-sale
Current assets:
Accounts receivable, net		4,028,713
Inventory		1,521,400
Prepaid expenses and other current assets		251,516
Total current assets		5,801,629
Property and equipment, net		3,298,151
Intangible assets, net		5,314,046
Goodwill		1,846,331
Other assets		50,754
Total non-current assets		10,509,282
Total assets held for sale		16,310,911
Current liabilities:
Accounts payable		1,511,450
Accrued liabilities		753,556
Deferred revenue		111,697
Total current liabilities		2,376,703
Long-term deferred rent		84,555
Total non-current liabilities		84,555
Total liabilities held for sale		$ 2,461,258

Discontinued Operations - Components of Income from Discontinued Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Net revenues									$ 6,356,237	$ 17,343,227
Cost of revenues									4,599,042	11,413,166
Operating expenses									2,750,951	5,368,160
Other expenses									0	50,528
(Loss)/income before income taxes									(993,756)	511,373
Allocated tax expense									23,762	210,933
Operating (loss)/income from discontinued operations									(1,017,518)	300,440
Gain on sale, net of related income taxes									15,671,028	0
Net income from discontinued operations	$ 201,000	$ 15,243,000	$ (299,000)	$ (491,000)	$ (42,000)	$ (57,000)	$ 149,000	$ 250,000	$ 14,653,510	$ 300,440

Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
Valuation and Qualifying Accounts (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	$ 21,556,785	$ 20,888,513
Additions	99,888	856,037
Deductions	(16,349,212)	(187,765)
Balance at end of period	5,307,461	21,556,785
Deferred tax valuation allowance
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	21,309,546	20,759,102
Additions		550,444
Deductions	(16,288,802)	0
Balance at end of period	5,020,744	21,309,546
Allowances for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of Period	247,239	129,411
Additions	99,888	305,593
Deductions	(60,410)	(187,765)
Balance at end of period	$ 286,717	$ 247,239