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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	LUNA
Entity Registrant Name	LUNA INNOVATIONS INC
Entity Central Index Key	0001239819
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,932,271

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 33,292,800		$ 36,981,533	$ 10,291,255	$ 12,802,458
Accounts receivable, net	9,385,772		7,869,168
Receivable from sale of HSOR business	4,001,833		4,000,976
Contract assets	3,231,770	$ 2,684,339	1,778,142
Inventory	6,906,998	6,424,804	6,951,110
Prepaid expenses and other current assets	1,054,984		1,220,650
Total current assets	57,874,157		58,801,579
Long-term contract assets	308,093		209,699
Property and equipment, net	3,323,749		3,453,741
Intangible assets, net	3,137,083		3,237,593
Goodwill	502,000		502,000
Other assets	18,024		18,024
Total assets	65,163,106		66,222,636
Current liabilities:
Current portion of long-term debt obligations	1,527,828		1,833,333
Current portion of capital lease obligations	34,661		43,665
Accounts payable	3,787,701		2,962,863
Accrued liabilities	5,554,481		6,557,649
Contract liabilities	1,400,922		3,428,625
Total current liabilities	12,305,593		14,826,135
Long-term deferred rent	1,109,397		1,184,438
Long-term debt obligations	0		603,007
Long-term capital lease obligations	54,970		71,275
Total liabilities	13,469,960		16,684,855
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	1,322		1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	29,897		29,186
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	(2,116,640)		(1,649,746)
Additional paid-in capital	84,742,385		83,563,208
Accumulated deficit	(30,963,818)	(32,052,161)	(32,406,189)
Total stockholders’ equity	51,693,146	$ 49,891,809	49,537,781
Total liabilities and stockholders’ equity	$ 65,163,106		$ 66,222,636

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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)	29,025,529	28,354,822
Common stock, outstanding (in shares)	27,772,424	27,283,918
Treasury Stock (in shares)	1,253,105	1,070,904

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
Consolidated Statements of Operations - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 13,772,648	$ 11,293,031	$ 25,965,819	$ 21,379,929
Cost of revenues:
Total cost of revenues	8,100,180	6,926,821	15,267,233	13,137,336
Gross profit	5,672,468	4,366,210	10,698,586	8,242,593
Operating expense:
Selling, general and administrative	3,767,456	3,367,716	7,577,072	7,089,889
Research, development and engineering	1,003,863	818,891	2,105,352	1,747,662
Total operating expense	4,771,319	4,186,607	9,682,424	8,837,551
Operating income/(loss)	901,149	179,603	1,016,162	(594,958)
Other income/(expense):
Investment income	100,846	0	175,756	0
Other income/(expense)	1,187	(1,225)	2,583	(869)
Interest expense	(33,988)	(60,386)	(75,234)	(124,760)
Total other income/(expense)	68,045	(61,611)	103,105	(125,629)
Income/(loss) from continuing operations before income taxes	969,194	117,992	1,119,267	(720,587)
Income tax (benefit)/expense	(98,133)	40,937	(96,736)	67,627
Net income/(loss) from continuing operations	1,067,327	77,055	1,216,003	(788,214)
Loss from discontinued operations, net of income tax of $0	0	(298,817)	0	(789,534)
Net loss from discontinued operations	0	(298,817)	0	(789,534)
Net income/(loss)	1,067,327	(221,762)	1,216,003	(1,577,748)
Preferred stock dividend	63,235	29,536	127,660	63,632
Net income/(loss) attributable to common stockholders	$ 1,004,092	$ (251,298)	$ 1,088,343	$ (1,641,380)
Net income/(loss) per share from continuing operations:
Basic (in dollars per share)	$ 0.04	$ 0.00	$ 0.04	$ (0.03)
Diluted (in dollars per share)	0.03	0.00	0.04	(0.03)
Net loss per share from discontinued operations:
Basic (in dollars per share)	0.00	(0.01)	0.00	(0.03)
Diluted (in dollars per share)	0.00	(0.01)	0.00	(0.03)
Net income/(loss) per share attributable to common stockholders:
Basic (in dollars per share)	0.04	(0.01)	0.04	(0.06)
Diluted (in dollars per share)	$ 0.03	$ (0.01)	$ 0.03	$ (0.06)
Weighted average common shares and common equivalent shares outstanding:
Basic (in shares)	27,531,361	27,600,147	27,368,185	27,570,919
Diluted (in shares)	31,506,745	32,579,379	31,257,277	27,570,919
Technology development
Revenues:
Total revenues	$ 5,466,281	$ 4,602,272	$ 10,103,056	$ 8,838,375
Cost of revenues:
Total cost of revenues	3,945,126	3,443,954	7,298,628	6,553,423
Products and licensing
Revenues:
Total revenues	8,306,367	6,690,759	15,862,763	12,541,554
Cost of revenues:
Total cost of revenues	$ 4,155,054	$ 3,482,867	$ 7,968,605	$ 6,583,913

Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Allocated tax expense	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Cash flows used in operating activities
Net income/(loss)	$ 1,216,003	$ (1,577,748)
Adjustments to reconcile net income/(loss) to net cash used in operating activities
Depreciation and amortization	622,577	1,753,748
Share-based compensation	212,149	321,756
Bad debt expense	6,000	40,753
Gain on disposal of fixed assets	(1,000)	(670)
Change in assets and liabilities
Accounts receivable	(1,522,604)	1,433,014
Contract assets	(645,824)	(326,333)
Inventory	(482,194)	(1,170,519)
Other current assets	164,809	325,005
Accounts payable and accrued expenses	(253,372)	(894,315)
Contract liabilities	(2,053,566)	(215,555)
Net cash used in operating activities	(2,737,022)	(314,321)
Cash flows used in investing activities
Acquisition of property and equipment	(198,012)	(796,217)
Intangible property costs	(185,909)	(318,942)
Proceeds from sale of property and equipment	1,000	3,000
Net cash used in investing activities	(382,921)	(1,112,159)
Cash flows used in financing activities
Payments on capital lease obligations	(25,309)	(25,611)
Payments of debt obligations	(916,665)	(916,666)
Repurchase of common stock	(466,894)	(143,266)
Proceeds from the exercise of options and warrants	840,078	820
Net cash used in financing activities	(568,790)	(1,084,723)
Net decrease in cash and cash equivalents	(3,688,733)	(2,511,203)
Cash and cash equivalents—beginning of period	36,981,533	12,802,458
Cash and cash equivalents—end of period	33,292,800	10,291,255
Supplemental disclosure of cash flow information
Cash paid for interest	72,127	120,191
Cash paid for income taxes	8,156	40,937
Non-cash investing and financing activities
Dividend on preferred stock, 39,646 shares of common stock issuable for the six months ended June 30, 2018 and 2017	$ 127,660	$ 63,632

Consolidated Statements of Cash Flows (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Cash Flows [Abstract]
Dividend on preferred stock, shares of common stock issuable (in shares)	39,646	39,646

Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Nature of Operations

Luna Innovations Incorporated (“we,” “Luna Innovations” or the “Company”), headquartered in Roanoke, Virginia, was incorporated in the Commonwealth of Virginia in 1990 and reincorporated in the State of Delaware in April 2003. We are a leader in advanced optical technology, providing unique capabilities in high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive industries. Prior to the sale of our optoelectronics business in July 2018 (See Note 10), we also developed and manufactured custom optoelectronic components and sub-assemblies for various industrial applications. We are organized into two reportable segments, which work closely together to turn ideas into products: our Technology Development segment and our Products and Licensing segment. Our business model is designed to accelerate the process of bringing new and innovative technologies to market.

Unaudited Interim Financial Information

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“U.S. GAAP”) for interim financial statements and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. The unaudited consolidated interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments, consisting of only normal recurring accruals considered necessary to present fairly our financial position at June 30, 2018, results of operations for the three and six months ended June 30, 2018 and 2017, and cash flows for the six months ended June 30, 2018 and 2017. The results of operations for the three and six months ended June 30, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The consolidated balance sheet as of December 31, 2017 was derived from our audited consolidated financial statements.

The consolidated interim financial statements, including our significant accounting policies, should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2017, included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 21, 2018.

Reclassifications

Certain amounts in the prior period have been reclassified to conform to current presentation. As a result of the adoption of Accounting Standards Codification ("ASC") 2014-09, Revenue from Contracts with Customers (Topic 606), we presented balances entitled contract assets and contract liabilities within the consolidated balance sheet as well as the impact of the changes in these balances within the consolidated statement of cash flows. We reclassified comparable balances within the December 31, 2017 consolidated balance sheet as well as the impact of changes in those balances within the consolidated statement of cash flows in order to enhance comparability. These reclassifications had no effect on our reported financial condition, results of operations, or cash flows. Any other reclassifications were immaterial to the consolidated interim financial statements taken as a whole.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs. The following hierarchy classifies the inputs used to determine fair value into three levels:


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


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


•	Level 3—Valuations derived from valuation techniques in which one or more significant inputs or 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. The carrying value of our debt approximates fair value, as we consider the floating interest rate on our credit facilities with Silicon Valley Bank ("SVB") to be at market for similar instruments. Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. This includes items such as non-financial assets and liabilities initially measured at fair value in a business combination and non-financial long-lived asset groups measured at fair value for an impairment assessment. In general, non-financial assets including intangible assets and property and equipment are measured at fair value when there is an indication of impairment and are recorded at fair value only when any impairment is recognized.

Net Income/(Loss) Per Share

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

The effect of 4.0 million and 5.0 million common stock equivalents (which include outstanding warrants, preferred stock and stock options) are included for the diluted per share data for the three months ended June 30, 2018 and 2017, respectively. The effect of 3.9 million common stock equivalents are included for the diluted per share data for the six months ended June 30, 2018. The effect of 4.6 million common stock equivalents are not included for the six months ended June 30, 2017, as they are anti-dilutive to earnings per share due to our net loss from continuing operations.

Recently Issued Accounting Pronouncements

Effective January 1, 2018, we adopted Revenue from Contracts with Customers (Topic 606), using the modified retrospective transition method. Under the modified retrospective approach, we apply the standards 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 resulted in a cumulative adjustment to decrease the accumulated deficit in the net 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 maintain comparability of the periods presented. The cumulative effect of the changes made to our January 1, 2018 unaudited consolidated balance sheet for the adoption of Topic 606 was as follows:



	Balance at			Adjustment for			Adjusted balance at
	December 31, 2017			Topic 606			January 1, 2018
Assets:
Contract assets	$	1,778,142		$	906,197		$	2,684,339
Inventory	$	6,951,110		$	(526,306	)	$	6,424,804

Liabilities:
Contract liabilities	$	3,428,625		$	25,863		$	3,454,488

Stockholders' equity:
Accumulated deficit	$	(32,406,189	)	$	354,028		$	(32,052,161	)

Contract assets were formerly reported as unbilled accounts receivable. Contract liabilities were formerly reported as accrued liabilities or deferred revenue. Inventory was also impacted by the adoption of the new guidance. The titles have been changed in the table below to be consistent with accounts currently used under the new standard.



	December 31, 2017
	As Reported		As Adopted
Accounts receivables, net	$	9,857,009	$	7,869,168
Contract assets	—		1,778,142
Long-term contract assets	—		209,699
Accrued liabilities	8,959,935		6,557,649
Contract liabilities	—		3,428,625
Deferred revenue	1,026,339		—

Under the new standard, contracts in our Technology Development segment, which primarily provide research services, are not 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. Revenues for this segment are recognized using either the “point in time” or “over time” methods of Topic 606, depending upon the revenue source. The major change in revenue recognition for the Products and Licensing segment related to custom optoelectronic products which changed 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 results 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 accumulated deficit on January 1, 2018. Our revenue for our standard products will continue to be recognized using the "point in time" model 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 and Licensing segment that are sometimes offered to customers include discounts on future purchases related to rental agreements, customer rights of return, and volume discounts.

Technology Development Revenues

We perform research and development for U.S. Federal government agencies, educational institutions and commercial organizations. We account for a research contract when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable. Revenue is earned under cost reimbursable, time and materials and fixed price contracts. Direct contract costs are expensed as incurred.

Our contracts with agencies of the U.S. government are subject to periodic funding by the respective contracting agency. Funding for a contract may be provided in full at inception of the contract or ratably throughout the contract as the services are provided. In evaluating the probability of funding for purposes of assessing collectability of the contract price, we consider our previous experience with our customers, communication with our customers regarding funding status and our knowledge of available funding for the contract or program. If funding is not assessed as probable, revenue recognition is deferred until realization is reasonably assured.

Under the typical payment terms of our U.S. government contracts, the customer pays us either performance-based payments ("PBPs") or progress payments. PBPs, which are typically used in the firm fixed price contracts, are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments, which are typically used in our cost type contracts, are interim payments based on costs incurred as the work progresses. For our U.S. government cost-type contracts, the customer generally pays us during the performance period for 80%-90% of our actual costs incurred. Because the customer retains a small portion of the contract price until completion of the contract and audit of allowable costs, cost type contracts generally result in revenue recognized in excess of billings which we present as contract assets on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these advance payments and PBPs paid in advance which are in excess of the revenue recognized and present these amounts as contract liabilities on the balance sheet.

To determine the proper revenue recognition method for research and development contracts, we evaluate whether two or more contracts should be combined and accounted for as one single modified contract and whether the combined or single contract should be accounted for as more than one performance obligation. For instances where a contract has options that were bid with the initial contract and awarded at a later date, we combine the options with the original contract when options are awarded. For most of our contracts, the customer contracts for research with multiple milestones that are interdependent. Consequently, the entire contract is accounted for as one performance obligation. The effect of the combined or modified contract on the transaction price and measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

Contract revenue recognition is measured over time as we perform because of continuous transfer of control to the customer. For U.S. government contracts which are typically subject to the Federal Acquisition Regulation ("FAR"), this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for cost incurred plus a reasonable profit and take control of any work in process. From time to time, as part of normal management processes, facts may change, causing revisions to estimated total costs or revenues expected. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known.

Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. We generally use the input method, more specifically the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The underlying bases for estimating our contract research revenues are measurable expenses, such as labor, subcontractor costs and materials, and data that are updated on a regular basis for purposes of preparing our cost estimates. Our research contracts generally have a period of performance of six months to three years, and our estimates of contract costs have historically been consistent with actual results. Revisions in these estimates between accounting periods to reflect changing facts and circumstances have not had a material impact on our operating results, and we do not expect future changes in these estimates to be material. The cumulative impact of any revisions to estimates and the full impact of anticipated losses on any type of contract are recognized in the period in which they become known.

Under cost reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fixed fee representing the profit negotiated between us and the contracting agency. Revenue from cost reimbursable contracts is recognized as costs are incurred plus an estimate of applicable fees earned. We consider fixed fees under cost reimbursable contracts to be earned in proportion to the allowable costs incurred in performance of the contract.

Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs.

Fixed price contracts may include either a product delivery or specific service performance throughout a period. For fixed price contracts that are based on the proportional performance method and involve a specified number of deliverables, we recognize revenue based on the proportion of the cost of the deliverables compared to the cost of all deliverables included in the contract as this method more accurately measures performance under these arrangements. For fixed price contracts that provide for the development and delivery of a specific prototype or product, revenue is recognized based upon the percentage of completion method.

Whether certain costs under government contracts are allowable is subject to audit by the government. Certain indirect costs are charged to contracts using provisional or estimated indirect rates, which are subject to later revision based on government audits of those costs. Management is of the opinion that costs subsequently disallowed, if any, would not likely have a significant impact on revenues recognized for those contracts.

Products and Licensing Revenues

We produce standard and customized products for commercial organizations, educational institutions, and U.S. Federal government agencies. In addition we will also offer extended warranties, product rentals, and services which include testing, training, or repairs for specific products. Customers also pay royalties as agreed based on sales or usage. We account for product and related items when a contract has been executed, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of the contract price is considered probable.

To determine the proper revenue recognition method for Products and Licensing contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. We recognize revenue when the performance obligation has been satisfied by transferring the control of the product or service to the customer. For tangible products that contain software that is essential to the tangible product’s functionality, we consider the product and software to be a single performance obligation and recognize revenue accordingly. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on their relative stand-alone selling prices. In such circumstances, we use the observable price of goods or services which are sold separately in similar circumstances to similar customers. If these prices are not observable, then we will estimate the stand-alone selling price using information that is reasonably available. For the majority of our standard products and services, price list and discount structures related to customer type are available. For products and services that do not have price list and discount structures, we may use one or more of the following: (i) adjusted market assessment approach, (ii) expected cost plus a margin approach, and (iii) residual approach. The adjusted market approach requires us to evaluate the market in which we sell goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services. The expected cost plus margin approach requires us to forecast our expected costs of satisfying the performance obligation and then add a reasonable margin for that good or service. The residual approach decreases the total transaction price by the sum of the observable standalone selling prices if either the company sells the same good or services to different customers for a broad range of amounts or the company has not established a price for the good or service and that good or service has not been sold on a standalone basis. Shipping and handling activities primarily occur after a customer obtains control and are considered fulfillment cost rather than separate performance obligations. Similarly, sales and similar taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price.

For standard products, we recognize revenue at a point in time when control passes to the customer. Absent substantial product acceptance clauses, this is based on the shipping terms. For custom products that require engineering and development based on customer requirements, we will recognize revenue over time using the output method for any items shipped and any finished goods or work in process that is produced for balances of open sales orders. For any finished goods or work in process that has been produced for the balance of open sales orders we recognize revenue by applying the average selling price for such open order to the lesser of the on hand balance in finished goods or open sales order quantity which we present as a contract asset on the balance sheet. Cost of sales is recognized based on the standard cost of the finished goods and work in process associated with this revenue and inventory balances are reduced accordingly. For extended warranties and product rentals, revenue is recognized over time using the output method based on the time elapsed for the warranty or service period. In the case of warranties, we record a contract liability for amounts billed but that are not recognized until subsequent period. A separate contract liability is recorded for the cost associated with warranty repairs based on our estimate of future expense. For testing services where we are performing testing on an asset the customer controls, revenue is recognized over time by the output method using the performance to date. For training where the customer is receiving the benefit of training as it is occurring and for repairs to a customer controlled asset, revenue is recognized over time by the output method using the performance to date. For royalty revenue, we apply the practical expedient “royalty exception” recognizing revenue based on the royalty agreement which specifies an amount based on sales or minimum amount, whichever is greater.

In some product rental contracts, a customer may be offered a discount on the purchase of an item that would provide for a material right. When a material right has been provided to a customer, a separate performance obligation is established and a portion of the rental revenue will be deferred until the future product is purchased or the option expires. This deferred revenue is recognized as a contract liability on the balance sheet. In certain circumstances we may offer a "right of return" to a distributor of our products, in which case a contract liability is calculated based on the terms of the agreement and recorded as a reduction to revenue. In addition, a contract asset for the rights to recover products from customers and a reduction of cost of sales is also calculated and recorded.

Unfulfilled performance obligations represent amounts expected to be earned on executed contracts. Indefinite delivery and quantity contracts and unexercised options are not reported in total unfulfilled performance obligations. Unfulfilled performance obligations include funded obligations, which is the amount for which money has been directly authorized by the U.S. government and for which a purchase order has been received by a commercial customer, and unfunded obligations, representing firm orders for which funding has not yet been appropriated. The approximate value of our Technology Development segment unfulfilled performance obligations was $19.3 million at June 30, 2018. We expect to satisfy 48% of the performance obligations in 2018, 41% in 2019 and the remaining by 2022. The approximate value of our Products and Licensing segment unfulfilled performance obligations was $5.5 million at June 30, 2018. We expect to satisfy 69% of the performance obligations in 2018, 28% in 2019 and the remaining by 2023.

We disaggregate our revenue from contracts with customers by geographic locations, customer-type, contract type, timing of recognition, and major categories for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below.



		Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
		(unaudited)						(unaudited)
		Technology Development		Products and Licensing		Total		Technology Development		Products and Licensing		Total
Total Revenue by Geographic Location
	United States	$	5,466,281	$	4,992,300	$	10,458,581	$	10,103,056	$	9,837,137	$	19,940,193
	Asia	—		1,762,578		1,762,578		—		3,188,925		3,188,925
	Europe	—		1,421,279		1,421,279		—		2,607,288		2,607,288
	Canada, Central and South America	—		127,150		127,150		—		224,353		224,353
	All Others	—		3,060		3,060		—		5,060		5,060
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Major Customer Type
	Sales to the U.S. government	$	5,463,117	$	885,133	$	6,348,250	$	10,068,270	$	1,275,202	$	11,343,472
	U.S. direct commercial sales and other	3,164		4,107,167		4,110,331		34,786		8,572,516		8,607,302
	Foreign commercial sales & other	—		3,314,067		3,314,067		—		6,015,045		6,015,045
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Contract Type
	Fixed-price contracts	$	2,375,939	$	8,306,367	$	10,682,306	$	4,607,592	$	15,862,763	$	20,470,355
	Cost-type contracts	3,090,342		—		3,090,342		5,495,464		—		5,495,464
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Timing of Recognition
	Goods transferred at a point in time	$	—	$	5,938,992	$	5,938,992	$	—	$	11,813,318	$	11,813,318
	Goods/services transferred over time	5,466,281		2,367,375		7,833,656		10,103,056		4,049,445		14,152,501
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Major Products/Services
	Technology development	$	5,466,281	$	—	$	5,466,281	$	10,103,056	$	—	$	10,103,056
	Optical test and measurement systems	—		3,971,510		3,971,510		—		7,659,519		7,659,519
	Optical components and sub-assemblies	—		3,849,283		3,849,283		—		7,273,925		7,273,925
	Other	—		485,574		485,574		—		929,319		929,319
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819

The following tables summarize the impacts of adopting Topic 606 on our consolidated financial statements as of and for the three and six months ended June 30, 2018.



	Impact of changes in accounting policies
	As Reported			Adjustments			Balances without adoption of Topic 606
	(unaudited)			(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	33,292,800		$	—		$	33,292,800
Accounts receivable, net	9,385,772			—			9,385,772
Receivable from sale of HSOR business	4,001,833			—			4,001,833
Contract assets	3,231,770			(1,249,551		)	1,982,219
Inventory	6,906,998			725,351			7,632,349
Prepaid expenses and other current assets	1,054,984			7,175			1,062,159
Total current assets	57,874,157			(517,025		)	57,357,132
Long-term contract assets	308,093			—			308,093
Property and equipment, net	3,323,749			—			3,323,749
Intangible assets, net	3,137,083			—			3,137,083
Goodwill	502,000			—			502,000
Other assets	18,024			—			18,024
Total assets	$	65,163,106		$	(517,025	)	$	64,646,081
Liabilities and stockholders’ equity
Liabilities:
Current liabilities:
Current portion of long-term debt obligations	$	1,527,828		$	—		$	1,527,828
Current portion of capital lease obligations	34,661			—			34,661
Accounts payable	3,787,701			—			3,787,701
Accrued liabilities	5,554,481			—			5,554,481
Contract liabilities	1,400,922			(18,270		)	1,382,652
Total current liabilities	12,305,593			(18,270		)	12,287,323
Long-term deferred rent	1,109,397			—			1,109,397
Long-term debt obligations	—			—			—
Long-term capital lease obligations	54,970			—			54,970
Total liabilities	13,469,960			(18,270		)	13,451,690
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	1,322			—			1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	29,897			—			29,897
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	(2,116,640		)	—			(2,116,640		)
Additional paid-in capital	84,742,385			—			84,742,385
Accumulated deficit	(30,963,818		)	(498,755		)	(31,462,573		)
Total stockholders’ equity	51,693,146			(498,755		)	51,194,391
Total liabilities and stockholders’ equity	$	65,163,106		$	(517,025	)	$	64,646,081



	Impact of changes in accounting policies
	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As reported			Adjustments			Balances without adoption of Topic 606			As reported			Adjustments			Balances without adoption of Topic 606
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Technology development	$	5,466,281		$	—		$	5,466,281		$	10,103,056		$	—		$	10,103,056
Products and licensing	8,306,367			(231,975		)	8,074,392			15,862,763			(357,752		)	15,505,011
Total revenues	13,772,648			(231,975		)	13,540,673			25,965,819			(357,752		)	25,608,067
Cost of revenues:
Technology development	3,945,126			—			3,945,126			7,298,628			—			7,298,628
Products and licensing	4,155,054			(63,680		)	4,091,374			7,968,605			(213,025		)	7,755,580
Total cost of revenues	8,100,180			(63,680		)	8,036,500			15,267,233			(213,025		)	15,054,208
Gross profit	5,672,468			(168,295		)	5,504,173			10,698,586			(144,727		)	10,553,859
Operating expense:
Selling, general and administrative	3,767,456			—			3,767,456			7,577,072			—			7,577,072
Research, development and engineering	1,003,863			—			1,003,863			2,105,352			—			2,105,352
Total operating expense	4,771,319			—			4,771,319			9,682,424			—			9,682,424
Operating income	901,149			(168,295		)	732,854			1,016,162			(144,727		)	871,435
Other income:
Investment income	100,846			—			100,846			175,756			—			175,756
Other income	1,187			—			1,187			2,583			—			2,583
Interest expense	(33,988		)	—			(33,988		)	(75,234		)	—			(75,234		)
Total other income	68,045			—			68,045			103,105			—			103,105
Income from continuing operations before income taxes	969,194			(168,295		)	800,899			1,119,267			(144,727		)	974,540
Income tax expense	(98,133		)	—			(98,133		)	(96,736		)	—			(96,736		)
Net income from continuing operations	$	1,067,327		$	(168,295	)	$	899,032		$	1,216,003		$	(144,727	)	$	1,071,276

Effective January 1, 2018, we adopted Accounting Standards Update ("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. The adoption of ASU No. 2016-15 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 ending 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 February 2018, the FASB issued ASU 2018-02: Income Statement – Reporting Comprehensive Income (Topic 220) (ASU 2018-02). Under current accounting guidance, the income tax effects for changes in income tax rates and certain other transactions are recognized in income from continuing operations resulting in income tax effects recognized in AOCI that do not reflect the current tax rate of the entity (“stranded tax effects”). The new guidance allows us the option to reclassify these stranded tax effects to accumulated deficit that relate to the change in the federal tax rate resulting from the passage of the Tax Cuts and Jobs Act. This update is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted. We do not expect the adoption of this standard will have a significant impact on our consolidated financial statements.

In January 2017, the FASB issued 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.

Discontinued Operations

6 Months Ended

Jun. 30, 2018

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 potential satisfaction of certain post-closing indemnification obligations (the "Transaction"). The HSOR business was a component of the operations of Advanced Photonix, Inc., which we acquired in May 2015. The HSOR business accounted for 16.8% of revenues and 18.5% of our cost of revenues for the three months ended June 30, 2017 and 17.0% of revenues and 19.9% of our cost of revenues for the six months ended June 30, 2017.

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

The key components of net loss from discontinued operations were as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(unaudited)					(unaudited)
Net revenues	—		$	2,283,440		—		$	5,314,927
Cost of revenues	—		1,568,746			—		3,801,363
Operating expenses	—		1,013,511			—		2,303,098
Other expenses	—		—			—		—
Loss before income taxes	—		(298,817		)	—		(789,534		)
Allocated tax expense	—		—			—		—
Net loss from discontinued operations	$	—	$	(298,817	)	$	—	$	(789,534	)

For the six months ended June 30, 2017, cash flows used in operating activities for discontinued operations were $1.0 million. For the six months ended June 30, 2017, cash flows used in investing activities for discontinued operations were $0.8 million.

Contract Balances

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Contract Balances

Our contract assets consist of unbilled amounts for technology development contracts as well as custom product contracts. Also included in contract assets are royalty revenue and carrying amounts of right of returned inventory. Long-term contract assets include the fee withholding on cost reimbursable contracts that will not be billed within a year. Contract liabilities include excess billings, subcontractor accruals, warranty expense, extended warranty revenue, right of return refund, and customer deposits.

The following table shows the significant changes in contract balances for the six month period ending June 30, 2018:



	Contract Assets			Contract Liabilities
Opening Balance as of January 1, 2018	$	2,894,038		$	3,454,488
Revenue recognized that was included in the contract liabilities balance at the beginning of the period	—			(855,906		)
Transferred to payables from contract liabilities recognized at the beginning of the period	—			(2,041,792		)
Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period	—			844,132
Transferred to receivables from contract assets recognized at the beginning of the period	(2,245,515		)	—
Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	2,891,340			—
Balance as of June 30, 2018	$	3,539,863		$	1,400,922

Inventory

6 Months Ended

Jun. 30, 2018

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. We write down inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of the inventory and the estimated market value based upon assumptions about future demand and market conditions.

Components of inventory were as follows:



	June 30, 2018		December 31, 2017
	(unaudited)
Finished goods	$	1,725,710	$	2,143,953
Work-in-process	644,696		578,195
Raw materials	4,536,592		4,228,962
Total inventory	$	6,906,998	$	6,951,110

Accrued Liabilities

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities at June 30, 2018 and December 31, 2017 consisted of the following:



	June 30, 2018		December 31, 2017
	(unaudited)
Accrued compensation	$	4,396,462	$	5,274,005
Income tax payable	371,186		403,548
Accrued professional fees	122,626		117,445
Deferred rent	148,506		144,741
Royalties	148,433		290,235
Accrued interest	8,854		—
Accrued liabilities - other	358,414		327,675
Total accrued liabilities	$	5,554,481	$	6,557,649

Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt

Silicon Valley Bank Facility

We currently have a Loan and Security Agreement with SVB (the "Credit Facility") under which, as amended on May 8, 2015, we have a term loan with an original borrowing amount of $6.0 million (the “Original Term Loan”). The Original Term Loan is repayable in 48 monthly installments of $125,000, plus accrued interest payable monthly in arrears, and unless earlier terminated, is scheduled to mature in May 2020. The Original Term Loan carries a floating annual interest rate equal to SVB’s prime rate then in effect plus 2%. We may prepay amounts due under the Original Term Loan at any time, subject to an early termination fee of up to 2% of the amount of prepayment.

In September 2015, we entered into the Waiver and Seventh Loan Modification Agreement, which provided an additional $1 million of available financing for purchases of equipment through December 31, 2015, which we fully borrowed in December 2015 (the "Second Term Loan" and, together with the Original Term Loan, the "Term Loans"). The Second Term Loan also bears interest at a floating prime rate plus 2% and is to be repaid in 35 monthly installments of $27,778 plus accrued interest.

The Credit Facility requires us to maintain a minimum cash balance of $4.0 million and to maintain at each month end a ratio of cash plus 60% of accounts receivable greater than or equal to 1.5 times the outstanding principal of the Term Loans. The Credit Facility also requires us to observe a number of additional operational covenants, including protection and registration of intellectual property rights, and certain customary negative covenants. As of June 30, 2018, we were in compliance with all covenants under the Credit Facility.

Amounts due under the Credit Facility are secured by substantially all of our assets, including intellectual property, personal property and bank accounts. In addition, the Credit Facility contains 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. If any event of default occurs SVB may declare due immediately all borrowings under the Credit Facility and foreclose on the collateral. Furthermore, an event of default under the Credit Facility would result in an increase in the interest rate on any amounts outstanding. As of June 30, 2018, there were no events of default on the Credit Facility.

The aggregate balance under the Term Loans at June 30, 2018 and December 31, 2017, was $1.5 million and $2.5 million, respectively. One term loan, with a balance of $0.2 million and $0.3 million as of June 30, 2018 and December 31, 2017, respectively, matures on December 1, 2018. The other term loan, with a balance of $1.4 million and $2.1 million as of June 30, 2018 and December 31, 2017, respectively, matures on May 1, 2019. The effective rate of our Term Loan at June 30, 2018 was 7%.

The following table presents a summary of debt outstanding as of June 30, 2018 and December 31, 2017:



	June 30, 2018		December 31, 2017
	(unaudited)
Silicon Valley Bank Term Loan	$	1,541,667	$	2,458,333
Less: unamortized debt issuance costs	13,839		21,993
Less: current portion	1,527,828		1,833,333
Total long-term debt	$	—	$	603,007

The schedule of remaining principal payments under our Term Loans as of June 30, 2018 was as follows:



2018 (remaining six months)	916,666
2019	625,000
	$	1,541,666

Capital Stock and Share-Based Compensation

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Capital Stock and Share-Based Compensation

We recognize share-based compensation expense based upon the fair value of the underlying equity award on the date of the grant. For restricted stock awards and restricted stock units, we recognize expense based upon the price of our underlying stock at the date of the grant. We have elected to use the Black-Scholes-Merton option pricing model to value any option or warrant awards granted. We recognize share-based compensation for such awards on a straight-line basis over the requisite service period of the awards. 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. The expected life is based upon historical experience of homogeneous groups within our company. We also assume an expected dividend yield of zero for all periods, as we have never paid a dividend on our common stock and do not have any plans to do so in the future.

Stock Options

A summary of the stock option activity for the six months ended June 30, 2018 is presented below:



	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, January 1, 2018	2,714,561		$0.61 - $6.55	$	1.88	$	2,098,195	2,590,030	$	1.89	$	2,013,034
Granted	73,212		$2.32 - $2.67	$	2.46
Exercised	(53,939	)	$0.65 - $2.46	$	2.27
Canceled	(540,487	)	$1.21 - $6.55	$	2.15
Balance, June 30, 2018	2,193,347		$0.61 - $6.23	$	1.83	$	2,911,106	2,082,354	$	1.81	$	2,812,472


(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 aggregate intrinsic value is based on the closing price of our common stock on the Nasdaq Capital Market, as applicable, on the respective dates.

At June 30, 2018, the outstanding stock options to purchase an aggregate of 2.2 million shares had a weighted-average remaining contractual term of 4.0 years, and the exercisable stock options to purchase an aggregate of 2.1 million shares had a weighted-average remaining contractual term of 3.7 years. The fair value of shares underlying vested options was $6.2 million at June 30, 2018. The fair value of shares underlying options exercised during the six months ended June 30, 2018 was $172,285.

For the six months ended June 30, 2018 and 2017 we recognized $0.2 million and $0.3 million in share-based compensation expense, respectively, which is included in our selling, general and administrative expense in the accompanying consolidated interim financial statements. We expect to recognize $0.2 million in share-based compensation expense over the weighted-average remaining service period of 3.7 years for stock options outstanding as of June 30, 2018.

Restricted Stock and Stock Units

For the six months ended June 30, 2018, we issued 280,000 shares of restricted stock to certain employees. Shares of restricted stock issued to employees vest in three equal annual installments on the anniversary dates of their grant. For the six months ended June 30, 2018, 182,500 of restricted stock vested.

For the six months ended June 30, 2018, we issued 16,287 restricted stock units to certain non-employee members of our Board of Directors in respect of the annual equity grants pursuant to our non-employee director compensation policy. This amount represents the equity compensation to those non-employee directors who did not elect to defer the receipt of their equity compensation pursuant to our non-employee director deferred compensation plan described below. Restricted stock units issued to our directors vest at the earlier of the one year anniversary of their grant or the next annual stockholders' meeting. During the six months ended June 30, 2018, 129,865 restricted stock units vested.

The following table summarizes the value of our unvested restricted stock awards and restricted stock units:



	Number of Unvested Shares		Weighted Average Grant Date Fair Value		Aggregate Value of Unvested Shares
Balance, January 1, 2018	489,698		$	1.51	$	738,345
Granted	296,287		$	3.07	909,600
Vested	(312,365	)	$	2.75	(454,339		)
Balance, June 30, 2018	473,620		$	2.52	$	1,193,606

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. The Deferred Compensation Plan has historically permitted the participants to elect to defer cash fees to which they were entitled for board and committee service. For participating directors, in lieu of payment of cash fees, we credit their accounts under the Deferred Compensation Plan with a number of stock units based on the trading price of our common stock as of the date of the deferral. These stock units vest immediately, although the participating directors do not receive the shares represented by such units until a future qualifying event.

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 units representing this equity compensation vest at the earlier of the one year anniversary of their grant or the next annual stockholders' meeting.

The following is a summary of our stock unit activity under the Deferred Compensation Plan for the six months ended June 30, 2018:



	Number of Stock Units	Weighted Average Grant Date Fair Value per Share	Intrinsic Value Outstanding
Balance, January 1, 2018	466,702	$1.40	$	1,134,086
Granted	70,445	$3.00
Forfeitures	—	—
Converted	—	—
Balance, June 30, 2018	537,147	$1.61	$	1,600,698

As of June 30, 2018, 48,859 of the outstanding stock units had not yet vested.

The following table details our equity transactions during the six months ended June 30, 2018:



	Preferred Stock		Common Stock			Treasury Stock			Additional Paid-in Capital	Accumulated Deficit		Total
	Shares	$	Shares		$	Shares	$		$
Balance at January 1, 2018, as previously reported	1,321,514	1,322	27,283,918		29,186	1,070,904	(1,649,746	)	83,563,208	(32,406,189	)	49,537,781
Impact of change in accounting policy	—	—	—		—	—	—		—	354,028		354,028
As adjusted balance at January 1, 2018	1,321,514	1,322	27,283,918		29,186	1,070,904	(1,649,746	)	83,563,208	(32,052,161	)	49,891,809
Exercise of stock options	—	—	260,842		261	—	—		639,536	—		639,797
Share-based compensation	—	—	280,000		280	—	—		212,150	—		212,430
Non-cash compensation	—	—	129,865		130	—	—		199,871	—		200,001
Stock dividends to Carilion Clinic⁽¹⁾	—	—	—		40	—	—		127,620	(127,660	)	—
Net Income	—	—	—		—	—	—		—	1,216,003		1,216,003
Purchase of treasury stock	—	—	(182,201	)	—	182,201	(466,894	)	—	—		(466,894	)
Balance, June 30, 2018	1,321,514	1,322	27,772,424		29,897	1,253,105	(2,116,640	)	84,742,385	(30,963,818	)	51,693,146

(1)

The stock dividends payable in connection with Carilion Clinic’s Series A Preferred Stock will be issued subsequent to June 30, 2018. For the period from January 12, 2010, the original issue date of the Series A Preferred Stock, through June 30, 2018, the Series A Preferred Stock issued to Carilion has accrued $1,287,991 in dividends. The accrued and unpaid dividends as of June 30, 2018 will be paid by the issuance of 671,339 shares of our common stock upon Carilion’s written request.

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 re-instituted the stock repurchase program and authorized us to repurchase 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 June 30, 2018, we had repurchased a total of 565,629 shares for an aggregate purchase price of $1.1 million under this stock repurchase program. We currently maintain all repurchased shares under these stock repurchase programs as treasury stock.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We and our subsidiaries file U.S. Federal income tax returns and income tax returns in various state, local and foreign jurisdictions. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including the variability in accurately predicting our pre-tax and taxable income and the mix of jurisdictions to which they relate, changes in how we do business, changes in our stock price, tax law developments (including changes in statues, regulations, case law, and administrative practices), and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount if pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. For 2018, the anticipated effective income tax rate is expected to continue to differ from the Federal statutory rate of 21% primarily because of the release of valuation allowance related to net operating loss carryfowards expected to be used to offset taxable income in the period and certain discrete items. We consider both positive and negative evidence when evaluating the recoverability of our deferred tax assets ("DTAs"). The assessment is required to determine whether based on all available evidence, it is more likely than not (i.e. greater than a 50% probability) that all or some portion of the DTAs will be realized in the future. As of June 30, 2018 management has concluded a full valuation allowance of the DTAs is necessary because of sufficient uncertainty in our ability to realize the benefit associated with such DTAs in the future.

Operating Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Operating Segments

Our operations are divided into two operating segments—“Technology Development” and “Products and Licensing”.

The Technology Development segment provides applied research to customers in our areas of focus. 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 revenues primarily from services.

The Products and Licensing segment derives its revenues from product sales, funded product development and technology licenses.

Through June 30, 2018, our Chief Executive Officer and his direct reports collectively represented our chief operating decision makers, and they evaluated segment performance based primarily on revenues and operating income or loss. The accounting policies of our segments are the same as those described in the summary of significant accounting policies (see Note 1 to our Financial Statements, “Organization and Summary of Significant Accounting Policies,” presented in our Annual Report on Form 10-K as filed with the SEC on March 21, 2018).

The table below presents revenues and operating income/(loss) for reportable segments:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Revenues:
Technology development	$	5,466,281	$	4,602,272	$	10,103,056	$	8,838,375
Products and licensing	8,306,367		6,690,759		15,862,763		12,541,554
Total revenues	$	13,772,648	$	11,293,031	$	25,965,819	$	21,379,929
Technology development operating income/(loss)	$	445,042	$	32,920	$	544,274	$	(260,099	)
Products and licensing operating income/(loss)	456,107		146,683		471,888		(334,859		)
Total operating income/(loss)	$	901,149	$	179,603	$	1,016,162	$	(594,958	)
Depreciation, technology development	$	94,774	$	88,698	$	188,374	$	176,918
Depreciation, products and licensing	$	75,314	$	240,504	$	139,631	$	571,480
Amortization, technology development	$	40,856	$	26,169	$	78,062	$	74,759
Amortization, products and licensing	$	103,781	$	437,612	$	216,510	$	930,591

Products and licensing depreciation includes amounts from discontinued operations of $0.4 million for the six months ended June 30, 2017. Products and licensing amortization includes amounts from discontinued operations of $0.7 million for the six months ended June 30, 2017.

The table below presents assets for reportable segments:



	June 30, 2018		December 31, 2017
	(unaudited)
Total segment assets:
Technology development	$	30,704,165	$	32,011,084
Products and licensing	34,458,941		34,211,552
Total assets	$	65,163,106	$	66,222,636
Property plant and equipment, and intangible assets, technology development	$	2,204,428	$	2,361,663
Property plant and equipment, and intangible assets, products and licensing	$	4,758,404	$	4,831,671

The U.S. government accounted for 46% and 45% of total consolidated revenues for the three months ended June 30, 2018 and 2017, respectively and for 44% and 45% of total consolidated revenues for the six months ended June 30, 2018 and 2017, respectively.

International revenues (customers outside the United States) accounted for 24% and 23% of total consolidated revenues for the three months ended June 30, 2018 and 2017, respectively, and 23% and 21% of the total consolidated revenues for the six months ended June 30, 2018 and 2017, respectively. No single country, outside of the United States, represented more than 10% of total revenues in the three and six months ended June 30, 2018 and 2017.

Subsequent Event - Sale of Luna Optoelectronics

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Event - Sale of Luna Optoelectronics

On July 31, 2018 , we sold the assets and operations related to our optoelectronic components and subassemblies ("Opto") business, which was part of our Products and Licensing segment, to an unaffiliated third party for an initial purchase price of $18.5 million, of which $17.5 million was received at closing and up to $1.0 million is contingent upon the attainment of specified revenue targets during the eighteen months following the closing of the sale. 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 Opto business was a component of the operations of Advanced Photonix, Inc., which we acquired in May 2015, and represented all of our operations in our Camarillo, California and Montreal, Quebec facilities.

As the Opto assets did not meet the criteria for classification as held for sale in accordance with ASC 360-10-45 as of June 30, 2018, such assets were included within the assets held and used in our consolidated balance sheets as of June 30, 2018 or December 31, 2017. The following schedule sets forth the carrying amounts of major classes of assets and liabilities associated with the transaction as of June 30, 2018 and December 31, 2017.



			June 30, 2018		December 31, 2017
Current assets			(unaudited)
	Accounts receivable		$	2,159,843	$	1,940,126
	Contract assets		1,249,551		—
	Inventory		1,736,107		2,316,329
	Prepaid expenses and other current assets		89,592		125,821
		Total current assets	5,235,093		4,382,276
Property and equipment, net			607,468		599,102
Intangible assets, net			1,423,546		1,510,203
Goodwill			502,000		502,000
Other assets			16,029		16,029
Total assets of the disposal group			$	7,784,136	$	7,009,610

Current liabilities
	Accounts payable		$	1,018,950	$	960,116
	Accrued compensation		444,860		458,342
	Contract Liabilities		158,758		—
	Other accrued liabilities		—		17,920
	Total current liabilities		1,622,568		1,436,378
Deferred rent			—		2,271
Total liabilities of the disposal group			$	1,622,568	$	1,438,649

The following schedule sets forth the revenues and expenses associated with the Opto operations as well as the employees and other costs expected to be assumed by the buyer for the three and six months ended June 30, 2018 and 2017.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018		2017
	(unaudited)						(unaudited)
Revenues	$	3,849,283		$	3,010,465		$	7,273,925	$	6,462,998
Cost of revenues	2,407,467			1,953,967			4,645,616		4,059,829
Gross profit	1,441,816			1,056,498			2,628,309		2,403,169
Operating expense
Selling, general and administrative	502,047			420,270			978,174		938,367
Research, development and engineering	243,588			219,291			465,484		448,035
Total operating expense	745,635			639,561			1,443,658		1,386,402
Operating income	696,181			416,937			1,184,651		1,016,767
Other (expense)/income	(12,055		)	(3,329		)	22,703		(14,151		)
Income tax expense	(59,864		)	(140,626		)	18,499		(340,889		)
Income attributable to disposal group	$	624,262		$	272,982		$	1,225,853	$	661,727

Contingencies and Guarantees	6 Months Ended
Contingencies and Guarantees	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Guarantees	Contingencies and Guarantees We are from time to time involved in certain legal proceedings in the ordinary course of conducting our business. While the ultimate liability pursuant to these actions cannot currently be determined, we believe it is not reasonably possible that these legal proceedings will have a material adverse effect on our financial position or results of operations. In March 2018, we received a notice of claim (the "Claim") from Macom Technology Solutions, Inc. ("Macom"), who acquired our HSOR business in August 2017 pursuant to an asset purchase agreement. Under the asset purchase agreement, we agreed to indemnify Macom for certain matters, including, among other things, the collection of accounts receivable from certain major customers, and placed $4.0 million of the purchase price into an escrow account for the potential settlement of any valid indemnity claims. The notice of claim received from Macom totaled $2.0 million under various indemnity provisions. We have disputed Macom's assertion of right to payment for the matters described in the Claim. It is uncertain what amount, if any, will be owed in settlement of the Claim. We executed a non-cancelable purchase order totaling $0.5 million in the fourth quarter of 2017 and a non-cancelable purchase order totaling $1.1 million in the first quarter of 2018 for multiple shipments of tunable lasers to be delivered over an 18-month period. At June 30, 2018, approximately $0.8 million of these commitments remained and is expected to be delivered by July 30, 2019. We have entered into indemnification agreements with our officers and directors, to the extent permitted by law, pursuant to which we have agreed to reimburse the officers and directors for legal expenses in the event of litigation and regulatory matters. The terms of these indemnification agreements provide for no limitation to the maximum potential future payments. We have a directors and officers insurance policy that may, in certain instances, mitigate the potential liability and payments.

Basis of Presentation and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Nature of Operations

Unaudited Interim Financial Information

Reclassifications

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 all significant inputs and significant value drivers are observable in active markets


•	Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable

Net Income/(Loss) Per Share

Recently Issued Accounting Pronouncements

Technology Development Revenues

Revenue from time and materials contracts is recognized based on direct labor hours expended at contract billing rates plus other billable direct costs.

Products and Licensing Revenues

Recently Issued Accounting Pronouncements

Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of Disaggregation of Revenue

See details in the tables below.



		Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
		(unaudited)						(unaudited)
		Technology Development		Products and Licensing		Total		Technology Development		Products and Licensing		Total
Total Revenue by Geographic Location
	United States	$	5,466,281	$	4,992,300	$	10,458,581	$	10,103,056	$	9,837,137	$	19,940,193
	Asia	—		1,762,578		1,762,578		—		3,188,925		3,188,925
	Europe	—		1,421,279		1,421,279		—		2,607,288		2,607,288
	Canada, Central and South America	—		127,150		127,150		—		224,353		224,353
	All Others	—		3,060		3,060		—		5,060		5,060
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Major Customer Type
	Sales to the U.S. government	$	5,463,117	$	885,133	$	6,348,250	$	10,068,270	$	1,275,202	$	11,343,472
	U.S. direct commercial sales and other	3,164		4,107,167		4,110,331		34,786		8,572,516		8,607,302
	Foreign commercial sales & other	—		3,314,067		3,314,067		—		6,015,045		6,015,045
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Contract Type
	Fixed-price contracts	$	2,375,939	$	8,306,367	$	10,682,306	$	4,607,592	$	15,862,763	$	20,470,355
	Cost-type contracts	3,090,342		—		3,090,342		5,495,464		—		5,495,464
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Timing of Recognition
	Goods transferred at a point in time	$	—	$	5,938,992	$	5,938,992	$	—	$	11,813,318	$	11,813,318
	Goods/services transferred over time	5,466,281		2,367,375		7,833,656		10,103,056		4,049,445		14,152,501
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819


Total Revenue by Major Products/Services
	Technology development	$	5,466,281	$	—	$	5,466,281	$	10,103,056	$	—	$	10,103,056
	Optical test and measurement systems	—		3,971,510		3,971,510		—		7,659,519		7,659,519
	Optical components and sub-assemblies	—		3,849,283		3,849,283		—		7,273,925		7,273,925
	Other	—		485,574		485,574		—		929,319		929,319
	Total	$	5,466,281	$	8,306,367	$	13,772,648	$	10,103,056	$	15,862,763	$	25,965,819

Schedules of Impacts of Adopting Topic 606

The following tables summarize the impacts of adopting Topic 606 on our consolidated financial statements as of and for the three and six months ended June 30, 2018.



	Impact of changes in accounting policies
	As Reported			Adjustments			Balances without adoption of Topic 606
	(unaudited)			(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	33,292,800		$	—		$	33,292,800
Accounts receivable, net	9,385,772			—			9,385,772
Receivable from sale of HSOR business	4,001,833			—			4,001,833
Contract assets	3,231,770			(1,249,551		)	1,982,219
Inventory	6,906,998			725,351			7,632,349
Prepaid expenses and other current assets	1,054,984			7,175			1,062,159
Total current assets	57,874,157			(517,025		)	57,357,132
Long-term contract assets	308,093			—			308,093
Property and equipment, net	3,323,749			—			3,323,749
Intangible assets, net	3,137,083			—			3,137,083
Goodwill	502,000			—			502,000
Other assets	18,024			—			18,024
Total assets	$	65,163,106		$	(517,025	)	$	64,646,081
Liabilities and stockholders’ equity
Liabilities:
Current liabilities:
Current portion of long-term debt obligations	$	1,527,828		$	—		$	1,527,828
Current portion of capital lease obligations	34,661			—			34,661
Accounts payable	3,787,701			—			3,787,701
Accrued liabilities	5,554,481			—			5,554,481
Contract liabilities	1,400,922			(18,270		)	1,382,652
Total current liabilities	12,305,593			(18,270		)	12,287,323
Long-term deferred rent	1,109,397			—			1,109,397
Long-term debt obligations	—			—			—
Long-term capital lease obligations	54,970			—			54,970
Total liabilities	13,469,960			(18,270		)	13,451,690
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	1,322			—			1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	29,897			—			29,897
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	(2,116,640		)	—			(2,116,640		)
Additional paid-in capital	84,742,385			—			84,742,385
Accumulated deficit	(30,963,818		)	(498,755		)	(31,462,573		)
Total stockholders’ equity	51,693,146			(498,755		)	51,194,391
Total liabilities and stockholders’ equity	$	65,163,106		$	(517,025	)	$	64,646,081



	Impact of changes in accounting policies
	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As reported			Adjustments			Balances without adoption of Topic 606			As reported			Adjustments			Balances without adoption of Topic 606
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Technology development	$	5,466,281		$	—		$	5,466,281		$	10,103,056		$	—		$	10,103,056
Products and licensing	8,306,367			(231,975		)	8,074,392			15,862,763			(357,752		)	15,505,011
Total revenues	13,772,648			(231,975		)	13,540,673			25,965,819			(357,752		)	25,608,067
Cost of revenues:
Technology development	3,945,126			—			3,945,126			7,298,628			—			7,298,628
Products and licensing	4,155,054			(63,680		)	4,091,374			7,968,605			(213,025		)	7,755,580
Total cost of revenues	8,100,180			(63,680		)	8,036,500			15,267,233			(213,025		)	15,054,208
Gross profit	5,672,468			(168,295		)	5,504,173			10,698,586			(144,727		)	10,553,859
Operating expense:
Selling, general and administrative	3,767,456			—			3,767,456			7,577,072			—			7,577,072
Research, development and engineering	1,003,863			—			1,003,863			2,105,352			—			2,105,352
Total operating expense	4,771,319			—			4,771,319			9,682,424			—			9,682,424
Operating income	901,149			(168,295		)	732,854			1,016,162			(144,727		)	871,435
Other income:
Investment income	100,846			—			100,846			175,756			—			175,756
Other income	1,187			—			1,187			2,583			—			2,583
Interest expense	(33,988		)	—			(33,988		)	(75,234		)	—			(75,234		)
Total other income	68,045			—			68,045			103,105			—			103,105
Income from continuing operations before income taxes	969,194			(168,295		)	800,899			1,119,267			(144,727		)	974,540
Income tax expense	(98,133		)	—			(98,133		)	(96,736		)	—			(96,736		)
Net income from continuing operations	$	1,067,327		$	(168,295	)	$	899,032		$	1,216,003		$	(144,727	)	$	1,071,276

The cumulative effect of the changes made to our January 1, 2018 unaudited consolidated balance sheet for the adoption of Topic 606 was as follows:



	Balance at			Adjustment for			Adjusted balance at
	December 31, 2017			Topic 606			January 1, 2018
Assets:
Contract assets	$	1,778,142		$	906,197		$	2,684,339
Inventory	$	6,951,110		$	(526,306	)	$	6,424,804

Liabilities:
Contract liabilities	$	3,428,625		$	25,863		$	3,454,488

Stockholders' equity:
Accumulated deficit	$	(32,406,189	)	$	354,028		$	(32,052,161	)

The titles have been changed in the table below to be consistent with accounts currently used under the new standard.



	December 31, 2017
	As Reported		As Adopted
Accounts receivables, net	$	9,857,009	$	7,869,168
Contract assets	—		1,778,142
Long-term contract assets	—		209,699
Accrued liabilities	8,959,935		6,557,649
Contract liabilities	—		3,428,625
Deferred revenue	1,026,339		—

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Components of Discontinued Operations

The key components of net loss from discontinued operations were as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(unaudited)					(unaudited)
Net revenues	—		$	2,283,440		—		$	5,314,927
Cost of revenues	—		1,568,746			—		3,801,363
Operating expenses	—		1,013,511			—		2,303,098
Other expenses	—		—			—		—
Loss before income taxes	—		(298,817		)	—		(789,534		)
Allocated tax expense	—		—			—		—
Net loss from discontinued operations	$	—	$	(298,817	)	$	—	$	(789,534	)

The following schedule sets forth the carrying amounts of major classes of assets and liabilities associated with the transaction as of June 30, 2018 and December 31, 2017.



			June 30, 2018		December 31, 2017
Current assets			(unaudited)
	Accounts receivable		$	2,159,843	$	1,940,126
	Contract assets		1,249,551		—
	Inventory		1,736,107		2,316,329
	Prepaid expenses and other current assets		89,592		125,821
		Total current assets	5,235,093		4,382,276
Property and equipment, net			607,468		599,102
Intangible assets, net			1,423,546		1,510,203
Goodwill			502,000		502,000
Other assets			16,029		16,029
Total assets of the disposal group			$	7,784,136	$	7,009,610

Current liabilities
	Accounts payable		$	1,018,950	$	960,116
	Accrued compensation		444,860		458,342
	Contract Liabilities		158,758		—
	Other accrued liabilities		—		17,920
	Total current liabilities		1,622,568		1,436,378
Deferred rent			—		2,271
Total liabilities of the disposal group			$	1,622,568	$	1,438,649



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018		2017
	(unaudited)						(unaudited)
Revenues	$	3,849,283		$	3,010,465		$	7,273,925	$	6,462,998
Cost of revenues	2,407,467			1,953,967			4,645,616		4,059,829
Gross profit	1,441,816			1,056,498			2,628,309		2,403,169
Operating expense
Selling, general and administrative	502,047			420,270			978,174		938,367
Research, development and engineering	243,588			219,291			465,484		448,035
Total operating expense	745,635			639,561			1,443,658		1,386,402
Operating income	696,181			416,937			1,184,651		1,016,767
Other (expense)/income	(12,055		)	(3,329		)	22,703		(14,151		)
Income tax expense	(59,864		)	(140,626		)	18,499		(340,889		)
Income attributable to disposal group	$	624,262		$	272,982		$	1,225,853	$	661,727

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

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-Name Accounting Standards Codification
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+ Details

Contract Balances (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Significant Changes in Contract Balances

The following table shows the significant changes in contract balances for the six month period ending June 30, 2018:



	Contract Assets			Contract Liabilities
Opening Balance as of January 1, 2018	$	2,894,038		$	3,454,488
Revenue recognized that was included in the contract liabilities balance at the beginning of the period	—			(855,906		)
Transferred to payables from contract liabilities recognized at the beginning of the period	—			(2,041,792		)
Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period	—			844,132
Transferred to receivables from contract assets recognized at the beginning of the period	(2,245,515		)	—
Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	2,891,340			—
Balance as of June 30, 2018	$	3,539,863		$	1,400,922

Inventory (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Components of Inventory

Components of inventory were as follows:



	June 30, 2018		December 31, 2017
	(unaudited)
Finished goods	$	1,725,710	$	2,143,953
Work-in-process	644,696		578,195
Raw materials	4,536,592		4,228,962
Total inventory	$	6,906,998	$	6,951,110

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities at June 30, 2018 and December 31, 2017 consisted of the following:



	June 30, 2018		December 31, 2017
	(unaudited)
Accrued compensation	$	4,396,462	$	5,274,005
Income tax payable	371,186		403,548
Accrued professional fees	122,626		117,445
Deferred rent	148,506		144,741
Royalties	148,433		290,235
Accrued interest	8,854		—
Accrued liabilities - other	358,414		327,675
Total accrued liabilities	$	5,554,481	$	6,557,649

Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Debt Outstanding

The following table presents a summary of debt outstanding as of June 30, 2018 and December 31, 2017:



	June 30, 2018		December 31, 2017
	(unaudited)
Silicon Valley Bank Term Loan	$	1,541,667	$	2,458,333
Less: unamortized debt issuance costs	13,839		21,993
Less: current portion	1,527,828		1,833,333
Total long-term debt	$	—	$	603,007

Schedule of Remaining Principal Payments Under the Term Loan

The schedule of remaining principal payments under our Term Loans as of June 30, 2018 was as follows:



2018 (remaining six months)	916,666
2019	625,000
	$	1,541,666

Capital Stock and Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Summary of Stock Option Activity

A summary of the stock option activity for the six months ended June 30, 2018 is presented below:



	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, January 1, 2018	2,714,561		$0.61 - $6.55	$	1.88	$	2,098,195	2,590,030	$	1.89	$	2,013,034
Granted	73,212		$2.32 - $2.67	$	2.46
Exercised	(53,939	)	$0.65 - $2.46	$	2.27
Canceled	(540,487	)	$1.21 - $6.55	$	2.15
Balance, June 30, 2018	2,193,347		$0.61 - $6.23	$	1.83	$	2,911,106	2,082,354	$	1.81	$	2,812,472


(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 aggregate intrinsic value is based on the closing price of our common stock on the Nasdaq Capital Market, as applicable, on the respective dates.

Summary of Restricted Stock Awards and Units

The following is a summary of our stock unit activity under the Deferred Compensation Plan for the six months ended June 30, 2018:



	Number of Stock Units	Weighted Average Grant Date Fair Value per Share	Intrinsic Value Outstanding
Balance, January 1, 2018	466,702	$1.40	$	1,134,086
Granted	70,445	$3.00
Forfeitures	—	—
Converted	—	—
Balance, June 30, 2018	537,147	$1.61	$	1,600,698

The following table summarizes the value of our unvested restricted stock awards and restricted stock units:



	Number of Unvested Shares		Weighted Average Grant Date Fair Value		Aggregate Value of Unvested Shares
Balance, January 1, 2018	489,698		$	1.51	$	738,345
Granted	296,287		$	3.07	909,600
Vested	(312,365	)	$	2.75	(454,339		)
Balance, June 30, 2018	473,620		$	2.52	$	1,193,606

Details of Equity Transactions

The following table details our equity transactions during the six months ended June 30, 2018:



	Preferred Stock		Common Stock			Treasury Stock			Additional Paid-in Capital	Accumulated Deficit		Total
	Shares	$	Shares		$	Shares	$		$
Balance at January 1, 2018, as previously reported	1,321,514	1,322	27,283,918		29,186	1,070,904	(1,649,746	)	83,563,208	(32,406,189	)	49,537,781
Impact of change in accounting policy	—	—	—		—	—	—		—	354,028		354,028
As adjusted balance at January 1, 2018	1,321,514	1,322	27,283,918		29,186	1,070,904	(1,649,746	)	83,563,208	(32,052,161	)	49,891,809
Exercise of stock options	—	—	260,842		261	—	—		639,536	—		639,797
Share-based compensation	—	—	280,000		280	—	—		212,150	—		212,430
Non-cash compensation	—	—	129,865		130	—	—		199,871	—		200,001
Stock dividends to Carilion Clinic⁽¹⁾	—	—	—		40	—	—		127,620	(127,660	)	—
Net Income	—	—	—		—	—	—		—	1,216,003		1,216,003
Purchase of treasury stock	—	—	(182,201	)	—	182,201	(466,894	)	—	—		(466,894	)
Balance, June 30, 2018	1,321,514	1,322	27,772,424		29,897	1,253,105	(2,116,640	)	84,742,385	(30,963,818	)	51,693,146

(1)

Operating Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Revenues, Operating Income (Loss) and Assets for Reportable Segments

The table below presents assets for reportable segments:



	June 30, 2018		December 31, 2017
	(unaudited)
Total segment assets:
Technology development	$	30,704,165	$	32,011,084
Products and licensing	34,458,941		34,211,552
Total assets	$	65,163,106	$	66,222,636
Property plant and equipment, and intangible assets, technology development	$	2,204,428	$	2,361,663
Property plant and equipment, and intangible assets, products and licensing	$	4,758,404	$	4,831,671

The table below presents revenues and operating income/(loss) for reportable segments:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Revenues:
Technology development	$	5,466,281	$	4,602,272	$	10,103,056	$	8,838,375
Products and licensing	8,306,367		6,690,759		15,862,763		12,541,554
Total revenues	$	13,772,648	$	11,293,031	$	25,965,819	$	21,379,929
Technology development operating income/(loss)	$	445,042	$	32,920	$	544,274	$	(260,099	)
Products and licensing operating income/(loss)	456,107		146,683		471,888		(334,859		)
Total operating income/(loss)	$	901,149	$	179,603	$	1,016,162	$	(594,958	)
Depreciation, technology development	$	94,774	$	88,698	$	188,374	$	176,918
Depreciation, products and licensing	$	75,314	$	240,504	$	139,631	$	571,480
Amortization, technology development	$	40,856	$	26,169	$	78,062	$	74,759
Amortization, products and licensing	$	103,781	$	437,612	$	216,510	$	930,591

Subsequent Event - Sale of Luna Optoelectronics (Tables)

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Components of Discontinued Operations

The key components of net loss from discontinued operations were as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(unaudited)					(unaudited)
Net revenues	—		$	2,283,440		—		$	5,314,927
Cost of revenues	—		1,568,746			—		3,801,363
Operating expenses	—		1,013,511			—		2,303,098
Other expenses	—		—			—		—
Loss before income taxes	—		(298,817		)	—		(789,534		)
Allocated tax expense	—		—			—		—
Net loss from discontinued operations	$	—	$	(298,817	)	$	—	$	(789,534	)

The following schedule sets forth the carrying amounts of major classes of assets and liabilities associated with the transaction as of June 30, 2018 and December 31, 2017.



			June 30, 2018		December 31, 2017
Current assets			(unaudited)
	Accounts receivable		$	2,159,843	$	1,940,126
	Contract assets		1,249,551		—
	Inventory		1,736,107		2,316,329
	Prepaid expenses and other current assets		89,592		125,821
		Total current assets	5,235,093		4,382,276
Property and equipment, net			607,468		599,102
Intangible assets, net			1,423,546		1,510,203
Goodwill			502,000		502,000
Other assets			16,029		16,029
Total assets of the disposal group			$	7,784,136	$	7,009,610

Current liabilities
	Accounts payable		$	1,018,950	$	960,116
	Accrued compensation		444,860		458,342
	Contract Liabilities		158,758		—
	Other accrued liabilities		—		17,920
	Total current liabilities		1,622,568		1,436,378
Deferred rent			—		2,271
Total liabilities of the disposal group			$	1,622,568	$	1,438,649



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018		2017
	(unaudited)						(unaudited)
Revenues	$	3,849,283		$	3,010,465		$	7,273,925	$	6,462,998
Cost of revenues	2,407,467			1,953,967			4,645,616		4,059,829
Gross profit	1,441,816			1,056,498			2,628,309		2,403,169
Operating expense
Selling, general and administrative	502,047			420,270			978,174		938,367
Research, development and engineering	243,588			219,291			465,484		448,035
Total operating expense	745,635			639,561			1,443,658		1,386,402
Operating income	696,181			416,937			1,184,651		1,016,767
Other (expense)/income	(12,055		)	(3,329		)	22,703		(14,151		)
Income tax expense	(59,864		)	(140,626		)	18,499		(340,889		)
Income attributable to disposal group	$	624,262		$	272,982		$	1,225,853	$	661,727

- Definition

+ References

+ Details

Basis of Presentation and Significant Accounting Policies - Additional Information (Details) shares in Millions		3 Months Ended		6 Months Ended
	Jan. 01, 2018 USD ($)	Jun. 30, 2018 USD ($) shares	Jun. 30, 2017 shares	Jun. 30, 2018 USD ($) segment shares	Jun. 30, 2017 shares	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Number of reportable segments \| segment				2
Common stock equivalents included in diluted per share data (in shares) \| shares		4.0	5.0	3.9	4.6
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized				$ 855,906
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative adjustment to decrease accumulated deficit	$ 400,000
Technology development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining revenue performance obligations		$ 19,300,000		19,300,000
Products and licensing
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized				10,000,000
Remaining revenue performance obligations		$ 5,500,000		$ 5,500,000
Forecast \| Technology development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Performance obligation, percentage						41.00%	48.00%
Forecast \| Products and licensing
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Performance obligation, percentage						28.00%	69.00%

Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements - Effect on Balance Sheet Items (Details) - USD ($)	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Contract assets	$ 3,231,770	$ 2,684,339	$ 1,778,142
Inventory	6,906,998	6,424,804	6,951,110
Liabilities:
Contract liabilities	1,400,922	3,454,488	3,454,488
Stockholders’ equity:
Accumulated deficit	(30,963,818)	$ (32,052,161)	(32,406,189)
Adjustments \| Accounting Standards Update 2014-09
Assets
Contract assets	(1,249,551)		906,197
Inventory	725,351		(526,306)
Liabilities:
Contract liabilities			25,863
Stockholders’ equity:
Accumulated deficit	(498,755)		354,028
As Reported
Assets
Contract assets	1,982,219		0
Inventory	7,632,349
Liabilities:
Contract liabilities			3,428,625
Stockholders’ equity:
Accumulated deficit	$ (31,462,573)		(32,406,189)
As Reported \| Accounting Standards Update 2014-09
Assets
Contract assets			1,778,142
Inventory			$ 6,951,110

Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements - Effect on Contract Assets and Liabilities (Details) - USD ($)	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 9,385,772		$ 7,869,168
Contract assets	3,231,770	$ 2,684,339	1,778,142
Long-term contract assets	308,093		209,699
Accrued liabilities	5,554,481		6,557,649
Contract liabilities	1,400,922		3,428,625
Deferred revenue			0
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	9,385,772		9,857,009
Contract assets	1,982,219		0
Long-term contract assets	308,093		0
Accrued liabilities	5,554,481		8,959,935
Contract liabilities	$ 1,382,652		0
Deferred revenue			$ 1,026,339

Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 13,772,648	$ 11,293,031	$ 25,965,819	$ 21,379,929
Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,466,281		10,103,056
Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	8,306,367		15,862,763
Technology Development
Disaggregation of Revenue [Line Items]
Total revenues	5,466,281		10,103,056
Technology Development \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,466,281		10,103,056
Technology Development \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Optical Test and Measurement Systems
Disaggregation of Revenue [Line Items]
Total revenues	3,971,510		7,659,519
Optical Test and Measurement Systems \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Optical Test and Measurement Systems \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	3,971,510		7,659,519
Optical Components and Sub-assemblies
Disaggregation of Revenue [Line Items]
Total revenues	3,849,283		7,273,925
Optical Components and Sub-assemblies \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Optical Components and Sub-assemblies \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	3,849,283		7,273,925
Other
Disaggregation of Revenue [Line Items]
Total revenues	485,574		929,319
Other \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Other \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	485,574		929,319
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	5,938,992		11,813,318
Goods transferred at a point in time \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Goods transferred at a point in time \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	5,938,992		11,813,318
Goods/services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues	7,833,656		14,152,501
Goods/services transferred over time \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,466,281		10,103,056
Goods/services transferred over time \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	2,367,375		4,049,445
Fixed-price contracts
Disaggregation of Revenue [Line Items]
Total revenues	10,682,306		20,470,355
Fixed-price contracts \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	2,375,939		4,607,592
Fixed-price contracts \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	8,306,367		15,862,763
Cost-type contracts
Disaggregation of Revenue [Line Items]
Total revenues	3,090,342		5,495,464
Cost-type contracts \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	3,090,342		5,495,464
Cost-type contracts \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Sales to the U.S. government
Disaggregation of Revenue [Line Items]
Total revenues	6,348,250		11,343,472
Sales to the U.S. government \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,463,117		10,068,270
Sales to the U.S. government \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	885,133		1,275,202
U.S. direct commercial sales and other
Disaggregation of Revenue [Line Items]
Total revenues	4,110,331		8,607,302
U.S. direct commercial sales and other \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	3,164		34,786
U.S. direct commercial sales and other \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	4,107,167		8,572,516
Foreign commercial sales & other
Disaggregation of Revenue [Line Items]
Total revenues	3,314,067		6,015,045
Foreign commercial sales & other \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Foreign commercial sales & other \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	3,314,067		6,015,045
United States
Disaggregation of Revenue [Line Items]
Total revenues	10,458,581		19,940,193
United States \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	5,466,281		10,103,056
United States \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	4,992,300		9,837,137
Asia
Disaggregation of Revenue [Line Items]
Total revenues	1,762,578		3,188,925
Asia \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Asia \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	1,762,578		3,188,925
Europe
Disaggregation of Revenue [Line Items]
Total revenues	1,421,279		2,607,288
Europe \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Europe \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	1,421,279		2,607,288
Canada, Central and South America
Disaggregation of Revenue [Line Items]
Total revenues	127,150		224,353
Canada, Central and South America \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
Canada, Central and South America \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	127,150		224,353
All Others
Disaggregation of Revenue [Line Items]
Total revenues	3,060		5,060
All Others \| Technology development
Disaggregation of Revenue [Line Items]
Total revenues	0		0
All Others \| Products and licensing
Disaggregation of Revenue [Line Items]
Total revenues	$ 3,060		$ 5,060

Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements - Consolidated Balance Sheet (Details) - USD ($)	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 33,292,800		$ 36,981,533	$ 10,291,255	$ 12,802,458
Accounts receivable, net	9,385,772		7,869,168
Receivable from sale of HSOR business	4,001,833		4,000,976
Contract assets	3,231,770	$ 2,684,339	1,778,142
Inventory	6,906,998	6,424,804	6,951,110
Prepaid expenses and other current assets	1,054,984		1,220,650
Total current assets	57,874,157		58,801,579
Long-term contract assets	308,093		209,699
Property and equipment, net	3,323,749		3,453,741
Intangible assets, net	3,137,083		3,237,593
Goodwill	502,000		502,000
Other assets	18,024		18,024
Total assets	65,163,106		66,222,636
Current liabilities:
Current portion of long-term debt obligations	1,527,828		1,833,333
Current portion of capital lease obligations	34,661		43,665
Accounts payable	3,787,701		2,962,863
Accrued liabilities	5,554,481		6,557,649
Contract liabilities	1,400,922		3,428,625
Total current liabilities	12,305,593		14,826,135
Long-term deferred rent	1,109,397		1,184,438
Long-term debt obligations	0		603,007
Long-term capital lease obligations	54,970		71,275
Total liabilities	13,469,960		16,684,855
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	1,322		1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	29,897		29,186
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	(2,116,640)		(1,649,746)
Additional paid-in capital	84,742,385		83,563,208
Accumulated deficit	(30,963,818)	(32,052,161)	(32,406,189)
Total stockholders’ equity	51,693,146	$ 49,891,809	49,537,781
Total liabilities and stockholders’ equity	$ 65,163,106		$ 66,222,636
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)	29,025,529		28,354,822
Common stock, outstanding (in shares)	27,772,424		27,283,918
Treasury Stock (in shares)	1,253,105		1,070,904
Balances without adoption of Topic 606
Current assets:
Cash and cash equivalents	$ 33,292,800
Accounts receivable, net	9,385,772		$ 9,857,009
Receivable from sale of HSOR business	4,001,833
Contract assets	1,982,219		0
Inventory	7,632,349
Prepaid expenses and other current assets	1,062,159
Total current assets	57,357,132
Long-term contract assets	308,093		0
Property and equipment, net	3,323,749
Intangible assets, net	3,137,083
Goodwill	502,000
Other assets	18,024
Total assets	64,646,081
Current liabilities:
Current portion of long-term debt obligations	1,527,828
Current portion of capital lease obligations	34,661
Accounts payable	3,787,701
Accrued liabilities	5,554,481		8,959,935
Contract liabilities	1,382,652		0
Total current liabilities	12,287,323
Long-term deferred rent	1,109,397
Long-term debt obligations	0
Long-term capital lease obligations	54,970
Total liabilities	13,451,690
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	1,322
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	29,897
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	(2,116,640)
Additional paid-in capital	84,742,385
Accumulated deficit	(31,462,573)		(32,406,189)
Total stockholders’ equity	51,194,391
Total liabilities and stockholders’ equity	64,646,081
Accounting Standards Update 2014-09 \| Adjustments
Current assets:
Cash and cash equivalents	0
Accounts receivable, net	0
Receivable from sale of HSOR business	0
Contract assets	(1,249,551)		906,197
Inventory	725,351		(526,306)
Prepaid expenses and other current assets	7,175
Total current assets	(517,025)
Long-term contract assets	0
Property and equipment, net	0
Intangible assets, net	0
Goodwill	0
Other assets	0
Total assets	(517,025)
Current liabilities:
Current portion of long-term debt obligations	0
Current portion of capital lease obligations	0
Accounts payable	0
Accrued liabilities	0
Contract liabilities	(18,270)
Total current liabilities	(18,270)
Long-term deferred rent	0
Long-term debt obligations	0
Long-term capital lease obligations	0
Total liabilities	(18,270)
Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at June 30, 2018 and December 31, 2017	0
Common stock, par value $0.001, 100,000,000 shares authorized, 29,025,529 and 28,354,822 shares issued, 27,772,424 and 27,283,918 shares outstanding at June 30, 2018 and December 31, 2017	0
Treasury stock at cost, 1,253,105 and 1,070,904 shares at June 30, 2018 and December 31, 2017	0
Additional paid-in capital	0
Accumulated deficit	(498,755)		354,028
Total stockholders’ equity	(498,755)
Total liabilities and stockholders’ equity	$ (517,025)
Accounting Standards Update 2014-09 \| Balances without adoption of Topic 606
Current assets:
Contract assets			1,778,142
Inventory			$ 6,951,110

Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements - Consolidated Statement of Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 13,772,648	$ 11,293,031	$ 25,965,819	$ 21,379,929
Cost of revenues:
Total cost of revenues	8,100,180	6,926,821	15,267,233	13,137,336
Gross profit	5,672,468	4,366,210	10,698,586	8,242,593
Operating expense:
Selling, general and administrative	3,767,456	3,367,716	7,577,072	7,089,889
Research, development and engineering	1,003,863	818,891	2,105,352	1,747,662
Total operating expense	4,771,319	4,186,607	9,682,424	8,837,551
Operating income/(loss)	901,149	179,603	1,016,162	(594,958)
Other income/(expense):
Investment income	100,846	0	175,756	0
Other income/(expense)	1,187	(1,225)	2,583	(869)
Interest expense	(33,988)	(60,386)	(75,234)	(124,760)
Total other income/(expense)	68,045	(61,611)	103,105	(125,629)
Income/(loss) from continuing operations before income taxes	969,194	117,992	1,119,267	(720,587)
Income tax (benefit)/expense	(98,133)	40,937	(96,736)	67,627
Net income/(loss) from continuing operations	1,067,327	77,055	1,216,003	(788,214)
Balances without adoption of Topic 606
Revenues:
Total revenues	13,540,673		25,608,067
Cost of revenues:
Total cost of revenues	8,036,500		15,054,208
Gross profit	5,504,173		10,553,859
Operating expense:
Selling, general and administrative	3,767,456		7,577,072
Research, development and engineering	1,003,863		2,105,352
Total operating expense	4,771,319		9,682,424
Operating income/(loss)	732,854		871,435
Other income/(expense):
Investment income	100,846		175,756
Other income/(expense)	1,187		2,583
Interest expense	(33,988)		(75,234)
Total other income/(expense)	68,045		103,105
Income/(loss) from continuing operations before income taxes	800,899		974,540
Income tax (benefit)/expense	(98,133)		(96,736)
Net income/(loss) from continuing operations	899,032		1,071,276
Accounting Standards Update 2014-09 \| Adjustments
Revenues:
Total revenues	(231,975)		(357,752)
Cost of revenues:
Total cost of revenues	(63,680)		(213,025)
Gross profit	(168,295)		(144,727)
Operating expense:
Selling, general and administrative	0		0
Research, development and engineering	0		0
Total operating expense	0		0
Operating income/(loss)	(168,295)		(144,727)
Other income/(expense):
Investment income	0		0
Other income/(expense)	0		0
Interest expense	0		0
Total other income/(expense)	0		0
Income/(loss) from continuing operations before income taxes	(168,295)		(144,727)
Income tax (benefit)/expense	0		0
Net income/(loss) from continuing operations	(168,295)		(144,727)
Technology development
Revenues:
Total revenues	5,466,281	4,602,272	10,103,056	8,838,375
Cost of revenues:
Total cost of revenues	3,945,126	3,443,954	7,298,628	6,553,423
Technology development \| Balances without adoption of Topic 606
Revenues:
Total revenues	5,466,281		10,103,056
Cost of revenues:
Total cost of revenues	3,945,126		7,298,628
Technology development \| Accounting Standards Update 2014-09 \| Adjustments
Revenues:
Total revenues	0		0
Cost of revenues:
Total cost of revenues	0		0
Products and licensing
Revenues:
Total revenues	8,306,367	6,690,759	15,862,763	12,541,554
Cost of revenues:
Total cost of revenues	4,155,054	$ 3,482,867	7,968,605	$ 6,583,913
Products and licensing \| Balances without adoption of Topic 606
Revenues:
Total revenues	8,074,392		15,505,011
Cost of revenues:
Total cost of revenues	4,091,374		7,755,580
Products and licensing \| Accounting Standards Update 2014-09 \| Adjustments
Revenues:
Total revenues	(231,975)		(357,752)
Cost of revenues:
Total cost of revenues	$ (63,680)		$ (213,025)

Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Aug. 09, 2017	Jun. 30, 2017	Jun. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash flows used in operating activities for discontinued operations			$ (1.0)
Cash flows used in investing activities for discontinued operations			$ (0.8)
High Speed Optical Receivers Business \| Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase price	$ 33.5
Proceeds from sales of discontinued operations	29.5
Placed in escrow	$ 4.0
High Speed Optical Receivers Business \| Disposed of by Sale \| Product Concentration Risk \| Revenues
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration risk		16.80%	17.00%
High Speed Optical Receivers Business \| Disposed of by Sale \| Product Concentration Risk \| Cost of Revenues
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration risk		18.50%	19.90%

Discontinued Operations - Components of Income from Discontinued Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Net revenues	$ 0	$ 2,283,440	$ 0	$ 5,314,927
Cost of revenues	0	1,568,746	0	3,801,363
Operating expenses	0	1,013,511	0	2,303,098
Other expenses	0	0	0	0
Loss before income taxes	0	(298,817)	0	(789,534)
Allocated tax expense	0	0	0	0
Net loss from discontinued operations	$ 0	$ (298,817)	$ 0	$ (789,534)

- Definition

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

+ References + Details

Contract Balances (Details)	6 Months Ended
Contract Balances (Details)	Jun. 30, 2018 USD ($)
Contract Assets
Opening Balance as of January 1, 2018	$ 2,894,038
Transferred to receivables from contract assets recognized at the beginning of the period	(2,245,515)
Increases as a result of cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	2,891,340
Balance as of June 30, 2018	3,539,863
Contract Liabilities
Opening Balance as of January 1, 2018	3,454,488
Revenue recognized that was included in the contract liabilities balance at the beginning of the period	(855,906)
Transferred to payables from contract liabilities recognized at the beginning of the period	(2,041,792)
Increases due to cash received or adjustment of estimates, excluding amounts recognized as revenue during the period	844,132
Balance as of June 30, 2018	$ 1,400,922

Inventory (Details) - USD ($)	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 1,725,710		$ 2,143,953
Work-in-process	644,696		578,195
Raw materials	4,536,592		4,228,962
Total inventory	$ 6,906,998	$ 6,424,804	$ 6,951,110

Accrued Liabilities (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation	$ 4,396,462	$ 5,274,005
Income tax payable	371,186	403,548
Accrued professional fees	122,626	117,445
Deferred rent	148,506	144,741
Royalties	148,433	290,235
Accrued interest	8,854	0
Accrued liabilities - other	358,414	327,675
Total accrued liabilities	$ 5,554,481	$ 6,557,649

Debt - Additional Information (Details)		1 Months Ended
Debt - Additional Information (Details)	May 08, 2015 USD ($) installment	Sep. 30, 2015 USD ($) installment	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Aggregate term loan balance			$ 1,541,666	$ 2,458,333
Term Loan \| Silicon Valley Bank
Debt Instrument [Line Items]
Debt, face amount	$ 6,000,000.0
Debt, number of monthly payment \| installment	48
Early termination fee	2.00%
Effective interest rate			7.00%
Term Loan \| Silicon Valley Bank \| Prime Rate
Debt Instrument [Line Items]
Debt, additional interest above prime rate	2.00%
Term Loan \| Silicon Valley Bank \| Sixth Loan Modification Agreement
Debt Instrument [Line Items]
Debt, monthly principal payments	$ 125,000
Term Loan \| Silicon Valley Bank \| Seventh Loan Modification Agreement
Debt Instrument [Line Items]
Debt, face amount		$ 1,000,000
Debt, number of monthly payment \| installment		35
Debt, monthly principal payments		$ 27,778
Debt, additional interest above prime rate		2.00%
Minimum cash balance		$ 4,000,000
Liquidity covenant component, accounts receivable percentage		60.00%
Liquidity covenant component, outstanding principal loan balance multiplier		1.5
Term Loan One \| Term Loan
Debt Instrument [Line Items]
Aggregate term loan balance			$ 200,000	300,000
Term Loan Two \| Term Loan
Debt Instrument [Line Items]
Aggregate term loan balance			$ 1,400,000	$ 2,100,000

Debt - Summary of Debt Outstanding (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Silicon Valley Bank Term Loan	$ 1,541,666	$ 2,458,333
Less: unamortized debt issuance costs	13,839	21,993
Less: current portion	1,527,828	1,833,333
Long-term debt obligations	$ 0	$ 603,007

Debt - Remaining Principal Payments Under the Term Loan (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2018 (remaining six months)	$ 916,666
2019	625,000
Silicon Valley Bank Term Loan	$ 1,541,666	$ 2,458,333

Capital Stock and Share-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Equity [Abstract]
Expected dividend yield		0.00%
Aggregate outstanding stock options (in shares)	2,193,347	2,193,347		2,714,561
Outstanding stock options, weighted average remaining contractual term		3 years 12 months
Exercisable stock options (in shares)	2,082,354	2,082,354		2,590,030
Exercisable stock options, weighted average remaining contractual term		3 years 8 months
Fair value of shares vested	$ 6,200,000	$ 6,200,000
Fair value of options exercised during period	172,285
Share-based compensation		212,149	$ 321,756
Stock-based compensation expense not yet recognized	$ 200,000	$ 200,000
Weighted average remaining service period		3 years 8 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		296,287
Shares vested (in shares)		312,365
Shares not yet vested (in shares)	473,620	473,620		489,698
Employees \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		280,000
Shares vested (in shares)		182,500
Directors \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		16,287
Shares vested (in shares)		129,865
Maximum \| Directors \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, earlier of grant anniversary, or annual stockholders' meeting		1 year
Employee Director Compensation Plan \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares not yet vested (in shares)	48,859	48,859

Capital Stock and Share-Based Compensation - Summary of Activity of Equity Incentive Plans (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Options Outstanding, Number of Shares
Beginning Balance (shares)	2,714,561
Granted (in shares)	73,212
Exercised (in shares)	(53,939)
Canceled (in shares)	(540,487)
Ending Balance (shares)	2,193,347	2,714,561
Price per Share Range
Outstanding, lower limit (in dollars per share)	$ 0.61	$ 0.61
Outstanding, upper limit (in dollars per share)	6.23	6.55
Granted, lower limit (in dollars per share)	2.32
Granted, upper limit (in dollars per share)	2.67
Exercised, lower limit (in dollars per share)	0.65
Exercised, upper limit (in dollars per share)	2.46
Canceled, lower limit (in dollars per share)	1.21
Canceled, upper limit (in dollars per share)	6.55
Options Outstanding, Weighted Average Exercise Price
Beginning Balance (in dollars per share)	1.88
Granted (in dollars per share)	2.46
Exercised (in dollars per share)	2.27
Canceled (in dollars per share)	2.15
Ending Balance (in dollars per share)	$ 1.83	$ 1.88
Additional Disclosures
Options Outstanding, Aggregate Intrinsic Value	$ 2,911,106	$ 2,098,195
Options Exercisable, Number of Shares (in shares)	2,082,354	2,590,030
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.81	$ 1.89
Options Exercisable, Aggregate Intrinsic Value	$ 2,812,472	$ 2,013,034

Capital Stock and Share-Based Compensation - Summary of Restricted Awards (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) \| shares	489,698
Granted (in shares) \| shares	296,287
Vested (in shares) \| shares	(312,365)
Ending balance (in shares) \| shares	473,620
Weighted Average Grant Date Fair Value
Beginning balance (in usd per share) \| $ / shares	$ 1.51
Granted (in usd per share) \| $ / shares	3.07
Vested (in usd per share) \| $ / shares	2.75
Ending balance (in usd per share) \| $ / shares	$ 2.52
Aggregate Value of Unvested Shares
Aggregate value of shares, Beginning balance \| $	$ 738,345
Aggregate value of shares, Granted \| $	909,600
Aggregate value of shares, Vested \| $	(454,339)
Aggregate value of shares, Ending balance \| $	$ 1,193,606

Capital Stock and Share-Based Compensation - Summary of Restricted Stock Units (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Weighted Average Grant Date Fair Value
Beginning balance (in usd per share)	$ 1.51
Granted (in usd per share)	3.07
Ending balance (in usd per share)	$ 2.52
Intrinsic value, outstanding	$ 1,193,606	$ 738,345
Restricted Stock Units (RSUs) \| Employee Director Compensation Plan
Number of Stock Units
Beginning balance (in shares)	466,702
Granted (in shares)	70,445
Forfeitures (in shares)	0
Converted (in shares)	0
Ending balance (in shares)	537,147
Weighted Average Grant Date Fair Value
Beginning balance (in usd per share)	$ 1.40
Granted (in usd per share)	3.00
Forfeitures (in usd per share)	0.00
Converted (in usd per share)	0.00
Ending balance (in usd per share)	$ 1.61
Intrinsic value, outstanding	$ 1,600,698	$ 1,134,086

Capital Stock and Share-Based Compensation - Equity Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended		10 Months Ended	13 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	May 31, 2017	Jun. 30, 2018	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity
Preferred stock beginning balance (in shares)			1,321,514
Common stock beginning balance (in shares)			27,283,918
Treasury stock beginning balance (in shares)			1,070,904
Stockholder's equity beginning balance			$ 49,537,781
Impact of change in accounting policy, Preferred stock balance (in shares)	1,321,514		1,321,514		1,321,514		1,321,514
Impact of change in accounting policy, Common stock balance (in shares)	27,772,424		27,283,918		27,772,424		27,772,424
Impact of change in accounting policy, Treasury stock balance (in shares)	1,253,105		1,070,904		1,253,105		1,253,105
Impact of change in accounting policy, Stockholder's equity adjusted balance	$ 51,693,146		$ 49,537,781		$ 51,693,146		$ 51,693,146	$ 49,891,809
Exercise of stock options (in shares)			53,939
Exercise of stock options			$ 639,797
Share-based compensation			212,430
Non-cash compensation			200,001
Stock dividends to Carilion Clinic			0
Net Income	$ 1,067,327	$ (221,762)	1,216,003	$ (1,577,748)
Purchase of treasury stock (in shares)					(565,629)	(205,500)
Purchase of treasury stock			$ (466,894)
Preferred stock ending balance (in shares)	1,321,514		1,321,514		1,321,514
Common stock ending balance (in shares)	27,772,424		27,772,424		27,772,424
Treasury stock ending balance (in shares)	1,253,105		1,253,105		1,253,105
Stockholder's equity ending balance	$ 51,693,146		$ 51,693,146		$ 51,693,146
Carilion Clinic \| Series A Preferred Stock
Increase (Decrease) in Stockholders' Equity
Accrued dividends							$ 1,287,991
Stock dividends for preferred shareholders (in shares)			671,339
Preferred Stock
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Preferred stock balance (in shares)	1,321,514		1,321,514		1,321,514		1,321,514	1,321,514
Impact of change in accounting policy, Stockholder's equity adjusted balance	$ 1,322		$ 1,322		$ 1,322		$ 1,322	$ 1,322
Exercise of stock options (in shares)			0
Exercise of stock options			$ 0
Share-based compensation (in shares)			0
Share-based compensation			$ 0
Non-cash compensation (in shares)			0
Non-cash compensation			$ 0
Stock dividends to Carilion Clinic (in shares)			0
Stock dividends to Carilion Clinic			$ 0
Net Income			$ 0
Purchase of treasury stock (in shares)			0
Purchase of treasury stock			$ 0
Preferred stock ending balance (in shares)	1,321,514		1,321,514		1,321,514
Stockholder's equity ending balance	$ 1,322		$ 1,322		$ 1,322
Common Stock
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Common stock balance (in shares)	27,772,424		27,772,424		27,772,424		27,772,424	27,283,918
Impact of change in accounting policy, Stockholder's equity adjusted balance	$ 29,897		$ 29,897		$ 29,897		$ 29,897	$ 29,186
Exercise of stock options (in shares)			260,842
Exercise of stock options			$ 261
Share-based compensation (in shares)			280,000
Share-based compensation			$ 280
Non-cash compensation (in shares)			129,865
Non-cash compensation			$ 130
Stock dividends to Carilion Clinic (in shares)			0
Stock dividends to Carilion Clinic			$ 40
Net Income			$ 0
Purchase of treasury stock (in shares)			(182,201)
Purchase of treasury stock			$ 0
Common stock ending balance (in shares)	27,772,424		27,772,424		27,772,424
Stockholder's equity ending balance	$ 29,897		$ 29,897		$ 29,897
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Treasury stock balance (in shares)	1,253,105		1,253,105		1,253,105		1,253,105	1,070,904
Impact of change in accounting policy, Stockholder's equity adjusted balance	$ (2,116,640)		$ (2,116,640)		$ (2,116,640)		$ (2,116,640)	$ (1,649,746)
Exercise of stock options (in shares)			0
Exercise of stock options			$ 0
Share-based compensation (in shares)			0
Share-based compensation			$ 0
Non-cash compensation (in shares)			0
Non-cash compensation			$ 0
Stock dividends to Carilion Clinic (in shares)			0
Stock dividends to Carilion Clinic			$ 0
Net Income			$ 0
Purchase of treasury stock (in shares)			182,201
Purchase of treasury stock			$ (466,894)
Treasury stock ending balance (in shares)	1,253,105		1,253,105		1,253,105
Stockholder's equity ending balance	$ (2,116,640)		$ (2,116,640)		$ (2,116,640)
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Stockholder's equity adjusted balance	84,742,385		84,742,385		84,742,385		84,742,385	83,563,208
Exercise of stock options			639,536
Share-based compensation			212,150
Non-cash compensation			199,871
Stock dividends to Carilion Clinic			127,620
Net Income			0
Purchase of treasury stock			0
Stockholder's equity ending balance	84,742,385		84,742,385		84,742,385
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy, Stockholder's equity adjusted balance	(30,963,818)		(30,963,818)		(30,963,818)		$ (30,963,818)	$ (32,052,161)
Exercise of stock options			0
Share-based compensation			0
Non-cash compensation			0
Stock dividends to Carilion Clinic			(127,660)
Purchase of treasury stock			0
Stockholder's equity ending balance	$ (30,963,818)		(30,963,818)		$ (30,963,818)
Scenario, Previously Reported
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			49,537,781
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 49,537,781
Scenario, Previously Reported \| Preferred Stock
Increase (Decrease) in Stockholders' Equity
Preferred stock beginning balance (in shares)			1,321,514
Stockholder's equity beginning balance			$ 1,322
Impact of change in accounting policy, Preferred stock balance (in shares)			1,321,514
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 1,322
Scenario, Previously Reported \| Common Stock
Increase (Decrease) in Stockholders' Equity
Common stock beginning balance (in shares)			27,283,918
Stockholder's equity beginning balance			$ 29,186
Impact of change in accounting policy, Common stock balance (in shares)			27,283,918
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 29,186
Scenario, Previously Reported \| Treasury Stock
Increase (Decrease) in Stockholders' Equity
Treasury stock beginning balance (in shares)			1,070,904
Stockholder's equity beginning balance			$ (1,649,746)
Impact of change in accounting policy, Treasury stock balance (in shares)			1,070,904
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ (1,649,746)
Scenario, Previously Reported \| Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			83,563,208
Impact of change in accounting policy, Stockholder's equity adjusted balance			83,563,208
Scenario, Previously Reported \| Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			(32,406,189)
Impact of change in accounting policy, Stockholder's equity adjusted balance			(32,406,189)
Restatement Adjustment
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			354,028
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 354,028
Restatement Adjustment \| Preferred Stock
Increase (Decrease) in Stockholders' Equity
Preferred stock beginning balance (in shares)			0
Stockholder's equity beginning balance			$ 0
Impact of change in accounting policy, Preferred stock balance (in shares)			0
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 0
Restatement Adjustment \| Common Stock
Increase (Decrease) in Stockholders' Equity
Common stock beginning balance (in shares)			0
Stockholder's equity beginning balance			$ 0
Impact of change in accounting policy, Common stock balance (in shares)			0
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 0
Restatement Adjustment \| Treasury Stock
Increase (Decrease) in Stockholders' Equity
Treasury stock beginning balance (in shares)			0
Stockholder's equity beginning balance			$ 0
Impact of change in accounting policy, Treasury stock balance (in shares)			0
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 0
Restatement Adjustment \| Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			0
Impact of change in accounting policy, Stockholder's equity adjusted balance			0
Restatement Adjustment \| Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Stockholder's equity beginning balance			354,028
Impact of change in accounting policy, Stockholder's equity adjusted balance			$ 354,028

Capital Stock and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($)	10 Months Ended	13 Months Ended
	Jun. 30, 2018	May 31, 2017	Sep. 30, 2017	May 31, 2016
Equity [Abstract]
Authorized share repurchase amount			$ 2,000,000.0	$ 2,000,000
Treasury shares repurchased (in shares)	565,629	205,500
Amount of stock repurchased	$ 1,100,000	$ 200,000

Operating Segments - Additional Information (Details)	3 Months Ended		6 Months Ended
Operating Segments - Additional Information (Details)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment			2
Revenues \| Government Contracts Concentration Risk \| U.S. Government
Segment Reporting Information [Line Items]
Percentage of total consolidated revenues by customer	46.00%	45.00%	44.00%	45.00%
Revenues \| Geographic Concentration Risk \| Outside of the United States
Segment Reporting Information [Line Items]
Percentage of total consolidated revenues by customer	24.00%	23.00%	23.00%	21.00%
Products and licensing
Segment Reporting Information [Line Items]
Depreciation	$ 75,314	$ 240,504	$ 139,631	$ 571,480
Amortization	$ 103,781	$ 437,612	$ 216,510	930,591
Products and licensing \| Discontinued Operations
Segment Reporting Information [Line Items]
Depreciation				400,000
Amortization				$ 700,000

Operating Segments - Revenues and Operating Income (Loss) for Reportable Segments Not Including Discontinued Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 13,772,648	$ 11,293,031	$ 25,965,819	$ 21,379,929
Total operating income (loss)	901,149	179,603	1,016,162	(594,958)
Technology development
Revenues:
Total revenues	5,466,281		10,103,056
Total operating income (loss)	445,042	32,920	544,274	(260,099)
Depreciation	94,774	88,698	188,374	176,918
Amortization	40,856	26,169	78,062	74,759
Products and licensing
Revenues:
Total revenues	8,306,367		15,862,763
Total operating income (loss)	456,107	146,683	471,888	(334,859)
Depreciation	75,314	240,504	139,631	571,480
Amortization	103,781	437,612	216,510	930,591
Technology development
Revenues:
Total revenues	5,466,281	4,602,272	10,103,056	8,838,375
Products and licensing
Revenues:
Total revenues	$ 8,306,367	$ 6,690,759	$ 15,862,763	$ 12,541,554

Operating Segments - Assets for Reportable Segments (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Total segment assets:
Total assets	$ 65,163,106	$ 66,222,636
Property plant and equipment, and intangible assets	3,323,749	3,453,741
Technology development
Total segment assets:
Total assets	30,704,165	32,011,084
Property plant and equipment, and intangible assets	2,204,428	2,361,663
Products and licensing
Total segment assets:
Total assets	34,458,941	34,211,552
Property plant and equipment, and intangible assets	$ 4,758,404	$ 4,831,671

Subsequent Event - Sale of Luna Optoelectronics - Additional Information (Details) - Disposed of by Sale - Optoelectronic Components and Subassemblies - Subsequent Event - USD ($) $ in Millions	Jul. 31, 2018	Jul. 30, 2018
Subsequent Event [Line Items]
Initial purchase price		$ 18.5
Proceeds from sales of discontinued operations	$ 17.5
Contingent consideration on discontinued operation		$ 1.0

Subsequent Event - Sale of Luna Optoelectronics - Balance Sheet Amounts (Details) - Optoelectronic Components and Subassemblies - Disposed of by Sale - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Accounts receivable	$ 2,159,843	$ 1,940,126
Contract assets	1,249,551	0
Inventory	1,736,107	2,316,329
Prepaid expenses and other current assets	89,592	125,821
Total current assets	5,235,093	4,382,276
Property and equipment, net	607,468	599,102
Intangible assets, net	1,423,546	1,510,203
Goodwill	502,000	502,000
Other assets	16,029	16,029
Total assets of the disposal group	7,784,136	7,009,610
Current liabilities
Accounts payable	1,018,950	960,116
Accrued compensation	444,860	458,342
Contract Liabilities	158,758	0
Other accrued liabilities	0	17,920
Total current liabilities	1,622,568	1,436,378
Deferred rent	0	2,271
Total liabilities of the disposal group	$ 1,622,568	$ 1,438,649

Subsequent Event - Sale of Luna Optoelectronics - Income Statement Amounts (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Subsequent Event [Line Items]
Net revenues	$ 0	$ 2,283,440	$ 0	$ 5,314,927
Cost of revenues	0	1,568,746	0	3,801,363
Operating expense
Total operating expense	0	1,013,511	0	2,303,098
Income tax expense	0	0	0	0
Income attributable to disposal group	0	(298,817)	0	(789,534)
Optoelectronic Components and Subassemblies \| Disposed of by Sale
Subsequent Event [Line Items]
Net revenues	3,849,283	3,010,465	7,273,925	6,462,998
Cost of revenues	2,407,467	1,953,967	4,645,616	4,059,829
Gross profit	1,441,816	1,056,498	2,628,309	2,403,169
Operating expense
Selling, general and administrative	502,047	420,270	978,174	938,367
Research, development and engineering	243,588	219,291	465,484	448,035
Total operating expense	745,635	639,561	1,443,658	1,386,402
Operating income	696,181	416,937	1,184,651	1,016,767
Other expenses	(12,055)	(3,329)	22,703	(14,151)
Income tax expense	(59,864)	(140,626)	18,499	(340,889)
Income attributable to disposal group	$ 624,262	$ 272,982	$ 1,225,853	$ 661,727

Contingencies and Guarantees (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Aug. 09, 2017
Loss Contingencies [Line Items]
Non-cancelable purchase order delivery period	18 months
Tunable Lasers
Loss Contingencies [Line Items]
Non-cancelable purchase order commitment	$ 1.1		$ 0.5
Non-cancelable purchase order commitment remaining		$ 0.8
Customer Concentration Risk \| Macom
Loss Contingencies [Line Items]
Accounts receivable	2.0
Disposed of by Sale \| High Speed Optical Receivers Business
Loss Contingencies [Line Items]
Escrow deposits related to indemnity claims				$ 4.0
Disposed of by Sale \| High Speed Optical Receivers Business \| Macom
Loss Contingencies [Line Items]
Escrow deposits related to indemnity claims	$ 4.0