Luna Innovations to Delay Release of Fourth Quarter and Full Year 2023 Financial Results

Luna Innovations Incorporated (NASDAQ: LUNA) (the “Company”), a global leader in advanced fiber optic-based technology, today announced it will delay the release of its fourth quarter and fiscal year 2023 financial results and the subsequent conference call.

A Special Committee of the Company’s Board of Directors is conducting an independent review, with the assistance of external legal and financial advisors, of certain transactions for which revenue was recognized in the second and third quarters of 2023 that did not qualify for revenue recognition under U.S. generally accepted accounting principles. The Special Committee is examining the circumstances surrounding these issues and is evaluating, among other things, the Company’s disclosure controls and internal control over financial reporting and whether changes in accounting policies or other policies are necessary. The Company currently anticipates reporting material weaknesses in internal controls related to evaluating customer arrangements for proper revenue recognition and other controls and will be working to remediate these issues.

The Company also announced it has filed a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission relating to the Company’s Annual Report on its Form 10-K for the year ended December 31, 2023 (the “Annual Report”), as additional time is needed to complete tasks and steps necessary to prepare and finalize the annual financial statements and other disclosures required to be included in the Annual Report, as well as to complete the ongoing review of recognition of revenue referenced above. There can be no assurance as to how long the review will take or when the Company will be able to complete the preparation and filing of the Annual Report. In addition, the review is ongoing, and the Company has not yet determined the full extent of the impact on the second and third quarters of 2023 and whether and to what extent there may be an impact on financial statements for any other periods.

The Company is working diligently on this matter and will provide an update once more information is known.

About Luna

Luna Innovations Incorporated (www.lunainc.com) is a leader in optical technology, providing unique capabilities in high-performance, fiber optic-based, test products for the telecommunications industry and distributed fiber optic-based sensing for a multitude of industries. Luna’s business model is designed to accelerate the process of bringing new and innovative technologies to market.