Financial Data and Key Metrics Changes - The company reported Q4 2019 revenues of $19.5 million, a 44% increase from $13.5 million in Q4 2018 [49] - Gross profit for Q4 2019 increased to $10.4 million, resulting in a gross margin of over 53%, compared to 49% in Q4 2018 [50] - Adjusted EBITDA for Q4 2019 was $3.2 million, up from $1.6 million in the same quarter last year [53] - For the full year 2019, revenues were $70.5 million, a 64% increase from $42.9 million in 2018 [54] Business Line Data and Key Metrics Changes - The Lightwave division saw product revenues grow by 65% year-over-year in Q4 2019, with total revenues for fiscal 2019 exceeding $49 million, a 114% increase compared to 2018 [30] - The technology development group demonstrated 16% revenue growth in Q4 and 24% growth for the full fiscal year 2019 [42] Market Data and Key Metrics Changes - Strong sales were recorded in the automotive market, particularly for the Odyssey product, which is being integrated into new composite materials for vehicles [96] - The company received new orders for the Hyperion platform from customers in the oil and gas industries, indicating strong demand in that sector [33] Company Strategy and Development Direction - The company aims to capitalize on the market shift towards optical fiber sensors, with significant players recognizing the advantages of these technologies [20] - The focus remains on integrating optical fiber sensors into advanced materials and structures, as well as utilizing Terahertz waves for process control applications [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting the strong performance in 2019 and the momentum expected to continue into 2020 [45] - The company anticipates full-year 2020 revenues to be in the range of $81 million to $84 million, with adjusted EBITDA expected between $10 million and $12 million [25] Other Important Information - The company has suspended all international air travel for employees due to concerns over the coronavirus but does not expect a material impact on full-year results at this time [57] - The company completed a $2 million share repurchase program, reducing outstanding shares by over 330,000 [14] Q&A Session Summary Question: Inquiry about gross margin sustainability - Management indicated that there was nothing specific in the quarter affecting gross margins and that they expect margins to remain consistent year-over-year [62] Question: R&D expense trends - R&D expenses were noted to be higher due to nonrecurring costs related to new product qualifications, particularly for the OBR 6200 [64] Question: Financing and capital structure - Management explained the motivation behind the share repurchase program as a way to return value to shareholders while maintaining a clean balance sheet [70] Question: F-35 program details - The OBR 6200 is being used for existing F-35 aircraft in the field, with expectations for sales growth as more units are deployed [74] Question: Impact of the coronavirus on industry events - Management stated that the upcoming OFC conference is still on, but attendance may be lower due to concerns, which could affect order flow and M&A opportunities [80] Question: Guidance visibility for 2020 - Management expressed confidence in the guidance provided for 2020 based on current bookings and pipeline activity [82] Question: M&A strategy and potential acquisitions - The company is open to exploring larger acquisitions but emphasized that any potential deals must align with their strategic focus and be accretive [86]

Financial Performance & Guidance - FY18 actual revenue was $42.9 million[3], and FY19 revenue guidance was $69-$70 million[3] - FY18 actual Adjusted EBITDA was $3.0 million[3], and FY19 Adjusted EBITDA guidance was $8.2-$8.6 million[3] - As of September 30, 2019, total assets were $82.9 million[30], including $21.4 million in cash and cash equivalents[30], and $39.2 million in working capital[30] Business Segments & Technology - Luna operates in two reporting segments: Technology Development and Products & Licensing[3] - Luna's technology includes high-definition distributed sensing and high-precision gauging[10] - Luna's technology is used for structural & material testing, process control, and communications test & measurement[10, 11, 17] Acquisitions & Integration - Luna acquired Micron Optics and General Photonics[29, 40] - Integration of Micron Optics is nearly complete, with positive customer feedback[26] - Integration of General Photonics is proceeding smoothly, with complementary product lines contributing to growth[27] Other Accomplishments - Luna executed a $2 million stock buyback program[28] - Luna converted 1.3 million shares of Series A convertible preferred stock into common stock[28] - Luna put in place a new $10 million revolving credit facility[28]

Luna Innovations Incorporated (NASDAQ:LUNA) Q3 2019 Earnings Conference Call November 5, 2019 5:00 PM ET Company Participants Allison Woody - Director of Administration Scott Graeff - President and Chief Executive Officer Dale Messick - Chief Financial Officer Brian Soller - Senior Vice President and General Manager, Lightwave Division Conference Call Participants Barry Sine - Spartan Capital Tim Savageaux - Northland Capital Markets Operator Good afternoon, ladies and gentlemen, and welcome to the Q3 2019 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _____________________________________ ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 000-52008 _____________________________________ LUNA INNOVATIONS INCORPORATED (Exact ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _____________________________________ ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 301 First Street SW, Suite 200 Roanoke, VA 24011 (Address of Principal Executive Offices) (540) 769-8400 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: OR o TRANSITION REPORT ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _____________________________________ ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 000-52008 _____________________________________ LUNA INNOVATIONS INCORPORATED (Exact name ...

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 000-52008 LUNA INNOVATIONS INCORPORATED (Exact name of Registrant as Specified in its Charter) Delaware 54-1560050 (Sta ...