Roanoke-based Luna Innovations Inc. has again failed to submit a quarterly report.
It is the third time this year that the fiber-optic technology company has reported to the Securities and Exchange Commission that it could not properly state its finances. In all, Luna has reported that previously issued statements dating to March 31, 2022 — including annual reports for that year and 2023 — are unreliable and “should be restated,” according to SEC filings.
Errors related to revenue recognition prevent accurate accounting, the company has reported. Under federal law, a business typically must report its revenue once it has completed the task it was paid for, and not before that.
Company officials launched what they called an independent review of the discrepancies as its executive management turned over completely in the meantime. The company and some of its executives face legal action from investors accusing them of illegally inflating Luna’s stock price. The firm recently signed a loan for up to $15 million that requires it to search for a buyer.
Shares of Luna closed Tuesday on the Nasdaq Stock Market at $2.66. The stock fell below $4 a share on March 22 and has not reached that level again in the months since. Its 2023 peak was $10.39, recorded in early March. Nasdaq has previously notified the company that it may remove it from the exchange due to Luna’s inability to file accurate reports.
According to a document that Luna filed with the SEC on Tuesday, the independent review has not been completed, and the company has yet to determine whether its lack of internal accounting controls will affect statements for other time periods.
“Although the Company cannot at this time estimate when it will file its restated financial statements, the Company intends to make such filings as soon as reasonably practicable following the completion of the review and the restatements,” Luna officers reported to the SEC.
