Luna Innovations Incorporated reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported operating loss of $1,919,017, net loss of $2,043,225 or $0.18 basic and diluted per share on total revenues of $8,874,925 against operating loss of $1,104,787, net loss of $473,985 or $0.04 basic and diluted per share on total revenues of $10,703,546 for the same period a year ago. The company reported negative adjusted EBITDA of $747,727 against adjusted EBITDA of $102,682 for the same period a year ago. For the nine months, the company reported operating loss of $44,297,703, net loss of $45,338,572 or $4.05 basic and diluted per share on total revenues of $26,030,259 against operating loss of $4,746,210, net loss of $4,124,430 or $0.38 basic and diluted per share on total revenues of $29,501,772 for the same period a year ago. The company also reported net cash used in operating activities of $4,691,427 and acquisition of property and equipment of $49,295 against net cash used in operating activities of $1,317,555 and acquisition of property and equipment of $318,436 for the same period a year ago. The company reported negative adjusted EBITDA of $2,818,450 against negative adjusted EBITDA of $1,156,886 for the same period a year ago.

Luna Innovations Incorporated, Q3 2009 Earnings Call, Nov-12-2009

Luna Innovations Incorporated announced that the Company has received a letter from The NASDAQ Stock Market indicating that because the bid price of the Company’s common stock closed below the minimum $1 per share threshold set forth in NASDAQ Listing Rule 5550(a)(2) for the prior 30 consecutive business days, the Company has been provided 180 calendar days, or until March 15, 2010, to regain compliance with the minimum bid price requirement. In addition, should the Company satisfy the criteria for initial listing on The NASDAQ Capital Market (except for bid price) as of March 15, 2010, the Company will be entitled to a second 180-calendar day period, through September 13, 2010, to regain compliance with the minimum bid price requirement. The Company will regain compliance with NASDAQ’s minimum bid price requirement if the bid price of its common stock closes at $1 or higher for a minimum of ten consecutive business days during the compliance period. This notice does not affect the Company’s listing on NASDAQ at this time. As previously announced on September 8, 2009, the NASDAQ Listing Qualifications Panel determined to transfer the Company’s listing to The NASDAQ Capital Market and to continue the listing of the Company’s common stock subject to several conditions, including the Company’s emergence from Chapter 11 reorganization by December 31, 2009.