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Luna Innovations (NASDAQ: LUNA) announced the restatement of financial statements for the fiscal year ended December 31, 2022, and interim periods due to identified accounting errors in revenue recognition. The Audit Committee determined previous financial statements cannot be relied upon. The Company's Board of Directors is conducting an independent review with external advisors. The timeline for filing restated financial statements is uncertain.
Luna Innovations (NASDAQ: LUNA) ha annunciato la riformulazione dei bilanci per l'anno fiscale concluso il 31 dicembre 2022 e per i periodi intermedi a causa di errori contabili individuati nel riconoscimento dei ricavi. Il Comitato di Revisione ha determinato che i precedenti bilanci non sono affidabili. Il Consiglio di Amministrazione della società sta conducendo una revisione indipendente con consulenti esterni. La tempistica per la presentazione dei bilanci riformulati è incerta.
Luna Innovations (NASDAQ: LUNA) anunció la reformulación de los estados financieros para el año fiscal que terminó el 31 de diciembre de 2022, y para los períodos intermedios debido a errores contables identificados en el reconocimiento de ingresos. El Comité de Auditoría determinó que los estados financieros anteriores no son fiables. La Junta Directiva de la Compañía está realizando una revisión independiente con asesores externos. El plazo para la presentación de los estados financieros reformulados es incierto.
루나 이노베이션스(NASDAQ: LUNA)는 2022년 12월 31일로 끝난 회계 연도와 중간 기간에 수익 인식에서 발견된 회계 오류로 인해 재무제표를 재작성한다고 발표하였습니다. 감사위원회는 이전 재무제표가 신뢰할 수 없다고 판단하였습니다. 회사 이사회는 외부 자문과 함께 독립적인 검토를 수행하고 있습니다. 재작성된 재무제표를 제출할 시기는 불확실합니다.
Luna Innovations (NASDAQ: LUNA) a annoncé la reformulation des états financiers pour l'exercice clos le 31 décembre 2022 et pour les périodes intermédiaires en raison d'erreurs comptables identifiées dans la reconnaissance des revenus. Le Comité d'Audit a déterminé que les états financiers précédents ne sont pas fiables. Le Conseil d'administration de l'entreprise mène un examen indépendant avec le conseil d'experts externes. Le calendrier de dépôt des états financiers reformulés est incertain.
Luna Innovations (NASDAQ: LUNA) gab die Neufassung der Finanzberichte für das Geschäftsjahr, das am 31. Dezember 2022 endete, und für die Zwischenperioden aufgrund von identifizierten Buchhaltungsfehlern bei der Umsatzerkennung bekannt. Der Prüfungsausschuss hat festgestellt, dass auf die vorherigen Finanzberichte kein Verlass ist. Der Vorstand der Gesellschaft führt eine unabhängige Überprüfung mit externen Beratern durch. Der Zeitplan für die Einreichung der korrigierten Finanzberichte ist ungewiss.
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Insights
The restatement of financial statements is a signal that prior financial disclosures by Luna Innovations may have been materially incorrect. This is typically a red flag for investors as it reflects on the company's internal controls and governance standards. In situations like this, it is common to see a decline in investor confidence which can lead to a drop in the stock price. From a financial perspective, it is important to assess the magnitude of the restatement, as minor adjustments may not have a significant impact on the stock's valuation, whereas substantial revisions could indicate deeper issues in the company's accounting practices.
The involvement of a Special Committee suggests that the revenue recognition issues are being taken seriously. A thorough investigation is crucial, as revenue recognition is a fundamental accounting principle that can have legal implications if handled improperly. While the legal ramifications will depend on the nature and extent of the inaccuracies, they could range from regulatory penalties to investor lawsuits. Investors will be keenly interested in the findings of the review to understand any potential legal exposure the company may face.
The importance of timely and accurate financial reporting cannot be understated in terms of market perception. The restatement may lead to volatility in Luna's stock as markets react to uncertainty. Additionally, the market will likely scrutinize the company's upcoming financial releases more closely. Competitors may also be affected if investors start to question the reliability of revenue recognition across the industry. Long-term confidence in Luna could hinge on the transparency and effectiveness of the remedial actions taken to address the identified issues.
ROANOKE, Va.--(BUSINESS WIRE)--
Luna Innovations Incorporated (NASDAQ: LUNA) (the “Company”), a global leader in advanced fiber optic-based technology, today announced that its Audit Committee of the Board of Directors (the “Audit Committee”), after consultation with the Company’s management and the Special Committee’s external legal and financial advisors, determined that its financial statements for the fiscal year ended December 31, 2022, and the interim periods ended March 31, 2022, June 30, 2022, and September 30, 2022 and March 31, 2023, cannot be relied upon and need to be restated due to identified accounting errors relating to revenue recognition. Similarly, any previously issued or filed reports, press releases, earnings releases, investor presentations or other Company communications describing the Company’s financial results or other financial information relating to the fiscal year ended December 31, 2022, should no longer be relied upon.
As disclosed on March 12, a Special Committee of the Company’s Board of Directors has been conducting an independent review, with the assistance of external legal and financial advisors, of certain revenue recognition matters in connection with the Company’s previously issued financial statements.
As the independent review remains ongoing and the full extent of this impact is still being determined, the Company cannot at this time estimate when it will file its restated financial statements. The Company is working diligently on this matter and will provide updated information as appropriate.
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.
Forward-Looking Statement
This press release contains statements that constitute “forward looking information” and “forward-looking statements” within the meaning of U.S. securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the impact of the required adjustments in the Company’s previously issued financial statements and the timing of the Company’s filings with the U.S. Securities and Exchange Commission and the issuance of restated financial statements, are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements, and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.
Media Contact:
Chris Kittredge/Stephen Pettibone
FGS Global
Email: luna@fgsglobal.com
Source: Luna Innovations Incorporated
FAQ
Why did Luna Innovations announce the restatement of financial statements?
Luna Innovations announced the restatement of financial statements due to identified accounting errors in revenue recognition for the fiscal year ended December 31, 2022, and interim periods.
What is the impact of the restatement on previously issued reports?
Previously issued reports, press releases, earnings releases, investor presentations, or other Company communications describing financial results or information for the fiscal year ended December 31, 2022, should no longer be relied upon.
Who is conducting an independent review of revenue recognition matters at Luna Innovations?
A Special Committee of the Company's Board of Directors is conducting an independent review with external legal and financial advisors.
When will Luna Innovations file its restated financial statements?
The timeline for filing restated financial statements is uncertain as the full extent of the impact is still being determined.
