Initial Development Order with New Customer Follows Recently Granted European Defense Manufacturing License ORLANDO, Fla., Oct. 8, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced receipt of an initial development contract from a new European defense customer for the use of BlackDiamond glass in optical systems. The BlackDiamond ...

Strategic Defense Partnership Follows Successful Phase 1 Qualification of Additional LightPath Proprietary BlackDiamond™ Material Variants ORLANDO, Fla., Oct. 3, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced the U.S. D ...

ORLANDO, Fla., Oct. 1, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced the appointment of experienced operations professional Steven Garcia as General Manager of the Company's production facility in Orlando, Florida. Mr. ...

Low Rate Initial Production Order Follows Qualification for Assemblies Made with BlackDiamond™ Glass Optics ORLANDO, Fla., Sept. 26, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced receipt of a $0.5 million low rate init ...

Proprietary Germanium-Free Advanced Infrared Optics to Supply Critical F-35 Combat Aircraft Program ORLANDO, Fla., Sept. 24, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced a $3.5 million follow-on order to provide advan ...

Financial Performance - The company reported net losses of $8.0 million, $4.0 million, $3.5 million, and $3.2 million for fiscal years 2024, 2023, 2022, and 2021, respectively, with an accumulated deficit of approximately $215.8 million as of June 30, 2024[108]. - In fiscal year 2024, 39% of net revenue was derived from international sales, down from 50% in fiscal year 2023, with 94% of foreign sales coming from Europe and Asia[111]. - Sales to three key customers accounted for approximately 25% of annual revenue in fiscal year 2024, with one customer contributing 12%, another 7%, and the third 6%[122]. - The company has approximately $4.2 million in outstanding indebtedness as of August 2024 and will likely need additional financing to sustain operations and fund strategic plans[124]. - In fiscal years 2024 and 2023, the company recognized net gains of approximately $73,000 and losses of $37,000 on foreign currency transactions, respectively[120]. Market and Competition - The company faces substantial competition from larger public and private companies with greater resources, which could adversely affect its market position and financial condition[136]. - The company faces risks from international tariffs and trade policies that could adversely affect sales and operations, particularly in relation to China[116]. - The company must expand its sales and marketing organization to increase market awareness and sales, as its current organization is somewhat limited[134]. Product and Pricing Strategy - The company reorganized its products into four groups: infrared components (44% of net revenues), visible components (33%), assemblies and modules (14%), and engineering services (6%) in fiscal year 2024[138]. - The company anticipates further reductions in average selling prices of some products, necessitating increased sales volumes or higher margin products to maintain profitability[137]. - The company has experienced decreases in average selling prices over the last ten years, particularly in passive component products, and must offset these decreases to maintain revenue[137]. Supply Chain and Operational Risks - The company is susceptible to supply shortages and price fluctuations due to reliance on single or limited source suppliers for key materials[115]. - The company may incur additional costs or face operational disruptions if it fails to accurately forecast material requirements[139]. - The company’s manufacturing facilities are vulnerable to interruptions from various events, and it lacks backup facilities or sufficient business interruption insurance[146][148]. Intellectual Property and Cybersecurity - The company does not currently maintain product liability insurance, which could expose it to significant financial risks in the event of claims[145]. - The company does not have patent protection for its formulas and processes, which could negatively impact its business if ownership is lost[153]. - The company relies on trade secrecy laws and employee confidentiality agreements to protect its intellectual property, but there is no assurance against potential breaches[154]. - Cyber incidents pose a risk to the company, potentially leading to unauthorized access and disruption of operations, despite having technology security initiatives in place[155]. - The company has insurance coverage for cyber liability, but there are no guarantees that the coverage will be adequate for specific claims[154]. - The company has not experienced a material cyber incident, but the potential consequences could adversely affect its results of operations[155]. Human Resources - The company’s future success depends on attracting and retaining qualified personnel, facing significant competition for skilled employees in its industry[144]. Future Outlook - The company expects revenue growth through promotion of infrared products and continued cost reduction efforts, but future profitability remains uncertain[108]. - The company relies on key business relationships for product commercialization, and failure to maintain these relationships could limit revenue generation[133]. Regulatory and Reporting - As a Smaller Reporting Company, the company is electing scaled disclosure reporting obligations and is not required to provide certain market risk information[269].

Revenue Performance - Revenue for the fourth quarter of fiscal 2024 was approximately $8.6 million, a decrease of approximately $1.1 million, or 11%, compared to $9.7 million in the same quarter of the prior fiscal year[7]. - Full fiscal year 2024 revenue was approximately $31.7 million, a decrease of approximately $1.2 million, or 4%, compared to $32.9 million in the prior fiscal year[13]. - Revenue for the three months ended June 30, 2024, was $8.63 million, down from $9.68 million for the same period in 2023, representing a decline of 10.8%[37]. - Revenue from engineering services was approximately $2.0 million for fiscal 2024, an increase of $1.5 million compared to the prior fiscal year, driven by a contract with Lockheed Martin[21]. Net Loss and Financial Performance - Net loss for the fourth quarter of fiscal 2024 was approximately $2.4 million, compared to a net loss of $0.8 million for the same quarter of the prior fiscal year[11]. - The net loss for the year ended June 30, 2024, was $8.01 million, compared to a net loss of $4.05 million for the year ended June 30, 2023, indicating an increase in losses of 97.5%[37]. - The net loss for the year ended June 30, 2024, was $8,007,346, compared to a net loss of $4,046,871 for the year ended June 30, 2023, representing an increase in losses of approximately 97%[42]. - EBITDA for the fourth quarter of fiscal 2024 was a loss of approximately $1.3 million, compared to income of $0.1 million for the same period of the prior fiscal year[12]. - The EBITDA for the year ended June 30, 2024, was $(3,699,585), representing a decline compared to $(355,002) for the year ended June 30, 2023, indicating a worsening operational performance[46]. Margins and Costs - Gross margin for fiscal 2024 was approximately $8.6 million, a decrease of 22% compared to approximately $11.1 million in fiscal year 2023[16]. - The gross margin for the year ended June 30, 2024, was $8.63 million, down from $11.07 million in 2023, reflecting a decrease of 22%[37]. - SG&A costs for fiscal 2024 were approximately $12.3 million, an increase of approximately $0.9 million, or 8%, compared to the prior fiscal year[17]. Backlog and Contracts - Total backlog at June 30, 2024, was $19.3 million[8]. - As of June 30, 2024, the total backlog was approximately $19.3 million, a decrease of 11% from $21.7 million as of June 30, 2023[23]. - A significant contract renewal represented a 40% increase in dollar value compared to the previous order for advanced infrared optics[23]. - The company achieved key qualification milestones with Lockheed Martin for a US Army missile program[8]. Assets and Liabilities - Total current assets decreased to $15.54 million as of June 30, 2024, from $21.76 million as of June 30, 2023[35]. - Total liabilities increased slightly to $17.89 million as of June 30, 2024, compared to $17.58 million as of June 30, 2023[35]. Cash Flow and Equity - Cash flows from operating activities provided $521,037 in the year ended June 30, 2024, a significant improvement compared to cash used in operating activities of $(2,809,523) in the previous year[42]. - The company issued common stock under public equity placement, raising $806,332 in the year ended June 30, 2024, compared to $9,199,510 in the previous year, indicating a decrease of approximately 91%[42]. - The total stockholders' equity increased to $35,952,525 as of June 30, 2023, from $29,731,238 as of June 30, 2022, reflecting an increase of approximately 21%[39]. Acquisitions and Investments - LightPath's subsidiary, Visimid Technologies, was acquired in July 2023, focusing on customized infrared cameras for industrial and defense applications[29]. - The company acquired Visimid Technologies, resulting in a cash outflow of $847,141, which is part of its strategy for market expansion[42]. Depreciation and Currency Adjustments - The company reported depreciation and amortization expenses of $4,048,409 for the year ended June 30, 2024, compared to $3,174,569 for the year ended June 30, 2023, an increase of approximately 27.5%[42]. - The company experienced a foreign currency translation adjustment of $1,019,023 in the year ended June 30, 2024, which positively impacted the total stockholders' equity[42]. Stock-Based Compensation - The company reported a stock-based compensation expense of $1,019,023 for the year ended June 30, 2024, compared to $1,310,957 for the previous year, indicating a decrease of approximately 22%[42].

Core Insights - LightPath Technologies reported financial results for fiscal year 2024, highlighting a strategic transition towards custom thermal imaging solutions and a focus on defense, automotive, and camera solutions [3][11]. Fiscal 2024 Full Year & Fourth Quarter Highlights - Fourth quarter revenue was $8.6 million, a decrease of 11% from $9.7 million in the same quarter of the previous year; full year revenue was $31.7 million, down 4% from $32.9 million [2][6]. - Customized lens assemblies and related engineering services contributed 28% and 20% of revenue for the fourth quarter and full year, respectively [2]. - The total backlog as of June 30, 2024, was $19.3 million, down 11% from $21.7 million a year earlier [2][8]. - The net loss for the fourth quarter was $2.4 million, compared to a loss of $0.8 million in the same quarter of the prior year; the full year net loss was $8.0 million, up from $4.0 million [5][6]. - EBITDA loss for the fourth quarter was $1.3 million, compared to a gain of $0.1 million in the same period last year; full year EBITDA loss was $3.7 million [5][6]. Management Commentary - The CEO emphasized the company's strategic shift from a component provider to a custom thermal imaging solutions provider, with significant advancements in thermal imaging camera technology [3]. - The collaboration with Lockheed Martin on a missile program is expected to be transformative for the company, with successful qualification milestones achieved [3]. - The transition away from Germanium optics to proprietary BlackDiamond materials is seen as a strategic move to mitigate supply chain risks and enhance customer partnerships [3]. Product Revenue Breakdown - Revenue from infrared components was $3.0 million in the fourth quarter, down 36% from $4.8 million; visible components revenue remained stable at $3.2 million [4]. - Engineering services revenue surged to $1.0 million, a 698% increase compared to the previous year, driven by contracts with Lockheed Martin [4][6]. - For the full year, infrared components revenue was $14.1 million, a 2% decrease, while visible components revenue fell 16% to $11.2 million [6]. Cost and Margin Analysis - Gross margin for the fourth quarter was approximately $2.5 million, a decrease of 18% year-over-year, with a gross margin percentage of 29% compared to 32% [4][6]. - Selling, general and administrative costs increased by 20% to approximately $3.6 million in the fourth quarter, primarily due to higher wages and legal fees [4][6]. Liquidity and Capital Resources - Cash provided by operations was approximately $0.5 million for fiscal 2024, a significant improvement from cash used in operations of $2.8 million in the prior year [7]. - Capital expenditures were approximately $2.2 million, down from $3.1 million in the previous fiscal year, with a notable acquisition of Visimid Technologies for approximately $0.8 million [7]. Backlog and Future Contracts - The decrease in backlog is attributed to shipments against prior period contracts, but significant contract renewals are anticipated in the near future [8]. - A major contract renewal for advanced infrared optics for a military program represented a 40% increase in dollar value compared to the previous order [8].

Core Insights - Maris-Tech has collaborated with LightPath to integrate critical firmware and hardware that supports AI algorithms in LightPath's infrared cameras, marking a significant advancement in the technology [7] - The new AI-enabled feature, named EdgeIR™, will be available as an option on all of LightPath's cameras, allowing for enhanced functionality [2][3] Company Overview - Maris-Tech is a B2B provider specializing in edge computing AI-accelerated video solutions, founded by veterans from the Israel technology sector with extensive experience in electrical engineering and imaging [4] - The company aims to meet the increasing demands of commercial and tactical applications by delivering high-performance, compact, low power, and low latency solutions to various industries, including defense and homeland security [4] Technology Integration - The EdgeIR™ cameras will incorporate Maris-Tech's technology along with an embedded Hailo-8 AI accelerator, enabling customers to upload and run their preferred trained AI models directly at the camera level [3] - This integration facilitates real-time, low-latency streaming and high-efficiency AI inferencing on the camera's video stream, addressing bandwidth and security issues associated with cloud and server frameworks [8] Market Demand - There is a growing demand from the defense and industrial markets for integrated optical systems with trained AI models, highlighting the need for embedded AI hardware and software to simplify deployment and minimize hardware customization [8]

Core Insights - Maris-Tech has collaborated with LightPath to integrate critical firmware and hardware that supports AI algorithms in LightPath's infrared cameras, marking a significant advancement in their technology [7] - The new AI-enabled feature, named EdgeIR™, will be available as an option on all of LightPath's cameras, allowing for enhanced functionality [2][3] Company Overview - Maris-Tech is a B2B provider specializing in edge computing AI-accelerated video solutions, founded by veterans from the Israel technology sector with extensive experience in electrical engineering and imaging [4] - The company aims to meet the increasing demands of commercial and tactical applications by delivering high-performance, compact, low power, and low latency solutions to various industries, including defense and homeland security [4] Technology Integration - The EdgeIR™ cameras will incorporate Maris-Tech's technology along with an embedded Hailo-8 AI accelerator, enabling customers to upload and run their preferred trained AI models directly at the camera level [3] - This integration facilitates real-time, low-latency streaming and high-efficiency AI inferencing on the camera's video stream, addressing bandwidth and security issues associated with cloud and server frameworks [8]