Core Viewpoint - LightPath Technologies reported a 4% increase in revenue for the first quarter of fiscal 2025, driven by product innovation and strategic transitions towards next-generation optics and imaging solutions [1][9]. Financial Summary - Revenue for Q1 FY2025 was $8.4 million, up from $8.1 million in Q1 FY2024, reflecting a 4% increase [2][9]. - Gross profit increased by 22% to $2.8 million, representing 34% of total revenues, compared to 29% in the same quarter last year [2][11]. - Operating expenses rose 18% to $4.2 million, primarily due to higher legal and consulting fees [2][12]. - Net loss for the quarter was $1.6 million, compared to a net loss of $1.3 million in the prior year, with losses per share remaining at $0.04 [2][13]. - EBITDA loss was approximately $0.5 million, compared to a loss of $0.4 million in the same period last year [2][14]. Fiscal 2025 First Quarter Highlights - Secured orders for thermal imaging assemblies from a Tier-1 defense customer and received Phase 2 funding from the U.S. Defense Department [3]. - Achieved key qualification milestones with Lockheed Martin for a U.S. Army missile program [3][6]. - Transitioned a key customer from Germanium to BlackDiamond glass optics, enhancing product offerings [3][5]. - Launched several innovative products, including the next-generation Mantis camera and AI-ready EdgeIR™ cameras [3][7]. Product Group Performance - Revenue from infrared components decreased by 32% year-over-year to $2.6 million, primarily due to the non-renewal of a large annual contract for Germanium-based products [9][10]. - Revenue from visible components increased by 23% to $3.3 million, driven by sales in defense and medical industries [9][10]. - Engineering services revenue surged by 378% to $1.4 million, largely due to a contract with Lockheed Martin [10]. Management Commentary - The company is focused on transitioning to next-generation optics, with revenue from customized lens assemblies increasing from 19% to 30% year-over-year [4][5]. - Management expressed confidence in the company's strategic direction and market opportunities in automotive, defense, and camera solutions [8].

Financial Performance - Revenue for the three months ended September 30, 2024, was $8,400,381, an increase of 4.0% compared to $8,077,248 for the same period in 2023[10] - Gross profit for the quarter was $2,844,429, representing a gross margin of approximately 33.9%, up from $2,331,706 in the prior year[10] - Operating expenses increased to $4,221,237, a rise of 17.8% from $3,582,328 in the same quarter last year[10] - The net loss for the quarter was $1,622,745, compared to a net loss of $1,342,376 for the same period in 2023, reflecting a deterioration in profitability[10] - The company reported a loss per common share of $0.04 for both basic and diluted shares, consistent with the previous year[10] - The company reported a loss before income taxes of $(1,607,109) for the three months ended September 30, 2024, compared to $(1,302,830) for the same period in 2023[36] - The effective income tax rate for the three months ended September 30, 2024, was -1%, compared to -3% for the same period in 2023[36] - The company reported a net loss of $1,622,745 for the quarter ended September 30, 2024, compared to a net loss of $1,342,376 for the same period in 2023, indicating a year-over-year increase in losses of approximately 20.8%[13] Cash and Liquidity - Cash and cash equivalents increased to $4,280,637 from $3,480,268 as of June 30, 2024, indicating improved liquidity[8] - The company’s cash, cash equivalents, and restricted cash at the end of the period were $4,280,637, down from $6,859,958 at the end of the same period in 2023[14] - Cash flows from operating activities showed a net cash used of $1,700,201 for the quarter ended September 30, 2024, compared to a net cash provided of $1,139,989 for the same period in 2023[13] - As of September 30, 2024, the company had working capital of approximately $7.1 million and total cash and cash equivalents of approximately $4.3 million, with less than 50% held by foreign subsidiaries[115] Assets and Liabilities - Total current assets rose to $16,808,479, up from $15,537,335 at the end of the previous quarter, showing a positive trend in asset management[8] - Total liabilities increased to $18,999,671 from $17,887,299, indicating a rise in financial obligations[8] - Total stockholders' equity as of September 30, 2024, was $29,444,719, a decrease from $35,952,525 as of June 30, 2023, reflecting a decline of about 18%[12] - Total property and equipment, net, decreased to $14,921,499 as of September 30, 2024, from $15,210,612 as of June 30, 2024[33] Acquisition and Growth Strategy - The company acquired Visimid Technologies for a total purchase price of approximately $2.7 million, which includes $1 million in cash and $1,550,000 in restricted stock[22] - The acquisition of Visimid is expected to enhance the company's growth strategy by providing engineering and design services in thermal imaging and IoT applications[21] - The company incurred approximately $238,000 in acquisition costs related to the Visimid acquisition, with $83,000 incurred during the three months ended September 30, 2023[25] - The estimated fair value of identifiable intangible assets from the Visimid acquisition includes customer relationships valued at approximately $122,000 and trade secrets valued at approximately $925,000[24] Revenue Breakdown - Revenue from infrared components decreased by 31.9% to $2,610,884, while revenue from visible components increased by 22.7% to $3,299,878[31] - Revenues from the United States increased to $5.9 million in Q3 2024, up from $4.3 million in Q3 2023, reflecting a growth of 36.6%[72] - Revenue from engineering services surged by $1.1 million, or 378%, in Q1 fiscal 2025, primarily due to a contract with Lockheed Martin[102] - Revenue from visible components increased by approximately $0.6 million, or 23%, to $3.3 million in Q1 fiscal 2025, driven by sales to defense and medical industries[102] Stock and Shareholder Information - The number of shares used in the per share calculation increased to 39,561,480 from 37,431,748, reflecting potential dilution[10] - The company issued 279,553 shares of common stock for the acquisition of Visimid, reflecting the integration of the acquired entity into its operations[12] - As of September 30, 2024, the company had 832,099 shares of Class A common stock authorized and available for issuance under the Stock Incentive Compensation Plan[41] - The company has issued 585,483 shares of Class A common stock under its at-the-market equity program, raising approximately $9.2 million in net proceeds[81] Operating Expenses - Stock-based compensation expense for the three months ended September 30, 2024, was $264,475, compared to $240,075 for the same period in 2023[44] - Total lease costs for the three months ended September 30, 2024, were $320,373, up from $232,474 in the same period of 2023[58] - SG&A costs increased by approximately $609,000, or 23%, to $3.3 million in Q1 fiscal 2025, mainly due to higher legal and consulting fees[104] Future Outlook and Challenges - The company anticipates growth from medical programs and commercial optical sub-assemblies, particularly in the LIDAR technology market for autonomous vehicles[93] - The company expects minimal additional legal fees related to ongoing legal proceedings following the termination of employees in China, with approximately $190,000 recovered from Chinese authorities[75] - The company anticipates that economic conditions in China may adversely affect its business and results of operations in future quarters[76] - The company faces challenges in converting business to an annuity model due to competition and financial constraints imposed by limited cash resources[130]

LightPath Expands Partnership with Letter of Intent for Product Development, Manufacturing Localization in Europe and Volume CommitmentsORLANDO, Fla., Oct. 24, 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 a follow-on order and Letter of Intent ("LOI") for a sustained supply of infrared lens assemblies from a Europ ...

ORLANDO, Fla., Oct. 17, 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 that management has been invited to attend the LD Micro Main Event XVII Conference taking place on October 29, 2024. Sam Rubin, President and Chief Executive Officer, stated: "We look forward to attending the LD Micro investor conference later this month, w ...

Leading Methane Emissions Conference Taking Place October 15-16, 2024, in Fort Collins, Colorado ORLANDO, Fla., Oct. 15, 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 the launch of a new Optical Gas Imaging ("OGI") camera platform to detect fugitive gas emissions for oil and gas applications at the CH4 Connections Conference ...

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 ...