Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2023 were $9.7 million, up from $8.9 million in the same period last year, with infrared product sales accounting for $5.5 million or 56% of total revenue [17][18] - Gross margin for Q4 2023 was approximately $3.1 million, a 10% increase compared to $2.8 million in the prior year [19] - Net loss for Q4 2023 was approximately $809,000, an improvement from a loss of $1.4 million in the same quarter last year [48] - Full-year revenue for fiscal 2023 was $32.9 million, a decrease of 7% from $35.6 million in fiscal 2022 [49] - EBITDA for fiscal 2023 was a loss of approximately $355,000, compared to income of $1.2 million in fiscal 2022 [53] Business Line Data and Key Metrics Changes - Sales of infrared products increased, primarily driven by diamond-turned infrared products for defense and industrial markets [18] - Revenue from precision molded optics (PMO) was $3.2 million, representing 33% of consolidated revenue, while specialty products generated $1 million or 11% of total revenue [45] - PMO sales in China remained soft across all industries, while specialty optics saw increased demand from the medical industry [46][50] Market Data and Key Metrics Changes - U.S. sales grew by 19% year-over-year, while sales in China decreased by 55% and in the EU by 27% [23] - The decline in China is attributed to a poor economy and lack of demand for telecom and industrial products [23] Company Strategy and Development Direction - The company is transitioning from a component manufacturer to a value-added solutions provider, focusing on three pillars of growth: imaging solutions, automotive market expansion, and defense business [35][39] - The acquisition of Visimid Technologies enhances the company's capabilities in customizing electronics and software for infrared cameras, complementing its optical assembly expertise [41][42] - The company is working with the U.S. Department of Defense to qualify new materials as alternatives to germanium, which is facing supply chain vulnerabilities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense sector and the automotive market, particularly in thermal imaging applications [12][39] - The company is well-positioned for growth in fiscal 2024, despite short-term challenges related to export restrictions on germanium [11][27] Other Important Information - The company had working capital of approximately $14.9 million and total cash of about $7.1 million as of June 30, 2023 [26] - An increase in accounts receivable of $1.4 million in Q4 was noted, which is expected to stabilize in the upcoming quarters [27] Q&A Session Summary Question: What is the timeline for Mantis production decisions? - Management expects production decisions for Mantis to ramp up within the fiscal year, particularly in flame detection applications [57] Question: Update on germanium export controls from China? - The company has submitted export licenses for germanium shipments, with expectations for shipments to commence by mid-November [66][67] Question: What is the backup plan if germanium supply is disrupted? - The company has secured a one-year supply of germanium and is exploring alternative materials to mitigate risks [70][89] Question: What percentage of total revenue does China represent now? - China now represents less than 10% of total revenue, with a focus on higher-value markets moving forward [108]

PART I [Item 1. Business](index=3&type=section&id=Item%201.%20Business.) LightPath Technologies, Inc. manufactures optical components globally, transitioning to a solutions partner leveraging advanced optical technologies - LightPath Technologies, Inc. was incorporated in Delaware in 1992 and operates globally with major facilities in the United States, the People's Republic of China, and the Republic of Latvia, with corporate headquarters in Orlando, Florida[14](index=14&type=chunk) - The company's strategic direction has evolved from focusing on optical component manufacturing to providing domain expertise in optics and partnering with customers for optical engine solutions[26](index=26&type=chunk) - In July 2023, LightPath acquired Visimid Technologies, an engineering and design firm specializing in thermal imaging, night vision, and IoT applications, to enhance development and engineering capabilities[18](index=18&type=chunk)[28](index=28&type=chunk)[33](index=33&type=chunk) - LightPath is developing and commercializing BlackDiamond glass (BD2, BD6) as an alternative to Germanium for infrared applications, offering advantages like multispectral imaging and a-thermal behavior, supported by government funding[33](index=33&type=chunk)[47](index=47&type=chunk)[62](index=62&type=chunk) - New product development costs were approximately **$2.1 million** in both fiscal years 2023 and 2022, with a recent focus on internally-funded projects like the MANTIS broadband multispectral camera[36](index=36&type=chunk)[173](index=173&type=chunk) - The company's revenues are categorized into three product groups: Precision Molded Optics (PMOs), infrared products, and specialty products, including value-added items and NRE products[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - LightPath's competitive advantages include unique technologies (e.g., precision molded optics), vertical integration in infrared optics, and manufacturing flexibility with facilities in Asia, Europe, and North America[57](index=57&type=chunk)[60](index=60&type=chunk)[64](index=64&type=chunk) Revenue by Product Group (FY2023 vs. FY2022) | Product Group | FY2023 Revenue ($) | FY2022 Revenue ($) | Change (%) | | :-------------- | :----------------- | :----------------- | :--------- | | PMO | 13,425,643 | 15,020,542 | -11% | | Infrared Products | 16,735,869 | 18,735,325 | -11% | | Specialty Products | 2,772,437 | 1,803,293 | 54% | | **Total Revenue** | **32,933,949** | **35,559,160** | **-7%** | Customer Concentration (FY2023 vs. FY2022) | Metric | FY2023 | FY2022 | | :-------------------------------- | :----- | :----- | | Sales to top 3 customers (aggregate) | 24% | 35% | | Sales to largest customer | 11% | 19% | | Sales to second largest customer | 7% | 9% | | Sales to third largest customer | 6% | 7% | International Sales (FY2023 vs. FY2022) | Metric | FY2023 | FY2022 | | :-------------------------------- | :----- | :----- | | Net revenue from outside U.S. | 50% | 61% | | Foreign sales from Europe and Asia | 93% | 95% | [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including net losses, customer concentration, and international operational vulnerabilities - LightPath reported net losses of **$4.0 million**, **$3.5 million**, and **$3.2 million** for fiscal years 2023, 2022, and 2021, respectively, with an accumulated deficit of approximately **$207.8 million** as of June 30, 2023[91](index=91&type=chunk) - The company is highly dependent on a few key customers; in fiscal year 2023, three customers accounted for an aggregate of approximately **24%** of annual revenue, with the largest customer contributing **11%**[94](index=94&type=chunk)[428](index=428&type=chunk) - International operations expose the company to political and economic risks, including supply shortages from single/limited sources (e.g., Germanium from China), the impact of the Russia-Ukraine conflict, and international tariffs[96](index=96&type=chunk)[97](index=97&type=chunk)[104](index=104&type=chunk) - Future growth is dependent on market penetration efforts, including diversifying sales and offering complete optical solutions, which requires gaining customer trust and significant investment[107](index=107&type=chunk) - The company faces substantial competition from larger companies with greater resources and anticipates further reductions in average selling prices for some products[112](index=112&type=chunk)[114](index=114&type=chunk) - Protection of intellectual property relies on trade secrets, patents, trademarks, and copyrights, but there's a risk of competitors developing similar technology and enforcement challenges globally[140](index=140&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) LightPath's primary properties consist of leased office and manufacturing facilities in Orlando, Riga, and Zhenjiang Company Facilities as of June 30, 2023 | Location | Square Feet | Commitment and Use | | :--------------- | :---------- | :------------------------------------------------------ | | Orlando, Florida | 58,500 | Leased; corporate headquarters, manufacturing, R&D | | Riga, Latvia | 29,000 | Leased; administrative offices, manufacturing, crystal growing | | Zhenjiang, China | 55,000 | Leased; manufacturing | [Item 3. Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) LightPath is involved in various legal actions in the normal course of business but currently has no material legal proceedings - The company is involved in various legal actions arising in the normal course of business but currently has no material legal proceeding to which it is a party or to which its property is subject[151](index=151&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to LightPath Technologies, Inc PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) LightPath's Class A common stock trades on Nasdaq under 'LPTH', with no cash dividends paid or intended - LightPath's Class A common stock is traded on the Nasdaq Capital Market under the symbol 'LPTH'[154](index=154&type=chunk) - As of September 7, 2023, there were approximately **212 holders of record** and **10,192 street name holders** of the company's Class A common stock[155](index=155&type=chunk) - The company has never declared or paid any cash dividends on its Class A common stock and does not intend to do so in the foreseeable future, planning to retain all future earnings for business operations and expansion[156](index=156&type=chunk) [Item 6. Reserved](index=22&type=section&id=Item%206.%20Reserved.) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) LightPath's FY2023 revenue decreased 7% to $32.9 million, with stable gross margin but increased net loss and negative EBITDA - The COVID-19 pandemic continues to impact economic conditions, particularly in China, negatively affecting demand and operations, including travel restrictions[161](index=161&type=chunk)[422](index=422&type=chunk) - LightPath incurred approximately **$400,000** in legal and consulting fees in fiscal year 2022 related to malfeasance by former Chinese subsidiary employees, with severance payments of **$430,000** paid in fiscal year 2023[163](index=163&type=chunk)[165](index=165&type=chunk)[414](index=414&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) Key Financial Results (FY2023 vs. FY2022) | Metric | FY2023 ($) | FY2022 ($) | Change (%) | | :---------------------- | :------------ | :------------ | :--------- | | Revenue, net | 32,933,949 | 35,559,160 | -7% | | Cost of sales | 21,859,126 | 23,744,524 | -8% | | Gross margin | 11,074,823 | 11,814,636 | -6% | | Gross margin % of revenue | 34% | 33% | +1 pp | | Operating loss | (3,554,541) | (2,627,234) | +35% | | Net loss | (4,046,871) | (3,542,181) | +14% | | Basic/Diluted Loss per Share | (0.13) | (0.13) | 0% | - Selling, General and Administrative (SG&A) costs increased by **2%** to **$11.4 million** in FY2023, primarily due to increased stock compensation, personnel costs, Visimid acquisition costs (**$140,000**), and Orlando facility exit costs (**$129,000**)[172](index=172&type=chunk) - New product development costs increased by **3%** to **$2.1 million** in FY2023, driven by greater spending on internally-funded projects like the MANTIS reference design camera[173](index=173&type=chunk) - Interest expense increased to **$283,000** in FY2023 due to rising interest rates, despite a **30%** reduction in total debt; other income decreased significantly due to a non-recurring **$210,000** accrual reversal in FY2022[174](index=174&type=chunk)[175](index=175&type=chunk) - Income tax expense decreased to **$234,000** in FY2023, primarily related to China operations and Chinese withholding taxes on intercompany dividends; LPOIZ qualifies for a reduced Chinese income tax rate of **15%**[176](index=176&type=chunk)[347](index=347&type=chunk)[349](index=349&type=chunk) - Cash flow used in operations was **$2.8 million** in FY2023, a decrease from **$1.5 million** provided in FY2022, mainly due to increases in accounts receivable and inventory; capital expenditures increased to **$3.1 million** for the Orlando Facility expansion[193](index=193&type=chunk)[195](index=195&type=chunk) - Net cash provided by financing activities was **$7.5 million** in FY2023, driven by **$9.2 million** in equity proceeds from a public offering in January 2023[197](index=197&type=chunk)[409](index=409&type=chunk) - The company's strategy focuses on converting 'turns' business to more rewarding 'annuity' revenue streams through customer product development and 'engineered solutions'[198](index=198&type=chunk)[199](index=199&type=chunk) Quarterly Sales Backlog (FY2022-FY2023) | Quarter | Total Backlog ($000) | Change From Prior Year End (%) | Change From Prior Quarter End (%) | | :------ | :------------------- | :----------------------------- | :------------------------------ | | Q1 2022 | 19,265 | -10% | -10% | | Q2 2022 | 21,929 | 3% | 14% | | Q3 2022 | 19,678 | -8% | -10% | | Q4 2022 | 17,767 | -17% | -10% | | Q1 2023 | 22,973 | 29% | 29% | | Q2 2023 | 29,427 | 66% | 28% | | Q3 2023 | 26,620 | 50% | -10% | | Q4 2023 | 21,652 | 22% | -19% | Revenue and Units by Product Group (FY2023 vs. FY2022) | Product Group | FY2023 Revenue ($) | FY2022 Revenue ($) | Revenue Change (%) | FY2023 Units | FY2022 Units | Units Change (%) | | :---------------- | :----------------- | :----------------- | :----------------- | :----------- | :----------- | :--------------- | | PMO | 13,425,643 | 15,020,542 | -11% | 1,462,800 | 1,999,200 | -27% | | Infrared Products | 16,735,869 | 18,735,325 | -11% | 167,095 | 438,508 | -62% | | Specialty Products | 2,772,437 | 1,803,293 | 54% | 58,197 | 18,948 | 207% | | **Total** | **32,933,949** | **35,559,160** | **-7%** | **1,688,092** | **2,456,656** | **-31%** | Days Cost of Sales in Inventory (DCSI) (FY2022-FY2023) | Fiscal Quarter | Ended | DCSI (days) | | :------------- | :--------- | :---------- | | Q4-2023 | 6/30/2023 | 102 | | Q3-2023 | 3/31/2023 | 154 | | Q2-2023 | 12/31/2022 | 120 | | Q1-2023 | 9/30/2022 | 125 | | **FY2023 Average** | | **125** | | Q4-2022 | 6/30/2022 | 104 | | Q3-2022 | 3/31/2022 | 132 | | Q2-2022 | 12/31/2021 | 104 | | Q1-2022 | 9/30/2021 | 134 | | **FY2022 Average** | | **118** | Days Sales Outstanding (DSO) (FY2022-FY2023) | Fiscal Quarter | Ended | DSO (days) | | :------------- | :--------- | :--------- | | Q4-2023 | 6/30/2023 | 63 | | Q3-2023 | 3/31/2023 | 59 | | Q2-2023 | 12/31/2022 | 52 | | Q1-2023 | 9/30/2022 | 57 | | **FY2023 Average** | | **58** | | Q4-2022 | 6/30/2022 | 54 | | Q3-2022 | 3/31/2022 | 55 | | Q2-2022 | 12/31/2021 | 49 | | Q1-2022 | 9/30/2021 | 59 | | **FY2022 Average** | | **54** | EBITDA (FY2023 vs. FY2022) | Metric | FY2023 ($) | FY2022 ($) | | :----- | :--------- | :--------- | | EBITDA | (355,002) | 1,167,944 | | % of revenue | -1% | 3% | [Item 8. Financial Statements and Supplementary Data](index=34&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the consolidated financial statements and supplementary data from Item 15 of Part IV - The information required by this Item is incorporated by reference to the consolidated financial statements and supplementary data set forth in Item 15. Exhibits, Financial Statement Schedules of Part IV of this Annual Report on Form 10-K[240](index=240&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=34&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) LightPath Technologies, Inc. reports no changes in or disagreements with accountants on accounting and financial disclosure - There have been no changes in or disagreements with accountants on accounting and financial disclosure[241](index=241&type=chunk) [Item 9A. Controls and Procedures](index=34&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of June 30, 2023 - As of June 30, 2023, LightPath's disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[243](index=243&type=chunk) - Management assessed and concluded that the company's internal control over financial reporting was effective as of June 30, 2023, based on the COSO Internal Control—Integrated Framework (2013)[244](index=244&type=chunk) - Following events at its Chinese subsidiaries, LightPath adopted additional policies and procedures to improve internal controls, including revising reporting structures for foreign-based finance directors and implementing Codes of Conduct[247](index=247&type=chunk) [Item 9B. Other Information](index=35&type=section&id=Item%209B.%20Other%20Information) This item reports that there is no other information required to be disclosed - There is no other information to report under this item[248](index=248&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=35&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to LightPath Technologies, Inc PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=36&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[250](index=250&type=chunk) [Item 11. Executive Compensation](index=36&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[251](index=251&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management](index=36&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Security ownership information is incorporated by reference from the Proxy Statement, with 2.23 million securities outstanding under equity plans - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[252](index=252&type=chunk) Securities Authorized for Issuance Under Equity Compensation Plans (FY2023) | Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise and Grant Price of Outstanding Options, Warrants and Rights ($) | Number of Securities Remaining Available for Future Issuance | | :------------------------------------------------ | :-------------------------------------------------------------------------- | :---------------------------------------------------------------------------------------- | :----------------------------------------------------------- | | Equity compensation plans approved by security holders | 2,232,417 | 1.66 | 1,633,538 | | Equity compensation plans not approved by security holders | — | — | — | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=36&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[254](index=254&type=chunk) [Item 14. Principal Accountant Fees and Services](index=36&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[255](index=255&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=36&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed as part of the Annual Report on Form 10-K - This section details the exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents, loan agreements, and equity compensation plans[257](index=257&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk) [Item 16. Form 10-K Summary](index=40&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[270](index=270&type=chunk) [Index to Consolidated Financial Statements](index=40&type=section&id=Index%20to%20Consolidated%20Financial%20Statements) This section provides an index to the consolidated financial statements, including the Report of Independent Registered Public Accounting Firm and detailed Notes - The index lists the Report of Independent Registered Public Accounting Firm by MSL, P.A., and the Consolidated Financial Statements, which include Balance Sheets, Statements of Comprehensive Income (Loss), Statements of Changes in Stockholders' Equity, and Statements of Cash Flows, along with their accompanying notes[272](index=272&type=chunk) [Report of Independent Registered Public Accounting Firm – MSL, P.A.](index=41&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20%E2%80%93%20MSL,%20P.A.%20(MSL%20PCAOB%20%23569)) MSL, P.A. issued an unqualified opinion on LightPath's consolidated financial statements, identifying inventory allowance as a critical audit matter - MSL, P.A. provided an unqualified opinion, stating that LightPath's consolidated financial statements for June 30, 2023, and 2022, are presented fairly, in all material respects, in conformity with GAAP[274](index=274&type=chunk) - The critical audit matter identified was the subjective evaluation of management's estimate of the inventory allowance, due to significant assumptions involved in estimating future inventory turnover and sales[279](index=279&type=chunk)[280](index=280&type=chunk) [Consolidated Financial Statements](index=42&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present LightPath's financial position, including total assets of $53.5 million (2023) and net losses of $4.0 million (2023) Consolidated Balance Sheet Highlights | Metric | June 30, 2023 ($) | June 30, 2022 ($) | | :---------------------- | :---------------- | :---------------- | | Total Assets | 53,536,184 | 50,713,921 | | Total Liabilities | 17,583,659 | 20,982,683 | | Total Stockholders' Equity | 35,952,525 | 29,731,238 | | Cash and cash equivalents | 4,687,004 | 5,507,891 | | Restricted cash | 2,457,486 | — | | Inventories, net | 7,410,734 | 6,985,427 | | Loans payable, current portion | 1,023,814 | 998,692 | Consolidated Statements of Comprehensive Income (Loss) Highlights | Metric | Year Ended June 30, 2023 ($) | Year Ended June 30, 2022 ($) | | :---------------------- | :--------------------------- | :--------------------------- | | Revenue, net | 32,933,949 | 35,559,160 | | Gross margin | 11,074,823 | 11,814,636 | | Operating loss | (3,554,541) | (2,627,234) | | Net loss | (4,046,871) | (3,542,181) | | Loss per common share (basic) | (0.13) | (0.13) | Consolidated Statements of Cash Flows Highlights | Metric | Year Ended June 30, 2023 ($) | Year Ended June 30, 2022 ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | (2,809,523) | 1,464,128 | | Net cash used in investing activities | (2,867,985) | (1,626,614) | | Net cash provided by (used in) financing activities | 7,455,876 | (636,174) | | Change in cash, cash equivalents and restricted cash | 1,636,599 | (1,266,803) | | Cash, cash equivalents and restricted cash, end of period | 7,144,490 | 5,507,891 | [Notes to Consolidated Financial Statements](index=45&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on LightPath's accounting policies, financial statement components, and a subsequent event regarding the Visimid acquisition - LightPath's accounting policies include estimates for accounts receivable allowance, inventory obsolescence, stock-based compensation, and income taxes; revenue is recognized upon transfer of control of products or services[298](index=298&type=chunk)[301](index=301&type=chunk)[303](index=303&type=chunk)[311](index=311&type=chunk)[318](index=318&type=chunk)[330](index=330&type=chunk) Inventories, net (FY2023 vs. FY2022) | Component | June 30, 2023 ($) | June 30, 2022 ($) | | :---------------- | :---------------- | :---------------- | | Raw materials | 2,999,879 | 3,019,156 | | Work in process | 2,909,439 | 2,243,907 | | Finished goods | 2,626,106 | 3,052,001 | | Allowance for obsolescence | (1,124,690) | (1,329,637) | | **Total Inventories, net** | **7,410,734** | **6,985,427** | Goodwill and Intangible Assets, net (FY2023 vs. FY2022) | Asset Type | June 30, 2023 ($) | June 30, 2022 ($) | | :------------------ | :---------------- | :---------------- | | Goodwill | 5,854,905 | 5,854,905 | | Total Intangible Assets, net | 3,332,715 | 4,457,798 | - LightPath's Chinese subsidiary, LPOIZ, benefits from an incentive program with a **15%** tax rate and repatriated **$1.9 million** and **$2.8 million** from LPOIZ in FY2023 and FY2022, respectively, incurring Chinese withholding taxes[347](index=347&type=chunk)[349](index=349&type=chunk) Deferred Tax Assets and Liabilities (June 30, 2023 vs. 2022) | Item | June 30, 2023 ($) | June 30, 2022 ($) | | :------------------------ | :---------------- | :---------------- | | Gross deferred tax assets | 12,348,000 | 15,914,250 | | Valuation allowance | (11,057,000) | (14,388,277) | | Total deferred tax assets | 1,291,000 | 1,525,973 | | Total deferred tax liabilities | (1,616,000) | (1,923,988) | | **Net deferred tax assets (liabilities)** | **(325,000)** | **(398,015)** | - Total stock-based compensation expense was **$1.31 million** in FY2023, up from **$825,250** in FY2022, included in selling, general and administrative expenses[373](index=373&type=chunk) - LightPath has operating leases for facilities in Orlando, Zhenjiang, and Riga, and finance leases for equipment; the Orlando lease was extended to March 31, 2034, and the Zhenjiang lease expires December 31, 2024[377](index=377&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) Future Maturities of Loans Payable (as of June 30, 2023) | Fiscal Year Ending | BankUnited Term Loan ($) | Equipment Loans ($) | Total ($) | | :----------------- | :----------------------- | :------------------ | :-------- | | June 30, 2024 | 901,078 | 122,736 | 1,023,814 | | June 30, 2025 | 1,273,533 | 139,966 | 1,413,499 | | June 30, 2026 | - | 79,761 | 79,761 | | June 30, 2027 | - | 37,571 | 37,571 | | After June 30, 2027 | - | 19,756 | 19,756 | | **Total Payments** | **2,174,611** | **399,790** | **2,574,401** | - In July 2023, LightPath acquired Visimid Technologies for **$1 million** in cash, **$1.55 million** in restricted stock, and **$150,000** in assumed bank debt, aligning with its growth strategy to enhance engineered solutions capabilities[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)

LightPath Technologies, Inc. (NASDAQ:LPTH) Q3 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants Albert Miranda - CFO Sam Rubin - President and CEO Conference Call Participants Brian Kinstlinger - Alliance Global Partners Gene Inger - ingerletter.com Operator Good afternoon, everyone. And welcome to the LightPath Technologies Fiscal Third Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission file number 000-27548 LIGHTPATH TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or other jur ...

LightPath Technologies, Inc. (NASDAQ:LPTH) Q2 2023 Earnings Conference Call February 9, 2023 5:00 PM ET Company Participants Sam Rubin - President and Chief Executive Officer Albert Miranda - Chief Financial Officer Conference Call Participants Scott Buck - H.C. Wainwright Aaron Martin - AIGH Investment Partners Gene Inger - ingerletter.com Operator Good afternoon, and welcome to the LightPath Technologies Fiscal 2023 Second Quarter Financial Results Conference Call. [Operator Instructions] Please note this ...

Financial Performance - For the three months ended December 31, 2022, net revenue was $8,472,679, a decrease of 8.3% compared to $9,243,174 for the same period in 2021[17]. - The company reported a net loss of $(694,061) for the three months ended December 31, 2022, compared to a net loss of $(1,055,291) for the same period in 2021[17]. - For the six months ended December 31, 2022, the net loss was $2,074,761, compared to a net loss of $1,687,388 for the same period in 2021, indicating an increase in losses of approximately 23%[21]. - Revenue for Q2 fiscal 2023 was approximately $8.5 million, a decrease of 8% compared to $9.2 million in Q2 fiscal 2022, primarily due to lower sales of infrared products[111]. - Net loss for the second quarter of fiscal 2023 was approximately $694,000, or $0.03 per share, compared to a net loss of $1.1 million, or $0.04 per share, in the same quarter last year[129]. Revenue Breakdown - Revenue from precision molded optics (PMO) for the six months ended December 31, 2022, was $7,149,182, down 5.6% from $7,575,447 in the same period of 2021[32]. - Revenue from infrared products for the three months ended December 31, 2022, was $4,024,591, a decline of 20.7% compared to $5,075,168 in the same period of 2021[32]. - PMO product revenue in Q2 fiscal 2023 was approximately $3.9 million, an increase of 3% from $3.8 million in Q2 fiscal 2022, driven by sales to defense, industrial, and medical customers[113]. - Revenue from infrared products in the first half of fiscal 2023 was approximately $7.7 million, a decrease of 23% from $9.9 million in the same period of fiscal 2022, mainly due to timing of sales against a large annual contract[116]. - Specialty products revenue increased by 27% to approximately $1.0 million in the first half of fiscal 2023, up from $808,000 in the prior year[119]. Expenses and Costs - Operating loss for the three months ended December 31, 2022, was $(556,484), an improvement from $(980,383) in the prior year[17]. - Total cost of sales for the first half of fiscal 2023 was approximately $10.4 million, down from $12.4 million in the same period last year[121]. - SG&A costs for the second quarter of fiscal 2023 were approximately $3.0 million, an increase of 3% from $2.9 million in the same period last year[122]. - New product development costs for the second quarter of fiscal 2023 were approximately $466,000, a decrease of 16% from the prior year[125]. Assets and Liabilities - Total current assets decreased to $16,159,196 as of December 31, 2022, down from $18,169,414 as of June 30, 2022[14]. - Total liabilities decreased to $18,772,264 as of December 31, 2022, compared to $20,982,683 as of June 30, 2022[15]. - Cash and cash equivalents were $3,793,852 as of December 31, 2022, down from $5,507,891 as of June 30, 2022[14]. - The outstanding balance on the BankUnited Term Loan was approximately $3.6 million as of December 31, 2022[137]. Tax and Compliance - The effective income tax rate for the three months ended December 31, 2022, was -9%, compared to -3% for the same period in 2021, indicating a worsening tax position[38]. - The company has accrued approximately $40,000 in unpaid withholding taxes as of December 31, 2022, related to intercompany dividends[43]. - The U.S. federal and state statutory income tax rate is estimated to be 25.5%, with no additional tax expense expected on pre-tax income or losses generated in the U.S.[41]. Operational Challenges - The company anticipates continued challenges due to inflation and supply chain disruptions impacting future operations[12]. - The ongoing Russian-Ukraine conflict has created economic disruption, impacting the company's customers and suppliers, with uncertain future effects[89]. - Economic conditions in China have negatively impacted sales across all industries served, particularly affecting PMO product sales[113]. Cash Flow and Financing - Cash used in operations for the first half of fiscal 2023 was approximately $752,000, a significant increase from approximately $157,000 in the same period of the prior fiscal year[142]. - Cash paid for operating leases was $523,157 for the six months ended December 31, 2022, compared to $448,485 for the same period in 2021, an increase of 16.7%[63]. - The company raised approximately $9.2 million in net proceeds from a public offering of Class A common stock in January 2023[140]. Future Projections - Total backlog at December 31, 2022, was approximately $29.4 million, representing a 34% increase compared to $21.9 million as of December 31, 2021, and a 66% increase from the end of fiscal 2022[154]. - Future amortization of identifiable intangibles is projected to be $562,541 for the fiscal year ending June 30, 2023, and $1,125,083 for the fiscal year ending June 30, 2024[37]. - The company does not expect to need additional equity capital for the foreseeable future following a recent equity raise, but may require funds for acquisitions or strategic transactions[95]. Management and Strategy - The company is focusing on developing partnerships for optical solutions, leveraging its expertise in optics to provide comprehensive value propositions to customers[107]. - Management uses non-GAAP financial measures to assess business performance and make operational decisions, acknowledging their limitations[169].

Financial Data and Key Metrics Changes - Revenue for the first fiscal quarter was $7.4 million, down from $9.1 million in the same period last year [23] - Net loss for the first quarter was approximately $1.4 million, compared to a loss of $632,000 in the prior year [29] - Gross margin was approximately $2.2 million, representing 30% of revenue, down from 35% year-over-year [27] Business Line Data and Key Metrics Changes - Revenue from infrared products was $3.6 million, accounting for 49% of total revenue, a decrease primarily due to sales declines in the China industrial market [23] - PMO products generated $3.3 million, down from $3.8 million, attributed to decreased sales through catalog and distribution channels [24] - Specialty Products revenue increased to $0.5 million from $0.4 million, driven by non-recurring charges [25] Market Data and Key Metrics Changes - Sales in China represented approximately 13% of total revenue, down from about 30% in fiscal 2022 [10] - The backlog at the end of the first quarter was $23 million, indicating strong future revenue potential [15] Company Strategy and Development Direction - The company is transitioning from a components manufacturer to a provider of optical solutions, focusing on infrared optics and engineered solutions [11][12] - The introduction of Black Diamond glass is a key part of this strategy, with applications in multi-spectral imaging and reduced dependence on traditional materials sourced from China and Russia [13] - The company is actively collaborating with government agencies and customers to advance new materials and solutions [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged multiple headwinds, including Hurricane Ian, a slowdown in China, and geopolitical tensions affecting operations [8] - Despite challenges, management remains optimistic about growth prospects, particularly in defense and aerospace sectors [19][35] - The company expects the first quarter's performance to be an anomaly, with a strong backlog indicating potential recovery [34] Other Important Information - Cash used in operations was approximately $415,000 for the first three months, a decrease from $1.6 million in the same period last year [31] - The company has a working capital of approximately $9.2 million and total cash and cash equivalents of about $4.3 million [30] Q&A Session Summary Question: Details on exiting the distribution partner in Europe - Management explained that the exit was part of a strategic shift to direct sales, which has resulted in increased sales and margins [41][42] Question: Clarification on revenue impact from the distributor exit - Management clarified that while catalog sales decreased, direct sales in defense and commercial sectors have increased, leading to overall growth [44] Question: Timing and definition of "game changer" products - Management indicated that potential game-changing products could scale to $5 million to $10 million in annual revenue within two to three years [48] Question: Impact of BD6 material on business - Management emphasized the strategic importance of BD6, particularly in reducing dependence on germanium, with ongoing government support for its qualification [51][52] Question: Future growth potential and scaling - Management expressed confidence in the company's ability to grow independently, supported by government commitments and strategic alignment with defense priorities [67][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission file number 000-27548 2603 Challenger Tech Ct. Suite 100 Orlando, Florida 32826 (Address of principal executive offices) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ___________________________ LIGHTPATH TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) ___________________________ Delaware 86-0708398 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No) (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT T ...

LightPath Technologies, Inc. Q4 2022 Earnings Conference Call September 14, 2022 5:00 PM ET Company Participants Albert Miranda - Chief Financial Officer Sam Rubin - President and Chief Executive Officer Conference Call Participants Brian Kinstlinger - Alliance Global Partners Gene Inger - ingerletter.com Operator Good afternoon. And welcome to the LightPath Technologies Fiscal 2022 Fourth Quarter Financial Results Conference Call. All participants’ will be in listen-only mode. [Operator Instructions] Plea ...