Financial Performance - The net loss for the nine months ending September 30, 2022, was $12.16 million, compared to a net loss of $10.52 million for the same period in 2021, indicating an increase in losses of 15.6%[18]. - The net loss for the three months ended September 30, 2022, was $4,803,383, an increase of $555,261 (13%) compared to the same period in 2021[176]. - The net loss for the nine months ended September 30, 2022, was $12,161,742, an increase of $1,639,091 (16%) compared to the same period in 2021[183]. - The company incurred a net loss of $12,161,742 for the nine months ended September 30, 2022, with an accumulated deficit of $101,764,623[210]. - The company anticipates continuing to incur operating losses through at least 2022, requiring significant revenue generation to achieve profitability[211]. Revenue and Sales - The company reported no net sales for the three and nine months ending September 30, 2022[18]. - The company had no revenues during the nine months ended September 30, 2022, as it is in various stages of photonic device and materials development[177]. - The company expects to generate revenue from technology licensing agreements and direct sales of its electro-optic device components[28]. Expenses - Research and development expenses for the nine months ending September 30, 2022, were $8.99 million, up 15.9% from $7.76 million in the same period of 2021[18]. - General and administrative expenses increased to $3.02 million for the nine months ending September 30, 2022, compared to $1.84 million in 2021, reflecting a rise of 64.0%[18]. - General and administrative expenses increased by $1,176,125 (64%) for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to increases in non-cash stock option amortization, legal expenses, and director fees[181]. - Research and development expenses rose by $1,232,946 (16%) for the nine months ended September 30, 2022, compared to the same period in 2021, driven by increases in non-cash stock option amortization and prototype device development expenses[178]. - Research and development expenses for the three months ended September 30, 2022, were $3,587,692, a slight decrease from $3,600,793 in the same period in 2021[172]. Assets and Liabilities - Total assets increased to $30.15 million as of September 30, 2022, compared to $27.23 million at December 31, 2021, representing an increase of 10.7%[17]. - Cash and cash equivalents rose to $25.02 million from $23.43 million, a growth of 6.8%[17]. - Total stockholders' equity increased to $28.79 million as of September 30, 2022, from $25.20 million at December 31, 2021, marking an increase of 10.3%[17]. - The total current liabilities decreased to $1.09 million from $1.59 million, a reduction of 31.2%[17]. - Long-term liabilities decreased to $0.27 million from $0.44 million, a decline of 39.2%[17]. - Cash and cash equivalents totaled $25,021,642 as of September 30, 2022, with total assets of $30,148,946 and stockholders' equity of $28,794,197[194]. Financing and Capital - The company expects to incur approximately $1,380,000 in expenditures per month over the next 12 months, with current cash enabling operations through March 2024[39]. - The company has sufficient funds to finance operations through March 2024 but will need additional capital thereafter[212]. - The company plans to seek additional funding through public or private financings, including equity financings[212]. - The company received $10,709,293 in proceeds from the resale of common stock to an institutional investor during the nine months ended September 30, 2022[188]. - The company has a remaining available amount of $4,943,057 under a purchase agreement with an institutional investor for common stock sales[39]. Stock and Options - The weighted average number of shares outstanding for the nine months ending September 30, 2022, was 111.54 million, compared to 103.91 million in 2021, an increase of 7.8%[18]. - The company has 2,895,000 stock options outstanding as of September 30, 2022, under the 2007 Employee Stock Plan[66]. - The total share-based compensation recognized was $4,355,639, a significant increase from $799,197 in the same period of 2021, reflecting a growth of approximately 444%[73]. - The company reported stock options issued for services amounting to $4,288,172 for the nine months ending September 30, 2022[25]. Research and Development Focus - The company is focused on developing next-generation photonic devices and expects to generate revenue from technology licensing agreements and direct sales of its electro-optic device components[28]. - The company is developing electro-optic modulators that convert electric signals into optical signals, essential for high-speed fiber-optic telecommunications[89]. - The company is working closely with packaging and foundry partners for 50Gbaud and 100Gbaud prototypes, aiming for commercial volume scalability[167]. - The company expects to incur substantial research and development expenses as it accelerates efforts to commercialize its electro-optic polymer materials technology[173]. - The company is focusing on developing proprietary organic electro-optic polymer material systems to improve product reliability and quality assurance capabilities[99]. Technology and Innovation - Lightwave Logic, Inc. is focused on commercialization of next-generation electro-optic photonic devices using its proprietary PIC™ technology platform, targeting applications in data communications and telecommunications markets[83]. - The company is expanding its partnerships with silicon-based foundries to scale production of polymer modulator devices, enhancing manufacturability and reliability[84]. - The proprietary electro-optic polymers are designed for superior performance and stability, with potential applications across various industries including telecommunications, automotive, and aerospace[88]. - The company achieved a breakthrough with new modulators fabricated in 2021, exceeding bandwidth design targets and achieving triple the data rate compared to competing devices, with electrical bandwidths exceeding 100 GHz[145]. - The company received U.S. Patent number 10,754,093, enhancing the performance and reliability of high-speed, low-power electro-optic polymer modulators for datacenter and telecommunications applications[136].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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 001-40766 Lightwave Logic, Inc. (Exact name of registrant as sp ...

Part I Financial Information [Item 1 Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) The unaudited financial statements for Q1 2022 show the company in a development stage with no revenue, a net loss increase to **$3.56 million** from **$1.74 million** year-over-year, and a strong cash position of **$24.3 million** Balance Sheet Summary (USD) | Balance Sheet Items | March 31, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $24,337,502 | $23,432,612 | | Total Current Assets | $24,551,720 | $23,664,920 | | Total Assets | $28,049,727 | $27,228,575 | | **Liabilities & Equity** | | | | Total Current Liabilities | $848,953 | $1,585,973 | | Total Liabilities | $1,230,456 | $2,024,303 | | Total Stockholders' Equity | $26,819,271 | $25,204,272 | Statement of Comprehensive Loss Summary (USD) | Income Statement Items | Three Months Ending Mar 31, 2022 | Three Months Ending Mar 31, 2021 | | :--- | :--- | :--- | | Net Sales | $0 | $0 | | Research and development | $2,625,138 | $1,362,805 | | General and administrative | $885,430 | $532,967 | | Loss from Operations | ($3,510,568) | ($1,895,772) | | Net Loss | ($3,555,761) | ($1,735,044) | | Loss per Share (Basic & Diluted) | ($0.03) | ($0.02) | Cash Flow Summary (USD) | Cash Flow Items | Three Months Ending Mar 31, 2022 | Three Months Ending Mar 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,545,689) | ($1,253,391) | | Net cash used in investing activities | ($221,991) | ($493,639) | | Net cash provided by financing activities | $3,672,570 | $4,961,865 | | Net increase in cash | $904,890 | $3,214,835 | | Cash and cash equivalents - End of Period | $24,337,502 | $6,521,425 | - The company is a technology firm focused on developing next-generation photonic devices and non-linear optical polymer materials for high-speed fiber-optic data communications, aiming to generate revenue through licensing, technology transfer, and direct sales of its components[32](index=32&type=chunk) - The company expects to incur approximately **$1.16 million** of expenditures per month over the next 12 months, with its current cash position sufficient to finance operations through January 2024, and an institutional investor purchase agreement providing access to up to **$33 million** in common stock sales, with **$11.47 million** remaining available[46](index=46&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company, a development-stage entity commercializing its proprietary polymer technology platform, reported no revenue and a net loss of **$3.56 million** in Q1 2022, an increase from **$1.74 million** in Q1 2021, with current cash of **$24.3 million** expected to fund operations through January 2024 [Overview and Business Strategy](index=20&type=section&id=Overview%20and%20Business%20Strategy) Lightwave Logic is a development-stage company commercializing its proprietary polymer-based electro-optic photonic devices (PIC™ technology platform), aiming for higher speed, lower power, and manufacturing simplicity through licensing, joint ventures, and direct sales - The company is developing next-generation electro-optic photonic devices on its PIC™ technology platform, which includes Polymer Stack™, Polymer Plus™, and Polymer Slot™[85](index=85&type=chunk) - The business model focuses on three areas: traditional product development, patent licensing, and technology transfer to foundries[87](index=87&type=chunk) - The company's revenue stream is anticipated to come from a combination of technology licensing, joint ventures, and direct sales of its electro-optic device components[95](index=95&type=chunk) [Proprietary Products and Target Markets](index=22&type=section&id=Proprietary%20Products%20and%20Target%20Markets) The company is developing high-speed optical devices, including Ridge Waveguide and Polymer Slot™ modulators, for cloud computing, data centers, and telecommunications, aiming to integrate with existing silicon photonics platforms - Initial modulator products are expected to operate at data rates of at least **50 Gbaud**, enabling **100 Gbps** with PAM-4 encoding, with development underway for the next node of **100 Gbaud**[97](index=97&type=chunk) - The Polymer Plus™ approach allows the company's electro-optic polymers to be deposited as a thin film, enabling seamless integration with existing semiconductor platforms like CMOS, InP, and GaAs[93](index=93&type=chunk)[102](index=102&type=chunk) - The company's long-term goal is to produce a multi-channel Polymer Photonic Integrated Circuit (PIC™) platform to address markets with aggregated data rates of **100, 400, 800 Gbaud**, and beyond[107](index=107&type=chunk) - Target markets include cloud computing, data centers (particularly for interconnects >10km), and telecommunications, driven by demand from 5G, autonomous driving, and IoT[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) [Recent Significant Events and Milestones](index=26&type=section&id=Recent%20Significant%20Events%20and%20Milestones) The company achieved numerous milestones, including receiving multiple U.S. patents, demonstrating world-record polymer modulator performance, achieving breakthrough photostability, and listing its common stock on the Nasdaq Capital Market in September 2021 - In September 2021, the company's common shares began trading on the Nasdaq Capital Market (Nasdaq)[149](index=149&type=chunk) - Achieved world-record performance for a polymer modulator in collaboration with ETH Zurich and Polariton Technologies, transmitting **220 Gbit/s OOK** and **408 Gbit/s 8PAM**[151](index=151&type=chunk) - Announced breakthrough photostability results on electro-optic polymer modulators, which are compatible with high-volume silicon foundry processes[155](index=155&type=chunk) - Received U.S. patent number 11,262,605 for an 'Active region-less polymer modulator' designed to simplify integration and enhance reliability for high-volume foundry manufacturing[156](index=156&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) For Q1 2022, the company reported no revenue, with operating expenses increasing by **85%** to **$3.51 million** due to higher R&D and G&A expenses, leading to a **105%** widening of net loss to **$3.56 million** Operating Expenses Comparison (Q1 2022 vs Q1 2021, USD) | Expense Category | Three Months Ending Mar 31, 2022 | Three Months Ending Mar 31, 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $2,625,138 | $1,362,805 | $1,262,333 | 93% | | General and administrative | $885,430 | $532,967 | $352,463 | 66% | | **Total Operating Expenses** | **$3,510,568** | **$1,895,772** | **$1,614,796** | **85%** | - The increase in R&D expenses was primarily due to higher non-cash stock option amortization (**$856,534**), salary expenses (**$210,236**), and costs for lab materials and prototype development[165](index=165&type=chunk) - The increase in G&A expenses was mainly driven by higher non-cash stock option amortization (**$256,115**) and director fees (**$37,750**)[167](index=167&type=chunk) Net Loss Comparison (USD) | Metric | Three Months Ending Mar 31, 2022 | Three Months Ending Mar 31, 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $3,555,761 | $1,735,044 | $1,820,717 | 105% | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary cash source is common stock sales, with **$24.3 million** in cash and equivalents as of March 31, 2022, sufficient to fund operations through January 2024, supported by an active purchase agreement - The company's primary source of cash is from the sale of common stock to an institutional investor, from which it received **$3.69 million** in Q1 2022[172](index=172&type=chunk)[174](index=174&type=chunk) - The company has a purchase agreement with an institutional investor to sell up to **$33 million** of common stock, with **$11,469,582** remaining available as of the filing date[173](index=173&type=chunk) - Management believes current cash is sufficient to finance operations through January 2024, with expected monthly expenditures of approximately **$1.16 million** over the next 12 months[176](index=176&type=chunk)[177](index=177&type=chunk) Analysis of Cash Flows (Q1 2022, USD) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash used in operating activities | ($2,545,689) | | Net cash used by investing activities | ($221,991) | | Net cash provided by financing activities | $3,672,570 | [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk primarily relates to U.S. interest rate changes affecting its **$24.3 million** in cash and equivalents, but due to short-term investments, this risk is deemed not material - As of March 31, 2022, the company had **$24.3 million** in cash and cash equivalents[186](index=186&type=chunk) - The primary market risk exposure is to interest rate changes, but due to the short holding period of investments, the company concludes this risk is not material[187](index=187&type=chunk)[188](index=188&type=chunk) [Item 4 Controls and Procedures](index=36&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective[190](index=190&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[191](index=191&type=chunk) Part II Other Information [Item 1 Legal Proceedings](index=37&type=section&id=Item%201%20Legal%20Proceedings) The company reported no legal proceedings - None[194](index=194&type=chunk) [Item 1A Risk Factors](index=37&type=section&id=Item%201A%20Risk%20Factors) The company highlights significant risks, including a history of substantial operating losses and an accumulated deficit of **$93.2 million**, requiring additional capital beyond January 2024 which may not be available - The company has incurred substantial operating losses since inception and expects them to continue, with the net loss for Q1 2022 at **$3.6 million** and the accumulated deficit reaching **$93.2 million**[196](index=196&type=chunk) - The company will require additional capital to fund operations beyond its current runway, estimated through January 2024, and failure to obtain financing could necessitate a substantial limitation of operations[198](index=198&type=chunk) - There is no assurance that the company will ever achieve profitability, as it needs to generate significant revenue to offset substantial operating and capital expenditures[197](index=197&type=chunk) [Item 2 Recent Sales of Unregistered Securities](index=38&type=section&id=Item%202%20Recent%20Sales%20of%20Unregistered%20Securities) The company reported no recent sales of unregistered securities - None[201](index=201&type=chunk) [Item 6 Exhibits](index=38&type=section&id=Item%206%20Exhibits) The report lists several exhibits filed, including employment agreements, officer indemnification agreements, and certifications from key executives as required by the Sarbanes-Oxley Act - Exhibits filed with the report include employment agreements, director and officer indemnification agreements, and certifications pursuant to SEC rules and the Sarbanes-Oxley Act[204](index=204&type=chunk)

Part I [Business](index=5&type=section&id=Item%201.%20Business) Lightwave Logic develops high-speed, low-power electro-optic photonic devices using proprietary polymer technology for data and telecommunications markets - The company is a development-stage entity commercializing electro-optic photonic devices using its proprietary **PIC™ technology platform**, including Polymer Stack™, Polymer Plus™, and Polymer Slot™[16](index=16&type=chunk) - The business model focuses on **product development, patent licensing, and technology transfer** to foundries[18](index=18&type=chunk) - Initial target markets include **data communications and telecommunications**, with explorations into automotive/LIDAR, sensing, and displays[18](index=18&type=chunk) [Overview and Technology](index=5&type=section&id=Item%201.%20Business.Overview) The company develops proprietary organic polymers for electro-optic devices, offering superior performance, stability, and cost-efficiency, integrated with semiconductor manufacturing processes - The company designs proprietary organic chromophores for electro-optic polymer systems, engineered for **superior performance and stability** at a molecular level[20](index=20&type=chunk) - The **Polymer Plus™ platform** enables integration of electro-optic polymers as thin film coatings with CMOS and Indium Phosphide (InP) material platforms[27](index=27&type=chunk) - Lightwave Logic collaborates with commercial foundries to implement electro-optic polymers into **Process Development Kits (PDKs)** for Polymer Plus™ and Polymer Slot™ modulators[28](index=28&type=chunk) [Intellectual Property](index=10&type=section&id=Item%201.%20Business.Intellectual%20Property) The company protects its technology with an extensive portfolio of **59 granted patents**, including 47 in the US, significantly expanded by a 2018 acquisition - The company's patent portfolio comprises **59 granted patents**, including 47 from the US, 5 from the EU, and others from Canada, Japan, and China[58](index=58&type=chunk) - In 2018, the company acquired **BrPhotonics' Polymer Technology IP Assets**, adding 15 patents and strengthening its position for the 400Gbps integrated photonics market[57](index=57&type=chunk) [Recent Milestones and Events](index=11&type=section&id=Item%201.%20Business.Recent%20Milestones) From 2020-2022, the company achieved significant technical and corporate milestones, including world-record polymer modulator performance and Nasdaq listing - The company's common stock began trading on the **Nasdaq Capital Market** on September 1, 2021[92](index=92&type=chunk) - Achieved **world-record performance** for a polymer modulator, demonstrating **220 Gbit/s OOK** and **408 Gbit/s 8PAM transmission** in collaboration with ETH Zurich and Polariton Technologies[94](index=94&type=chunk) - Announced **breakthrough photostability results** on electro-optic polymer modulators, crucial for high-volume silicon foundry compatibility[98](index=98&type=chunk) [Market Overview and Target Markets](index=15&type=section&id=Item%201.%20Business.Market%20Overview) The global photonics components market is projected to reach **$80 billion by 2030**, with PICs comprising **52%**, targeting data center and telecommunications interconnects - The photonics market is forecasted to grow to **$80 billion by 2030** with a **17% CAGR** (2020-30)[103](index=103&type=chunk) - **PIC-based technologies** are forecasted to reach approximately **$41 billion by 2030**, representing about **52%** of the photonics components market[106](index=106&type=chunk) - The company's modulators are suited for single-mode fiber optic links **greater than 10km**, targeting data center and telecommunication applications[117](index=117&type=chunk)[136](index=136&type=chunk) [Business Strategy and Products in Development](index=22&type=section&id=Item%201.%20Business.Strategy%20and%20Products) The company's strategy is to develop a portfolio of **50 Gbaud and higher** electro-optic modulators using its PIC platform, targeting multi-channel data rates up to 1.6 Tbps - The business strategy anticipates revenue from **technology licensing, joint ventures, and direct sales** of electro-optic device components[128](index=128&type=chunk) - The **Ridge Waveguide Modulator (Polymer Stack™)** is the first commercially viable device, targeting fiber optics communications for links **over 10km**[133](index=133&type=chunk)[136](index=136&type=chunk) - The long-term goal is a flexible, multichannel **PIC™ platform** to address aggregated data-rate markets from **100 Gbps up to 1.6 Tbps**[144](index=144&type=chunk) [Competition](index=25&type=section&id=Item%201.%20Business.Competition) The company competes in a highly competitive market against established InP and SiP technologies, leveraging its organic polymer advantages against major fiber-optic component manufacturers - The incumbent PIC technology, **Indium Phosphide (InP)**, offers world-class performance but has limitations in large-format wafer manufacturing[151](index=151&type=chunk) - **Silicon Photonics (SiP)** leverages existing semiconductor infrastructure for cost reduction but requires hybrid solutions as it cannot natively generate light[153](index=153&type=chunk) - Key competitors include **II-VI, Lumentum, Molex, Broadcom, Intel, and Ciena**, heavily invested in crystalline-based modulator technologies[160](index=160&type=chunk) [Human Capital](index=28&type=section&id=Item%201.%20Business.Human%20Capital) The company has **19 full-time employees**, with plans to add 5 more in 2022, relying on a skilled workforce and offering competitive compensation to attract talent - The company currently has **19 full-time employees** and expects to add **5 additional full-time employees in 2022**[163](index=163&type=chunk) - The company's total rewards package includes **market-competitive pay, stock options, bonuses, and various benefits** to attract and retain talent[167](index=167&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including substantial operating losses, need for future capital, market acceptance challenges, intellectual property protection, and reliance on strategic partnerships - The company has a history of substantial operating losses, incurring a **net loss of $18.6 million in 2021**, and anticipates continued losses[173](index=173&type=chunk) - The company will require **additional capital** to fund operations beyond December 2023, which may not be obtainable on acceptable terms[179](index=179&type=chunk) - Targeted markets are intensely competitive, with competitors possessing **substantially greater resources**, potentially hindering the company's success[201](index=201&type=chunk) - Success depends on gaining market acceptance for products, involving a **lengthy and expensive customer qualification process** with no sales guarantee[188](index=188&type=chunk)[190](index=190&type=chunk) - The **COVID-19 pandemic** continues to pose risks, potentially impacting research and development, financial results, and fundraising ability[198](index=198&type=chunk) [Unresolved Staff Comments](index=44&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[247](index=247&type=chunk) [Properties](index=44&type=section&id=Item%202.%20Properties) The company's principal executive and R&D facility is a **13,420 sq. ft. leased space** in Englewood, Colorado, including cleanrooms and laboratories - The company's main facility is a **13,420 sq. ft. leased space** in Englewood, Colorado, including cleanrooms and laboratories[248](index=248&type=chunk) [Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) The company is not a party to any material litigation, nor is it aware of any threatened material litigation - The company is not a party to any litigation of a material nature[249](index=249&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[250](index=250&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock began trading on the **Nasdaq Capital Market** on September 1, 2021, with no cash dividends paid, and has significantly outperformed the NASDAQ Composite Index - The company's common stock has traded on the **Nasdaq Capital Market** under the symbol "LWLG" since September 1, 2021[253](index=253&type=chunk) - No cash dividends have been declared or paid on common stock to date[255](index=255&type=chunk) | Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 6,748,248 | $1.05 | 3,210,250 | | Equity compensation plans not approved by security holders | 1,138,000 | $0.85 | 0 | | **Total** | **7,886,248** | **$1.02** | **3,210,250** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The development-stage company reported no revenue in 2021 or 2020, with a **net loss of $18.6 million** in 2021 due to increased operating expenses, primarily funded by common stock sales [Results of Operations (FY 2021 vs. FY 2020)](index=49&type=section&id=Item%207.%20MD%26A.Results%20of%20Operations) In FY2021, the company reported no revenue, with operating expenses increasing **158% to $17.0 million**, leading to a **net loss of $18.6 million**, up **177%** from 2020 | | Year Ending Dec 31, 2021 | Year Ending Dec 31, 2020 | Change from Prior Year ($) | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | **Research and development** | $12,476,040 | $4,590,545 | $7,885,495 | 172% | | **General and administrative** | $4,520,403 | $2,009,429 | $2,510,974 | 125% | | **Total Operating Expenses** | **$16,996,443** | **$6,599,974** | **$10,396,469** | **158%** | | | Year Ending Dec 31, 2021 | Year Ending Dec 31, 2020 | Change from Prior Year ($) | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | **Net Loss** | $18,631,381 | $6,715,564 | $11,915,817 | 177% | - The increase in R&D expenses was primarily due to **$3.5 million in cashless option exercise expenses** and a **$3.3 million increase in salary expenses**[276](index=276&type=chunk) - The increase in G&A expenses was primarily due to a **$2.0 million increase in salary expenses** and Nasdaq uplisting costs[279](index=279&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Item%207.%20MD%26A.Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from common stock sales, ending 2021 with **$23.4 million in cash**, believed sufficient to fund operations through December 2023 - The company's primary cash source is common stock sales to Lincoln Park, with **$13.4 million remaining** under the current purchase agreement[284](index=284&type=chunk)[285](index=285&type=chunk) - The company believes it has sufficient funds to finance operations through **December 2023**, with expected monthly expenditures of approximately **$1.015 million** over the next 12 months[288](index=288&type=chunk) | Cash Flow Item | For the Year Ended Dec 31, 2021 | For the Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(10,038,626) | $(4,873,863) | | Net cash used in investing activities | $(1,116,179) | $(217,984) | | Net cash provided by financing activities | $31,280,827 | $6,162,093 | | **Cash and cash equivalents - End of Year** | **$23,432,612** | **$3,306,590** | [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has minimal market risk exposure, holding **$23.4 million in highly liquid cash and equivalents**, and does not use market risk sensitive instruments for hedging - The company holds no market risk sensitive instruments for trading or speculative purposes and has concluded it does not have a material financial market risk exposure[299](index=299&type=chunk)[301](index=301&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2021, management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2021[304](index=304&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2021, based on the COSO framework[305](index=305&type=chunk) - No material changes in internal control over financial reporting occurred during the fourth fiscal quarter[309](index=309&type=chunk) Part III Information for Items 10-14, including Directors, Executive Compensation, and Security Ownership, is incorporated by reference from the definitive proxy statement to be filed within 120 days [Directors, Executive Officers and Corporate Governance](index=55&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the definitive proxy statement - Information required under this item will be contained in the definitive proxy statement to be filed within **120 days of December 31, 2021**[313](index=313&type=chunk) [Executive Compensation](index=55&type=section&id=Item%2011.%20Executive%20Compensation) Information is incorporated by reference from the definitive proxy statement - Information required under this item will be contained in the definitive proxy statement to be filed within **120 days of December 31, 2021**[314](index=314&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=55&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information is incorporated by reference from the definitive proxy statement - Information required under this item will be contained in the definitive proxy statement to be filed within **120 days of December 31, 2021**[315](index=315&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=55&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information is incorporated by reference from the definitive proxy statement - Information required under this item will be contained in the definitive proxy statement to be filed within **120 days of December 31, 2021**[316](index=316&type=chunk) [Principal Accountant Fees and Services](index=55&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information is incorporated by reference from the definitive proxy statement - Information required under this item will be contained in the definitive proxy statement to be filed within **120 days of December 31, 2021**[317](index=317&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the audited financial statements and all exhibits filed as part of the Form 10-K report, including corporate governance documents and material contracts - This section lists the financial statements and exhibits filed with the Form 10-K[319](index=319&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 001-40766 Lightwave Logic, Inc. (Exact name of registrant ...

Part I Financial Information [Item 1 Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) The unaudited financial statements for the period ended June 30, 2021, show the company is in a development stage with no revenue, a significant increase in net loss, a strengthened balance sheet from financing, and decreased total liabilities [Balance Sheets](index=6&type=section&id=Balance%20Sheets) As of June 30, 2021, the company's balance sheet shows total assets increased to $18.0 million, driven by a fourfold increase in cash, while total liabilities decreased and stockholders' equity grew substantially Condensed Consolidated Balance Sheets (Unaudited) | Financial Metric | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $13,913,519 | $3,306,590 | | Total Current Assets | $14,346,036 | $3,873,775 | | Total Assets | $17,994,174 | $7,366,778 | | **Liabilities & Equity** | | | | Total Current Liabilities | $487,542 | $933,032 | | Total Liabilities | $1,037,301 | $1,591,332 | | Total Stockholders' Equity | $16,956,873 | $5,775,446 | [Statements of Comprehensive Loss](index=7&type=section&id=Statements%20of%20Comprehensive%20Loss) The company reported no net sales, with the net loss widening to $4.5 million in Q2 2021 and $6.3 million for the six-month period, driven by higher research and development expenses and commitment fees Condensed Consolidated Statements of Comprehensive Loss (Unaudited) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $0 | $0 | $0 | $0 | | Research and development | $2,782,243 | $1,057,470 | $4,129,785 | $2,247,241 | | General and administrative | $674,000 | $574,803 | $1,222,229 | $1,181,228 | | Loss from Operations | ($3,456,243) | ($1,632,273) | ($5,352,014) | ($3,428,469) | | Net Loss | ($4,539,485) | ($1,663,928) | ($6,274,529) | ($3,491,102) | | Basic and Diluted Loss per Share | ($0.04) | ($0.02) | ($0.06) | ($0.04) | [Statement of Stockholders' Equity](index=8&type=section&id=Statement%20of%20Stockholders'%20Equity) For the six months ended June 30, 2021, total stockholders' equity increased from $5.8 million to $17.0 million, primarily driven by a $14.0 million capital raise from issuing common stock - Key changes in stockholders' equity include the issuance of **8,062,500 common shares**, raising **$13,973,249** - A net loss of **$6,274,529** increased the accumulated deficit - Various other equity transactions included option and warrant exercises[22](index=22&type=chunk) [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2021, a net cash increase of $10.6 million was driven by $14.3 million in financing activities, offsetting cash used in operating and investing activities Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity (Six Months Ended June 30) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,991,879) | ($2,344,201) | | Net cash used in investing activities | ($654,699) | ($38,978) | | Net cash provided by financing activities | $14,253,507 | $2,369,148 | | **Net increase (decrease) in cash** | **$10,606,929** | **($14,031)** | [Notes to Financial Statements](index=11&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's business, confirm cash sufficiency through November 2022, mention a new $100 million shelf registration, and confirm the forgiveness of a PPP loan - The company is focused on developing next-generation photonic devices and non-linear optical polymer materials for high-speed fiber-optic data communications and optical computing markets[32](index=32&type=chunk) - Management projects monthly expenditures of approximately **$816,000** and believes its current cash position will finance operations through **November 2022**, with a **$100 million** universal shelf registration statement effective in July 2021 to support future capital requirements[43](index=43&type=chunk) - The company's **$410,700** Paycheck Protection Program (PPP) loan, received in April 2020, was forgiven in its entirety by the Small Business Administration on January 22, 2021[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's development-stage status, business strategy, increased net loss due to R&D spending, and enhanced liquidity from stock sales sufficient to fund operations through late 2022 [Overview](index=21&type=section&id=Overview) Lightwave Logic is a development-stage company commercializing proprietary organic polymer-based electro-optic photonic devices for the data and telecommunications sectors - The company is moving toward commercialization of electro-optic photonic devices made on its PIC technology platform using proprietary high-stability organic polymers[83](index=83&type=chunk) - Key differentiators at the device level are **higher speed**, **lower power consumption**, **simplicity of manufacturing**, and **reliability**[84](index=84&type=chunk) [Business Strategy and Development](index=22&type=section&id=Business%20Strategy%20and%20Development) The company's strategy focuses on commercializing its polymer materials and PICs, targeting the cloud, data center, and telecom markets to address industry scaling issues related to cost per Gbps - The business strategy anticipates revenue from technology licensing, joint ventures, or direct sale of electro-optic device components[94](index=94&type=chunk) - Initial modulator products are expected to operate at data rates of at least **50 Gbaud**, with development underway for the next industry node of **100 Gbaud**[96](index=96&type=chunk) - The company's technology is positioned to address the growing gap between customer cost expectations ($/Gbps) and the performance of existing PIC-based technologies in the fiber optic market[115](index=115&type=chunk)[117](index=117&type=chunk) [Recent Significant Events and Milestones](index=26&type=section&id=Recent%20Significant%20Events%20and%20Milestones) The company achieved key milestones including new patents, breakthrough test results for modulators exceeding 100GHz bandwidth, and improved thermal properties for its polymers - In June 2021, the company announced that new modulators demonstrated electro-optical bandwidths **exceeding 100GHz**, achieving **triple the data rate** of competing devices[144](index=144&type=chunk) - A U.S. patent (11,042,051) was received in June 2021 for a new device design that enables **mass-volume manufacturing** and **direct-drive, low-voltage operation**[145](index=145&type=chunk) - In August 2021, the company announced improved thermal design properties for its electro-optic polymers, enabling **greater stability and design flexibility** for high-volume silicon foundry processes[146](index=146&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) With no revenue, the net loss for Q2 2021 increased 173% to $4.5 million and 80% to $6.3 million for the six-month period, driven by higher R&D expenses including a significant non-cash charge Operating Expense Comparison (Three Months Ended June 30) | Expense Comparison (Three Months Ended June 30) | 2021 | 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $2,782,243 | $1,057,470 | +$1,724,773 | +163% | | General and administrative | $674,000 | $574,803 | +$99,197 | +17% | | **Total Operating Expenses** | **$3,456,243** | **$1,632,273** | **+$1,823,970** | **+112%** | Net Loss Comparison (Six Months Ended June 30) | Net Loss Comparison (Six Months Ended June 30) | 2021 | 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $6,274,529 | $3,491,102 | +$2,783,427 | +80% | - The increase in R&D expense for Q2 2021 was primarily due to a non-cash expense of approximately **$1.3 million** for cashless option exercises, which was not present in the 2020 period[152](index=152&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on stock sales, with a cash balance of $13.9 million as of June 30, 2021, providing a runway through November 2022, and a new $100 million shelf registration for future funding - The company's cash position of **$13.9 million** as of June 30, 2021 is expected to finance operations through **November 2022**, based on an estimated monthly expenditure of **$816,000**[167](index=167&type=chunk)[170](index=170&type=chunk) - A new **$100 million** universal shelf registration statement became effective on July 9, 2021, providing a vehicle for future capital raises[166](index=166&type=chunk)[170](index=170&type=chunk) - The purchase agreement with Lincoln Park, which allowed for the sale of up to **$25 million** in common stock, was completed as of June 30, 2021[171](index=171&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has indicated that this section is not applicable - The company, as a smaller reporting company, is not required to provide the information under this item[180](index=180&type=chunk) [Item 4 Controls and Procedures](index=37&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal controls during the quarter - Management concluded that as of June 30, 2021, the company's disclosure controls and procedures were **effective**[181](index=181&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[182](index=182&type=chunk) Part II Other Information [Item 2 Recent Sales of Unregistered Securities](index=38&type=section&id=Item%202%20Recent%20Sales%20of%20Unregistered%20Securities) In June 2021, the company issued 200,000 shares of common stock through three unregistered warrant exercise transactions, relying on the Section 4(a)(2) exemption Unregistered Sales of Common Stock (June 2021) | Date | Security | Shares | Price per Share | | :--- | :--- | :--- | :--- | | June 2021 | Common Stock | 150,000 | $0.63 | | June 2021 | Common Stock | 25,000 | $0.64 | | June 2021 | Common Stock | 25,000 | $0.67 | [Item 6 Exhibits](index=38&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive employment agreement amendments, Sarbanes-Oxley certifications, and Inline XBRL data files - The exhibits filed with this report include amendments to executive employment agreements, CEO and CFO certifications (Rule 13a-14(a) and Section 906), and interactive data files (Inline XBRL)[186](index=186&type=chunk) [Signatures](index=40&type=section&id=Signatures) The report is duly signed and authorized by the company's Chief Executive Officer and President, Chief Operating Officer on August 16, 2021

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 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 0-52567 Lightwave Logic, Inc. (Exact name of registrant as specified ...

Financial Performance - The company had no revenues for the years ended December 31, 2020 and 2019, as it is in various stages of photonic device and material development [270]. - Operating expenses increased from $6,319,407 in 2019 to $6,599,974 in 2020, an increase of $280,567, primarily due to higher wages and salaries, investor relation expenses, and legal fees [273]. - Research and development expenses rose from $4,319,295 in 2019 to $4,529,498 in 2020, an increase of $210,203, driven by higher salaries and wages [274]. - The net loss decreased slightly from $6,726,967 in 2019 to $6,715,564 in 2020, a reduction of $11,403, attributed to lower commitment fees and travel expenses [292]. Cash Flow and Financial Position - Cash and cash equivalents totaled $3,306,590 as of December 31, 2020, with total assets of $7,366,778 and stockholders' equity of $5,775,446 [295]. - For the year ended December 31, 2020, net cash used in operating activities was $4,873,863, primarily due to a net loss of $6,715,564 [301]. - Net cash used by investing activities for the year ended December 31, 2020 was $217,984, primarily for the new Colorado headquarters and labs [302]. - Net cash provided by financing activities for the year ended December 31, 2020 was $6,162,093, consisting of $1,658,442 from warrant exercises and $5,173,300 from resale of common stock [303]. - For the year ended December 31, 2019, net cash used in operating activities was $4,765,845, primarily due to a net loss of $6,726,967 [304]. - Net cash used by investing activities for the year ended December 31, 2019 was $305,670, mainly for the new Colorado headquarters and labs [305]. - Net cash provided by financing activities for the year ended December 31, 2019 was $5,133,234, consisting of $5,638,960 from resale of common stock [305]. - The current cash position allows the company to finance operations through December 2021 before needing to replenish cash reserves [297]. - The company has no debt to service, which supports its operational flexibility [297]. Future Outlook and Plans - The company expects to continue incurring substantial research and development expenses to support the commercialization of its photonic devices and materials platform [276]. - The company plans to create a portfolio of commercial electro-optic polymer product devices targeting telecommunications and data communications markets [267]. - Initial modulator products are expected to operate at data rates of at least 50 Gbaud, with development ongoing for 100 Gbaud capabilities [268]. - The company expects to incur approximately $700,000 in expenditures per month over the next 12 months [297]. - The company entered into a Purchase Agreement with Lincoln Park to purchase up to $25,000,000 of common stock over a 36-month period [299]. - The company has satisfied its capital requirements primarily through the issuance and sale of common stock since inception [269].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 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 0-52567 Lightwave Logic, Inc. (Exact name of registrant as specified in its charter) ...

Washington, D.C. 20549 FORM 10- Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Nevada 82-049-7368 (State or other jurisdiction of incorporation or organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 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 0-52567 Lightwave Logic, Inc ...