UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q ____________________ (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 369 Inverness Parkway, Suite 350 Englewood, CO (Address of principal executive offices) (720) 340-4949 For the transition period from ____________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ¨ 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) (State or other ...

Financial Performance - The company reported a net loss of $5,243,819 for the nine months ending September 30, 2019, compared to a net loss of $4,509,172 for the same period in 2018, indicating an increase in losses of about 16%[18]. - Basic and diluted loss per share for the nine months ending September 30, 2019, was $0.06, consistent with the loss per share for the same period in 2018[18]. - For the nine months ending September 30, 2019, the net loss was $5,243,819, compared to a net loss of $4,509,172 for the same period in 2018, representing an increase in loss of approximately 16.3%[26]. - The company reported a net loss of $1,609,212 for the three months ended September 30, 2019, compared to a net loss of $1,497,701 for the same period in 2018, an increase of $111,511[137]. - Net loss increased by $734,647 to $5,243,819 for the nine months ended September 30, 2019, compared to $4,509,172 for the same period in 2018[161]. Assets and Liabilities - Total assets increased to $6,602,627 as of September 30, 2019, compared to $5,451,592 at December 31, 2018, representing a growth of approximately 21%[17]. - The total stockholders' equity as of September 30, 2019, was $4,760,312, down from $4,907,062 at December 31, 2018, showing a decrease of about 3%[17]. - Total liabilities increased to $1,842,315 as of September 30, 2019, compared to $544,530 at December 31, 2018, marking a significant increase of approximately 238%[17]. - The accumulated deficit increased to $62,772,788 as of September 30, 2019, from $57,528,969 at December 31, 2018, indicating a rise in the deficit of about 9%[17]. - Cash and cash equivalents decreased slightly to $2,167,777 as of September 30, 2019, from $2,174,625 at December 31, 2018[17]. Research and Development - Research and development expenses for the nine months ending September 30, 2019, were $3,355,887, up from $2,830,785 in the same period of 2018, reflecting a year-over-year increase of approximately 18%[18]. - The company expects to continue incurring substantial research and development expenses to support the commercialization of its photonic devices and materials platform[123]. - The company is developing several optical devices utilizing polymer optical materials, including proprietary organic electro-optic polymer material systems[89]. - The company is focused on creating organic polymer-enabled electro-optic modulators for telecommunications and data communications markets[87]. - The company has integrated the acquired polymer technology into its PIC platform, enhancing its competitive position in the 400Gbps integrated photonics marketplace[107]. Financing Activities - The company reported net cash provided by financing activities of $3,815,085 for the nine months ending September 30, 2019, compared to $3,393,430 in the same period of 2018, indicating an increase of approximately 12.4%[26]. - The institutional investor purchased 3,900,000 shares of common stock for proceeds of $3,154,000 during the nine months ended September 30, 2019[60]. - The company entered into a purchase agreement with Lincoln Park Capital Fund, LLC for up to $25,000,000 of common stock over a 36-month period[168]. Operating Expenses - Operating expenses increased from $4,374,026 for the nine months ended September 30, 2018, to $4,870,118 for the same period in 2019, representing an increase of $496,092[139]. - Wages and salaries increased from $1,302,560 for the nine months ended September 30, 2018, to $1,550,601 for the same period in 2019, an increase of $248,041[143]. - General and administrative expenses decreased by $29,010 to $1,514,231 for the nine months ended September 30, 2019 compared to $1,543,241 for the nine months ended September 30, 2018[152]. - Rent expenses for the nine months ended September 30, 2019, were $84,582 for research and development and $28,194 for general and administrative expenses[54]. Future Expectations - The company expects to generate revenue from datacom and telecom devices, sales of non-linear optical polymers, and product development agreements prior to moving into full-scale production[29]. - The company anticipates an increase in general and administrative expenses as it scales operations and prepares for future production and sales of its products[135]. - The company expects initial modulator products to operate at data rates of at least 50 Gbaud, capable of 50 Gbps with standard data encoding and 100 Gbps with more complex PAM-4 encoding[88]. - The company anticipates revenue from technology licensing, joint ventures, and direct sales of electro-optic device components[86]. Stock and Equity - The company issued 5,450,000 common shares to an institutional investor during the nine-month period ending September 30, 2019[21]. - As of September 30, 2019, options to purchase 4,450,000 shares of common stock have been issued and are outstanding under the 2007 Employee Stock Plan[61]. - The 2016 Equity Incentive Plan was increased from 3,000,000 to 8,000,000 shares available for issuance, with 3,178,750 shares issued and outstanding as of September 30, 2019[63]. - Total share-based compensation recognized for the nine months ended September 30, 2019, was $557,596, compared to $401,807 for the same period in 2018[66]. Lease and Facilities - The company entered into a lease for approximately 13,420 square feet of office and research space in Colorado, with a base rent of approximately $168,824 for the first year, increasing by 3% annually[49]. - The aggregate minimum future lease payments under operating leases total $1,033,475, with the largest payment of $213,781 due in 2023[53]. - As of January 1, 2019, the operating lease right-of-use asset and liability amounted to $885,094, with no cumulative-effect adjustment to retained earnings[51].

Financial Performance - The net loss for the six months ending June 30, 2019, was $3,634,607, compared to a net loss of $3,011,471 for the same period in 2018, indicating a 21% increase in losses[18]. - Basic and diluted loss per share for the six months ending June 30, 2019, was $(0.04), consistent with the loss per share for the same period in 2018[18]. - The net loss for the three months ended June 30, 2019 was $1,615,829, an increase of $117,757 compared to the same period in 2018[142]. - Net loss increased by $623,136, from $3,011,471 to $3,634,607, due to higher commitment fees, salaries, and other expenses[165]. Revenue and Sales - The company reported no net sales for the three and six months ending June 30, 2019, maintaining the same status as in 2018[18]. - The company had no revenues during the three months ended June 30, 2019 and June 30, 2018, and expects the next revenue stream to come from product development agreements and prototype devices[124][143]. Assets and Liabilities - Total assets increased to $6,815,015 as of June 30, 2019, compared to $5,451,592 at December 31, 2018, representing a growth of 25%[17]. - Total liabilities rose to $1,991,138 as of June 30, 2019, compared to $544,530 at December 31, 2018, marking a significant increase of 266%[17]. - Cash and cash equivalents increased to $2,203,015 as of June 30, 2019, from $2,174,625 at December 31, 2018, a rise of 1.3%[17]. - Total stockholders' equity decreased to $4,823,877 as of June 30, 2019, from $4,907,062 at December 31, 2018, reflecting a decline of 1.7%[17]. Research and Development - Research and development expenses for the six months ending June 30, 2019, were $2,221,514, up 20% from $1,846,025 in the same period of 2018[18]. - The company expects to continue incurring substantial research and development expenses to support the commercialization of its photonic devices and materials platform[128][147]. - The company has made significant progress in integrating new polymer technology into its photonic integrated circuit (PIC) platform since acquiring intellectual property assets in June 2018[115]. - Research and development expenses rose from $944,353 in Q2 2018 to $1,069,460 in Q2 2019, reflecting increased salaries and laboratory materials[126]. Operating Expenses - Operating expenses increased from $1,454,225 in Q2 2018 to $1,573,687 in Q2 2019, primarily due to increases in salaries, non-cash stock option amortization, and laboratory supplies[125]. - For the six months ended June 30, 2019, operating expenses totaled $3,294,171, up from $2,930,492 in the same period of 2018, driven by higher salaries and consulting expenses[144]. - Wages and salaries increased by $184,407 from $838,798 for the six months ended June 30, 2018, to $1,023,205 for the six months ended June 30, 2019, primarily due to an increase in full-time technical personnel[148]. Financing Activities - The company issued 3,575,000 shares to institutional investors, raising approximately $2,819,210 in additional paid-in capital during the six-month period[21]. - The company reported a net cash provided by financing activities of $2,597,723 for the six months ending June 30, 2019, compared to $2,013,906 in the same period of 2018, reflecting a 28.9% increase[30]. - The company entered into a purchase agreement with Lincoln Park Capital Fund, LLC, to purchase up to $25,000,000 of common stock over a 36-month period[172]. Lease and Rent Expenses - Operating lease liability increased to $885,094 as of June 30, 2019, reflecting the adoption of new lease accounting standards[17]. - The Company entered into a lease for approximately 13,420 square feet of office and research space in Colorado, with a base rent of approximately $168,824 for the first year, increasing by 3% annually[55]. - Rent expenses for the six months ended June 30, 2019, included $56,818 in research and development and $18,939 in general and administrative expenses[59]. Employee Compensation - The Company recognized total share-based compensation of $391,652 for the six months ended June 30, 2019, compared to $290,208 for the same period in 2018[72]. - For the six months ending June 30, 2019 and 2018, the company charged $21,157 and $9,763 to expense for 401(k) retirement plan contributions for eligible non-executive participants[81]. Future Outlook - The company is focused on developing next-generation photonic devices and expects to generate revenue from datacom and telecom devices, as well as sales of non-linear optical polymers[33]. - Future expenditures are expected to be approximately $570,000 per month over the next 12 months, with cash requirements increasing in line with revenue growth[170]. - The company is targeting cloud computing and data centers, which require high-performance interconnects over distances greater than 10 km[110]. Internal Controls and Compliance - The Company's management evaluated the effectiveness of disclosure controls and procedures as of June 30, 2019, concluding they were effective[182]. - There were no changes in internal control over financial reporting during the quarter ended June 30, 2019, that materially affected internal controls[183].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q ____________________ (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 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 spe ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Lightwave Logic develops proprietary electro-optic polymer systems and PICs for telecommunications and data centers, targeting high-speed data communication markets - Lightwave Logic is a **development-stage company** focused on creating advanced organic electro-optic polymer systems and **Photonic Integrated Circuits (PICs)** for the telecommunication and data center markets[20](index=20&type=chunk) - The company's core technology is based on **proprietary organic polymers** designed to be more stable, cost-efficient, and higher-performing than legacy inorganic crystalline materials[21](index=21&type=chunk)[35](index=35&type=chunk) - Key product development milestones include achieving modulator performance suitable for **50Gbps data rates**, which enables **400Gbps systems** using PAM-4 encoding[41](index=41&type=chunk)[64](index=64&type=chunk) - The company's intellectual property portfolio consists of **45 granted patents** and was significantly enhanced by the **2018 acquisition** of polymer technology assets from BrPhotonics[54](index=54&type=chunk)[55](index=55&type=chunk) - In 2018, the company consolidated its operations into a new **13,420 sq. ft. facility** in **Englewood, Colorado**, which includes advanced cleanrooms and laboratories to streamline R&D[65](index=65&type=chunk)[128](index=128&type=chunk) - The business strategy includes generating revenue through **technology licensing, joint ventures, or direct sales** of its electro-optic device components[94](index=94&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including substantial operating losses, capital needs, market acceptance challenges, and reliance on key personnel - The company has a history of substantial operating losses, incurring a **net loss of $5.8 million in 2018**, and anticipates continued losses as it is still in the research and development phase[131](index=131&type=chunk) - There is a significant risk that the company may not be able to **secure additional capital** required to continue operations **beyond June 2019**, which could force it to limit its activities[137](index=137&type=chunk) - The company's products face a **lengthy and expensive customer qualification process**, which can take several months or more without any guarantee of future sales[149](index=149&type=chunk) - The telecommunications market, a key target, has **historically not accepted polymer modulators**, and the data communications market is **highly competitive** with established technologies like silicon photonics and Indium Phosphide[153](index=153&type=chunk)[154](index=154&type=chunk) - The company's success is **highly dependent on key personnel**, particularly CEO Dr. Michael Lebby and President/COO James S. Marcelli[172](index=172&type=chunk) - The complexity of the company's products may lead to **errors or defects**, which could require **costly redesigns** and damage the company's reputation with potential customers[175](index=175&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unsolved%20Staff%20Comments) Not applicable [Properties](index=36&type=section&id=Item%202.%20Properties) The company's principal executive offices and R&D facility are located in a 13,420 square foot leased space in Englewood, Colorado - The company's main facility is a **13,420 square foot space** in **Englewood, Colorado**, which houses its executive offices, laboratories, and research and development operations[198](index=198&type=chunk) - The facility includes a **1,000 sq. ft. class 1,000 cleanroom**, a 500 sq. ft. class 10,000 cleanroom, and a 220 sq. ft. class 100 cleanroom[128](index=128&type=chunk) [Legal Proceedings](index=36&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company is **not aware of any material litigation** or threatened litigation[199](index=199&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&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 trades on the OTCQB under "LWLG", with approximately 108 stockholders and no cash dividends paid to date - The company's common stock is traded on the **OTCQB** under the symbol "**LWLG**"[203](index=203&type=chunk) - As of March 15, 2019, there were approximately **108 holders** of the company's common stock[204](index=204&type=chunk) - **No cash dividends** have been declared or paid on common stock to date[205](index=205&type=chunk) Equity Compensation Plan Information as of December 31, 2018 | Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 6,755,000 | $0.86 | 765,000 | | Equity compensation plans not approved by security holders | 1,677,500 | $0.80 | 0 | | **Total** | **8,432,500** | **$0.85** | **765,000** | [Selected Financial Data](index=38&type=section&id=Item%206.%20Selected%20Financial%20Data) Not applicable [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Lightwave Logic, a development-stage company, reported no revenue and a net loss of $5.77 million in 2018, with increased operating expenses and cash used in operations - The company is in the development stage and generated **no revenues** in 2018 or 2017[251](index=251&type=chunk) Comparison of Fiscal 2018 to Fiscal 2017 | Metric | 2018 | 2017 | | :--- | :--- | :--- | | **Net Loss** | **($5,772,958)** | **($5,749,382)** | | Operating Expenses | $5,601,016 | $5,523,538 | | Research and Development | $3,794,565 | $3,519,129 | | General and Administrative | $1,806,451 | $2,004,409 | - The increase in operating expenses was primarily due to **higher salaries** from increased technical personnel, **depreciation on new equipment**, and **rent for the new consolidated facility**, offset by a decrease in non-cash stock-based compensation[252](index=252&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[259](index=259&type=chunk)[262](index=262&type=chunk) Cash Flow Summary | Cash Flow Activity | 2018 | 2017 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($4,400,965) | ($4,409,696) | | Net Cash Used in Investing Activities | ($1,432,363) | ($265,532) | | Net Cash Provided by Financing Activities | $4,525,626 | $6,200,711 | - The company believes it has **sufficient funds to finance operations through June 2019**, relying on its cash position and a purchase agreement with Lincoln Park Capital for up to **$25 million** in common stock purchases over 36 months[284](index=284&type=chunk)[285](index=285&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Not applicable [Financial Statements and Supplementary Data](index=48&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section indicates the company's audited financial statements are attached as an appendix to the Form 10-K report - The company's Financial Statements are **attached as Appendix A** and are included as part of the Form 10-K Report[294](index=294&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=49&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Not applicable [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2018 - Management evaluated and concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[296](index=296&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective as of December 31, 2018**, based on the COSO framework[297](index=297&type=chunk) - The independent registered public accounting firm, Morison Cogen LLP, issued an **unqualified opinion** on the company's internal control over financial reporting as of December 31, 2018[300](index=300&type=chunk) [Other Information](index=49&type=section&id=Item%209B.%20Other%20Information) Not applicable Part III [Directors, Executive Officers and Corporate Governance](index=50&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's leadership includes key executives and a seven-member Board of Directors with an Audit Committee and adopted Code of Ethics - The executive team is led by **Dr. Michael Lebby, CEO**, and **James S. Marcelli, President & COO**[305](index=305&type=chunk) - The Board of Directors consists of **seven members** and is divided into **three classes with staggered three-year terms**[316](index=316&type=chunk) - The company has an **Audit Committee** comprised of Ronald A. Bucchi and Siraj Nour El-Ahmadi, with **Ronald A. Bucchi** identified as the audit committee **financial expert**[322](index=322&type=chunk) - A **Code of Ethics and Business Conduct** has been adopted and is available on the company's website[318](index=318&type=chunk) [Executive Compensation](index=53&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation primarily consists of base salary and equity incentives, with specific compensation details for key executives and directors in 2018 - The primary elements of executive compensation are **annual base salary** and **long-term equity incentive compensation** in the form of stock options[325](index=325&type=chunk) Summary Compensation Table (2018) | Name and Principal Position | Salary ($) | Option Awards ($) | All Other Compensation ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Dr. Michael S. Lebby, CEO | 265,000 | 38,448 | 2,840 | 306,288 | | James S. Marcelli, President | 250,000 | — | 2,355 | 252,355 | - Employment agreements for CEO Dr. Lebby and President Mr. Marcelli specify **base salaries ($265,000 and $250,000 respectively)**, stock option grants, and severance provisions for termination without cause or non-renewal[348](index=348&type=chunk)[350](index=350&type=chunk) - Non-employee director compensation in 2018 consisted primarily of **stock option awards**, with Dr. Frederick Leonberger also receiving **$108,000 in cash** for serving on the Operations Committee[354](index=354&type=chunk)[357](index=357&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=59&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of March 15, 2018, Mary Goetz was the only beneficial owner of more than 5% of common stock, with directors and officers holding 7.97% Security Ownership of Management (as of March 15, 2018) | Name and Title | Amount of Beneficial Ownership | % Owned | | :--- | :--- | :--- | | Michael Lebby, CEO & Director | 712,643 | * | | James S. Marcelli, President & Director | 1,553,400 | 1.92% | | Thomas E. Zelibor, Chair of the Board | 1,401,824 | 1.73% | | Joseph A. Miller, Jr., Director | 506,800 | * | | Ronald A. Bucchi, Director | 827,400 | 1.02% | | Siraj Nour El-Ahmadi, Director | 480,000 | * | | Frederick Leonberger, Director | 955,000 | 1.18% | | **Directors and Officers as a Group (7 Persons)** | **6,437,067** | **7.97%** | - **Mary Goetz** is the only reported beneficial owner of more than 5% of the company's common stock, with an ownership of **5.59%**[359](index=359&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=60&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company discloses a related party transaction with a director and identifies independent directors according to NASDAQ listing rules - A **related party transaction** exists with director **Dr. Frederick J. Leonberger**, who has served as a senior advisor to the company through his consulting firm, EOvation Advisors LLC[368](index=368&type=chunk) - The Board has determined that directors **Joseph A. Miller, Jr., Ronald A. Bucchi, and Siraj Nour El-Ahmadi are independent**[370](index=370&type=chunk) [Principal Accounting Fees and Services](index=61&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) The company incurred total fees of $87,000 from its independent accounting firm, Morison Cogen, LLP, for audit and tax services in 2018 Accounting Fees (Morison Cogen, LLP) | Fee Type | 2018 | 2017 | | :--- | :--- | :--- | | Audit Fees | $81,000 | $56,675 | | Audit-Related Fees | $0 | $0 | | Tax Fees | $6,000 | $6,000 | | All Other Fees | $0 | $0 | | **Total** | **$87,000** | **$62,675** | Part IV [Exhibits, Financial Statement Schedules](index=62&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 - This section provides a list of the **audited financial statements** and **all exhibits** filed with the Form 10-K[379](index=379&type=chunk) [Form 10-K Summary](index=64&type=section&id=Item%2016.%20Form%2010-K%20Summary) None Financial Statements [Report of Independent Registered Public Accounting Firm](index=67&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Morison Cogen LLP issued an unqualified opinion on Lightwave Logic's financial statements and internal control over financial reporting for 2018 - The auditor, Morison Cogen LLP, expressed an **unqualified opinion** that the financial statements are **presented fairly** in all material respects[393](index=393&type=chunk) - The auditor also expressed an **unqualified opinion** that the Company maintained **effective internal control** over financial reporting as of December 31, 2018[393](index=393&type=chunk) [Financial Statements Tables](index=69&type=section&id=Financial%20Statements%20Tables) The financial statements for 2018 show the development-stage company with no revenue, a $5.8 million net loss, and decreased total assets Balance Sheet Data (in thousands) | | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,175 | $3,482 | | Total Current Assets | $2,512 | $4,067 | | Total Assets | $5,251 | $5,850 | | **Liabilities & Equity** | | | | Total Current Liabilities | $344 | $649 | | Total Liabilities | $344 | $833 | | Total Stockholders' Equity | $4,907 | $5,017 | Statement of Operations Data (in thousands) | | Year Ended Dec 31, 2018 | Year Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net Sales | $0 | $0 | | Research and development | $3,795 | $3,519 | | General and administrative | $1,806 | $2,004 | | Loss from Operations | ($5,601) | ($5,524) | | **Net Loss** | **($5,773)** | **($5,749)** | | **Basic and Diluted Loss per Share** | **($0.08)** | **($0.08)** | Statement of Cash Flows Data (in thousands) | | Year Ended Dec 31, 2018 | Year Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net cash used in operating activities | ($4,401) | ($4,362) | | Net cash used in investing activities | ($1,432) | ($266) | | Net cash provided by financing activities | $4,526 | $6,153 | [Notes to Financial Statements](index=74&type=section&id=Notes%20to%20Financial%20Statements) The notes detail accounting policies, development-stage status, reliance on equity financing, asset valuations, and significant net operating loss carryforwards - The company is a **development-stage technology company** with significant risks, including the **need for future funding** to operationalize its technology[412](index=412&type=chunk)[413](index=413&type=chunk) - Management believes it has **sufficient funds to finance operations through June 2019**, relying on its cash position and a purchase agreement with an institutional investor for up to **$25 million**[437](index=437&type=chunk) - As of December 31, 2018, the company had **net operating loss carryforwards of approximately $44 million** available to offset future taxable income, expiring through 2038[455](index=455&type=chunk) - Total stock-based compensation expense recognized in 2018 was **$466,078**, down from **$1,211,672** in 2017[470](index=470&type=chunk) - As of December 31, 2018, there were outstanding options and warrants to purchase an aggregate of **18,964,867 shares** of common stock[472](index=472&type=chunk)