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 ...

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 ____________ ...

Financial Performance - The company reported no revenues for the years ended December 31, 2019, and December 31, 2018, as it is in various stages of photonic device and material development [222]. - The net loss for the year ended December 31, 2019, was $6,726,967, compared to a net loss of $5,772,958 in 2018, reflecting an increase of approximately 16.5% [245]. - For the year ended December 31, 2018, net cash used in operating activities was $4,400,965, primarily due to a net loss of $5,772,958 [259]. Operating Expenses - Operating expenses increased to $6,319,407 for the year ended December 31, 2019, from $5,601,016 in 2018, marking an increase of approximately 12.8% [223]. - Research and development expenses rose to $4,319,295 in 2019, up from $3,794,565 in 2018, an increase of about 13.8% [224]. - General and administrative expenses increased to $2,000,112 in 2019 from $1,806,451 in 2018, an increase of about 10.7% [236]. - Other expenses increased to $407,560 in 2019 from $171,942 in 2018, a rise of approximately 136.5% [244]. Cash Flow - 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 [256]. - Net cash used in investing activities for the year ended December 31, 2019 was $305,670, mainly for the new Colorado headquarters facility and labs [257]. - Net cash provided by financing activities for the year ended December 31, 2019 was $5,133,234, consisting of $5,638,960 from the resale of common stock to an institutional investor [257]. - As of December 31, 2019, cash and cash equivalents totaled $2,236,344, with total assets of $6,824,856 and stockholders' equity of $4,907,714 [251]. - Net cash used by investing activities for the year ended December 31, 2018 was $1,432,363, primarily for the new Colorado headquarters facility [260]. - Net cash provided by financing activities for the year ended December 31, 2018 was $4,525,626, including $4,863,535 from the resale of common stock [261]. Future Expectations - The company expects its initial modulator products to operate at data rates of at least 50 Gbaud, with plans to develop technology for 100 Gbaud [220]. - The company plans to continue incurring substantial research and development expenses to support the commercialization of its photonic devices and materials platform [226]. - The company expects to incur approximately $587,000 of expenditures per month over the next 12 months, with cash requirements increasing as operations expand [253]. - The company has no debt to service and expects to maintain operations through May 2020 with current cash reserves [253]. - 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 [254]. Compensation and Equity - As of December 31, 2019, there was $436,637 of unrecognized compensation expense related to non-vested market-based share awards expected to be recognized through September 30, 2021 [250]. - The company aims to grow its commercial device development capabilities and maintain strategic relationships with major telecommunications companies [218].

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].

Financial Performance - Net loss for the three months ending March 31, 2019, was $2,018,778, compared to a net loss of $1,513,399 for the same period in 2018, indicating an increase in loss of approximately 33.3%[19] - Basic and diluted loss per share for the three months ending March 31, 2019, was $0.03, compared to $0.02 for the same period in 2018[19] - Net loss increased by $505,379 to $2,018,778 for the three months ended March 31, 2019, compared to a net loss of $1,513,399 for the same period in 2018[133] Assets and Equity - Total assets increased to $6,121,273 as of March 31, 2019, compared to $5,451,592 as of December 31, 2018, representing a growth of approximately 12.2%[17] - Total stockholders' equity decreased to $4,812,435 as of March 31, 2019, from $4,907,062 as of December 31, 2018, a decline of approximately 1.9%[17] - Cash and cash equivalents at the end of the period were $2,285,631, an increase from $2,174,625 at the beginning of the period, marking a rise of about 5.1%[24] Research and Development - Research and development expenses rose to $1,152,053 for the three months ending March 31, 2019, up from $901,672 in the same period of 2018, reflecting a growth of approximately 27.8%[19] - The company expects to continue incurring substantial research and development expenses to support commercialization of its photonic devices and materials[117] - The company is developing polymer materials for 100Gbps single-channel operation, with bandwidths exceeding 100GHz demonstrated at an international conference[96] Operating Activities - The company reported a net cash used in operating activities of $1,146,584 for the three months ending March 31, 2019, compared to $1,048,251 for the same period in 2018[24] - Net cash used in operating activities was $1,146,584 for the three months ended March 31, 2019, compared to $1,048,251 for the same period in 2018[136][145] Financing Activities - The company issued 2,000,000 common shares to an institutional investor, raising $1,419,585 in financing activities during the three months ending March 31, 2019[24] - The institutional investor purchased 1,550,000 shares of common stock for proceeds of $1,011,585 during the three-month period ending March 31, 2019[59] - The company signed a Purchase Agreement in January 2019 to sell up to $25,000,000 of common stock, with $24,592,000 remaining available as of March 31, 2019[38] Expenses - Operating expenses for the three months ended March 31, 2019, were $1,720,483, an increase of $244,216 from $1,476,267 in the same period in 2018[114] - General and administrative expenses decreased by $6,165 to $568,430 for the three months ended March 31, 2019, compared to $574,595 for the same period in 2018[125] - Other expenses increased by $261,163 to $298,295 for the three months ended March 31, 2019, from $37,132 for the same period in 2018[132] Strategic Development - 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[28] - The company is in various stages of development and evaluation with potential customers and strategic partners, aiming to secure a revenue stream from datacom and telecom devices[28] - The company aims to grow its commercial device development capabilities and maintain strategic relationships with major telecommunications and data communications companies[86] Future Expectations - The company expects general and administrative expenses to increase in future periods due to higher corporate and administrative activities[131] - The company anticipates incurring approximately $535,000 of expenditures per month over the next 12 months[138]