Financial Performance - The net loss for the six months ending June 30, 2022, was $7,358,359, compared to a net loss of $6,274,529 for the same period in 2021, reflecting an increase in losses of about 17.3%[17]. - The net loss for the three months ended June 30, 2022, was $3,802,598, a decrease of 16% from $4,539,485 for the same period in 2021[168]. - The company incurred a net loss of $7,358,359 for the six months ended June 30, 2022, and a net loss of $18,631,381 for the year ended December 31, 2021, with an accumulated deficit of $96,961,240 as of June 30, 2022[201]. - The company anticipates continuing to incur operating losses through at least 2022, as it focuses on research and development of electro-optic polymer materials technologies[201]. - Other income (expenses) decreased by 97% to $(34,246) for the three months ended June 30, 2022, compared to $(1,083,242) for the same period in 2021[167]. - Other income improved significantly, decreasing to a loss of $79,438 for the six months ended June 30, 2022, from a loss of $922,515 in the same period in 2021, representing a 91% improvement[173]. Assets and Liabilities - Total assets increased to $29,007,064 as of June 30, 2022, compared to $27,228,575 on December 31, 2021, representing a growth of approximately 6.5%[16]. - Current assets rose to $25,613,045, up from $23,664,920, indicating an increase of about 8.2%[16]. - Total liabilities decreased significantly to $1,047,887 from $2,024,303, a reduction of approximately 48.2%[16]. - Cash and cash equivalents at the end of the period on June 30, 2022, were $24,829,749, up from $13,913,519 at the end of June 30, 2021, reflecting a year-over-year increase of approximately 78.6%[29]. - The total stockholders' equity as of June 30, 2022, was $27,959,177, up from $25,204,272, indicating an increase of about 10.9%[16]. - The company has no debt to service, which positions it favorably for future financing and operational flexibility[43]. Expenses - Research and development expenses for the three months ending June 30, 2022, were $2,781,215, slightly down from $2,797,505 in the same period of 2021[17]. - General and administrative expenses increased to $987,137 for the three months ending June 30, 2022, compared to $658,738 in the prior year, marking an increase of approximately 49.9%[17]. - Research and development expenses increased by 30% to $5,406,355 for the six months ended June 30, 2022, compared to $4,160,308 for the same period in 2021[170]. - General and administrative expenses rose by 57% to $1,872,566 for the six months ended June 30, 2022, compared to $1,191,706 for the same period in 2021[172]. - Stock options issued for services amounted to $2,798,550 for the six months ending June 30, 2022, compared to $528,249 for the same period in 2021, reflecting a significant increase in stock-based compensation[29]. Shareholder Activity - The company issued 875,000 common shares to an institutional investor, raising approximately $6.7 million in additional paid-in capital[20]. - The company issued common stock to institutional investors totaling $6,705,693 during the six months ending June 30, 2022[29]. - The total number of shares outstanding increased from 107,335,110 on June 30, 2021, to 111,887,124 on June 30, 2022, representing an increase of approximately 4.9%[26]. - The weighted average number of shares for basic loss per share was 111,593,709 for the three months ending June 30, 2022, compared to 104,125,843 for the same period in 2021[17]. - The company sold 150,000 shares of common stock at $1.48 per share and 25,000 shares at $0.75 per share during the reporting period without registering the securities[206]. Future Outlook - The company expects to incur approximately $1,300,000 in expenditures per month over the next 12 months, with current cash enabling operations through February 2024[43]. - The company expects to require additional capital to fund operations beyond February 2024, as it currently does not generate sufficient cash to finance its operations[203]. - The company plans to increase spending on research and development, marketing, and staffing to support future growth and commercialization of its products[182]. - The company has a remaining available amount of $8,304,532 under a purchase agreement with an institutional investor for common stock sales[43]. Product Development and Market Position - The company is focused on developing next-generation photonic devices and expects to generate revenue from technology licensing agreements and direct sales of electro-optic device components[32]. - The Company aims to optimize its business model through product development, patent licensing, and technology transfer to foundries, targeting applications in data communications and telecommunications markets[85]. - The Company has partnered with silicon-based foundries to scale its polymer modulator devices, demonstrating the ability to integrate its technology into standard production lines[84]. - The company aims to develop proprietary organic electro-optic polymer material systems and photonic devices based on its PIC technology to become a leading provider in the electro-optic device market[94]. - The market opportunity for fiber optic communications over distances greater than 10 km is projected to exceed $1 billion over the next decade[100]. Technological Advancements - The company announced a breakthrough in clean technology polymer materials, achieving over 100 GHz performance with low power requirements, addressing the demand for efficient data communications[123]. - The company achieved enhanced photostability results for its electro-optic polymer modulators, demonstrating no change in device performance after over 3000 hours of high-intensity optical power exposure[155]. - The company published a patent application for a hybrid electro-optic polymer modulator with silicon photonics, detailing a novel fabrication process for high-volume manufacturing[156]. - The company received U.S. Patent number 10,754,093 in October 2020, improving the performance and reliability of its electro-optic polymer modulators for datacenter applications[132]. - The company announced the development of a new sealant for its Chip-on-Board packaged polymer platform, which blocks atmospheric gases and improves robustness against environmental factors[137].

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)

Financial Performance - Total assets increased to $16.13 million as of September 30, 2021, compared to $7.37 million at the end of 2020, representing a 118.9% increase[17] - Cash and cash equivalents rose to $12.19 million from $3.31 million, marking a 269.5% increase year-over-year[17] - Total liabilities decreased to $1.15 million from $1.59 million, a reduction of 27.6%[17] - The net loss for the nine months ending September 30, 2021, was $10.52 million, compared to a loss of $5.11 million for the same period in 2020, reflecting a 106.5% increase in losses[18] - Basic and diluted loss per share for the three months ended September 30, 2021, was $0.04, compared to $0.02 for the same period in 2020[18] - The total cost of expenses for the nine months ended September 30, 2021, was $9.60 million, an increase of 91.5% from $5.02 million in the same period of 2020[18] - The company reported no net sales for the three and nine months ending September 30, 2021, maintaining the same status as the previous year[18] - For the nine months ending September 30, 2021, the net loss was $10,522,651, compared to a net loss of $5,108,985 for the same period in 2020, representing a 106% increase in losses year-over-year[28] - Net cash used in operating activities for the nine months ending September 30, 2021, was $4,299,499, an increase from $3,524,612 in the same period of 2020[28] - The company reported a net cash increase of $8,888,154 for the nine months ending September 30, 2021, compared to a decrease of $36,033 in the same period of 2020[28] Research and Development - Research and development expenses for the three months ended September 30, 2021, were $3.63 million, up 213.5% from $1.16 million in the same period of 2020[18] - The company is focused on developing next-generation photonic devices and expects to generate revenue from datacom and telecom devices, as well as product development agreements[31] - The company is developing electro-optic polymer devices expected to operate at data rates of at least 50 Gbaud, with plans to scale to 100 Gbaud[95] - The ridge waveguide modulator, Polymer Stack™, is designed to enable 50 Gbaud modulation in fiber-optic communications, targeting a market opportunity worth over $1 billion over the next decade[99] - The company anticipates that its revenue will derive from technology licensing, joint ventures, and direct sales of electro-optic device components[93] - The polymer photonic integrated circuits (PIC) are expected to enable ultra-miniaturization, potentially increasing the number of photonic functions on a semiconductor chip[90] - Initial testing of the polymer photonics slot waveguide modulators demonstrated speeds exceeding 30-35 GHz, significantly lower operating voltages compared to traditional inorganic modulators[104] - The company aims to develop a multichannel polymer photonic integrated circuit platform targeting data rates of 100 Gbaud, 400 Gbaud, 800 Gbaud, and beyond, with a scaling philosophy to reach 1.6 Tbps[106][107] - Polymer-based modulators are currently under development, with a roadmap indicating progression from 50 Gbaud to 100 Gbaud and beyond, aiming for commercial viability in the 400 Gbps transceiver market[107] - The company achieved world-record performance for a polymer modulator, transmitting 220 Gbit/s OOK and 408 Gbit/s 8PAM in an optical transmission experiment[148] Capital and Financing - The company issued 8.06 million shares to institutional investors, raising approximately $13.97 million in additional paid-in capital[21] - The company filed a $100,000,000 universal shelf registration statement, which became effective on July 9, 2021, to support future financing needs[42] - The company entered into a purchase agreement to sell up to $33,000,000 of common stock over a 36-month period, receiving $3,449,650 in October 2021[42] - The company received approximately $13.97 million in proceeds from the sale of common stock to an institutional investor during the nine months ended September 30, 2021[170] - The company has no debt to service as of September 30, 2021[173] Operational Expenses - The company expects to incur approximately $865,000 in expenditures per month over the next 12 months, with current cash position allowing operations to be financed through March 2023[42] - Rent expenses for the nine months ended September 30, 2021, totaled $100,399 for R&D and $33,466 for general and administrative expenses[56] - General and administrative expenses rose by 16% to $1,841,066 for the nine months ended September 30, 2021, from $1,591,660 in the prior year[163] - Other expenses increased by 911% to $(920,484) for the nine months ended September 30, 2021, compared to $(91,020) in the prior year[164] Stock and Shareholder Information - The company’s common stock began trading on the Nasdaq Capital Market, which is expected to enhance shareholder value and improve liquidity[146] - As of September 30, 2021, options to purchase 3,785,000 shares of common stock were issued and outstanding under the 2007 Employee Stock Plan[65] - Share-based compensation for the nine months ended September 30, 2021, totaled $799,197, compared to $548,736 for the same period in 2020[72] - The aggregate intrinsic value of options and warrants outstanding as of September 30, 2021, was $69,549,879, calculated based on a closing stock price of $9.46[74] - As of September 30, 2021, the company had 8,108,687 non-qualified stock options and warrants outstanding, with a weighted average exercise price of $0.88 and a remaining contractual life of 4.91 years[75] Legal and Compliance - The company received $410,700 from the Paycheck Protection Program, which was fully forgiven on January 22, 2021[57] - There was no income tax benefit for losses for the nine months ended September 30, 2021, as management determined the realization of net deferred tax assets was not assured[59] - The company reported no legal proceedings, risk factors, or defaults upon senior securities during the reporting period[190][193] - The certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act of 2002 were executed by the Principal Executive Officer and Principal Financial Officer of the company[196] Awards and Recognition - The company received the "Best Achievement in PIC Platform" award for its 100 GHz polymer platform, recognizing innovative advances in photonic integrated circuits[125] - The company received U.S. Patent number 10,591,755, enabling high-speed, low-power operation of electro-optic polymer modulators directly from CMOS IC chips, enhancing competitiveness in the market[136] - The company announced test results showing new modulators exceeded bandwidth design targets, achieving triple the data rate compared to competing devices, with bandwidths exceeding 100GHz[141] - The company received the 2021 Industry Award for Optical Integration from the European Conference on Optical Communications, recognizing significant innovation in photonics integration[147]

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 ...

Financial Performance - The company reported a net loss of $1,827,174 for the three months ending March 31, 2020, compared to a net loss of $2,018,778 for the same period in 2019, indicating an improvement of about 9.5%[19] - Basic and diluted loss per share improved to $(0.02) for Q1 2020, compared to $(0.03) for Q1 2019[19] - The net loss decreased to $1,827,174 for the three months ended March 31, 2020, from $2,018,778 for the same period in 2019, a reduction of $191,604[144] - The company reported no revenues for the three months ended March 31, 2020, and March 31, 2019, as it is in various stages of photonic device and material development[127] Assets and Equity - Total assets decreased to $6,401,796 as of March 31, 2020, down from $6,824,856 as of December 31, 2019, representing a decline of approximately 6.2%[17] - The total stockholders' equity decreased to $4,697,022 as of March 31, 2020, down from $4,907,714 as of December 31, 2019, a decline of approximately 4.3%[17] - Cash and cash equivalents at the end of the period were $2,028,259, a decrease of 9.3% from $2,236,344 at the beginning of the period[24] Expenses - Operating expenses increased to $1,796,196 for the three months ended March 31, 2020, compared to $1,720,483 for the same period in 2019, marking an increase of $75,713[128] - Research and development expenses increased to $1,189,771 for Q1 2020, up from $1,152,053 in Q1 2019, reflecting a rise of approximately 3.3%[19] - General and administrative expenses increased to $606,425 for the three months ended March 31, 2020, compared to $568,430 for the same period in 2019, an increase of $37,995[139] Cash Flow - The company experienced a net cash used in operating activities of $1,322,249 for Q1 2020, compared to $1,146,584 for Q1 2019, indicating an increase of approximately 15.4%[24] - Net cash used by investing activities was $13,504, including $8,149 for intangibles and $5,355 for asset additions related to the new Colorado headquarters[155] - Net cash provided by financing activities was $1,127,668, consisting of $1,352,113 from common stock resale, offset by $224,445 for equipment repayment[155] Financing Activities - The company issued 2,125,000 shares of common stock to an institutional investor, raising $1,352,113 in financing activities[24] - The Company signed a Purchase Agreement in January 2019 to sell up to $25,000,000 of common stock, issuing 350,000 shares as an initial commitment fee valued at $258,125[59] - As of March 31, 2020, the institutional investor purchased 8,275,000 shares for proceeds of $5,979,487, with an additional 194,338 shares issued as commitment fees valued at $156,513[59] - The Company received $410,700 in loan funding from the Paycheck Protection Program on April 24, 2020, to cover payroll, rent, and utility costs[74] Business Operations - The ongoing COVID-19 pandemic has led to a temporary curtailment of business operations, which is expected to negatively impact financial results, although the exact impact is currently undetermined[30] - Monthly expenditures are expected to be approximately $586,000 over the next 12 months[37] - The company has a cash position that allows operations to be financed through August 2020[37] - The company plans to increase spending on research and development, marketing, and workforce expansion to support business growth[157] Research and Development - The company is focused on developing next-generation photonic devices and expects to generate revenue from datacom and telecom devices in the future[28] - The Company is focused on developing next-generation electro-optic photonic devices using proprietary high-activity and high-stability organic polymers[79] - The Company aims to lower power consumption and improve reliability in its devices, having developed new materials in 2019 to further this goal[80] - The Company designs proprietary electro-optical modulation devices that convert electric signals into optical signals for high-speed data transmission[85] Market Opportunities - The market opportunity for interconnect reach distances greater than 10 km is estimated to exceed $1 billion over the next decade[95] - The company is targeting the cloud computing and data center markets, which are increasingly demanding high-speed, high-bandwidth solutions[103] Intellectual Property - The company has acquired 15 polymer chemistry patents, enhancing its competitive position in the 400 Gbps integrated photonics marketplace[114] - The company’s polymer materials have more than doubled the electro-optic response compared to previous materials, enabling optical device performance exceeding 100 GHz[117] Miscellaneous - There is no income tax benefit for the losses for the three months ended March 31, 2020, due to a valuation allowance for deferred tax assets[53] - The company has no unrecognized tax benefits as of January 1, 2020[54] - The company has no off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2020[159] - There were no changes in internal control over financial reporting that materially affected the company during Q1 2020[161]