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Lightwave Logic(LWLG) - 2024 Q3 - Quarterly Report
LWLGLightwave Logic(LWLG)2024-11-12 22:01

Cash and Cash Equivalents - Cash and cash equivalents decreased from 31.43millioninDecember2023to31.43 million in December 2023 to 26.88 million in September 2024, a decline of 14.5%[5] - Cash and cash equivalents at the end of the period were 26,882,467,downfrom26,882,467, down from 30,876,646 at the end of the same period in 2023[11] - Total cash and cash equivalents at the end of September 30, 2024 was 26,882,467[11]TotalCurrentAssets−Totalcurrentassetsdecreasedfrom26,882,467[11] Total Current Assets - Total current assets decreased from 32.70 million in December 2023 to 27.47millioninSeptember2024,adeclineof16.027.47 million in September 2024, a decline of 16.0%[5] Net Loss - Net loss for the three months ended September 30, 2024 was 5.30 million, compared to 5.16millioninthesameperiodin2023[6]−NetlossfortheninemonthsendedSeptember30,2024was5.16 million in the same period in 2023[6] - Net loss for the nine months ended September 30, 2024 was 17.00 million, compared to 16.10millioninthesameperiodin2023[6]−NetlossfortheninemonthsendedSeptember30,2024was16.10 million in the same period in 2023[6] - Net loss for the nine months ended September 30, 2024 was 17,000,508[7] - Net loss for the nine months ended September 30, 2023 was 16,098,356[8]−NetlossforthethreemonthsendedSeptember30,2024was16,098,356[8] - Net loss for the three months ended September 30, 2024 was 5,300,913[9] - Net loss for the three months ended September 30, 2023 was 5,164,591[10]−NetlossfortheninemonthsendedSeptember30,2024was5,164,591[10] - Net loss for the nine months ended September 30, 2024 was 17,000,508, compared to 16,098,356forthesameperiodin2023[11]−NetlossfortheninemonthsendedSeptember30,2024was16,098,356 for the same period in 2023[11] - Net loss for the nine months ended September 30, 2024 was 17.00 million, compared to 16.10millioninthesameperiodof2023[6]−NetlossforthethreemonthsendedSeptember30,2024was16.10 million in the same period of 2023[6] - Net loss for the three months ended September 30, 2024 was 5,300,913[9] Research and Development Expenses - Research and development expenses for the nine months ended September 30, 2024 were 12.81million,comparedto12.81 million, compared to 12.01 million in the same period in 2023[6] - Research and development expenses for the nine months ended September 30, 2024 were 12.81million,a6.712.81 million, a 6.7% increase from 12.01 million in the same period of 2023[6] General and Administrative Expenses - General and administrative expenses for the nine months ended September 30, 2024 were 4.64million,comparedto4.64 million, compared to 3.88 million in the same period in 2023[6] Total Liabilities - Total liabilities decreased from 5.35millioninDecember2023to5.35 million in December 2023 to 3.76 million in September 2024, a decline of 29.7%[5] - Total liabilities decreased from 5.35millionto5.35 million to 3.76 million, a decline of 29.7%[5] Total Stockholders' Equity - Total stockholders' equity decreased from 36.43millioninDecember2023to36.43 million in December 2023 to 33.47 million in September 2024, a decline of 8.1%[5] - Total stockholders' equity decreased from 36.43millionto36.43 million to 33.47 million, a decline of 8.1%[5] Net Sales - Net sales for the nine months ended September 30, 2024 were 72,688,comparedto72,688, compared to 0 in the same period in 2023[6] - Net sales for the nine months ended September 30, 2024 were 72,688,comparedto72,688, compared to 0 in the same period of 2023[6] Cost of Sales - Cost of sales for the nine months ended September 30, 2024 were 6,411,comparedto6,411, compared to 0 in the same period in 2023[6] - Cost of sales includes labor, material, and manufacturing overhead costs for producing materials under technology license agreements[16] Total Balance - Total balance at September 30, 2024 was 33,471,570[7]−TotalbalanceatSeptember30,2023was33,471,570[7] - Total balance at September 30, 2023 was 35,420,219[8] - Total balance at September 30, 2024 was 33,471,570[9]−TotalbalanceatSeptember30,2023was33,471,570[9] - Total balance at September 30, 2023 was 35,420,219[10] Common Stock Issued - Common stock issued to institutional investor in the nine months ended September 30, 2024 was 2,600,000 shares, totaling 9,175,900[7]−CommonstockissuedtoinstitutionalinvestorinthethreemonthsendedSeptember30,2024was650,000shares,totaling9,175,900[7] - Common stock issued to institutional investor in the three months ended September 30, 2024 was 650,000 shares, totaling 1,680,300[9] - Common stock issued to institutional investors for the three months ended September 30, 2024 was 650,000 shares[9] Net Cash Used in Operating Activities - Net cash used in operating activities increased to 12,414,222fortheninemonthsendedSeptember30,2024,upfrom12,414,222 for the nine months ended September 30, 2024, up from 9,913,798 in 2023[11] - Net cash used in operating activities for the nine months ended September 30, 2024 was 12,414,222[11]NetCashUsedinInvestingActivities−Netcashusedininvestingactivitieswas12,414,222[11] Net Cash Used in Investing Activities - Net cash used in investing activities was 2,278,649 for the nine months ended September 30, 2024, compared to 1,386,164in2023[11]−NetcashusedininvestingactivitiesfortheninemonthsendedSeptember30,2024was1,386,164 in 2023[11] - Net cash used in investing activities for the nine months ended September 30, 2024 was 2,278,649[11] Net Cash Provided by Financing Activities - Net cash provided by financing activities decreased to 10,143,251fortheninemonthsendedSeptember30,2024,downfrom10,143,251 for the nine months ended September 30, 2024, down from 18,074,457 in 2023[11] - Net cash provided by financing activities for the nine months ended September 30, 2024 was 10,143,251[11]ExpendituresandCashPosition−Thecompanyexpectstoincurapproximately10,143,251[11] Expenditures and Cash Position - The company expects to incur approximately 1,687,000 of expenditures per month over the next 12 months[21] - The company's current cash position enables it to finance its operations through February 2026[21] - The company expects to incur approximately 1,687,000inmonthlyexpendituresoverthenext12months,withacurrentcashpositionsufficienttofinanceoperationsthroughFebruary2026[21]RevenueRecognition−Revenuerecognizedfromthematerialsupplyandlicenseagreementwas1,687,000 in monthly expenditures over the next 12 months, with a current cash position sufficient to finance operations through February 2026[21] Revenue Recognition - Revenue recognized from the material supply and license agreement was 22,916 for the three months ended September 30, 2024 and 58,938fortheninemonthsendedSeptember30,2024[21]−Thecompanyrecognized58,938 for the nine months ended September 30, 2024[21] - The company recognized 22,916 and 58,938inrevenueforthethreeandninemonthsendedSeptember30,2024,respectively,relatedtotheLicenseAgreement[22]−Revenuefromdeviceprocessingworkamountedto58,938 in revenue for the three and nine months ended September 30, 2024, respectively, related to the License Agreement[22] - Revenue from device processing work amounted to 0 and 13,750forthethreeandninemonthsendedSeptember30,2024,respectively[22]−RevenuerecognizedforthethreeandninemonthsendedSeptember30,2024,relatedtothematerialsupplyandlicenseagreementwas13,750 for the three and nine months ended September 30, 2024, respectively[22] - Revenue recognized for the three and nine months ended September 30, 2024, related to the material supply and license agreement was 22,916 and 58,938,respectively[22]−ThecompanycompleteddeviceprocessingworkinMarch2024,recognizing58,938, respectively[22] - The company completed device processing work in March 2024, recognizing 0 and 13,750inrevenueforthethreeandninemonthsendedSeptember30,2024,respectively[22]−Revenuefromtechnologylicenseandmaterialsupplyagreementsisrecognizedpro−rataoverthecontractterm[14]AccountsReceivable−Accountsreceivable,netdecreasedfrom13,750 in revenue for the three and nine months ended September 30, 2024, respectively[22] - Revenue from technology license and material supply agreements is recognized pro-rata over the contract term[14] Accounts Receivable - Accounts receivable, net decreased from 30,376 as of December 31, 2023, to 26,814asofSeptember30,2024[23]−Accountsreceivable,net,decreasedfrom26,814 as of September 30, 2024[23] - Accounts receivable, net, decreased from 30,376 at December 31, 2023, to 26,814atSeptember30,2024[23]Short−termContractLiability−Short−termcontractliabilitydecreasedfrom26,814 at September 30, 2024[23] Short-term Contract Liability - Short-term contract liability decreased from 39,875 as of December 31, 2023, to 27,375asofSeptember30,2024[23]−Short−termcontractliabilitydecreasedfrom27,375 as of September 30, 2024[23] - Short-term contract liability decreased from 39,875 at December 31, 2023, to 27,375atSeptember30,2024[23]PrepaidExpensesandOtherCurrentAssets−Prepaidexpensesandothercurrentassetsdecreasedfrom27,375 at September 30, 2024[23] Prepaid Expenses and Other Current Assets - Prepaid expenses and other current assets decreased from 1,237,621 as of December 31, 2023, to 562,084asofSeptember30,2024[25]−Prepaidexpensesandothercurrentassetsdecreasedfrom562,084 as of September 30, 2024[25] - Prepaid expenses and other current assets decreased from 1,237,621 at December 31, 2023, to 562,084atSeptember30,2024[25]PropertyandEquipment−Propertyandequipmentincreasedfrom562,084 at September 30, 2024[25] Property and Equipment - Property and equipment increased from 4,990,790 as of December 31, 2023, to 5,774,568asofSeptember30,2024[27]−Propertyandequipmentincreasedfrom5,774,568 as of September 30, 2024[27] - Property and equipment increased from 4.99 million to 5.77million,agrowthof15.75.77 million, a growth of 15.7%[5] - Property and equipment increased from 9,665,350 at December 31, 2023, to 11,431,756atSeptember30,2024[27]DepreciationExpense−DepreciationexpensefortheninemonthsendedSeptember30,2024,was11,431,756 at September 30, 2024[27] Depreciation Expense - Depreciation expense for the nine months ended September 30, 2024, was 1,148,472, compared to 734,798forthesameperiodin2023[27]Patents−Patentsincreasedfrom734,798 for the same period in 2023[27] Patents - Patents increased from 1,254,501 as of December 31, 2023, to 1,295,293asofSeptember30,2024[30]−Patentsincreasedfrom1,295,293 as of September 30, 2024[30] - Patents increased from 1,913,751 at December 31, 2023, to 2,039,808atSeptember30,2024[30]AmortizationExpense−AmortizationexpensefortheninemonthsendedSeptember30,2024,was2,039,808 at September 30, 2024[30] Amortization Expense - Amortization expense for the nine months ended September 30, 2024, was 92,167, compared to 62,703forthesameperiodin2023[30]LeasePayments−UndiscountedfutureminimumleasepaymentsundertheAmendedLeaseasofSeptember30,2024,totaled62,703 for the same period in 2023[30] Lease Payments - Undiscounted future minimum lease payments under the Amended Lease as of September 30, 2024, totaled 4,073,544[34] - Undiscounted future minimum lease payments under the amended lease as of September 30, 2024, total 4,073,544,withadiscountedtotalof4,073,544, with a discounted total of 2,804,357[34] Income Tax Benefit - The company recorded no income tax benefit for losses in Q3 and the first nine months of 2024 and 2023 due to a valuation allowance on deferred tax assets[36] Shelf Registration Statement - The company filed a new 100millionuniversalshelfregistrationstatementeffectiveAugust5,2024[38]−Thecompanyfiledanew100 million universal shelf registration statement effective August 5, 2024[38] - The company filed a new 100,000,000 universal shelf registration statement on July 26, 2024, effective August 5, 2024[38] Institutional Investor Purchases - An institutional investor purchased 5,470,455 shares of common stock for 25.32millionbetweenFebruary28,2023andSeptember30,2024[38]−Thecompanysold5,470,455sharesofcommonstockforproceedsof25.32 million between February 28, 2023 and September 30, 2024[38] - The company sold 5,470,455 shares of common stock for proceeds of 25,321,952 from February 28, 2023, to September 30, 2024, under a purchase agreement with an institutional investor[38] Share-based Compensation - As of September 30, 2024, the company had 2.81millionofunrecognizedcompensationexpenserelatedtonon−vestedmarket−basedshareawards[39]−Share−basedcompensationfortheninemonthsendedSeptember30,2024was2.81 million of unrecognized compensation expense related to non-vested market-based share awards[39] - Share-based compensation for the nine months ended September 30, 2024 was 3.77 million, down from 5.28millioninthesameperiodof2023[40]−AsofSeptember30,2024,thecompanyhad5.28 million in the same period of 2023[40] - As of September 30, 2024, the company had 2,808,467 of unrecognized compensation expense related to non-vested market-based share awards, expected to be recognized through September 2027[39] - Total share-based compensation for the nine months ended September 30, 2024 was 3,773,180,comparedto3,773,180, compared to 5,283,367 for the same period in 2023[40] Stock Options and Warrants - The company had 9,537,519 stock options and warrants outstanding as of September 30, 2024 with a weighted average exercise price of 3.08[41]−Theaggregateintrinsicvalueofoutstandingoptionsandwarrantswas3.08[41] - The aggregate intrinsic value of outstanding options and warrants was 10.21 million as of September 30, 2024[41] - 8,596,375 options and warrants were exercisable as of September 30, 2024 with a weighted average exercise price of 2.89[42]−TheaggregateintrinsicvalueofoptionsandwarrantsoutstandingandexercisableasofSeptember30,2024was2.89[42] - The aggregate intrinsic value of options and warrants outstanding and exercisable as of September 30, 2024 was 10,209,133[41] - The weighted average exercise price of options and warrants currently exercisable as of September 30, 2024 was 2.89[42]RestrictedStockAwards(RSAs)−Thecompanygranted99,616RestrictedStockAwards(RSAs)tofouroutsidedirectorsonMarch16,2023,withagrantdatefairvalueof2.89[42] Restricted Stock Awards (RSAs) - The company granted 99,616 Restricted Stock Awards (RSAs) to four outside directors on March 16, 2023, with a grant date fair value of 5.22 per share, vesting 8,338 shares immediately and the remaining in 33 monthly installments of 2,766 shares[43] - On August 1, 2023, the company granted 6,238 RSAs to an outside director with a grant date fair value of 6.68pershare,vesting218sharesimmediatelyandtheremainingin28monthlyinstallmentsof215shares[43]−OnJune18,2024,thecompanygranted92,475RSAstofiveoutsidedirectorswithagrantdatefairvalueof6.68 per share, vesting 218 shares immediately and the remaining in 28 monthly installments of 215 shares[43] - On June 18, 2024, the company granted 92,475 RSAs to five outside directors with a grant date fair value of 3.33 per share, vesting 15,455 shares immediately and the remaining in 10 quarterly installments of 7,702 shares[43] - On August 1, 2024, the company granted 12,924 RSAs to an outside director with a grant date fair value of 3.16pershare,vestingin9quarterlyinstallmentsof1,436shares[43]−OnSeptember4,2024,thecompanygranted11,488RSAstoanoutsidedirectorwithagrantdatefairvalueof3.16 per share, vesting in 9 quarterly installments of 1,436 shares[43] - On September 4, 2024, the company granted 11,488 RSAs to an outside director with a grant date fair value of 2.68 per share, vesting in 8 quarterly installments of 1,436 shares[43] - As of September 30, 2024, the company had 143,917 non-vested RSAs with a weighted average grant date fair value of 4.19pershare,andtheunamortizedvalueofRSAswas4.19 per share, and the unamortized value of RSAs was 506,925[45] - The company granted 92,475 Restricted Stock Awards to five outside directors on June 18, 2024, with a grant date fair value of 3.33pershare[43]−TheunamortizedvalueofRestrictedStockAwardsasofSeptember30,2024was3.33 per share[43] - The unamortized value of Restricted Stock Awards as of September 30, 2024 was 506,925, compared to 496,736asofSeptember30,2023[45]AccrualsandExpenses−Thecompanyhadlegalaccrualstorelatedpartiesof496,736 as of September 30, 2023[45] Accruals and Expenses - The company had legal accruals to related parties of 77,659, directors' fees accruals of 58,750,consultingfeesaccrualsof58,750, consulting fees accruals of 22,500, and travel and office expense reimbursements of 17,836asofSeptember30,2024[46]−Thecompanyhadlegalaccrualstorelatedpartiesof17,836 as of September 30, 2024[46] - The company had legal accruals to related parties of 77,659 and directors' fees accruals of 58,750asofSeptember30,2024[46]401(k)RetirementPlanContributions−FortheninemonthsendedSeptember30,2024,thecompanycontributed58,750 as of September 30, 2024[46] 401(k) Retirement Plan Contributions - For the nine months ended September 30, 2024, the company contributed 95,524 to its 401(k) retirement plan for eligible non-executive participants, compared to 51,413forthesameperiodin2023[47]−Thecompanycontributed51,413 for the same period in 2023[47] - The company contributed 95,524 to the 401(k) retirement plan for eligible non-executive participants for the nine months ended September 30, 2024, compared to 51,413forthesameperiodin2023[47]AccumulatedDeficit−Accumulateddeficitincreasedfrom51,413 for the same period in 2023[47] Accumulated Deficit - Accumulated deficit increased from 127.87 million to 144.87million,agrowthof13.3144.87 million, a growth of 13.3%[5] - Total accumulated deficit as of September 30, 2024 was 144,871,901[9] Basic and Diluted Loss Per Share - Basic and diluted loss per share for the nine months ended September 30, 2024 was 0.14, unchanged from the same period of 2023[6] Technology Development - The company is focused on developing next-generation electro-optic photonic devices using its P2IC™ technology platform[13] - The company is focused on developing next-generation electro-optic photonic devices using its P2IC™ technology platform[13] Lease Agreements - The company leased approximately 13,420 square feet of office and R&D space in Colorado, with a base rent of 168,824 for the first year, increasing by 3% annually[31] - The company extended the lease term by 24 months in January 2022, with no lease modification required[31] - The company entered into an amended lease on November 22, 2022, adding 9,684 square feet of office and warehouse space, with a base rent of 30,517permonththroughJanuary31,2024[33]−Theamendedleaseincludesanallowanceofupto30,517 per month through January 31, 2024[33] - The amended lease includes an allowance of up to 43,216 for renovations to the additional premises[33] - As of September 30, 2024, the operating lease right-of-use asset and liability amounted to 2,694,971and2,694,971 and 2,804,357, respectively[33] - Rent expense for the three months ended September 30, 2024, was 75,511 for R&D and 25,171 for general and administrative expenses[34] Institutional Investor Funding - The company received 1,916,730fromaninstitutionalinvestorinOctoberandNovember2024,withanadditional1,916,730 from an institutional investor in October and November 2024, with an additional 2,761,318 available under the agreement[21] - The company received 817,455fromaninvestmentbankingcompanyinOctoberandNovember2024,withanadditional817,455 from an investment banking company in October and November 2024, with an additional 31,857,377 available under the agreement[21]