Lightwave Logic(LWLG) - 2024 Q4 - Annual Report

Revenue and Income - For the year ended December 31, 2024, the company recognized $81,855 in licensing and royalty revenue and$13,750 in revenue for device processing work, compared to $40,502 in licensing and royalty revenue for the year ended December 31, 2023, indicating a significant increase in revenue [220]. - Other income increased by 196$554,102 in 2024, compared to $187,233 in 2023, mainly due to increased interest income and a decrease in commitment fees [226]. Operating Expenses - The company's total operating expenses for the year ended December 31, 2024, were$23,177,353, up 9% from $21,263,254 in 2023, driven by increases in research and development and general administrative expenses [222]. - Research and development expenses increased by$902,859 (6%) to $16,806,548 in 2024, primarily due to higher salary and benefits, equipment depreciation, and prototype development costs [222]. - General and administrative expenses rose by$1,011,240 (19%) to $6,370,805 in 2024, attributed to increases in salary, consulting fees, and investor relations expenses [225]. Net Loss - The net loss for the year ended December 31, 2024, was$22,535,041, an increase of $1,497,009 (7$21,038,032 in 2023, primarily due to rising operational costs [227]. Cash Flow and Financing - Net cash used in operating activities was $15,550,515 for the year ended December 31, 2024, primarily due to a net loss of$22,535,041 [240]. - Net cash provided by financing activities was $14,484,291 for the year ended December 31, 2024, including$12,366,965 from the resale of common stock [242]. - The company received $12,366,965 in proceeds from the 2023 Purchase Agreement with Lincoln Park during the year ended December 31, 2024 [231]. - The company has entered into a 2025 Purchase Agreement with Lincoln Park to sell up to$30 million of common stock over a 36-month period [235]. Assets and Liabilities - As of December 31, 2024, the company's cash and cash equivalents totaled $27,667,964, with total assets of$37,807,983 and stockholders' equity of $33,423,905 [243]. - The company had total liabilities of$4,384,078 as of December 31, 2024 [243]. - The company has a cash position that allows it to finance operations through April 2026 without needing to replenish cash reserves [234]. Strategic Focus and Growth - The company commenced commercial operations in May 2023, with a material supply license agreement for Perkinamine® chromophore materials, marking a significant step in its business strategy [215]. - The company is focusing on scaling its polymer modulator devices through partnerships with silicon-based foundries, which will enhance production efficiency and capital utilization [210]. - The company aims to expand its applications beyond telecommunications to sectors such as automotive, aerospace, and defense, leveraging its proprietary polymer technology [212]. - The company plans to continue incurring substantial research and development expenses to support the commercialization of its electro-optic materials platform and enhance its product offerings [224]. - The company plans to increase spending on research and development, marketing, and workforce expansion as part of its growth strategy [238]. Future Expenditures - The company expects to incur approximately $1,727,000 in expenditures per month over the next 12 months [233]. - Net cash used by investing activities was$2,697,899 for the year ended December 31, 2024, primarily for asset additions for the Colorado headquarters facility and labs [241].