Lightwave Logic(US:LWLG)2019-11-12 21:08Financial 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].