Lightwave Logic(LWLG) - 2019 Q4 - Annual Report

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].