Lightwave Logic(US:LWLG)2024-11-12 22:01Cash and Cash Equivalents - Cash and cash equivalents decreased from $31.43 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, 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] Total Current Assets - Total current assets decreased from $32.70 million in December 2023 to $27.47 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 $5.16 million in the same period in 2023[6] - Net loss for the nine months ended September 30, 2024 was $17.00 million, compared to $16.10 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] - 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] - Net loss for the nine months ended September 30, 2024 was $17,000,508, compared to $16,098,356 for the same period in 2023[11] - Net loss for the nine months ended September 30, 2024 was $17.00 million, compared to $16.10 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 $12.81 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 $12.81 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 $4.64 million, compared to $3.88 million in the same period in 2023[6] Total Liabilities - Total liabilities decreased from $5.35 million in December 2023 to $3.76 million in September 2024, a decline of 29.7%[5] - Total liabilities decreased from $5.35 million to $3.76 million, a decline of 29.7%[5] Total Stockholders' Equity - Total stockholders' equity decreased from $36.43 million in December 2023 to $33.47 million in September 2024, a decline of 8.1%[5] - Total stockholders' equity decreased from $36.43 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, compared to $0 in the same period in 2023[6] - Net sales for the nine months ended September 30, 2024 were $72,688, 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, 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] - Total balance at September 30, 2023 was $35,420,219[8] - Total balance at September 30, 2024 was $33,471,570[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] - 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 $12,414,222 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] 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 $1,386,164 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 $10,143,251 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] 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 $1,687,000 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 $58,938 for the nine months ended September 30, 2024[21] - The company recognized $22,916 and $58,938 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 $13,750 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] - The company completed device processing work in March 2024, recognizing $0 and $13,750 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 $26,814 as of September 30, 2024[23] - Accounts receivable, net, decreased from $30,376 at December 31, 2023, to $26,814 at September 30, 2024[23] Short-term Contract Liability - Short-term contract liability decreased from $39,875 as of December 31, 2023, to $27,375 as of September 30, 2024[23] - Short-term contract liability decreased from $39,875 at December 31, 2023, to $27,375 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 $562,084 as of September 30, 2024[25] - Prepaid expenses and other current assets decreased from $1,237,621 at December 31, 2023, to $562,084 at September 30, 2024[25] Property and Equipment - Property and equipment increased from $4,990,790 as of December 31, 2023, to $5,774,568 as of September 30, 2024[27] - Property and equipment increased from $4.99 million to $5.77 million, a growth of 15.7%[5] - Property and equipment increased from $9,665,350 at December 31, 2023, to $11,431,756 at September 30, 2024[27] Depreciation Expense - Depreciation expense for the nine months ended September 30, 2024, was $1,148,472, compared to $734,798 for the same period in 2023[27] Patents - Patents increased from $1,254,501 as of December 31, 2023, to $1,295,293 as of September 30, 2024[30] - Patents increased from $1,913,751 at December 31, 2023, to $2,039,808 at September 30, 2024[30] Amortization Expense - Amortization expense for the nine months ended September 30, 2024, was $92,167, compared to $62,703 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, 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 $100 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 $25.32 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 $2.81 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 $5.28 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, 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] - 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] - 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] 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 $6.68 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 $3.16 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 $4.19 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 $3.33 per share[43] - The unamortized value of Restricted Stock Awards as of September 30, 2024 was $506,925, compared to $496,736 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, consulting fees accruals of $22,500, and travel and office expense reimbursements of $17,836 as of September 30, 2024[46] - The company had legal accruals to related parties of $77,659 and directors' fees accruals of $58,750 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 $51,413 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 $51,413 for the same period in 2023[47] Accumulated Deficit - Accumulated deficit increased from $127.87 million to $144.87 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 $30,517 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 $2,694,971 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 $1,916,730 from an institutional investor in October and November 2024, with an additional $2,761,318 available under the agreement[21] - The company received $817,455 from an investment banking company in October and November 2024, with an additional $31,857,377 available under the agreement[21]