Lightwave Logic(US:LWLG)2025-11-14 21:11Financial Performance - Net sales for the three months ended September 30, 2025, were $29,166, compared to $22,916 for the same period in 2024, reflecting a year-over-year increase of 27.5%[19] - The net loss for the three months ended September 30, 2025, was $5.10 million, slightly improved from a net loss of $5.30 million in the same period of 2024, indicating a reduction of 3.8%[19] - The net loss for the nine months ended September 30, 2025, was $15,469,715, compared to a net loss of $17,000,508 for the same period in 2024, indicating a 9% improvement in financial performance[29] - The company reported a net loss of $5,100,559 for the three months ended September 30, 2025, compared to a net loss of $5,300,913 for the same period in 2024[125] - Basic and diluted loss per share for the nine months ended September 30, 2025, was $0.12, an improvement from $0.14 in the same period of 2024[125] - Net loss decreased to $5,100,559 for the three months ended September 30, 2025, down 4% from $5,300,913 in the prior year, a reduction of $200,354[158] - Net loss for the nine months ended September 30, 2025, was $15,469,715, a decrease of 9% from $17,000,508 in the prior year[167] Assets and Equity - Total assets increased to $44.79 million as of September 30, 2025, up from $37.81 million at December 31, 2024, representing a growth of 18.5%[17] - Cash and cash equivalents increased to $34.94 million as of September 30, 2025, compared to $27.67 million at December 31, 2024, marking a rise of 26.4%[17] - Total stockholders' equity rose to $41.19 million as of September 30, 2025, up from $33.42 million at December 31, 2024, an increase of 23.2%[17] - The company’s total accumulated deficit increased to $(144,871,901) as of September 30, 2025, compared to $(127,871,393) at the end of 2023[27] - As of September 30, 2025, cash and cash equivalents totaled $34,942,070, with total assets of $44,786,666 and stockholders' equity of $41,190,512[182] Expenses - Research and development expenses for the nine months ended September 30, 2025, totaled $8.65 million, down 32.5% from $12.81 million in the same period of 2024[19] - Research and development expenses decreased by 24% to $2,917,473 for the three months ended September 30, 2025, compared to $3,828,301 for the same period in 2024[154] - General and administrative expenses increased by 54% to $2,290,839 for the three months ended September 30, 2025, compared to $1,490,481 for the same period in 2024[154] - General and administrative expenses increased by 53% to $7,113,774 for the nine months ended September 30, 2025, from $4,642,603 in the prior year[162] Cash Flow - The company reported a net cash used in operating activities of $10,436,426 for the nine months ended September 30, 2025, down from $12,414,222 in 2024, showing a 16% decrease[29] - Net cash provided by financing activities was $18,936,908, consisting of $4,493,488 from the sale of common stock under the 2023 and 2025 Purchase Agreements[181] - For the nine months ended September 30, 2025, the net cash used in operating activities was $10,436,426, primarily due to a net loss of $15,469,715[179] - Net cash used in investing activities for the same period was $1,226,376, which included $953,184 for asset additions for the Colorado headquarters facility and labs[180] Stock and Financing - The company has continued to expand its common stock issuance, raising additional capital through various institutional investments and market sales[21] - The company issued common stock to institutional investors amounting to $4,493,488 during the nine months ended September 30, 2025, compared to $9,175,900 in the same period of 2024, reflecting a 51% decrease[29] - The company has $26.8 million remaining under the 2025 Purchase Agreement and $12.2 million available under the Roth Sales Agreement for future financing needs[199] Revenue Recognition - The company’s revenue recognition is based on technology license and material supply agreements, with revenue recognized when control of goods or services is transferred to customers[36] - As of September 30, 2025, the Company recognized $29,166 and $77,688 in revenue related to its first commercial agreement for the three and nine months ended September 30, 2025, respectively[61] - Licensing and royalty revenue for the nine months ended September 30, 2025, was $77,688, up from $58,938 in the prior year[159] - 100% of the Company's net sales for the nine months ended September 30, 2025, were generated internationally, compared to 81% internationally and 19% in the U.S. in the prior year[160] Development and Operations - The company is focused on developing its proprietary engineered electro-optic polymers for applications in telecommunications and data transmission, potentially supporting generative AI[32] - The company expects to continue incurring substantial research and development expenses to support the commercialization of its electro-optic materials platform[155] - The company commenced commercial operations in May 2023, focusing on a material supply license agreement for Perkinamine chromophore materials[144] - The company has one customer that accounted for 10% or more of total revenue, indicating a concentration of credit risk[135] Legal and Tax Matters - The company did not recognize any income tax benefits for losses for the three and nine months ended September 30, 2025, due to the uncertainty of realizing net deferred tax assets[83] - As of September 30, 2025, the company had no unrecognized tax benefits or related interest and penalties, and no significant changes are expected in the next twelve months[84] - The company has not experienced any material legal proceedings during the reporting period[195]