LightPath Technologies(LPTH) - 2026 Q2 - Quarterly Report

Financial Performance - For the quarter ended December 31, 2025, net revenue increased to $16.35 million, up 120% from $7.42 million in the same quarter of 2024[14] - Gross profit for the same quarter was $6.02 million, representing a gross margin of approximately 36.8%, compared to $1.93 million in the prior year[14] - Operating loss for the quarter was $8.60 million, compared to a loss of $2.48 million in the same quarter of 2024, indicating increased operational challenges[14] - The company reported a net loss of $9.41 million for the quarter, compared to a net loss of $2.61 million in the same quarter of 2024[14] - Total revenue for the six months ended December 31, 2025, reached $31,409,933, compared to $15,825,210 for the same period in 2024, representing a 99.5% increase[51] - Net loss for the six months ended December 31, 2025, was $12.3 million, compared to a loss of $4.2 million for the same period in 2024[21] - Comprehensive loss for the six months ended December 31, 2025, was $(11,993,169), compared to $(4,414,183) in the same period of 2024, marking a 171% increase in comprehensive losses[14] Assets and Liabilities - Total current assets increased significantly to $97.00 million as of December 31, 2025, compared to $28.37 million as of June 30, 2025[12] - Total liabilities rose to $36.39 million as of December 31, 2025, compared to $31.63 million as of June 30, 2025[12] - The company’s cash and cash equivalents increased to $73.57 million from $4.88 million, indicating improved liquidity[12] - As of September 30, 2025, the total stockholders' equity was $21,437,818, with an accumulated deficit of $(233,609,759)[17] - The company’s accumulated deficit reached $243.0 million as of December 31, 2025, up from $230.7 million as of June 30, 2025[12] - Total lease liabilities as of December 31, 2025, amounted to $10,015,284, with current liabilities of $1,566,011[80] Stock and Equity - The company issued 8,912,500 shares of common stock under a public equity placement, raising approximately $65,340,834[17] - The company completed a public offering of 7,750,000 shares of Class A Common Stock at a price of $7.75 per share, raising net proceeds of $65.3 million[104] - The company has authorized 6,559,526 shares of Class A Common Stock for issuance under the 2018 Stock and Incentive Compensation Plan as of December 31, 2025[67] - The company has approximately $2.3 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements as of December 31, 2025[74] Expenses and Costs - New product development expenses for the quarter were $748,829, slightly down from $764,396 in the same quarter of 2024, reflecting ongoing investment in innovation[14] - The company incurred $2.45 million in depreciation and amortization expenses during the six months ended December 31, 2025, compared to $1.89 million in the same period of 2024[21] - The company reported a stock-based compensation expense of $698,610 for the six months ended December 31, 2025, compared to $506,020 in the prior year[21] - The company reported total operating expenses for the three months ended December 31, 2025, were $14,617,833, a 231% increase from $4,415,170 in the same period of 2024[14] Acquisitions and Investments - The company reported a fair value of consideration transferred for the acquisition of G5 Infrared at approximately $27.1 million, including $20.3 million in cash and 1,972,501 shares of common stock valued at $2.47 per share[34] - The total purchase price for Visimid Technologies was approximately $2.7 million, including cash and restricted stock[45] - The company entered into an Asset Purchase Agreement to acquire assets from Amorphous Materials, with total consideration not exceeding $10.0 million, including a cash payment of $7.0 million[106] - The company plans to issue additional shares and pay cash consideration as part of the earnout payments, contingent on achieving specific revenue and EBITDA targets in fiscal years 2026 and 2027[35] Revenue and Sales - Revenue from infrared components for the three months ended December 31, 2025, was $5,018,039, compared to $3,112,076 for the same period in 2024, reflecting a 61.3% increase[51] - Revenues from foreign countries for the six months ended December 31, 2025, included $14.3 million from the United States, $13.8 million from Europe, and $2.2 million from China, highlighting strong international sales performance[93] - The optics segment's gross profit for the six months ended December 31, 2025, was approximately $10.5 million, up from $4.8 million in the same period of 2024, indicating a significant improvement in profitability[96] Taxation - The effective income tax rate for the three months ended December 31, 2025, was 0%, reflecting a mix of taxable income and losses across various jurisdictions[58] - The U.S. federal and state statutory income tax rate is estimated to be 25.5%, with no additional tax expense expected on pre-tax income or losses generated in the U.S.[60] - The statutory income tax rate for the Company's Chinese subsidiary, LPOIZ, is 15% as of December 31, 2025[63] - The Latvian subsidiary, ISP Latvia, is subject to a distribution tax on distributed profits with an effective tax rate of 25%[65] Market Conditions and Future Outlook - The company anticipates continued market growth and expects existing contracts to be renewed in future quarters, aligning with its strategic direction[10] - The company is focused on creating a sustainable annuity revenue stream and differentiating its technology to remain competitive in the market[10] - The ongoing wars in Ukraine and Israel have created uncertainty in the supply chain, particularly affecting the availability of Germanium[103] - The company cannot reasonably estimate the financial impact of the Russian-Ukraine conflict or the Israel-Hamas war on its operations or cash flows[103]