Lightwave Logic(LWLG) - 2020 Q4 - Annual Report

Financial Performance - The company had no revenues for the years ended December 31, 2020 and 2019, as it is in various stages of photonic device and material development [270]. - Operating expenses increased from $6,319,407 in 2019 to $6,599,974 in 2020, an increase of $280,567, primarily due to higher wages and salaries, investor relation expenses, and legal fees [273]. - Research and development expenses rose from $4,319,295 in 2019 to $4,529,498 in 2020, an increase of $210,203, driven by higher salaries and wages [274]. - The net loss decreased slightly from $6,726,967 in 2019 to $6,715,564 in 2020, a reduction of $11,403, attributed to lower commitment fees and travel expenses [292]. Cash Flow and Financial Position - Cash and cash equivalents totaled $3,306,590 as of December 31, 2020, with total assets of $7,366,778 and stockholders' equity of $5,775,446 [295]. - For the year ended December 31, 2020, net cash used in operating activities was $4,873,863, primarily due to a net loss of $6,715,564 [301]. - Net cash used by investing activities for the year ended December 31, 2020 was $217,984, primarily for the new Colorado headquarters and labs [302]. - Net cash provided by financing activities for the year ended December 31, 2020 was $6,162,093, consisting of $1,658,442 from warrant exercises and $5,173,300 from resale of common stock [303]. - 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 [304]. - Net cash used by investing activities for the year ended December 31, 2019 was $305,670, mainly for the new Colorado headquarters and labs [305]. - Net cash provided by financing activities for the year ended December 31, 2019 was $5,133,234, consisting of $5,638,960 from resale of common stock [305]. - The current cash position allows the company to finance operations through December 2021 before needing to replenish cash reserves [297]. - The company has no debt to service, which supports its operational flexibility [297]. Future Outlook and Plans - The company expects to continue incurring substantial research and development expenses to support the commercialization of its photonic devices and materials platform [276]. - The company plans to create a portfolio of commercial electro-optic polymer product devices targeting telecommunications and data communications markets [267]. - Initial modulator products are expected to operate at data rates of at least 50 Gbaud, with development ongoing for 100 Gbaud capabilities [268]. - The company expects to incur approximately $700,000 in expenditures per month over the next 12 months [297]. - 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 [299]. - The company has satisfied its capital requirements primarily through the issuance and sale of common stock since inception [269].