Lightwave Logic(US:LWLG)2022-08-09 20:18Financial Performance - The net loss for the six months ending June 30, 2022, was $7,358,359, compared to a net loss of $6,274,529 for the same period in 2021, reflecting an increase in losses of about 17.3%[17]. - The net loss for the three months ended June 30, 2022, was $3,802,598, a decrease of 16% from $4,539,485 for the same period in 2021[168]. - The company incurred a net loss of $7,358,359 for the six months ended June 30, 2022, and a net loss of $18,631,381 for the year ended December 31, 2021, with an accumulated deficit of $96,961,240 as of June 30, 2022[201]. - The company anticipates continuing to incur operating losses through at least 2022, as it focuses on research and development of electro-optic polymer materials technologies[201]. - Other income (expenses) decreased by 97% to $(34,246) for the three months ended June 30, 2022, compared to $(1,083,242) for the same period in 2021[167]. - Other income improved significantly, decreasing to a loss of $79,438 for the six months ended June 30, 2022, from a loss of $922,515 in the same period in 2021, representing a 91% improvement[173]. Assets and Liabilities - Total assets increased to $29,007,064 as of June 30, 2022, compared to $27,228,575 on December 31, 2021, representing a growth of approximately 6.5%[16]. - Current assets rose to $25,613,045, up from $23,664,920, indicating an increase of about 8.2%[16]. - Total liabilities decreased significantly to $1,047,887 from $2,024,303, a reduction of approximately 48.2%[16]. - Cash and cash equivalents at the end of the period on June 30, 2022, were $24,829,749, up from $13,913,519 at the end of June 30, 2021, reflecting a year-over-year increase of approximately 78.6%[29]. - The total stockholders' equity as of June 30, 2022, was $27,959,177, up from $25,204,272, indicating an increase of about 10.9%[16]. - The company has no debt to service, which positions it favorably for future financing and operational flexibility[43]. Expenses - Research and development expenses for the three months ending June 30, 2022, were $2,781,215, slightly down from $2,797,505 in the same period of 2021[17]. - General and administrative expenses increased to $987,137 for the three months ending June 30, 2022, compared to $658,738 in the prior year, marking an increase of approximately 49.9%[17]. - Research and development expenses increased by 30% to $5,406,355 for the six months ended June 30, 2022, compared to $4,160,308 for the same period in 2021[170]. - General and administrative expenses rose by 57% to $1,872,566 for the six months ended June 30, 2022, compared to $1,191,706 for the same period in 2021[172]. - Stock options issued for services amounted to $2,798,550 for the six months ending June 30, 2022, compared to $528,249 for the same period in 2021, reflecting a significant increase in stock-based compensation[29]. Shareholder Activity - The company issued 875,000 common shares to an institutional investor, raising approximately $6.7 million in additional paid-in capital[20]. - The company issued common stock to institutional investors totaling $6,705,693 during the six months ending June 30, 2022[29]. - The total number of shares outstanding increased from 107,335,110 on June 30, 2021, to 111,887,124 on June 30, 2022, representing an increase of approximately 4.9%[26]. - The weighted average number of shares for basic loss per share was 111,593,709 for the three months ending June 30, 2022, compared to 104,125,843 for the same period in 2021[17]. - The company sold 150,000 shares of common stock at $1.48 per share and 25,000 shares at $0.75 per share during the reporting period without registering the securities[206]. Future Outlook - The company expects to incur approximately $1,300,000 in expenditures per month over the next 12 months, with current cash enabling operations through February 2024[43]. - The company expects to require additional capital to fund operations beyond February 2024, as it currently does not generate sufficient cash to finance its operations[203]. - The company plans to increase spending on research and development, marketing, and staffing to support future growth and commercialization of its products[182]. - The company has a remaining available amount of $8,304,532 under a purchase agreement with an institutional investor for common stock sales[43]. Product Development and Market Position - The company is focused on developing next-generation photonic devices and expects to generate revenue from technology licensing agreements and direct sales of electro-optic device components[32]. - The Company aims to optimize its business model through product development, patent licensing, and technology transfer to foundries, targeting applications in data communications and telecommunications markets[85]. - The Company has partnered with silicon-based foundries to scale its polymer modulator devices, demonstrating the ability to integrate its technology into standard production lines[84]. - The company aims to develop proprietary organic electro-optic polymer material systems and photonic devices based on its PIC technology to become a leading provider in the electro-optic device market[94]. - The market opportunity for fiber optic communications over distances greater than 10 km is projected to exceed $1 billion over the next decade[100]. Technological Advancements - The company announced a breakthrough in clean technology polymer materials, achieving over 100 GHz performance with low power requirements, addressing the demand for efficient data communications[123]. - The company achieved enhanced photostability results for its electro-optic polymer modulators, demonstrating no change in device performance after over 3000 hours of high-intensity optical power exposure[155]. - The company published a patent application for a hybrid electro-optic polymer modulator with silicon photonics, detailing a novel fabrication process for high-volume manufacturing[156]. - The company received U.S. Patent number 10,754,093 in October 2020, improving the performance and reliability of its electro-optic polymer modulators for datacenter applications[132]. - The company announced the development of a new sealant for its Chip-on-Board packaged polymer platform, which blocks atmospheric gases and improves robustness against environmental factors[137].