Lightwave Logic(US:LWLG)2022-11-09 21:24Financial Performance - The net loss for the nine months ending September 30, 2022, was $12.16 million, compared to a net loss of $10.52 million for the same period in 2021, indicating an increase in losses of 15.6%[18]. - The net loss for the three months ended September 30, 2022, was $4,803,383, an increase of $555,261 (13%) compared to the same period in 2021[176]. - The net loss for the nine months ended September 30, 2022, was $12,161,742, an increase of $1,639,091 (16%) compared to the same period in 2021[183]. - The company incurred a net loss of $12,161,742 for the nine months ended September 30, 2022, with an accumulated deficit of $101,764,623[210]. - The company anticipates continuing to incur operating losses through at least 2022, requiring significant revenue generation to achieve profitability[211]. Revenue and Sales - The company reported no net sales for the three and nine months ending September 30, 2022[18]. - The company had no revenues during the nine months ended September 30, 2022, as it is in various stages of photonic device and materials development[177]. - The company expects to generate revenue from technology licensing agreements and direct sales of its electro-optic device components[28]. Expenses - Research and development expenses for the nine months ending September 30, 2022, were $8.99 million, up 15.9% from $7.76 million in the same period of 2021[18]. - General and administrative expenses increased to $3.02 million for the nine months ending September 30, 2022, compared to $1.84 million in 2021, reflecting a rise of 64.0%[18]. - General and administrative expenses increased by $1,176,125 (64%) for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to increases in non-cash stock option amortization, legal expenses, and director fees[181]. - Research and development expenses rose by $1,232,946 (16%) for the nine months ended September 30, 2022, compared to the same period in 2021, driven by increases in non-cash stock option amortization and prototype device development expenses[178]. - Research and development expenses for the three months ended September 30, 2022, were $3,587,692, a slight decrease from $3,600,793 in the same period in 2021[172]. Assets and Liabilities - Total assets increased to $30.15 million as of September 30, 2022, compared to $27.23 million at December 31, 2021, representing an increase of 10.7%[17]. - Cash and cash equivalents rose to $25.02 million from $23.43 million, a growth of 6.8%[17]. - Total stockholders' equity increased to $28.79 million as of September 30, 2022, from $25.20 million at December 31, 2021, marking an increase of 10.3%[17]. - The total current liabilities decreased to $1.09 million from $1.59 million, a reduction of 31.2%[17]. - Long-term liabilities decreased to $0.27 million from $0.44 million, a decline of 39.2%[17]. - Cash and cash equivalents totaled $25,021,642 as of September 30, 2022, with total assets of $30,148,946 and stockholders' equity of $28,794,197[194]. Financing and Capital - The company expects to incur approximately $1,380,000 in expenditures per month over the next 12 months, with current cash enabling operations through March 2024[39]. - The company has sufficient funds to finance operations through March 2024 but will need additional capital thereafter[212]. - The company plans to seek additional funding through public or private financings, including equity financings[212]. - The company received $10,709,293 in proceeds from the resale of common stock to an institutional investor during the nine months ended September 30, 2022[188]. - The company has a remaining available amount of $4,943,057 under a purchase agreement with an institutional investor for common stock sales[39]. Stock and Options - The weighted average number of shares outstanding for the nine months ending September 30, 2022, was 111.54 million, compared to 103.91 million in 2021, an increase of 7.8%[18]. - The company has 2,895,000 stock options outstanding as of September 30, 2022, under the 2007 Employee Stock Plan[66]. - The total share-based compensation recognized was $4,355,639, a significant increase from $799,197 in the same period of 2021, reflecting a growth of approximately 444%[73]. - The company reported stock options issued for services amounting to $4,288,172 for the nine months ending September 30, 2022[25]. Research and Development Focus - The company is focused on developing next-generation photonic devices and expects to generate revenue from technology licensing agreements and direct sales of its electro-optic device components[28]. - The company is developing electro-optic modulators that convert electric signals into optical signals, essential for high-speed fiber-optic telecommunications[89]. - The company is working closely with packaging and foundry partners for 50Gbaud and 100Gbaud prototypes, aiming for commercial volume scalability[167]. - The company expects to incur substantial research and development expenses as it accelerates efforts to commercialize its electro-optic polymer materials technology[173]. - The company is focusing on developing proprietary organic electro-optic polymer material systems to improve product reliability and quality assurance capabilities[99]. Technology and Innovation - Lightwave Logic, Inc. is focused on commercialization of next-generation electro-optic photonic devices using its proprietary PIC™ technology platform, targeting applications in data communications and telecommunications markets[83]. - The company is expanding its partnerships with silicon-based foundries to scale production of polymer modulator devices, enhancing manufacturability and reliability[84]. - The proprietary electro-optic polymers are designed for superior performance and stability, with potential applications across various industries including telecommunications, automotive, and aerospace[88]. - The company achieved a breakthrough with new modulators fabricated in 2021, exceeding bandwidth design targets and achieving triple the data rate compared to competing devices, with electrical bandwidths exceeding 100 GHz[145]. - The company received U.S. Patent number 10,754,093, enhancing the performance and reliability of high-speed, low-power electro-optic polymer modulators for datacenter and telecommunications applications[136].