Lightwave Logic(LWLG) - 2023 Q1 - Quarterly Report

Financial Performance - The net loss for the three months ending March 31, 2023, was $5,476,018, compared to a net loss of $3,555,761 for the same period in 2022, indicating an increase in loss of 54%[20] - Net loss increased by 54% to $5,476,018 for the three months ended March 31, 2023, compared to $3,555,761 for the same period in 2022[195] - Other income (expenses) decreased significantly by 600% to $(316,141) for the three months ended March 31, 2023, compared to $(45,193) for the same period in 2022[194] - The company reported a net cash used in operating activities of $3,748,656 for the three months ending March 31, 2023, compared to $2,545,689 in the same period of 2022[24] - For the three months ended March 31, 2022, net cash used in operating activities was $2,545,689, primarily due to a net loss of $3,555,761 adjusted by various expenses[212] Research and Development - Research and development expenses rose to $3,799,707 for the three months ending March 31, 2023, up from $2,625,138 in the prior year, reflecting a 44.7% increase[20] - Research and development expenses increased by 45% to $3,799,707 for the three months ended March 31, 2023, compared to $2,625,138 for the same period in 2022[188] - The company is focused on developing next-generation photonic devices and expects to generate revenue from technology licensing and direct sales of electro-optic device components[29] - The company is focused on commercializing its next-generation electro-optic photonic devices based on its PIC™ technology platform, which includes Polymer Stack™, Polymer Plus™, and Polymer Slot™[90] Cash and Assets - Total current assets increased to $26,871,412 as of March 31, 2023, compared to $25,355,616 at December 31, 2022, representing a growth of 5.96%[18] - Cash and cash equivalents at the end of the period were $26,168,214, an increase of 8.7% from $24,102,151 at the beginning of the period[24] - As of March 31, 2023, cash and cash equivalents totaled $26,168,214, with total assets of $30,810,139 and liabilities of $976,973, resulting in stockholders' equity of $29,833,166[211] - Total stockholders' equity increased to $29,833,166 as of March 31, 2023, from $27,553,023 at December 31, 2022, marking a growth of 8.25%[18] Financing Activities - The company issued common stock to institutional investors, raising $5,499,377 during the three months ending March 31, 2023[24] - For the three months ended March 31, 2023, net cash provided by financing activities was $5,525,127, consisting of $25,750 from options and warrants exercise and $5,499,377 from resale of common stock to an institutional investor[211] - The company has entered into a purchase agreement to sell up to $30,000,000 of common stock over a 36-month period, with $26,999,998 remaining available as of April and May 2023[40] - The company received $5,499,377 in proceeds from the 2021 Purchase Agreement during the three months ended March 31, 2023[198] Expenses - General and administrative expenses rose by 54% to $1,360,170 for the three months ended March 31, 2023, compared to $885,430 for the same period in 2022[188] - Legal expenses increased by $239,406 for the three months ended March 31, 2023, compared to the same period in 2022[193] - The Company expects to incur approximately $1,675,000 in expenditures per month over the next 12 months[200] - The company anticipates cash requirements to increase as it expands research and development efforts and hires additional staff[202] Market and Product Development - The company is currently in various stages of development and evaluation with potential customers and strategic partners, indicating ongoing market expansion efforts[29] - The company aims for its initial modulator products to operate at symbol rates of at least 112 Gigabaud, translating to approximately 200 Gbps with PAM4 encoding[105] - The ridge waveguide modulator, Polymer Stack™, is designed for fiber optics communications and targets aggregated data rates of 800 Gbps and above, with a market opportunity worth over $2 billion over the next decade[109] - The company is developing a multichannel Polymer Photonic Integrated Circuit (PIC™) platform to address markets with aggregated data rates of 100 Gbps, 400 Gbps, and 800 Gbps[116] Intellectual Property and Innovation - The company is continually strengthening its patent portfolio through internal inventions and acquisitions[92] - The company acquired polymer technology intellectual property assets, enhancing its patent portfolio with 15 new patents related to electro-optic polymer technology[129] - The company received a patent for multi-layered electro-optic polymer modulators, improving performance and reliability in fiber optic communications[141] - The company received U.S. Patent number 10,591,755, enabling electro-optic polymer modulators to operate with high speed and low power directly from CMOS IC chips, reducing costs and power consumption[145] Corporate Developments - The company appointed Dr. Craig Ciesla to its Board of Directors, bringing significant industry experience to the leadership team[159] - The company was added to the Russell 3000 Index on June 27, 2022, which is expected to broaden its institutional investor base[167] - The company’s common stock was added to the Solactive EPIC Core Photonics EUR Index NTR, enhancing its credibility and exposure in the capital markets[149]