UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


SCHEDULE 14A INFORMATION


Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934


(Amendment No. )


Filed by the Registrant

þ

 

 

 

 

 

 

Filed by Party other than the Registrant

¨

 

 

 

 

 

 

Check the appropriate box:

 

 

 

 

 

¨

 Preliminary Proxy Statement

¨

 Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

þ

 Definitive Proxy Statement

¨

 Definitive Additional Materials

¨

 Soliciting Material under Rule 14a-12


LIGHTWAVE LOGIC, INC.

(Name of Registrant as Specified In Its Charter)

 

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)


Payment of Filing Fee (Check the appropriate box):

 

 

þ

No fee required.

 

 

¨

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

(1)

Title of each class of securities to which transaction applies:

 

(2)

Aggregate number of securities to which transaction applies:

 

(3)

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):

 

(4)

Proposed maximum aggregate value of transaction:

 

(5)

Total fee paid:

 

 

¨

Fee paid previously with preliminary materials.

 

 

¨

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing

 

for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

(1)

Amount previously paid:

 

(2)

Form, Schedule or Registration Statement No.:

 

(3)

Filing Party:

 

(4)

Date Filed:









[LWLG_14A002.GIF]

369 Inverness Parkway, Suite 350

Englewood, CO 80112

April 16, 2021


Dear Fellow Shareholder:


The 2021 Annual Meeting of Shareholders (the “Annual Meeting”) of Lightwave Logic, Inc. (the “Company”) will be held at 12:00 p.m., Eastern Time on Thursday, May 27, 2021.  Due to public health concerns regarding the novel coronavirus (COVID-19) pandemic, the Annual Meeting will be a “virtual meeting” of shareholders, which will be conducted exclusively online via live webcast. You will be able to attend the Annual Meeting virtually and to vote and submit questions during the virtual Annual Meeting by visiting www.virtualshareholdermeeting.com/LWLG2021 and entering the 16-digit control number provided in your proxy materials. Using this control number, you will be able to listen to the meeting live, submit questions and vote online. The Company encourages you to access the Annual Meeting before the meeting start time. Please allow ample time for online check-in, which will begin at 11:45 a.m., Eastern Time on Thursday, May 27, 2021.


The attached Notice of Annual Meeting and Proxy Statement describe the matters that we expect to be acted upon at the Annual Meeting. No slideshow presentation will be conducted this year at the Annual Meeting; however, management will be available to answer any questions you may have immediately after the Annual Meeting.


It is important that your shares be represented at the Annual Meeting. To be admitted virtually to the Annual Meeting at www.virtualshareholdermeeting.com/LWLG2021, you must enter the control number found on your proxy card or voting instruction form you previously received. You may vote during the Annual Meeting by following the instructions available on the meeting website during the meeting. We hope you will participate in the Annual Meeting. However, even if you anticipate attending the virtual meeting, we urge you to please vote your proxy either by mail, telephone or over the Internet in advance of the Annual Meeting to ensure that your shares will be represented, so please sign, date and return the enclosed Proxy without delay. The Company’s Annual Report on Form 10-K (including audited financial statements) for the fiscal year ended December 31, 2020 accompanies the Proxy Statement. The proxy materials and Annual Report included in this package are also available on the internet under the “Investors” page of the Company’s website at www.lightwavelogic.com.


All shares represented by Proxies will be voted at the Annual Meeting in accordance with the specifications marked thereon, or if no specifications are made, (i) as to Proposal 1, the Proxy confers authority to vote “FOR” the two (2) persons listed as nominees for a position on the Board of Directors; and (ii) as to Proposal 2, the Proxy confers authority to vote “FOR” the ratification of Morison Cogen LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021; and (iii) as to Proposal No. 3, the Proxy confers authority to vote “FOR” the approval of the advisory vote on the compensation of our named executive officers; and (iv) as to any other business which comes before the Annual Meeting, the Proxy confers authority to vote in the Proxy holder’s discretion


The Company’s Board of Directors believes that a favorable vote for each nominee for a position on the Board of Directors and for all other matters described in the attached Notice of Annual Meeting of Shareholders and Proxy Statement is in the best interest of the Company and its shareholders and recommends a vote “FOR” all nominees, “FOR” Proposals 2 and 3, and “THREE YEARS” on Proposal 4. Accordingly, we urge you to review the accompanying material carefully and to return the enclosed Proxy promptly.


Your vote is important, and all shareholders are cordially invited to attend the Annual Meeting virtually. Whether or not you expect to attend the Annual Meeting, we urge you to complete, date, sign and return the enclosed proxy card as promptly as possible, or to vote by Internet or by telephone, to ensure your representation at the Annual Meeting. Internet or telephonic voting is available by following the instructions provided on the proxy card or the voting instruction card. Also, see page 3 of the Proxy Statement for additional information on voting by Internet or telephone.


Thank you for your investment and continued interest in Lightwave Logic, Inc.


Sincerely,


/s/ Thomas E. Zelibor


Thomas E. Zelibor

Chair of the Board









LIGHTWAVE LOGIC, INC.


NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

TO BE HELD THURSDAY, MAY 27, 2021


To Our Shareholders:


The 2021 Annual Meeting of Shareholders (the “Annual Meeting”) of Lightwave Logic, Inc. (the “Company”) will be held at 12:00 p.m., Eastern Time on Thursday, May 27, 2021.  Due to public health concerns regarding the novel coronavirus (COVID-19) pandemic, the Annual Meeting will be a “virtual meeting” of shareholders, which will be conducted exclusively online via live webcast. You will be able to attend the Annual Meeting virtually and to vote and submit questions during the virtual Annual Meeting by visiting www.virtualshareholdermeeting.com/LWLG2021 and entering the 16-digit control number provided in your proxy materials. Using this control number, you will be able to listen to the meeting live, submit questions and vote online. The Company encourages you to access the Annual Meeting before the meeting start time. Please allow ample time for online check-in, which will begin at 11:45 a.m., Eastern Time on Thursday, May 27, 2021. The Annual Meeting is being held for the following purposes:


1.

To elect two (2) Directors to the Board of Directors to serve until the 2024 Annual Meeting of Shareholders or until their successors have been duly elected or appointed and qualified;

 

 

2.

To ratify the appointment of Morison Cogen LLP to serve as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021;

 

 

3.

To hold an advisory vote on the compensation of our named executive officers;

 

 

4.

To consider and take action upon such other business as may properly come before the Annual Meeting or any adjournments thereof.

 

 

The Board of Directors has fixed the close of business on April 15, 2021, as the Record Date for determining the shareholders entitled to notice of, and to vote at, the Annual Meeting or any adjournments thereof.


For a period of 10 days prior to the Annual Meeting, a shareholder list will be kept at the Company’s office and shall be available for inspection by shareholders during usual business hours. A shareholder list will also be available for inspection at the Annual Meeting.


Your attention is directed to the accompanying Proxy Statement for further information regarding each proposal to be made.


Whether or not you plan to attend the Annual Meeting, please sign and return the enclosed proxy card as promptly as possible in the envelope enclosed for your convenience, or please vote via the Internet or by telephone. If you receive more than one proxy card because your shares are registered in different names and addresses, each proxy card should be signed and returned to assure that all of your shares are represented at the virtual Annual Meeting. Proxies forwarded by or for banks, brokers or other nominees should be returned as requested by them. The prompt return of proxies will save the expense involved in further communication.


By Order of the Board of Directors


/s/ Thomas E. Zelibor


Thomas E. Zelibor

Chair of the Board

April 16, 2021









[LWLG_14A004.GIF]


PROXY STATEMENT


2021 ANNUAL MEETING OF SHAREHOLDERS


This Proxy Statement is furnished in connection with the solicitation by and on behalf of the Board of Directors (the “Board of Directors” or “Board”) of Lightwave Logic, Inc. of proxies to be voted at the 2021 Annual Meeting of Shareholders (the “Annual Meeting”) that will be held at 12:00 p.m., Eastern Time on Thursday, May 27, 2021. The Annual Meeting will be held in a virtual meeting format only and you will be able to attend the Annual Meeting virtually and to vote and submit questions during the virtual Annual Meeting by visiting www.virtualshareholdermeeting.com/LWLG2021. In this Proxy Statement, Lightwave Logic, Inc. is referred to as “we,” “us,” “our,” “Company” or “Lightwave Logic” unless the context indicates otherwise. The Annual Meeting has been called to consider and take action on the following proposals: (i) to elect two (2) Directors to the Board of Directors; (ii) to ratify the appointment of Morison Cogen LLP to serve as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021; (iii) to hold an advisory vote on the compensation of our named executive officers; and (iv) to consider and take action upon such other business as may properly come before the Annual Meeting or any adjournments thereof.


The Board of Directors knows of no other matters to be presented for action at the Annual Meeting. However, if any other matters properly come before the Annual Meeting, the persons named in the proxy will vote on such other matters and/or for other nominees in accordance with their best judgment. The Company’s Board of Directors recommends that the shareholders vote “FOR” all nominees, “FOR” Proposals 2 and 3, and “THREE YEARS” on Proposal 4. Only holders of record of common stock of the Company at the close of business on April 15, 2021 (the “Record Date”) will be entitled to vote at the Annual Meeting.


The principal executive offices of our Company are located at 369 Inverness Parkway, Suite 350, Englewood, CO 80112, and our telephone number is 720-340-4949. The approximate date on which this Proxy Statement, the proxy card or a voting instruction card and any other accompanying materials are first being sent or given to shareholders is April 16, 2021. A copy of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (“Annual Report”) is enclosed with these materials but should not be considered proxy solicitation material. Additionally, the proxy materials and Annual Report included in this package are also available on the internet under the “Investors” page of the Company’s website at www.lightwavelogic.com.




1





INFORMATION CONCERNING SOLICITATION AND VOTING


Why did I receive this Proxy Statement?


Our Board of Directors is soliciting your proxy to vote at the Annual Meeting because you were a shareholder of record at the close of business on April 15, 2021 (the “Record Date”) and are entitled to vote at the meeting. The Company has delivered to you by mail beginning on or about April 16, 2021, the Proxy Statement and the Annual Report, along with either a proxy card or a voting instruction card. This Proxy Statement summarizes the information you need to know to vote at the Annual Meeting.


You do not need to attend the Annual Meeting to vote your shares. Please see “How do I vote?” below, for instructions on how to vote your shares.


Who is entitled to vote?


Shareholders as of the close of business on the Record Date are entitled to vote. Each shareholder is entitled to one vote for each share of common stock held on the Record Date. Shareholders are not entitled to cumulative voting.


Who can attend the Annual Meeting?


All shareholders as of the Record Date, or their duly appointed proxies, may attend.


Why is the Annual Meeting virtual only?


Due to public health concerns regarding the novel coronavirus (COVID-19) pandemic, the Annual Meeting will be a “virtual meeting” of shareholders, which will be conducted exclusively online via live webcast. You will not be able to attend the Annual Meeting physically. Supporting the health and well-being of our employees and shareholders is one of our top priorities.


What do I need to attend and participate in the Annual Meeting?


This year’s Annual Meeting will be held in a virtual meeting format only. You will not be able to attend the Annual Meeting physically.  To participate in the Annual Meeting, you will need the 16-digit control number included on your proxy card or on the instructions that accompanied your proxy materials. The Company encourages you to access the Annual Meeting before the start time of 12:00 p.m., Eastern Time on Thursday, May 27, 2021. Please allow ample time for online check-in, which will begin at 11:45 a.m., Eastern Time on Thursday, May 27, 2021.


Participants should ensure that they have a strong Wi-Fi connection wherever they intend to participate in the meeting. Participants should also give themselves plenty of time to log in and ensure that they can hear streaming audio prior to the start of the meeting.


What am I being asked to vote on at the meeting?


We are asking our shareholders to elect directors, ratify the appointment of our independent registered public accounting firm, and approve our executive compensation in a non-binding advisory vote.


How many votes are needed for approval of each item?


Proposal Number 1. Directors will be elected by a plurality of the votes cast in person or by proxy, meaning the two nominees receiving the most votes will be elected as directors. A “withhold” vote with respect to any nominee will have no effect on the election of that nominee. Shareholders are not entitled to cumulative voting with respect to the election of directors.


Proposal Number 2. The appointment of our independent registered public accounting firm will be ratified if a majority of the votes present in person or by proxy and entitled to vote on the matter vote in favor of the proposal. Abstentions will have the same effect as a vote “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.




2





Proposal Number 3. The non-binding advisory vote on the compensation of our named executive officers will be approved if a majority of the votes present in person or by proxy and entitled to vote on the matter vote in favor of the proposal. Abstentions will have the same effect as a vote “against” this proposal, and broker non-votes will have no effect on the vote for this proposal.


Unless a contrary choice is indicated, all duly executed proxies will be voted in accordance with the instructions set forth on the proxy card.


What constitutes a quorum?


As of the Record Date, 102,082,247 shares of our common stock were issued and outstanding. The presence, either in person or by proxy, of the holders of thirty-three and one-third percent (33.3%) of these outstanding shares is necessary to constitute a quorum for the Annual Meeting. Abstentions and broker non-votes are counted as present and entitled to vote for purposes of determining a quorum.


How do I vote?

 

Record Holders:

 

 

1.

Vote by Internet. Follow the VOTE BY INTERNET instructions on your proxy card.

 

2.

Vote by phone. Follow the VOTE BY PHONE instructions on your proxy card.

 

3.

Vote by mail. Follow the VOTE BY MAIL instructions on your proxy card (a postage-paid envelope is provided for mailing in the United States).

 

4.

Vote in person. Attend the virtual Annual Meeting and vote online during the Annual Meeting.

 

If you vote by phone or Internet, please DO NOT mail your proxy card.


Beneficial Owners (Holding Shares in Street Name):

 

 

1.

Vote by Internet. Follow the VOTE BY INTERNET instructions on the enclosed vote instruction form.

 

2.

Vote by phone. Follow the VOTE BY PHONE instructions on the enclosed vote instruction form.

 

3.

Vote by mail. Follow the VOTE BY MAIL instructions on the enclosed vote instruction form (a postage-paid envelope is provided for mailing in the United States).


If you vote by phone or Internet, please DO NOT mail your proxy card.


What is the difference between being a “record holder” and “holding shares in street name?”


Most shareholders of the Company hold their shares in a stock brokerage account or through a nominee rather than directly in their own name. As summarized below, there are some distinctions between shares held of record and those owned beneficially.


Record Holders: If your shares are registered directly in your name with our Company’s transfer agent, Broadridge, you are considered the shareholder of record with respect to those shares, and these proxy materials are being sent directly to you by the Company. As the shareholder of record, you have the right to grant your voting proxy directly to us or to vote online at the Annual Meeting. We have enclosed a proxy card for you to use.


If you hold your shares in “street name”: If your shares are held in a stock brokerage account or by a nominee, you are considered the beneficial owner of the shares which are held in “street name” and these proxy materials are being forwarded to you by your nominee, who is considered the shareholder of record with respect to these shares. As the beneficial owner, you have the right to direct your nominee on how to vote and are also invited to attend the Annual Meeting. However, since you are not the shareholder of record, you may not vote these shares online at the Annual Meeting. Your nominee has enclosed a voting instruction card for you to use in directing the nominee how to vote your shares.



3





What happens if I return my signed proxy card but forget to indicate how I want my shares of common stock voted?


If you sign, date and return your proxy and do not mark how you want to vote, your proxy will be counted as a vote “FOR” all of the nominees for directors and “FOR” all of the other proposals.


What happens if I do not instruct my broker how to vote or if I mark “abstain” or “withhold authority” on the proxy?


If you mark your proxy “abstain” your vote will have the same effect as a vote against the proposal.  A “withhold” vote with respect to any director nominee will have no effect on the election of that nominee. If you do not instruct your broker how to vote, your broker may vote for you on “routine” proposals but not on “non-routine” proposals. The ratification of our auditor is considered a routine matter, but all other proposals are considered non-routine matters. Therefore, if you do not vote on the non-routine matters or provide voting instructions, your broker will not be allowed to vote your shares on those matters and your broker will return your proxy card with no vote (the “non-vote”) on the non-routine matter. Broker non-votes with respect to a matter will not be considered as present and entitled to vote with respect to that matter and thus will have no effect on the vote for that matter.


Can I revoke or change my voting instructions before the meeting?


For shares that are held in "street name", the shareholder must follow the directions provided by its bank, broker or other intermediary for revoking or modifying voting instructions. For shares that are registered in the shareholder's own name, the proxy may be revoked by written notification to the Company Secretary prior to its exercise and providing relevant name and account information, submitting a new proxy card with a later date (which will override the earlier proxy) or voting online at the Annual Meeting.


Who will count the vote?


A Broadridge representative will tabulate the votes and act as inspector of election at the Annual Meeting.


Where can I find the voting results of the Annual Meeting?


We intend to publish the final results in a current report on Form 8-K within four business days after the end of the Annual Meeting.


What does it mean if I get more than one proxy card?


It means that you hold shares registered in more than one account. You must return all proxies to ensure that all of your shares are voted.


How many copies of the Proxy Statement or Annual Report to Shareholders will I receive if I share my mailing address with another security holder?


Unless we have been instructed otherwise, we are delivering only one Proxy Statement and Annual Report to Shareholders to multiple security holders sharing the same address. This is commonly referred to as “householding.” We will, however, deliver promptly a separate copy of the Proxy Statement and Annual Report to Shareholders to a security holder at a shared address to which a single copy of such documents was delivered, on written or oral request. Requests for copies of the Proxy Statement and Annual Report to Shareholders or requests to cease householding in the future should be directed to: Secretary, Lightwave Logic, Inc., 369 Inverness Parkway, Suite 350, Englewood, CO 80112. Telephone 720-340-4949. If you share an address with another shareholder and wish to receive a single copy of these documents, instead of multiple copies, you may direct this request to us at the address or telephone number listed above. Shareholders who hold shares in “street name” may contact their brokerage firm, bank, broker-dealer or other similar organization to request information about householding.


How can I obtain additional proxy materials or other Company materials?


The proxy materials and Annual Report included in this package, along with the Company’s other SEC filings, are available on the “Investors” page of the Company’s website at www.lightwavelogic.com. Any shareholder desiring additional proxy materials, a copy of any other document incorporated by reference in this Proxy Statement, or a copy of the Company’s bylaws should contact the Company’s Secretary. Requests should be directed to: Secretary, Lightwave Logic, Inc., 369 Inverness Parkway, Suite 350, Englewood, CO 80112. Telephone 720-340-4949.



4





Who pays for the cost of this proxy solicitation?


The Company pays for the cost of soliciting proxies on behalf of the Board of Directors. We have retained Morrow Sodali LLC, 470 West Ave., Stamford, Connecticut 06902, to aid in the solicitation of proxy materials for the estimated fee of $7,500 plus expenses. The Company also will reimburse brokerage firms and other custodians, nominees and fiduciaries for their reasonable expenses in forwarding proxy material to beneficial owners. Proxies may be solicited by mail, telephone, email, other electronic means or in person. Directors, officers and regular, full-time employees of the Company, none of whom will receive any additional compensation for their services, may by telephone, facsimile, email or personally, request the return of proxies.


Who are the largest principal shareholders?


See “Voting Securities And Principal Holders Thereof” elsewhere in this Proxy Statement for information regarding ownership of greater than 5% of the Company’s common stock as of the Record Date.


What percentages of stock do the directors and officers own?


Together, they own approximately 6.7% of our Company common stock as of the Record Date. For information regarding the ownership of our common stock by management, see “Voting Securities And Principal Holders Thereof” elsewhere in this Proxy Statement.


Do I have dissenters’ rights of appraisal?


Under Nevada Revised Statutes, our shareholders are not entitled to appraisal rights with respect to any of the items proposed to be voted upon at the Annual Meeting.


Where can I find general information about the Company?


General information about us can be found on our website at www.lightwavelogic.com. The information on our website is for informational purposes only and should not be relied upon for investment purposes. The information on our website is not incorporated by reference into this Proxy Statement and should not be considered part of this or any other report that we file with the Securities and Exchange Commission (“SEC”). We make available free of charge, either by direct access on our website or a link to the SEC’s website, our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the SEC. Our reports filed with, or furnished to, the SEC are also available directly at the SEC’s website at www.sec.gov.


ALL PROXIES RECEIVED WILL BE VOTED IN ACCORDANCE WITH THE CHOICES SPECIFIED ON SUCH PROXIES. PROXIES WILL BE VOTED IN FAVOR OF EACH DIRECTOR NOMINEEE AND FOR A PROPOSAL IF NO CONTRARY SPECIFICATION IS MADE. ALL VALID PROXIES OBTAINED WILL BE VOTED AT THE DISCRETION OF THE PERSONS NAMED IN THE PROXY WITH RESPECT TO ANY OTHER BUSINESS THAT MAY COME BEFORE THE ANNUAL MEETING.



5





INFORMATION REGARDING DIRECTORS, EXECUTIVE

OFFICERS AND CORPORATE GOVERNANCE


BOARD OF DIRECTORS


Our bylaws provide that the number of directors who constitute our Board of Directors is determined by resolution of the Board of Directors, but the total number of directors constituting the entire Board of Directors shall not be less than three or more than nine. Our Board of Directors currently consists of seven directors. Our Board of Directors is divided into three classes, as nearly equal in number as possible, designated: Class I, Class II and Class III, with staggered terms of office and with each director serving for a term ending on the date of the third annual meeting following the annual meeting at which such director was elected; provided that the term of each director shall continue until the election and qualification of a successor and be subject to such director's earlier death, resignation or removal.


The names of our directors, including the two (2) nominees to be elected at the Annual Meeting, and certain information about each of them are set forth below.


Identity of directors, executive officers and significant employees


Name

 

Age

 

Position

 

Director Class/ Term

Michael S. Lebby

 

60

 

Director; Chief Executive Officer

 

Class II Expires 2022

James S. Marcelli

 

73

 

Director; President; Chief Operating Officer, Secretary

 

Class III Expires 2023

Thomas E. Zelibor

 

66

 

Chair of the Board

 

Class III Expires 2023

Joseph A. Miller

 

79

 

Director

 

Class II Expires 2022

Ronald A Bucchi

 

66

 

Director

 

Class II Expires 2022

Siraj Nour El-Ahmadi

 

56

 

Director

 

Class I Expires 2021

Frederick J. Leonberger

 

73

 

Director

 

Class I Expires 2021


Business experience of directors, executive officers, and significant employees

Dr. Michael Lebby. Dr. Lebby has served as our Chief Executive Officer since May 1, 2017 and as a director of our Company since August 26, 2015. He also previously served a member of our Operations Committee until April 30, 2017. Dr. Lebby is in charge of the overall general management of the Company and supervision of Company policies, setting the Company’s strategies, formulating and overseeing the Company’s business plan, raising capital, expanding the Company’s management team and the general promotion of the Company From June 2013 to 2015, Dr. Lebby has served as President and CEO of OneChip Photonics, Inc., a privately held company headquartered in Ottawa, Canada, that is a leading provider of low-cost, small-footprint, high-performance indium phosphide (InP)-based photonic integrated circuits (PICs) and PIC-based optical sub-assemblies (OSAs) for the Data Center markets. Also, from 2013 to 2015 Dr. Lebby served as part-time full professor, and chair of optoelectronics at Glyndwr University in Wales, UK, to bring forward advanced materials, device, and integrated photonics based technologies for the datacenter and high performance computing markets. During the period 2014 to 2016, Dr. Lebby focused on a foundry based model for InP-based photonic integrated circuits (PICs) and optoelectronic integrated circuits (OEICs) in the datacenter segment and was instrumental in assembling California’s proposal (via USC) to the Federal Government for an integrated photonics manufacturing institute. Dr. Lebby holds a Doctor of Engineering, a Ph.D., a MBA and a bachelor’s degree, all from the University of Bradford, United Kingdom. Dr. Lebby has well over 200 issued utility patents with the USPTO. This number expands to over 450 if international derivative patents are included.


Mr. James S. Marcelli. Mr. Marcelli has served as an officer and director of our Company since August 2008. Since May 2012, Mr. Marcelli has served as our Company’s President and Chief Operating Officer, and he was named our Secretary in March 2018. Previously, from August 2008 to April 2012, Mr. Marcelli served as our President and Chief Executive Officer. Mr. Marcelli is in charge of the day-to-day operations of our Company and its movement to a fully functioning commercial corporation, and also serves as our Company’s principal financial officer. Since 2000, Mr. Marcelli has served as the president and chief executive officer of Marcelli Associates, a consulting company that offers senior management consulting, mentoring, and business development services to start-up and growth companies. Business segments Mr. Marcelli has worked with included an Internet networking gaming center, high-speed custom gaming computers, high tech manufacturing businesses and business service companies.




6





Thomas E. Zelibor, Rear Admiral, USN (Ret). RADM Zelibor has served as our Chair of the Board of Directors (non-executive) since May 1, 2017. Previously, has served as our Chief Executive Officer and Chair of the Board of Directors (executive) from May 2012 to April 30, 2017. Mr. Zelibor also previously served as Chair of the Board of Directors (non-executive) of our Company since October 2011 and has served as a director of our Company since July 2008. He also previously served on our Operations Committee. Mr. Zelibor is currently the Chief Executive Officer of the Space Foundation. Mr. Zelibor previously served as a Director of Nuvectra Corp., the Chief Executive Officer and President of Zelibor & Associates, LLC, a management-consulting firm and as the Chief Executive Officer and President of Flatirons Solutions Corp. Prior to that time, RADM Zelibor served in the U.S. Navy in a number of positions, including as the Dean of the College of Operational and Strategic Leadership at the United States Naval War College where he was responsible for the adoption of a corporate approach to leadership development; Director of Global Operations, United States Strategic Command; Director, Space, Information Warfare, Command and Control on the Navy staff; Department of the Navy, Deputy Chief Information Officer (CIO), Navy; Commander, Carrier Group Three and Commander, Naval Space Command. Mr. Zelibor earned his bachelor’s degree from the United States Naval Academy and has been a participant in the Senior Leader in Residence Program and a visiting scholar for the Zell Center for Risk Research at the Kellogg School of Management, Northwestern University.


Dr. Joseph A. Miller, Jr. Dr. Miller has served as a director of our Company since May 10, 2011 and he currently serves as a member of our Audit Committee. From 2002 to May 2012, Dr. Miller served as Executive Vice President and Chief Technology Officer of Corning Incorporated, having joined Corning Incorporated in 2001 as Senior Vice President and Chief Technology Officer. Prior to joining Corning Incorporated, Dr. Miller was with E.I. DuPont de Nemours, Inc., where he served as Chief Technology Officer and Senior Vice President for Research and Development since 1994. Dr. Miller began his career with DuPont in 1966. Dr. Miller previously served as a director and Non-executive Chairman of Nuvectra Corp., and as a director for Greatbatch, Inc. He holds a doctorate degree in Chemistry from Penn State University.


Mr. Ronald A. Bucchi. Mr. Bucchi has served as a director of our Company since June 11, 2012, and he currently serves as the Chair of our Audit Committee. Mr. Bucchi is currently a self-employed C.P.A., CGMA with a specialized practice that concentrates in CEO consulting, strategic planning, mergers, acquisitions, business sales and tax. He works with domestic and international companies. Mr. Bucchi is a former member of the board of directors of First Connecticut Bancorp, Inc., having served as Lead Director, Chair of the Audit Committee, Governance Chairman and a member of the Asset Liability Committee and Loan Committee. The Bank sold in September of 2018. He is currently a member of the Advisory Board of Baker Street Scientific, Inc., the Treasurer and a member of the Board of Directors of the Petit Family Foundation, Inc. and the Farmington Bank Foundation, Inc. He has served on numerous other community boards and is past Chairman of the Wheeler Clinic and the Wheeler YMCA. He is a member of the Connecticut Society of Certified Public Accountants, American Institute of Certified Public Accountants and Chartered Global Management Accountant. Mr. Bucchi is a graduate of the Harvard Business School Executive Education program with completed course studies in general board governance, audit and compensation and a graduate of Central Connecticut State University where he received his B.S. in Accounting.


Mr. Siraj Nour El-Ahmadi. Mr. El-Ahmadi has served as a director of our Company since October 2, 2013, and he currently serves as a member of our Operations Committee. Since 2004, Mr. El-Ahmadi has served as Founder, President and Chief Executive Officer of Menara Networks, a developer of innovative products and solutions that simplify layered optical transport networks. Mr. El-Ahmadi has over 17 years of experience in optical transmission in particular and the telecom industry in general. Prior to founding Menara, Mr. El-Ahmadi served as Vice President-Marketing & Product Management at Nortel where he was responsible for the OPTera LH 4000 ULR product (acquired from Qtera) that achieved over $200M in revenues in its first two years. Prior to that, Mr. El-Ahmadi was the Product Architect & Vice President of Product Management at Qtera Corporation, a successful technology start-up acquired by Nortel in 2000 for $3.25 billion. Mr. El-Ahmadi also held a Senior Manager position at Bell Northern Research and worked as a Transmission Engineer at WilTel (WorldCom) where he evaluated and deployed the world’s first bidirectional EDFA and bi-directional WDM transmission. Mr. El-Ahmadi holds a BS and MS in Electrical Engineering from the University of Oklahoma, is a member of Eta Kappa Nu and is the inventor of 11 patents, issued or pending, in the area of optical communications. He has authored a number of publications and is a frequent speaker at telecom and optical networking events and conferences.




7





Dr. Frederick J. Leonberger. Dr. Leonberger has served as a director of our Company since April 1, 2017, and he currently serves as a member of our Operations Committee. Since 2010, Dr. Leonberger has served as the Principal of EOvation Advisors LLC, a private technology and business advisory firm and presently serves as a board member for various private photonics companies and as a Professor at the Institute for Advanced Discovery & Innovation, University of South Florida. Dr. Leonberger is a widely known technologist and industry leader in the field of photonics and fiber optics. For nearly 40 years he has been a leading contributor to the development of a variety of important optical devices, company leadership, product and business strategy, and commercialization. The integrated optical modulator technology he and his colleagues pioneered has been used pervasively for over 20 years to encode data at multi-Gb/s rates in long-haul fiber optic networks (the Internet "superhighways"). He previously served as senior vice president and chief technology officer of JDS Uniphase Corporation (JDSU, now Lumentum), a leading optical components company, from 1995 until his retirement in 2003, where he played a lead role in technology strategy, mergers and acquisitions and intellectual property activities. Prior to JDSU, he was co-founder and general manager of United Technologies Photonics (UTP), a high-speed optical modulator company, and held research management positions at United Technologies Research Center (UTRC) and MIT Lincoln Laboratory. He is a member of the National Academy of Engineering and the recipient of several industry awards.


The Board of Directors believes that each of the Directors named above has the necessary qualifications to be a member of the Board of Directors. Each Director has exhibited during his prior service as a director the ability to operate cohesively with the other members of the Board of Directors. Moreover, the Board of Directors believes that each director brings a strong background and skill set to the Board of Directors, giving the Board of Directors as a whole competence and experience in diverse areas, including corporate governance and board service, finance, management and industry experience.


Transactions with Related Persons


None.

 

Section 16(a) Reports


Section 16(a) of the Securities Exchange Act of 1934 requires that our executive officers and directors, and persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. To the best of our knowledge, based solely upon a review of Forms 3 and 4 and amendments thereto furnished to our Company during its most recent fiscal year and Forms 5 and amendments thereto furnished to our Company with respect to its most recent fiscal year, and any written representation referred to in paragraph (b)(1) of Item 405 of Regulation S-K, all of our executive officers, directors and greater-than-ten percent stockholders complied with all Section 16(a) filing requirements.




8





CORPORATE GOVERNANCE


Code of Ethics


Our Company has adopted a Code of Ethics and Business Conduct that applies to all of the Company’s employees, including its principal executive officer and principal financial officer. A copy of our Code of Ethics and Business Conduct is available for review on the “Investors - Corporate Governance” page of our Company’s website www.lightwavelogic.com. The Company intends to disclose any changes in or waivers from its Code of Ethics and Business Conduct by posting such information on its website


Audit Committee


Our Company has in place a separately designated standing Audit Committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. Our Audit Committee is governed by an Audit Committee charter. A copy of our Audit Committee Charter is available for review on the “Investors - Corporate Governance” page of our Company’s website www.lightwavelogic.com.


Our Audit Committee has reviewed and discussed the audited financial statements with management and has discussed with its independent auditors the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (PCAOB) and the SEC.  The Audit Committee has received the written disclosures and the letter from its independent accountant required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence and has discussed with its independent accountant the independent accountant’s independence. Based on the review and discussions described above, the Audit Committee recommended to the Board of directors that the audited financial statements be included in our Annual Report on Form 10-K for the last fiscal year for filing with the Securities and Exchange Commission. This Audit Committee Report has been furnished by the following directors who comprise the Audit Committee of the Board of Directors: Ronald A. Bucchi and Joseph A. Miller, Jr.


Our Audit Committee is comprised of Ronald A. Bucchi and Joseph A. Miller, Jr., each of whom is an independent director, as defined below in “Director Independence.” Mr. Bucchi serves as our Audit Committee financial expert as that term is defined by the rules promulgated by the Securities and Exchange Commission. During our last fiscal year, our Audit Committee held four (4) meetings.


Compensation Committee


Our entire Board of Directors serves as our Compensation Committee. Our Board of Directors does not have a standing Compensation Committee or committee performing similar functions. This is due to our development stage and the small number of executive officers involved with our Company. Our entire Board of Directors currently participates in the consideration of executive officer and director compensation. We do not have a Compensation Committee charter. Our Board of Directors is responsible for reviewing, recommending and approving our compensation policies and benefits, including the compensation of all of our executive officers and directors. Our Board of Directors also has the principal responsibility for the administration of our employee stock plan. Our Board of Directors will continue to evaluate, from time to time, whether it should appoint a standing Compensation Committee.


Executive officers who are also directors participate in determining or recommending the amount or form of executive and director compensation, but the independent directors ultimately determine the executive compensation. During 2020, Michael S. Lebby and James S. Marcelli served as both executive officers and directors of our Company. Neither the Board of Directors nor management utilizes compensation consultants in determining or recommending the amount or form of executive and director compensation.


Nominating Committee


Our entire Board of Directors serves as our Nominating Committee. Our Board of Directors does not have a standing Nominating Committee or committee performing similar functions. This is due to our development stage and smaller sized Board of Directors. We do not have a Nominating Committee charter. Instead of having such a committee, our Board of Directors historically has searched for and evaluated qualified individuals to become nominees for membership on our Board of Directors. The directors recommend candidates for nomination for election or reelection for each annual meeting of shareholders and, as necessary, to fill vacancies and newly created directorships.




9





All of our director nominees have expressed their willingness to continue to serve as our directors. When new candidates for our Board of Directors are sought, all of our directors evaluate each candidate for nomination as director within the context of the needs and the composition of the board as a whole. The Board of Directors conducts any appropriate and necessary inquiries into the backgrounds and qualifications of candidates. When evaluating director nominees, our Board of Directors generally seeks to identify individuals with diverse, yet complementary backgrounds. Our directors consider both the personal characteristics and experience of director nominees, including each nominee’s independence, diversity, age, skills, expertise, time availability and industry background in the context of the needs of the Board of Directors and the Company. The Board of Directors believes that director nominees should exhibit proven leadership capabilities and experience at a high level of responsibility within their chosen fields, and have the experience and ability to analyze business and/or scientific issues facing our Company. In addition to business expertise, the Board of Directors requires that director nominees have the highest personal and professional ethics, integrity and values and, above all, are committed to representing the long-term interests of our shareholders and other stakeholders. To date, all new candidates have been identified by members of our Board of Directors, and we have not paid any fee to a third party to assist in the process of identifying or evaluating director candidates.


Our directors will consider candidates for nomination as director who are recommended by a shareholder and will not evaluate any candidate for nomination for director differently because the candidate was recommended by a shareholder. To date, we have not received or rejected any suggestions for a director candidate recommended by any shareholder or group of shareholders owning more than 5% of our common stock.


When submitting candidates for nomination to be elected at our annual meeting of shareholders, shareholders should follow the following notice procedures and comply with applicable provisions of our bylaws. To consider a candidate recommended by a shareholder for nomination at the 2022 Annual Meeting of Shareholders, the recommendation must be delivered or mailed to and received by our Secretary within the time periods discussed elsewhere in this Proxy Statement under the heading “Shareholder Proposals for 2022 Annual Meeting.” The recommendation must include the information specified in our bylaws for shareholder nominees to be considered at an annual meeting, along with the following:


 

·

The shareholder’s name and address and the beneficial owner, if any, on whose behalf the nomination is proposed;

 

·

The shareholder’s reason for making the nomination at the annual meeting, and the signed consent of the nominee to serve if elected;

 

·

The number of shares owned by, and any material interest of, the record owner and the beneficial owner, if any, on whose behalf the record owner is proposing the nominee;

 

·

A description of any arrangements or understandings between the shareholder, the nominee and any other person regarding the nomination; and

 

·

Information regarding the nominee that would be required to be included in our Proxy Statement by the rules of the Securities and Exchange Commission, including the nominee’s age, business experience for the past five years and any other directorships held by the nominee.


The information listed above is not a complete list of requisite information. The Secretary will forward any timely recommendations containing the required information to our independent directors for consideration.


No material changes to the procedures by which our shareholders may recommend nominees to our Board of Directors has occurred since we last provided disclosure regarding these procedures in our Definitive Schedule 14A filed on April 21, 2020.


Operations Committee


Our Board of Directors has established an Operations Committee in order to utilize the talent of its members of the Board of Directors on a temporary basis for various short-term Company projects. Dr. Frederick Leonberger became a director of our Company on April 1, 2017 and was appointed to serve on the Company’s Operations Committee at that time. Siraj Nour El-Ahmadi became a director of our Company on November 1, 2013 and was appointed to serve on the Company’s Operations Committee on September 1, 2020. The Operations Committee Charter is available to shareholders on our website at www.lightwavelogic.com. During our last fiscal year, our Operations Committee held 15 telephonic meetings.




10





Director Independence

Although we are currently traded on the OTCQX Market, our Board of Directors has reviewed each of the Directors’ relationships with the Company in conjunction with NASDAQ Listing Rule 5605(a)(2) that provides that an “independent director” is ‘one who is not an executive officer or an employee of the company and who does not have a relationship that, in the opinion of the board of directors, would interfere with exercising independent judgment in carrying out a director’s responsibilities.’ Our Board of Directors has affirmatively determined that the following directors, Joseph A. Miller, Jr., Ronald A. Bucchi, Siraj Nour El-Ahmadi, Thomas E. Zelibor and Frederick J. Leonberger are independent directors in that they are independent of management and free of any relationship that would interfere with their independent judgment as members of our Board of Directors. In making such determination, our Board of Directors considered the relationships that each such non-employee director has with our Company and all other facts and circumstances that our Board of Directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director. The following members of our Board of Directors, Dr. Michael Lebby and James S. Marcelli are not independent directors pursuant to the standards described above.


Our Company does not have a separately designated Nominating Committee or Compensation Committee or committee performing similar functions; therefore, our full Board of Directors currently serves in these capacities.


Policies and Procedures for Related-Party Transactions


Our Company does not have any formal written policies or procedures for related party transactions, however in practice, our Board of Directors reviews and approves all related party transactions and other matters pertaining to the integrity of management, including potential conflicts of interest, trading in our securities, or adherence to standards of business conduct.


Board Leadership Structure


Our bylaws provide the Board of Directors with flexibility to combine or separate the positions of Chair of the Board and Principal Executive Officer in accordance with its determination that utilizing one or the other structure is in the best interests of our Company. Our current structure is that of separate Principal Executive Officer and Chair of the Board of Directors. Dr. Michael S. Lebby serves as our Principal Executive Officer and is responsible for the overall general management of the Company and supervision of Company policies, setting the Company’s strategies, formulating and overseeing the Company’s business plan, raising capital, expanding the Company’s management team and the general promotion of the Company. Thomas E. Zelibor serves as our Chair of the Board of Directors, which is a non-executive position, and is responsible for performing a variety of functions related to our corporate leadership and governance, including steering the direction of the Company, coordinating board activities, setting relevant items on the agenda, leading the Board’s review of our Chief Executive Officer and ensuring adequate communication between the Board of Directors and management, which he does in conjunction with the independent directors. Mr. Zelibor is an independent director. Our Board of Directors has determined that this leadership structure is appropriate for the size of our Company.


Our Board is comprised of five outside directors and two inside directors. Our five outside directors are independent and our two inside directors are non-independent. Our Board of Directors has determined that maintaining the independence of a majority of our directors helps maintain its independent oversight of management.


Risk Oversight


The Board of Directors is actively involved in the oversight of risks, including strategic, operational and other risks, which could affect our business. The Board of Directors does not have a standing Risk Management Committee, but administers this oversight function directly through the Board of Directors as a whole, which oversee risks relevant to their respective functions. The Board of Directors considers strategic risks and opportunities and administers its respective risk oversight function by evaluating management’s monitoring, assessment and management of risks, including steps taken to limit our exposure to known risks, through regular interaction with our senior management and in Board and committee deliberations that are closed to members of management. The interaction with management occurs not only at formal Board and committee meetings but also through periodic and other written and oral communications. Our Audit Committee is responsible for oversight of our Company’s accounting and financial reporting processes and also discusses with management the Company’s financial statements, internal controls and other accounting and related matters.




11





Hedging Disclosure


We do not have any practices or policies regarding the ability of our employees (including officers) or directors, or any of their designees, to purchase financial instruments (including prepaid variable forward contracts, equity swaps, collars, and exchange funds), or otherwise engage in transactions, that hedge or offset, or are designed to hedge or offset, any decrease in the market value of our equity securities.


Shareholder Communications with the Board


Shareholders who desire to communicate with the Board of Directors, or a specific director, may do so by sending the communication addressed to either the Board of Directors or any director, c/o Lightwave Logic, Inc., 369 Inverness Parkway, Suite 350, Englewood, CO 80112. These communications will be delivered to the Board, or any individual director, as specified.


Meetings of the Board and Committees; Meeting Attendance


During 2020, there were five (5) meetings of the Board of Directors. During fiscal 2020, all of the directors attended over 75% of the Board and committee meetings for which the directors served. The Board of Directors also acted at times by unanimous written consent, as authorized by our bylaws and the Nevada Revised Statutes.


We have no policy regarding the attendance of the members of our Board of Directors at our annual meetings of security holders. All seven members of our Board of Directors attended our 2020 annual meeting virtually.




12





EXECUTIVE OFFICERS


Identity of Executive Officers and Significant Employees


Name

 

Age

 

Position

Michael S. Lebby

 

60

 

Director; Chief Executive Officer

James S. Marcelli

 

73

 

Director; President; Chief Operating Officer; Secretary


Business Experience of Executive Officers and Significant Employees


The business experience of Messrs. Lebby and Marcelli is described above under the caption “Business Experience of Directors.”


EXECUTIVE COMPENSATION


Compensation Discussion and Analysis 


The Company’s entire Board of Directors currently participates in the review and determination of the compensation packages of our executive officers because our Board of Directors currently has no standing Compensation Committee or committee performing similar functions. A discussion of the policies and decisions that shape our executive compensation program, including the specific objectives and elements, is set forth below.


Executive Compensation Objectives and Philosophy


The objective of our executive compensation program is to attract, retain and motivate talented executives who are critical for the continued growth and success of our Company and to align the interests of these executives with those of our shareholders. To this end, our compensation programs for executive officers are designed to achieve the following objectives:


 

·

attract talented and experienced executives to join the Company;

 

·

motivate, reward and retain executives whose knowledge, skills and performance are critical to our success;

 

·

be market-based and reflect the competitive environment for personnel;

 

·

focus executive behavior on achievement of our corporate mission and long-term corporate objectives and strategy;

 

·

be affordable, within the context of our operating expense model;

 

·

be fairly and equitably administered;

 

·

reflect our values; and

 

·

align the interests of management and shareholders by providing management with longer-term incentives through equity ownership.


The Board of Directors reviews the allocation of compensation components regularly to help ensure alignment with strategic and operating goals, competitive market practices and our changing business needs. The Board of Directors focuses on simplicity and flexibility wherever possible. The Board of Directors does not apply a specific formula to determine the allocation between cash and non-cash forms of compensation. Certain compensation components, such as base salaries, benefits and perquisites, are intended primarily to attract and retain qualified executives. Other compensation elements, such as long-term incentive opportunities, are designed to motivate and reward our long-term performance and to strongly align named executive officers’ interests with those of shareholders.


Elements of Executive Officer Compensation


The primary elements of our executive officer compensation program are: (i) annual base salary; and (ii) long-term equity incentive compensation in the form of stock option grants, with the objective of aligning the executive officers’ long-term interests with those of the shareholders.




13





In establishing overall executive compensation levels and making specific compensation decisions for the executives in 2020, the Board of Directors considered a number of criteria, including the executive’s position, any applicable employment agreement, prior compensation levels, scope of responsibilities, prior and current period performance, attainment of individual and overall company performance objectives and retention concerns. In addition, the Board of Directors considered the results of the advisory vote by shareholders on the "say-on-pay" proposal presented to shareholders at the Company’s 2018 Annual Meeting of Shareholders where approximately 96% of the votes cast on the “say-on-pay” proposal was voted for approval of the 2017 executive compensation. In determining our 2020 executive compensation program, the Board of Directors reviewed the results of the say-on-pay vote and concluded that changes to the program were not desired by our shareholders for 2020. Therefore, our 2020 executive compensation approach was overall generally in line with the executive officer compensation approach previously approved by our shareholders.


The Board of Directors performs a review of compensation for our executive officers annually. As part of this review, the Board of Directors takes into consideration its understanding of external market data, including companies competing in our industry. The Board of Directors does not engage independent consultants to perform an analysis of the current compensation program.


Generally, our Board of Directors reviews and approves compensation arrangements for executive officers annually and in connection with the hiring of new executives. We do not have any formal or informal policy regarding compensation arrangements for executive officers. Instead, the Board of Directors determines what it believes to be the appropriate level and mix of the various compensation components based on recommendations from our chief executive officer, Company performance against stated objectives and individual performance.


In considering compensation of executives, one of the factors the Board of Directors takes into account is the anticipated tax treatment of various components of compensation. Our Board’s strategy is to be cost and tax efficient and the Board intends to preserve corporate tax deductions where possible, while maintaining the flexibility in the future to approve arrangements that it deems to be in our best interests and the best interests of our shareholders, even if such arrangements do not always qualify for full tax deductibility. We do not believe Section 162(m) of the Internal Revenue Code, which generally disallows a tax deduction for certain compensation in excess of $1 million to our named executive officers, will have a material effect on us due to the current compensation levels of named executive officers.


Base Salary


Base salaries are reviewed at least annually by our Board of Directors and may be adjusted from time to time based upon market conditions, individual responsibilities and Company and individual performance. We believe that a competitive base salary is a necessary element of any compensation program that is designed to attract and retain talented and experienced executives. We also believe that attractive base salaries can motivate and reward executives for their overall performance. Base salaries are established in part based on the individual experience, skills and expected contributions of our executives and our executives’ performance during the prior year, in addition to affordability within the context of our operating expense model.


Annual Non-Equity Incentive Compensation


Annual non-equity incentive compensation is typically not included as part of our named executive compensation given that our Company is in the development stage.


Long-term Equity Incentive Compensation


Long-term incentive compensation allows the executive officers to share in any appreciation in the value of our common stock. The Board of Directors believes that stock option participation aligns executive officers’ interests with those of the shareholders. The amounts of the awards are designed to reward past performance, create incentives to meet long-term objectives and ensure that we retain executive talent over a longer period of time. Awards are based upon various factors, including market conditions and incentives given by other companies in our industry.


Stock option awards provide our executive officers with the right to purchase shares of our common stock at a fixed exercise price, and stock option vest over time, subject to continued employment with our company over the vesting period. Stock options generally vest quarterly over a period of one year. All stock options have an exercise price equal to fair market value of our common stock on the date of grant, which is equal to our closing market price on such date.




14





Severance and Change in Control Benefits


Pursuant to employment agreements we have entered into with our executives and the terms of our 2016 Equity Incentive Plan, our executives are entitled to certain benefits in the event of a change in control of our Company or the termination of their employment under specified circumstances, including termination following a change in control. We believe these benefits help us compete for and retain executive talent and are generally in line with severance packages offered to executives by the companies in our peer group. We also believe that these benefits would serve to minimize the distraction caused by any change in control scenario and reduce the risk that key talent would leave the Company before any such transaction closes, which could reduce the value of the Company if such transaction failed to close.


Other Compensation


Generally, benefits available to executive officers are available to all employees on similar terms and include health and welfare benefits, disability benefits and a 401(k) plan.


We provide the benefits above to attract and retain our executive officers by offering compensation that is competitive with other companies similar in size and stage of development. These benefits represent a relatively small portion of their total compensation.


The table below summarizes all compensation awarded to, earned by, or paid to our named executive officers for the fiscal years ended December 31, 2020 and 2019.

 

Summary Compensation Table


Name and Principal Position

 

Year

 

Salary

($)

 

Bonus

($)

 

Stock
Awards

($)

 

Option
Awards

($)

 

All Other
Compensation

($)

 

Total

($)

                      (a)

 

(b)

 

(c)(1)

 

(d)

 

(e)(2)

 

(f)(2)

 

(g)(3)

 

(h)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dr. Michael S. Lebby

 

2020

 

278,250

 

 

 

42,178

 

3,024

 

323,452

CEO; Director

 

2019

 

273,833

 

 

 

38,805

 

2,963

 

315,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

James S. Marcelli

 

2020

 

262,500

 

 

 

42,178

 

2,189

 

306,867

President; COO; Sec., Director

 

2019

 

258,333

 

 

 

38,805

 

2,245

 

299,383

———————

(1)

The named executive officer’s compensation includes the amount for services rendered to the Company in his capacity as both an officer and a director.

(2)

The aggregate fair value of awards and options in columns (e) and (f) are computed in accordance with FASB ASC 718. All assumptions made in the valuation are more fully described in Note 10 - Stock Based Compensation of Notes to Financial Statements. The amounts shown in columns (f) do not reflect dollar amounts actually received by our named executive officers.

(3)

The amount in column (g) reflects a salary gross up for long term disability premium payments.


At no time during the last fiscal year was any outstanding option otherwise modified or re-priced, and there was no tandem feature, reload feature, or tax-reimbursement feature associated with any of the stock options we granted to our executive officers or otherwise.


We grant stock awards and stock options to our executive officers based on their level of experience and contributions to our Company. The aggregate fair value of awards and options are computed in accordance with FASB ASC 718 and are reported in the Summary Compensation Table above in the columns (e) and (f).


No plan-based awards were granted to our named executive officers during the last completed fiscal year.



15





The table below summarizes all of the outstanding equity awards for our named executive officers as of December 31, 2020, our latest fiscal year end.


Outstanding Equity Awards At Fiscal Year-End


 

Option Awards

Name

Number of securities underlying unexercised options(#) exercisable

Number of securities underlying unexercised options(#) unexercisable

Equity incentive plan awards: number of securities underlying unexercised unearned options

Option exercise price

Option expiration date

 

 

 

(#)

($)

 

  (a)

(b)

(c)

(d)

(e)

(f)

  

 

 

 

 

 

Dr. Michael S. Lebby

   200,000

0.69

08/25/25

CEO, Director(1)(3)

     50,000

0.68

01/28/26

 

     50,000

0.85

01/16/27

 

   350,000

0.70

03/19/27

 

     87,500

12,500

1.04

04/07/29

 

 

 

 

 

 

James S. Marcelli

     50,000

0.67

08/09/25

President, COO, Sec.,

1,150,000

0.70

06/30/25

Director(2)(3)

   100,000

1.00

05/16/23

 

     87,500

12,500

1.04

04/07/29

———————

(1)

Dr. Lebby received an option to purchase up to: (i) 200,000 shares of Common Stock, of which 50,000 shares vested on August 26, 2015 and the remaining shares vest in equal annual installments of 50,000 options per year commencing on August 26, 2016; (ii) 50,000 shares of Common Stock, of which 20,000 shares vested on February 11, 2016 and the remaining shares vested quarterly in equal installments of 10,000 options per quarter commencing on April 1, 2016; (iii) 50,000 shares of Common Stock, of which 20,000 shares vested on January 17, 2017 and the remaining shares vested quarterly in equal installments of 10,000 options per quarter commencing on April 1, 2017; (iv) 350,000 shares of Common Stock, which vest quarterly over one year in equal installments of 87,500 shares per quarter beginning May 1, 2017; (v) 100,000 shares of Common Stock, of which 12,500 shares vested on May 1, 2019 and the remaining shares vested quarterly in equal installments of 12,500 options per quarter commencing on August 1, 2019.

(2)

Mr. Marcelli received an option to purchase up to (i) 50,000 shares of Common Stock, of which 12,500 shares vested on August 10, 2015 and the remaining shares vested quarterly in equal installments of 12,500 shares; (ii) 1,150,000 shares of Common Stock at an exercise price of $.70 that vested immediately; and (iii) up to 100,000 shares of Common Stock, of which 25,000 shares vested on August 1, 2013 and the remaining shares vested quarterly in equal installments of 25,000 shares commencing on October 1, 2013; (iv) 100,000 shares of Common Stock, of which 12,500 shares vested on May 1, 2019 and the remaining shares vested quarterly in equal installments of 12,500 options per quarter commencing on August 1, 2019.

(3)

In the event of a change in control of our Company, such person’s options will become fully vested and/or exercisable, as the case may be, immediately prior to such change in control, and shall remain exercisable as set forth in their stock option agreement.


Option Exercises and Stock Vested


No stock options, SARs and similar instruments were exercised, and no stock, including restricted stock, restricted stock units and similar instruments vested, by or for any of our named executive officer during the last completed fiscal year.


Pension Benefits-Nonqualified Defined Contribution and Other Nonqualified Deferred Compensation


No pension benefits were paid to any of our named executive officers during the last completed fiscal year. We do not currently sponsor any non-qualified defined contribution plans or non-qualified deferred compensation plans.




16





Employee, Severance, Separation and Change in Control Agreements


Dr. Michael S. Lebby Employee Agreement- Chief Executive Officer


On March 20, 2017, we entered into an employment agreement with Dr. Michael S. Lebby (the “Lebby Employment Agreement”). The term of the Lebby Employment Agreement commenced on May 1, 2017 for a period of 24 months, following which time the Lebby Employment Agreement will be renewed for successive 12-month periods at the end of each term upon the written agreement of the parties that shall be delivered by each party to the other not less than 60 days prior to the expiration of the existing term. Upon entering into the Lebby Employment Agreement, Dr. Lebby was granted (i) 350,000 stock options, which have an exercise price of $0.70 per share and are fully vested at this time. In the event of a change in control of our Company, Dr. Lebby’s options shall remain exercisable as set forth in Dr. Lebby’s stock option agreement. On April 8, 2019, we entered into an amended employee agreement with Dr. Lebby to (i) increase his base salary to $278,250 per year effective May 1, 2019, (ii) provide him with eligibility to receive bonus compensation to be determined by the Board of Directors from time to time in its sole discretion, and (iii) extend his employee agreement’s expiration date to April 30, 2021. Additionally, Dr. Lebby was granted an option to purchase up to 100,000 shares of Company common stock at an exercise price equal to $1.04 per share. The options vest quarterly over two years in equal installments of 12,500 shares per quarter beginning on May 1, 2019.


If Dr. Lebby’s employment terminates upon the expiration of the term of the Lebby Employment Agreement, and the Company elects for any reason not to renew the Lebby Employment Agreement for an additional 12-month term, then our Company will continue to pay to Dr. Lebby the compensation described in the Lebby Employment Agreement for a period of 9 months the after the termination. If Dr. Lebby’s employment is terminated by the Company without cause during the term of the Lebby Employment Agreement, the Company will pay to Dr. Lebby’s the compensation described in the Lebby Employment Agreement for the remainder of the term of Lebby Employment Agreement or 12 months, whichever is longer.


Mr. James S. Marcelli Employee Agreement- President; Chief Operating Officer


On August 10, 2015, we entered into a new employment agreement with Mr. Marcelli, which was amended during 2015 and 2017 (collectively, the “Marcelli Employment Agreement”), which replaced his previous employment agreement, as amended. The term of the Marcelli Employment Agreement commenced on January 1, 2014 and expires December 31, 2019, following which time the Marcelli Employment Agreement will be renewed for successive 12-month periods at the end of each term upon the written agreement of the parties that shall be delivered by each party to the other not less than 60 days prior to the expiration of the existing term. Upon entering into the Marcelli Employment Agreement, Mr. Marcelli was granted (i) 50,000 stock options, which have an exercise price of $0.67 per share and are fully vested at this time. In the event of a change in control of our Company, Mr. Marcelli’s options shall remain exercisable as set forth in Mr. Marcelli’s stock option agreement. On April 8, 2019, we entered into an amended employee agreement with Mr. Marcelli, to (i) increase his base salary to $262,500 per year effective May 1, 2019, (ii) provide him with eligibility to receive bonus compensation to be determined by the Board of Directors from time to time in its sole discretion, and (iii) extend his employee agreement’s expiration date to December 31, 2021. Additionally, Mr. Marcelli was granted an option to purchase up to 100,000 shares of Company common stock at an exercise price equal to $1.04 per share. The options vest quarterly over two years in equal installments of 12,500 shares per quarter beginning on May 1, 2019.


If Mr. Marcelli’s employment terminates upon his death and key man life insurance is in place for Mr. Marcelli, our Company will continue to pay the compensation described in the Marcelli Employment Agreement to his estate through the remainder of the term of the Marcelli Employment Agreement, or 12 months, whichever is longer. If Mr. Marcelli’s employment terminates upon the expiration of the term of the Marcelli Employment Agreement, and the Company elects for any reason not to renew the Marcelli Employment Agreement for an additional 12-month term, then our Company will continue to pay to Mr. Marcelli the compensation described in the Marcelli Employment Agreement for a period of 9 months the after the termination. If Mr. Marcelli’s employment is terminated by the Company without cause during the term of the Marcelli Employment Agreement, the Company will pay to Mr. Marcelli the compensation described in the Marcelli Employment Agreement for the remainder of the term of Marcelli Employment Agreement or 12 months, whichever is longer.




17





Potential Payments Upon Termination or Change In Control


Pursuant to employment agreements we have entered into with our executives and the terms of our 2016 Equity Incentive Plan, our executives are entitled to certain benefits in the event of a change in control of our Company or the termination of their employment under specified circumstances, including termination following a change in control. We believe these benefits help us compete for and retain executive talent and are generally in line with severance packages offered to executives by the companies in our peer group. We also believe that these benefits would serve to minimize the distraction caused by any change in control scenario and reduce the risk that key talent would leave the Company before any such transaction closes, which could reduce the value of the Company if such transaction failed to close.


Compensation of Directors


Set forth below is a summary of the compensation of our directors during our December 31, 2020 fiscal year.


 

 

Fees Earned
or Paid in
Cash

 

Stock
Awards

 

Option
Awards

 

Non-Equity
Incentive Plan
Compensation

 

Non-Qualified
Deferred
Compensation
Earnings

 

All Other
Compensation

 

Total

Name

 

($)(1)

 

($)

 

($)(2)

 

($)

 

($)

 

($)

 

($)

Thomas E. Zelibor

 

    7,400

 

 

66,932(3)

 

 

 

 

  74,332

Joseph A. Miller

 

    7,400

 

 

36,508(4)

 

 

 

 

  43,008

Ronald A. Bucchi

 

    7,400

 

 

48,678(5)

 

 

 

 

  66,205

Siraj Nour El-Ahmadi

 

  25,800

 

 

36,508(4)

 

 

 

 

  62,308

Frederick Leonberger

 

145,400

 

 

42,258(4)

 

 

 

 

187,658

———————

(1)

The amount in this column reflects cash compensation received under the Director Compensation Program of $2,000 per attendance at an in-person meeting and $700 per participation in a teleconference meeting. With respect to Dr. Leonberger, it also reflects cash compensation received of $11,500 per month for serving on our Operations Committee. With respect to Siraj Nour El-Ahmadi, it also reflects cash compensation received of $4,600 per month commencing September 2020 for serving on our Operations Committee.

(2)

The option awards in this column reflect options issued on January 14, 2020 to purchase shares of our Company’s common stock at an exercise price of $.80 that vest pursuant to the following schedule: 25% of the options vest immediately, and the remaining options vest in three equal quarterly installments of 25% of the options granted commencing on April 1, 2020.

(3)

Reflects an option to purchase up to 60,000 shares of common stock for board service and up to 50,000 shares of common stock for serving as Chair of the Board.

(4)

Reflects an option to purchase up to 60,000 shares of common stock for board service. With respect to Dr. Leonberger only, it also reflects an additional $5,750 for the amortization of an option to purchase up to 200,000 shares of common stock for board service that was granted in March 2017.

(5)

Reflects an option to purchase up to 60,000 shares of common stock for board service and up to 20,000 shares of common stock for serving as Audit Committee Chair.


In the event of a change in control of our Company, all of the above person’s options become fully vested and/or exercisable, as the case may be, immediately prior to such change in control, and shall remain exercisable as set forth in their stock option agreement.




18





Compensation Policies and Practices as They Relate to Our Risk Management


No risks arise from our Company’s compensation policies and practices for our employees that are reasonably likely to have a material adverse effect on our Company.


Securities Authorized for Issuance under Equity Compensation Plans

Equity Compensation Plans as of December 31, 2020.

Equity Compensation Plan Information

  

 

Number of securities to be

issued upon exercise of

outstanding options,

warrants and rights

  

Weighted-average exercise

price of outstanding options,

warrants and rights

  

Number of securities remaining

available for future issuance

under equity compensation plans

(excluding securities reflected in

column (a))

  

Plan category

(a)

(b)

(c)

Equity compensation plans approved by security holders (1)

    8,207,500 (1)

$0.85

4,242,500

Equity compensation plans not approved by security holders (2)

  1,815,000    

$0.77

0

Total

10,022,500    

$0.84

4,242,500

———————

(1)

Reflects shares of common stock to be issued pursuant to our 2016 Equity Incentive Plan and our 2007 Employee Stock Plan, both of which are for the benefit of our directors, officers, employees and consultants. We have reserved 8,000,000 shares of common stock for such persons pursuant to our 2016 Equity Incentive Plan. We terminated our 2007 Employee Stock Plan in June 2016 and no additional awards are made under that plan.

(2)

Comprised of common stock purchase warrants we issued for services.




19





VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF


As of the Record Date, we had outstanding 102,082,247 shares of common stock. Each share of our common stock is entitled to one vote with respect to each matter on which it is entitled to vote.


The following table sets forth, as of the Record Date, the names, addresses, amount and nature of beneficial ownership and percent of such ownership of our common stock of each of our officers and directors, our officers and directors as a group and each person or group known to our Company to be the beneficial owner of more than five percent (5%) of our common stock:


Security Ownership


Name and Address (1)

 

Amount and Nature
of Beneficial
Ownership (2)

 

% Owned (3)(4)

 

Number of Options and Warrants Included in
Amount and Nature
of Beneficial
Ownership (5)

Michael Lebby

Chief Executive Officer, Principal Executive Officer and Director

 

812,643

 

 

*

 

   750,000

James S. Marcelli

President, Chief Operating Officer, Principal Financial Officer, Secretary and Director

 

1,646,700

 

 

1.5%

 

1,400,000

Thomas E. Zelibor

Chair of the Board of Directors

 

1,615,124

(6)

 

1.5%

 

1,565,000

Joseph A. Miller, Jr.

Director

 

613,400

 

 

*

 

   600,000

Ronald A. Bucchi

Director

 

974,000

(7)

 

*

 

   800,000

Siraj Nour El-Ahmadi

Director

 

600,000

 

 

*

 

   600,000

Frederick Leonberger

Director

 

1,125,000

 

 

1.0%

 

1,125,000

Directors and Officers as a Group (7 Persons):

 

7,386,867

 

 

6.7%

 

6,840,000

———————

* Less than 1%.


1.

In care of our Company at 369 Inverness Parkway, Suite 350, Englewood, CO 80112.

2.

To our best knowledge, as of the date hereof, such holders had the sole voting and investment power with respect to the voting securities beneficially owned by them, unless otherwise indicated herein. Includes the person’s right to obtain additional shares of common stock within 60 days from April 15, 2021.

3.

Based on 102,082,247 shares of common stock outstanding on April 15, 2021. Does not include shares underlying: (i) options to purchase shares of our common stock under our 2007 Employee Stock Plan and our 2016 Equity Incentive Plan; or (ii) outstanding warrants to purchase shares of our common stock.

4.

If a person listed on this table has the right to obtain additional shares of common stock within 60 days from April 15, 2021, the additional shares are deemed to be outstanding for the purpose of computing the percentage of class owned by such person but are not deemed to be outstanding for the purpose of computing the percentage of any other person.

5.

Represents options and warrants exercisable within 60 days from April 15, 2021.

6.

Mr. Zelibor disclaims beneficial ownership of 400 shares held by his spouse.

7.

Mr. Bucchi disclaims beneficial ownership of 53,000 shares held by his spouse.


Change in Control Arrangements


We are not aware of any arrangements that could result in a change of control.





20





PROPOSAL ONE


ELECTION OF DIRECTORS


Our Directors hold office until the end of their respective terms or until their successors have been duly elected and qualified, or until their earlier death, resignation, removal or retirement. Our executive officers are appointed by the Board of Directors and serve at the discretion of the Board of Directors.

 

The Board of Directors is divided into three classes, currently comprised of: (i) two Class I directors, whose terms expire at the 2021 annual meeting; (ii) three Class II directors, whose terms expire at the 2022 annual meeting; and (iii) two Class III directors, whose terms expire at the 2023 annual meeting. The Board believes that a classified Board of Directors provides continuity and stability in pursuing the Company's policies and strategies and reinforces its commitment to long term perspective and value creation.


Nominees for Election as Director


At the time of the Annual Meeting, our Board of Directors will consist of seven directors: Dr. Michael S. Lebby; James S. Marcelli; Thomas E. Zelibor; Dr. Joseph A. Miller, Jr.; Ronald A. Bucchi; Siraj Nour El-Ahmadi; and Dr. Frederick J. Leonberger. At the Annual Meeting, the shareholders will elect: (i) two Class I directors to serve until the 2024 Annual Meeting or until their successors have been duly elected and qualified, or until their earlier death, resignation, removal or retirement.


The Board proposes that the individuals listed below as Class I nominees be elected as Class I directors. Each nominee has agreed to serve if elected, and our Board of Directors has no reason to believe that any nominee will be unavailable or will decline to serve. In the event, however, that any nominee is unable or declines to serve as a director at the time of the Annual Meeting, the proxies will be voted for any nominee who is designated by the current Board of Directors to fill the vacancy.


The names of the Class I nominees are set forth below:


Name

 

 

 

Position(s) with the Company

 

Term

 

Year First Elected Director

Siraj Nour El-Ahmadi

 

 

 

Director

 

Class I

 

2012

Frederick J. Leonberger

 

 

 

Director

 

Class I

 

2017


Directors Not Standing for Election


The names of the Directors who are not standing for election at the Annual Meeting are the Class II directors, whose terms expire in 2022; and the following Class III directors, whose terms expire in 2023:


Name

 

 

 

Position(s) with the Company

 

Class

 

Year First Elected Director

Michael S. Lebby

 

 

 

Director, Chief Executive Officer

 

Class II

 

2014

Joseph A. Miller, Jr.

 

 

 

Director

 

Class II

 

2011

Ronald A. Bucchi

 

 

 

Director

 

Class II

 

2012

Thomas E. Zelibor

 

 

 

Chair of the Board

 

Class III

 

2008

James S. Marcelli

 

 

 

Director, Pres., Chief Operating Officer, Sec.

 

Class III

 

2008

       

Vote Required


Directors will be elected by a plurality of the votes cast at the Annual Meeting. A “withhold” vote with respect to any nominee will have no effect on the election of that nominee. Each holder of common stock is entitled to one vote for each share held.


Recommendation of the Board of Directors


The Board of Directors recommends a vote “FOR” the election of all of the above Nominees.



21





PROPOSAL TWO


RATIFICATION OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM FOR 2021


We are asking shareholders to ratify the appointment of Morison Cogen LLP to serve as our Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021. Morison Cogen LLP was our independent registered public accounting firm for our fiscal years ended December 31, 2020 and 2019. Representatives of Morison Cogen, LLP are not expected to be present at the Annual Meeting.


The aggregate fees billed for professional services by Morison Cogen, LLP during 2020 and 2019 were as follows:


 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Audit Fees

 

$

84,460

 

 

$

56,000

 

Audit-Related Fees

 

 

 

 

 

 

Tax Fees

 

 

6,000

 

 

 

6,000

 

All Other Fees

 

 

 

 

 

 


Audit Fees are the aggregate fees billed during the years ended December 31, 2020 and December 31, 2019 for professional services rendered by Morison Cogen, LLP for the audit of the Company’s annual financial statements and review of financial statements included in the Company’s Form 10-Q or services that are normally provided by Morison Cogen, LLP in connection with statutory and regulatory filings or engagements.


Audit-Related Fees are the aggregate fees billed during the years ended December 31, 2020 and December 31, 2019 for assurance and related services rendered by Morison Cogen, LLP that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under the category Audit Fees described above .


Tax Fees are the aggregate fees billed during the years ended December 31, 2020 and December 31, 2019 for tax compliance services rendered by Morison Cogen, LLP.


All Other Fees are the aggregate fees billed during the years ended December 31, 2020 and December 31, 2019  for products and services provided by Morison Cogen, LLP, other than the services reported in the Audit Fees, Audit-Related Fees, and Tax Fees categories above.


Audit Committee Pre-Approval Policies.


All the services performed by Morison Cogen, LLP that are described above were pre-approved by the Company’s Audit Committee. The Audit Committee pre-approves all audit and permissible non-audit services on a case-by-case basis.


None of the hours expended on Morison Cogen, LLP ‘s engagement to audit the Company’s financial statements for the years ended December 31, 2020 and December 31, 2019 were attributed to work performed by persons other than Morison Cogen, LLP’s full-time, permanent employees.


Vote Required


The vote required to ratify the appointment of Morison Cogen LLP to serve as our Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021 is the affirmative vote of the holders of a majority of the votes cast at the Annual Meeting entitled to vote on the matter. Each holder of common stock is entitled to one vote for each share held.


Recommendation of the Board of Directors


The Board of Directors recommends that the shareholders vote “FOR” the proposal to ratify the appointment of Morison Cogen LLP to serve as our Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021.



22





PROPOSAL THREE

ADVISORY VOTE TO APPROVE COMPENSATION OF NAMED EXECUTIVE OFFICERS

We are asking our shareholders to vote, on an advisory basis, to approve the compensation of our named executive officers as described in this Proxy Statement in accordance with SEC rules. We believe that the compensation policies for our named executive officers are designed to attract, retain and motivate talented executives who are critical for the continued growth and success of our Company and to align the interests of these executives with those of our shareholders. Shareholders are urged to read the Compensation Discussion and Analysis section of this Proxy Statement, which discusses in detail our 2020 executive compensation program and decisions made by our Board of Directors.


“Say-on-Pay” Vote


This advisory shareholder vote, commonly referred to as a “say-on-pay” vote, gives shareholders the opportunity to approve or not approve the compensation of our named executive officers that is disclosed in this Proxy Statement by voting “FOR” or “AGAINST” the following resolution (or by abstaining with respect to the resolution):


RESOLVED, that the Company’s shareholders approve, on an advisory basis, the compensation of the Company’s named executive officers, as disclosed in this Proxy Statement pursuant to the compensation disclosure rules of the SEC, which disclosure includes the Compensation Discussion and Analysis, the Summary Compensation Table and the other related tables and disclosure in this Proxy Statement.


This vote is not intended to address any specific item of compensation, but rather the overall compensation of our named executive officers and the philosophy, policies and practices described in this Proxy Statement. Because your vote is advisory, it will not be binding on our Board of Directors or the Company. However, our Board of Directors values the opinions of our shareholders and will take into account the outcome of the shareholder vote on this proposal at our Annual Meeting when considering future executive compensation arrangements.


Vote Required


This vote is an advisory vote and is therefore not binding on the Company or the Board of Directors. The vote required for approval of the compensation of our named executive officers is the affirmative vote of the holders of a majority of the votes cast at the Annual Meeting entitled to vote on the matter. Each holder of common stock is entitled to one vote for each share held.


Recommendation of the Board of Directors


The Board of Directors recommends that the shareholders vote “FOR” the approval of the compensation of our named executive officers, as disclosed in this Proxy Statement pursuant to the compensation disclosure rules of the SEC.




23





SHAREHOLDER PROPOSALS FOR 2022 ANNUAL MEETING


In accordance with SEC Rule 14a-8, in order for shareholder proposals to be included in our proxy statement for the 2022 Annual Meeting, we must receive them at our principal executive offices, 369 Inverness Parkway, Suite 350, Englewood, CO 80112, by December 17, 2021, being 120 days prior to the date of the first anniversary of the date of our proxy statement for the 2021 Annual Meeting of Shareholders. Shareholder proposals (including recommendations of nominees for election to the board of directors), other than a shareholder proposal submitted pursuant to SEC Rule 14a-8, in order to be voted on at the 2022 Annual Meeting, must be received by us not earlier than January 27, 2022 and not later than February 26, 2022 being, respectively, 120 days and 90 days prior to the date of the first anniversary of the 2021 Annual Meeting of Shareholders. In the event that the 2022 Annual Meeting is called for a date that is not within 30 days before or after the anniversary date of the 2021 Annual Meeting of Shareholders, notice by a shareholder in order to be timely must be so received not later than the close of business on the 10th day following the day on which such notice of the date of the 2022 Annual Meeting is mailed or such public disclosure of the date of the 2022 Annual Meeting is made, whichever first occurs.


OTHER MATTERS


Our Board of Directors knows of no other matters to be presented for shareholder action at the Annual Meeting. However, if other matters do properly come before the Annual Meeting or any adjournments or postponements thereof, our Board of Directors intends that the persons named in the proxies will vote upon such matters in accordance with the best judgment of the proxy holders.


Whether or not you intend to be present at the Annual Meeting, you are urged to fill out, sign, date and return the enclosed proxy at your earliest convenience.


Englewood, CO


April 16, 2021





24







LIGHTWAVE LOGIC, INC.

C/O BROADRIDGE

PO BOX 1342

BRENTWOOD, NY 11717

 

VOTE BY INTERNET


Before the Meeting – Go to  www.proxyvote.com

Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.


During the Meeting – Go to www.virtualshareholdermeeting.com/LWLG2021

You may attend the meeting via the Internet and vote during the meeting. Have the 16-digit control number provided in your proxy materials available and follow the instructions.

 

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

 

 

 

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.

 

 

 

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.


TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:ý

KEEP THIS PORTION FOR YOUR RECORDS

—  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —

 

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

DETACH AND  RETURN THIS PORTION ONLY


LIGHTWAVE LOGIC, INC.

For

Withhold

For All

To withhold authority to vote for any individual

The Board of Directors recommends you vote FOR the following:

All

All

Except

nominee(s), mark “For All Except” and write the

 

 

 

 

number(s) of the nominee(s) on the line below.

 

1.

Election of Directors

¨

¨

¨

 

 

 

 

Nominees:

 

 

 

 

 

 

 

01)  Siraj Nour El-Ahmadi

02)  Dr. Fred Leonberger

 

 

 

 

 

 

 

 

 

 

 

The Board of Directors recommends you vote FOR proposals 2 and 3

 

For

Against

Abstain

 

2.

Ratification of the appointment of Morison Cogen LLP to serve as the Company’s Independent Registered Public Accounting firm for fiscal year 2021.

 

¨

¨

¨

 

3.

Advisory vote on executive compensation.

 

¨

¨

¨

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE: In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor,
administrator, or other fiduciary, please give full title as such. Joint owners should each sign
personally. All holders must sign. If a corporation or partnership, please sign in full corporate
or partnership name by authorized officer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature [PLEASE SIGN WITHIN BOX]

Date

 

Signature (Joint Owners)

Date

 


















Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Notice & Proxy Statement and Form 10-K are available at www.proxyvote.com.









 

 

—  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —

 

 

 



LIGHTWAVE LOGIC, INC.

Annual Meeting of Shareholders

May 27, 2021 12:00 P.M.

This proxy is solicited by the Board of Directors

 

The undersigned hereby appoint(s) Dr. Michael S. Lebby and/or James S. Marcelli with the power of substitution and resubstitution to vote any and all shares of capital stock of Lightwave Logic, Inc. (the "Company") which the undersigned would be entitled to vote at the Annual Meeting of the Company, to be held virtually on Thursday, May 27, 2021 at 12:00 p.m., Eastern Time, and at any adjournments or postponements thereof, hereby revoking any prior proxies to vote said stock, upon the following items more fully described in the notice of the Proxy Statement for the Annual Meeting (receipt of which is hereby acknowledged).

 

This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors' recommendations.

 

 

 

 

 

Continued and to be signed on reverse side










Lightwave Logic (QX) (USOTC:LWLG)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more Lightwave Logic (QX) Charts.
Lightwave Logic (QX) (USOTC:LWLG)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more Lightwave Logic (QX) Charts.