ENGLEWOOD, Colo., Aug. 10,
2023 /PRNewswire/ -- Lightwave Logic, Inc. (NASDAQ:
LWLG), a technology platform company leveraging its proprietary
electro-optic (EO) polymers to transmit data at higher speeds with
less power in a small form factor, today provided a corporate
update in conjunction with the filing of its Quarterly Report on
Form 10-Q for the second quarter ended June
30, 2023.
Second Quarter 2023 and Subsequent Company
Highlights:
- Began commercialization of electro-optic polymer materials
with first commercial material supply license agreement for
Perkinamine® chromophore materials.
- As of June 30, 2023, the
company's cash and cash equivalents were $32.6 million, enabling it to finance operations
through February 2025.
- Revenue Recognition:
-
- The company's first commercial agreement occurred in
May 2023, in the form of a four (4)
year material supply and license agreement (the "License
Agreement") that incorporates the company's patented electro-optic
polymer materials for use in manufacturing photonic devices (the
"Licensed Product"). The licensee shall pay the company a running
royalty with a minimum royalty paid on an annual basis over the
term of the License Agreement. Additional future revenue will be
generated from royalties from the licensee's sale of Licensed
Product that exceed the minimum royalty payments. The License
Agreement is a non-exclusive material supply and license
agreement.
- All revenues are recognized over time commencing with the
License Agreement in May 2023. No
revenues were recognized for the three and six month period ending
June 30, 2023 since the licensee did
not requisition material as of June 30,
2023. An up-front licensing fee in the amount of
$50,000 was paid during the three and
six month period ending June 30, 2023
and is recorded in short term liability deferred revenue in the
company's balance sheet as of June 30,
2023.
- Further strengthened intellectual property (IP) portfolio with
3 U.S. patents and publications:
-
- Patent issuance for innovative chromophore design using novel
Thiopene bridge, increasing overall EO polymer performance.
- Patent Issuance for innovative polymer cladding design to
enhance polymer modulator performance in a manner amenable to
high-volume foundry production.
- Patent publication to more efficiently pole advanced structural
material designs for commercial foundry fabrication.
- Appointed respected industry executive Laila Partridge to
Board of Directors, bringing a 30+ year track record of executing
transactions in the technology space to advise the company's
management team as the company commercializes its electro-optic
polymer materials.
- Announced groundbreaking low-temperature optical modulator with
record performance, paving the way for applications
in supercomputers, quantum circuits and advanced computing
systems.
- Presented at leading industry and investor conferences
internationally, including the 8th Photonic Integrated
Circuits (PIC) International Conference, Benzinga All-Access Show,
the Sequire Investor Summit: Puerto
Rico, and the Ladenburg Thalmann 2023 Tech Expo.
- Invited to speak at prestigious industry conferences globally,
including at Market Focus sessions at the European Conference on
Optical Communications and at Optica's Photonic-Enabled Cloud
Computing Industry Summit in October
2023, as well as at EPIC's Technology Meeting on
Microelectronics and Photonics in November
2023.
The full text of the company's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2023 was
filed with the SEC on August 9, 2023
and can be found here.
Management Commentary
"The second quarter of 2023 was by underscored by our first
commercial agreement – a milestone achievement for Lightwave Logic
that we are incredibly proud of," said Dr. Michael Lebby, Chairman and Chief Executive
Officer of Lightwave Logic. "Our initial commercial material supply
license agreement validates the market acceptance and competitive
advantage of our technology and will provide Perkinamine®
chromophore materials for polymer based photonic devices and
photonic integrated circuits (PICs). The agreement includes a
license initiation fee, per unit royalties, minimum royalty levels
that increase annually, and minimum sales volumes in units.
Supplying licensed materials further validates a first prong of our
three-prong revenue model and business strategy that includes 1)
technology transfer and partnering with foundries, transceiver
companies etc., 2) selling product with polymer based photonic
integrated circuits (PICs), and 3) commercial licensing of our
chromophore materials.
"We continued to solidify our IP moat in the second quarter with
three new patent issuances and publications. We received a
publication from the patent office for an advanced chemical
structural design and process that enhances the overall efficiency
of poling non-linear organic optical chromophores while
simultaneously improving thermal stability and electro-optic
efficiency (r33). We received a patent for an advanced chemical
structural design that enhances the overall performance of
non-linear organic optical chromophores using a novel thiophene
bridge. A second patent is for a cutting-edge design technique,
enhancing the performance of polymer modulators through the use of
innovative polymer cladding design that is amenable for high-volume
foundry fabrication when integrated with silicon photonics. The
fortification of our intellectual property portfolio, with
innovative new patents and publications such as these, will be
critical as we move ahead on our commercialization journey.
"With a first prong of our commercialization strategy underway,
we took the opportunity to strengthen our Board with the
appointment of respected industry executive Laila Partridge. Laila brings over 30 years of
executive experience in technology, corporate innovation and
finance to the Board of Directors - having worked with a wide range
of technologies, including telecommunications, internet
infrastructure, artificial intelligence, internet of things and
more. Her knowledge of both the fiber optic communications markets
as well as adjacent markets will help us hone business strategies
for growing our electro-optic polymer business.
"As we enter this exciting new era of commercialization, we are
positioning Lightwave Logic to make our next-generation
technologies truly ubiquitous in the global internet infrastructure
of the future. Our strong team, technology, and IP assets have laid
the foundation to further build upon our first licensing agreement
with a next generation of milestone achievements through year-end,"
concluded Lebby.
About Lightwave Logic,
Inc.
Lightwave
Logic, Inc. (NASDAQ: LWLG) develops platforms leveraging its
proprietary engineered electro-optic (EO) polymers to transmit data
at higher speeds with less power in a small form factor. The
company's high-activity and high-stability organic polymers allow
Lightwave Logic to create next-generation photonic EO devices,
which convert data from electrical signals into optical signals,
for applications in data communications and telecommunications
markets. For more information, please visit the company's website
at lightwavelogic.com.
Safe Harbor Statement
The information posted in this
release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. You can
identify these statements by use of the words "may," "will,"
"should," "plans," "explores," "expects," "anticipates,"
"continue," "estimate," "project," "intend," and similar
expressions. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated. These risks and uncertainties
include, but are not limited to, lack of available funding; general
economic and business conditions; competition from third parties;
intellectual property rights of third parties; regulatory
constraints; changes in technology and methods of marketing; delays
in completing various engineering and manufacturing programs;
changes in customer order patterns; changes in product mix; success
in technological advances and delivering technological innovations;
shortages in components; production delays due to performance
quality issues with outsourced components; those events and factors
described by us in Item 1.A "Risk Factors" in our most recent Form
10-K and 10-Q; other risks to which our company is subject; other
factors beyond the company's control.
Investor Relations
Contact:
Lucas
A. Zimmerman
MZ Group - MZ North America
949-259-4987
LWLG@mzgroup.us
www.mzgroup.us
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SOURCE Lightwave Logic, Inc.