Lightwave Logic Inc

Previous wording

Our differentiation at the modulator device level is in higher speed, lower power consumption, simplicity of manufacturing, small footprint (size), and reliability. We have demonstrated higher speed and lower power consumption in packaged devices, and during 2023, we continued to make advances in techniques to translate our world class material properties to efficient, reliable modulator devices with commercial foundries. We are currently focused on testing and demonstrating the simplicity of manufacturability and reliability of our devices, including in conjunction with the silicon photonics manufacturing ecosystem. In 2023 we worked with silicon-based foundry partners to help scale in volume our polymer modulator devices and we received working modulator chips from these foundries. We have advanced and matured our interactions with our foundry partners and we continue to receive working modulator chips for prototyping. Silicon-based foundries are large semiconductor fabrication plants developed for the electronics IC business, that are now engaging with silicon photonics to increase their wafer throughput. Partnering with silicon-based foundries not only demonstrates that our polymer technology can be transferred into standard production lines using standard equipment, it also allows us to efficiently utilize our capital. The foundry partnerships will allow us to scale our high-performance polymer optical engines quickly and efficiently. We have now received silicon wafers that range up to 200mm in diameter, which aligns well with foundry manufacturing. Using 200mm silicon wafers, we showed packaged polymer modulators operating with open (clean) eye diagrams at 100GBaud PAM4 (or 200Gbps PAM4) at voltage drive levels at 1V at the 2024 Optical Fiber Conference in San Diego, California in March 2024 (“OFC 2024"). OFC is a leading international conference bringing together the complete value chain of fiber communications, datacentric, and telecommunications industrial players. We also showed polymer modulators with voltage drive levels that were below 1V. Driving voltage levels of around 1V is important as it allows our polymer modulators to be driven directly from CMOS ICs (as opposed to dedicated driver integrated circuit chips). This performance is ideal to enable 4 lanes at 200Gbps per lane pluggable transceivers that can operate at an aggregate data rate of 800Gbps. Since the invited talk at OFC 2024, a number of Tier 1 pluggable transceiver companies have both reviewed our technical results and viewed operating packaged polymer slot modulators at 200Gbps PAM4 with drive voltages at 1V.

Current wording

Our differentiation at the modulator device level is in higher speed, lower power consumption, simplicity of manufacturing, small footprint (size), and reliability. We have demonstrated higher speed and lower power consumption in packaged devices, and during 2023, we continued to make advances in techniques to translate our world class material properties to efficient, reliable modulator devices with commercial foundries. We are currently focused on testing and demonstrating the simplicity of manufacturability and reliability of our devices, including in conjunction with the silicon photonics manufacturing ecosystem. In 2023 we worked with silicon-based foundry partners to help scale in volume our polymer modulator devices and we received working modulator chips from these foundries. We have advanced and matured our interactions with our foundry partners and we continue to receive working modulator chips for prototyping. Silicon-based foundries are large semiconductor fabrication plants developed for the electronics IC business, that are now engaging with silicon photonics to increase their wafer throughput. Partnering with silicon-based foundries not only demonstrates that our polymer technology can be transferred into standard production lines using standard equipment, it also allows us to efficiently utilize our capital. The foundry partnerships will allow us to scale our high-performance polymer optical engines quickly and efficiently. We have now received silicon wafers that range up to 200mm in diameter, which aligns well with foundry manufacturing. Using 200mm silicon wafers, we showed packaged polymer modulators operating with open (clean) eye diagrams at 100GBaud PAM4 (or 200Gbps PAM4) at voltage drive levels at 1V at the 2024 Optical Fiber Conference in San Diego, California in March 2024 (“OFC 2024"). OFC is a leading international conference bringing together the complete value chain of fiber communications, datacentric, and telecommunications industrial players. We also showed polymer modulators with voltage drive levels that were below 1V. Driving voltage levels of around 1V is important as it allows our polymer modulators to be driven directly from CMOS ICs (as opposed to dedicated driver integrated circuit chips). This performance is ideal to enable 4 lanes at 200Gbps per lane pluggable transceivers that can operate at an aggregate data rate of 800Gbps. Since the invited talk at OFC 2024, several Tier 1 pluggable transceiver companies have both reviewed our technical results and viewed operating packaged polymer slot modulators at 200Gbps PAM4 with drive voltages at 1V. Further, we have recently demonstrated drive levels below 0.5V which represents the highest performance commercially designed Electro-Optic polymer modulators to date. The impact of driving optical modulators significantly below 1V is significant not only from the impact of directly driving modulators from electronic ICs to save driver costs, but more importantly, …

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Previous wording

We commenced commercial operations in May 2023. Presently, our commercial operations consist of amaterial supply license agreement to provide Perkinamine® chromophore materials for polymer based photonic devices and photonic integrated circuits (PICs). The license agreement represents tangible commercial progress for electro-optic polymers as part of our Company's business plan. Our Company is also in various stages of photonic device and materials development and evaluation with potential customers and strategic partners. We expect to continue to obtain a revenue stream from technology licensing agreements, and to obtain additional revenue streams from technology transfer agreements and direct sale of our electro-optic device components. We have seen increased interest in our materials during 2023, which has continued into 2024 and we are in discussions on future license agreements.

Current wording

We commenced commercial operations in May 2023. Presently, our commercial operations consist of a material supply license agreement to provide Perkinamine® chromophore materials for polymer based photonic devices and photonic integrated circuits (PICs). The license agreement represents tangible commercial progress for electro-optic polymers as part of our Company's business plan. Our Company is also in various stages of photonic device and materials development and evaluation with potential customers and strategic partners. We expect to continue to obtain a revenue stream from technology licensing agreements, and to obtain additional revenue streams from technology transfer agreements and direct sale of our electro-optic device components. We have seen increased interest in our materials during 2023, which has continued into 2024 and we are in discussions on future license agreements. Additionally, during 2024, our Company performed device processing work for a customer.

Previous wording

We showed bandwidths of polymer-based modulator devices at a major international conference (ECOC – European Conference on Optical Communications 2018) with bandwidths that exceeded 100GHz. We noted that to achieve 100Gbaud, the polymer-based modulator only needs to achieve 80GHz bandwidth. During ECOC 2019, we showed environmental stability. We continue to develop our polymer materials and device designs to optimize additional metrics. We are now optimizing the device parameters for very low voltage operation. At the ECOC 2022 conference we demonstrated two different world record performances using polymer slot-based modulators. In an invited presentation at OFC 2024 in San Diego, we presented data that showed our packaged polymer slot modulators operating with open (clean) eye diagrams at 100GBaud PAM4 (or 200Gbps PAM4) at voltage drive levels at 1V. We also showed polymer modulators with voltage drive levels that were below 1V. Driving voltage levels of around 1V is important as it allows our polymer modulators to be driven directly from CMOS ICs (as opposed to dedicated driver integrated circuit chips).

Current wording

We showed bandwidths of polymer-based modulator devices at a major international conference (ECOC – European Conference on Optical Communications 2018) with bandwidths that exceeded 100GHz. We noted that to achieve 100Gbaud, the polymer-based modulator only needs to achieve 80GHz bandwidth. During ECOC 2019, we showed environmental stability. We continue to develop our polymer materials and device designs to optimize additional metrics. We are now optimizing the device parameters for very low voltage operation. At the ECOC 2022 conference we demonstrated two different world record performances using polymer slot-based modulators. In an invited presentation at OFC 2024 in San Diego, we presented data that showed our packaged polymer slot modulators operating with open (clean) eye diagrams at 100GBaud PAM4 (or 200Gbps PAM4) at voltage drive levels at 1V. We also showed polymer modulators with voltage drive levels that were below 1V. Driving voltage levels of around 1V is important as it allows our polymer modulators to be driven directly from CMOS ICs (as opposed to dedicated driver integrated circuit chips). We have recently demonstrated drive levels below 0.5V, which represents the highest performance commercially designed Electro-Optic polymer modulators to date. The impact of very low drive voltages directly affects savings in power consumption for the module system, which is a key issue for datacenter operators today.

Previous wording

During February and March 2018, we moved our Newark, Delaware synthetic laboratory and our Longmont, Colorado optical testing laboratory and corporate headquarters to office, laboratory and research and development space located at 369 Inverness Parkway, Suite 350, Englewood, Colorado. The 13,420 square feet Englewood facility includes fully functional 1,000 square feet of class 1,000 cleanroom, 500 square feet of class 10,000 cleanroom, chemistry laboratories, and analytic laboratories. The Englewood facility streamlines all of our Company’s research and development workflow for greater operational efficiencies.

Current wording

During February and March 2018, we moved our Newark, Delaware synthetic laboratory and our Longmont, Colorado optical testing laboratory and corporate headquarters to office, laboratory and research and development space located at 369 Inverness Parkway, Suite 350, Englewood, Colorado. The 22,420 square feet Englewood facility includes fully functional 1,000 square feet of class 1,000 cleanroom, 500 square feet of class 10,000 cleanroom, chemistry laboratories, and analytic laboratories. The Englewood facility streamlines all our Company’s research and development workflow for greater operational efficiencies.

Previous wording

In September 2019 at the prestigious European Conference on Communications (ECOC) in Dublin, Ireland, we showed measured material response over frequency and the resulting optical data bits stream on our clean technology polymer materials, the newest addition to our family of Perkinamine™ polymers, that meet and exceed of our near-term target speed of 80 GHz. We also released data demonstrating stability under elevated temperatures in the activated (poled to create data carrying capability) state.

Current wording

In September 2019 at the prestigious European Conference on Communications (ECOC) in Dublin, Ireland, we showed measured material response over frequency and the resulting optical data bits stream on our clean technology polymer materials, the newest addition to our family of Perkinamine TM polymers, that meet and exceed of our near-term target speed of 80 GHz. We also released data demonstrating stability under elevated temperatures in the activated (poled to create data carrying capability) state.

Previous wording

On June 7, 2021, we announced thatour company’s common stock was added to the Solactive EPIC Core Photonics EUR Index NTR as part of the index's semi-annual additions. The index includes global public companies with a common theme of optoelectronics, photonics, and optical technologies in general that range from components, modules, manufacturers, and optical network system companies. This inclusion broadens our exposure to the capital markets community, as well as credibility with potential partners and customers.

Current wording

On June 7, 2021, we announced that our company’s common stock was added to the Solactive EPIC Core Photonics EUR Index NTR as part of the index's semi-annual additions. The index includes global public companies with a common theme of optoelectronics, photonics, and optical technologies in general that range from components, modules, manufacturers, and optical network system companies. This inclusion broadens our exposure to the capital markets community, as well as credibility with potential partners and customers.

Previous wording

As we move forward to diligently meet our goals, we continue to work closely with our packaging and foundry partners for 112Gbaud prototypes, and we are advancing our reliability and characterization efforts to support our prototyping. Depending on electrical encoding schemes such as PAM4, or PAM8, or wavelength optical multiplexing, these Gigabaud rates roughly translate to 200Gbps and 300Gbps per lane, and are the key speed rates for emerging 800Gbps to future possible 1200Gbps applications. Our partnership with silicon-based foundries will allow us to scale commercial volumes of electro-optic polymer modulator devices using large silicon wafers, and we are currently working to have our fabrication processes accepted into foundry PDKs (process development kits). These are the recipes that foundries use to manufacture devices in their fabrication plants.

Current wording

As we move forward to diligently meet our commercial goals, we continue to work closely with our packaging and foundry partners for 112Gbaud prototypes, and we are advancing our reliability and characterization efforts to support our prototyping. Depending on electrical encoding schemes such as PAM4, or PAM8, or wavelength optical multiplexing, these Gigabaud rates roughly translate to 200Gbps and 300Gbps per lane and are the key speed rates for emerging 800Gbps to future possible 1200Gbps applications. Our partnership with silicon-based foundries will allow us to scale commercial volumes of electro-optic polymer modulator devices using large silicon wafers, and we are currently working to have our fabrication processes accepted into foundry PDKs (process development kits). These are the recipes that foundries use to manufacture devices in their fabrication plants.

Previous wording

During the three months ended June 30, 2024, we recognized $19,355 of licensing and royalty revenue. As a development stage company, during the three months ended June 30, 2023, we had no revenues. The Company is in various stages of photonic device and materials development and evaluation with potential customers and strategic partners, and commercialization. The Company expects to continue obtaining a revenue stream from technology licensing agreements, to obtain additional revenue streams from technology transfer agreements and direct sale of its own electro-optic device components.

Current wording

During the three months ended September 30, 2024, we recognized $22,916 of licensing and royalty revenue. As a development stage company, during the three months ended September 30, 2023, we had no revenues. The Company is in various stages of photonic device and materials development and evaluation with potential customers and strategic partners, and commercialization. The Company expects to continue obtaining a revenue stream from technology licensing agreements, to obtain additional revenue streams from technology transfer agreements and direct sale of its own electro-optic device components.

Previous wording

During the three months ended June 30, 2024 and June 30, 2023 we recognized $0 in Cost of Sales.

Current wording

During the three months ended September 30, 2024 and September 30, 2023 we recognized $1,236 and $0 in Cost of Sales, respectively.

Previous wording

Research and development expenses increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to increases in research and development salary expenses, prototype device development expenses, laboratory and wafer fabrication materials and supplies expenses, depreciation expense, research and development rent expenses, research and development travel expenses, property taxes, repair expenses and equipment rental expenses, offset by a decrease in research and development non-cash stock option amortization expenses, research and development employee relocation expenses, and research and development recruiting fees.

Current wording

Research and development expenses decreased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to decreases in research and development non-cash stock option amortization expenses, prototype device development and wafer fabrication expenses, and laboratory and wafer fabrication materials and supplies expenses, offset by increases in research and development salary expenses, research and development equipment depreciation expense, research and development travel expense, and software expense.

Previous wording

We expect to continue to incur substantial research and development expense developing and commercializing our photonic devices, and electro-optic materials platform. These expenses will increase as a result of accelerated development effort to support commercialization of our non-linear optical polymer materials technology; to build photonic device prototypes; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses.

Current wording

We expect to continue to incur substantial research and development expense developing and commercializing our photonic devices, and electro-optic materials platform. These expenses will increase because of accelerated development effort to support commercialization of our non-linear optical polymer materials technology; to build photonic device prototypes; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses.

Previous wording

General and administrative expenses increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, primarily due to increases in general and administrative non-cash stock option amortization expenses, general and administrative salary expenses, consulting fees, sales and marketing expenses, legal fees, depreciation expense, general and administrative rent expenses, and general and administrative travel expenses, offset by decreases in auditing and accounting fees.

Current wording

General and administrative expenses increased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to increases in general and administrative salary expenses and legal fees, offset by decreases in general and administrative non-cash stock option amortization expenses, accounting fees and office expenses.

Previous wording

Other income increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to a $476,466 decrease in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $359,218 increase in interest income on money market account.

Current wording

Other income decreased for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to the recognition of a $210,274 loss on retirement of certain expired patent applications and patents, and a $24,582 decrease in interest income on money market account, offset by a $9,428 decrease in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement.

Previous wording

Net loss was $11,699,595 and $10,933,765 for the six months ended June 30, 2024 and 2023, respectively, for an increase of $765,830 due primarily to increases in salary expenses, prototype device development expenses, depreciation expense, laboratory and wafer fabrication materials and supplies expenses, consulting fees, rent expense, travel expenses, and property tax expenses. These increases were offset by decreases in non-cash stock option amortization, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, employee relocation expenses, legal expense, and recruiting fees and an increase in interest income on money market account.

Current wording

Net loss was $5,300,913 and $5,164,591 for the three months ended September 30, 2024 and 2023, respectively, for an increase of $136,322 due primarily to increases in salary expenses, recognition of loss on retirement of certain expired patent applications and patents, increases in legal fees, depreciation of research and development equipment, and travel expenses, and a decrease in interest income on money market account, offset by decreases in non-cash stock option amortization expenses, prototype device development and wafer fabrication expenses, laboratory and wafer fabrication materials and supplies expenses, accounting fees, office expenses, and commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement.

Previous wording

During the six months ended June 30, 2024, we recognized $36,022 of licensing and royalty revenue. As a development stage company, during the six months ended June 30, 2023, we had no revenues.

Current wording

During the nine months ended September 30, 2024, we recognized $58,938 of licensing and royalty revenue and $13,750 revenue for the device processing work on the device supplied by a customer. As a development stage company, during the nine months ended September 30, 2023, we had no revenues.

Previous wording

During the six months ended June 30, 2024, we recognized $5,175 in Cost of Sales, and $0 in Cost of Sales during the six months ended June 30, 2023.

Current wording

During the nine months ended September 30, 2024, we recognized $6,411 in Cost of Sales, and $0 in Cost of Sales during the nine months ended September 30, 2023.

Previous wording

Research and development expenses increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, primarily due to increases in research and development salary expenses, research and development equipment depreciation expense, laboratory and wafer fabrication materials and supplies expenses, research and development rent expenses, property tax expenses, repair expenses, and research and development equipment rental expenses, offset by a decrease in prototype device development expenses, research and development employee relocation expenses, research and development non-cash stock option amortization expenses, and research and development recruiting fees.

Current wording

Research and development expenses increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to increases in research and development salary expenses, prototype device development and wafer fabrication expenses, research and development equipment depreciation expense, laboratory and wafer fabrication materials and supplies expenses, research and development travel expenses, rent expenses, property tax expenses, software expenses, research and development repair expenses, and research and development consulting expenses, offset by decreases in research and development non-cash stock option amortization expenses, research and development employee relocation expenses, and research and development recruiting fees in the nine months ended September 30, 2024, compared to the same period in 2023.

Previous wording

We expect to continue to incur substantial research and development expenses developing and commercializing our photonic devices, and electro-optic materials platform. These expenses will increase as a result of accelerated development effort to support commercialization of our non-linear optical polymer materials technology; to build photonic device prototypes; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses.

Current wording

We expect to continue to incur substantial research and development expense developing and commercializing our photonic devices, and electro-optic materials platform. These expenses will increase because of accelerated development effort to support commercialization of our non-linear optical polymer materials technology; to build photonic device prototypes; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses.

Previous wording

General and administrative expenses increased for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to increases in general and administrative salary expenses, consulting fees, depreciation expense, general and administrative recruiting fees, sales and marketing expenses and software expenses, offset by decreases in legal fees and general and administrative non-cash stock option amortization expenses.

Current wording

General and administrative expenses increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to increases in general and administrative salary expenses, consulting fees, depreciation expense, sales and marketing expenses, general and administrative recruiting fees, travel expenses, rent expenses, directors’ fees, and software expenses, offset by decreases general and administrative non-cash stock option amortization expenses, and accounting expenses

Previous wording

Other income increased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, primarily due to a $148,044 increase in interest income on money market account and a $191,749 decrease in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement.

Current wording

Other income increased for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to a $485,894 decrease in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, a $334,636 increase in interest income on money market account, and a recognition of a $210,274 loss on retirement of certain expired patent applications and patents.

Previous wording

Net loss was $6,019,684 and $5,457,747 for the three months ended June 30, 2024 and 2023, respectively, for an increase of $561,937 due primarily to increases in salary expenses, non-cash stock option amortization expenses, depreciation expense, laboratory and wafer fabrication materials and supplies expenses, consulting fees, rent expenses, property taxes, sales and marketing expenses and legal fees. These increases were offset by decreases in prototype device development expenses, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, employee relocation expenses, recruiting fees, auditing expenses and accounting fees, and an increase in interest income on money market account.

Current wording

Net loss was $17,000,508 and $16,098,356 for the nine months ended September 30, 2024 and 2023, respectively, for an increase of $902,152 due primarily to increases in salary expenses, depreciation expense, prototype device development and wafer fabrication expenses, recognition of loss on retirement of certain expired patent applications and patents, increases in consulting fees, travel expenses, laboratory and wafer fabrication materials and supplies expenses, rent expense, property tax expenses, software expenses, sales and marketing expenses, repair expenses, and directors’ fees. These increases were offset by decreases in non-cash stock option amortization expense, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, employee relocation expenses, recruiting fees, and accounting fees, and an increase in interest income on money market account.

Previous wording

On July 2, 2021, the Company filed a $100 million universal shelf registration statement (the “2021 shelf registration statement”) which became effective on July 9, 2021. On October 4, 2021, our Company entered into the 2021 purchase agreement with Lincoln Park to sell up to $33 million of common stock over a 36-month period. All of the registered shares under the October 4, 2021 purchase agreement with Lincoln Park have been issued as of December 31, 2023. On February 28, 2023, our Company entered into the 2023 purchase agreement with Lincoln Park to sell up to $30 million of common stock over a 36-month period, with $6.4 million remaining on the 2023 Purchase Agreement as of the date of this filing. On December 9, 2022, our Company entered into the at the market sale agreement with Roth Capital, as sales agent, whereby pursuant to the at the market sale agreement, our Company may offer and sell up to $35,000,000 in shares of our common stock, from time to time through Roth Capital. As of the date of this filing $32.9 million remains available to our Company pursuant to the at the market sale agreement. The 2021 shelf registration statement expired in July 2024 and on July 26, 2024, and the Company filed a $100,000,000 universal shelf registration statement with the U.S. Securities and Exchange Commission which became effective on August 5, 2024 (the “2024 shelf registration statement”). The unsold securities relating to the 2023 purchase agreement with Lincoln Park and the at the market sale agreement with Roth Capital were carried over from the 2021 Shelf Registration to the 2024 Shelf Registration.

Current wording

On July 2, 2021, our Company filed a $100 million universal shelf registration statement which became effective on July 9, 2021 and expired on July 8, 2024. On July 26, 2024, the Company filed a new $100 million universal shelf registration statement which became effective on August 5, 2024. On October 4, 2021, our Company entered into the 2021 purchase agreement with Lincoln Park to sell up to $33 million of registered common stock over a 36-month period. All of the registered shares under the October 4, 2021 purchase agreement with Lincoln Park have been issued as of December 31, 2023. On February 28, 2023, our Company entered into the 2023 purchase agreement with Lincoln Park to sell up to $30 million of registered common stock over a 36-month period. As of the date of this filing, $2.8 million remain on the 2023 Purchase Agreement. On December 9, 2022, our Company entered into the at the market sale agreement with Roth Capital, as sales agent, whereby pursuant to the at the market sale agreement, our Company may offer and sell up to $35,000,000 in shares of our registered common stock, from time to time through Roth Capital. As of the date of this filing, $31.9 million remains available to our Company pursuant to the at the market sale agreement.

Previous wording

During the six months ended June 30, 2024, the Company received $7,495,600 in proceeds pursuant to the 2023 purchase agreement with Lincoln Park, $499,883 in proceeds pursuant to the at the market sale agreement with Roth Capital, and $245,250 in proceeds pursuant to the exercise of options and warrants and $63,884 in cash collections from customer contracts, of which $50,000 related to the proceeds received under a material supply and license agreement and $13,884 – to the proceeds received for a contract for processing work on the devices supplied by a customer. During the year ended December 31, 2023, the Company received $19,993,359 in proceeds pursuant to the 2021 purchase agreement and 2023 purchase agreement with Lincoln Park, $1,515,878 in proceeds pursuant to the at the market sale agreement with Roth Capital, $1,013,924 in proceeds pursuant to the exercise of options and warrants and $50,000 in a proceed received under a material supply and license agreement of which $39,875 is recorded as deferred revenue as of December 31, 2023.

Current wording

During the nine months ended September 30, 2024, the Company received $9,175,900 in proceeds pursuant to the 2023 purchase agreement with Lincoln Park, $714,901 in proceeds pursuant to the at the market sale agreement with Roth Capital, $252,450 in proceeds pursuant to the exercise of options and warrants and $63,884 in cash collections from customer contracts, of which $50,000 related to the proceeds received under a material supply and license agreement and $13,884 – to the proceeds received for a contact for processing work on the devices supplied by a customer. During the year ended December 31, 2023, the Company received $19,993,359 in proceeds pursuant to the 2021 purchase agreement and 2023 purchase agreement with Lincoln Park, $1,515,878 in proceeds pursuant to the at the market sale agreement with Roth Capital, $1,013,924 in proceeds pursuant to the exercise of options and warrants and $50,000 in a proceed received under a material supply and license agreement of which $39,875 is recorded as deferred revenue as of December 31, 2023.

Previous wording

During the six months ended June 30, 2024, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including prototypes development and foundries expenses, laboratory and wafer fabrication materials and supplies expenses, and third-party service providers. During the year ended December 31, 2023, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including prototypes development and foundries expenses and third-party service providers.

Current wording

During the nine months ended September 30, 2024, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including prototypes development and foundries expenses, laboratory and wafer fabrication materials and supplies expenses, and third-party service providers. During the year ended December 31, 2023, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including prototypes development and foundries expenses and third-party service providers.

Previous wording

Our future expenditures and capital requirements will depend on numerous factors, including: the progress of our research and development efforts; the rate at which we can, directly or through arrangements with original equipment manufacturers, introduce and sell products incorporating our polymer materials technology; the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; market acceptance of our products and competing technological developments; and our ability to establish cooperative development, joint venture and licensing arrangements. We expect that we will incur approximately $1,840,000 of expenditures per month over the next 12 months.

Current wording

Our future expenditures and capital requirements will depend on numerous factors, including: the progress of our research and development efforts; the rate at which we can, directly or through arrangements with original equipment manufacturers, introduce and sell products incorporating our polymer materials technology; the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; market acceptance of our products and competing technological developments; and our ability to establish cooperative development, joint venture and licensing arrangements. We expect that we will incur approximately $1,687,000 of expenditures per month over the next 12 months.

Previous wording

We expect that our cash used in operations will continue to increase during 2024 and beyond as a result of the following planned activities:

Current wording

We expect that our cash used in operations will continue to increase during 2024 and beyond because of the following planned activities:

Previous wording

Net cash used in operating activities was $8,823,788 for the six months ended June 30, 2024, primarily attributable to the net loss of $11,699,595 adjusted by $2,337,460 in options issued for services, $203,521 amortization of deferred compensation, $105,960 in common stock issued for services, $804,737 in depreciation expenses and patent amortization expenses, $94,753 amortization of right of use asset, $3,166 loss on disposal of property and equipment, $22,311 in accounts receivable, $476,730 in prepaid expenses and other current assets and ($1,172,831) in accounts payable, accrued bonuses, accrued expenses, deferred revenue and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, rent and other expenditures necessary to develop our business infrastructure.

Current wording

Net cash used in operating activities was $12,414,222 for the nine months ended September 30, 2024, primarily attributable to the net loss of $17,000,508 adjusted by $3,468,243 in stock options issued for services, $304,937 amortization of deferred compensation, $121,833 in common stock issued for commitment shares, $1,240,639 in depreciation expenses and patent amortization expenses, $143,239 amortization of right of use asset, $213,440 loss on disposal of property and equipment and retirement of certain expired patent applications and patents, $3,562 in accounts receivable, $675,537 in prepaid expenses and other current assets and ($1,585,144) in accounts payable, accrued bonuses, accrued expenses, deferred revenue and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, rent and other expenditures necessary to develop our business infrastructure.

Previous wording

Net cash used in investing activities was $1,653,217 for the six months ended June 30, 2024, consisting of $67,445 in cost for intangibles and $1,585,772 in asset additions for the Colorado headquarter facility and labs.

Current wording

Net cash used in investing activities was $2,278,649 for the nine months ended September 30, 2024, consisting of $343,233 in cost for intangibles and $1,935,416 in net asset additions for the Colorado headquarter facility and labs.

Previous wording

Net cash provided by financing activities was $8,240,733 for the six months ended June 30, 2024 and consisted of $245,250 in proceeds from exercise of options and warrants, $7,495,600 in proceeds from resale of common stock to an institutional investor and $499,883 in proceeds from at the market sale of common stock by an investment banking company.

Current wording

Net cash provided by financing activities was $10,143,251 for the nine months ended September 30, 2024, and consisted of $252,450 in proceeds from exercise of options and warrants, $9,175,900 in proceeds from resale of common stock to an institutional investor and $714,901 in proceeds from at the market sale of common stock by an investment banking company.

Previous wording

On June 30, 2024, our cash and cash equivalents totaled $29,195,815, our assets totaled $39,798,833, our liabilities totaled $4,176,940 and we had stockholders’ equity of $35,621,893.

Current wording

On September 30, 2024, our cash and cash equivalents totaled $26,882,467, our assets totaled $37,236,197, our liabilities totaled $3,764,627 and we had stockholders’ equity of $33,471,570.

Previous wording

Net cash used in operating activities was $7,004,008 for the six months ended June 30, 2023, primarily attributable to the net loss of $10,933,765 adjusted by $3,389,804 in options issued for services, $133,854 amortization of deferred compensation, $582,426 in common stock issued for services, $531,046 in depreciation expenses and patent amortization expenses, $92,812 amortization of right of use asset, $581 loss on disposal of property and equipment, ($162,748) in prepaid expenses and ($638,019) in accounts payable, accrued expenses, deferred revenue and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, rent and other expenditures necessary to develop our business infrastructure.

Current wording

Net cash used in operating activities was $9,913,798 for the nine months ended September 30, 2023, primarily attributable to the net loss of $16,098,356 adjusted by $5,085,114 in options issued for services, $198,253 amortization of deferred compensation, $607,728 in common stock issued for services, $797,500 in depreciation expenses and patent amortization expenses, $138,502 amortization of right of use asset, $581 loss on disposal of property and equipment, $87,058 in prepaid expenses and ($730,178) in accounts payable, accrued expenses, deferred revenue and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, rent and other expenditures necessary to develop our business infrastructure.

Previous wording

Net cash used by investing activities was $513,095 for the six months ended June 30, 2023, consisting of $177,245 in cost for intangibles, $978,560 in asset additions for the Colorado headquarter facility and labs offset by $642,120 in a loan repayment and $590 in proceeds on sale of property and equipment.

Current wording

Net cash used by investing activities was $1,386,164 for the nine months ended September 30, 2023, consisting of $215,061 in cost for intangibles, $1,813,813 in asset additions for the Colorado headquarter facility and labs offset by $642,120 in a loan repayment and $590 in proceeds on sale of property and equipment.

Previous wording

Net cash provided by financing activities was $16,050,739 for the six months ended June 30, 2023 and consisted of $456,801 in proceeds from exercise of options and warrants, $14,950,409 in proceeds from resale of common stock to an institutional investor and $643,529 in proceeds from at the market sale of common stock by an investment banking company.

Current wording

Net cash provided by financing activities was $18,074,457 for the nine months ended September 30, 2023 and consisted of $632,074 in proceeds from exercise of options and warrants, $16,063,909 in proceeds from resale of common stock to an institutional investor and $1,378,474 in proceeds from at the market sale of common stock by an investment banking company.

Previous wording

On June 30, 2023, our cash and cash equivalents totaled $32,635,787, our assets totaled $40,552,039, our liabilities totaled $3,775,958 and we had stockholders’ equity of $36,776,081.

Current wording

On September 30, 2023, our cash and cash equivalents totaled $30,876,646, our assets totaled $39,104,017, our liabilities totaled $3,683,798 and we had stockholders’ equity of $35,420,219.

Previous wording

There have been no material changes outside the ordinary course of business in our contractual commitments during the six months ended June 30, 2024. See Note 8 to the financial statements herein for a discussion of our contractual commitments.

Current wording

There have been no material changes outside the ordinary course of business in our contractual commitments during the nine months ended September 30, 2024. See Note 8 to the financial statements herein for a discussion of our contractual commitments.

Previous wording

We believe our significant accounting policies affect our more significant estimates and judgments used in the preparation of our financial statements. Our Annual Report on Form 10-K for the year ended December 31, 2023 contains a discussion of these significant accounting policies. The Company’ssignificant accounting policies have not materially changed since that report was filed.

Current wording

We believe our significant accounting policies affect our more significant estimates and judgments used in the preparation of our financial statements. Our Annual Report on Form 10-K for the year ended December 31, 2023, contains a discussion of these significant accounting policies. The Company’s significant accounting policies have not materially changed since that report was filed.