Lightwave Logic, Inc.

Previous wording

During the three months ended March 31, 2025, we recognized $22,917 of licensing and royalty revenue. During the three months ended March 31, 2024, we recognized $16,667 of licensing and royalty revenue and $13,750 of revenue for the device processing work on the device supplied by a customer.

Current wording

During the three months ended June 30, 2025, we recognized $25,605 of licensing and royalty revenue. During the three months ended June 30, 2024, we recognized $19,355 of licensing and royalty revenue.

Previous wording

During the three months ended March 31, 2025, we recognized $2,028 in cost of sales. During the three months ended March 31, 2024, we recognized $5,175 in cost of sales.

Current wording

During the three months ended June 30, 2025, we recognized $3,463 in cost of sales. During the three months ended June 30, 2024, we recognized $0 in Cost of Sales.

Previous wording

For the three months ended March 31, 2025

Current wording

Research and development expenses decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to decreases in research and development non-cash stock option and restricted stock amortization expenses, research and development salary expenses, laboratory materials and supplies expenses, outside services expenses, wafer fabrication expenses, prototype device development expenses, research and development facilities and equipment rental expenses, research and development consulting expenses, and research and development travel expenses, offset by an increase in research and development equipment depreciation expense.

Previous wording

We expect to continue to incur substantial research and development expenses developing and commercializing our 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 and create next-generation photonic EO device designs; 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 expenses developing and commercializing our electro-optic materials platform. These expenses will increase as a result of accelerated development efforts to support commercialization of our non-linear optical polymer materials technology and create next-generation photonic EO device designs; 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

Net loss was $4,697,024 and $5,679,911 for the three months ended March 31, 2025 and 2024, respectively, for a decrease of $982,887 due primarily to decreases in in prototype device development and wafer fabrication expenses, travel expenses, laboratory and wafer fabrication materials and supplies expenses, research and development testing expenses, accounting and auditing expenses, recruiting expenses, a gain on disposal of property, plant and equipment, consulting expenses, and insurance expenses. These decreases were offset by increases in non-cash stock option and restricted stock amortization expenses, legal expenses, salary and benefits expenses, and depreciation expenses.

Current wording

Net loss was $5,672,132 and $6,019,684 for the three months ended June 30, 2025 and 2024, respectively, for a decrease of $347,552 due primarily to decreases in non-cash stock option and restricted stock amortization expenses, consulting expenses, laboratory materials and supplies expenses, research and development outside services expenses, wafer fabrication expenses, prototype device development expenses, facility and equipment rental expenses, marketing expenses, research and development travel expenses, and business insurance expenses. These decreases were offset by increases in salary expenses, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, research and development equipment depreciation expense, and a decrease in interest income on money market account.

Previous wording

During the three months ended March 31, 2025, 100% of the Company’s net sales were generated internationally. For the three months ended March 31, 2024, 45% of the Company's net sales were generated in the United States and 55% internationally. The Company has one customer that accounted for 10% or more of total revenue.

Current wording

For the six months ended June 30, 2025, 100% of the Company’s net sales were generated internationally. For the six months ended June 30, 2024, 28% of the Company's net sales were generated in the United States and 72% internationally. The Company has one customer that accounted for 10% or more of total revenue.

Previous wording

Research and development expenses decreased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to decreases in prototype device development and wafer fabrication expenses, research and development salary and benefits expenses, research and development travel expenses, laboratory and wafer fabrication materials and supplies expenses, research and development testing expenses, and research and development non-cash stock option and restricted stock amortization expenses, offset by an increase in research and development equipment depreciation expense.

Current wording

Research and development expenses decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to decreases in outside services expenses, wafer fabrication expenses, prototype device development expenses, research and development non-cash stock option and restricted stock amortization expenses, research and development salary expenses, laboratory materials and supplies expenses, research and development travel expenses, and research and development testing expenses, offset by an increase in research and development equipment depreciation expense.

Previous wording

General and administrative expenses increased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to increases in general and administrative non-cash stock option amortization expenses, general and administrative salary and benefits expenses, and legal expenses, offset by decreases in accounting and auditing expenses, depreciation expense, general and administrative recruiting expenses, travel expenses, consulting expenses, and insurance expenses.

Current wording

General and administrative expenses increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increases in general and administrative salary expenses, general and administrative non-cash stock option and restricted stock amortization expenses, and legal fees, offset by decreases in general and administrative consulting fees, accounting and auditing fees, depreciation expense, general and administrative recruiting fees, and business insurance expenses.

Previous wording

Our primary source of operating cash inflows was (i) proceeds from the sale of common stock to Lincoln Park (institutional investor) pursuant to purchase agreements with Lincoln Park and proceeds from sale of common stock by Roth Capital (investment banking company) pursuant to the at the market sales agreement with Roth Capital as described in Note 9 to the Financial Statements and (ii) proceeds received pursuant to the exercise of options.

Current wording

Our primary source of operating cash inflows was (i) proceeds from the sale of common stock to Lincoln Park Capital Fund, LLC (institutional investor) (“Lincoln Park”) pursuant to purchase agreements with Lincoln Park and proceeds from sale of common stock by Roth Capital Partners, LLC (investment banking company) (“Roth Capital”) pursuant to the at the market sales agreement with Roth Capital as described in Note 9 to the Financial Statements and (ii) proceeds received pursuant to the exercise of options.

Previous wording

On July 26, 2024, the Company filed a $100 million universal shelf registration statement which became effective on August 5, 2024. 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, $0 remains on the 2023 Purchase Agreement. On March 17, 2025, our Company entered into the 2025 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, $29,914,035 remains on the 2025 Purchase Agreement. On December 9, 2022, our Company entered into the at the market sales agreement with Roth Capital, as sales agent, pursuant to which our Company may offer and sell up to $35 million in shares of our registered common stock, from time to time through Roth Capital. As of the date of this filing, $31,482,032 remains available to our Company pursuant to the Roth Sales Agreement.

Current wording

On July 26, 2024, we filed a $100 million universal shelf registration statement which became effective on August 5, 2024. On February 28, 2023, we entered into a purchase agreement with Lincoln Park (the “2023 Purchase Agreement”) to sell up to $30 million of registered common stock over a 36-month period. As of the date of this filing, $0 remains available pursuant to the 2023 Purchase Agreement. On March 17, 2025, we entered into a purchase agreement with Lincoln Park (the “2025 Purchase Agreement”) to sell up to $30 million of registered common stock over a 36-month period. As of the date of this filing, $27,846,150 remains available pursuant to the 2025 Purchase Agreement. On December 9, 2022, we entered into the at the market sales agreement with Roth Capital, as sales agent, (the “Roth Sales Agreement”) pursuant to which we may offer and sell up to $35 million in shares of our registered common stock, from time to time through Roth Capital. As of the date of this filing, $26,949,862 remains available pursuant to the Roth Sales Agreement.

Previous wording

During the three months ended March 31, 2025, the Company received $1,486,983 in proceeds pursuant to the 2023 Purchase Agreement, $0 in proceeds pursuant to the 2025 Purchase Agreement, $116,435 in proceeds pursuant to the Roth Sales Agreement, $163,500 in proceeds pursuant to the exercise of options, and $45,565 in cash collections from the material supply and license agreement.

Current wording

During the six months ended June 30, 2025, the Company received $1,486,983 in proceeds pursuant to the 2023 Purchase Agreement, $688,000 in proceeds pursuant to the 2025 Purchase Agreement, $499,883 in proceeds pursuant to the Roth Sales Agreement, $204,000 in proceeds pursuant to the exercise of options, and $75,000 in cash collections from the material supply and license agreement.

Previous wording

During the three months ended March 31, 2025, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including laboratory and wafer fabrication materials and supplies expenses, and third-party service providers.

Current wording

During the six months ended June 30, 2025, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including laboratory and wafer fabrication materials and supplies 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 our products; 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 $1,796,000 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 our products; 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 $1,786,000 of expenditures per month over the next 12 months.

Previous wording

We expect the proceeds received pursuant to the 2025 purchase agreement and any future purchase agreements with Lincoln Park, the at the market sale agreement with Roth Capital, the exercise of options and warrants, and commercial operations to provide us with sufficient funds to maintain our operations over the next 12 months. Our current cash position enables us to finance our operations through May 2026 before we will be required to replenish our cash reserves. Our cash requirements are expected to increase at a rate consistent with our Company’s revenue growth as we expand our activities and operations with the objective of increasing our revenue stream from the commercialization of our electro-optic polymer technology. We currently have no debt to service. We expect that our cash used in operations will continue to increase during 2025 and beyond because of the following planned activities:

Current wording

We expect the proceeds received pursuant to the 2025 Purchase Agreement and any future purchase agreements with Lincoln Park, Roth Sales Agreement, the exercise of options and warrants, and commercial operations to provide us with sufficient funds to maintain our operations over the next 12 months. Our current cash position enables us to finance our operations through October 2026 before we will be required to replenish our cash reserves. Our cash requirements are expected to increase at a rate consistent with our Company’s revenue growth as we expand our activities and operations with the objective of increasing our revenue stream from the commercialization of our electro-optic polymer technology. We currently have no debt to service. We expect that our cash used in operations will continue to increase during 2025 and beyond because of the following planned activities:

Previous wording

On December 9, 2022, we entered into the Roth Sales Agreement with Roth Capital, as sales agent. Pursuant to the at the market sale agreement, our Company may offer and sell up to $35 million in shares of our common stock, from time to time through Roth Capital. Upon delivery of a placement notice based on our Company’s instructions and subject to the terms and conditions of the Roth Sales Agreement, Roth Capital may sell the shares by methods deemed to be an "at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through The Nasdaq Capital Market, on any other existing trading market for the Company’s common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of our Company. We are not obligated to make any sales of shares under this agreement. The Company or Roth Capital may suspend or terminate the offering of shares upon notice to the other party, subject to certain conditions. Roth Capital will act as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. We have agreed to pay Roth Capital commissions for its services of acting as agent of 3.0% of the gross proceeds from the sale of the shares pursuant to the Roth Sales Agreement.

Current wording

On December 9, 2022, we entered into the Roth Sales Agreement with Roth Capital, as sales agent. Pursuant to the Roth Sales Agreement, our Company may offer and sell up to $35 million in shares of our common stock, from time to time through Roth Capital. Upon delivery of a placement notice based on our Company’s instructions and subject to the terms and conditions of the Roth Sales Agreement, Roth Capital may sell the shares by methods deemed to be an "at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through The Nasdaq Capital Market, on any other existing trading market for the Company’s common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of our Company. We are not obligated to make any sales of shares under this agreement. The Company or Roth Capital may suspend or terminate the offering of shares upon notice to the other party, subject to certain conditions. Roth Capital will act as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. We have agreed to pay Roth Capital commissions for its services of acting as agent of 3.0% of the gross proceeds from the sale of the shares pursuant to the Roth Sales Agreement.

Previous wording

The amount of proceeds we receive from the Roth Sales Agreement, if any, will depend upon the number of shares of our common stock sold and the market price at which they are sold. There can be no assurance that we will be able to sell any shares under or fully utilize this agreement. Roth Capital is not required to sell any specific number of shares of our common stock under the agreement. We intend to use net proceeds from the Roth Sales Agreement for general corporate purposes, including, without limitation, sales and marketing activities, product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs.

Current wording

The amount of proceeds we receive from the Roth Sales Agreement, if any, will depend upon the number of shares of our common stock sold and the market price at which they are sold. There can be no assurance that we will be able to sell any shares under or fully utilize this agreement. Roth Capital is not required to sell any specific number of shares of our common stock under the agreement.

Previous wording

Net cash used in operating activities was $3,490,131 for the three months ended March 31, 2025, primarily attributable to the net loss of $4,697,024 adjusted by $749,042 in options issued for services, $230,150 amortization of deferred compensation, $20,500 cashless options exercise, $8,029 in common stock issued as commitment shares, $454,960 in depreciation expenses and patent amortization expenses, $50,043 amortization of right of use asset, $28,800 gain on disposal of property and equipment, $26,815 in accounts receivable, ($86,608) in prepaid expenses and other current assets, and ($217,238) in accounts payable, accrued bonuses, accrued expenses, contract liability and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, salaries, rent and other expenditures necessary to develop our business infrastructure.

Current wording

Net cash used in operating activities was $7,260,222 for the six months ended June 30, 2025, primarily attributable to the net loss of $10,369,156 adjusted by $1,282,692 in options issued for services, $401,863 amortization of deferred compensation, $384,925 amortization of performance stock units, $11,113 amortization of restricted stock units, $705,500 non-cash compensation expense from stock option exercises, $243,830 in common stock issued as commitment shares under the 2023 and 2025 Purchase Agreements, $943,089 in depreciation expenses and patent amortization expenses, $100,938 amortization of right of use asset, $28,800 gain on disposal of property and equipment, $34,812 in accounts receivable, ($237,115) in prepaid expenses and other current assets, and ($733,913) in accounts payable, accrued bonuses, accrued expenses, contract liability and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, salaries, rent and other expenditures necessary to develop our business infrastructure.

Previous wording

Net cash used by investing activities was $899,422 for the three months ended March 31, 2025, consisting of $45,878 in cost for intangibles and $853,544 in asset additions for the Colorado headquarter facility and labs.

Current wording

Net cash used by investing activities was $1,002,226 for the six months ended June 30, 2025, consisting of $108,332 in cost for intangibles and $893,894 in asset additions for the Colorado headquarter facility and labs.

Previous wording

Net cash provided by financing activities was $5,677,653 for the three months ended March 31, 2024 and consisted of $194,850 in proceeds from exercise of options and warrants, $5,152,350 in proceeds from the sale of common stock pursuant to the 2023 Purchase Agreement and $330,453 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement.

Current wording

Net cash provided by financing activities was $2,701,430 for the six months ended June 30, 2025, and consisted of $204,000 in proceeds from exercise of options, $171,926 cashless option exercise tax payments, $12,875 cashless tax payment on vested restricted stock awards, $2,174,983 in proceeds from the sale of common stock pursuant to the 2023 and 2025 Purchase Agreements and $507,248 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement.

Previous wording

On March 31, 2025, our cash and cash equivalents totaled $25,045,329, our assets totaled $35,639,560, our liabilities totaled $4,089,972 and we had stockholders’ equity of $31,549,588.

Current wording

On June 30, 2025, our cash and cash equivalents totaled $22,106,946, our assets totaled $32,436,267, our liabilities totaled $3,602,097 and we had stockholders’ equity of $28,834,170.

Previous wording

Net cash used in operating activities was $4,772,208 for the three months ended March 31, 2024, primarily attributable to the net loss of $5,679,911 adjusted by $626,512 in options issued for services, $64,199 amortization of deferred compensation, $76,977 in common stock issued as commitment shares, $386,498 in depreciation expenses and patent amortization expenses, $47,011 amortization of right of use asset, $3,166 loss on disposal of property, plant and equipment, ($26,384) in accounts receivable, $540,932 in prepaid expenses and other current assets and ($811,208) 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 $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.

Previous wording

Net cash used by investing activities was $828,474 for the three months ended March 31, 2024, consisting of $53,097 in cost for intangibles and $775,377 in asset additions for the Colorado headquarter facility and labs.

Current 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.

Previous wording

Net cash provided by financing activities was $1,766,918 for the three months ended March 31, 2025, and consisted of $163,500 in proceeds from exercise of options, $1,486,983 in proceeds from the sale of common stock pursuant to the 2023 Purchase Agreement and $116,435 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement.

Current 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 Lincoln Park and $499,883 in proceeds from at the market sale of common stock by Roth Capital.

Previous wording

On March 31, 2024, our cash and cash equivalents totaled $31,509,058, our assets totaled $41,737,807, our liabilities totaled $4,538,563 and we had stockholders’ equity of $37,199,244.

Current 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.

Previous wording

There have been no material changes outside the ordinary course of business in our contractual commitments during the three months ended March 31, 2025. SeeNote 8 - Leases to the financial statements herein for a discussion of our operating lease for office and laboratory space.

Current wording

There have been no material changes outside the ordinary course of business in our contractual commitments during the six months ended June 30, 2025. SeeNote 7 - Leases to the financial statements herein for a discussion of our operating lease for office and laboratory space.