Lightwave Logic, Inc.

Previous 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 new 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 materials. We have seen increased interest in our materials during 2024, driven by the need for higher speed connections to scale the AI-enabled network infrastructure and we are in discussions on future license agreements. In December 2024, we made the decision to focus our commercial and R&D efforts on the EO Polymer materials development and manufacturing. Although we continue to develop full Photonic Integrated Circuits and packaged device designs as part of our internal technology and process development roadmap, we are not actively promoting the sale of such PICs and/or packaged devices to external customers, but rather EO Polymer materials supply and 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 new 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 materials. We saw increased interest in our materials during 2024 and 2025, driven by the need for higher speed connections to scale the AI-enabled network infrastructure and we are in discussions on future license agreements. In December 2024, we made the decision to focus our commercial and R&D efforts on the EO Polymer materials development and manufacturing. Although we continue to develop full Photonic Integrated Circuits and packaged device designs as part of our internal technology and process development roadmap, we are not actively promoting the sale of such PICs and/or packaged devices to external customers, but rather EO Polymer materials supply and license agreements.

Previous 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.

Current wording

During the three months ended September 30, 2025, we recognized $29,166 of licensing and royalty revenue. During the three months ended September 30, 2024, we recognized $22,916 of licensing and royalty revenue.

Previous 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.

Current wording

During the three months ended September 30, 2025, we recognized $0 in cost of sales. During the three months ended September 30, 2024, we recognized $1,236 in Cost of Sales.

Previous 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.

Current wording

Research and development expenses decreased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to decreases in research and development non-cash stock option and restricted stock awards and units amortization expenses, research and development salary and employee benefits expenses, prototype device development expenses, and research and development travel expenses.

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 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.

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 because 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

General and administrative expenses increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to increases in general and administrative salary expenses and general and administrative non-cash stock option and restricted stock amortization expenses, offset by decreases in general and administrative consulting fees, sales and marketing expenses, and business insurance fees.

Current wording

General and administrative expenses increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to increases in general and administrative salary and employee benefits expenses and general and administrative non-cash stock option and restricted stock awards and units amortization expenses, offset by a decrease in legal expenses.

Previous wording

Other expense increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a $206,817 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $83,475 decrease in interest income on money market account.

Current wording

Other income increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to a $175,849 decrease in loss due to retirement of certain expired patent applications and patents, offset by a $64,335 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $29,063 decrease in interest income on money market account.

Previous wording

Net loss was $10,369,156 and $11,699,595 for the six months ended June 30, 2025 and 2024, respectively, for a decrease of $1,330,439 due primarily to decreases in research and development outside services expenses, wafer fabrication expenses, prototype device development expenses, non-cash stock option and restricted stock amortization expenses, laboratory materials and supplies expenses, research and development travel expenses, general and administrative consulting fees, research and development testing expenses, accounting and auditing fees, general and administrative recruiting fees, and business insurance expenses. These decreases were offset by increases in salary expense, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, depreciation expense, and legal fees, and a decrease in interest income on money market account.

Current wording

Net loss was $5,100,559 and $5,300,913 for the three months ended September 30, 2025 and 2024, respectively, for a decrease of $200,354 due primarily to decreases in prototype device development expenses, loss due to retirement of certain expired patent applications and patents, decreases in legal fees, non-cash stock option and restricted stock awards and units amortization expenses, and research and development travel expenses. These decreases were offset by increases in salary and employee benefits expenses, and commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, and a decrease in interest income on money market account.

Previous wording

During the six months ended June 30, 2025, we recognized $48,522 of licensing and royalty revenue. During the six months ended June 30, 2024, we recognized $36,022 of licensing and royalty revenue.

Current wording

During the nine months ended September 30, 2025, we recognized $77,688 of licensing and royalty revenue. 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.

Previous 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.

Current wording

For the nine months ended September 30, 2025, 100% of the Company’s net sales were generated internationally. For the nine months ended September 30, 2024, 19% of the Company's net sales were generated in the United States and 81% internationally. The Company has one customer that accounted for 10% or more of total revenue.

Previous wording

During the six months ended June 30, 2025, we recognized $5,491 in Cost of Sales. During the six months ended June 30, 2024, we recognized $5,175 in Cost of Sales.

Current wording

During the nine months ended September 30, 2025, we recognized $5,491 in Cost of Sales. During the nine months ended September 30, 2024, we recognized $6,411 in Cost of Sales.

Previous 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.

Current wording

Research and development expenses decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to decreases in research and development non-cash stock option and restricted stock awards and units amortization expenses, research and development salary and employee benefits expenses, prototype device development expenses, wafer fabrication expenses, laboratory materials and supplies expenses, and research and development travel expenses.

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 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.

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 because 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

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.

Current wording

General and administrative expenses increased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to increases in general and administrative salary and employee benefits expenses, and general and administrative non-cash stock option and restricted stock awards and units amortization expenses.

Previous wording

Other income decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a $137,871 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $148,965 decrease in interest income on money market account.

Current wording

Other income decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to a $202,206 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $178,029 decrease in interest income on money market account, offset by a $207,815 decrease in loss due to retirement of certain expired patent applications and patents and trade in and retirement of property and equipment.

Previous 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.

Current wording

Net loss was $15,469,715 and $17,000,508 for the nine months ended September 30, 2025 and 2024, respectively, for a decrease of $1,530,793 due primarily to decreases in non-cash stock option and restricted stock awards and units amortization expenses, prototype device development expenses, wafer fabrication expenses, laboratory materials and supplies expenses, research and development travel expenses, and loss due to retirement of certain expired patent applications and patents. These decreases were offset by increases in salary and employee benefits expenses, and commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, and a decrease in interest income on money market account.

Previous 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.

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, $26,762,995 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, $12,235,261 remains available pursuant to the Roth Sales Agreement.

Previous 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.

Current wording

During the nine months ended September 30, 2025, the Company received $1,486,983 in proceeds pursuant to the 2023 Purchase Agreement, $3,006,505 in proceeds pursuant to the 2025 Purchase Agreement, $14,377,542 in proceeds pursuant to the Roth Sales Agreement, $250,679 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 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.

Current wording

During the nine months ended September 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 $1,786,000 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 $2,200,000 of expenditures per month over the next 12 months. On September 30, 2025, our cash and cash equivalents totaled $34,942,070.

Previous 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.

Current wording

Net cash used in operating activities was $10,436,426 for the nine months ended September 30, 2025, primarily attributable to the net loss of $15,469,715 adjusted by $1,693,640 in options issued for services, $482,613 amortization of deferred compensation, $556,575 amortization of performance stock units, $488,978 amortization of restricted stock units, $705,500 non-cash compensation expense from stock option exercises, $324,040 in common stock issued as commitment shares under the 2023 and 2025 Purchase Agreements, $1,434,610 in depreciation expenses and patent amortization expenses, $152,702 amortization of right of use asset, $28,800 gain on disposal of property and equipment, $34,425 loss due to retirement of certain expired patent applications, $9,812 in accounts receivable, ($80,950) in prepaid expenses and other current assets, and ($739,856) 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 $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.

Current wording

Net cash used by investing activities was $1,226,376 for the nine months ended September 30, 2025, consisting of $273,192 in cost for intangibles and $953,184 in asset additions for the Colorado headquarter facility and labs.

Previous 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.

Current wording

Net cash provided by financing activities was $18,936,908 for the nine months ended September 30, 2025, and consisted of $250,679 in proceeds from exercise of options, $171,926 cashless option exercise tax payments, $12,875 cashless tax payment on vested restricted stock awards, $4,493,488 in proceeds from the sale of common stock pursuant to the 2023 and 2025 Purchase Agreements and $14,377,542 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement.

Previous 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.

Current wording

On September 30, 2025, our cash and cash equivalents totaled $34,942,070, our assets totaled $44,786,666, our liabilities totaled $3,596,154 and we had stockholders’ equity of $41,190,512.

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

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 the sale of common stock pursuant to the 2023 Purchase Agreement and $714,901 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement.

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

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.

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, 2025. SeeNote 7 - Leases to the financial statements herein for a discussion of our operating lease for office and laboratory space.