Lightwave Logic Inc (LWLG)

[BuyNStonks]

Warning: lengthy - Some positive (IMO) minutia and musings

We can plainly see that R&D expenses are going up which I believe is a positive indicator at this stage so long as they burn the cash wisely; which the company seems to be doing.

Heading into 2021 Lightwave had $118k in prepaid expenses for prototype devices. I looked at a couple 2020 !0-Qs and the 10-K and did not see any "Prototype" expenses listed.

Q1'21 had significant expenses associated with prototype devices.

Q2'21 had a drop off in QoQ prototype device development expenses. It did however have significant expenditures for "Lab and wafer materials and supplies." This is the first time I noted this line items presence in a report. The description for the PolymerStack Ridge Waveguide also dropped the word "will" as emphasized below.

Q3'21 saw prototype expenses rebound and another significant expenditure in wafer supplies.

Based on the information that I am looking at I believe Lightwave began prototyping their PolymerStack product in early 2021. I also believe the first prototype was sent out for field testing in Q2'21 if dropping the word "will" from the emphasized sentences has any significance.

Does anyone know if the Polariton news announced at ECOC can be directly attributed to the PolymerStack product line?

My opinion - Things are progressing nicely. I don't know much about the product testing cycle and the length of time needed to fully test and qualify the device for prime time; I'm assuming it's more than a couple months. Please let me know if you believe this assumption to be wrong. My belief is that we don't see a revenue generating announcement until the end of 2022. Plenty of positive steps\announcements on the way to revenue that will benefit shareholders though.



2020 - 10-K
~$118k prepaid expense for "prototype devices"

1Q'21 - 10-Q -

These prototype packages will enable potential customers to evaluate the performance at 50 Gbaud. Once a potential customer generates technical feedback on our prototype, we expect to be asked to optimize the performance to their specifications. Assuming this is successful, we expect to enter a qualification phase where our prototypes will be evaluated more fully.

Prototype device expenses increased by approximately $97 thousand in the three months ended March 31, 2021, compared to the same period in 2020.

2Q'21 - 10-Q -

These prototype packages ("will" has been removed) enable potential customers to evaluate the performance at 50 Gbaud. Once a potential customer generates technical feedback on our prototype, we expect to be asked to optimize the performance to their specifications. Assuming this is successful, we expect to enter a qualification phase where our prototypes will be evaluated more fully.

Prototype device development expenses increased by approximately $16 thousand in the three months ended June 30, 2021, compared to the same period in 2020.

Prototype device development expenses increased by approximately $113 thousand in the six months ended June 30, 2021, compared to the same period in 2020. Laboratory and wafer fabrication materials and supplies increased by approximately $37 thousand in the six months ended June 30, 2021, compared to the same period in 2020.

3Q'21 - 10-Q -

Prototype device development expenses increased by approximately $65 thousand in the three months ended September 30, 2021, compared to the same period in 2020. Laboratory and wafer fabrication materials and supplies increased by approximately $45 thousand in the three months ended September 30, 2021, compared to the same period in 2020.

Prototype device development expenses increased by approximately $177 thousand in the nine months ended September 30, 2021, compared to the same period in 2020. Laboratory and wafer fabrication materials and supplies increased by approximately $82 thousand in the nine months ended September 30, 2021, compared to the same period in 2020.

These prototype packages ("will" has been removed) enable potential customers to evaluate the performance at 50 Gbaud. Once a potential customer generates technical feedback on our prototype, we expect to be asked to optimize the performance to their specifications. Assuming this is successful, we expect to enter a qualification phase where our prototypes will be evaluated more fully.