Lightwave Logic Inc (LWLG)

[XenaLives]

Bumping the replied to post from Richard_LaRiv about why LPC is being used....

No worries. Regarding your comment on not being able to buy into Ayar's shares yet, I also think they will have an IPO in the next year or two. I think you were alluding to this. However, I do think LWLG is superior in their capital structure compared to Ayar Labs. I say that with reservations because obviously I can't see Ayar's books.

However, I can't imagine a company that has done several rounds of funding with VC's and still maintains full control of their company the way LWLG has control of theirs.

LWLG has used a much different capital structure than many startups. It has worked for them. This is proven by their low outstanding share count, just over 111 million shares and they're currently debt free with 24 million dollars in the bank. They did this without accepting any venture capital funding.

VC funding is not always a positive event for a startup. VC's want to dictate how you spend their money. They want a bigger piece of your company. If LWLG would have went the VC route like Ayar Labs did, for example, there would likely be a much larger outstanding share count which would have dilluted the current shareholder base. It also would have meant that the VC's would likely own 5, 10, or 20% of the company. At 5% ownership, it is commonplace for the investor to get a seat on the company's Board of Directors, which gives them a say in how the company is ran and with whom they do business. With VC funding, LWLG would likely not reach its full potential because the VC firm would be doing some shopping around of its own and could "help" the company get acquired by an Intel or IBM before it has reached its full maturity. This could be why Ayar has big tech names attached to it. For example, the VC funding from Intel Capital could have came with rights to first products. In which case, Intel dictates Ayar's future timing and pricing since they are also a large shareholder in Ayar and a technology development partner.

In my opinion, we do not see VC's like Intel Capital, Founders Fund, or any of the other big boys involved with LWLG because it is not in the best interest of LWLG and they have chosen not to entertain the VC funding route. I believe in the long run, this will prove to be a HUGE bonus for LWLG retail investors that hold the stock for the next few years.

Business is very complex and you have to be a fan of how your company is conducting themselves in relation to others before you invest. I think Ayar Labs will be very successful in the long run, but it has come at the cost of giving away a large portion of shares and control of the company to VC's and partners.

The goal is to cross the finish line to commercialization while still having ownership of the company you built. That is what LWLG is doing well and shareholder's will benefit from this type of management and capital structure.