Lightwave Logic Inc (LWLG)

[Lewrock]

Carl, Lebby has said that our licensees may not want to announce to the world how their transceivers are achieving such superior results. Since there will be no exclusivity, our licensees only have secrecy and the first mover advantage to help them gain share.

This is why there is so much interest in the direct sales prong. Once Lightwave’s prototype 800g PICs are demonstrated in high visibility settings, the licensing deals and the technology transfer deals will fall into place.

Licensing deals are pure income with very little costs associated with the revenue. Direct sales requires LW to contract out with one of our foundries to produce the PICs, test them, and ship them to our packaging partners for final assembly. This requires working capital.

It makes sense why the initial focus has been on licensing agreements instead of direct sales. It is called cash management. We are all aware of the negative side associated with this rollout strategy. I don’t like being dependent on someone else’s timeline. I would much prefer to be selling our own product under our own brand. I think the latter starts at OFC.