Reading between the lines is a difficult thing to do when lawyers, especially LW’s lawyer, want to create vagueness because that was their training. I do agree with Ted on the topic of vague wording, but his motives are to get the stock price as low as he possibly can by interpreting everything in a negative light.
My interpretation (correct or not) is that Lebby made an effort to explain what is going on with the licensing agreement discussions. He brought up three topics that are areas of interest in the due diligence process being conducted by the largest potential customers. He did make the point that they are currently talking with very small interested parties as well. The boxes that need to be checked are different depending on what part of the ecosystem a potential customer sits. A foundry wants to be assured they can get all the Perkinamine they could ever require. They also need to be assured the polymer can maintain its performance level for at least as long as the incumbent technology. After all, if a foundry sells one million transceivers to a hyperscaler’s data center and the transceivers start to fail after a year, who is responsible and what is the corrective course of action. These are due diligence topics.
The foundry needs to understand the economics of producing millions of PICs on their 200mm wafers. This knowledge comes from trial runs and test results. These trials have been ongoing for at least a year with multiple foundries. Some foundries are ahead of others. We know Dr Lebby has been very pleased with the test results on the PICs that have been produced on 200mm wafers. These terrific results need to be verified from run to run from multiple foundries. All of these production statistics are put into formulas to arrive at an agreeable price and royalty arrangement. These are due diligence topics.
The third area about financial stability was really not a concern, in my opinion. I think it was an opportunity for Dr Lebby to reiterate the financial strength of the company. The cash position and shelf offer assurance. Think of it this way from the customer’s viewpoint: “I see your balance sheet today and I am about to give you a $200 million order so should I be concerned if your company will survive long term?”
Dr Lebby gave the shareholders some insight into the topics being discussed currently with major multi-billion dollar potential customers. These topics are rather obvious to me and I think Dr Lebby has anticipated them for years. He has been working with multiple foundries and packaging partners to be ready to address these topics. For the most part, Lightwave Logic is able to check off these boxes today. What remains is all related to continuity of supply.
It doesn’t matter what your motives are for posting on this board or how one wishes to read between the lines, one thing is extremely clear:
The due diligence being conducted by the major players today is all about high volume supply. It doesn’t matter which sales prong gets the order. “They” are interested in tens of millions of transceivers to retrofit their data centers.
