Lightwave Logic Inc (LWLG)

[KCCO7913]

Minor correction...EOP is starting to be acknowledged as a possible required technology for the future. High bandwidth and low power modulators are undoubtedly required for the future and EOP is one of just a few technology categories that can meet the demands. GFS, Google, Arista, Coherent, etc. all have it on their list of technologies. It has been researched and explored for decades.

Regarding adoption...it should go like this:

Modulator PIC completion --> Optical Engine (with laser and other components) completion --> Transceiver completion --> Initial Sampling --> Volume Production

While we don't know the precise status of the modulator PIC, we've been told for nearly 2 years that it is "in progress" and in May a lab engineer said they are "shipping arrayed modulators to customers". Whatever that means.

The recent May presentation showed "transceiver outsourcing" as 2024 and 2025 activities. While LWLG may still be optimizing a modulator PIC, we should reasonably expect LWLG to already be in Phase 2 above - working with other companies that take the modulator PIC and integrate it with other components to create an optical engine. Some companies solely make optical engines and then sell them to transceiver companies. Some transceiver companies also make their own optical engines. I am guessing that the "Tier 1" is the latter type. I am still expecting that collaboration to be revealed this year. It's a logical next step after knowing the modulator performance is where it needs to be and there is a foundry that is capable of producing these devices entirely at the foundry.

Do I think we'll see an EOP based transceiver this year? No, probably not. And no, Ted, I'm not worried. All I want at this point is that named T1 partner because then I can relax knowing I'm not crazy wasting time and money here. I've remained invested here because I know if they succeed in doing all this, this company has a very high likelihood of being a very profitable business that will be around for a long time.

PS - When I say 'optimizing a modulator PIC' above, I mostly mean optimizing manufacturing processes. Just FYI. I think a great deal of work over the last 12-18 months has revolved around the encapsulation process with ALD.