Lightwave Logic (LWLG) investor relations material

Executive summary

• Transitioned from technology development to commercialization, expanding to five Stage 3 customer programs and advancing multiple foundry engagements, with first wafer deliveries expected in August 2026.

• Focused on enabling high-speed, low-power AI and data center applications using silicon photonics and Perkinamine electro-optic polymers.

• Five Fortune Global 500 companies now in advanced prototype stage, with about 20 companies in the commercial pipeline.

• Dual revenue model: direct material sales and IP licensing, aiming for 60%+ gross margins at scale.

• Customer pipeline strengthened, with active negotiations for additional material supply and licensing agreements.

Financial highlights

• Q2 2026 revenue was $33,000, up 28% year-over-year from $26,000.

• Net loss was $6.6 million ($0.04 per share), compared to $5 million ($0.04 per share) in the prior year.

• Research and development expenses rose to $3.9 million from $2.6 million year-over-year; general administrative expenses increased to $3.4 million from $2.3 million.

• Cash and equivalents at $95.9 million, up 39% from $69 million at year-end 2025.

• Cash used in operating activities was $9.9 million for the first six months, up from $7.3 million in the prior year period.

Outlook and guidance

• Expecting a busy Q4 2026 with wafer deliveries, back-end processing, and customer testing milestones.

• Advancing Stage 3 programs toward qualification and Stage 4, aiming to convert technical engagements into commercial agreements.

• Preparing for a 2027 production ramp and expanding foundry ecosystem, with operational ramp-up and Perkinamine production expansion underway.

• Confident current cash balance supports organic growth strategy and planned production ramp, assuming no major timeline changes.

• Continuing performance optimization at 200G, 400G per lane and beyond.