Lightwave Logic, Inc. Q4 FY2025 earnings call

Yves started by thanking shareholders, employees, and partners, noting 2025 was an execution year focusing on material science, reliability engineering, foundry integration, and customer advancement. The Perkinamine electro-optic polymer platform showed positive attributes. They strengthened reliability data sets, advanced back-end process integration, deepened foundry ecosystem engagement, with 3 programs advanced to Stage 3 in 2025 and a fourth Fortune Global 500 customer added in 2026. Also discussed industry context with silicon photonics growing, Lightwave Logic's strategy to enhance silicon photonics, and back-end process ramp-up plans.

For the full year 2025, revenue was approximately $237,000, primarily from licensing and nonrecurring engineering compared to $96,000 in 2024. Net loss was approximately $20.3 million or a loss of $0.16 per share, an improvement from $22.5 million or a loss of $0.19 per share in 2024. Our R&D investment was approximately $11.5 million compared to $16.8 million in the prior year, and our G&A expense was approximately $9.5 million compared to $6.4 million in the prior year.

2026 revenue is expected to be driven primarily by material supply and NRE activity. Volume production and licensing revenues are not anticipated until 2027 at the earliest. In December 2025, completed a public offering raising ~$32.8 million in net proceeds, and in January 2026 exercised over-allotment portion adding ~$4.9 million in cash, funded beyond December 2027 based on operating plan.

Matters discussed are subject to known and unknown risks and uncertainties, detailed in most recent Form 10-K and 10-Q

Q: company presentations for nearly the past 12 months have indicated that the back end of line process is ready for transfer to a foundry. What specific milestones remain to complete the technology transfer and is transfer dependent on PIC completion with Stage 3 partners and progression to Stage 4? Also, has Lightwave Logic achieved acceptable yields with its wafer scale pulling and encapsulation of modulators?

A: Yes. As I indicated earlier, we intend to proceed with our back end of line process and capacity expansion in Denver to support prototyping and final product qualification. We're also continuing process development in Denver to match the semiconductor industry road map, including migration to, for instance, large or larger wafer sizes. In parallel, we intend in 2026 to bring 1 or 2 external foundry partners to bring high-volume manufacturing scale to our back-end of line process.

Q: Are you able to provide guidance on production volume requirements for 2026? And can you comfortably meet that requirement?

A: Yes, we are planning for success. So we have made aggressive assumptions related to our ability to win share in 2027 and 2028 in order to determine the volume production of Perkinamine as well as the floor capacity, the number of technicians and the production equipment that will be required at our facility in Englewood, Colorado, close to Denver. My experience in the AI data center market shows that immediately after closing a design win, the ability to ramp-up production is so critical. So you do not want to be caught flat-footed when the time comes for a significant increase of polymer production. We have a good model of yield capacity and equipment required to achieve our production target in 2027.

Q: Can shareholders expect to see an EOP modulator-based pluggable transceiver prototype completed this year?

A: Well, obviously, our customers are working diligently at bringing silicon photonics PICs to the market in the form of photonics engines for transceivers or CPO. We participate to these programs of suppliers of materials and PDK, but we do not control the full transceiver program. So we will continue to update you on our progress towards Stage 4 throughout 2026.

Q: Regarding the products we are working on with Tier 1 partners, when a product is finalized or rolled out, do we expect to see joint press releases? Or how can shareholders expect to be updated regarding their progression?

A: Well, as we did hopefully today, I mean, we will provide visibility to our shareholders on our progress through quarterly financial and business update calls like the one today. Now when it comes to endorsement of Lightwave Logic by customers, it is in the hand of our customers, and they will decide if and when to issue press release or public announcement.

Q: Regarding the SilTerra announcement, what specific performance metrics will be validated for the mid-2026 device characterization? Were there any limitations or yield constraints identified during the early 2026 tape-out? And can you talk about the announcement and how it fits into your broader foundry strategy?

A: Yes. Thanks for that question. I mean this tape-out is a really important milestone that will validate both a number of key design and performance parameters for 200G and 400G modulators, but it will also confirm or help confirm optimal foundry process and equipment capabilities. And most of the test results for this specific tape-out at SilTerra are expected by mid-2026