Lightwave Logic (NASDAQ:LWLG) said its second-quarter efforts focused on advancing its electro-optic polymer technology from development toward commercialization, with the company expanding its number of Stage 3 customer programs to five and expecting wafer deliveries from two foundry programs in August.
President and Chief Executive Officer Yves LeMaitre said the company is targeting the growing need for higher-bandwidth, lower-power optical interconnects in artificial intelligence infrastructure. He said larger and denser AI clusters require networks capable of moving data efficiently among processors, while copper faces practical limits at longer distances and power consumption becomes a larger concern.
Foundry Programs Advance
LeMaitre said Lightwave Logic has three dedicated foundry runs underway and expects to receive two sets of wafers during August. A third foundry is expected to deliver wafers in the fourth quarter. The company is also preparing a dedicated run with another foundry and is working toward a tape-out later this year.
The company’s foundry ecosystem includes GlobalFoundries, Tower Semiconductor, SilTerra and a fourth unnamed partner. LeMaitre said maintaining multiple foundry relationships gives customers more manufacturing options and supports the long-term scalability of the platform.
After wafers arrive, Lightwave Logic will conduct back-end processing that includes polymer deposition, encapsulation, device preparation and characterization testing. The company will work with customers to determine whether devices meet performance requirements and identify any needed changes.
LeMaitre said the goal of the foundry work extends beyond demonstrating high-bandwidth slot modulators. The company and its partners are working to refine manufacturing processes, improve yield and device performance, and make polymer integration more repeatable as programs move from prototype runs toward qualification and potential volume production.
He also cited capacity and process-development pressures at silicon photonics foundries, which are managing rising demand, investments in capacity and the introduction of novel materials. In the question-and-answer portion of the call, LeMaitre said the company is conducting its back-end-of-line integration work internally in Colorado but is engaging external partners to support high-volume production.
Stage 3 Customer Programs Reach Five
During the quarter, an unnamed Fortune Global 500 company entered Stage 3 of Lightwave Logic’s design-win process, bringing the total number of Stage 3 programs to five. The new program is initially focused on scale-across transceivers using coherent modulation.
LeMaitre said scale-across networking is becoming increasingly important as operators connect campuses located several miles to tens of miles apart into what he described as a virtual data center. Such deployments require ultra-high-speed optical links, dense wavelength division multiplexing and coherent modulation.
According to LeMaitre, Stage 3 programs involve customer engineering resources working on prototypes, foundry runs, device processing and testing. The company expects wafer deliveries, back-end processing and chip testing to be key near-term milestones, with the fourth quarter expected to be active for its engineering and customer-facing technical teams.
Lightwave Logic is also pursuing commercial arrangements alongside its technical work. LeMaitre said one material supply and licensing agreement is already in place, while negotiations are under way for another agreement with the customer furthest along toward productization. The company’s goal for that program is to begin volume production in the second half of 2027.
He cautioned that foundry schedules, design changes, packaging and system testing can affect program timing. In response to a question about customers in earlier stages, LeMaitre said the company’s Stage 1 and Stage 2 pipeline remains strong, but that it has intentionally concentrated technical resources on key customer programs and chip production.
Second-Quarter Financial Results
Chief Financial Officer Fred Graffam, who recently joined the company, reported second-quarter revenue of approximately $33,000, compared with $26,000 in the prior-year period. As of June 30, Lightwave Logic had approximately $100,000 in deferred revenue to be recognized upon reaching certain milestones under an existing joint development agreement.
- Net loss was $6.6 million, or $0.04 per share, compared with a net loss of approximately $5 million, or $0.04 per share, in the second quarter of 2025.
- Research and development expense was approximately $3.9 million, compared with $2.6 million a year earlier.
- General and administrative expense was approximately $3.4 million, compared with approximately $2.3 million in the prior-year quarter.
- Cash equivalents and marketable securities totaled $95.9 million at June 30.
- Cash used in operating activities was approximately $9.9 million in the first six months of 2026, compared with $7.3 million in the comparable 2025 period.
- Capital expenditures totaled approximately $1.5 million during the first six months of 2026.
Graffam said spending reflected investments in device performance, reliability, qualification activities, intellectual property, foundry integrations, manufacturing readiness, customer engagement and organizational infrastructure. The company increased headcount by 25% sequentially during the quarter, with hiring focused on manufacturing scale-up, test engineering and commercial development.
Lightwave Logic also invested in equipment and clean-room expansion to increase Perkinamine manufacturing capability and quality-control processes, Graffam said. LeMaitre said the company is training staff and commissioning equipment at its Denver operation as it prepares for a potential production ramp beginning in 2027.
Graffam said the company had no debt and believed its roughly $96 million in cash and marketable securities provided financial flexibility to pursue its current organic growth strategy and planned commercialization activities.
About Lightwave Logic (NASDAQ:LWLG)
Lightwave Logic, Inc (NASDAQ: LWLG) is a U.S.-based photonics company focused on the development and commercialization of proprietary electro‐optic polymer materials and devices for high-speed optical communications. The company’s core technology platform centers on organic electro-optic polymers that offer low drive voltage, high modulation bandwidth and integration flexibility, enabling next-generation optical interconnects for data centers, telecommunications and emerging photonic computing architectures.
Lightwave Logic’s product pipeline includes modulators, waveguides and integrated photonic components designed to outperform traditional lithium-niobate and silicon-based solutions in terms of size, power consumption and ease of integration.
