What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-09 compared with 2023-08-09 · 251 added, 226 removed, 539 unchanged (47% of the section changed)

2 unchanged sentences

FINANCIAL STATEMENTS

JUNE 30, 2023

SEPTEMBER 30, 2023

Balance Sheets

3 unchanged sentences

Notes to Financial Statements

June 30, 2023

September 30, 2023

December 31, 2022

6 unchanged sentences

Intangible assets - net

Operating Lease - Right of Use - Building

Operating Lease - Right

of Use - Building

TOTAL OTHER ASSETS

3 unchanged sentences

Accrued expenses

Accounts payable and accrued expenses - related parties

Accounts payable and accrued

expenses - related parties

Deferred revenue

Deferred lease liability

Operating lease liability

lease liability

TOTAL CURRENT LIABILITIES

1 unchanged sentence

Deferred lease liability

Operating lease liability

lease liability

TOTAL LONG TERM LIABILITIES

1 unchanged sentence

STOCKHOLDERS' EQUITY

Preferred stock, $ 0.001 par value, 1,000,000 authorized, No shares issued or outstanding

Common stock $ 0.001 par value, 250,000,000 authorized, 116,184,724 and 112,882,793 issued and outstanding at June 30, 2023 and December 31, 2022

Preferred stock, $ 0.001 par value,

1,000,000 authorized, No shares issued or outstanding

Common stock $ 0.001 par value,

250,000,000 authorized, 116,683,977 and 112,882,793 issued and outstanding at September 30, 2023 and December 31, 2022

Additional paid-in-capital

8 unchanged sentences

STATEMENTS OF COMPREHENSIVE LOSS

THE THREE MONTHS AND SIX MONTHS ENDING JUNE 30, 2023 AND 2022

THE THREE MONTHS AND NINE MONTHS ENDING SEPTEMBER 30, 2023 AND 2022

For the Three

4 unchanged sentences

Months Ending

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

COST AND EXPENSE

20 unchanged sentences

STATEMENT OF STOCKHOLDERS’

SIX-MONTH PERIOD ENDED JUNE 30, 2023

NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

BALANCE AT DECEMBER 31, 2022

10 unchanged sentences

Deferred compensation

Net loss for the six months ending June 30, 2023

Net loss for the nine months ending September 30, 2023

( 16,098,356 )

BALANCE AT JUNE 30, 2023 (UNAUDITED)

BALANCE AT SEPTEMBER 30, 2023 (UNAUDITED)

$ 158,731,989

1 unchanged sentence

$ ( 122,931,717 )

SIX-MONTH PERIOD ENDED JUNE 30, 2022

NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2022

BALANCE AT DECEMBER 31, 2021

9 unchanged sentences

Deferred compensation

Net loss for the six months ending June 30, 2022

Net loss for the nine months ending September 30, 2022

( 12,161,742 )

BALANCE AT JUNE 30, 2022 (UNAUDITED)

BALANCE AT SEPTEMBER 30, 2022 (UNAUDITED)

$ 130,654,002

3 unchanged sentences

OF STOCKHOLDERS’ EQUITY

THREE-MONTH PERIOD ENDED JUNE 30, 2023

BALANCE AT MARCH 31, 2023 (UNAUDITED)

THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

BALANCE AT JUNE 30, 2023 (UNAUDITED)

$ 154,946,488

7 unchanged sentences

Options issued for services

Restricted stock awards issued for future services

Deferred compensation

Net loss for the three months ending June 30, 2023

Net loss for the three months ending September 30, 2023

( 5,164,591 )

BALANCE AT JUNE 30, 2023 (UNAUDITED)

BALANCE AT SEPTEMBER 30, 2023 (UNAUDITED)

$ 158,731,989

1 unchanged sentence

$ ( 122,931,717 )

THREE-MONTH PERIOD ENDED JUNE 30, 2022

BALANCE AT MARCH 31, 2022 (UNAUDITED)

THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2022

BALANCE AT JUNE 30, 2022 (UNAUDITED)

$ 125,040,332

4 unchanged sentences

Exercise of options

Exercise of warrants

Options issued for services

Deferred compensation

Net loss for the three months ending June 30, 2022

Net loss for the three months ending September 30, 2022

( 4,803,383 )

BALANCE AT JUNE 30, 2022 (UNAUDITED)

BALANCE AT SEPTEMBER 30, 2022 (UNAUDITED)

$ 130,654,002

6 unchanged sentences

Months Ending

June 30, 2023

June 30, 2022

September 30, 2023

September 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

1 unchanged sentence

$ ( 12,161,742 )

Adjustment to reconcile net loss to net cash used in operating activities

Adjustments to reconcile net loss to net cash used in operating activities

Stock options issued for services

21 unchanged sentences

Purchase of property and equipment

( 1,813,813 )

( 1,171,530 )

Loan repayment

1 unchanged sentence

Net cash used in investing activities

( 1,386,164 )

( 1,807,415 )

CASH FLOWS FROM FINANCING ACTIVITIES

8 unchanged sentences

Supplemental Disclosure of Non-cash investing and financing activities :

Amended Operating Lease - Right of Use - Building and Operating lease liability

Amended Operating Lease - Right of Use - Building and Operating

lease liability

See accompanying notes to these financial statements.

1 unchanged sentence

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 1- NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

15 unchanged sentences

The interim operating results

for the three and six months ending June 30, 2023 may not be indicative of operating results expected for the full year.

for the three and nine months ending September 30, 2023 may not be indicative of operating results expected for the full year.

Nature of Business

25 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 1- NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT

31 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 1- NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT

1 unchanged sentence

Loss Per Share

The Company follows FASB ASC

260, “Earnings per Share”, resulting in the presentation of basic and diluted earnings per share.

Because the Company reported

a net loss in 2023 and 2022, common stock equivalents, including stock options and warrants were anti-dilutive;

therefore, the amounts

reported for basic and dilutive loss per share were the same.

Company follows FASB ASC 260, “Earnings per Share”, resulting in the presentation of basic and diluted earnings per share.

Because the Company reported a net loss in 2023 and 2022, common stock equivalents, including stock options and warrants were anti-dilutive;

therefore, the amounts reported for basic and dilutive loss per share were the same.

Comprehensive

5 unchanged sentences

Recently Issued Accounting Pronouncements Not Yet

As of June 30, 2023, there are no recently issued accounting standards

As of September 30, 2023, there are no recently issued accounting standards

not yet adopted which would have a material effect on the Company’s financial statements.

Recently Adopted Accounting Pronouncements

As of June 30, 2023 and for the period then ended,

As of September 30, 2023 and for the period then ended,

there are no recently adopted accounting standards that have a material effect on the Company’s financial statements.

7 unchanged sentences

the rate at which we can, directly

or through arrangements with original equipment manufacturers, introduce and sell products incorporating our polymer materials technology;

or through arrangements with original equipment manufacturers, introduce and sell products incorporating our polymer materials

the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;

market acceptance

of our products and competing technological developments;

and our ability to establish cooperative development, joint venture and licensing

arrangements.

We expect that we will incur approximately $ 1,640,000 of expenditures per month over the next 12 months.

Our current cash position enables us to finance our operations through February 2025.

On February 28, 2023, the Company

entered into a purchase agreement with the institutional investor to sell up to $ 30,000,000 of common stock over a 36-month period (described

Pursuant to the purchase agreement, the Company received $ 677,925 in July and August 2023 and a remaining available amount

of $ 18,218,972 is available to the Company per the agreement.

On December 9, 2022, the Company entered into a sales agreement with an

investment banking company whereby the Company may offer and sell shares of its common stock having an aggregate offering price of up

to $ 35,000,000 from time to time through or to the investment banking company, as sales agent

market acceptance of our products and competing technological developments;

and our ability to establish cooperative development,

joint venture and licensing arrangements.

We expect that we will incur approximately $ 1,750,000 of

expenditures per month over the next 12 months.

Our current cash position enables us to finance our operations through April

On February 28, 2023, the Company entered into a purchase agreement with the institutional investor to sell up

to $ 30,000,000 of

common stock over a 36-month period (described in Note 10).

Pursuant to the purchase agreement, the Company received $ 876,250 in

October and November 2023 and a remaining available amount of $ 16,907,148 is

available to the Company per the agreement.

On December 9, 2022, the Company entered into a sales agreement with an investment

banking company whereby the Company may offer and sell shares of its common stock having an aggregate offering price of up to $ 35,000,000 from

time to time through or to the investment banking company, as sales agent or principal (described in Note 10).

There were no sales

of shares of the Company’s common stock pursuant to the sales agreement in October and November 2023.

The remaining available

amount of $ 33,578,860 is

available to the Company per the agreement.

The Company's first commercial agreement occurred in May 2023 from a material supply and

license agreement that incorporates the Company's patented electro-optic polymer materials for use

in manufacturing photonic devices (described in Note 3).

During October 2023, the licensee requisitioned material under this

Our cash requirements are

expected to increase at a rate consistent with the Company’s path to full commercialization as we expand our activities and

We currently have no debt to service.

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

NOTE 2 – MANAGEMENT’S PLANS (CONTINUED)

or principal ( described

Pursuant to the sales agreement, the Company received $ 734,945 in July and August 2023 and a remaining available

amount of $ 33,578,860 is available to the Company per the agreement.

The Company's first commercial agreement occurred in May 2023 from

a material supply and license agreement that incorporates the Company's patented electro-optic polymer

materials for use in manufacturing photonic devices (described in Note 3).

Our cash requirements are expected to increase at a

rate consistent with the Company’s path to full commercialization as we expand our activities and operations.

We currently have

no debt to service.

SEPTEMBER 30, 2023 AND 2022

NOTE 3 – REVENUE

The Company's first

commercial agreement occurred in May 2023, in the form of a four (4) year material supply and license agreement (the “License Agreement”)

commercial agreement occurred in May 2023, the form of a (4) year material supply and license agreement (the “License Agreement”)

that incorporates the Company's patented electro-optic polymer materials for use in manufacturing photonic devices (the “Licensed

1 unchanged sentence

the License Agreement.

Additional future revenue will be generated from royalties from the licensee’s

sale of Licensed Product that exceed the minimum royalty payments.

The License Agreement is a non-exclusive material supply and license

Additional future revenue will be generated from royalties from the licensee’s sale of Licensed Product that

exceed the minimum royalty payments.

The License Agreement is a non-exclusive material supply and license agreement.

Timing of Revenue Recognition and Contract

1 unchanged sentence

recognized over time commencing with the License Agreement in May 2023.

No revenues were recognized for the three and six month period

ending June 30, 2023 since the licensee did not requisition material as of June 30, 2023.

An up-front licensing fee in the amount of $ 50,000

was paid during the three and six month period ending June 30, 2023 and is recorded in short term liability deferred revenue in the Company’s

balance sheet as of June 30, 2023.

No revenues were recognized for the three and nine month period

ending September 30, 2023 since the licensee did not requisition material as of September 30, 2023.

An up-front licensing fee in the amount

of $ 50,000 was paid during the nine month period ending September 30, 2023 and is recorded in short term liability deferred revenue in

the Company’s balance sheet as of September 30, 2023.

Contract balances

8 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 3 – REVENUE (CONTINUED)

A roll forward of contract balances is

not disclosed since there were no contracts as of December 31, 2022.

Assets Recognized for the Costs to

7 unchanged sentences

The loan and interest were repaid in February and March 2023.

recorded $ 0 and $ 11,125 of interest income for the three and six months ended June 30, 2023 and used the average exchange rate for the

conversion of the EUR denominated interest income for the period.

recorded $ 0 and $ 11,125 of interest income for the three and nine months ended September 30, 2023 and used the average exchange rate for

the conversion of the EUR denominated interest income for the period.

NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

1 unchanged sentence

Schedule of prepaid expenses and other current assets

June 30, 2023

September 30, 2023

December 31, 2022

Investor relations

Deposit for equipment

Prototype devices

Lease incentive receivable

Investor relations

Deposit for equipment

Loan interest receivable

3 unchanged sentences

Schedule of property and equipment

June 30, 2023

September 30, 2023

December 31, 2022

5 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 6 – PROPERTY AND EQUIPMENT (CONTINUED)

Depreciation expense for the six months ending June

Depreciation expense for the nine months ending September

30, 2023 and 2022 was $ 734,798 and $ 699,423 .

Depreciation expense for the three months ending June 30, 2023 and 2022 was $ 236,419 and

During the three and six months ending June 30, 2023, the Company sold equipment for proceeds of $ 590 and a loss of $ 581 .

the three and six months ending June 30, 2022, the Company did no t retire or sell property and equipment.

Depreciation expense for the three months ending September 30, 2023 and 2022 was $ 242,454

and $ 246,507 .

During the nine months ending September 30, 2023, the Company sold equipment for proceeds of $ 590 and a loss of $ 581 .

the three and nine months ending September 30, 2022, the Company retired $ 70,963 of leasehold improvements.

NOTE 7 – INTANGIBLE ASSETS

13 unchanged sentences

Schedule of patents

June 30, 2023

September 30, 2023

December 31, 2022

Accumulated amortization

Intangible assets - net

Amortization expense for the six months ending June

Total intangible assets

Amortization expense for the nine months ending September

30, 2023 and 2022 was $ 62,703 and $ 58,862 .

Amortization expense for the three months ending June 30, 2023 and 2022 was $ 19,351 and $ 21,554 .

There were no patent costs written off for the three and six months ending June 30, 2023 and 2022.

Amortization expense for the three months ending September 30, 2023 and 2022 was $ 24,000 and

There were no patent costs written off for the three and nine months ending September 30, 2023 and 2022.

NOTE 8 – LEASES

3 unchanged sentences

The term of the

lease is sixty one ( 61 )

months, beginning on November

1, 2017 and ending on November

During January 2022, the term was extended for an additional twenty-four ( 24 )

lease was sixty one ( 61 ) months, beginning on November 1, 2017 and ending on November 30, 2022 .

During January 2022, the term

was extended for an additional twenty-four ( 24 ) months.

Base rent for the first year of the lease term is approximately

with an increase in annual base rent of approximately 3 %

in each subsequent year of the lease term.

As specified in the lease, the Company paid the landlord (i) all base rent for the

period November 1, 2017 and ending on October 31, 2019, in the sum of $ 347,045 ;

and (ii) the estimated amount of tenant’s proportionate share of operating expenses for the same period in the sum of $ 186,293 .

Commencing on November 1, 2019, monthly installments of base rent and one-twelfth of landlord’s estimate of tenant’s

proportionate share of annual operating expenses shall be due on the first day of each calendar month.

$ 168,824 , with an increase in annual base rent of approximately 3 % in each subsequent year of the lease term.

As specified in

the lease, the Company paid the landlord (i) all base rent for the period November 1, 2017 and ending on October 31, 2019, in the

sum of $ 347,045 ;

and (ii) the estimated amount of tenant’s proportionate share of operating expenses for the same period in

the sum of $ 186,293 .

Commencing on November 1, 2019, monthly installments of base rent and one-twelfth of landlord’s estimate

of tenant’s proportionate share of annual operating expenses shall be due on the first day of each calendar month.

The lease also provides that (i) on November 1, 2019 landlord shall pay the Company for the cost of the cosmetic improvements in the amount

8 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 8 – LEASES (CONTINUED)

3 unchanged sentences

The minimum lease payments do not include common area annual expenses which are

considered to be nonlease components.

considered to be non-lease components.

As of January 1, 2019 the operating lease right-of-use

16 unchanged sentences

There are no other material operating leases.

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

NOTE 8 – LEASES (CONTINUED)

The Company is obligated under the Amended Lease for

5 unchanged sentences

( 1,504,345 )

Rent expense amounting to $ 75,556 and $ 25,185 is included

in research and development and general and administrative expenses for the six months ended June 30, 2023.

Rent expense amounting to

$ 69,197 and $ 23,066 is included in research and development and general and administrative expenses for the six months ended June 30,

Rent expense amounting to $ 39,414 and $ 13,138 is included in research and development and general and administrative expenses for

the three months ended June 30, 2023.

Rent expense amounting to $ 34,599 and $ 11,533 is included in research and development and general

and administrative expenses for the three months ended June 30, 2022.

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

NOTE 8 – LEASES (CONTINUED)

Rent expense amounting to $ 160,660 and $ 53,553 is

included in research and development and general and administrative expenses for the nine months ended September 30, 2023.

amounting to $ 103,796 and $ 34,599 is included in research and development and general and administrative expenses for the nine months

ended September 30, 2022.

Rent expense amounting to $ 85,104 and $ 28,368 is included in research and development and general and administrative

expenses for the three months ended September 30, 2023.

Rent expense amounting to $ 34,599 and $ 11,533 is included in research and development

and general and administrative expenses for the three months ended September 30, 2022.

NOTE 9 – INCOME TAXES

There is no income tax benefit for the losses for

the six months ended June 30, 2023 and 2022 since management has determined that the realization of the net deferred tax asset is not

assured and has created a valuation allowance for the entire amount of such benefits.

the nine months ended September 30, 2023 and 2022 since management has determined that the realization of the net deferred tax asset is

not assured and has created a valuation allowance for the entire amount of such benefits.

The Company’s policy is to record interest and

3 unchanged sentences

There were no changes in the Company’s unrecognized

tax benefits during the period ended June 30, 2023.

The Company did not recognize any interest or penalties during 2022 related to unrecognized

tax benefits.

tax benefits during the period ended September 30, 2023.

The Company did not recognize any interest or penalties during 2022 related to

unrecognized tax benefits.

With few exceptions, the U.S.

and state income tax returns filed for the tax years ending on December 31, 2019 and thereafter

are subject to examination by the relevant taxing authorities.

and state income tax returns filed for the tax years ending on December 31, 2019

and thereafter are subject to examination by the relevant taxing authorities.

NOTE 10 – STOCKHOLDERS’ EQUITY

12 unchanged sentences

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 10 – STOCKHOLDERS’ EQUITY (CONTINUED)

11 unchanged sentences

November 20, 2020.

During the period January 2019 through June 30, 2022 the institutional investor purchased 22,337,500 shares of common

stock for proceeds of $ 23,773,924 and the Company issued 772,666 shares of common stock as additional commitment fee, valued at $ 1,575,509 ,

During the period January 2019 through September 30, 2022 the institutional investor purchased 22,337,500 shares of

common stock for proceeds of $ 23,773,924 and the Company issued 772,666 shares of common stock as additional commitment fee, valued at

$ 1,575,509 , fair value, leaving 39,834 in reserve for additional commitment fees.

During the three and six month periods ending June 30, 2023, the

institutional investor did no t purchase any shares of common stock.

All the registered shares under the purchase agreement have been issued

as of June 30, 2023.

During the three and nine month periods ending September

30, 2023, the institutional investor did no t purchase any shares of common stock.

All the registered shares under the purchase agreement

have been issued as of September 30, 2023.

On July 2, 2021, the Company filed a $100,000,000

9 unchanged sentences

shares of common stock are reserved for additional commitment fees to the institutional investor in accordance with the terms of the purchase

During the period October 4, 2021 through June 30, 2023, the institutional investor purchased 3,632,456 shares of common stock

for proceeds of $ 33,000,000 and the Company issued 60,623 shares of common stock as additional commitment fee, valued at $ 694,531 , fair

During the six month period ending June 30, 2023, pursuant to the purchase agreement, the institutional investor purchased 779,945

shares of common stock for proceeds of $ 3,847,307 and the Company issued 7,069 shares of common stock as additional commitment fee, valued

at $ 38,161 , fair value.

During the three month period ending June 30, 2023, pursuant to the purchase agreement, the institutional investor

purchased 304,945 shares of common stock for proceeds of $ 1,347,932 and the Company issued 2,479 shares of common stock as additional

commitment fee, valued at $ 11,735 , fair value, leaving 0 in reserve for additional commitment fees.

All of the registered shares under

the purchase agreement have been issued as of June 30, 2023.

On February 28, 2023, the Company entered

into a purchase agreement with an institutional investor to sell up to $ 30,000,000 of common stock over a 36-month period.

with entering into the purchase agreement, the Company also entered into a registration rights agreement which provides the institutional

investor with certain registration rights related to the shares issued under the purchase agreement.

Pursuant to the purchase agreement,

the Company issued 50,891 shares of common stock to the institutional investor as an initial

During the period October 4, 2021 through September 30, 2023, the institutional investor purchased 3,632,456 shares of common

stock for proceeds of $ 33,000,000 and the Company issued 60,623 shares of common stock as additional commitment fee, valued at $ 694,531 ,

During the nine month period ending September 30, 2023, pursuant to the purchase agreement, the institutional investor purchased

779,945 shares of common stock for proceeds of $ 3,847,307 and the Company issued 7,069 shares of common stock as additional commitment

fee, valued at $ 38,161 , fair value.

During the three month period ending September 30, 2023, the Company did not issue any shares pursuant

to this purchase agreement.

All of the registered shares under the purchase agreement have been issued as of September 30, 2023.

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

SEPTEMBER 30, 2023 AND 2022

NOTE 10 – STOCKHOLDERS’ EQUITY (CONTINUED)

Common Stock Options and Warrants (Continued)

commitment fee valued at $ 279,391 ,

On February 28, 2023, the Company entered

into a purchase agreement with an institutional investor to sell up to $ 30,000,000

of common stock over a 36-month period.

Concurrently with entering into the purchase agreement, the Company also entered into

a registration rights agreement which provides the institutional investor with certain registration rights related to the shares issued

under the purchase agreement.

Pursuant to the purchase agreement, the Company issued 50,891

shares of common stock to the institutional investor as an initial commitment fee valued at $ 279,391 ,

fair value, and 101,781

1 unchanged sentence

of the purchase agreement.

During the period February 28, 2023 through June 30, 2023, the institutional investor purchased 1,795,455

During the period February 28, 2023 through September 30, 2023, the institutional investor purchased 1,970,455

shares of common stock for proceeds of $ 12,216,602

1 unchanged sentence

shares of common stock as additional commitment fee, valued at $ 290,176 ,

During the three month period ending June 30, 2023, pursuant to the purchase agreement, the institutional investor purchased

During the three month period ending September 30, 2023, pursuant to the purchase agreement, the institutional investor purchased

shares of common stock for proceeds of $ 1,113,500

1 unchanged sentence

shares of common stock as additional commitment fee, valued at $ 25,302

During July and August 2023, pursuant to the purchase agreement, the institutional investor purchased 100,000

During October and November 2023, pursuant to the purchase agreement, the institutional investor purchased 200,000

shares of common stock for proceeds of $ 876,250

2 unchanged sentences

fair value, leaving 57,362

in reserve for additional for additional commitment fees.

On December 9, 2022, the Company entered into a sales

agreement with an investment banking company.

In accordance with the terms of this sales agreement, the Company may offer and sell shares

of its common stock having an aggregate offering price of up to $ 35,000,000 from time to time through or to the investment banking company,

as sales agent or principal.

Sales of shares of the Company’s common stock, if any, may be made by any method deemed to be an “at

the market offering”.

The sales agent is entitled to compensation under the terms of the sales agreement at a commission rate equal

to 3 % of the gross proceeds of the sales price of common stock that they sell.

During the six and three month period ending June 30,

2023, pursuant to the sales agreement, the investment banking company sold 75,000 shares of its common stock for proceeds of $ 643,529

after a payment of the commission in the amount of $ 19,903 to the investment banking company.

During July and August 2023, pursuant to

the sales agreement, the investment banking company sold 97,115 shares of its common stock for proceeds of $ 734,945 after a payment of

the commission in the amount of $ 22,731 to the investment banking company.

in reserve for additional commitment fees.

On December 9, 2022, the Company entered into a

sales agreement with an investment banking company.

In accordance with the terms of this sales agreement, the Company may offer and

sell shares of its common stock having an aggregate offering price of up to $ 35,000,000 from

time to time through or to the investment banking company, as sales agent or principal.

Sales of shares of the Company’s

common stock, if any, may be made by any method deemed to be an “at the market offering”.

The sales agent is entitled to

compensation under the terms of the sales agreement at a commission rate equal to 3 %

of the gross proceeds of the sales price of common stock that they sell.

During the nine month period ending September 30, 2023,

pursuant to the sales agreement, the investment banking company sold 172,115 shares

of the Company’s common stock for proceeds of $ 1,378,474 after

a payment of the commission in the amount of $ 42,634 to

the investment banking company.

During the three month period ending September 30, 2023, pursuant to the sales agreement, the

investment banking company sold 97,115 shares

of the Company’s common stock for proceeds of $ 734,945 after

a payment of the commission in the amount of $ 22,731 to

the investment banking company.

During October and November 2023, pursuant to the sales agreement, the investment banking company

did not sell any shares of the Company’s common stock.

Restricted Stock Awards

6 unchanged sentences

2,766 shares beginning April 1, 2023.

Upon the occurrence of a Change in Control, 100% of the unvested Restricted Stock shall vest as

of the date of the Change in Control.

On August 1, 2023, the Compensation Committee of

the Board of Directors approved a grant totaling 6,238

Restricted Stock Awards to the Company’s outside director.

The new RSA had a grant date fair value of $ 6.68

which shall be amortized on a straight-line basis over the vesting period into director’s compensation expenses within the

Consolidated Statement of Comprehensive Loss.

Such RSA was granted under the 2016 Equity Incentive Plan (“2016 Plan”).

shares from this grant vested on August 1, with the remaining vesting in 28 equal monthly installments in total of 215

shares beginning September 1, 2023.

Upon the occurrence of a Change in Control, 100% of

the unvested Restricted Stock shall vest as of the date of the Change in Control.

Upon vesting, the restrictions on the shares lapse.

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION

8 unchanged sentences

(“Non-Statutory Stock Options”).

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION (CONTINUED)

Effective June 24, 2016, the 2007 Plan was terminated.

As of June 30, 2023, options to purchase 2,614,000 shares of common stock have been issued and are outstanding.

As of September 30, 2023, options to purchase 2,473,000 shares of common stock have been issued and are outstanding.

During 2016, the Board of Directors of the Company

8 unchanged sentences

and awards of restricted stock units are authorized for issuance.

As of June 30, 2023, options to purchase 5,937,638 shares of common

As of September 30, 2023, options to purchase 6,022,307 shares of common

stock have been issued and are outstanding, 129,174 restricted shares of common stock have been awarded under the 2016 Plan.

As of September

30, 2023, 5,497,284 shares of common stock remain available for grants under the 2016 Plan.

16 unchanged sentences

expected life is based on the legal contractual life of options.

As of June 30, 2023, there was $ 4,896,489 of unrecognized

compensation expense related to non-vested market-based share awards that is expected to be recognized through April 2026.

As of September 30, 2023, there was $ 3,866,879 of

unrecognized compensation expense related to non-vested market-based share awards that is expected to be recognized through September

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION (CONTINUED)

Share-based compensation was recognized as follows:

2 unchanged sentences

Months Ending

June 30, 2023

June 30, 2022

September 30, 2023

September 30, 2022

2007 Employee Stock Option Plan

2 unchanged sentences

Total share-based compensation

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION (CONTINUED)

The following tables summarize all stock option and

warrant activity of the Company during the six months ended June 30, 2023:

warrant activity of the Company during the nine months ended September 30, 2023:

Schedule of non-qualified stock options and warrants outstanding and exercisable

Non-Qualified

Stock Options and Warrants Outstanding and Exercisable

Weighted Average

Exercise Price

Outstanding, December 31, 2022

3 unchanged sentences

$ 0.67 - $ 5.22

Outstanding, June 30, 2023

Outstanding, September 30, 2023

$ 0.51 - $ 16.81

Exercisable, June 30, 2023

Exercisable, September 30, 2023

$ 0.51 - $ 16.81

The aggregate intrinsic value of options and warrants

outstanding and exercisable as of June 30, 2023 was $ 41,420,894 .

outstanding and exercisable as of September 30, 2023 was $ 23,062,130 .

The aggregate intrinsic value is calculated as the difference between

the exercise price of the underlying options and warrants and the closing stock price of $ 4.47 for the Company’s common stock on

June 30, 2023.

During the six month period ending June 30, 2023, 306,285 options were exercised for proceeds of $ 306,301 .

During the six

month period ending June 30, 2023, 150,000 warrants were exercised for proceeds of $ 150,500 .

September 30, 2023.

During the nine month period ending September 30, 2023, 504,408 options were exercised for proceeds of $ 467,324 .

During the nine month period ending September 30, 2023, 169,000 warrants were exercised for proceeds of $ 164,750 .

Schedule of non-qualified stock options and warrants outstanding, by exercise price range

Non-Qualified Stock Options and

Warrants Outstanding

Number Outstanding Currently Exercisable

Weighted Average Remaining

Weighted Average Exercise Price of Options and Warrants

Exercise Prices

at June 30, 2023

Non-Qualified Stock Options and Warrants Outstanding

Range of Exercise Prices

Number Outstanding Currently Exercisable at September

Weighted Average Remaining Contractual Life

Average Exercise Price of Options and Warrants Currently Exercisable

$ 0.51 - $ 16.81

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION (CONTINUED)

The fair value of restricted stock awards is estimated

by the market price of the Company’s common stock at the date of grant.

Restricted stock activity during the six month period ending

June 30, 2023 is as follows:

Restricted stock activity during the nine month period ending

September 30, 2023 is as follows:

Schedule of nonvested restricted stock units activity

Restricted Stock Awards

Nine month period ended

September 30, 2023

Weighted Average

2 unchanged sentences

Non-vested, end of period

LIGHTWAVE LOGIC, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2023 AND 2022

NOTE 11 – STOCK BASED COMPENSATION (CONTINUED)

Restricted stock awards are being amortized to expense

over the vesting period.

As of June 30, 2023 and 2022, the unamortized value of the restricted stock awards was $ 231,803 and $ 0 , respectively.

As of September 30, 2023 and 2022, the unamortized value of the restricted stock awards was $ 496,736 and $ 0 ,

respectively.

NOTE 12 – RELATED PARTY

At June 30, 2023 the Company had a legal accrual to

related party of $ 83,400 , director fees and travel expense accruals in the amount of $ 45,465 , travel and office expense accruals of officers

in the amount of $ 36,741 , consulting expense, fees and travel expense accruals of advisory board members in the amount of $ 29,773 and

accounting service fee accrual and expense reimbursements to related parties of $ 20,669 .

At December 31, 2022 the Company had a legal

accrual to a related party of $ 60,577 , fees and consulting expense accruals of advisory board members in the amount of $ 18,000 , fees to

directors in the amount of $ 13,500 , travel and office expense accruals of officers in the amount of $ 4,859 and accounting service fee

accrual and expense reimbursement to related parties of $ 3,233 .

At September 30, 2023 the Company had a legal accrual

to related party of $ 99,500 , travel and office expense accrual of officers in the amount of $ 10,550 , accounting service fee accrual and

expense reimbursements to related parties of $ 7,962 offset by prepaid director operations committee fees in the amount of $ 26,400 .

December 31, 2022 the Company had a legal accrual to a related party of $ 60,577 , fees and consulting expense accruals of advisory board

members in the amount of $ 18,000 , fees to directors in the amount of $ 13,500 , travel and office expense accruals of officers in the amount

of $ 4,859 and accounting service fee accrual and expense reimbursement to related parties of $ 3,233 .

NOTE 13 – RETIREMENT PLAN

1 unchanged sentence

all eligible employees beginning November 15, 2013.

For the six months ending June 30, 2023 and 2022, a contribution of $ 32,858 and $ 27,087

was charged to expense for all eligible non-executive participants.

For the three months ending June 30, 2023 and 2022, a contribution

of $ 17,882 and $ 13,999 was charged to expense for all eligible non-executive participants.

For the nine months ending September 30, 2023 and 2022, a contribution of $ 51,413

and $ 40,585 was charged to expense for all eligible non-executive participants.

For the three months ending September 30, 2023 and 2022,

a contribution of $ 18,554 and $ 13,498 was charged to expense for all eligible non-executive participants.

14 – SUBSEQUENT EVENTS

During October 2023, the licensee

requisitioned material under the material supply and license agreement that incorporates the Company’s patented electro-optic polymer

materials for use in manufacturing photonic devices.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements