What changed in this filing

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Item 1. Business

2024-02-29 compared with 2023-03-01 · 535 added, 362 removed, 1085 unchanged (45% of the section changed)

Lightwave Logic, Inc.

is a development

stage company moving toward commercialization of next generation electro-optic photonic devices made on its P 2 IC™ technology

platform which we have detailed as:

is a technology company focused on the development of next generation electro-optic photonic devices made on its P 2 IC™

technology platform which we have detailed as:

1) Polymer Stack™, 2) Polymer Plus™, and 3) Polymer Slot™.

Our unique polymer technology

platform uses in-house proprietary high-activity and high-stability organic polymers.

Electro-optical devices called modulators convert

data from electric signals into optical signals for multiple applications.

Our differentiation at the modulator

device level is in higher speed, lower power consumption, simplicity of manufacturing, small footprint (size), and reliability.

demonstrated higher speed and lower power consumption in packaged devices, and during 2022, we continued to make advances in techniques

to translate material properties to efficient, reliable modulator devices with commercial foundries.

We are currently focused on testing

and demonstrating the simplicity of manufacturability and reliability of our devices, including in conjunction with the silicon photonics

manufacturing ecosystem.

In 2022 we discussed the addition of several silicon-based foundry partners to help scale in volume our polymer

modulator devices.

Silicon-based foundries are large semiconductor fabrication plants developed for the electronics IC business, that

are now engaging with silicon photonics to increase their wafer throughput.

Partnering with silicon-based foundries not only demonstrates

that our polymer technology can be transferred into standard production lines using standard equipment, it also allows us to efficiently

utilize our capital.

The foundry partnerships will allow us to scale our high-performance polymer optical engines quickly and efficiently.

Our extremely strong and broad patent

portfolio allows us to optimize our business model in three areas:

1) Traditional focus on product development, 2) Patent licensing and

3) Technology transfer to foundries.

We are continually looking to strengthen our patent portfolio both by internal inventions and acquisition

of intellectual property.

We are initially targeting applications

in fiber optic data communications and telecommunications markets and are exploring other applications that include automotive/LIDAR,

sensing, displays etc., for our polymer technology platform.

Our goal is to have our unique polymer technology platform become ubiquitous.

polymer technology platform uses in-house proprietary high-activity and high-stability organic polymers.

Electro-optical devices called

modulators convert data from electric signals into optical signals for multiple applications.

Our differentiation

at the modulator device level is in higher speed, lower power consumption, simplicity of manufacturing, small footprint (size), and reliability.

We have demonstrated higher speed and lower power consumption in packaged devices, and during 2023, we continued to make advances in techniques

to translate our world class material properties to efficient, reliable modulator devices with commercial foundries.

We are currently

focused on testing and demonstrating the simplicity of manufacturability and reliability of our devices, including in conjunction with

the silicon photonics manufacturing ecosystem.

In 2023 we worked with silicon-based foundry partners to help scale in volume our polymer

modulator devices and we received working modulator chips from these foundries.

We have advanced and matured our interactions with our

foundry partners and we continue to receive working modulator chips for prototyping.

Silicon-based foundries are large semiconductor fabrication

plants developed for the electronics IC business, that are now engaging with silicon photonics to increase their wafer throughput.

with silicon-based foundries not only demonstrates that our polymer technology can be transferred into standard production lines using

standard equipment, it also allows us to efficiently utilize our capital.

The foundry partnerships will allow us to scale our high-performance

polymer optical engines quickly and efficiently.

We have now received silicon wafers that range up to 200mm in diameter, which aligns

well with foundry manufacturing.

Our extremely

strong and broad patent portfolio allows us to optimize our business model in three areas:

1) Traditional focus on product development,

2) Patent licensing and 3) Technology transfer to foundries.

We are continually looking to strengthen our patent portfolio both by internal

inventions and acquisition of intellectual property.

initially targeting applications in fiber optic data communications and telecommunications markets and are exploring other applications

that include automotive/LIDAR, sensing, displays etc., for our polymer technology platform.

Our goal is to have our unique polymer technology

platform become ubiquitous across many market verticals over and above the optical fiber optic communications markets.

Artificial Intelligence (G-AI) has been integrating deeper within our daily activities with applications to make us more efficient and

possibly smarter.

The impact on the internet is huge, and the internet is based on an optical network that utilizes data centers to route

and switch traffic or information to and from destinations.

Data centers are being upgraded today in a fashion that the industry has not

seen before with significant investments of capital.

The expected demands of increased traffic, information, and data driven by G-AI is

changing the way the internet is being operated.

G-AI is now creating new and interesting market opportunities to upgrade the internet.

Three of these opportunities are important today:

density, speed, and low power and these are very well aligned with our high performance

electro-optic polymers modulator platform.

We are designing high performance polymer modulator optical engines to support the rise and

growth of G-AI as it generates more information that will travel through the internet and optical network.

While we are not directly a

G-AI company designing electronic processors, we do see immediate benefits of enabling higher levels of information to cross the internet

using our optical polymer modulator platform.

Unless the context otherwise requires,

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intended to and does not imply a relationship with, or endorsement or sponsorship of us by, any of these other parties.

Commencement of Commercial Operations

We commenced commercial operations

Presently, our commercial operations consist of a material supply license agreement

to provide Perkinamine ® chromophore materials for polymer based photonic devices and photonic integrated circuits

The license agreement represents tangible commercial progress for electro-optic polymers as part of our Company's business plan.

Our Company is also in various stages of photonic device and materials development and evaluation with potential customers

and strategic partners.

We expect to continue to obtain a revenue stream from technology licensing agreements, and to obtain additional

revenue streams from technology transfer agreements and direct sale of our electro-optic device components.

We have seen increased interest

in our materials during 2023 and we are in discussions on future license agreements.

Materials Development

Our Company designs and synthesizes

organic chromophores for use in its own proprietary electro-optic polymer systems and photonic device designs.

A polymer system

is not solely a material, but also encompasses various technical enhancements necessary for its implementation.

These include host polymers,

poling methodologies, and molecular spacer systems that are customized to achieve specific optical properties.

Our organic electro-optic

polymer systems compounds are mixed into solution form that allows for thin film application.

Our proprietary electro-optic polymers are

designed at the molecular level for potentially superior performance, stability, and cost-efficiency.

We believe our proprietary and unique

polymers have the potential to replace more expensive, higher power consuming, slower-performance materials such as semiconductor modulator

devices that are used in fiber-optic communication networks today.

Our patented and patent pending

molecular architectures are based on a well-understood chemical and quantum mechanical occurrence known as aromaticity .

provides a high degree of molecular stability that enables our core molecular structures to maintain stability under a broad range of

operating conditions.

We expect our patented and patent-pending

optical materials along with trade secrets and licensed materials, to be the core of and the enabling technology for future generations

of optical devices, modules, sub-systems, and systems that we will develop or potentially out-license to electro-optic device manufacturers,

contract manufacturers, original equipment manufacturers, etc.

Our Company contemplates future applications that may address the needs

of semiconductor companies, optical network companies, Web 2.0/3.0 media companies, high performance computing companies, telecommunications

companies, aerospace companies, automotive companies, as well as for example, government agencies.

designs and synthesizes organic chromophores for use in its own proprietary electro-optic polymer systems and photonic

device designs.

A polymer system is not solely a material, but also encompasses various technical enhancements necessary for its implementation.

These include host polymers, poling methodologies, and molecular spacer systems that are customized to achieve specific optical properties.

Our organic electro-optic polymer systems compounds are mixed into solution form that allows for thin film application.

Our proprietary

electro-optic polymers are designed at the molecular level for potentially superior performance, stability, and cost-efficiency.

our proprietary and unique polymers have the potential to replace more expensive, higher power consuming, slower-performance materials

such as semiconductor-based modulator devices that are used in fiber-optic communication networks today.

and patent pending molecular architectures are based on a well-understood chemical and quantum mechanical occurrence known as aromaticity .

Aromaticity provides a high degree of molecular stability that enables our core molecular structures to maintain stability under a broad

range of operating conditions.

our patented and patent-pending optical materials along with trade secrets and licensed materials, to be the core of and the enabling

technology for future generations of optical devices, modules, sub-systems, and systems that we will develop or enable our partners to

fully commercialize.

Examples of our partners include:

electro-optic device manufacturers, contract manufacturers, original equipment manufacturers,

foundries, packaging and assembly manufacturers etc.

Our Company contemplates future applications in market verticals that may address

the needs of semiconductor companies, optical network companies, Web 2.0/3.0 media companies, high performance computing companies, telecommunications

companies, aerospace companies, automotive companies, as well as for example, government agencies and defense entities.

Device Design and Development

Electro-optic Modulators

Our Company designs its own proprietary

electro-optical modulation devices.

Electro-optical modulators convert data from electric signals into optical signals that can then be

transmitted over high-speed fiber-optic cables.

Our modulators are electro-optic, meaning they work because the optical properties of

the polymers are affected by electric fields applied by means of electrodes.

Modulators are key components that are used in fiber optic

telecommunications, data communications, and data centers networks etc., to convey the high data flows that have been driven by applications

such as pictures, video streaming, movies etc., that are being transmitted through the Internet.

Electro-optical modulators are expected

to continue to be an essential element as the appetite and hunger for data increases every year as well as the drive towards lower power

consumption, and smaller footprint (size).

Polymer Photonic Integrated Circuits

Our Company also designs its own

proprietary Photonic Integrated Circuits (otherwise termed a polymer PIC).

A polymer PIC is a photonic device that integrates several

photonic functions on a single chip.

We believe that our technology can enable the ultra-miniaturization footprint needed to increase

the number of photonic functions residing on a semiconductor chip to create a progression like what was seen in the computer integrated

circuits, commonly referred to as Moore’s Law.

One type of integration is to combine several instances of the same photonic functions

such as a plurality of modulators to create a multi-channel polymer PIC.

The number of channels can be varied depending on application.

designs its own proprietary electro-optical modulation devices.

Electro-optical modulators convert data from electric signals into optical

signals that can then be transmitted over high-speed fiber-optic cables.

Our modulators are electro-optic, meaning they work because the

optical properties of the polymers are affected by electric fields applied by means of electrodes.

Modulators are key components that

are used in fiber optic telecommunications, data communications, and data centers networks etc., to convey the high data flows that have

been driven by applications such as pictures, video streaming, movies etc., that are being transmitted through the Internet.

Electro-optical

modulators are expected to continue to be an essential element as the appetite and hunger for data increases every year as well as the

drive towards lower power consumption, and smaller footprint (size).

Polymer Photonic Integrated

Circuits (P 2 IC™)

also designs its own proprietary Photonic Integrated Circuits (otherwise termed a polymer PIC).

A polymer PIC is a photonic device that

integrates several photonic functions on a single chip.

We believe that our technology can enable an ultra-miniaturization footprint that

is needed to increase the number of photonic functions residing on a semiconductor chip.

We see this creating a progression like what

was seen in the computer integrated circuits, commonly referred to as Moore’s Law.

One type of integration is to combine several

instances of the same photonic functions such as a plurality of modulators to create a multi-channel polymer PIC.

The number of channels

can be varied depending on application.

For example, the number of photonic components could increase by a factor of 4, 8, or 16.

Another type of integration is to combine different

types of devices including from different technology bases such as the combination of a semiconductor laser with a polymer modulator.

type of integration is to combine different types of devices including from different technology bases such as the combination of a semiconductor

laser with a polymer modulator.

Our P 2 IC™ platform encompasses both these types of architecture.

Current semiconductor photonic technology

today is struggling to reach faster device speeds.

Our modulator devices, enabled by our electro-optic polymer material systems, work

at extremely high frequencies (wide bandwidths) and possess inherent advantages over current crystalline electro-optic material contained

in most modulator devices such as bulk lithium niobate (LiNbO3), indium phosphide (InP), silicon (Si), and gallium arsenide GaAs).

advanced electro-optic polymer platform is creating a new class of modulators such as the Polymer Stack ™, Polymer Plus™,

Polymer Slot™, and associated PIC platforms that can address higher data rates in a lower cost, lower power consuming manner, smaller

footprint (size) with much simpler data encoding techniques.

Our electro-optic polymer material will boost the performance of standard

PIC platforms such as silicon photonics and indium phosphide.

Our electro-optic polymers can be

integrated with other materials platforms because they can be applied as a thin film coating in a fabrication clean room such as may be

found in semiconductor foundries using standard clean room tooling.

This approach we call Polymer Plus™.

Our polymers are unique

in that they are stable enough to seamlessly integrate into existing CMOS, Indium Phosphide (InP), Gallium Arsenide (GaAs), and other

semiconductor manufacturing lines.

Of relevance are the integrated silicon photonics platforms that combine optical and electronic

These include a miniaturized modulator for ultra-small footprint applications in which we term the Polymer Slot™.

design is based on a slot modulator fabricated into semiconductor wafers that include both silicon and indium phosphide.

Our Company has a fabrication facility

in Colorado to apply standard fabrication processes to our electro-optic polymers which create modulator devices.

While our internal fabrication

facility is capable of manufacturing modulator devices, we have partnered with commercial silicon-based fabrication companies that are

called foundries who can scale our technology with volume quickly and efficiently.

The process recipe for fabrication plants or foundries

is called a ‘process development kit’ or PDK.

We are currently working with commercial foundries to implement our electro-optic

polymers into accepted PDKs by the foundries.

Our work with the foundries is being focused with the Polymer Plus™ and the Polymer

Slot™ polymer modulators.

Glossary of select technology terms

to provide you with a better understanding our Company’s technology and devices:

semiconductor photonic technology today is struggling to reach faster device speeds.

Our modulator devices, enabled by our electro-optic

polymer material systems, work at extremely high frequencies (wide bandwidths) and possess inherent advantages over current crystalline

electro-optic material contained in most modulator devices such as bulk lithium niobate (LiNbO3), indium phosphide (InP), silicon (Si),

and gallium arsenide (GaAs).

Our advanced electro-optic polymer platform is creating a new class of modulators such as the Polymer Stack™,

Polymer Plus™, Polymer Slot™, and associated PIC platforms that can address higher data rates in a lower cost, lower power

consuming manner, smaller footprint (size) with much simpler data encoding techniques.

Our electro-optic polymer material will boost the

performance of standard PIC platforms such as silicon photonics and indium phosphide.

Our electro-optic

polymers can be integrated with other materials platforms because they can be applied as a thin film coating in a fabrication clean room

such as may be found in semiconductor foundries using standard clean room tooling.

These approaches enable our Polymer Plus™ and

Polymer Slot™ device platforms to not only be competitive but fully integrated with foundries.

Our polymers are unique in that they

are stable enough to seamlessly integrate into existing CMOS, Indium Phosphide (InP), Gallium Arsenide (GaAs), and other semiconductor

manufacturing lines.

Of relevance are the integrated silicon photonics platforms that combine optical and electronic functions.

include a miniaturized modulator for ultra-small footprint applications in which we term the Polymer Slot™.

This design is based

on a slot modulator fabricated into semiconductor wafers that can include either silicon or indium phosphide.

Company has a fabrication facility in Colorado to apply standard fabrication processes to our electro-optic polymers which create modulator

While our internal fabrication facility is capable of manufacturing modulator devices, we have partnered with commercial silicon-based

fabrication companies that are called foundries who can scale our technology with volume quickly and efficiently.

The process recipe for

fabrication plants or foundries is called a ‘process development kit’ or PDK.

We are currently working with commercial foundries

to implement our electro-optic polymers into accepted PDKs by the foundries.

One of the metrics for successful implementation of PDK is

to receive working modulator chips.

Our work with the foundries is being focused with the Polymer Plus™ and the Polymer Slot™

polymer modulators.

Glossary of select technology

terms to provide you with a better understanding our Company’s technology and devices:

Electro-optic devices -

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that light travels through in the device.

Organic polymer materials on the

other hand, have free electrons that allow for limitless potential to combine with other molecular structures, which allows for multiple

options and combinations to improving performance characteristics.

Importantly, because they can be applied to optical structures in thin-film

liquid form, it is possible to imbue electro-optic ability to highly miniaturized slot structures.

Organic polymer materials are also

vastly cheaper to manufacture in comparison to growing exotic crystals that are prone to contamination and further must be sliced into

Our Company believes that the combination of less expensive manufacturing cost, ease of application, and better scalability,

together with a lower cost of ownership due to lower heat dissipation (requiring less cooling), will create enormous demand for our products.

Organic polymer materials have

free electrons that allow for limitless potential to combine with other molecular structures, which allows for multiple options and combinations

to improving performance characteristics.

Importantly, because they can be applied to optical structures in thin-film liquid form, it

is possible to imbue electro-optic ability to highly miniaturized slot structures.

Organic polymer materials are also more economic to

manufacture in comparison to growing exotic crystals that are prone to contamination and further must be sliced into thin wafers.

Company believes that the combination of less expensive manufacturing cost, ease of application, and better scalability, together with

a lower cost of ownership due to lower heat dissipation (requiring less cooling), will create enormous demand for our polymer material

through supply agreements as well as polymer based products.

Many companies’ early attempts

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of approximately 85 0 C, found in large data centers.

After successfully achieving material test results that either met or exceeded

commercial requirements (subsequently confirmed by an outside entity), in late 2016, the Company began production of its first photonic

prototype device, a ridge waveguide modulator which is called a Polymer Stack™.

Our First Product – The Ridge Waveguide Modulator

A ridge waveguide modulator is a

type of modulator where the waveguide is fabricated within a layer of our electro-optic polymer system.

These devices were prototyped using ridge waveguide design.

Polymer based

ridge waveguide modulators prototypes called a Polymer Stack™ have performed with 3dB bandwidths that exceed 70GHz.

The Ridge Waveguide Modulator (Polymet Stack™ )

A ridge waveguide modulator is

a type of modulator where the waveguide is fabricated within a layer of our electro-optic polymer system.

Various cladding materials and

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suitable for 25Gbps data rates in an all-organic polymer ridge waveguide intensity modulator prototype, a significant improvement over

our initial 10Gbps device modulator prototype that was announced in 2016.

This breakthrough was significant because a 25Gbps data rate

is important to the optical networking industry because this data rate is a key requirement for achieving 100 Gbps (using 4 channels

In July 2017 we advanced our high-speed modulation performance to satisfy 28Gbps data rates for QSFP28 standards which are

also utilized for 100Gbps data center applications.

In September 2017 we achieved outstanding

performance of our ridge waveguide Mach-Zehnder modulators ahead of schedule, with bandwidth performance levels that will enable 50Gbaud

modulation in fiber-optic communications.

This important achievement will allow users to utilize arrays of 4 x 50Gbaud polymer modulators

using PAM-4 encoding to access 400Gbps data rate systems.

Pulse-Amplitude Modulation (PAM-4) is an encoding scheme that can double the

amount of data that can be transmitted.

We are now further optimizing our

high-performance modulators for additional specifications that are beginning to be required by the fiber communications industry for applications

such as networks running at data rates of 800Gbps.

800Gbps will require combining 4 channels of 200Gbps utilizing PAM4 encoding schemes

which will prove challenging for many existing modulator technologies.

Furthermore, we are collaborating with industry partners to optimize

the packaging our modulators so that potential customers can evaluate our high-performance modulators in their systems.

This effort will

also aid in addressing one of the most under-evaluated processes of developing high speed devices onto a new and novel technology platform

which is robustness and reliability.

We have already made extensive progress with our polymer materials on this front, and now we are

integrating our robust polymer materials onto an integrated photonics platform to provide customers with a more miniaturized, higher performance

solution for their data rich systems.

While our initial focus is to address

data communications and telecommunications network applications along with cloud computing/data center needs, we believe that in the future

we will have additional opportunities to address other applications such as:

backplane optical interconnects, photovoltaic cells, medical

applications, satellite reconnaissance, navigation systems, radar applications, optical filters, spatial light modulators;

and all-optical

our initial 10Gbps device modulator prototype that was announced the previous year.

This breakthrough was significant because a 25Gbps

data rate is important to the optical networking industry because this data rate is a key requirement for achieving 100 Gbps (using 4

channels of 25 Gbps).

In July 2017 we advanced our high-speed modulation performance to satisfy 28Gbps data rates for QSFP28 standards

which are also utilized for 100Gbps data center applications.

In September 2017 we achieved

outstanding performance of our ridge waveguide Mach-Zehnder modulators ahead of schedule, with bandwidth performance levels that will

enable 50Gbaud modulation in fiber-optic communications.

This important achievement will allow users to utilize arrays of 4 x 50Gbaud

polymer modulators using PAM-4 encoding to access 400Gbps data rate systems.

Pulse-Amplitude Modulation (PAM-4) is an encoding scheme

that can double the amount of data that can be transmitted.

We are now further optimizing

our high-performance modulators for additional specifications that are beginning to be required by the fiber communications industry for

applications such as networks running at data rates of 800Gbps and 1600Gbps.

800Gbps will require combining 4 channels of 200Gbps utilizing

PAM4 encoding schemes which will prove challenging for many existing modulator technologies.

Our technology platform has the capability

and potential to address 4 channels of 400Gbps utilizing PAM4 encoding schemes in the near future, thus creating a roadmap of increased

performance for the industry.

Furthermore, we are collaborating with industry partners to optimize the packaging our modulators so that

potential customers can evaluate our high-performance modulators in their systems.

This effort will also aid in addressing one of the

most under-evaluated processes of developing high speed devices onto a new and novel technology platform which is robustness and reliability.

We have already made extensive progress with our polymer materials on this front, and now we are integrating our robust polymer materials

onto an integrated photonics platform to provide customers with a more miniaturized, higher performance solution for their data rich systems.

While our initial focus is to

address data communications and telecommunications network applications along with cloud computing/data center needs, we believe that

in the future we will have additional opportunities over and above G-AI to address other applications such as:

backplane optical interconnects,

photovoltaic cells, medical applications, satellite reconnaissance, navigation systems, radar applications, optical filters, spatial light

and all-optical switches.

Electro-Optic Polymer Production – Our Approach vs.

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Polymer Efforts

For the past several decades, diverse

corporate interests, including, to our knowledge, IBM, Lockheed Martin, DuPont, AT&T Bell Labs, Honeywell, Motorola, HP, 3M, and others

in addition to numerous universities and U.S.

Government Agencies, have attempted to produce high-performance, high-stability electro-optic

polymers for high-speed (wide bandwidth) telecommunication applications.

These efforts were largely unsuccessful due, in our opinion,

to the industry’s singular adherence to an industry pervasive engineering model known as the Bond Length Alternation ("BLA")

theory model, which none of our patented molecular designs rely upon.

The BLA model, like all other current industry-standard molecular

designs, consists of molecular designs containing long strings of atoms called polyene chains.

Longer polyene chains provide higher electro-optic

performance, but are also more susceptible to environmental threats, which result in unacceptably low-performing, thermally unstable electro-optic

For the past several decades,

diverse corporate interests, including, to our knowledge, IBM, Lockheed Martin, DuPont, AT&T Bell Labs, Honeywell, Motorola, HP, 3M,

and others in addition to numerous universities and U.S.

Government Agencies, have attempted to produce high-performance, high-stability

electro-optic polymers for high-speed (wide bandwidth) telecommunication applications.

These efforts were largely unsuccessful due, in

our opinion, to the industry’s singular adherence to an industry pervasive engineering model known as the Bond Length Alternation

("BLA") theory model, which none of our patented molecular designs rely upon.

The BLA model, like all other current industry-standard

molecular designs, consists of molecular designs containing long strings of atoms called polyene chains.

Longer polyene chains provide

higher electro-optic performance, but are also more susceptible to environmental threats, which result in unacceptably low-performing,

thermally unstable electro-optic polymers.

As a result, high frequency modulators

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materials achieve are compliant with their equipment design needs.

We are aware of other academic and

commercial development efforts—some by larger companies with vastly more financial resources than we possess.

We are aware of other academic

and commercial development efforts—some by larger companies with vastly more financial resources than we possess.

However, we believe

that no one yet has developed organic polymer materials that have demonstrated the combination of thermal stability and photochemical

stability that can meet or exceed commercial specifications.

that no one yet has developed organic polymer materials that have demonstrated the combination of thermal stability, photochemical stability

and reliability that can meet or exceed commercial specifications.

Our Electro-Optic Photonic P 2 IC™ Device Approach

Our electro-optic devices are built

around our proprietary organic polymer material systems that we believe will enable better performance than the current embedded legacy

technology built around inorganic materials.

Our electro-optic devices are

built around our proprietary organic polymer material systems that we believe will enable better performance than the current embedded

legacy technology built around inorganic materials.

We also believe that the inherent flexibility of being able to apply our organic polymer

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by increasing the number of photonic circuits on a single chip.

Polymer photonics (previously referred in industry as silicon organic

hybrid (SOH)) is the application of polymers on to a platform such as silicon where there are both active and passive photonic component

In polymer photonics, polymer devices such as modulators, waveguides, and multiplexers can be fabricated on to a silicon platform

that acts as a package as well as a base for mounting lasers (which are needed to source the light).

Our initial device, a ridge waveguide

modulator, though highly miniaturized utilizes conventional design and fabrication techniques in the industry.

Our future devices will

utilize silicon photonics (SiPh) technology, which can support highly miniaturized slot waveguides structures etched in large format,

low cost, and less expensive silicon wafers coated with our organic electro-optic polymers.

The low-cost structure compares well to compound

semiconductor technologies such as GaAs (Gallium arsenide) and InP (Indium Phosphide), which suffer from small format wafers that do not

allow the economies of scale in high volume fabrication plants.

The degree of miniaturization possible of the slot modulator using SiPh

is not technically feasible to accomplish with inorganic crystalline materials.

Although this may not always remain the case, presently

there are nearly insurmountable technical difficulties that are inherent to a crystalline molecule.

Although we believe that our polymers

will be the key differentiating factor in Polymer photonic devices, we do not currently possess the technical skills and instrumentation

necessary to fabricate and test PICs at this dramatically reduced scale and intend to seek an external partner to assist with development.

Polymer photonics is the application of polymers on to a platform such

as silicon where there are both active and passive photonic component designs.

In polymer photonics, polymer devices such as modulators,

waveguides, and multiplexers can be fabricated on to a silicon platform that acts as a package as well as a base for mounting lasers (which

are needed to source the light).

Our initial device, though highly

miniaturized, utilizes conventional design and fabrication techniques in the industry.

Our future devices will utilize silicon photonics

(SiPh) technology, which can support highly miniaturized slot waveguides structures etched in large format (200mm), low cost, and less

expensive silicon wafers coated with our organic electro-optic polymers.

The low-cost structure compares well to compound semiconductor

technologies such as GaAs (Gallium arsenide) and InP (Indium Phosphide), which suffer from small format wafers that do not allow the economies

of scale in high volume fabrication plants.

The degree of miniaturization possible of the slot modulator using SiPh is not technically

feasible to accomplish with inorganic crystalline materials.

Although this may not always remain the case, presently there are nearly

insurmountable technical difficulties that are inherent to a crystalline molecule.

We now have the capability to model, simulate and design

photonic integrated circuits (PICs) in-house and we are currently developing 4 channel electro-optic polymer modulators.

Our Intellectual Property

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Our intellectual property portfolio has expanded significantly over

the last year as we are developing our P 2 IC™ into prototypes.

We actively filed technical utility patents over the past

few years, and are currently in the process of readying a number of other inventions for formal filings in 2023.

We expect to continue

innovating with our P 2 IC platform for the next couple of years.

We had a number of patents issued over the past few months

indicating that our technology is being recognized as being unique.

the few years as we are developing our P 2 IC™ into prototypes.

We have actively filed technical utility patents and are

currently in the process of readying a number of other inventions for formal filings in 2024 and 2025.

We expect to continue innovating

with our P 2 IC platform over the next decade.

We had additional patents issued or published over the past year indicating that

our technology is being recognized as being unique.

In 2018, we acquired the polymer

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The advanced fabrication processes

of ALD with temperatures below 100C will solidify our market position with both the Company's manufacturing foundry partners as well

as end-users as we prepare to enter the 800Gbps integrated photonics marketplace.

of ALD with temperatures below 100C will solidify our market position with both the Company's manufacturing foundry partners as well as

end-users as we prepare to enter the 800Gbps integrated photonics marketplace.

The acquisition also advanced our Company’s patent

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with our Company’s high speed, high efficiency modulators.

In total, our patent portfolio currently

consists of 66 granted patents that include 52 from the US, 1 from Canada, 6 from the EU, 2 from Japan and 3 from China.

Our materials patent portfolio has

also strengthened significantly with the filing of additional new patent applications on our core Perkinamine™ molecular compounds

In total, our patent portfolio

currently consists of 67 granted patents that include 54 from the US, 1 from World International

Property Organization (WIPO), 1 from Canada, 6 from the EU, 2 from Japan and 3 from China.

Our materials patent portfolio

has also strengthened significantly with the filing of additional new patent applications on our core Perkinamine™ molecular compounds

as well as recent, innovative inventions that are expected to protect our P 2 IC polymer PIC platform from potential competition.

Included in our patent portfolio are the following nonlinear

optic chromophore designs:

Included in our patent portfolio are the following

nonlinear optic chromophore designs:

Stable Free Radical Chromophores, processes for preparing the same

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Multi-fiber/port hermetic capsule sealed by metallization and method

Our patent portfolio includes patents not only on nonlinear optic chromophore

designs, but also device designs and inventions, fabrication process inventions, packaging design inventions, as well as novel chemistry

to enable high performance, low power, small footprint polymer PIC technology.

Our patent portfolio includes

patents not only on nonlinear optic chromophore designs, but also device designs and inventions, fabrication process inventions, packaging

design inventions, as well as novel chemistry to enable high performance, low power, small footprint polymer PIC technology.

Our strategic plan is to utilize

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parties will not be able to develop similar technologies and know-how independently.

The anti-aromatic nature of these

structures dramatically improves the "zwitterionic-aromatic push-pull" of the systems, providing for low energy charge transfer.

Low energy charge transfer is important for the production of extremely high electro-optic character.

Heterocyclical Steric Hindering

System This patent describes a nitrogenous heterocyclical structure for the integration of steric hindering groups that are necessary

for the nanoscale material integration.

Due to the [pi]-orbital configuration of the nitrogen bridge, this structure has been demonstrated

not to interfere with the conductive nature of the electronic conductive pathway and thus is non-disruptive to the electro-optic character

of the core molecular construction.

The quantum mechanical design of the system is designed to establish complete molecular planarity

(flatness) for optimal performance.

Totally Integrated Material Engineering

This patent covers material integration structures under a design strategy known as Totally Integrated Material Engineering.

integration structures provide for the "wrapping" of the core molecule in sterically hindering groups that maximally protect

the molecule from environmental threats and maximally protect it from microscopic aggregation (which is a major cause of performance degradation

and optical loss) within a minimal molecular volume.

These structures also provide for the integration of polymerizable groups for integration

of materials into a highly stable cross-linked material matrix.

Recent Significant Events and Milestones Achieved

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we prepare to enter the 400Gbps integrated photonics marketplace with a highly competitive, scalable alternative to installed legacy systems.

June 2018, our Company promoted polymer PICs and Solidified Polymer PICs as Part of the Photonics Roadmap at the World Technology Mapping

Forum in Enschede, Netherlands, which includes our Company’s technology of polymers and polymer PICs that have the potential to

drive not only 400Gbps aggregate data rate solutions, but also 800Gbps and beyond.

during June 2018, our Company promoted polymer PICs and Solidified Polymer PICs as Part of the Photonics Roadmap at the World Technology

Mapping Forum in Enschede, Netherlands, which includes our Company’s technology of polymers and polymer PICs that have the potential

to drive not only 400Gbps aggregate data rate solutions, but also 800Gbps and beyond.

2018 we announced the completion (ahead of schedule) of our fully equipped on-site fabrication facility, where we are expanding our high-speed

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and polymer businesses.

March 2019, our Company received the “Best Achievement in PIC Platform” award for our 100 GHz polymer platform from the PIC

International Conference.

in March 2019, our Company received the “Best Achievement in PIC Platform” award for our 100 GHz polymer platform from the

PIC International Conference.

The award recognizes innovative advances in the development and application of key materials systems driving

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Building from the world record performance and demonstration of a 250 GHz super

high bandwidth electro-optical-electrical (EOE) link that was presented at the 2022 European Conference on Optical Communications

high bandwidth electro-optical-electrical (EOE) link that was presented at the 2022 European Conference on Optical Communications ( ECOC) 3

through a collaboration with ETH Zurich, these latest figure of merit results show the potential for extreme power savings for optical

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semiconductor fabs and how the photonic industry can transfer their processes to the semiconductor industry.

forward to diligently meet our goals, we continue to work closely with our packaging and foundry partners for 112Gbaud prototypes, and

we are advancing our reliability and characterization efforts to support our prototyping.

Depending on electrical encoding schemes such

as PAM4, or PAM8, or wavelength optical multiplexing, these Gigabaud rates roughly translate to 200Gbps and 300Gbps per lane, and are

the key speed rates for emerging 800Gbps to future possible 1200Gbps applications.

22, 2023, we announced that our latest commercial-class electro-optic polymer material achieved

breakthrough performance metrics at 1310 nanometers (nm), a wavelength popular in hyperscale datacenter applications.

commercial-class improvements include a significantly higher electro-optic coefficient exceeding 200 pm/V, which allows for very

low drive power of 1 volt or less.

Other characteristics include optimized chromophore loading, superior low optical loss, excellent temporal

stability at 85 0 Celsius, and extremely high thermal and photo stability.

The breakthrough commercial-class electro-optic material is

expected to enable ultra-small footprint modulators with at least 100 GHz bandwidth as well as meeting all critical requirements for pluggable

transceivers, on-board optics and co-packaging solutions.

Additionally, the achievement of these results at the 1310nm bandwidth positions

us for potential near-term licensing opportunities in datacenter applications.

The groundbreaking results were presented by Stefan

Koepfli (ETH Zurich) as part of a peer-reviewed post-deadline paper presented at the prestigious

2022 European Conference on Optical Communications (ECOC) in Basel, Switzerland on September 22, 2022.

The post-deadline

paper is titled ">500 GHz Bandwidth Graphene Photodetector Enabling Highest-Capacity Plasmonic-to-Plasmonic Links."

April 2023, our Chief Executive Officer, Dr.

Michael Lebby, co-chaired the Photonic Integrated Circuits (PIC) International Conference

in Brussels, Belgium.

Industry-leading insiders delivered more than 30 presentations spanning six sectors at the conference.

The conference

provided attendees with an up-to-date overview of the status of the global photonics industry as well as the opportunity to meet many

other key players within the community.

In addition to serving as co-chair of the event, Dr.

Lebby hosted a presentation for in-person

attendees within the "Scaling PICs in Volume Using Foundries" track, focusing on the industry's consideration of electro-optic

polymer modulators due to their increased modulation speed, lower power consumption, and potential for future multi-Tbps aggregated data-rates

in the next decade.

Additionally, Dr.

Lebby discussed the latest results on foundry fabricated EO polymers, as well as the latest work

in photonics roadmaps on both the integrated photonics (PIC) level as well as PIC packaging level.

May 4, 2023, we announced, that in conjunction with our research partners at the Karlsruhe Institute of Technology and Solarix, the achievement

of record optical modulator performance using our Company's latest Perkinamine ® Series 5 material at extremely low

cryogenic temperatures, delivering the potential to revolutionize applications in supercomputers, quantum circuits and advanced computing

Building from the world record performance and demonstration of super high bandwidth, and super low voltage electro-optic

modulators with Karlsruhe Institute of Technology and Silorix over the past year, the results have the potential to enable supercomputing

and quantum systems to be more competitive than standard computational systems given its faster speeds at low temperatures.

This achievement

opens huge opportunities to our Company in the areas of supercomputing and quantum systems by giving access to very high data rate, low

power optical modulators.

May 18, 2023, we announced the receipt of U.S.

patent number 11,614,670 B2 entitled "Electro-optic polymer devices having high performance

claddings and methods of preparing the same," which is a cutting-edge design technique, enhancing the performance of polymer modulators

through the use of innovative polymer cladding design that is amenable for high-volume foundry fabrication when integrated with silicon

The patent details a novel fabrication process that allows our proprietary polymers to perform more effectively and to be fabricated

by silicon foundries in a high-volume manufacturing environment.

It also introduces a more efficient process for improving the performance

of the polymer claddings, leading to increased poling efficiency and lower losses in both optical and RF aspects.

This patent is helping

us move forward with our commercial discussions through the enabling of enhanced performance and simplified manufacturing of our polymer

modulators with silicon photonics.

May 25, 2023, we announced our Company's first commercial material supply license agreement for our Perkinamine ® chromophore

This agreement is to provide Perkinamine ® chromophore materials for polymer based photonic devices and

photonic integrated circuits (PICs).

Supplying licensed materials is one prong of our Company's three-prong revenue model and business

strategy that includes polymer modulator products as well as technology transfer.

This agreement recognizes market acceptance and competitive

advantage of our technology and validates the first prong of our business model.

Further, it represents tangible commercial progress for

electro-optic polymers as part of our business plan.

May 31, 2023, we announced the receipt of U.S.

patent number 11,661,428 entitled "Nonlinear Optical Chromophores, Nonlinear Optical

Materials Containing the Same, and Uses Thereof in Optical Devices," which details an innovative organic chromophore design using

a novel 'thiophene bridge' to significantly improve material performance in a production environment.

This is accomplished by designing

thiophene-containing bridging groups that are positioned between the electron-donating and electron-accepting ends of the chromophore.

These designs provide nonlinear optical chromophores with significantly improved optical properties and improved stability.

this patent will help us progress our commercial discussions with potential customers.

June 2023, we announced the publication of World International Property Organization (WIPO) PCT Patent Publication - PCT Patent No.

2023/102066 entitled “Nonlinear Optical Materials Containing High Boiling Point Solvents, and Methods of Efficiently Poling The

Same,” which illustrates novel organic chemical structural designs that offer increased poling efficiency, as well as thermal stability

for electro-optic materials.

These designs provide non-linear optical chromophores with significantly improved material properties and

stability for processing and fabrication by commercial foundries.

Specifically, the patent teaches material processing and poling methods

that directly leads to significantly enhanced electro-optic efficiency (r33) as compared to previous poling techniques.

We consider this

WIPO PCT Patent Publication to be a strong step forward in the scaling and volume commercialization of our polymer technology platform.

August 1, 2023, we appointed respected industry executive Laila Partridge to our Board of Directors.

Partridge brings over

30 years of executive experience in technology, corporate innovation and finance to our Board – having worked with a wide range

of technologies, including telecommunications, internet infrastructure, AI, internet of things and more.

She was named by Boston Business

Journal as one of the ten "2017 Women to Watch in Science and Technology".

She currently serves as Founder and Chief Executive

Officer of The HardTech Project, a new venture with a novel approach to early-stage hardware investing.

Previously, she was Managing Director

of the STANLEY + Techstars Accelerator where she directed a global effort for Stanley Black & Decker's Chief Technology

Officer to identify and invest in innovative technologies for industrial applications with an emphasis on electrification, sustainability

and advanced manufacturing.

Prior to that, she began her technology career at Intel Capital, serving as a Director of Strategic Investments.

Partridge began her career at Wells Fargo, where she ultimately achieved the role of VP of Corporate Banking, having led complex corporate

finance transactions for the company's senior secured debt agencies in the Midwest.

Partridge brings significant board experience

to the Board of Directors, including at Intel Capital serving privately-held technology companies, and in her current role as an independent

Director at Cambridge Trust (NASDAQ:

She holds a Bachelor's degree with Honors from Wellesley College.

August 21, 2023, we announced the completion of new laboratory production facilities, expanding our corporate headquarters by over 65%,

nearly 10,000 square feet, for a total of approximately 23,500 square feet to support new commercial activity, including enabling commercial

device testing and evaluation, production reliability testing, laser characterization, SEM analysis and the expansion of our Company's

chemical synthesis production line.

October 3, 2023, we announced our receipt of the 2023 Industry Award for Most Innovative Hybrid PIC/Optical Integration Platform from

the European Conference on Optical Communications (ECOC) – a premier industry exhibition – held in Glasgow,

Scotland from October 2-4, 2023.

ECOC is one of the leading conferences on optical communication and attracts top industry minds

from across the world.

The ECOC awards emphasize technology and product commercialization, highlighting significant achievements in advancing

the business of optical communications, transport, networking, fiber-based products, photonic integration circuits and related developments.

The Innovative Product category with 5 subcategories looks across the industry at new products driving change in their respective market

segment, and what is timely and helping to increase the use of optics.

Metrics include design features that are photonics, electronics,

thermal, mechanical, chemical, environmental and carbon footprint based.

move forward to diligently meet our goals, we continue to work closely with our packaging and foundry partners for 112Gbaud prototypes,

and we are advancing our reliability and characterization efforts to support our prototyping.

Depending on electrical encoding schemes

such as PAM4, or PAM8, or wavelength optical multiplexing, these Gigabaud rates roughly translate to 200Gbps and 300Gbps per lane, and

are the key speed rates for emerging 800Gbps to future possible 1200Gbps applications.

Our partnership with silicon-based foundries will

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seeking from a prototype are delivered to our technical team.

The groundbreaking results were presented by Stefan

Koepfli (ETH Zurich) as part of a peer-reviewed post-deadline paper presented at the prestigious

2022 European Conference on Optical Communications (ECOC) in Basel, Switzerland on September 22, 2022.

The post-deadline

paper is titled ">500 GHz Bandwidth Graphene Photodetector Enabling Highest-Capacity Plasmonic-to-Plasmonic Links."

The Global Photonic Device Market

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segment of the market.

As we have already seen with products

such as smart phones, lap top computers, and personal digital assistants (PDAs), Internet traffic, and especially mobile internet traffic

is one of the important metrics that is being used to show activity in fiber communications, and particularly telecommunications as well

as data communications (which includes datacenters and high-performance computing).

Internet Protocol (IP) traffic has typically been

used to gauge the amount of data that is being used on the internet as shown in the graph below (sourced from Cisco VNI in 2022).

metric is Exabytes per month.

As we have already seen with

products such as smart phones, lap top computers, and personal digital assistants (PDAs), Internet traffic, and especially mobile internet

traffic is one of the important metrics that is being used to show activity in fiber communications, and particularly telecommunications

as well as data communications (which includes datacenters and high-performance computing).

Internet Protocol (IP) traffic has typically

been used to gauge the amount of data that is being used on the internet as shown in the graph below (sourced from Cisco VNI in 2022).

The metric is Exabytes per month.

An Exabyte is 1E18 which is 1000 Petabytes, or 1000,000 Terabytes or a billion Gigabytes of data.

from the graph which has a strong growth of 26% CAGR (2017-2022) of global IP traffic, with the majority traffic being driven by internet

seen from the graph which has a strong growth of 26% CAGR (2017-2022) of global IP traffic, with the majority traffic being driven by

internet video.

The traffic rates are fast approaching the metric of Zetta which is 1E21 bytes of data.

Some estimates are discussing the further

metric of Yotta which is 1E24 bytes of data over the next decade, which is also expected to be driven for the most part by internet video.

Some estimates are discussing

the further metric of Yotta which is 1E24 bytes of data over the next decade, which is also expected to be driven for the most part by

internet video.

Within the overall market trends

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All of these components are packaged and put into transceivers.

Computing power is increasing significantly in part due to Generative Artificial

Intelligenc (G-AI).

In the graph above, large language models are requiring large GPU clusters, which is driving more information on the

This coupled with the heavy power consumption becomes a driving factor to reduce power in data centers and other nodes that

utilize computational processing.

The leverage of low power, high speed polymer modulators will alleviate these issues in the near future.

The above graphic shows that for large Graphical Processing Units (GPUs),

power consumption is a key metric to be addressed.

The graphic also shows that the role of optics is now becoming significant, and lower

power optical components and PICs such as polymer modulators have the potential to address and mitigate the growing trend of increased

power consumption in G-AI datacenter applications.

Within the datacenter environment, the power contribution of incumbent

modulators is very high and needs to be reduced, especially at the new network nodes of 800Gbps, and more so at 1600Gbps.

polymer PIC based electro-optic modulators will be to reduce power consumption at these higher data rates, and provide power competitive

fiber optic transceivers at 800Gbps, 1600Gbps and even 3200Gbps in the near future.

In the graphic above, there are huge polymer modulator

opportunities that include fiber optic transceivers, silicon photonics, and other platforms such as high-performance computing, RF, quantum

computing etc.

Electro-optic polymers enable higher performance data communcations in a number of fiber optic market verticals.

The global device and connection

growth market share as forecasted by Yole Developpment in their optical transceivers for datacom and telecom report (2021) is expected

to grow from $18B in 2018 to approximately $30B in 2023 as can be seen by the figure below (Source:

growth market share as forecasted by Yole Developpment (see below) in their optical transceivers for datacom and telecom report (2021)

is expected to grow from $18B in 2018 to approximately $30B in 2023 as can be seen by the figure below (Source:

Yole Developpment).

The compound annual

growth is expected to reach a healthy 10% for the period 2018 to 2023.

This market has machine to machine market vertical at nearly 50%

of the market share by 2023, followed by smartphones, TVs and game consoles, non-smartphones, Personal computers, other, and tablets.

compound annual growth is expected to reach a healthy 10% for the period 2018 to 2023.

This market has machine to machine market vertical

at nearly 50% of the market share by 2023, followed by smartphones, TVs and game consoles, non-smartphones, Personal computers, other,

The datacom optics revenue forecast

ranging from 2020 through 2026, and onto 2032 is shown in the figure below.

ranging from 2020 through 2026, and onto 2032 is shown in the graphic below.

This data is also sourced from Yole Developpment and is reported

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forecast ranging from 2020 through 2026 by market segment is shown in the figure below.

This data is also sourced from Yole Developpment,

This data is also sourced from Yole Development,

and is reported in their optical transceivers for datacom and telecom market report published in 2021.

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unique polymer technology platform has inherent advantages for the requirements of 800Gbps.

While this graphic does not show market revenue for 1600Gbps and 3200Gbps,

these higher performing datarates are being planned on roadmaps today.

As the Company is developing polymer

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Our Target Markets

Cloud computing and data centers

data is a general term used to describe the voluminous amount of unstructured and semi-structured data a Company creates – data

that would take too much time and cost too much money to load into a relational database for analysis.

Cloud computing and data

data is a general term used to describe the voluminous amount of unstructured and semi-structured data a Company creates –

data that would take too much time and cost too much money to load into a relational database for analysis.

Companies are looking to cloud

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Between datacenter buildings, there is an increasing need for high performance interconnects over 10km in reach.

modulators are suitable for single-mode fiber optic links.

We believe that our single mode modulator solutions will be competitive at

500m to 10km link distance lengths, with inherent advantages for 800Gbps applications.

Our modulators

are suitable for single-mode fiber optic links.

We believe that our single mode modulator solutions will be competitive at 500m to 10km

link distance lengths, with inherent advantages for 800Gbps applications.

Telecommunications/Data Communications

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target, it needs scalable PIC platforms to achieve this goal, of which our polymer platform is uniquely suited.

An article by Dr, Michael Lebby

that was recently published in broadband communities (BBC) magazine in early February 2023 discusses the virtues of polymer based technologies

as part of an industry technology roadmap.

The article is entitled “The internet is the brick wall Nostradamus did not see coming.”

In this article cost/performance metrics are discussed that show the trend to higher and higher data rates using PIC platforms that include

very high speed, low power modulator devices.

article also shows that electro-optic polymers play an important role in PICs over the next decade as they can reduce or close the gap

between customer expectations and technical performance through effective scaling increase of high performance with low cost for short

distance transceiver optical links.

Some of the things needed to achieve the scaling performance of polymers in integrated photonics platforms

is within sight today:

Increased r33 (which leads to very low Vpi in modulator devices) and we are currently

optimizing our polymers for this.

With Vpi levels of 1V or less will enable direct from associated electronics and potentially save network

architects the cost of individual driver ICs.

Increase temperature stability so that the polymers can operate

at broader temperature ranges effective, where we have made significant progress over the past few years .

Low optical loss in waveguides and active/passive devices for improved

optical budget metrics which is currently an ongoing development program at our Company.

Higher levels of hermeticity for lower cost packaging of optical

sub-assemblies within a transceiver module, where our advanced designs are being implemented into polymer-based packages that utilize atomic

layer deposition (ALD) that is being developed in-house.

by Dr, Michael Lebby that was recently published in broadband communities (BBC) magazine in early February 2023 discusses the virtues

of polymer-based technologies as part of an industry technology roadmap.

The article is entitled “The internet is the brick wall

Nostradamus did not see coming.” In this article cost/performance metrics are discussed that show the trend to higher and higher

data rates using PIC platforms that include very high speed, low power modulator devices.

also shows that electro-optic polymers play an important role in PICs over the next decade as they can reduce or close the gap between

customer expectations and technical performance through effective scaling increase of high performance with low cost for short distance

transceiver optical links.

of the things needed to achieve the scaling performance of polymers in integrated photonics platforms is within sight today:

Increased r33 (which leads to very low Vpi in modulator devices) and we are currently optimizing our polymers for this.

With Vpi levels of 1V or less will enable direct from associated electronics and potentially save network architects the cost of individual driver ICs.

Increase temperature stability so that the polymers can operate at broader temperature ranges effective, where we have made significant progress over the past few years .

Low optical loss in waveguides and active/passive devices for improved optical budget metrics which is currently an ongoing development program at our Company.

Higher levels of hermeticity for lower cost packaging of optical sub-assemblies within a transceiver module, where our advanced designs are being implemented into polymer-based packages that utilize atomic layer deposition (ALD) that is being developed in-house.

Scalability in terms of cost reduction

and high-volume manufacturing can be enhanced by:

Leverage of commercial silicon photonics manufacturing capacity

through the use of silicon-based foundries.

Our Polymer Plus™ platform seeks to be additive to standard silicon photonics circuits .

Reduction of optical packaging costs by integration at the chip

level of multiple modulators and also with other optical devices.

Leverage of commercial

silicon photonics manufacturing capacity through the use of silicon-based foundries.

Our Polymer Plus™ platform seeks to be additive

to standard silicon photonics circuits .

Reduction of optical packaging costs by integration at the chip level of multiple modulators and also with other optical devices.

Our P2IC™ platform seeks to address device integration

The above graphic shows the Company

electro-optic material design philosophy of increased glass transition temperature.

When the materials are designed with Tg above 170C,

this equates to approximately 100C above the normal operating temperatures in a data center environment.

This feature increases the material

reliability significantly.

Further, as the spider chart on the right of the above graphic indicates that key performance metrics of the

Company’s electro-optic chromophores perform well against competition in parameters such as photostability, decomposition temperature,

voltage, absorbance, glass transition temperature, and r33 (electro-optic efficiency).

This positions the Company’s materials very

well in the marketplace and eliminates the need to cross-link the polymers which jeopardizes stability and reliability.

The above graphic shows the

increasing trend of improved electro-optic chromophores that have been developed by the Company.

The graphic details improvements in r33,

a measure of electro-optic efficiency of Perkinamine® electro-optic material.

The r33 has improved using a box plot, approximately

over 5X during the past 7 years, and is now very stable in testing.

The above graphic shows the increasing trend of improved electro-optic

chromophores that have been developed by the Company in respect to decomposition temperature.

The graphic details improvements in Td showing

through the box plot extremely tight and improved material thermal stability over the past 3 years, and excellent results over the past

The above graphic shows the increasing trend of improved electro-optic

chromophores that have been developed by the Company in respect to glass transition temperature.

The graphic details improvements in Tg

showing through the box plot extremely tight and improved material with Tg’s above 170C with tight control of the materials performance

as measured in thin films.

Business Strategy

business strategy anticipates that our revenue stream will be derived from one or some combination of the following:

Our first revenue stream was obtained

from our entry into a material supply license agreement to provide Perkinamine ® chromophore

materials for polymer based photonic devices and photonic integrated circuits (PICs).

Our Company is also in various stages

of photonic device and materials development and evaluation with potential customers and strategic partners.

We expect to continue to

obtain a revenue stream from technology licensing agreements, and to obtain additional revenue streams from technology transfer agreements

and direct sale of our electro-optic device components.

Specifically,

our business strategy provides that our revenue stream will be derived from one or some combination of the following:

(i) technology licensing

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Our Research and Development Process

Our research and development process consist of the following

Our research and development process consist of the

following steps:

We develop novel polymer materials utilizing our patented and patent pending technology to meet certain performance specifications.

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We are developing PDKs with commercial silicon-based foundries so that our technology can transfer seamlessly to larger silicon wafer fabrication plants, and scale in volume quickly.

We have and expect to continue to

make significant operating and capital expenditures for research and development.

We have and expect to continue

to make significant operating and capital expenditures for research and development.

Our research and development expenses were $15,903,689,

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These include:

Ridge Waveguide Modulator, Polymer Stack ™

Ridge Waveguide Modulator,

Polymer Stack ™

ridge electro-optic waveguide modulator was designed and fabricated in our in-house laboratory.

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Polymer Plus™

novel waveguide design, we are developing a more compact modulator to be implemented directly with existing integrated photonics platforms

our novel waveguide design, we are developing a more compact modulator to be implemented directly with existing integrated photonics platforms

such as silicon photonics and Indium Phosphide.

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Arsenide (GaAs), and other semiconductor manufacturing lines.

majority of commercial silicon photonics platforms utilize large silicon photonics foundries such as those that manufacture IC products

large majority of commercial silicon photonics platforms utilize large silicon photonics foundries such as those that manufacture IC products

for a number of applications such as communications, computing, consumer, etc.

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as the enabling material layer.

Initial performance results in 2022 from commercial foundries achieved key design specifications for the

Performance results in 2023 from commercial foundries achieved key design specifications for the

slot modulator.

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the test modulators demonstrated very low operating voltage.

Initial speeds exceeded 70GHz in the telecom, 1550 nanometer frequency band,

and there were devices that exceeded over 100GHz 3dB bandwidth.

are also continuing our collaborative development of our polymer photonic slot waveguide modulators (Polymer Slot™) with a partner

that has advanced device design capabilities using Plasmonic technologies.

Some of these devices demonstrated performance levels that

exceeded 250GHz in 2022.

Initial speeds exceeded 70GHz in the telecom, 1310nm, and 1550 nanometer

frequency bands, and there were devices that exceeded over 100GHz 3dB bandwidth.

also continuing our collaborative development of our polymer photonic slot waveguide modulators (Polymer Slot™) with a partner that

has advanced device design capabilities using Plasmonic technologies.

Some of these devices demonstrated performance levels that exceeded

250GHz in 2022 with our partners.

Long-Term Device Development Goal - Multichannel Polymer Photonic Integrated Circuit (P 2 IC™)

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multiplexers, demultiplexers, detectors, fiber couplers.

polymer-based ridge waveguide and slot modulators are currently under development to be commercially viable products, our long-term device

development goal is to produce a platform for the 400 Gbps, 800 Gbps, 1600Gbps and beyond fiber optic transceiver market.

This has been

stated in our photonics product roadmap that is publicly available on our website.

The roadmap shows a progression in speed from 50 Gbaud

based modulators to 100 Gbaud based modulators.

The roadmap shows a progression in integration in which the modulators are arrayed to

create a flexible, multichannel P 2 IC™ platform that spans 100 Gbps, 400 Gbps, 800 Gbps, 1.6Tbps (or 1600Gbps), and a

scaling philosophy that will grow to 3.2Tbps line rates.

our polymer-based ridge waveguide and slot modulators are currently under development to be commercially viable products, our long-term

device development goal is to produce a platform for the 400 Gbps, 800 Gbps, 1600Gbps and beyond fiber optic transceiver market.

has been stated in our photonics product roadmap that is publicly available on our website.

The roadmap shows a progression in speed from

50 Gbaud based modulators to 100 Gbaud based modulators.

The roadmap shows a progression in integration in which the modulators are arrayed

to create a flexible, multichannel P 2 IC™ platform that spans 100 Gbps, 400 Gbps, 800 Gbps, 1.6Tbps (or 1600Gbps), and

a scaling philosophy that will grow to 3.2Tbps line rates.

showed bandwidths of polymer-based modulator devices at a major international conference (ECOC – European Conference on Optical

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and/or materials support in the pursuit of high-speed electro-optic materials.

We are not currently partnered with, strategically related

to, or financially supported by any governmental agency at this time, however, we may explore future opportunities as our Company grows

and gains the additional resources and personnel necessary to support these efforts.

Our previous relationships included:

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Air Force Research Laboratory at Wright-Patterson Air Force Base in Dayton, Ohio

We are aware of a multitude of government programs that include for example

the Chips and Science Act amongst others.

As noted above, we are not currently partnered with or financially supported by any governmental

agency at this time, however, we are exploring future opportunities as our Company grows and gains the additional resources and personnel

necessary to support these efforts.

Our Competition

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waveguides, spot-size converters, and mux/demux blocks such as AWG and Eschelle gratings.

Over the past decade, the rise of

silicon-based photonics has accelerated quickly (as can be seen in green in the Figure).

Silicon has a huge history in electronics, and

it’s been said by many that if the existing infrastructure could be utilized effectively, then the cost of producing photonics with

similar fabrication, design, testing, and simulation tools, would become competitive with the current incumbent technology:

be seen by the figure, silicon is capable of handling many photonics devices in addition to all electronic functionality with CMOS and

BiCMOS based technologies.

The only photonic device that remains impossible (at least for the time being) is the emitter or laser where

light is generated.

Over the past decade, the rise

of silicon-based photonics has accelerated quickly (as can be seen in green in the Figure).

Silicon has a huge history in electronics,

and it’s been said by many that if the existing infrastructure could be utilized effectively, then the cost of producing photonics

with similar fabrication, design, testing, and simulation tools, would become competitive with the current incumbent technology:

As can be seen by the figure, silicon is capable of handling many photonics devices in addition to all electronic functionality with CMOS

and BiCMOS based technologies.

The only photonic device that remains impossible (at least for the time being) is the emitter or laser

where light is generated.

This has spawned a new segment for silicon photonics (SiPh) where engineers and scientists have developed creative

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techniques and modulator designs.

Smaller companies that compete with

us on optical modulators using new and novel technologies include:

Hyperlite (who are developing thin film lithium niobate (TFLN) and

Lumiphase (who are developing Barium Titanate or BTO).

Smaller companies that

compete with us on optical modulators using new and novel technologies include:

Hyperlite (who are developing thin film lithium niobate

(TFLN) and Lumiphase (who are developing Barium Titanate or BTO).

Our Plan to Compete

We believe that as our organic polymer

technology gains industry acceptance, we will be poised to obtain a significant portion of the component manufacturing market and have

our technology become ubiquitous.

We believe that as our organic

polymer technology gains industry acceptance, we will be poised to obtain a significant portion of the component manufacturing market

and have our technology become ubiquitous.

Electro-optic polymers demonstrate several advantages over other technologies, such as inorganic-based

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organic polymers and future electro-optic photonic devices have demonstrated significant stability advantages over our known competitor’s

We believe the principal competitive factors in our target

We believe the principal competitive factors in our

target markets are:

The ability to develop and commercialize highly stable optical polymer-based materials and optical devices in commercial quantities.

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Our future success is difficult to predict because

we are an early stage company with all of our potential products still in development.

we are an early-stage company with most of products still in development.

Many of our existing and potential

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As a result, these competitors may:

Succeed in developing products that are equal to or superior to our potential products or that achieve greater market acceptance than our potential products.

Succeed in developing products that are equal to or superior to our products and future products or that achieve greater market acceptance than our products and future products.

Devote greater resources to developing, marketing or selling their products.

Respond quickly to new or emerging technologies or scientific advances and changes in customer requirements, which could render our technologies or potential products obsolete.

Introduce products that make the continued development of our potential products uneconomical.

Obtain patents that block or otherwise inhibit our ability to develop and commercialize our potential products.

Respond quickly to new or emerging technologies or scientific advances and changes in customer requirements, which could render our technologies or products obsolete.

Introduce products that make the continued development of our products and/or future products uneconomical.

Obtain patents that block or otherwise inhibit our ability to develop and commercialize our future products.

Withstand price competition more successfully than we can.

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our safety culture and processes.

In response to the COVID-19 pandemic and related mitigation measures, and in conjunction with federal

and statewide mandates, we implemented certain changes in an effort to protect our employees from COVID-related exposures.

we implemented social distancing in the workplace, extensive cleaning and sanitation processes for both research and development areas

and office spaces, and broad work-from-home initiatives for employees in our administrative functions.

Available Information

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in this report are provided as a convenience, and the information on our website is not, and shall not be deemed to be a part of this

Report on Form 10-K or incorporated into any other filings we make with the SEC.

The SEC maintains an Internet site (www.sec.gov) that

contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

addition, we make available on our website under “Investors” – “Corporate Governance”, free of charge, our

Audit Committee Charter, Compensation Committee Charter, Nominating And Corporate Governance Committee Charter, Operations Committee Charter

and Code of Ethics and Business Conduct.

In addition, the foregoing information is available in print, without charge, to any stockholder

who requests these materials from us.

Annual Report on Form 10-K or incorporated into any other filings we make with the SEC.

The SEC maintains an Internet site (www.sec.gov)

that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

In addition, we make available on our website under “Investors” – “Corporate Governance”, free of charge,

our Audit Committee Charter, Compensation Committee Charter, Nominating And Corporate Governance Committee Charter, Operations Committee

Charter and Code of Ethics and Business Conduct.

In addition, the foregoing information is available in print, without charge, to any

stockholder who requests these materials from us.

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-K

Item 1. Business