Lightwave Logic, Inc. 10-Q/A

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with our financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management. This information should also be read in conjunction with our audited historical financial statements which are included in our 2024 Form 10-K for the fiscal year ended December 31, 2024, as amended (“ 2024 Form 10-K ”). Overview Lightwave Logic, Inc. is a technology platform company leveraging its proprietary engineered electro-optic (EO) polymers, named Perkinamine® to transmit data at higher speeds with less power in a small form factor. The Company’s high activity and high stability organic polymers allow it to create next-generation photonic EO devices that convert data from electrical signals into light/optical signals for applications in telecommunications, and for data transmission potentially used to support generative AI. 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 the electro-optic polymers potential for higher speed and lower power consumption in packaged devices, and during 2024 and continuing into 2025, 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: a) working with potential and existing customers to integrate our proprietary materials into our customers’ specific PIC and device architecture; b) testing and demonstrating the superior performance, simplicity of manufacturability and reliability of our devices, including in conjunction with the silicon photonics manufacturing ecosystem; and c) providing our potential and existing customers with the proper Process Development Kits (PDKs) to enable the efficient and fast integration of our materials into their own design and manufacturing plans. Silicon-based foundries are 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 more quickly and efficiently. We have now received silicon wafers that range up to 200mm in diameter, which aligns well with foundry manufacturing. Our strong and broad patent portfolio allows us to optimize our business model in three areas: 1) Traditional focus on polymer materials development, 2) Patent licensing and 3) Technology transfers 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, in particular ultra-high bandwidth optical connections deployed inside and between datacenters and/or AI clusters. In addition, we are exploring other applications that include automotive/LIDAR, sensing, displays, storage, aerospace and defense, satellites, and quantum computing, for our polymer technology platform. Our goal is to have our innovative polymer technology platform become ubiquitous across multiple market verticals over and above the optical fiber optic communications markets. Artificial Intelligence (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 significant, 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 AI is changing the way the internet is being operated. 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 AI as it generates more information that will travel through the internet and optical network. While we are not directly an 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, all references to the “Company,” “we,” “our” or “us” and other similar terms means Lightwave Logic, Inc. Also, this Form 10-Q Quarterly Report may include the names of various government agencies and the trade names of other companies. Unless specifically stated otherwise, the use or display by us of such other parties’ names and trade names in this report is not intended to and does not imply a relationship with, or endorsement or sponsorship of us by, any of these other parties. 26 Commencement of Commercial Operations We commenced commercial operations in May 2023. 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 (PICs). 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 new 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 materials. We have seen increased interest in our materials during 2024, driven by the need for higher speed connections to scale the AI-enabled network infrastructure and we are in discussions on future license agreements. In December 2024, we made the decision to focus our commercial and R&D efforts on the EO Polymer materials development and manufacturing. Although we continue to develop full Photonic Integrated Circuits and packaged device designs as part of our internal technology and process development roadmap, we are not actively promoting the sale of such PICs and/or packaged devices to external customers, but rather EO Polymer materials supply and license agreements. Business Strategy 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 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 Perkinamine® chromophore material. Specifically, our business strategy provides that our revenue stream will be derived from one or some combination of the following: (i) technology licensing for specific product application; (ii) joint venture relationships with significant industry leaders; and (iii) the production and direct sale of our own electro-optic materials. Our objective is to be a leading provider of proprietary technology and know-how in the electro-optic device market. In order to meet this objective, we intend to continue to: · Further the development of proprietary organic electro-optic polymer material systems. · Partner with PIC or packaged device design and manufacturing companies to further the development of PDKs for our polymer material. · Develop proprietary intellectual property. · Grow our commercial device design and development capabilities. · Partner with silicon-based foundries who can scale volume quickly and integrate our materials into their infrastructure. · Grow our product reliability and quality assurance capabilities.  · Grow our optoelectronic and RF testing capabilities. · Grow our commercial material manufacturing capabilities. · Maintain/develop strategic relationships with major telecommunications and data communications companies to further the awareness and commercialization of our technology platform. · Add high-level personnel with industrial and manufacturing experience in key areas of our materials and process development programs. Create Organic Polymer-Enabled Electro-Optic Modulators We intend to utilize our proprietary optical polymer technology to enable the creation by our customers of a portfolio of commercial electro-optic polymer product devices with applications for various markets, including telecommunications, data communications and data centers. We expect our -polymer material to be used initially in modulator products that will operate at symbol rates at least 112 Gigabaud which is roughly 200Gbps when utilized with PAM4 encoding schemes. Our devices are highly linear and can also enable the performance required to take advantage of more advanced complex encoding schemes if required. Capital Requirements We commenced commercial operations in May 2023, and we do not generate sufficient revenues to pay for our operating expenses. We have incurred substantial net losses since inception. We have satisfied our capital requirements since inception primarily through the issuance and sale of our common stock. 27 Results of Operations Comparison of three months ended June 30, 2025 to three months ended June 30, 2024 Revenues During the three months ended June 30, 2025, we recognized $25,605 of licensing and royalty revenue. During the three months ended June 30, 2024, we recognized $19,355 of licensing and royalty revenue. During the three months ended June 30, 2025 and 2024, 100% of the Company’s net sales were generated internationally. Cost of Sales During the three months ended June 30, 2025, we recognized $3,463 in cost of sales. During the three months ended June 30, 2024, we recognized $0 in Cost of Sales. Operating Expenses For the Three Months Ended June 30, 2025 (Restated) For the Three Months Ended June 30, 2024 Change from Prior Three Month Period Percent Change from Prior Three Month Period Research and development $ 2,621,441 $ 4,362,258 $ (1,740,817 ) -40 % General and administrative 2,300,884 1,896,672 404,212 21 % $ 4,922,325 $ 6,258,930 $ (1,336,605 ) -21 % Research and development expenses decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to decreases in research and development non-cash stock option and restricted stock amortization expenses, research and development salary expenses, laboratory materials and supplies expenses, outside services expenses, wafer fabrication expenses, prototype device development expenses, research and development facilities and equipment rental expenses, research and development consulting expenses, and research and development travel expenses, offset by an increase in research and development equipment depreciation expense. 28 We expect to continue to incur substantial research and development expenses developing and commercializing our electro-optic materials platform. These expenses will increase as a result of accelerated development efforts to support commercialization of our non-linear optical polymer materials technology and create next-generation photonic EO device designs; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses. General and administrative expenses increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to increases in general and administrative salary expenses and general and administrative non-cash stock option and restricted stock amortization expenses, offset by decreases in general and administrative consulting fees, sales and marketing expenses, and business insurance fees. Other Income (Expense) For the Three Months Ended June 30, 2025 For the Three Months Ended June 30, 2024 Change from Prior Three Month Period Percent Change from Prior Three Month Period Other (Expense) Income $ (66,450 ) $ 219,891 $ (286,341 ) 130 % Other expense increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a $206,817 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $83,475 decrease in interest income on money market account. Net Loss For the Three Months Ended June 30, 2025 (Restated) For the Three Months Ended June 30, 2024 Change from Prior Three Month Period Percent Change from Prior Three Month Period Net Loss $ 4,966,633 $ 6,019,684 $ (1,053,051 ) -17 % Net loss was $4,966,633 and $6,019,684 for the three months ended June 30, 2025 and 2024, respectively, for a decrease of $1,053,051 due primarily to decreases in non-cash stock option and restricted stock amortization expenses, consulting expenses, laboratory materials and supplies expenses, research and development outside services expenses, wafer fabrication expenses, prototype device development expenses, facility and equipment rental expenses, marketing expenses, research and development travel expenses, and business insurance expenses. These decreases were offset by increases in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, salary expenses, research and development equipment depreciation expense, and a decrease in interest income on money market account. 29 Results of Operations Comparison of six months ended June 30, 2025 to six months ended June 30, 2024 Revenues During the six months ended June 30, 2025, we recognized $48,522 of licensing and royalty revenue. During the six months ended June 30, 2024, we recognized $36,022 of licensing and royalty revenue. For the six months ended June 30, 2025, 100% of the Company’s net sales were generated internationally. For the six months ended June 30, 2024, 28% of the Company's net sales were generated in the United States and 72% internationally. The Company has one customer that accounted for 10% or more of total revenue. Cost of Sales During the six months ended June 30, 2025, we recognized $5,491 in Cost of Sales. During the six months ended June 30, 2024, we recognized $5,175 in Cost of Sales. Operating Expenses For the Six Months Ended June 30, 2025 (Restated) For the Six Months Ended June 30, 2024 Change from Prior Six Month Period Percent Change from Prior Six Month Period Research and development $ 5,710,659 $ 8,982,920 $ (3,272,261 ) -36 % General and administrative 4,137,936 3,152,122 985,814 31 % $ 9,848,595 $ 12,135,042 $ (2,286,447 ) 19 % Research and development expenses decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to decreases in outside services expenses, wafer fabrication expenses, prototype device development expenses, research and development non-cash stock option and restricted stock amortization expenses, research and development salary expenses, laboratory materials and supplies expenses, research and development travel expenses, and research and development testing expenses, offset by an increase in research and development equipment depreciation expense. 30 We expect to continue to incur substantial research and development expenses developing and commercializing our electro-optic materials platform. These expenses will increase as a result of accelerated development efforts to support commercialization of our non-linear optical polymer materials technology and create next-generation photonic EO device designs; working with semiconductor foundries; hiring additional technical and support personnel; engaging senior technical advisors; pursuing other potential business opportunities and collaborations; customer testing and evaluation; and incurring related operating expenses. General and administrative expenses increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increases in general and administrative salary expenses, general and administrative non-cash stock option and restricted stock amortization expenses, and legal fees, offset by decreases in general and administrative consulting fees, accounting and auditing fees, depreciation expense, general and administrative recruiting fees, and business insurance expenses. Other Income (Expense) For the Six Months Ended June 30, 2025 For the Six Months Ended June 30, 2024 Change from Prior Six Month Period Percent Change from Prior Six Month Period Other Income $ 141,907 $ 390,850 $(248,943) 64% Other income decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a $137,871 increase in commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement and a $148,965 decrease in interest income on money market account. Net Loss For the Six Months Ended June 30, 2025 (Restated) For the Six Months Ended June 30, 2024 Change from Prior Six Month Period Percent Change from Prior Six Month Period Net Loss $ 9,663,657 $ 11,699,595 $(2,035,938) -17% 31 Net loss was $9,663,657 and $11,699,595 for the six months ended June 30, 2025 and 2024, respectively, for a decrease of $2,035,938 due primarily to decreases in research and development outside services expenses, wafer fabrication expenses, prototype device development expenses, non-cash stock option and restricted stock amortization expenses, laboratory materials and supplies expenses, research and development travel expenses, general and administrative consulting fees, research and development testing expenses, accounting and auditing fees, general and administrative recruiting fees, and business insurance expenses. These decreases were offset by increases in salary expense, commitment fee associated with the purchase of shares by an institutional investor for sale under a stock purchase agreement, depreciation expense, and legal fees, and a decrease in interest income on money market account. Liquidity and Capital Resources Our primary source of operating cash inflows was (i) proceeds from the sale of common stock to Lincoln Park Capital Fund, LLC (institutional investor) (“Lincoln Park”) pursuant to purchase agreements with Lincoln Park and proceeds from sale of common stock by Roth Capital Partners, LLC (investment banking company) (“Roth Capital”) pursuant to the at the market sales agreement with Roth Capital as described in Note 10 to the Financial Statements and (ii) proceeds received pursuant to the exercise of options. On July 26, 2024, we filed a $100 million universal shelf registration statement which became effective on August 5, 2024. On February 28, 2023, we entered into a purchase agreement with Lincoln Park (the “2023 Purchase Agreement”) to sell up to $30 million of registered common stock over a 36-month period. As of the date of this filing, $0 remains available pursuant to the 2023 Purchase Agreement. On March 17, 2025, we entered into a purchase agreement with Lincoln Park (the “2025 Purchase Agreement”) to sell up to $30 million of registered common stock over a 36-month period. As of the date of this filing, $27,846,150 remains available pursuant to the 2025 Purchase Agreement. On December 9, 2022, we entered into the at the market sales agreement with Roth Capital, as sales agent, (the “Roth Sales Agreement”) pursuant to which we may offer and sell up to $35 million in shares of our registered common stock, from time to time through Roth Capital. As of the date of this filing, $26,949,862 remains available pursuant to the Roth Sales Agreement. During the six months ended June 30, 2025, the Company received $1,486,983 in proceeds pursuant to the 2023 Purchase Agreement, $688,000 in proceeds pursuant to the 2025 Purchase Agreement, $499,883 in proceeds pursuant to the Roth Sales Agreement, $204,000 in proceeds pursuant to the exercise of options, and $75,000 in cash collections from the material supply and license agreement. During the six months ended June 30, 2025, our primary sources of cash outflows from operations included payroll, rent, utilities, payments to vendors including laboratory and wafer fabrication materials and supplies expenses, and third-party service providers. Sources and Uses of Cash Our future expenditures and capital requirements will depend on numerous factors, including: the progress of our research and development efforts; the rate at which we can, directly or through arrangements with original equipment manufacturers, introduce and sell our products; 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 $1,786,000 of expenditures per month over the next 12 months. We expect the proceeds received pursuant to the 2025 Purchase Agreement and any future purchase agreements with Lincoln Park, Roth Sales Agreement, the exercise of options and warrants, and commercial operations to provide us with sufficient funds to maintain our operations over the next 12 months. Our current cash position enables us to finance our operations through October 2026 before we will be required to replenish our cash reserves. Our cash requirements are expected to increase at a rate consistent with our Company’s revenue growth as we expand our activities and operations with the objective of increasing our revenue stream from the commercialization of our electro-optic polymer technology. We currently have no debt to service. We expect that our cash used in operations will continue to increase during 2025 and beyond because of the following planned activities: • The addition of management, sales, marketing, technical and other staff to our workforce; • Increased spending for the expansion of our research and development efforts, including purchases of additional laboratory and production equipment; • Increased spending in marketing as our products are introduced into the marketplace; • Partnering with commercial foundries to implement our electro-optic polymers into accepted PDKs by the foundries; • Developing and maintaining collaborative relationships with strategic partners; • Developing and improving our manufacturing processes and quality controls; and  • Increases in our general and administrative activities related to our operations as a reporting public company and related corporate compliance requirements.  32 2023 and 2025 Purchase Agreements with Lincoln Park On February 28, 2023, our Company entered into the 2023 Purchase Agreement with Lincoln Park, pursuant to which Lincoln Park agreed to purchase from us up to $30 million of our common stock (subject to certain conditions) from time to time over a 36-month period. On March 17, 2025, our Company entered into the 2025 Purchase Agreement with Lincoln Park, pursuant to which Lincoln Park agreed to purchase from us up to $30 million of our common stock (subject to certain conditions) from time to time over a 36-month period. Pursuant to the 2025 Purchase Agreement, subject to the conditions set forth therein, Lincoln Park is obligated to make purchases as the Company directs in accordance with the 2025 Purchase Agreement, which may be terminated by the Company at any time, without cost or penalty. Sales of shares will be made in specified amounts and at prices that are based upon a look back formula for market prices of our common stock immediately preceding the sales to Lincoln Park. There are no trading volume requirements or restrictions on the 2025 Purchase Agreement, and we will control the timing and amount of any sales of our common stock to Lincoln Park. Lincoln Park has no right to require any sales by us, but is obligated to make purchases from us as we direct in accordance with the 2025 Purchase Agreement. We can also accelerate the amount of common stock to be purchased under certain circumstances. There are no limitations on the use of proceeds, financial or business covenants, restrictions on future financings (other than restrictions on the Company’s ability to enter into a similar type of agreement or equity line of credit during the term, excluding an at-the-market transaction with a registered broker-dealer), rights of first refusal, participation rights, penalties or liquidated damages in the 2025 Purchase Agreement. Roth Sales Agreement – Roth Capital On December 9, 2022, we entered into the Roth Sales Agreement with Roth Capital, as sales agent. Pursuant to the Roth Sales Agreement, our Company may offer and sell up to $35 million in shares of our common stock, from time to time through Roth Capital. Upon delivery of a placement notice based on our Company’s instructions and subject to the terms and conditions of the Roth Sales Agreement, Roth Capital may sell the shares by methods deemed to be an "at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through The Nasdaq Capital Market, on any other existing trading market for the Company’s common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of our Company. We are not obligated to make any sales of shares under this agreement. The Company or Roth Capital may suspend or terminate the offering of shares upon notice to the other party, subject to certain conditions. Roth Capital will act as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. We have agreed to pay Roth Capital commissions for its services of acting as agent of 3.0% of the gross proceeds from the sale of the shares pursuant to the Roth Sales Agreement. The amount of proceeds we receive from the Roth Sales Agreement, if any, will depend upon the number of shares of our common stock sold and the market price at which they are sold. There can be no assurance that we will be able to sell any shares under or fully utilize this agreement. Roth Capital is not required to sell any specific number of shares of our common stock under the agreement. We cannot assure you that we will meet the conditions of the 2025 Purchase Agreement with Lincoln Park in order to obligate Lincoln Park to purchase our shares of common stock, and we cannot assure you that we will be able to sell any shares under or fully utilize the Roth Sales Agreement with Roth Capital. In the event we fail to do so, and other adequate funds are not available to satisfy long-term capital requirements, or if planned revenues are not generated, we may be required to substantially limit our operations, which could result in our Company reducing some capital expenditures or reducing staff and discretionary costs. 33 Analysis of Cash Flows For the six months ended June 30, 2025 Net cash used in operating activities was $7,260,222 for the six months ended June 30, 2025, primarily attributable to the net loss of $9,663,657 adjusted by $1,282,692 in options issued for services, $401,863 amortization of deferred compensation, $384,925 amortization of performance stock units, $11,113 amortization of restricted stock units, $243,830 in common stock issued as commitment shares under the 2023 and 2025 Purchase Agreements, $943,089 in depreciation expenses and patent amortization expenses, $100,938 amortization of right of use asset, $28,800 gain on disposal of property and equipment, $34,812 in accounts receivable, ($237,115) in prepaid expenses and other current assets, and ($733,913) in accounts payable, accrued bonuses, accrued expenses, contract liability and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, salaries, rent and other expenditures necessary to develop our business infrastructure. Net cash used by investing activities was $1,002,226 for the six months ended June 30, 2025, consisting of $108,332 in cost for intangibles and $893,894 in asset additions for the Colorado headquarter facility and labs. Net cash provided by financing activities was $2,701,430 for the six months ended June 30, 2025, and consisted of $204,000 in proceeds from exercise of options, $171,926 cashless option exercise tax payments, $12,875 cashless tax payment on vested restricted stock awards, $2,174,983 in proceeds from the sale of common stock pursuant to the 2023 and 2025 Purchase Agreements and $507,248 in proceeds from the sale of common stock pursuant to the Roth Sales Agreement. On June 30, 2025, our cash and cash equivalents totaled $22,106,946, our assets totaled $32,436,267, our liabilities totaled $3,602,097 and we had stockholders’ equity of $28,834,170. For the six months ended June 30, 2024 Net cash used in operating activities was $8,823,788 for the six months ended June 30, 2024, primarily attributable to the net loss of $11,699,595 adjusted by $2,337,460 in options issued for services, $203,521 amortization of deferred compensation, $105,960 in common stock issued for services, $804,737 in depreciation expenses and patent amortization expenses, $94,753 amortization of right of use asset, $3,166 loss on disposal of property and equipment, $22,311 in accounts receivable, $476,730 in prepaid expenses and other current assets and ($1,172,831) in accounts payable, accrued bonuses, accrued expenses, deferred revenue and other liabilities. Net cash used in operating activities consisted of payments for research and development, legal, professional and consulting expenses, rent and other expenditures necessary to develop our business infrastructure. Net cash used in investing activities was $1,653,217 for the six months ended June 30, 2024, consisting of $67,445 in cost for intangibles and $1,585,772 in asset additions for the Colorado headquarter facility and labs. Net cash provided by financing activities was $8,240,733 for the six months ended June 30, 2024 and consisted of $245,250 in proceeds from exercise of options and warrants, $7,495,600 in proceeds from resale of common stock to Lincoln Park and $499,883 in proceeds from at the market sale of common stock by Roth Capital. On June 30, 2024, our cash and cash equivalents totaled $29,195,815, our assets totaled $39,798,833, our liabilities totaled $4,176,940 and we had stockholders’ equity of $35,621,893. Contractual Obligations There have been no material changes outside the ordinary course of business in our contractual commitments during the six months ended June 30, 2025. See Note 8 - Leases to the financial statements herein for a discussion of our operating lease for office and laboratory space. Significant Accounting Policies We believe our significant accounting policies affect our more significant estimates and judgments used in the preparation of our financial statements. Our 2024 Form 10-K contains a discussion of these significant accounting policies. The Company’s significant accounting policies have not materially changed since that report was filed. 34