Lightwave Logic, Inc. (OTCMKTS:LWLG) Turns a Deeper Red

The last few weeks have been a bumpy ride for Lightwave Logic Inc (OTCMKTS:LWLG). In yesterday’s session the stock slid downhill a little faster, dropping 7% to a close at $0.65 per share. The quarterly report LWLG put up after the closing bell on Monday managed to stop the red streak on the charts only momentarily.

The quarterly came amidst a significant slip in share price as LWLG was coming down hard from $0.86 per share. On the session following the filing, LWLG managed to stop the price decline and closed nearly 8% up but the reversal was not to last, as the red days resumed immediately after. Here is a brief summary of the balance sheet the report contained:

  • $2.1 million in cash and equivalents
  • $163 thousand in liabilities
  • ZERO in revenues for Jan – Jun 2015
  • $1.9 million in Q3 net loss

The company’s research and development expenses ramped up significantly in the last quarter, leading to a considerable spike in net loss, with LWLG recording net loss almost equal to that of the two previous quarters. Share issuance has been kept commendably at bay, with just a few thousand shares issued over the last quarter.

LWLG recently informed investors that the company completed the fabrication of “polymer ridge waveguide structures” and they are now in “passive testing”. In separate news, LWLG also informs that its “organic multi-chromophore polymer” systems have gone through over 2,000 hours of testing. While we don’t have a physicist on retainer, this sounds an awful lot like good news for the company.

Despite the positive release, LWLG slipped down the charts in double digits. Admittedly, there seems to be a bit of recurrence when it comes to this sort of behavior on the six-month chart. Almost every bigger price rally has been followed by a considerable retrace that pushed the price down significantly. The chart does imply that there is a lot of flipping going on with LWLG trades and aggressive traders are using every opportunity to make a quick buck.

The company has not done anything particularly outrageous in terms of share offerings and dilution, so the question here is how much an investor understands the fundamentals behind the technology LWLG is working on and how well they can gauge the progress being made and the possible time frame for commercialization of the in-development products.

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