Lightwave Logic, Inc. (OTCMKTS:LWLG) Bogs Down After the Quarterly Report
In October 2013, a Lightwave Logic, Inc. (OTCMKTS:LWLG) shareholder wrote a forum post in which he expressed his enthusiasm about the company and the progress it has made. He talked at some considerable length about the decades worth of experience possessed by the management team and he said that in his opinion ‘they are close.’ But, how close were they exactly?
Well, the stock hasn’t really been setting the market ablaze. You can see from the post that a year and a half ago, LWLG was hovering around the $1 per share mark. After wiping out about a tenth of its value on Friday, it’s now sitting at just under $0.80.
Of course, there’s a very good reason for the double-digit loss from the end of last week. It lies with the 10-Q for the first quarter of 2015 which was published about an hour after Friday’s opening bell. It must be said that by Pennyland standards, the statement isn’t particularly horrific. Even so, the figures don’t really befit a company that wants to turn the telecommunication industry on its head. Here’s a summary:
- cash: $2.3 million
- current assets: $2.4 million
- current liabilities: $341 thousand
- NO revenue
- quarterly net loss: $1 million
Indeed, the figures are not that impressive, but it must be said that so far, LWLG‘s management team have been successful in funding the operations through private placements and other means. So the shareholders have every right to hope that this will be the case in the months and years to come.
Sadly, once you dig a bit further, you might stumble upon a more serious problem. Let’s take a step back in time and open the 10-K for the period ended December 31, 2012. If you take a closer look, you’ll see that back then, LWLG‘s objective was to commercialize the electro-optic polymer technology “during 2013.” Fast forward twelve months, and you’ll notice that the commercialization of the same exact technology had been postponed for 2014. Sadly, that deadline was a bit too optimistic as well, and the latest 10-K, which saw the light of day at the end of March, said that the clever electro-optic polymers should be available before the end of 2015. Apparently, something went wrong yet again because the Q1 report (the one that came out on Friday) says that the commercialization is now expected to take place “during 2016.”
We mentioned in our previous articles that LWLG has always been a long-term investment rather than a quick flip and we’re pretty sure that there will be supporters of the stock who will once again say that patience is a virtue. You have to agree, however, that there is a rather big difference between patience and waiting for a deadline that is being pushed back over and over again.
