LightPath Technologies Reports Second Quarter Fiscal 2025 Financial Results
ORLANDO, Fla., Feb. 13, 2025 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced financial results for its fiscal 2025 second quarter ended December 31, 2024.
Financial Summary:
Three Months Ended December
31,
$ in millions 2024 2023 % Change
Revenue $7.4 $7.3 1.5 %
Gross Profit $1.9 $2.2 -11.0 %
Operating Expenses $4.4 $4.0 11.7 %
Net Income (Loss) ($2.6) ($1.7) 52.4 %
EBITDA* (non-GAAP) ($1.5) ($0.5) 228.9 %
Second Quarter Fiscal 2025 & Subsequent Highlights:
-- Announced the acquisition of G5 Infrared ("G5"), a leading high-end
infrared camera systems manufacturer, part of LightPath's strategic
vision to become a leading vertically integrated infrared ("IR") imaging
solutions provider, and financing related to the transaction
-- Began sustained delivery of infrared assemblies to a European defense
customer for active-duty use in First-Person View ("FPV") drone
applications
-- Launched new optical gas imaging ("OGI") cameras, including:
-- OGI cameras for ammonia and sulfur hexafluoride ("SF6") detection at
industrial and manufacturing facilities
-- OGI cameras for detecting fugitive gas emissions for Oil & Gas
applications, launched at the CH4 Connections Conference
-- Awarded Phase 2 funding in U.S. Defense Department partnership to
qualify additional BlackDiamond glasses as germanium substitutes
-- Participated in leading investor conferences including the LD Micro Main
Event, the 27(th) Annual Needham Growth Conference and the Sequire
Investor Summit Puerto Rico
Management Commentary
Sam Rubin, President and Chief Executive Officer of LightPath, said: "The second quarter of fiscal 2025 was highlighted by the acquisition of G5 Infrared, marking a significant step forward as part of our evolution towards becoming a leading vertically integrated, global solutions provider for infrared imaging technologies for defense and commercial applications. G5 achieved preliminary unaudited calendar year 2024 revenues of more than $15 million and we believe there is significant room for near-term growth on the back of multiple programs of record and that we will benefit from G5's higher-average selling price ("ASP") and high-margin cooled infrared camera offering.
"G5 provides a highly incremental offering to LightPath, providing a broad range of cooled infrared camera solutions and assemblies, ranging from high performance mid wave zoom thermal imaging camera systems to thin film deposition services on a variety of infrared substrates, all of which are complimentary to our line of uncooled infrared cameras, infrared optics and infrared materials. The company has a significant pipeline of new business opportunities, with multiple program awards expected to begin production in the next two years. We believe that this will drive a robust growth profile and margins that will aid us as we pursue our long-term goal of 15% EBITDA margins at the corporate level. We expect to add significant value beyond the immediately accretive revenue stream and believe the acquisition will continue to drive future growth with its higher ASPs, incremental products and notable operational synergies - such as integrating their offerings with our proprietary BlackDiamond(TM) glass and in-house optics manufacturing capabilities.
"In the European market, during the quarter we received an initial development contract from a new European defense customer for the use of BlackDiamond glass in optical systems. We also began sustained delivery of infrared lens assemblies per the terms of the October 2024 Letter of Intent from a European defense customer for active duty use in FPV drone applications. This order highlights two exciting opportunities for LightPath, making the most of our European Defense license acquired last year, which positions us to supply products to one of the largest defense markets in the world. The order also highlights the growing use of drones and unmanned aerial vehicles for a variety of defense applications, giving our proprietary BlackDiamond(TM) chalcogenide-based glass materials an opportunity to become an important material for thermal cameras in these vehicles.
"We continued to expand our product portfolio and market potential with the launch of our OGI camera platform, a specialized technology utilizing IR cameras to detect and visualize emissions. Our first variation for oil and gas applications is useful for detecting methane, volatile organic compounds, hydrocarbons, and other industrial gases that can be harmful to the environment or human health. A second version was launched to detect fugitive ammonia and SF6 emissions for industrial and manufacturing applications. Not only are these cameras cost effective, highly sensitive, and operational without proprietary software, but they are also built with a non-germanium lens. This feature is becoming increasingly important to customers looking for insulation from the geopolitical supply chain issues plaguing competing Germanium based solutions - such as China's recent ban on the export of Germanium to the United States. On December 4, 2024, China announced further restrictions on export of Germanium to the U.S. altogether, as well as for dual-use applications in other countries as well. LightPath has been preparing for this day with the introduction of our BlackDiamond materials, qualification of those materials through our partnership with the U.S. Department of Defense - Defense Logistics Agency, and working with customers to redesign their systems to replace Germanium optics. Since China's announcement we have seen a growing interest and demand in our BlackDiamond materials and are encouraged to see customers begin the process to switch over to those materials.
"As we move into calendar year 2025, we look forward to integrating G5 into the LightPath family and benefiting from its strong pipeline of new business opportunities in the government and defense sectors. We also expect to move forward with key defense programs, including our bid to produce a design of a major missile program for the U.S. Army with Lockheed Martin. We are now starting to deliver flightworthy hardware for implementation into Lockheed Martin's initial live test units for this program, from which we believe the U.S. Army could make a decision as early as later this year. Taken together, we believe 2025 will build additional momentum toward our vision of becoming a vertically integrated, next-generation optics and imaging solutions provider," concluded Rubin.
Second Quarter Fiscal 2025 Financial Results
Revenue for the second quarter of fiscal 2025 increased 1.5% to $7.4 million, as compared to $7.3 million in the same quarter of the prior fiscal year. Revenue was split amongst the Company's product groups in the second quarter of fiscal 2025 as follows:
Product Group Revenue Second Quarter
of Second Quarter of % Change
($ in millions)** Fiscal 2025 Fiscal 2024
Infrared ("IR") Components $3.1 $3.6 -13 %
Visible Components $2.8 $2.7 3 %
Assemblies & Modules $0.9 $1.0 -13 %
Engineering Services $0.7 $0.1 797 %
** Numbers may not foot due to rounding
Gross profit decreased 11% to $1.9 million, or 26% of total revenues, in the second quarter of 2025, as compared to $2.2 million, or 30% of total revenues, in the same quarter of the prior fiscal year. The decrease in gross margin as a percentage of revenue is primarily due to differences in the product mix, coupled with some manufacturing yield issues in infrared components.
Operating expenses increased 12% to $4.4 million for the second quarter of fiscal 2025, as compared to $4.0 million in the same quarter of the prior fiscal year. The increase was primarily due to higher legal and consulting fees related to business development initiatives, including expenses associated with the G5 acquisition announced today, as well as increased sales and marketing spend to promote new products and an increase in materials spend for internally funded new product development projects.
Net loss in the second quarter of fiscal 2025 totaled $2.6 million, or $0.07 per basic and diluted share, as compared to $1.7 million, or $0.05 per basic and diluted share, in the same quarter of the prior fiscal year. The increase in net loss was primarily attributable to lower gross profit coupled with increased SG&A and new product development costs, as well as higher interest expense.
EBITDA* loss for the second quarter of fiscal 2025 was $1.5 million, compared to a loss of $0.5 million for the same period of the prior fiscal year. The decrease in EBITDA in the second quarter of fiscal 2025 was primarily attributable to lower gross profit coupled with increased SG&A, including legal and consulting expenses related to business development initiatives, and new product development costs.
G5 Acquisition & Second Quarter Fiscal 2025 Earnings Call
Management will host an investor conference call at 5:00 p.m. Eastern time today, Thursday, February 13, 2025, to discuss the Company's second quarter fiscal 2025 financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information:
Date: Thursday, February 13, 2025
Time: 5:00 p.m. Eastern time
U.S. Dial-in: 1-877-425-9470
International Dial-in: 1-201-389-0878
Conference ID: 13749940
Webcast: LPTH Q2 FY2025 Earnings Conference Call
Please join at least five minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Thursday, February 27, 2025. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13749940. A webcast replay will also be available using the webcast link above.
About LightPath Technologies
LightPath Technologies, Inc. (NASDAQ: LPTH) is a leading provider of next-generation optics and imaging systems for both defense and commercial applications. As a vertically integrated solutions provider with in-house engineering design support, LightPath's family of custom solutions range from proprietary BlackDiamond(TM) chalcogenide-based glass materials - sold under exclusive license from the U.S. Naval Research Laboratory - to complete infrared optical systems and thermal imaging assemblies. The Company's primary manufacturing footprint is located in Orlando, Florida with additional facilities in Texas, Latvia and China. To learn more, please visit www.lightpath.com.
*Use of Non-GAAP Financial Measures
To provide investors with additional information regarding financial results, this press release includes references to EBITDA, which is a non-GAAP financial measure. The Company calculates EBITDA by adjusting net income to exclude net interest expense, income tax expense or benefit, depreciation, and amortization.
A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP. The Company's management believes that this non-GAAP financial measure, when considered together with the GAAP financial measure, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that this non-GAAP financial measure enhances the ability of investors to analyze underlying business operations and understand performance. In addition, management may utilize these non-GAAP financial measures as guides in forecasting, budgeting, and planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP is presented in the table below.
LIGHTPATH TECHNOLOGIES, INC.
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
(unaudited)
Three Months Ended December 31, Three Months Ended December 31,
2024 2023 2024 2023
Net loss $(2,611,997) $(1,713,663) $(4,234,742) $(3,056,039)
Depreciation and 904,040 1,129,444 1,893,602 1,943,000
amortization
Income tax provision 44,525 76,058 60,161 115,604
Interest expense 169,053 53,788 318,413 111,399
EBITDA $(1,494,379) $(454,373) $(1,962,566) $(886,036)
% of revenue -20 % -6 % -12 % -6 %
Forward-Looking Statements
This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "guidance," "plan," "estimate," "will," "would," "project," "maintain," "intend," "expect," "anticipate," "prospect," "strategy," "future," "likely," "may," "should," "believe," "continue," "opportunity," "potential," and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the impact of varying demand for the Company products; the ability of the Company to obtain needed raw materials and components from its suppliers; actions governments, businesses, and individuals take in response to the pandemic, including restrictions on onsite commercial interactions; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; geopolitical tensions, the Russian-Ukraine conflict, and the Hamas/ Israel war; the effects of steps that the Company could take to reduce operating costs; the inability of the Company to sustain profitable sales growth, convert inventory to cash, or reduce its costs to maintain competitive prices for its products; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; and those factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(unaudited)
December 31, June 30,
Assets 2024 2024
Current assets:
Cash and cash equivalents $
3,201,066 $
3,480,268
Trade accounts receivable, net of allowance of $20,172 and $25,676 5,279,634 4,928,931
Inventories, net 6,428,439 6,551,059
Prepaid expenses and deposits 649,270 445,900
Other current assets 89,891 131,177
Total current assets 15,648,300 15,537,335
Property and equipment, net 14,054,829 15,210,612
Operating lease right-of-use assets 6,218,147 6,741,549
Intangible assets, net 2,960,252 3,650,739
Goodwill 6,764,127 6,764,127
Deferred tax assets, net 123,000 123,000
Other assets 59,536 59,602
Total assets $
45,828,191 $
48,086,964
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $
3,114,382 $
3,231,713
Accrued liabilities 1,448,584 1,911,867
Accrued payroll and benefits 1,445,924 1,446,452
Operating lease liabilities, current 997,957 1,059,998
Loans payable, current portion 3,017,443 209,170
Finance lease obligation, current portion 203,739 177,148
Total current liabilities 10,228,029 8,036,348
Deferred tax liabilities, net 323,402 326,197
Accrued liabilities, noncurrent 315,480 611,619
Finance lease obligation, less current portion 496,025 528,753
Operating lease liabilities, noncurrent 7,539,488 8,058,502
Loans payable, less current portion 222,829 325,880
Total liabilities 19,125,253 17,887,299
Commitments and Contingencies
Stockholders' equity:
Preferred stock: Series D, $.01 par value, voting; 500,000 shares authorized;
none issued and outstanding
Common stock: Class A, $.01 par value, voting; 94,500,000 shares 398,908 392,546
authorized; 39,890,834 and 39,254,643 shares issued and outstanding
Additional paid-in capital 246,051,852 245,140,758
Accumulated other comprehensive income 330,495 509,936
Accumulated deficit (220,078,317) (215,843,575)
Total stockholders' equity 26,702,938 30,199,665
Total liabilities and stockholders' equity $
45,828,191 $
48,086,964
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2024 2023 2024 2023
Revenue, net $
7,424,829 $
7,315,637 $
15,825,210 $
15,392,885
Cost of sales 5,493,998 5,147,316 11,049,950 10,892,858
Gross profit 1,930,831 2,168,321 4,775,260 4,500,027
Operating expenses:
Selling, general and administrative 3,356,063 2,858,457 6,626,646 5,519,625
New product development 764,396 607,747 1,240,837 1,247,636
Amortization of intangible assets 294,711 485,446 690,487 766,717
Loss on disposal of property and equipment 78,437
Total operating expenses 4,415,170 3,951,650 8,636,407 7,533,978
Operating loss (2,484,339) (1,783,329) (3,861,147) (3,033,951)
Other income (expense):
Interest expense, net (169,053) (53,788) (318,413) (111,399)
Other income, net 85,920 199,512 4,979 204,915
Total other expense, net (83,133) 145,724 (313,434) 93,516
Loss before income taxes (2,567,472) (1,637,605) (4,174,581) (2,940,435)
Income tax provision 44,525 76,058 60,161 115,604
Net loss $
(2,611,997) $
(1,713,663) $
(4,234,742) $
(3,056,039)
Foreign currency translation adjustment (451,035) 259,973 (179,441) 134,765
Comprehensive loss $
(3,063,032) $
(1,453,690) $
(4,414,183) $
(2,921,274)
Loss per common share (basic) $
(0.07) $
(0.05) $
(0.11) $
(0.08)
Number of shares used in per share calculation 39,728,933 37,501,683 39,645,206 37,466,714
(basic)
Loss per common share (diluted) $
(0.07) $
(0.05) $
(0.11) $
(0.08)
Number of shares used in per share calculation 39,728,933 37,501,683 39,645,206 37,466,714
(diluted)
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Changes in Stockholders' Equity
(unaudited)
Accumulated
Class A Additional Other Total
Common Stock Paid-in Comphrehensive Accumulated Stockholders'
Shares Amount Capital Income Deficit Equity
Balances at 39,254,643 $
392,546 $
245,140,758 $
509,936 $
(215,843,575) $
30,199,665
June 30, 2024
Issuance of
common stock
for:
Employee 8,232 82 10,290 10,372
Stock Purchase
Plan
Exercise of 70,309 703 (703)
Stock Options,
RSUs & RSAs,
net
Issuance of 279,553 2,796 318,562 321,358
common stock
for acquisition
of Visimid
Stock-based 264,475 264,475
compensation
on stock
options, RSUs
& RSAs
Foreign 271,594 271,594
currency
translation
adjustment
Net loss (1,622,745) (1,622,745)
Balances at 39,612,737 $
396,127 $
245,733,382 $
781,530 $
(217,466,320) $
29,444,719
September 30,
2024
Issuance of
common stock
for:
Exercise of 229,097 2,291 (2,291)
Stock Options,
RSUs & RSAs,
net
Shares issued as 49,000 490 89,180 89,670
compensation
Stock-based 231,581 231,581
compensation
on stock
options, RSUs
& RSAs
Foreign (451,035) (451,035)
currency
translation
adjustment
Net loss (2,611,997) (2,611,997)
Balances at 39,890,834 $
398,908 $
246,051,852 $
330,495 $
(220,078,317) $
26,702,938
December 31,
2024
Balances at 37,344,739 $
373,447 $
242,808,771 $
606,536 $
(207,836,229) $
35,952,525
June 30, 2023
Issuance of
common stock
for:
Employee 14,607 146 19,573 19,719
Stock Purchase
Plan
Exercise of 14,482 145 (145)
Stock Options,
RSUs & RSAs,
net
Issuance of 81,610 816 149,184 150,000
common stock
for acquisition
of Visimid
Stock-based 240,075 240,075
compensation
on stock
options, RSUs
& RSAs
Foreign (125,208) (125,208)
currency
translation
adjustment
Net loss (1,342,376) (1,342,376)
Balances at 37,455,438 $
374,554 $
243,217,458 $
481,328 $
(209,178,605) $
34,894,735
September 30,
2023
Issuance of
common stock
for:
Exercise of 93,940 940 (940)
Stock Options,
RSUs & RSAs,
net
Stock-based 258,691 258,691
compensation
on stock
options, RSUs
& RSAs
Foreign 259,973 259,973
currency
translation
adjustment
Net loss (1,713,663) (1,713,663)
Balances at 37,549,378 $
375,494 $
243,475,209 $
741,301 $
(210,892,268) $
33,699,736
December 31,
2023
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended
December 31,
2024 2023
Cash flows from operating activities:
Net loss $
(4,234,742) $
(3,056,039)
Adjustments to reconcile net loss to net cash (used in) provided by operating
activities:
Depreciation and amortization 1,893,602 1,943,000
Interest from amortization of loan issuance costs 120,833
Loss on disposal of property and equipment 78,437
Stock-based compensation on stock options, RSUs & RSAs, net 506,020 551,853
Provision for credit losses (2,236)
Change in operating lease assets and liabilities (57,653) 80,355
Inventory write-offs to allowance 135,625 73,569
Deferred taxes (2,795) 9,395
Changes in operating assets and liabilities:
Trade accounts receivable (350,703) 1,717,283
Other current assets 41,286 (191,381)
Inventories (13,005) 54,461
Prepaid expenses and deposits (123,598) 94,619
Accounts payable and accrued liabilities (430,923) (424,310)
Net cash (used in) provided by operating activities (2,437,616) 850,569
Cash flows from investing activities:
Purchase of property and equipment (160,155) (1,484,401)
Proceeds from sale of equipment 10,648
Proceeds from sale-leaseback of equipment 364,710
Acquisition of Visimid, net of cash acquired (722,141)
Net cash used in investing activities (149,507) (1,841,832)
Cash flows from financing activities:
Proceeds from sale of common stock from Employee Stock Purchase Plan 10,372 19,719
Deferred payment for acquisition of Visimid (125,000)
Loan issuance costs (300,000)
Borrowings on loans payable 3,000,000 142,853
Payments on loans payable (106,486) (407,510)
Repayment of finance lease obligations (89,705) (58,785)
Net cash provided by (used in) financing activities 2,389,181 (303,723)
Effect of exchange rate on cash and cash equivalents (81,260) 32,698
Change in cash, cash equivalents and restricted cash (279,202) (1,262,288)
Cash, cash equivalents and restricted cash, beginning of period 3,480,268 7,144,490
Cash, cash equivalents and restricted cash, end of period $
3,201,066 $
5,882,202
Supplemental disclosure of cash flow information:
Interest paid in cash $
40,838 $
110,774
Income taxes paid $
61,427 $
114,953
Supplemental disclosure of non-cash investing & financing activities:
Purchase of equipment through finance lease arrangements $
93,048 $
61,654
Issuance of common stock for acquisition of Visimid $
321,358 $
150,000
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SOURCE LightPath Technologies
