LightPath Technologies Reports Third Quarter Fiscal 2025 Financial Results

, /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," "we," or "our"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced financial results for its fiscal third quarter ended March 31, 2025. Financial Summary: Three Months Ended March 31, $ in millions 2025 2024 % Change Revenue $9.2 $7.7 19.1 % Gross Profit $2.7 $1.6 65.9 % Operating Expenses $6.0 $4.2 42.9 % Net Income (Loss) ($3.6) ($2.6) 37.1 % Adj. EBITDA* (non-GAAP) ($2.0) ($1.5) (31.3 %) Third Quarter Fiscal 2025 & Subsequent Highlights: Closed 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 imaging solutions provider. Awarded an initial $2.2 million engineering development model (EDM) order for infrared cameras by L3Harris Technologies to support the Navy's Shipboard Panoramic Electro-Optic/Infrared (SPEIR) Program. Received a $4.8 million initial qualification order for infrared cameras with a new defense industry customer, for planned delivery in calendar year 2025. Secured $4.9 million order for cooled infrared cameras with existing defense customer, for planned delivery in fiscal 2026. Participated in leading industry and investor conferences including the Photonics Spectra Infrared Imaging Summit 2025, SPIE Defense + Commercial Sensing, Advanced Infrared Solutions at 2025 Border Security Expo, 27th Annual Needham Growth Conference, and Sequire Investor Summit Puerto Rico. Management Commentary Sam Rubin, President and Chief Executive Officer of LightPath, said: "The closing of our acquisition of G5 Infrared, and the subsequent three significant orders for this new subsidiary, helped to accelerate execution of our strategic vision to become a leading vertically-integrated infrared imaging solutions provider in the $9 billion infrared imaging market. 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 complementary to our line of uncooled infrared cameras, infrared optics and infrared materials. "G5's significant pipeline of new business opportunities, with multiple program awards expected to begin production in the next two years, was highlighted recently by three new orders that validate our accretive acquisition. A $4.8 million initial qualification order with a new defense industry customer and a $4.9 million follow-on order with an existing defense industry customer was followed by an initial $2.2 million engineering development model order by L3Harris Technologies – all of which were for infrared cameras from our growing portfolio of cooled and uncooled camera solutions. G5's revenue is primarily driven by established multi-year contracts and multiple programs of record in shipboard long-range surveillance, border security, and counter UAS systems, as well as recurring federal, naval, and law enforcement programs. We expect to add significant value beyond G5's initial accretive revenue stream and believe the acquisition will continue to drive future growth with its higher average selling price and higher-margin cooled infrared camera offerings, incremental products, as well as notable operational synergies – such as integrating their offerings with our proprietary BlackDiamond™ glass and in-house optics manufacturing capabilities. "Looking ahead, we expect continued momentum for our product portfolio and market potential with our Germanium-free BlackDiamond™ infrared imaging solutions. With supply chain issues plaguing competing Germanium based solutions – such as China's recent ban on the export of Germanium to the United States – our BlackDiamond products are becoming increasingly important to customers. While the China ban has of course impacted the small proportion of our legacy business that still leverages Germanium, we continue to transition our business to utilize our BlackDiamond™ solutions. "We are moving 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 program test units and believe the U.S. Army could potentially make a contractor selection decision late this year or early next year. With the integration of G5, we believe we are well positioned to be the optical solutions provider of choice for high value customers with an accelerating pipeline of government and military projects with key defense customers," concluded Rubin. Third Quarter Fiscal 2025 Financial Results Revenue for the third quarter of fiscal 2025 increased 19.1% to $9.2 million, as compared to $7.7 million in the same quarter of the prior fiscal year. Revenue was split amongst the Company's product groups in the third quarter of fiscal 2025 as follows: Product Group Revenue ($ in millions)** Third Quarter of Fiscal 2025 Third Quarter of Fiscal 2024 % Change Infrared Components $3.6 $3.6 0 % Visible Components $2.8 $2.7 6 % Assemblies & Modules $1.9 $0.8 123 % Engineering Services $0.8 $0.5 54 % ** Numbers may not foot due to rounding Gross profit increased 65.9% to $2.7 million, or 29.1% of total revenues, in the third quarter of 2025, as compared to $1.6 million, or 20.9% of total revenues, in the same quarter of the prior fiscal year. The increase in gross margin as a percentage of revenue is primarily due to a more favorable product mix, with more revenue from assemblies and modules and engineering services, which typically have higher margins than infrared components. Operating expenses increased 42.9% to $6.0 million for the third quarter of fiscal 2025, as compared to $4.2 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 and strategic initiatives, including expenses associated with the G5 acquisition, 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 third quarter of fiscal 2025 totaled $3.6 million, or $0.09 per basic and diluted share, as compared to $2.6 million, or $0.07 per basic and diluted share, in the same quarter of the prior fiscal year. Adjusted EBITDA* loss for the third quarter of fiscal 2025 was $2.0 million, compared to a loss of $1.5 million for the same period of the prior fiscal year. Third Quarter Fiscal 2025 Earnings Call Management will host an investor conference call at 5:00 p.m. Eastern time today, Thursday, May 15, 2025, to discuss the Company's third 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, May 15, 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: 13749941 Webcast: LPTH Q3 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, May 29, 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 13749941. 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™ 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, New Hampshire, 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 and adjusted EBITDA, which are non-GAAP financial measures. The Company calculates EBITDA by adjusting net income to exclude net interest expense, income tax expense or benefit, depreciation, and amortization. We also calculate adjusted EBITDA, which excludes: (1) the effect of the non-cash income or expense associated with the mark-to-market adjustments, related to the warrants; and (2) the loss on extinguishment of debt. The fair value of the warrants is re-measured each reporting period until the warrants are either exercised or expired (which expiration occurs on February 18, 2031). 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 these non-GAAP financial measures, when considered together with the GAAP financial measures, 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 these non-GAAP financial measures enhance 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 March 31, Nine Months EndedMarch 31, 2025 2024 2025 2024 Net loss $ (3,560,349) $ (2,597,534) $ (7,795,091) $ (5,653,573) Depreciation and amortization 1,463,150 1,042,850 3,356,752 2,985,850 Income tax provision 100,031 5,798 160,192 121,402 Interest expense 498,862 37,649 817,275 149,048 EBITDA $ (1,498,306) $ (1,511,237) $ (3,460,872) $ (2,397,273) Loss on extinguishment of debt 418,502 418,502 Change in fair value of warrant liability (904,694) (904,694) Adjusted EBITDA $ (1,984,498) $ (1,511,237) $ (3,947,064) $ (2,397,273) % of revenue -22 % -20 % -16 % -10 % 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 include, without limitation, statements regarding: (i) anticipated timing for program awards, as well as any resulting impact on our financial performance; (ii) the impact of the G5 acquisition on our business and results of operations; (iii) the performance of our product portfolio and expected market potential with our products and (iv) expectations regarding our ability to secure government and military projects with certain customers. 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; the impact of tariffs and other governmental trade restrictions; 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 the Company in its public filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K and other filings with the SEC. 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 SEC, 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) March 31, June 30, Assets 2025 2024 Current assets: Cash and cash equivalents $ 6,478,885 $ 3,480,268 Trade accounts receivable, net of allowance of $23,514 and $25,676 7,651,086 4,928,931 Inventories, net 12,687,225 6,551,059 Prepaid expenses and deposits 1,206,115 445,900 Other current assets 57,815 131,177 Total current assets 28,081,126 15,537,335 Property and equipment, net 15,461,601 15,210,612 Operating lease right-of-use assets 6,457,530 6,741,549 Intangible assets, net 21,476,226 3,650,739 Goodwill 9,741,473 6,764,127 Deferred tax assets, net 123,000 123,000 Other assets 79,860 59,602 Total assets $ 81,420,816 $ 48,086,964 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 5,737,240 $ 3,231,713 Accrued liabilities 3,079,036 1,911,867 Accrued payroll and benefits 1,752,940 1,446,452 Operating lease liabilities, current 1,271,740 1,059,998 Loans payable, current portion 185,631 209,170 Finance lease obligation, current portion 203,954 177,148 Total current liabilities 12,230,541 8,036,348 Deferred tax liabilities, net 1,498,479 326,197 Accrued liabilities, noncurrent 937,000 611,619 Finance lease obligation, less current portion 457,441 528,753 Operating lease liabilities, noncurrent 7,518,766 8,058,502 Loans payable, less current portion 4,693,544 325,880 Warrant liability 4,116,357 Total liabilities 31,452,128 17,887,299 Commitments and Contingencies Series G Convertible Preferred Stock; $0.01 par value $ 34,399,622 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 authorized; 42,893,563 and 39,254,643 shares issued and outstanding 428,936 392,546 Additional paid-in capital 238,327,729 245,140,758 Accumulated other comprehensive income 451,067 509,936 Accumulated deficit (223,638,666) (215,843,575) Total stockholders equity 15,569,066 30,199,665 Total liabilities, convertible preferred stock and stockholders equity $ 81,420,816 $ 48,086,964 LIGHTPATH TECHNOLOGIES, INC. Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) Three Months Ended Nine Months Ended March 31, March 31, 2025 2024 2025 2024 Revenue, net $ 9,167,627 $ 7,699,175 $ 24,992,837 $ 23,092,060 Cost of sales 6,503,526 6,092,988 17,553,476 16,985,846 Gross profit 2,664,101 1,606,187 7,439,361 6,106,214 Operating expenses: Selling, general and administrative 4,448,359 3,171,770 11,075,005 8,691,395 New product development 757,938 569,962 1,998,775 1,817,598 Amortization of intangible assets 779,025 434,403 1,469,512 1,201,120 Loss on disposal of property and equipment 2,068 13,248 80,505 13,248 Total operating expenses 5,987,390 4,189,383 14,623,797 11,723,361 Operating loss (3,323,289) (2,583,196) (7,184,436) (5,617,147) Other income (expense): Interest expense, net (498,862) (37,649) (817,275) (149,048) Loss on extinguishment of debt (418,502) (418,502) Change in fair value of warrant liability 904,694 904,694 Other income (expense), net (124,359) 29,109 (119,380) 234,024 Total other income (expense), net (137,029) (8,540) (450,463) 84,976 Loss before income taxes (3,460,318) (2,591,736) (7,634,899) (5,532,171) Income tax provision 100,031 5,798 160,192 121,402 Net loss $ (3,560,349) $ (2,597,534) $ (7,795,091) $ (5,653,573) Foreign currency translation adjustment 120,572 (112,356) (58,869) 22,409 Comprehensive loss $ (3,439,777) $ (2,709,890) $ (7,853,960) $ (5,631,164) Loss per common share (basic) $ (0.09) $ (0.07) $ (0.19) $ (0.15) Number of shares used in per share calculation (basic) 41,363,643 37,988,770 40,209,657 37,639,464 Loss per common share (diluted) $ (0.09) $ (0.07) $ (0.19) $ (0.15) Number of shares used in per share calculation (diluted) 41,363,643 37,988,770 40,209,657 37,639,464 LIGHTPATH TECHNOLOGIES, INC. Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) Temporary Equity Accumulated Series G Convertible Class A Additional Other Total Preferred Stock Common Stock Paid-in Comprehensive Accumulated Stockholders Shares Amount Shares Amount Capital Income Deficit Equity Balances at June 30, 2024 39,254,643 $ 392,546 $ 245,140,758 $ 509,936 $ (215,843,575) $ 30,199,665 Issuance of common stock for: Employee Stock Purchase Plan 8,232 82 10,290 10,372 Exercise of Stock Options, RSUs & RSAs, net 70,309 703 (703) Issuance of common stock for acquisition of Visimid 279,553 2,796 318,562 321,358 Stock-based compensation on stock options, RSUs & RSAs 264,475 264,475 Foreign currency translation adjustment 271,594 271,594 Net loss (1,622,745) (1,622,745) Balances at September 30, 2024 39,612,737 $ 396,127 $ 245,733,382 $ 781,530 $ (217,466,320) $ 29,444,719 Issuance of common stock for: Exercise of Stock Options, RSUs & RSAs, net 229,097 2,291 (2,291) Shares issued as compensation 49,000 490 89,180 89,670 Stock-based compensation on stock options, RSUs & RSAs 231,581 231,581 Foreign currency translation adjustment (451,035) (451,035) Net loss (2,611,997) (2,611,997) Balances at December 31, 2024 39,890,834 $ 398,908 $ 246,051,852 $ 330,495 $ (220,078,317) $ 26,702,938 Issuance of preferred stock under private equity placement, net of fees 255 20,968590 (1,320,102) (1,320,102) Issuance of common stock for: Employee Stock Purchase Plan 1,137 11 4,002 4,013 Exercise of Stock Options, RSUs & RSAs, net 238,641 2,387 788 3,175 Issuance of common stock for acquisition of Visimid 102,700 1,027 391,561 392,588 Issuance of common stock for acquisition of G5 1,972,501 19,725 4,852,343 4,872,068 Issuance of common stock under private equity placement, net of fees 687,750 6,878 1,584,014 1,590,892 Preferred cumulative dividends plus accretion 13,431,032 (13,431,032) (13,431,032) Stock-based compensation on stock options, RSUs & RSAs 194,303 194,303 Foreign currency translation adjustment 120,572 120,572 Net loss (3,560,349) (3,560,349) Balances at March 31, 2025 255 $ 34,399,622 42,893,563 $ 428,936 $ 238,327,729 $ 451,067 $ (223,638,666) $ 15,569,066 Balances at June 30, 2023 37,344,739 $ 373,447 $ 242,808,771 $ 606,536 $ (207,836,229) $ 35,952,525 Issuance of common stock for: Employee Stock Purchase Plan 14,607 146 19,573 19,719 Exercise of Stock Options, RSUs & RSAs, net 14,482 145 (145) Issuance of common stock for acquisition of Visimid 81,610 816 149,184 150,000 Stock-based compensation on stock options, RSUs & RSAs 240,075 240,075 Foreign currency translation adjustment (125,208) (125,208) Net loss (1,342,376) (1,342,376) Balances at September 30, 2023 37,455,438 $ 374,554 $ 243,217,458 $ 481,328 $ (209,178,605) $ 34,894,735 Issuance of common stock for: Exercise of Stock Options, RSUs & RSAs, net 93,940 940 (940) Stock-based compensation on stock options, RSUs & RSAs 258,691 258,691 Foreign currency translation adjustment 259,973 259,973 Net loss (1,713,663) (1,713,663) Balances at December 31, 2023 37,549,378 $ 375,494 $ 243,475,209 $ 741,301 $ (210,892,268) $ 33,699,736 Issuance of common stock for: Employee Stock Purchase Plan 15,840 158 19,800 19,958 Exercise of Stock Options, RSUs & RSAs, net 225,814 2,258 (2,258) Issuance of common stock for acquisition of Visimid 267,176 2,672 333,382 336,054 Issuance of common stock under public equity placement 68,041 680 97,528 98,208 Stock-based compensation on stock options, RSUs & RSAs 264,492 264,492 Foreign currency translation adjustment (112,356) (112,356) Net loss (2,597,534) (2,597,534) Balances at March 31, 2024 38,126,249 $ 381,262 $ 244,188,153 $ 628,945 $ (213,489,802) $ 31,708,558 Issuance of common stock for: Exercise of Stock Options, RSUs & RSAs, net 610,952 6,110 (6,110) Issuance of common stock under public equity placement 517,442 5,174 702,950 708,124 Stock-based compensation on stock options, RSUs & RSAs 255,765 255,765 Foreign currency translation adjustment (119,009) (119,009) Net loss (2,353,773) (2,353,773) Balances at June 30, 2024 39,254,643 $ 392,546 $ 245,140,758 $ 509,936 $ (215,843,575) $ 30,199,665 LIGHTPATH TECHNOLOGIES, INC. Condensed Consolidated Statements of Cash Flows (unaudited) Nine Months EndedMarch 31, 2025 2024 Cash flows from operating activities: Net loss $ (7,795,091) $ (5,653,573) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 3,356,752 2,985,850 Interest from amortization of loan issuance costs 161,905 Loss on extinguishment of debt 418,502 Warrant issuance costs 318,777 Change in fair value of warrant liability (904,694) Loss on disposal of property and equipment 80,505 13,248 Stock-based compensation on stock options, RSUs & RSAs, net 745,155 763,258 Provision for credit losses (3,014) (4,422) Change in operating lease assets and liabilities (91,582) 47,693 Inventory write-offs to allowance 135,625 95,539 Deferred taxes (2,368) 8,573 Changes in operating assets and liabilities, net of acquisitions: Trade accounts receivable (822,043) 1,766,594 Other current assets 73,362 (419,797) Inventories (1,206,340) 725,460 Prepaid expenses and deposits (360,439) 95,900 Accounts payable and accrued liabilities 520,289 32,020 Net cash (used in) provided by operating activities (5,374,699) 456,343 Cash flows from investing activities: Purchase of property and equipment (580,726) (1,892,660) Proceeds from sale of equipment 10,648 Proceeds from sale-leaseback of equipment 364,710 Acquisition of G5 (20,250,011) Acquisition of Visimid, net of cash acquired (847,141) Net cash used in investing activities (20,820,089) (2,375,091) Cash flows from financing activities: Proceeds from exercise of stock options 3,175 Proceeds from sale of common stock from Employee Stock Purchase Plan 14,385 39,677 Proceeds from issuance of common stock under public equity placement 98,208 Proceeds from issuance of common stock under private equity placement 437,725 Proceeds from issuance of preferred stock under private equity placement 18,842,138 Proceeds from issuance of warrants under private equity placement 4,313,813 Deferred payment for acquisition of Visimid (125,000) Borrowings on loans payable 6,659,596 142,853 Loan issuance costs (597,465) Payments on loans payable (149,118) (2,262,798) Repayment of finance lease obligations (133,711) (87,610) Net cash provided by (used in) financing activities 29,265,538 (2,069,670) Effect of exchange rate on cash and cash equivalents (72,133) 2,880 Change in cash, cash equivalents and restricted cash 2,998,617 (3,985,538) Cash, cash equivalents and restricted cash, beginning of period 3,480,268 7,144,490 Cash, cash equivalents and restricted cash, end of period $ 6,478,885 $ 3,158,952 Supplemental disclosure of cash flow information: Interest paid in cash $ 66,136 $ 161,676 Income taxes paid $ 118,016 $ 120,787 Supplemental disclosure of non-cash investing & financing activities: Purchase of equipment through finance lease arrangements $ 93,048 $ 391,107 Issuance of common stock for acquisition of Visimid $ 713,946 $ 486,054 SOURCE LightPath Technologies WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

LightPath Technologies Reports Third Quarter Fiscal 2025 Financial Results

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