ORLANDO, Fla., Sept. 16 /PRNewswire-FirstCall/ -- LightPath
Technologies, Inc. (Nasdaq: LPTH) (the "Company", "LightPath", or
"we"), a global manufacturer, distributor and integrator of
patented optical components and high-level assemblies, announced
today its financial results for the fourth quarter and fiscal year
ended June 30, 2010. Actual results
were in line with the Company's preliminary results issued on
August 25, 2010. Full details are
available in the Company's Annual Report on Form 10-K filed today
with the SEC at www.sec.gov.
Highlights:
- Net income for the fourth quarter of fiscal 2010 was
approximately $92,000 compared to a
loss of approximately $318,000 for
the fourth quarter of fiscal 2009.
- Revenue for the fourth quarter of fiscal 2010 was $2.8 million compared to $1.6 million for the fourth quarter of fiscal
2009.
- Backlog scheduled to ship within the next 12 months was
$2.9 million as of June 30, 2010, an increase of $600,000 from June 30,
2009.
- Gross margin was 51% for the fourth quarter of fiscal 2010 as
compared to 33% for the fourth quarter of fiscal 2009.
- EBITDA for the fourth quarter of fiscal 2010 improved to income
of $488,000 compared to a loss of
$21,000 in the fourth quarter of
fiscal 2009.
- Cash on hand as of June 30, 2010
was $1.5 million as compared to
$580,000 on June 30, 2009.
- Unit shipment volume in precision molded optics was up 292% in
the fourth quarter of fiscal 2010 compared to the same period last
year.
Jim Gaynor, President and Chief
Executive Officer of LightPath, commented, "I am pleased to report
LightPath has continued its trend of positive net income in the
fourth quarter of fiscal 2010. During the fourth quarter, our
revenues rose 75% over the same quarter in the prior year, gross
margin increased both from the third quarter to the fourth quarter
and year-over-year to 51% and expenses remained relatively flat.
Unit shipment volume in precision molded optics increased
substantially by 292% in the fourth quarter of fiscal 2010 compared
to the same period last year."
Gaynor continued, "One measure the Company uses to measure
performance is EBITDA. EBITDA has improved from a loss of
$21,000 in the fourth quarter of
fiscal 2009 to income of $488,000 in
the fourth quarter of fiscal 2010, a gain of $509,000. As we continue to grow our
top-line and increase our unit volume, we anticipate better fixed
cost utilization. A greater percentage of our revenues will drop to
the bottom-line, delivering gross margin, EBITDA and net income
improvements going forward."
"While the U.S. optics market showed signs of an economic
rebound in fiscal 2010, Asia
represents a significant new market for future growth. Our
Shanghai-based facility has taken over 95% of our total production
and has enabled us to make the transition into low-cost,
high-volume production. While we continue to implement this new
business strategy, we anticipate production levels to ramp up
significantly at our Shanghai
facility. Minimal capital expenditure would be required for future
expansion, providing us the ability to meet growing demand for
high-volume, low-cost lenses used in laser systems, laser tools,
biomedical instrumentation, and telecommunications equipment,
primarily produced by Original Equipment Manufacturers based in
Asia," Gaynor added.
He concluded, "Overall, given the uncertain market conditions,
our outlook for the future is positive but cautious over the
short-term. Given the opportunities we see for LightPath in the low
cost commercial markets and infrared markets, especially in
Asia, we are very optimistic for
our long-term business. Our efforts to penetrate high-volume, lower
cost commercial markets in Asia
show tremendous promise for the upcoming fiscal year. We are
excited by the acceptance of the new products, such as our blue
laser collimating lenses, which have shown quick market uptake and
helped contribute to increased quote activity in recent weeks. We
expect our upward growth trend to continue in fiscal 2011."
Financial Results for Three Months Ended June 30, 2010
Revenue for the fourth quarter of fiscal 2010 totaled
$2.8 million compared to $1.6 million for the fourth quarter of fiscal
2009, an increase of 75%. The increase from the fourth quarter of
fiscal 2009 was primarily attributable to higher sales volumes of
precision molded optics, GRADIUM lenses and isolators. Our
precision molded optics sales units were significantly higher as a
result of our increased production capability and our pursuit of
high volume low cost lens business. Our current cost structure has
allowed us to sell product at lower prices while improving gross
margins. Growth in sales going forward is expected to be derived
primarily from the precision molded optics product line,
particularly our low cost lenses being sold in Asia.
Our gross margin percentage in the fourth quarter of fiscal 2010
compared to the fourth quarter of fiscal 2009 increased to 51% from
33%. Total manufacturing cost of $1.4
million was approximately $310,000 higher in the fourth quarter of fiscal
2010 compared to the same period of the prior fiscal year. The
manufacturing cost increase was a reflection of an increase in
costs in order to support higher production and sales volumes. Unit
shipment volume in precision molded optics was up 292% in the
fourth fiscal quarter of 2010 compared to the same period last
year. This resulted in better absorption of overhead costs which in
turn resulted in improved fixed cost utilization and lowers our
unit cost. Direct costs, which include material, labor and
services increased to 26% of revenue in the fourth quarter of
fiscal 2010, as compared to 23% of revenue in the fourth quarter of
fiscal 2009 due to a product mix change. Gross margins improved as
a result of the cost reduction programs we have implemented, better
production yields and efficiencies and improved overhead absorption
with the increased volume.
During the fourth quarter of fiscal 2010, total costs and
expenses increased $465,000 to $1.2
million compared to $690,000
for the same period in fiscal 2009. Expenses in the fourth quarter
of last year were $370,000 lower due
to non recurring events resulting in reductions to general and
administrative expenses; receipt of $183,000 from our D&O insurance carrier as a
refund of legal expenses and receipt of $186,000 in excess cost reimbursement from the
Chinese government related to the move of our manufacturing
facility in Shanghai.
Included in total costs and expenses for the fourth quarter
of fiscal 2010 were $937,000 in
selling, general and administrative expenses. As a result, total
operating income for the fourth quarter of fiscal 2010 improved to
$282,000 compared to a loss of
($159,000) for the same period in
fiscal 2009.
Interest expense was approximately $193,000 in the fourth quarter of fiscal 2010 as
compared to $163,000 in the fourth
quarter of fiscal 2009. The convertible debentures issued in
August 1, 2008 accounted for
approximately $193,000 of interest
during the quarter ended June 30,
2010. This includes periodic interest at 8% and
amortization of the related debt issuance costs and debt discount,
and write off of debt issue costs, prepaid interest and debt
discount for debentures converted into shares of common stock
during the fourth quarter of fiscal 2010.
Net income for the fourth quarter of fiscal 2010 was
$92,000 or $0.01 per basic and diluted common share,
compared with a net loss of ($318,000) or ($0.05) per basic and diluted per common share
for the same period in fiscal 2009. This represents a
$410,000 increase in net income
compared to the fourth quarter of fiscal 2009. Weighted-average
basic shares outstanding increased to 8,858,563 in the fourth
quarter of fiscal 2010 compared to 6,691,966 in the fourth quarter
in fiscal 2009 primarily due to the issuance of shares of common
stock related to the private placements in the first and fourth
quarter of fiscal 2010.
Financial Results for Year Ended June
30, 2010
Revenue for the fiscal year 2010 totaled $9.3 million compared to $7.5 million for fiscal year 2009, an increase of
24%. The increase from the prior fiscal year was primarily
attributable to higher sales volumes for precision molded optics
and GRADIUM lenses offset by lower sales for isolators and
collimators. Our precision molded optics sales units were
significantly higher but our average selling price was lower. This
is the result of our pursuit of producing high volume low cost
lenses. Our current cost structure has allowed us to sell product
at lower prices while improving gross margins. Growth in sales
going forward is expected to be derived primarily from the
precision molded optics product line, particularly our low cost
lenses being sold in Asia.
Our gross margin percentage in fiscal 2010 compared to fiscal
2009 increased to 47% from 27%. Total manufacturing cost of
$4.9 million was $511,000 lower in fiscal 2010 compared to the
prior fiscal year. This was due to lower production costs for labor
and materials. Unit shipment volume in precision molded optics is
up 176% in fiscal 2010 compared to last year. This resulted in
better absorption of overhead costs which in turn resulted in
improved fixed cost utilization and lower our unit cost.
Direct costs, which include material, labor and services were
24% of revenue in fiscal 2010, as compared to 23% in the prior
year. Gross margins improved as a result of the cost reduction
programs we implemented and better production yields and
efficiencies.
During fiscal 2010, total costs and expenses decreased
$398,000 to $4.2 million compared to
$4.6 million for fiscal 2009.
Included in total costs and expenses for fiscal 2010 were
$3.3 million in selling, general and
administrative expenses, which decreased $377,000 or 10% from $3.6
million in the prior fiscal year. We had a reduction of
$255,000 due to lower salaries and
benefits, a $29,000 reduction of
Director compensation, and decrease in legal costs of $262,000. We had higher investor relations
expenses of $267,000 for our new
radio and television campaign during fiscal 2010. During fiscal
2009 there were two non recurring events resulting in reductions to
general and administrative expenses; receipt of $183,000 from our D&O insurance carrier as a
refund of legal expenses and receipt of $186,000 in excess cost reimbursement from the
Chinese government related to the move of our manufacturing
facility in Shanghai. During
fiscal 2010 there were some one-time events resulting in a net
reduction of approximately $331,000
in general and administrative expenses; receipts of $556,000 on our D&O insurance as a refund for
legal expenses, a litigation settlement, $76,000 reduction of legal expenses related to
the reversal of accruals for litigation and reduction for reversal
of royalty accrual of approximately $68,000.
Interest expense was approximately $728,000 for fiscal 2010 as compared to
approximately $1,315,000 for fiscal
2009. Approximately $5,600 of the
interest expense for fiscal 2010 is attributable to our equipment
term loan and our capital equipment lease. The convertible
debentures issued on August 1, 2008
accounted for approximately $722,000
and $1.3 million of interest during
fiscal 2010 and 2009, respectively. This represents periodic
interest of 8%, amortization and write-off of the related debt
issuance costs and debt discount, for fiscal 2009 and value of
common shares and warrants issued as incentive to participate in
the December 2008 convertible
debenture placement and to induce the conversion of the debentures
to shares of common stock. On December
31, 2008, 25% of the debentures were converted into shares
of common stock and $304,382 of debt
discount and $121,255 of debt issue
costs were written-off to interest expense in the second quarter of
fiscal 2009. Included in these totals are related debt discount,
debt issue costs and prepaid interest for $262,500 of debentures which were converted into
common stock during fiscal 2010.
Net loss for fiscal 2010 was $561,000 or $0.07
per basic and diluted common share, compared with a net loss of
$3.8 million or $0.62 per basic and diluted per common share for
fiscal 2009. This represents a $3.3
million decrease in net loss compared to fiscal 2009.
Weighted-average shares outstanding increased to 8,139,852 in
fiscal 2010 compared to 6,167,827 in fiscal 2009 primarily due to
the issuance of shares of common stock related to the private
placement in the first and fourth quarters of fiscal 2010.
Cash and cash equivalents totaled $1.5
million at June 30, 2010.
Total current assets and total assets at June 30, 2010 were $4.8
million and $7.5 million
compared to $3.3 million and
$5.8 million, respectively, at
June 30, 2009. Total current
liabilities and total liabilities at June
30, 2010 were $1.1 million and
$3.2 million compared to $2.0 million and $4.1
million, respectively, for June 30,
2009. As a result, the current ratio as of June 30, 2010 improved to 4.41 to 1 compared to
1.59 to 1 as of June 30, 2009. Total
stockholders' equity at June 30, 2010
totaled $4.2 million compared to
$1.7 million at June 30, 2009.
As of June 30, 2010 our backlog of
orders scheduled to ship in the next 12 months, was $2.9 million compared to $2.3 million as of June
30, 2009.
Investor Conference Call and Webcast Details:
LightPath will host an audio conference call and webcast on
Thursday, September 16th at
4:00 p.m. EDT to discuss the
Company's financial and operational performance for the fourth
quarter of fiscal year 2010.
Conference Call Details
Date: Thursday, September 16,
2010
Time: 4:00 p.m. (EDT)
Dial-in Number: 1-877-407-8033
International Dial-in Number: 1-201-689-8033
It is recommended that participants dial-in approximately 5 to
10 minutes prior to the start of the 4:00
p.m. call. A transcript archive of the webcast will be
available for viewing or download on the company web site shortly
after the call is concluded.
About LightPath Technologies
LightPath manufactures optical products including precision
molded aspheric optics, GRADIUM® glass products, proprietary
collimator assemblies, laser components utilizing proprietary
automation technology, higher-level assemblies and packing
solutions. The Company's products are used in various markets,
including industrial, medical, defense, test & measurement and
telecommunications. LightPath has a strong patent portfolio that
has been granted or licensed to it in these fields. For more
information visit www.lightpath.com.
The discussions of our results as presented in this release
include use of non-GAAP terms "EBITDA" and "gross margin."
Gross margin is determined by deducting the cost of sales
from operating revenue. Cost of sales includes manufacturing direct
and indirect labor, materials, services, fixed costs for rent,
utilities and depreciation, and variable overhead. Gross margin
should not be considered an alternative to operating income or net
income, which are determined in accordance with Generally Accepted
Accounting Principles ("GAAP"). We believe that gross margin,
although a non-GAAP financial measure is useful and meaningful to
investors as a basis for making investment decisions. It provides
investors with information that demonstrates our cost
structure and provides funds for our total costs and expenses. We
use gross margin in measuring the performance of our business and
have historically analyzed and reported gross margin information
publicly. Other companies may calculate gross margin in a different
manner.
EBITDA is a non-GAAP financial measure used by management,
lenders and certain investors as a supplemental measure in the
evaluation of some aspects of a corporation's financial position
and core operating performance. Investors sometimes use EBITDA as
it allows for some level of comparability of profitability trends
between those businesses differing as to capital structure and
capital intensity by removing the impacts of depreciation,
amortization and interest expense. EBITDA also does not include
changes in major working capital items such as receivables,
inventory and payables, which can also indicate a significant need
for, or source of, cash. Since decisions regarding capital
investment and financing and changes in working capital components
can have a significant impact on cash flow, EBITDA is not a good
indicator of a business's cash flows. We use EBITDA for evaluating
the relative underlying performance of the Company's core
operations and for planning purposes. We calculate EBITDA by
adjusting net loss to exclude net interest expense, income tax
expense or benefit, depreciation and amortization, thus the term
"Earnings Before Interest, Taxes, Depreciation and Amortization"
and the acronym "EBITDA."
This news release includes statements that constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements regarding our ability to expand our presence
in certain markets, future sales growth, continuing reductions in
cash usage and implementation of new distribution channels. This
information may involve risks and uncertainties that could cause
actual results to differ materially from such forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, factors detailed by
LightPath Technologies, Inc. in its public filings with the
Securities and Exchange Commission. 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.
EBITDA
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Year ended
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss)
|
$
91,686
|
|
$
(317,568)
|
|
$
(560,959)
|
|
$
(3,823,060)
|
|
|
|
|
Depreciation and
amortization
|
203,249
|
|
133,483
|
|
700,475
|
|
565,988
|
|
|
|
|
Interest expense
|
193,488
|
|
162,942
|
|
727,937
|
|
1,336,520
|
|
|
|
|
|
EBITDA
|
$
488,423
|
|
$
(21,143)
|
|
$
867,453
|
|
$
(1,920,552)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Comparison of Selected
Profit and Loss Items As Reported
Compared to Excluded
Items
(000's)
|
|
|
Q4 2009
|
Q1 2010
|
Q2 2010
|
Q3 2010
|
Q4 2010
|
|
As reported:
|
|
|
|
|
|
|
Revenue
|
1,590
|
1,557
|
2,226
|
2,660
|
2,807
|
|
Gross profit
|
530
|
888
|
1,269
|
1,409
|
1,370
|
|
%
|
33%
|
43%
|
43%
|
47%
|
51%
|
|
Total costs and
expenses
|
690
|
1,196
|
754
|
1,048
|
1,155
|
|
Net income (loss)
|
(318)
|
(706)
|
42
|
12
|
92
|
|
EBITDA
|
(21)
|
(382)
|
363
|
397
|
488
|
|
|
|
|
|
|
|
|
Non recurring items
**
|
(274)
|
132
|
(298)
|
(36)
|
126
|
|
|
|
|
|
|
|
|
Excluding non-recurring
items:
|
|
|
|
|
|
|
Revenue
|
1,590
|
1,557
|
2,226
|
2,660
|
2,807
|
|
Gross profit
|
530
|
888
|
1,200
|
1,409
|
1,370
|
|
%
|
33%
|
57%
|
54%
|
53%
|
49%
|
|
Total costs and
expenses
|
964
|
1,064
|
984
|
1,084
|
1,029
|
|
Net income (loss)
|
(592)
|
(574)
|
(256)
|
(24)
|
218
|
|
EBITDA excluding non recurring
items
|
(295)
|
(250)
|
65
|
437
|
614
|
|
** Non-recurring items include:
D&O insurance claim proceeds, legal expenses related to
litigation settlement, business interruption payments for Shanghai
plant move and other miscellaneous items.
|
|
|
|
|
|
|
|
LIGHTPATH TECHNOLOGIES,
INC.
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
Assets
|
|
2010
|
|
2009
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,464,351
|
$
|
579,949
|
|
|
Trade accounts receivable, net
of allowance of $22,930 and $26,131
|
|
1,804,063
|
|
973,634
|
|
|
Inventories, net
|
|
1,137,678
|
|
983,278
|
|
|
Other receivables
|
|
-
|
|
183,413
|
|
|
Prepaid interest
expense
|
|
167,635
|
|
366,219
|
|
|
Prepaid expenses and other
assets
|
|
223,908
|
|
173,882
|
|
|
|
|
|
Total current assets
|
|
4,797,635
|
|
3,260,375
|
|
|
Property and equipment -
net
|
|
2,344,692
|
|
2,024,571
|
|
|
Intangible assets -
net
|
|
134,001
|
|
166,869
|
|
|
Debt costs, net
|
|
151,530
|
|
299,080
|
|
|
Other assets
|
|
27,737
|
|
78,701
|
|
|
|
|
|
Total assets
|
$
|
7,455,595
|
$
|
5,829,596
|
|
Liabilities and Stockholders’
Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
|
511,523
|
$
|
1,376,599
|
|
|
Accrued liabilities
|
|
179,370
|
|
181,318
|
|
|
Accrued payroll and
benefits
|
|
396,863
|
|
332,609
|
|
|
Note payable, current
portion
|
|
-
|
|
152,758
|
|
|
Capital lease obligation,
current portion
|
|
-
|
|
5,050
|
|
|
|
|
|
Total current
liabilities
|
|
1,087,756
|
|
2,048,334
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent
|
|
569,286
|
|
644,056
|
|
8% convertible debentures to
related parties, net of debt discount
|
|
213,890
|
|
175,255
|
|
8% convertible debentures, net
of debt discount
|
|
1,339,975
|
|
1,270,725
|
|
|
|
|
Total liabilities
|
|
3,210,907
|
|
4,138,370
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Preferred stock: Series D, $.01
par value, voting;
|
|
|
|
|
|
|
|
5,000,000 shares authorized;
none issued and outstanding
|
|
-
|
|
-
|
|
|
Common stock: Class A, $.01
par value, voting;
|
|
|
|
|
|
|
|
40,000,000 shares authorized;
8,971,638 and 6,696,992
|
|
|
|
|
|
|
|
shares issued and outstanding,
respectively
|
|
89,716
|
|
66,970
|
|
|
Additional paid-in
capital
|
|
206,277,806
|
|
203,151,364
|
|
|
Foreign currency translation
adjustment
|
|
23,466
|
|
58,233
|
|
|
Accumulated deficit
|
|
(202,146,300)
|
|
(201,585,341)
|
|
|
|
|
|
Total stockholders’
equity
|
|
4,244,688
|
|
1,691,226
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$
|
7,455,595
|
$
|
5,829,596
|
|
|
|
|
|
|
|
|
|
|
LIGHTPATH TECHNOLOGIES,
INC.
Consolidated Statements of
Operations
|
|
|
(Unaudited)
Three months
ended
June 30,
|
|
(audited)
Twelve months
ended
June 30,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Product sales, net
|
$
2,806,773
|
|
$ 1,589,692
|
|
$
9,250,621
|
|
$ 7,489,545
|
|
Cost of sales
|
1,369,525
|
|
1,059,235
|
|
4,935,755
|
|
5,446,518
|
|
|
|
|
|
Gross margin
|
1,437,248
|
|
530,457
|
|
4,314,866
|
|
2,043,027
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
937,129
|
|
480,838
|
|
3,259,551
|
|
3,636,093
|
|
|
New product
development
|
219,159
|
|
200,821
|
|
869,440
|
|
887,400
|
|
|
Amortization of
intangibles
|
8,217
|
|
8,217
|
|
32,868
|
|
32,868
|
|
|
Gain on sale of property and
equipment
|
(9,138)
|
|
-
|
|
(9,138)
|
|
(5,244)
|
|
|
|
|
|
Total costs and
expenses
|
1,155,367
|
|
689,876
|
|
4,152,721
|
|
4,551,117
|
|
|
|
|
|
Operating income
(loss)
|
281,881
|
|
(159,419)
|
|
162,145
|
|
(2,508,090)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(57,919)
|
|
(48,281)
|
|
(210,002)
|
|
(254,622)
|
|
|
Interest expense - debt
discount
|
(96,949)
|
|
(81,997)
|
|
(370,385)
|
|
(640,695)
|
|
|
Interest expense - debt
costs
|
(38,620)
|
|
(32,664)
|
|
(147,550)
|
|
(225,228)
|
|
|
Interest expense - warrants to
induce conversion
|
-
|
|
-
|
|
-
|
|
(215,975)
|
|
|
Investment and other
income
|
3,293
|
|
4,793
|
|
4,833
|
|
21,550
|
|
|
Total other expense,
net
|
(190,195)
|
|
(158,149)
|
|
(723,104)
|
|
(1,314,970)
|
|
|
|
|
Net income (loss)
|
$
91,686
|
|
$
(317,568)
|
|
$
(560,959)
|
|
$
(3,823,060)
|
|
Income (Loss) per common share
(basic)
|
$
0.01
|
|
$
(0.05)
|
|
$
(0.07)
|
|
$
(0.62)
|
|
Number of shares used in per
share calculation
|
8,858,563
|
|
6,691,966
|
|
8,139,852
|
|
6,167,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIGHTPATH TECHNOLOGIES,
INC.
Consolidated Statements of Cash
Flows
|
|
|
Year ended
June 30,
|
|
|
2010
|
|
2009
|
|
Cash flows from operating
activities
|
|
|
|
|
Net loss
|
$
(560,959)
|
|
$
(3,823,060)
|
|
Adjustments to reconcile net
loss to net cash used in operating activities:
|
|
|
|
|
Depreciation and amortization
|
700,475
|
|
565,988
|
|
Interest
from amortization of debt discount
|
370,385
|
|
640,695
|
|
Fair value
of warrants issued to induce debenture conversion
|
-
|
|
215,975
|
|
Interest
from amortization of debt costs
|
147,550
|
|
255,228
|
|
Issuance of common stock
for interest on convertible debentures
|
-
|
|
97,633
|
|
Common stock issued for
legal settlement
|
50,000
|
|
-
|
|
Gain on
sale of property and equipment
|
(9,138)
|
|
(5,244)
|
|
Stock based
compensation
|
160,416
|
|
156,267
|
|
Change in
provision for doubtful accounts receivable
|
(3,201)
|
|
(18,731)
|
|
Deferred
rent
|
(74,770)
|
|
421,238
|
|
Common
stock issued for payment of consulting services
|
150,000
|
|
61,799
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
Trade accounts
receivables
|
(827,228)
|
|
379,953
|
|
Other receivables
|
183,413
|
|
(183,413)
|
|
Inventories
|
(154,400)
|
|
340,277
|
|
Prepaid expenses
and other assets
|
199,522
|
|
81,125
|
|
Accounts payable and
accrued liabilities
|
(802,770)
|
|
(653,683)
|
|
Net cash used in operating
activities
|
(470,705)
|
|
(1,467,953)
|
|
Cash flows from investing
activities
|
|
|
|
|
Purchase of property and
equipment
|
(987,728)
|
|
(563,764)
|
|
Proceeds from sale of
equipment
|
9,138
|
|
37,791
|
|
Net cash used in investing
activities
|
(978,590)
|
|
(525,973)
|
|
Cash flows from financing
activities
|
|
|
|
|
Proceeds from exercise of stock
options
|
8,393
|
|
-
|
|
Proceeds from sale of common
stock, net of costs
|
2,371,688
|
|
-
|
|
Proceeds from sale of common
stock from employee stock purchase plan
|
6,857
|
|
14,220
|
|
Borrowings on 8% convertible
debenture, net of issuance costs
|
-
|
|
2,568,749
|
|
Exercise of warrants
|
139,334
|
|
-
|
|
Payments on secured note
payable
|
-
|
|
(260,828)
|
|
Payments on capital lease
obligation
|
(5,050)
|
|
(18,603)
|
|
Payments on note
payable
|
(152,758)
|
|
(124,984)
|
|
Net cash provided by financing
activities
|
2,368,464
|
|
2,178,554
|
|
Effect of exchange rate on cash
and cash equivalents
|
(34,767)
|
|
36,864
|
|
Increase in cash and cash
equivalents
|
884,402
|
|
221,492
|
|
Cash and cash equivalents,
beginning of period
|
579,949
|
|
358,457
|
|
Cash and cash equivalents, end
of period
|
$
1,464,351
|
|
$
579,949
|
|
Supplemental disclosure of cash
flow information:
|
|
|
|
|
Interest paid in
cash
|
$
3,477
|
|
$
34,817
|
|
Income taxes
paid
|
5,940
|
|
9,753
|
|
Supplemental disclosure of
non-cash investing & financing activities:
|
|
|
|
|
Convertible
debentures converted into common stock
|
262,500
|
|
732,250
|
|
Prepaid
interest through the issuance of common stock
|
-
|
|
453,993
|
|
Fair value of
warrants issued to broker of debt financing
|
-
|
|
194,057
|
|
Fair value of
warrants and incentive shares issued to debenture holders
|
-
|
|
790,830
|
|
Intrinsic value of
beneficial conversion feature underlying convertible
debentures
|
-
|
|
600,635
|
|
|
|
|
|
LIGHTPATH TECHNOLOGIES,
INC.
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
Years ended June 30, 2009 and
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
Class A
|
Additional
|
Currency
|
|
Total
|
|
|
|
|
|
|
Common Stock
|
Paid-in
|
Translation
|
Accumulated
|
Stockholders’
|
|
|
|
|
|
|
|
Shares
|
Amount
|
Capital
|
Adjustment
|
Deficit
|
Equity
|
|
|
|
|
|
Balances at June 30,
2008
|
5,331,664
|
$ 53,317
|
$ 199,847,356
|
$
21,369
|
$ (197,762,281)
|
$
2,159,761
|
|
|
|
|
|
Issuance of common stock
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current interest on convertible
debentures
|
103,971
|
1,040
|
96,593
|
-
|
-
|
97,633
|
|
|
|
|
|
|
Incentive to participate in
convertible debenture placement, recorded as debt
discount
|
73,228
|
732
|
74,399
|
-
|
-
|
75,131
|
|
|
|
|
|
|
Prepayment of future interest on
convertible debentures
|
589,614
|
5,896
|
448,099
|
-
|
-
|
453,995
|
|
|
|
|
|
|
Conversion of 25% of
debentures
|
475,496
|
4,755
|
727,495
|
-
|
-
|
732,250
|
|
|
|
|
|
|
Payment on consulting service
arrangements
|
74,839
|
748
|
61,051
|
-
|
-
|
61,799
|
|
|
|
|
|
|
Vested restricted stock
units
|
33,400
|
334
|
(334)
|
-
|
-
|
-
|
|
|
|
|
|
|
Employee Stock Purchase
Plan
|
14,780
|
148
|
14,072
|
-
|
-
|
14,220
|
|
|
|
|
|
Issuance of warrants to private
placement agent
|
|
|
|
-
|
-
|
|
|
|
|
|
|
recorded as debt
costs
|
-
|
-
|
194,057
|
-
|
-
|
194,057
|
|
|
|
|
|
on convertible
debentures
|
-
|
-
|
1,316,334
|
-
|
-
|
1,316,334
|
|
|
|
|
|
to convert
debentures
|
-
|
-
|
215,975
|
-
|
-
|
215,975
|
|
|
|
|
|
and restricted stock
units
|
-
|
-
|
156,267
|
-
|
-
|
156,267
|
|
|
|
|
|
Foreign currency translation
adjustment
|
|
|
|
36,864
|
|
36,864
|
|
|
|
|
|
Net loss
|
-
|
-
|
-
|
-
|
(3,823,060)
|
(3,823,060)
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
(3,786,196)
|
|
|
|
|
|
Balance at June 30,
2009
|
6,696,992
|
$ 66,970
|
$ 203,151,364
|
$
58,233
|
$ (201,585,341)
|
$
1,691,226
|
|
|
|
|
|
Issuance of common stock
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee Stock Purchase
Plan
|
8,910
|
89
|
6,768
|
-
|
-
|
6,857
|
|
|
|
|
|
|
Vested restricted stock
units
|
20,000
|
200
|
(200)
|
-
|
-
|
-
|
|
|
|
|
|
|
Exercise of employee stock
options
|
7,993
|
80
|
8,313
|
-
|
-
|
8,393
|
|
|
|
|
|
|
Conversion of
debentures
|
170,455
|
1,705
|
260,795
|
-
|
-
|
262,500
|
|
|
|
|
|
|
Cashless exercise of
warrants
|
63,622
|
636
|
(636)
|
-
|
-
|
-
|
|
|
|
|
|
|
Exercise of warrants
|
101,209
|
1,012
|
138,322
|
-
|
-
|
139,334
|
|
|
|
|
|
|
Settlement of
litigation
|
26,455
|
265
|
49,735
|
-
|
-
|
50,000
|
|
|
|
|
|
|
Consulting services
|
69,445
|
694
|
149,306
|
-
|
-
|
150,000
|
|
|
|
|
|
Stock based compensation on
stock
|
|
-
|
|
|
|
|
|
|
|
|
|
|
options and restricted stock
units
|
-
|
-
|
160,416
|
-
|
-
|
160,416
|
|
|
|
|
|
Sale of common stock and
warrants, net
|
1,806,557
|
18,065
|
2,353,623
|
-
|
-
|
2,371,688
|
|
|
|
|
|
Foreign currency translation
adjustment
|
-
|
-
|
-
|
(34,767)
|
-
|
(34,767)
|
|
|
|
|
|
Net loss
|
-
|
-
|
-
|
-
|
(560,959)
|
(560,959)
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
(595,726)
|
|
|
|
|
|
Balance at June 30,
2010
|
8,971,638
|
$ 89,716
|
$ 206,277,806
|
$
23,466
|
$ (202,146,300)
|
$
4,244,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts:
|
|
LightPath Technologies,
Inc.
|
|
Jim Gaynor
|
|
President & CEO
|
|
or
|
|
Dorothy Cipolla
|
|
CFO
|
|
+1 (407) 382-4003
dcipolla@lightpath.com
|
|
|
SOURCE LightPath Technologies, Inc.
Copyright . 16 PR Newswire