LightPath Technologies Reports Third Quarter Fiscal 2025 Financial Results

Published: 2025-05-15 16:06:12 ET LPTH

Published on 05/15/2025 at 16:06

ORLANDO, Fla., May 15, 2025 /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:

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

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

Change in fair value of warrant liability

(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

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,

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)

Change in fair value of warrant liability

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

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

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

Foreign currency translation adjustment

271,594

Net loss

(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

Foreign currency translation adjustment

(451,035)

Net loss

(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)

Issuance of common stock for:

Employee Stock Purchase Plan

1,137

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)

Stock-based compensation on stock options, RSUs & RSAs

194,303

Foreign currency translation adjustment

120,572

Net loss

(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

Foreign currency translation adjustment

(125,208)

Net loss

(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

Foreign currency translation adjustment

259,973

Net loss

(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

Foreign currency translation adjustment

(112,356)

Net loss

(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

Foreign currency translation adjustment

(119,009)

Net loss

(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

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SOURCE LightPath Technologies