Second Quarter 2023 and Subsequent Company Highlights: (part one)
Began commercialization of electro-optic polymer materials with first commercial material supply license agreement for Perkinamine® chromophore materials.
As of June 30, 2023, the company's cash and cash equivalents were $32.6 million, enabling it to finance operations through February 2025.
Revenue Recognition:
The company's first commercial agreement occurred in May 2023, in the form of a four (4) year material supply and license agreement (the "License Agreement") that incorporates the company's patented electro-optic polymer materials for use in manufacturing photonic devices (the "Licensed Product"). The licensee shall pay the company a running royalty with a minimum royalty paid on an annual basis over the term of the License Agreement. Additional future revenue will be generated from royalties from the licensee's sale of Licensed Product that exceed the minimum royalty payments. The License Agreement is a non-exclusive material supply and license agreement.
All revenues are recognized over time commencing with the License Agreement in May 2023. No revenues were recognized for the three and six month period ending June 30, 2023 since the licensee did not requisition material as of June 30, 2023. An up-front licensing fee in the amount of $50,000 was paid during the three and six month period ending June 30, 2023 and is recorded in short term liability deferred revenue in the company's balance sheet as of June 30, 2023.
Further strengthened intellectual property (IP) portfolio with 3 U.S. patents and publications:
Patent issuance for innovative chromophore design using novel Thiopene bridge, increasing overall EO polymer performance.
Patent Issuance for innovative polymer cladding design to enhance polymer modulator performance in a manner amenable to high-volume foundry production.
Patent publication to more efficiently pole advanced structural material designs for commercial foundry fabrication.
Appointed respected industry executive Laila Partridge to Board of Directors, bringing a 30+ year track record of executing transactions in the technology space to advise the company's management team as the company commercializes its electro-optic polymer materials.