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Investor Presentation May 2025
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Forward Looking Statements This slide presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. This information and these statements, which can be identified by the fact that they do not relate strictly to historical or current facts, are made as of the date of this presentation or as of the date of the effective date of information described in this presentation, as applicable. The forward-looking statements herein relate to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “can”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) and include, without limitation, statements with respect to projected financial targets that the company is looking to achieve. All forward-looking statements are based on current beliefs as well as various assumptions made by, and information currently available to the company’s management team. A more detailed description of the risks presented by those assumptions and other risks are more fully described by the company under the caption “Risk Factors” included in our SEC filings and other risks to which our company is subject, and various other factors beyond the company’s control. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution any person reviewing this presentation not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. The company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by company or on behalf of the company except as may be required by law. 2
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Strong platform + favorable market dynamics to enable utilization of electro- optic polymers for high speed, low power AI and data center applications. LWLG At A Glance Unprecedented Accelerating Demand • TAM of $24B and SAM of $1- 2.5B by 2028 are growing quickly • Driven by CapEx to address AI, quantum, datacomm & space comm requirements Innovative EO Polymer Technology • Disruptive technology enabler for future speed upgrades in data bandwidth • Relieves key bottlenecks in AI infrastructure Strong Patent Portfolio • Protected by broad IP portfolio with over 70 patents • Numerous patents pending Deeply Experienced Leadership • Management, Board of Directors, Advisory Board have 200+ years conceiving and launching products Robust Balance Sheet • Critical for execution • $25M+ cash position provides significant optionality and execution runway (as of 3/31/25) 3
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4 Foundational E/O Polymer R&D… Reference Designs & Polymer “PDK” IP E/O Polymer Composition & IP We are a Material + IP/Royalty Licensing Company …For Creating Next-Gen Optical Modulators IP & “PDK” Licensing & “Co-Design” Capability E/O Polymer Production …And Generating High Margin Revenues Material Sales Licensing &/or Royalty Fees Business Model Materials and IP licensing/royalty dual-model for attractive blended gross margin 60%+ Gross Margin at Scale
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AI Infrastructure Challenges Addressed by Lightwave Logic EO Polymers 5 BANDWIDTH CONNECTIVITY POWER INTEGRATION
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AI Cluster Opportunity 1 3Scale Out – Switch Rack to Switch Rack interconnect using optics (transceiver based) 1 2 3 Scale Out – GPU rack to Switch rack connectivity – migrating to optical cables/CPO Scale Up – GPU to GPU connectivity – PCB traces migrating to CPO/optical chiplets 2 Source: Nvidia
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AI & Data Center Market Opportunity 7 Unprecedented Growth +Opportunity from Global AI Demands andAdoption >10X Growth in 800G since 2022 >20X Forecast growth for 1.6T since 2023 3.2T 800G 1.6T & 3.2T Largest opportunity for LWLG 3.2T
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AI/Datacenter and Telecom Opportunity for Ultra High-Speed Modulators Multiple major design wins by 2028 with Tier 1 transceiver and SiPho design houses Majority market share for 400Gb/s lane designs Technology capable of addressing future customer needs 20M units of 1.6Tb/s and 3.2Tb/s transceivers/CPO (200Gb/s+ lane) = 160M modulators $10 billion TAM 18M units of high-speed transceivers (100Gb/s+ per lane) = 70M modulators $7 billion TAM Serviceable market for EOP modulators depending on integration level Potential additional markets (not included): • Quantum Computing • Aerospace & Defense • Consumer Electronics $1.0 – 2.5 billion SAM $7 billion TAM 2M units of coherent DWDM transceivers = 4M modulators AI Datacenter Telecom * Source: LightCounting, internal company estimates Critical Milestones For LWLG 2028 Estimated Total Addressable Market (TAM) & Serviceable Addressable Market (SAM)*
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Uniquely Enabling AI Connectivity Ecosystem 9 Optical Transceiver Suppliers Silicon Photonics Engines (PICs) & Foundries Polymer Modulators Hyperscale AI Data Center OFC Update 20+ meetings with potential customers Traction with both Tier 1 SiPho design houses and new players Significant SiPho investment in Asia Foundries increasing internal investment Note: Companies represent examples of established entities per segment only.
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Entering a New Stage for Lightwave Logic 10 Technology & Materials Development Patents/IP, Polymers, Factory and Process Stage 1 Complete Scale-up & Diversification Production infrastructure + New markets and applications Stage 3 Starting 2026 Customers & Products Product Design-ins Silicon Photonics Foundries AI Ecosystem Integration Stage 2 2025 + 2026 Seizing growth opportunities presented by AI
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Design Win Cycle 11 Technology Selection Product Design Prototype to Final Product Production Ramp to High Volume Demonstrate performance Build trust in materials reliability Show superior attributes versus competing technologies (size, power, cost) 3 – 6 months Stage Duration Key Activities & Milestones 3 – 6 months 12 – 18 months Total: 18 – 24 months Supply customer with process design kit (PDK) Support modulator design activities Interface with foundry to enable material integration Support product reliability program Support product design iterations (alpha, beta, final) Support product qualification with end -user (specs, reliability) Improve manufacturing, process yield and cost metrics Support customer on process and yield improvement Participate in cost reduction programs Support design of product variants Prepare for next gen products 1 2 3 4
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Customer Update 12 Technology Selection Product Design Prototype to Final Product Production Ramp to High VolumeStage Customer Pipeline 20+ currently in pipeline 10 customers currently engaged in Stages 1 or 2 1 customer in Stage 3 Targeting 3-5 customers by year-end 2025 Targeting volume ramp in 2027 & 2028 Encouraging engagement and customer response to change in go-to-market strategy
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EOP can leverage and supercharge the innovation, scale and infrastructure of SiPho for next gen data speeds SiPho Meeting its Physical Limits Silicon photonics has enabled the revolution so far… But AI Clusters are increasing demand for datacom 10x… … with optical interconnects growing ∝ 10x cluster size Silicon Photonics cannot meet bandwidth requirements; Our material is the key difference maker
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Lightwave Logic Edge 𝑽𝝅 = ωλc 2ΓL𝒏3r33 Electro-optic coefficientRefractive index Loss Temporal stability (poled state) Resistance to decomposition by singlet oxygen Thermal stability (decomposition) 𝑛 Absorbance r33 Tg Td Photostability Performance Reliability LWLG Polymers vs Competition/Legacy Polymers LWLG EO polymers are world-class in every parameter and designed for reliability
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LWLG EO polymers have inherently high performance and are fully Si-foundry compatible EOP Performance vs. Alternative Technology Thin-Film LiNbO3 (TFLN) Electro-optic Polymers r33 intrinsically capped at ~ 31 pm/V at 1310 nm n = 2.2, εr = 30 (high dispersion across frequencies) Performance No intrinsic cap on r33 (> 200 pm/V at 1310 nm easily achieved) n ≈ 1.9, εr ≈ 3-6 (low dispersion across frequencies) Integration with Si/SiN very low yielding & basically still in R&D stage Limited wafer size (150 mm) Large device footprint (sub-cm scale) High material cost w/ only one supplier (NanoLN) Integration Fully Si compatible Easily scalable to 300 (+) mm wafer Very small device footprint (sub-mm scale) Low material cost Thin film uniformity becomes difficult as wafer size scales up Specialized processing/tools needed – leads to higher costs associated with processing, QC, etc. Processing Spin-coating produces films with high uniformity No specialized processing/tools needed (completely compatible with existing Si foundry processes/tools) – reduces costs associated with processing, QC, etc.
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EOP Reliability 0.00 0.01 0.10 1.00 10.00 100.00Years Tg Lifetime as function of Tg for 65°C and 85°C operating temperature 65 85 Temporal Stability = Orientational Stability of Poled State • Lifetime = 10% loss of poled state • Increasing Tg of material increases lifetime (protects from loss of performance due to depoling) • LWLG materials designed for high Tg 85°C Top 150°C Tg ~1.5-year lifetime 85°C Top 175°C Tg 100 - year lifetime 70 80 90 100 110 120 130 140 150 160 85°C Top 85°C Tg ~15-minute lifetime Tg (°C) Lifetime (years) 65°C 85°C 65°C Top 85°C Tg ~9.5-hour lifetime 0°C 85°C 100°C 180°C Tg (LWLG Polymers) Industry specification (0-85°C) ~100°C Δ Typical transceiver spec for datacenter LWLG EO polymers are uniquely resistant to de-poling due to high Tg Data adapted from: Martin Bösch, Diss. ETH No. 14192, Electro-Optic Polymers: Photochemical Stability and In-Line Modulator, page 21 (https://www.research-collection.ethz.ch/handle/20.500.11850/145319)
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Fully compatible and integrable with SiPho foundry process CMOS Compatible Process Flow 1 2 3 4 5 Receive bare SiPho wafer from foundry EOP coating and patterning EncapsulationPoling Finished device ready for characterization and packaging LWLG Backend/Encapsulation Process: Currently performed in-house; fully documented and ready for transfer to the foundry LWLG IP
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Enhance Operational Excellence to Benefit Tier 1s and Foundries 18 Materials Production Backend Semiconductor Process Reliability + Qualification Toolkit High-Speed RF Electronics Expertise Internal Business Processes + People Adding rigor to our commercialization efforts Key Focus Areas:
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19 Enabling the Utilization of Polymers for Industry Applications • Conducting accelerated Telcordia testing at 85° Celsius and 85% humidity • Conducting photosensitivity testing for high optical power • Deployed infrastructure for co-testing customer chips for reliability Reliability Testing 1 • Ramping polymer production equipment for mass production • Purchased flow process machine • Adding photochemistry processor Scaling Up for Repeatability 2 • Heterogeneous packaging applications • Quantum Computing, Aerospace & Defense, and Consumer Electronics applications Developing Next Generation Polymer/Chromophore for: 3 Materials Production Reliability + Qualification Toolkit Preparing for commercialization
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20 Customer and Application Support Backend Semiconductor Process High-Speed RF Electronics Expertise • Continuing collaboration on enhancing plasmonic modulators for multi-terabit applications • Initiating customer-led program to co-design polymer-based SiPH based customer modulators for transceiver applications Integration Efforts 1 • Developed polymer “PDK” to seamlessly integrate with Outsourced Semiconductor Assembly and Test (OSAT) and fab “ADK” and related processes for manufacturing modulators Back End of Line (BEOL) Expertise 2 • Program to assist customer RF teams to model terabit modulators in concert with optical modeling RF Engineering 3 One of our great values is our expertise in integration and processing
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21 Company Infrastructure Improvement Positioning company infrastructure for growth and scalability Internal Business Processes + People • Completing review of all policies and procedures • Adding rigor to our technology commercialization process Drive Operational Excellence 1 • Optimizing and improving teams across Engineering, Marketing, Reliability, IT and HR • New Senior VP of Sales & Marketing • Establishing sales and distribution channels in Asia People 2 • Continuous improvements to in-house BEOL processes with infrastructure transferable to semiconductor foundries • Enhanced state-of-the-art test and verification lab with improvements to 110 GHz testbed • “Stress tested” ability to utilize 25,000 square foot facility to scale volume production as required Facility 3
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Contact IR: Ryan Coleman or Nick Teves investor.relations@lightwavelogic.com +1 (312) 445-2870