LIGHTPATH TECHNOLOGIES, INC.
Consolidated Balance Sheets
June 30, June 30,
Assets 2008 2007
------------ ------------
Current assets:
Cash and cash equivalents $ 358,457 $ 1,291,364
Trade accounts receivable, net of allowance
of $44,862 and $28,968 1,334,856 1,408,815
Inventories, net 1,323,555 1,853,324
Prepaid expenses and other assets 277,359 220,860
------------ ------------
Total current assets 3,294,227 4,774,363
Property and equipment - net 1,937,741 1,563,250
Intangible assets - net 199,737 232,605
Other assets 57,306 57,306
------------ ------------
Total assets $ 5,489,011 $ 6,627,524
============ ============
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 1,827,461 $ 1,278,328
Accrued liabilities 196,125 326,525
Accrued severance 97,401 -
Accrued payroll and benefits 423,222 413,576
Secured note payable 260,828 -
Note payable, current portion 166,645 166,645
Capital lease obligation, current portion 18,603 16,285
------------ ------------
Total current liabilities 2,990,285 2,201,359
------------ ------------
Deferred rent 222,818 -
Capital lease obligation, excluding current
portion 5,050 23,653
Note payable, excluding current portion 111,097 277,741
------------ ------------
Total liabilities 3,329,250 2,502,753
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; 34,500,000 shares authorized;
5,331,664 and 4,512,543 shares issued and
outstanding 53,317 45,125
Additional paid-in capital 199,847,356 196,417,217
Foreign currency translation adjustment 21,369 (43,059)
Accumulated deficit (197,762,281) (192,294,512)
------------ ------------
Total stockholders’ equity 2,159,761 4,124,771
------------ ------------
Total liabilities and stockholders’
equity $ 5,489,011 $ 6,627,524
============ ============
LIGHTPATH TECHNOLOGIES, INC.
Consolidated Statements of Operations
Unaudited
Three months ended Twelve months ended
June 30, June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Product sales, net $ 2,381,956 $ 2,276,811 $ 8,826,471 $ 13,352,048
Cost of sales 1,814,420 2,226,089 7,595,398 10,306,046
------------ ------------ ------------ ------------
Gross margin 567,536 50,722 1,231,073 3,046,002
Operating expenses:
Selling, general
and
administrative 1,377,286 1,011,383 5,440,366 4,515,579
New product
development 290,220 343,399 1,214,269 1,174,132
Amortization of
intangibles 8,217 8,217 32,868 32,868
(Gain) Loss on
disposal of
assets (10,640) - 3,067 -
------------ ------------ ------------ ------------
Total costs and
expenses 1,665,083 1,362,999 6,690,570 5,722,579
------------ ------------ ------------ ------------
Operating loss (1,097,547) (1,312,277) (5,459,497) (2,676,577)
Other income
(expense)
Interest expense (38,516) (24,485) (86,801) (58,442)
Investment and
other income 4,762 40,933 78,529 120,390
------------ ------------ ------------ ------------
Net loss $ (1,131,301) $ (1,295,829) $ (5,467,769) $ (2,614,629)
============ ============ ============ ============
Loss per share
(basic and
diluted) $ (0.21) $ (0.29) $ (1.03) $ (0.58)
============ ============ ============ ============
Number of shares
used in per share
calculation 5,331,664 4,506,230 5,327,419 4,500,853
============ ============ ============ ============
LIGHTPATH TECHNOLOGIES, INC.
Consolidated Statements of Cash Flows
Year Ended
June 30,
--------------------------
2008 2007
------------ ------------
Cash flows from operating activities
Net loss $ (5,467,769) $ (2,614,629)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 459,351 472,222
Foreign exchange translation adjustment 64,428 (43,059)
Gain on sale of fixed assets 3,067 -
Stock based compensation 415,238 296,749
Provision for doubtful accounts receivable 15,894 (56,832)
Changes in operating assets and liabilities:
Trade receivables 58,065 539,041
Inventories 529,769 23,469
Prepaid expenses and other assets (56,499) (73,086)
Accounts payable and accrued expenses 586,920 (401,179)
------------ ------------
Net cash used in operating activities (3,391,536) (1,857,304)
------------ ------------
Cash flows from investing activities
Purchase of property and equipment (660,003) (829,953)
Proceeds from sale of equipment 17,640 -
------------ ------------
Net cash used in investing activities (642,363) (829,953)
Cash flows from financing activities
Proceeds from exercise of stock options - 12,809
Proceeds from sale of common stock, net of
costs 2,978,545 43,377
Proceeds from sale of common stock from
employee stock purchase 44,548 -
Borrowings on line of credit - 229,224
Borrowings on secured note payable 260,828 -
Payments on capital lease obligation (16,285) (14,254)
Payments on note payable (166,644) (55,548)
------------ ------------
Net cash provided by financing activities 3,100,992 215,608
------------ ------------
Decrease in cash and cash equivalents (932,907) (2,471,649)
Cash and cash equivalents, beginning of period 1,291,364 3,763,013
------------ ------------
Cash and cash equivalents, end of period $ 358,457 $ 1,291,364
============ ============
Supplemental disclosure of cash flow
information:
Interest paid $ 86,801 $ 21,157
Supplemental disclosure of non-cash investing
activity:
Landlord payments for leasehold improvements $ 161,678 $ -
Contact Information: Contacts: LightPath Technologies, Inc. Jim Gaynor President & CEO or Dorothy Cipolla CFO +1 (407) 382-4003 Alliance Advisors, LLC Alan Sheinwald President +1 (914) 669-0222