LightPath Technologies, Inc. (NASDAQ:LPTH) Q1 2024 Earnings Call Transcript

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We’re sort of fighting an uphill battle in a way where Germanium and other materials have the history of 60 years of usage. So there’s a lot of data out there that all the optical designers know and are based on that is — comes out of the many, many years of using it. New materials new, obviously and so we want to jump to start the process of it getting embedded into systems by providing a lot of statistical data that otherwise probably people would just wait and work slowly with it until they gain enough — they turned enough confidence with it. So that, in essence, really what DLA, Defense Logistics Agency, strategic material is financing here. That’s a portion of that. It’s a very, very well-defined set of data that we already started to collect, but again, the key information reliance on one piece of equipment that we’re just waiting for it to arrive.

And as a side note on the equipment, we could outsource the measuring. It’s very expensive. Nearly the project would cost was nearly the cost of the machine. It would take months. So it’d be longer and more expensive and DLA is funding about half of the machine cost in addition to other expenses.

Unidentified Analyst: All right. Really quickly with Germanium being so hard to get those export licenses. You guys mentioned last quarter that you started selling raw materials to clients who might want that. Do you see maybe an up-tick in demand for those raw materials to replace Germanium that might be hard to obtain? Or am I getting that wrong?

Sam Rubin: Yeah. Not as much as I would hope so. So, we’ve definitely had some work around that and definitely were definitely seen positively by customers. But I wouldn’t say that we have sort of the floodgates opened and someone is buying all our capacity for that its hardly happen.

Unidentified Analyst: All right.

Sam Rubin: But …

Unidentified Analyst: Thanks so much.

Sam Rubin: But I think its sill a correct signal to our customers that just how committed we are to that direction and to those material.

Unidentified Analyst: And to DoD, DLA and NRL.

Sam Rubin: Yes.

Unidentified Analyst: Great. That’s it. Thank you.

Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to management, for any closing remarks.

Sam Rubin: Thank you, everyone, for taking the time today to follow LightPath Technologies. We appreciate the trust placed with us by our stakeholders and shareholders of course, and look forward to future calls where we further discuss the fruits of our efforts to retool its business and move the company forward. Thank you. And have a good day.

Operator: Ladies and gentlemen, with that, we’ll conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.

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