LightPath Technologies Announces Completion of Coating Operations Expansion at European Facility

ORLANDO, FL / ACCESSWIRE / January 19, 2022 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared components and high-level assemblies, today announced the completion of its coating operations expansion at its manufacturing facilities in Europe located in Riga, Latvia. The equipment added to this facility include multiple specialized coating machines at a cost of over a million and a half dollars, and includes both Physical Vapor Deposition coating for anti-reflective coating as well as Chemical Vapor Deposition coatings for protective diamond like carbon (DLC) coating. This expansion follows an initial deployment of machinery in Riga announced a year ago which included coating equipment and other production capacity expansions to accommodate increased demand for infrared (IR) lenses.

Sam Rubin, President and Chief Executive Officer of LightPath, stated, "The expanded coating capacity in Europe is of paramount importance to our overall operations as well as our growth and profitability strategies. This facility bolsters our vertically integrated manufacturing platform for IR optics and optical assemblies. Our streamlined production process was not possible on a scalable basis in Riga up until the completion of this latest upgrade to our facilities. Optical fabrication, optical assembly, and high-performance coatings can now all be done at a single facility, reducing lead times and expanding our coating capacity worldwide to accommodate the growing demand for infrared optics.

"Over the past 6 months, LightPath has significantly expanded its capabilities and product offerings, including an exclusive optical usage license to manufacture products using the IR patent portfolio developed and owned by the United States Navy's U.S. Naval Research Laboratory (NRL). Interest from public and private sector customers for mass produced IR lenses has necessitated our investments in manufacturing capacity to allow for an increased level of commercial production for high durability DLC IR coatings for optics made from materials such as germanium, silicon, and chalcogenides, such as LightPath's proprietary Black Diamond ("BD6") chalcogenide glass."

Lens coatings provide protection and enhance optical performance, and are integral to the performance and long term viability of the products they are integrated into. IR lenses need protection against harsh environmental conditions and are a requirement for applications in need of resilient coatings that can withstand severe abrasion. These applications, which are catalysts behind the increasing demand for LightPath products, include thermal imaging for firefighting, military and defense machinery, technologies in space included in satellites and drones, IR imaging, multispectral imaging, thermography, medical imaging and related diagnostics, security/surveillance, and freeform optics for augmented and virtual reality (AR and VR) headgear.

Al Miranda, LightPath's Chief Financial Officer, added, "The completion of our coating operations expansion in Europe is part of our planned annual capital expenditures Prior to these investments, certain lenses initially developed in Riga were shipped to the U.S. for coating and then returned to Riga for finishing before final assembly and shipment to customers when revenue would have been recognized. This is a lengthy process where we are carrying work-in-progress products on our balance sheet and incurring unnecessary costs which may not be recaptured through customer pricing practices. The new capacity elevates our competitive position and enables improved financial performance. While the new capacity allows us to work through our backlog and new orders more expeditiously, thus becoming more responsive to the needs of our customers, we also expect to reduce inventory levels and derive higher margins, which will increase cash generation."

About LightPath Technologies

LightPath Technologies, Inc. (NASDAQ: LPTH) is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black Diamond^TM ("BD6") chalcogenide-based glass lenses. LightPath also offers custom optical assemblies, including full engineering design support. The Company is headquartered in Orlando, Florida, with manufacturing and sales offices in Latvia and China.

LightPath's wholly-owned subsidiary, ISP Optics Corporation, manufactures a full range of infrared products from high performance MWIR and LWIR lenses and lens assemblies. ISP's infrared lens assembly product line includes athermal lens systems used in cooled and un-cooled thermal imaging cameras. Manufacturing is performed in-house to provide precision optical components including spherical, aspherical and diffractive coated infrared lenses. ISP's optics processes allow it to manufacture its products from all important types of infrared materials and crystals. Manufacturing processes include CNC grinding and CNC polishing, diamond turning, continuous and conventional polishing, optical contacting and advanced coating technologies.

For more information on LightPath and its businesses, please visit www.lightpath.com.

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, and include, for example, statements related to the expected effects on the Company's business from the COVID-19 pandemic. 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 duration and scope of the COVID-19 pandemic and impact on the demand for the Company products; the ability of the Company to obtain needed raw materials and components from its suppliers; actions governments, businesses, and individuals take in response to the pandemic, including restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; 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 LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. 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 Securities and Exchange Commission, 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.

Investor Contact:
Jordan Darrow
Darrow Associates
Tel. 631-766-4528
Jdarrow@darrowir.com

Customer/Partner Contact:
Rob Myers, Product Manager
LightPath Technologies, Inc.
Tel: 407-382-4003
rmyers@lightpath.com

SOURCE: LightPath Technologies, Inc.