By Sam Boughedda

Funding agency Kerrisdale Capital launched a brief report on Lightwave Logic Inc (NASDAQ:) on Thursday, describing the corporate as a “failure” and stating that it “has been perpetually caught in ‘improvement stage’ standing for greater than thirty years.”

Lightwave Logic shares have tumbled 13% because the report.

Talking on the corporate’s share worth rise in June final yr, Kerrisdale defined that it was “in tandem with some well-timed funding convention shows, excitable message board postings from long-suffering shareholders, and a particularly favorable surroundings for retail-driven inventory frenzies,” and it has managed to take care of a few of these positive factors.

Nevertheless, Kerrisdale stated it’s a “façade of accomplishment,” and there “is sort of nothing of substance.”

Lightwave describes itself as a expertise platform, utilizing its proprietary expertise platform to develop next-generation electro-optic polymers which improve the effectivity of web infrastructure.

Nevertheless, Kerrisdale says the corporate “hasn’t ever come near commercializing something: within the 15 years because it’s gone public, it has generated a complete of about $6 thousand in revenues, which stands in stark distinction to the regular stream of promotional bulletins celebrating overhyped prototype completions, product checks, and patents over that point.”

Including: “Essentially the most damning element we found about Lightwave’s commercialization efforts is that nobody is aware of find out how to constantly produce its proprietary polymer.”

In a scathing evaluation, Kerrisdale acknowledged the corporate’s shareholders present “blind religion” in CEO Michael Lebby.

“We predict Lebby has tailor-made a story that’s simply plausible sufficient to naïve traders, however that falls aside when seen within the context of the underlying tendencies in photonics. The corporate’s grandiose claims about its expertise can have turned out to be little greater than an optical phantasm,” the funding agency acknowledged.