Ann: BluGlass to host virtual shareholder session, page-20

Hi @ynotmods

We are in a phase of incremental improvements and continuing development of new products (wavelengths, form factors, power ratings etc), and the customer base is growing correspondingly. Then there are the product development collaborations with Ganvix (green GaN Vertical Cavity Surface Emitting Laser) and UCSB (visible DFB laser), plus further known avenues of development taking a back seat ATM, such as the tunnel junction laser.

Unfortunately though, in spite of the potential, and the spectacular progress being made, the market is getting bored. Rather than new announcements bringing revaluations of the stock, they now seem to be required on a regular basis just to maintain the SP. It appears that investor attitude towards BLG is already shifting from tech start-up, to manufacturing company. As such we see a shift in focus to financial results. This is evident in the posts on this forum.

I don't expect rapid sales growth for quite a while yet. Most of the early customers are themselves in product development phase, or even early research phase, and many of the applications being discussed are never going to be large markets. For example, a medical diagnostic application is likely to be a small market, and probably in many cases the laser will be expected to last the life of the instrument (energised only momentarily, perhaps just a few times per day). Quantum computing, although very interesting and a great talking point, remains firmly in the lab. It could eventually be commonplace in everything from data centres to drones, but I think that could still be decades away.

A much bigger opportunity lies in manufacturing applications (e.g. cutting and welding machines and 3D printers) where the diode is used almost continuously, perhaps 24/7, and thus becomes a consumable (requiring regular replacement). As well as new manufacturing equipment under development, there could also be a more immediate opportunity here for retrofitting new wavelengths into existing equipment, permitting new and improved manufacturing processes. This could be lowest hanging fruit.

The other avenue to a faster ramp-up is selling into existing markets. This means developing drop-in replacements that match or exceed the performance of the competition's devices. In the shareholder briefing Jim says that they are getting to the point now, of being able to do that, and are starting to get more interest from customers looking for an alternative supplier.

These markets may not bring the same prestige is selling specialised lasers to a research institute investigating quantum computing, but I think it is where the money is for the moment.

The tunnel junction laser diode could give BLG a huge competitive advantage in the future, as it has the potential to reduce power dissipation by almost 50%. thus almost doubling device efficiency. But an actual product is at least a couple of years away yet. Jim did say (in response to an investor question) that now that they are starting to match the performance of the competitors' devices, the tunnel Junction diode may soon become their way forward in the quest for higher efficiency.

All IMO.