LightPath Technologies reported Q3 2024 revenues of $7.70 million, up modestly Y/Y and Q/Q, but remained unprofitable at the quarter level with a net loss of about $2.60 million (-$0.068 per share). The quarter featured a one-time ERP-related inventory revaluation that depressed gross margins, while management highlighted the ongoing transition from a pure component manufacturer (LightPath 1.0) toward a higher-value engineered-solutions provider (LightPath 2.0 and LightPath 3.0). The company reaffirmed a strategic pivot around three growth pillars: Imaging Solutions (cameras and subsystems), expansion into new markets (notably automotive), and defense. A robust defense pipeline includes Lockheed Martin missile program milestones with substantial long-run revenue potential, together with exclusive infrared materials (BDNL) and an EU defense-manufacturing license that unlocks European projects. Management signaled an expected path to profitability in the next fiscal year, aided by cost-structure improvements and ongoing productization of non-Germanium infrared materials, with additional non-recurring costs in Q4 related to realignment. In the near term, the company is guiding toward higher gross margins once the ERP and inventory adjustments normalize and the mix shifts further toward 2.0/3.0 offerings. The inventory write-down and ERP consolidation were described as non-recurring, and management indicated that margins should stabilize in the low- to mid-30% range in coming quarters as LightPath 2.0/3.0 gains traction and production scales. The quarter also featured backlog at approximately $22 million (down 17% versus 3/31/2023), signaling a modest but improving revenue runway as programs mature. Investors should monitor progression of the Lockheed program, European license monetization, automotive ramp timing post-DOT mandate (2029), and the company’s ability to realize ongoing cost reductions while expanding into higher-margin camera/workflow solutions.