What are the creditworthiness, payment terms, and any cancellation or performance penalties associated with the global technology leader in the contract?

The contract was awarded to LightPath by a “global technology leader” – a description that in corporate‑press releases normally signals a Tier‑1 customer with AAA‑level credit (e.g., a large semiconductor‑ or aerospace‑equipment OEM). While the release does not spell out the buyer’s exact credit rating, the fact that LightPath can book an $18.2 million order for CY‑2026 deliveries without mentioning a security deposit or escrow suggests the customer is deemed financially robust and can meet its obligations on standard commercial terms.

Typical aerospace/defense‑grade supply agreements of this size use net‑30 or net‑45 day invoice periods, with milestone‑based payments tied to delivery and acceptance of each camera system batch. The filing also does not call out any “liquidated‑damage” clause, but given the high‑value, mission‑critical nature of infrared imaging hardware, it is customary to embed performance‑penalty provisions—often a percentage (5‑10 %) of the invoiced amount or a fixed fee per missed delivery window—so that LightPath is incentivised to meet the 2026 schedule. From a trading perspective, the absence of any disclosed cancellation penalty or onerous financing terms reinforces the view that the deal adds a clean, high‑margin revenue stream with minimal downside risk, supporting a bullish bias on LPTH shares.