BluGlass is pleased to provide this Quarterly Update to accompany its Appendix 4C Quarterly Report for the three months ended 30 September 2019.Highlights from the quarter included:

Highlights from the quarter included:
- Scaling of BluGlass’ manufacturing facility, including commissioning the BLG-300II
- Buried activated p-GaN for tunnel junctions patent granted
- Bridgelux joint development agreement commenced
- Customer revenues, costs and capex spend broadly as anticipated
R&D Tax Rebate of $2.36m received after the end of the quarter

The Quarterly Report and Appendix 4C are available to download hereDuring the period, BluGlass commissioned its most advanced remote plasma chemical vapour deposition (RPCVD) manufacturing platform, the BLG-300II. This new platform incorporates the learnings and hardware development expertise gained to date and represents the cutting edge in RPCVD process and hardware. The new system is being deployed across a number of projects to advance our customer and commercialisation activities.In July, BluGlass was awarded a key US Patent for buried activated p-GaN for tunnel junctions. This important patent underpins BluGlass’ breakthrough development in cascade LEDs and its unique Laser Diode designs. BluGlass now holds 68 internationally granted patents and 15 applications protecting the RPCVD hardware, process and unique applications.BluGlass welcomed shareholders and stakeholders to a facility tour and investor day as the Company formally opened the Paul Dunnigan Laboratories on 26 August. The new laboratories house two new RPCVD systems, the BLG-300II and the larger AIX-2800 G4 which is currently undergoing its RPCVD system retrofit. BluGlass aims to commission the commercial scale AIX 2800 G4, in collaboration with global semiconductor equipment leader AIXTRON SE of Germany, in the coming quarter.These additional systems in the new laboratories will more than triple BluGlass’ RPCVD development capacity and customer output while demonstrating the scaling potential of the RPCVD technology. They also allow the Company to accelerate development and customer contract work to meet our commercialisation goals across a number of semiconductor markets.In August, BluGlass commenced a paid Joint Development Agreement with leading US based LED company, Bridgelux. This agreement builds on BluGlass’ RPCVD tunnel junction technology, to develop cascade LEDs. BluGlass and Bridgelux will work together to develop competitive applications for the growing general lighting market.Bridgelux is a global leader, having designed and produced LED lighting solutions for the general lighting market that are high performing, energy efficient, cost effective and easy to integrate. The joint development program aims to successfully integrate BluGlass and Bridgelux’s unique technologies in high performance commercial LED applications and to ultimately drive commercial adoption of RPCVD enabled cascade LEDs for general lighting - through the future provision of RPCVD equipment and process licensing. The terms of the JDA are non-exclusive and will provide revenues to BluGlass for its development work.Laser Diode Business Unit launchedAfter the end of the quarter (on 24 October 2019), BluGlass launched a new business unit to leverage the competitive advantages of RPCVD tunnel junctions for GaN Laser Diode applications. The Laser Diode market has a number of key differentiators to the LED market that warrant BluGlass establishing a direct market approach. This will allow BluGlass to capture more downstream value in this defined volume, high value market.The total global market for laser diode applications is estimated to reach US$27 billion by 2025. The GaN laser diode segment of this market is an emerging opportunity, expected to grow to represent a US$658M addressable market for BluGlass by 2025. GaN lasers require a higher performance, lower cost technology solution to help address significant unmet needs in the industry. BluGlass will initially focus on industrial laser diodes for welding and cutting applications, targeting a market share of 6-10% (US$40-65M) of the addressable market by 2025.BluGlass is developing GaN laser diode prototypes and expects to deliver its first laser diode product next calendar year. These new products are expected to deliver a clear path to revenues from CY2021.Operating metrics and R&D Grant receivedDuring the quarter, operational expenditure remained largely in line with the Company’s budgeted expectations. The capital expenditure costs for this quarter are lower than estimated for this period, however this is mainly a timing variance and we expect capital expenditure to come in on budget. BluGlass has also now received its R&D tax rebate for FY2019 in the amount of $2.36M.The Quarterly Report and 4C are available to download here