BluGlass Limited received the latest results of testing for its laser diode development. The prototype laser diodes are showing lasing results consistent with commercial specifications for output power and wavelength, demonstrating the soundness of the BluGlass wafer epitaxial process. However, reliability testing has demonstrated weaknesses with the post epitaxy production steps, with gradual loss of light output due to degradation of the optical facet of the BluGlass laser chip when operated to high power in continuous wave conditions. While disappointing, the results confirm that BluGlass' core laser diode design is working to specification, and the challenges the Company is facing are in production steps involving third party providers. As an historically R&D business, these steps are new to BluGlass, but also well understood in the industry generally, and hence BluGlass is confident that they can be solved expeditiously. BluGlass intends to place all of its short-term focus on resolving the reliability issue, and over the coming year on all aspects of the production supply chain to scale commercial grade products needed by the market - to be demonstrated by customer orders of product. Given the nature of the challenge, the Company intends to seek additional experienced assistance in the post epitaxial phase of development, from those with established production capabilities from the industry.