POET Technologies Inc. (“
POET” or the
“
Company”) (TSX Venture: PTK; NASDAQ: POET), the
designer and developer of the POET Optical Interposer™, Photonic
Integrated Circuits (PICs) and light sources for the data center,
tele-communication and artificial intelligence markets, today
reported its unaudited condensed consolidated financial results as
of and for the three months ended March 31, 2024. The Company’s
financial results as well as the Management’s Discussion and
Analysis have been filed on SEDAR+ in Canada and EDGAR in the U.S.
All financial figures are in United States dollars (“USD”) unless
otherwise indicated.
First Quarter and Recent Business
Highlights:
-
Participation at the Optical Fiber Conference (OFC) held in San
Diego in mid-March represented a major commercial turning point for
the Company, with the announcement of its first entry into the
optical module market for artificial intelligence and cloud data
center markets with an 800G pluggable transceiver.
-
The Company also announced four new products at OFC all directed at
the AI market, including an 800G transmit optical engine chiplet
(200G/lane) that is a fundamental building block for 1.6T and 3.2T
pluggable transceivers and an 8-channel packaged light source for
C-Band and O-Band wavelengths for chip-to-chip data communications
for AI systems and co-packaged optics for the data center
market.
-
To support its entry into the high-speed optical transceiver
market, the Company announced a collaboration with MultiLane Inc.,
a well-known, leading provider of high-speed IO and data center
interconnect test solutions, to develop next-generation,
performance-optimized pluggable 800G, 1.6T and higher speed
transceivers.
-
Marking the Company’s success in launching its newly designed
transmit and receive optical engines, the Company recently
announced a major design win and collaboration with Foxconn
Interconnect Technology (FIT) to develop 800G and 1.6T pluggable
optical transceiver modules for sale by FIT using POET optical
engines with an aim to address the growth in demand for
cutting-edge AI applications and high-speed data center
networks.
-
To provide the development funding needed to address the increased
demand for its products, the Company completed a series of
previously-announced non-brokered private placements since January
1, 2024 which added a total of approximately C$26.4 million to its
balance sheet. In addition, over the same period, the Company sold
4,947,679 common shares through its ‘at-the-market’ (ATM) offering
in the United States through Craig-Hallum LLC using the facilities
of the Nasdaq Capital Market at an average price of C$2.17, for
gross proceeds of approximately C$10.8 million.
-
As of May 15, 2024, the Company had cash and cash equivalents of
US$23.6M and working capital of US$22.8M. There were 60,485,477
issued and outstanding common shares.
Management Comments“Our team
embarked on a dynamic first quarter preparing for the Optical Fiber
Conference (OFC) held in San Diego in mid-March,” stated Chairman
& CEO, Dr. Suresh Venkatesan. “We could not have guessed at the
time that those efforts would lead to a collaboration with Foxconn,
one of the world’s leading electronics manufacturing companies to
include our optical engines in their 800G and 1.6T optical module
products. We are proud to have been selected for their advanced
module designs and we look forward to supplying FIT and its global
customer base, which includes the largest consumers of optical
modules in the AI market. At OFC, we showcased four new products,
each of which garnered serious attention from the industry, with
the strongest interest in our leading-edge optical engine
technology that powers optical modules for AI processing clusters,
and in our light source products that facilitate chip-to-chip
light-based data communications and high-speed computing. In
addition to Foxconn, we are expanding our previously announced
relationship with Luxshare, to include additional optical module
products, and collaborating with MultiLane, a key supplier of
high-speed test equipment in the industry to offer 800G and 1.6T
optical modules. The enthusiastic reception from OFC helped us to
secure multiple successful capital raises from institutional
investors committed to our company's success. The additional
capital fortifies our financial foundation as we navigate the next
phase of our growth.”
Non-IFRS Financial SummaryThe
Company reported non-recurring engineering revenue (“NRE”) of
$8,700 in the first quarter of 2024 compared to $181,000 for the
same period in 2023 and $108,000 in the fourth quarter of 2023. In
the first quarter, the Company provided under NRE contract services
to multiple customers, one of which continued to contract services
from last year. The revenue relates to unique projects that are
being addressed utilizing the capabilities of the POET Optical
Interposer.
The Company reported a net loss of $5.7 million,
or ($0.12) per share, in the first quarter of 2024 compared with a
net loss $5.3 million, or ($0.14) per share, for the same period in
2023 and a net loss of $5.5 million, or ($0.13) per share, in the
fourth quarter of 2023. The net loss in the first quarter of 2024
included research and development costs of $1.9 million compared to
$2.3 million for the same period in 2023 and $2.1 million in the
fourth quarter of 2023. Fluctuations in R&D for a Company of
this size and this stage of growth is expected on a
period-over-period basis as the Company transitions from technology
development to product development.
Non-cash expenses in the first quarter of 2024
included stock-based compensation of $0.9 million and depreciation
and amortization of $0.5 million. Non-cash stock-based compensation
and depreciation and amortization in the same period of 2023 were
$1.2 million and $0.5 million, respectively. Fourth quarter 2024
stock-based compensation and depreciation and amortization were
$1.0 million and $0.5 million, respectively. The Company had
non-cash finance costs of $20,000 in the first quarter of 2024
compared to non-cash finance costs of $10,000 in the first quarter
of 2023 and non-cash costs of $14,000 in the fourth quarter of
2023.
The Company recognized other income, including
interest of $53,000 in the first quarter of 2024, compared to
$78,000 in the same period in 2023 and $54,000 in the fourth
quarter of 2023.
The Company reported non-cash fair value
adjustment to derivative warrant liability of $0.6 million in the
first quarter of 2024, compared to nil in the same period in 2023
and $25,000 in the fourth quarter of 2023. This non-cash item
relates to warrants issued in a foreign currency and is
periodically remeasured.
Cash flow from operating activities in the first
quarter of 2024 was ($4.6) million, compared to ($3.6) million in
the first quarter of 2023 and ($2.9) million in the fourth quarter
of 2023.
From January 1, 2024 to date, the Company
received gross proceeds of $28.5 million through the issuance of
units from multiple private placements, issuance of common shares
using its ATM and the issuance of common shares from the exercise
of warrants.
Non-IFRS Financial Performance
MeasuresCertain financial information presented in this
press release is not prescribed by IFRS. These non-IFRS financial
performance measures are included because management has used the
information to analyze the business performance and financial
position of POET. These non-IFRS financial measures are intended to
provide additional information only and do not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other companies. These non-IFRS
financial measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
POET TECHNOLOGIES INC.PROFORMA – NON-IFRS
AND IFRS PRESENTATION OF OPERATIONS(All figures are in
U.S. Dollars) |
|
For the Quarter ended: |
|
31-Mar-24 |
31-Dec-23 |
30-Sep-23 |
30-Jun-23 |
31-Mar-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
8,710 |
|
107,551 |
|
- |
|
177,390 |
|
180,836 |
|
Research and development |
|
(1,922,066 |
) |
(2,142,003 |
) |
(2,043,264 |
) |
(2,036,953 |
) |
(2,316,475 |
) |
Depreciation and
amortization |
|
(509,260 |
) |
(505,869 |
) |
(508,484 |
) |
(462,743 |
) |
(445,044 |
) |
Professional fees |
|
(409,726 |
) |
(902,368 |
) |
(273,905 |
) |
(255,094 |
) |
(313,404 |
) |
Wages and benefits |
|
(768,496 |
) |
(676,539 |
) |
(640,241 |
) |
(655,066 |
) |
(677,924 |
) |
Stock-based compensation |
|
(947,502 |
) |
(1,050,088 |
) |
(1,251,648 |
) |
(697,690 |
) |
(1,202,018 |
) |
General expenses and rent |
|
(570,819 |
) |
(317,333 |
) |
(429,457 |
) |
(502,707 |
) |
(566,768 |
) |
Derivative liability
adjustment |
|
(629,824 |
) |
(24,865 |
) |
- |
|
- |
|
- |
|
Interest expense |
|
(19,753 |
) |
(13,547 |
) |
(34,890 |
) |
(11,214 |
) |
(10,531 |
) |
Other (income), including
interest |
|
52,558 |
|
54,047 |
|
45,448 |
|
57,454 |
|
78,041 |
|
Net loss |
|
(5,716,178 |
) |
(5,471,014 |
) |
(5,136,441 |
) |
(4,386,623 |
) |
(5,273,287 |
) |
|
|
|
|
|
|
|
Net loss per share |
|
(0.12 |
) |
(0.13 |
) |
(0.13 |
) |
(0.11 |
) |
(0.14 |
) |
|
ATM Quarterly Update
During the fiscal
quarter ended March 31, 2024, through the ATM, the Company sold
435,405 common shares at an average price of C$1.88 per share. The
Company received gross proceeds of C$818,351, less aggregate cash
commissions paid to Craig-Hallum of C$24,551 resulting in net
proceeds of C$793,800. The common shares were sold on the Nasdaq
Capital Markets and the sales were denominated in USD. The values
disclosed are based on the average Bank of Canada exchange rate
applicable during the reporting period.
About POET Technologies
Inc.POET is a design and development company offering
high-speed optical modules, optical engines and light source
products to the artificial intelligence systems market and to
hyperscale data centers. POET’s photonic integration solutions are
based on the POET Optical Interposer™, a novel, patented platform
that allows the seamless integration of electronic and photonic
devices into a single chip using advanced wafer-level semiconductor
manufacturing techniques. POET's Optical Interposer-based products
are lower cost, consume less power than comparable products, are
smaller in size and are readily scalable to high production
volumes. In addition to providing high-speed (800G, 1.6T and above)
optical engines and optical modules for AI clusters and hyperscale
data centers, POET has designed and produced novel light source
products for chip-to-chip data communication within and between AI
servers, the next frontier for solving bandwidth and latency
problems in AI systems. POET’s Optical Interposer platform also
solves device integration challenges in 5G networks,
machine-to-machine communication, self-contained "Edge" computing
applications and sensing applications, such as LIDAR systems for
autonomous vehicles. POET is headquartered in Toronto, Canada, with
operations in Allentown, PA, Shenzhen, China, and Singapore. More
information about POET is available on our website
at www.poet-technologies.com.
Media Relations
Contact:Adrian BrijbassiAdrian.brijbassi@poet.tech |
Company
Contact:Thomas R. Mika, EVP & CFOtm@poet.tech |
|
Forward-Looking StatementsThis
news release contains “forward-looking information” (within the
meaning of applicable Canadian securities laws) and
“forward-looking statements” (within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995). Such statements
or information are identified with words such as “anticipate”,
“believe”, “expect”, “plan”, “intend”, “potential”, “estimate”,
“propose”, “project”, “outlook”, “foresee” or similar words
suggesting future outcomes or statements regarding any potential
outcome. Such statements include the Company’s expectations with
respect to the success of the Company’s product development
efforts, the performance of its products, the expected results of
its operations, meeting revenue targets, and the expectation of
continued success in the financing efforts, the capability,
functionality, performance and cost of the Company’s technology as
well as the market acceptance, inclusion and timing of the
Company’s technology in current and future products and
expectations for approval of proposals at the Company’s annual
meeting of shareholders.
Such forward-looking information or statements
are based on a number of risks, uncertainties and assumptions which
may cause actual results or other expectations to differ materially
from those anticipated and which may prove to be incorrect.
Assumptions have been made regarding, among other things,
management’s expectations regarding the success and timing for
completion of its development efforts, the introduction of new
products, financing activities, future growth, recruitment of
personnel, opening of offices, the form and potential of its joint
venture, plans for and completion of projects by the Company’s
consultants, contractors and partners, availability of capital, and
the necessity to incur capital and other expenditures. Actual
results could differ materially due to a number of factors,
including, without limitation, the failure of its products to meet
performance requirements, lack of sales in its products, once
released, operational risks in the completion of the Company’s
anticipated projects, lack of performance of its joint venture,
risks affecting the Company’s ability to execute projects, the
ability of the Company to generate sales for its products, the
ability to attract key personnel, the ability to raise additional
capital and the agreement by shareholders to approve proposals put
forth by the Company at shareholders’ meetings. Although the
Company believes that the expectations reflected in the
forward-looking information or statements are reasonable,
prospective investors in the Company’s securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.120
Eglinton Avenue, East, Suite 1107, Toronto, ON, M4P 1E2- Tel:
416-368-9411 - Fax: 416-322-5075
POET Technologies (TSXV:PTK)
Historical Stock Chart
From Oct 2024 to Oct 2024
POET Technologies (TSXV:PTK)
Historical Stock Chart
From Oct 2023 to Oct 2024