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
at and for the three months ended June 30, 2024. The Company’s
financial results as well as the Management’s Discussion and
Analysis have been filed on SEDAR. All financial figures are in
United States dollars (“USD”) unless otherwise indicated.
Second Quarter and Recent Business
Highlights:
-
The Company announced a major design win with Foxconn Interconnect
Technology (FIT) to supply 800G and 1.6T optical engines for FIT
pluggable modules that address the growth in demand for
cutting-edge AI applications and high-speed data center networks.
FIT’s parent, Foxconn, is the world’s largest electronics contract
manufacturer and a major supplier of components and
assemblies.
-
Based on the exceptional performance of modules incorporating
POET’s high-speed optical engines, Luxshare Tech, a preferred
supplier to Apple, announced that it is expanding its portfolio of
optical modules targeted at AI networks using POET’s optical
engines.
-
POET was selected as winner of the “Best Optical AI
Solution” award in the seventh annual AI Breakthrough
Awards program conducted by AI Breakthrough, a leading market
intelligence organization that recognizes the top companies,
technologies and products in the global Artificial Intelligence
(AI) market today.
-
During the second quarter, the Company raised $15 million in equity
capital in two non-brokered private placements with two
institutional investors by issuing 6,706,665 Units at an average
price of $2.24 per Unit. Each Unit consists of one common share and
one common share purchase warrant with each warrant exercisable
into one common share for a period of five years from the issue
date at $3.20 per share.
-
Through the use of its ATM facility during the month of April 2024,
the Company raised gross proceeds of $7,447,000 from the issuance
of 4,592,739 common shares at an average price of $1.62 per common
share.
-
Subsequent to the end of the quarter, the Company raised an
additional $10 million in a non-brokered registered direct offering
to a single institutional investor by issuing 3,333,334 Units at
$3.00 per Unit. Each Unit consists of one common share and one
common share purchase warrant with each warrant exercisable into
one common share for a period of five years from the issue date at
$4.00 per share.
-
The Company’s cash balance as of June 30, 2024 was $21.3 million;
as of July 31, 2024, the Company had cash and cash equivalents of
approximately $28.7 million and working capital of $27 million.
There are 65,596,234 issued and outstanding common shares.
Management Comments“We are
gratified to have been chosen to supply our advanced high-speed
integrated optical engine chips to two of the world’s largest
producers of electronic and photonic components and systems serving
the leading AI networks and AI network service providers," said Dr.
Suresh Venkatesan, Chairman & CEO. "We are also grateful to
investors who share our confidence and optimism over the future of
our Company. By raising the amount of capital that we have in the
past few months, we have significantly lowered the risk to
achieving sustainable revenues. Further, we were honored to be
recognized by AI Breakthrough, a top market intelligence
organization, as the winner of the ‘Best Optical AI Solution for
2024’. This accolade not only highlights our innovative efforts but
also affirms that we are on the right track both technologically
and commercially."
Non-IFRS Financial SummaryThe
Company reported non-recurring engineering revenue (“NRE”) of nil
in the second quarter of 2024 compared to $177,000 for the same
period in 2023 and $8,710 in the first quarter of 2024
Historically, the Company provided NRE services to multiple
customers for projects utilizing the unique capabilities of the
POET Optical Interposer platform. No billable NRE services were
provided in Q2 2024.
The Company reported a net loss of $8.0 million,
or ($0.14) per share, in the second quarter of 2024 compared with a
net loss of $4.4 million, or ($0.11) per share, for the same period
in 2023 and a net loss of $5.7 million, or ($0.13) per share, in
the first quarter of 2024. The net loss in the second quarter of
2024 included research and development costs of $2.1 million
compared to $2.0 million for the same period in 2023 and $1.9
million in the first quarter of 2024. Fluctuations in R&D for a
Company of this size and this stage of growth are expected on a
period-over-period basis as the Company transitions from technology
development to product development.
Non-cash expenses in the second quarter of 2024
included stock-based compensation of $1.6 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
$0.7 million and $0.5 million, respectively. First quarter 2024
stock-based compensation and depreciation and amortization were
$0.9 million and $0.5 million, respectively. The Company had
non-cash finance costs of $20,000 in the second quarter of 2024
compared to non-cash finance costs of $11,000 in the second quarter
of 2023 and non-cash costs of $20,000 in the first quarter of
2024.
The Company recognized other income, including
interest of $175,000 in the second quarter of 2024, compared to
$57,000 in the same period in 2023 and $53,000 in the first quarter
of 2024.
The Company reported non-cash fair value
adjustment to derivative warrant liability of $1.4 million in the
second quarter of 2024, compared to nil in the same period in 2023
and $0.6 million in the first quarter of 2024. This non-cash item
relates to warrants issued in a foreign currency and is
periodically remeasured.
Cash flow from operating activities in the
second quarter of 2024 was ($4.5) million, compared to ($3.2)
million in the second quarter of 2023 and ($4.6) million in the
first quarter of 2024.
Raised gross proceeds of $35.7 million,
including $10 million in July, 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: |
30-Jun-24 |
|
31-Mar-24 |
|
31-Dec-23 |
|
30-Sep-23 |
|
30-Jun-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
- |
|
8,710 |
|
107,551 |
|
- |
|
177,390 |
|
Research and development |
(2,117,828 |
) |
(1,922,066 |
) |
(2,142,003 |
) |
(2,043,264 |
) |
(2,036,953 |
) |
Depreciation and
amortization |
(509,699 |
) |
(509,260 |
) |
(505,869 |
) |
(508,484 |
) |
(462,743 |
) |
Professional fees |
(366,839 |
) |
(409,726 |
) |
(902,368 |
) |
(273,905 |
) |
(255,094 |
) |
Wages and benefits |
(780,146 |
) |
(768,496 |
) |
(676,539 |
) |
(640,241 |
) |
(655,066 |
) |
Impact of join venture |
- |
|
- |
|
- |
|
- |
|
- |
|
Stock-based compensation |
(1,591,741 |
) |
(947,502 |
) |
(1,050,088 |
) |
(1,251,648 |
) |
(697,690 |
) |
General expenses and rent |
(1,390,933 |
) |
(570,819 |
) |
(317,333 |
) |
(429,457 |
) |
(502,707 |
) |
Derivative liability
adjustment |
(1,376,761 |
) |
(629,824 |
) |
(24,865 |
) |
- |
|
- |
|
Interest expense |
(20,833 |
) |
(19,753 |
) |
(13,547 |
) |
(34,890 |
) |
(11,214 |
) |
Other (income), including
interest |
174,911 |
|
52,558 |
|
54,047 |
|
45,448 |
|
57,454 |
|
Net loss |
(7,979,869 |
) |
(5,716,178 |
) |
(5,471,014 |
) |
(5,136,441 |
) |
(4,386,623 |
) |
|
|
|
|
|
|
Net loss per share |
(0.14 |
) |
(0.13 |
) |
(0.13 |
) |
(0.13 |
) |
(0.11 |
) |
|
|
|
|
|
|
ATM Quarterly UpdateDuring the
fiscal quarter ended June 30, 2024, through the ATM, the Company
sold 4,592,739 common shares at an average price of C$2.22 per
share. The Company received gross proceeds of C$10,202,164, less
aggregate cash commissions paid to Craig-Hallum of C$306,065
resulting in net proceeds of C$9,896,099. 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
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