POET Technologies (POET) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $3,685, a decrease from $358,226 in the same period of 2023, indicating a decline of 98.97%[3] - The net loss for the nine months ended September 30, 2024, was $26,436,584, compared to a net loss of $14,796,351 in the same period of 2023, representing an increase in losses of 78.5%[3] - The company reported a net loss of $12,740,537 for the three months ended September 30, 2024, compared to a loss of $5,136,441 for the same period in 2023, resulting in a basic and diluted loss per share of $(0.20) for 2024 versus $(0.13) for 2023[72] - Total revenue for the nine months ended September 30, 2024, was $12,395, with a net loss of $26,436,584[80] Cash and Cash Equivalents - Cash and cash equivalents increased to $41,782,899 as of September 30, 2024, compared to $3,019,069 at the end of 2023, representing a significant growth of 1,283%[2] - Cash in current accounts amounted to $16,400,493 as of September 30, 2024, compared to $1,249,116 in 2023, reflecting a growth of 1,215%[23] - The company’s capital management includes cash and cash equivalents of $41,782,899 and shareholders' equity of $273,659,405 as of September 30, 2024[85] Shareholders' Equity and Total Assets - Total shareholders' equity increased to $30,618,030 as of September 30, 2024, from $4,931,416 at the end of 2023, marking a growth of 520.5%[7] - The company’s total assets increased to $50,514,105 as of September 30, 2024, from $8,777,417 at the end of 2023, reflecting a growth of 474.5%[2] - The company reported total assets of $50,514,105 as of September 30, 2024, with current assets of $43,295,437[79] Operating Expenses - Operating expenses for the nine months ended September 30, 2024, totaled $18,635,296, up from $15,278,885 in 2023, reflecting an increase of 15.5%[3] - Research and development expenses for the nine months ended September 30, 2024, totaled $7,318,907, while selling, marketing, and administration costs were $11,316,389[80] Financing Activities - Cash flows from financing activities amounted to $56,161,758 for the nine months ended September 30, 2024, compared to $8,868,834 in 2023, showing an increase of 532.5%[8] - The company raised gross proceeds of CA$20,400,000 (US$15,000,000) from a private placement on September 25, 2024[61] - During the nine months ended September 30, 2024, the company raised gross proceeds of $9,362,235 from the issuance of 5,449,723 common shares through an ATM financing[65] - The company incurred share issuance costs of $799,094 related to various financings during the period[63] Joint Venture Performance - The joint venture, Super Photonics Xiamen Co., Ltd, reported a net loss of $2,847,097 for the nine months ended September 30, 2024, slightly lower than the $2,914,956 loss in 2023[41] - The Company's investment in the joint venture was carried at nil as of September 30, 2024, due to losses exceeding the carrying value[39] - Current assets of the joint venture decreased to $390,126 as of September 30, 2024, down from $1,758,587 at December 31, 2023[41] - Total liabilities of the joint venture increased to $(345,362) as of September 30, 2024, compared to $(149,306) at December 31, 2023[41] - The Company recognized a gain of $5,366,294 related to its contribution of intellectual property to the joint venture, with an unrecognized gain of $17,133,706 to be applied against the investment[39] Stock Options and Compensation - As of September 30, 2024, the company had 9,495,705 stock options outstanding with a weighted average exercise price of $1.43, and 2,790,062 options were exercisable at a weighted average price of $1.32[71] - The company granted 2,582,659 stock options during the nine months ended September 30, 2024, at an average price of $1.78, compared to 1,002,170 options granted in the same period of 2023 at an average price of $4.11[69] - Stock-based compensation recorded during the nine months ended September 30, 2024, was $4,064,374, an increase from $3,151,356 in the same period of 2023[70] - Key management personnel compensation for the nine months ended September 30, 2024, totaled $4,329,161, compared to $3,719,190 in the same period of 2023[75] Liabilities and Derivative Liabilities - The derivative warrant liability increased significantly to $17,895,604 as of September 30, 2024, compared to $1,002,264 at the end of 2023[97] - The company incurred a fair value adjustment to derivative warrant liability of $8,186,421 for the nine months ended September 30, 2024, compared to no such adjustment in the previous year[3] Other Financial Information - A 10% change in foreign currencies held would impact other comprehensive loss by $2,500,000, indicating exposure to foreign currency risk[83] - The company does not maintain credit facilities and considers its existing cash resources sufficient to fund operations for over a year[84] - The company has operating leases on four facilities, with remaining minimum annual rental payments totaling $456,085[74]