POET Technologies (US:POET)2025-08-12 00:22Revenue Performance - Revenue for Q2 2025 was $268,469, compared to $0 in Q2 2024, and $435,229 for the first half of 2025, up from $8,710 in the same period last year[4]. - The company recognized $435,229 in revenue from non-recurring engineering services and product sales during the six months ended June 30, 2025, compared to $8,710 in 2024, indicating a significant increase[51]. - The company reported revenue of $435,229 for the six months ended June 30, 2025, with significant selling, marketing, and administration expenses totaling $10,462,255[102]. Operating Expenses - Operating expenses for Q2 2025 totaled $9,025,545, an increase of 33.5% from $6,757,186 in Q2 2024, with total operating expenses for the first half of 2025 at $18,728,714, up from $11,885,055 in 2024[4]. - Selling, marketing, and administration costs for the six months ended June 30, 2025, were $10,462,255, compared to $6,946,241 in 2024, reflecting a 50.5% increase[109]. - Research and development costs for the three months ended June 30, 2025, totaled $3,752,352, an increase from $2,648,498 in the same period of 2024, representing a 41.6% increase[109]. Net Loss and Financial Strain - Net loss for Q2 2025 was $17,263,375, compared to a loss of $7,979,869 in Q2 2024, and the total net loss for the first half of 2025 was $10,921,817, down from $13,696,047 in 2024[4]. - The company reported a comprehensive loss of $15,498,048 for Q2 2025, compared to $8,013,213 in Q2 2024, indicating increased financial strain[5]. - For the three months ended June 30, 2025, the net loss was $17,263,375, compared to a net loss of $7,979,869 for the same period in 2024, representing a 116% increase in losses year-over-year[94]. Cash Flow and Investments - Cash and cash equivalents decreased to $12,364,960 as of June 30, 2025, from $37,143,759 at the end of 2024, reflecting a significant cash outflow[7]. - Short-term investments increased to $60,688,044 as of June 30, 2025, compared to $16,672,811 at the end of 2024, indicating a strategic shift in asset allocation[3]. - The company incurred $41,578,598 in cash used for the purchase of short-term investments during the first half of 2025, indicating aggressive investment strategies[7]. Shareholder Equity and Capital Structure - Share capital rose to $243,889,697 as of June 30, 2025, from $223,742,335 at the end of 2024, reflecting new equity financing activities[6]. - The total shareholders' equity increased to $49,365,406 as of June 30, 2025, from $20,688,887 at the end of 2024, suggesting improved capital structure[6]. - The Company reported cash and cash equivalents and short-term investments of $73,053,004 and shareholders' equity of $331,622,663 as of June 30, 2025[107]. Financial Instruments and Valuation - The company reported a fair value adjustment to derivative warrant liability of $(7,559,991) in Q2 2025, compared to $(1,376,761) in Q2 2024, reflecting volatility in financial instruments[4]. - The fair value of the derivative warrant liability was $29,328,610 as of June 30, 2025[104]. - The estimated fair value assigned to the warrants issued on private placements was $8,127,620 as of December 3, 2024[78]. Compliance and Accounting Practices - The financial statements are prepared in accordance with IFRS, ensuring compliance with international accounting standards, which enhances the reliability of financial reporting[10]. - The company recognizes revenue when control over a product or service is transferred to a customer, aligning with standard revenue recognition practices[37]. - The company follows the liability method for accounting income taxes, which allows for deferred tax assets to be recognized only if expected to be realized in the future[36]. Equity Financing and Share Issuance - The total number of common shares issued increased from 42,488,045 on January 1, 2024, to 76,507,157 by December 31, 2024, raising a total of $223,742,335[66]. - The company raised gross proceeds of CA$6,219,667 ($4,613,312) from a private placement on January 24, 2024, at an offering price of CA$1.22 ($0.90) per unit[67]. - The Company raised gross proceeds of CA$41,574,279 ($30,000,000) from a private placement on May 22, 2025, at a price of CA$6.92 ($5.00) per unit[81]. Asset Management - As of June 30, 2025, the company's total property and equipment amounted to $21,141,623, with a carrying amount of $13,266,167[58]. - The right-of-use asset balance increased to $1,387,282 as of June 30, 2025, with accumulated amortization of $659,912[62]. - The lease liability as of June 30, 2025, was $826,755, with a current portion of $147,877[63].