POET Technologies (US:POET)2022-05-11 22:07Financial Performance - The net loss for the three months ended March 31, 2022, was $5,432,799, compared to a net loss of $4,098,420 for the same period in 2021, indicating an increase in loss of approximately 32.6%[3] - Basic and diluted loss per share for the first quarter of 2022 was $(0.15), compared to $(0.13) in the first quarter of 2021[3] - The company reported a comprehensive loss of $5,353,590 for the three months ended March 31, 2022, compared to a comprehensive loss of $4,084,772 in the same period of 2021[4] - Stock-based compensation recorded for the three months ended March 31, 2022, was $997,441, compared to $820,538 for the same period in 2021, representing an increase of approximately 21.5%[53] Cash and Cash Equivalents - As of March 31, 2022, cash and cash equivalents decreased to $11,214,388 from $14,941,775 as of December 31, 2021, representing a decline of approximately 25%[2] - Cash and cash equivalents decreased to $1,640,815 in 2022 from $4,216,911 in 2021, while funds in term deposits decreased to $9,573,573 from $10,724,864[22] Assets and Liabilities - Total assets decreased to $22,988,904 from $27,153,977, a reduction of about 15.5%[2] - Shareholders' equity decreased to $21,019,363 from $24,971,747, a decline of about 15.5%[6] - Total accounts payable and accrued liabilities decreased from $1,791,222 on December 31, 2021, to $1,624,371 by March 31, 2022, indicating a reduction of approximately 9.3%[44] - The lease liability decreased from $359,348 on December 31, 2021, to $313,242 by March 31, 2022, reflecting a reduction of about 12.9%[43] Operating Expenses - Operating expenses for the three months ended March 31, 2022, increased to $5,010,683, up 29.3% from $3,871,150 in the same period of 2021[3] - Research and development expenses increased to $2,564,739 for the three months ended March 31, 2022, up 66.3% from $1,542,718 in the same period of 2021[3] - Selling, marketing, and administration costs for Q1 2022 were $2,445,944, compared to $2,328,432 in Q1 2021, showing an increase of about 5%[71] Investments - The company’s investment in joint ventures was recorded at $1,021,596, down from $1,445,251 as of December 31, 2021[2] - The company's investment in the joint venture, Super Photonics Xiamen Co., Ltd, was valued at $22,500,000, with a recognized gain of $2,587,500 in 2021[36] - The company's share of the net operating loss from the joint venture for the three months ended March 31, 2022, was approximately $430,321, reflecting an 88.5% ownership interest[38] Financial Instruments and Risks - The company has no significant interest risk exposure from its financial instruments, and its existing cash resources are deemed sufficient to fund operations beyond one year[68] - A 10% change in foreign currencies held would impact other comprehensive loss by approximately $872,000, indicating exposure to foreign currency risk[67] Shareholder Information - The total number of common shares issued increased from 29,461,811 at the beginning of 2021 to 36,605,003 by March 31, 2022, reflecting an increase of 24.5%[46] - The weighted average number of common shares outstanding increased to 36,520,322 in Q1 2022 from 32,075,596 in Q1 2021, leading to a basic and diluted loss per share of $0.15, compared to $0.13 in the prior year[56] Other Assets - Total property and equipment carrying amount increased to $3,206,928 as of March 31, 2022, from $3,064,234 at December 31, 2021[39] - The balance of patents and licenses increased from $837,102 at the beginning of 2021 to $1,005,561 by March 31, 2022, reflecting an addition of $168,459 over the period[40]