POET Technologies (US:POET)2023-11-15 14:05Financial Performance - The company recorded no revenue for the three months ended September 30, 2023, compared to $232,928 for the same period in 2022, representing a 100% decrease [3]. - The net loss for the three months ended September 30, 2023, was $5,136,441, compared to a net loss of $4,041,298 for the same period in 2022, reflecting a 27% increase in losses [3]. - For the nine months ended September 30, 2023, the net loss was $14,796,351, compared to a net loss of $14,756,739 for the same period in 2022, indicating a slight increase in losses [56]. - The company reported a basic and diluted loss per share of $(0.37) for the nine months ended September 30, 2023, compared to $(0.40) for the same period in 2022 [56]. Cash and Cash Equivalents - As of September 30, 2023, POET Technologies Inc. reported cash and cash equivalents of $4,476,478, a decrease of 51.5% from $9,229,845 as of December 31, 2022 [2]. - Cash and cash equivalents decreased to $4,476,478 as of September 30, 2023, down from $9,229,845 as of December 31, 2022 [66]. - As of September 30, 2023, cash and cash equivalents totaled $1,168,483, down from $1,981,765 in 2022, while term deposits decreased to $3,307,995 from $7,248,080 [25]. Operating Expenses - Operating expenses for the three months ended September 30, 2023, were $5,146,999, an increase of 16% from $4,436,695 in the same period of 2022 [3]. - The company incurred total selling, marketing, and administration expenses of $7,773,022 for the nine months ended September 30, 2023 [64]. - Research and development expenses for the nine months ended September 30, 2023, totaled $7,505,863 [64]. - Selling, marketing, and administration costs for the three months ended September 30, 2023, were $2,697,199, up from $2,074,704 in the same period of 2022, indicating a significant increase of about 30% [71]. - Research and development costs for the three months ended September 30, 2023, totaled $2,449,800, an increase from $2,361,991 in the same period of 2022, representing a growth of approximately 3.7% [71]. Shareholder Equity and Deficit - Shareholders' equity decreased to $8,821,730 as of September 30, 2023, from $12,914,590 in the same period of 2022 [6]. - The accumulated deficit as of September 30, 2023, reached $208,820,011, up from $194,023,660 at the end of 2022 [3]. - POET Technologies Inc. has accumulated losses of $(208,820,011) and working capital of $3,284,450 as of September 30, 2023 [11]. Funding and Financial Management - The company has initiated cost management strategies to align overhead with available cash resources due to substantial doubt about its ability to continue as a going concern [11]. - The company has a reasonable expectation of managing its finances to continue operations despite the need for additional funding [12]. - The Company initiated an at-the-market equity offering program, raising gross proceeds of $983,194 from share sales [1]. - The company does not maintain credit facilities and its existing cash resources are insufficient to fund operations beyond one year [68]. Joint Venture Performance - The Company recognized a gain of $4,868,225 related to its contribution of intellectual property to the joint venture Super Photonics Xiamen Co., Ltd, valued at $22,500,000 [39]. - The joint venture reported a net loss of $2,914,956 for the nine months ended September 30, 2023, compared to a net loss of $1,329,525 for the same period in 2022 [41]. - The Company's share of the net operating loss from the joint venture was $(527,857) for the nine months ended September 30, 2023, compared to $(1,555,650) in 2022 [41]. - The Company’s investment in the joint venture was carried at nil due to losses exceeding the carrying value [39]. Assets and Liabilities - Total assets as of September 30, 2023, amounted to $10,709,088, with current assets of $4,939,400 [64]. - Total property and equipment balance as of September 30, 2023, is $9,239,925, an increase from $8,209,092 at December 31, 2022 [42]. - Total accounts payable and accrued liabilities decreased to $1,353,208 as of September 30, 2023, from $3,362,430 at December 31, 2022 [46]. - Contract liabilities decreased to $105,263 as of September 30, 2023, from an opening balance of $(274,192) at the beginning of the year [37]. Stock and Compensation - Common shares issued increased to 40,679,295 as of September 30, 2023, from 37,841,950 at December 31, 2022 [48]. - Stock options granted during the nine months ended September 30, 2023, totaled 1,002,170 at an average price of $4.11 per share [52]. - Stock-based compensation recorded for the nine months ended September 30, 2023, was $3,151,356, compared to $2,847,898 for the same period in 2022 [53]. - Stock-based compensation in research and development for the three months ended September 30, 2023, was $406,536, down from $477,224 in 2022, reflecting a decrease of about 14.8% [71].