POET - POET Technologies Reports Fourth Quarter 2023 Financial Results | Benzinga
TORONTO, March 15, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. ("POET" or the "Company") (TSXV:PTK, NASDAQ:POET), the designer and developer of Photonic Integrated Circuits (PICs), light sources and optical modules for the AI and data center markets, today reported its audited consolidated financial results for the fourth quarter ended December 31, 2023. The Company's financial results as well as the Management Discussion and Analysis have been filed on SEDAR. All financial figures are in United States dollars ("USD") unless otherwise indicated.
Fourth Quarter and Recent Business Highlights:
The Company achieved the following during the three months ended December 31, 2023 and more recently:
- Closed a public offering of 1,786,000 common shares of the Company and warrants to purchase 1,786,000 common shares of the Company at a public offering price of US$0.90 (CAD$1.22) per common share and accompanying warrant. Each warrant is exercisable at an exercise price of US$1.12 (CAD$1.52) per common share for a period of five years from issuance. The Company raised gross proceeds of $1,607,400 from this offering.
- Announced that Shaoxing ZKTel Equipment Co. ("ZKTel"), which supplies optical computer equipment such as modules and transceivers to Tier 1 companies in China's datacom and mobile networking industries, is one of the lead customers for POET's 100G optical engines.
- Closed a non-brokered private placement of 5,098,088 units of the Company at a price of $1.22 (US$0.90) per Unit for aggregate gross proceeds of approximately C$6.2 million (US$4.6 million). Each Unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one additional common share of the Company at a price of C$1.52 (US$1.12) per warrant for a period of five years following the date of issuance of such warrant. Certain officers, employees and directors of the Company subscribed for an aggregate of 459,522 Units of the private placement for gross proceeds of approximately C$560,617 (US$415,272).
Management Comments
"The Company's efforts during the fourth quarter were to ensure the financial sustainability of the Company during a difficult period in the equity markets for micro and small cap stocks, while still delivering on its 800G module development plans and development of 200G/lane solutions for 1.6T and 3.2T pluggable applications," stated POET Chairman & CEO, Dr. Suresh Venkatesan. "Between December 2023 and January 2024, we raised US$6.2 million in cash through equity offerings to serve as a bridge to other funding opportunities. We have shown leadership in our technology development with our AI focused products, in particular with our POET Starlight™ light source product and recently with our 800G module project. Both are targeted at the rapidly growing demand for higher speed communications in AI networks. With OFC just weeks away, we are excited about the products that will be showcased and the near-term prospects for the Company. We believe that the second half of 2024 and the beginning of 2025 will position the Company as a key supplier in high speed AI data communications.
Non-IFRS Financial Summary
The Company reported non-recurring engineering revenue ("NRE") of $108,000 in the fourth quarter of 2023 compared to $200,000 for the same period in 2022 and nil in the third quarter of 2023. In 2023, the Company provided under NRE contract services to multiple customers, one of which continued to contract services from prior years. The revenue relates to unique projects that are being addressed utilizing the capabilities of the POET Optical Interposer.
The Company reported a net loss of $5.5 million, or ($0.13) per share, in the fourth quarter of 2023 compared with a net loss $6.3 million, or ($0.17) per share, for the same period in 2022 and a net loss of $5.1 million, or ($0.13) per share, in the third quarter of 2023. The net loss in the fourth quarter of 2023 included research and development costs of $2.1 million compared to $2.7 million for the same period in 2022 and $2.0 million in the third quarter of 2023. Fluctuations in R&D for a Company of this size and this stage of growth is expected on a period-over-period basis as the Company transitions from technology development to product development.
Non-cash expenses in the fourth quarter of 2023 included stock-based compensation of $1.0 million and depreciation and amortization of $0.5 million. Non-cash stock-based compensation and depreciation and amortization in the same period of 2022 were $1.5 million and $0.3 million, respectively. Third quarter 2023 stock-based compensation and depreciation and amortization were $1.3 million and $0.5 million, respectively. The Company had non-cash finance costs of $14,000 in the fourth quarter of 2023 compared to non-cash finance costs of $12,000 in the fourth quarter of 2022 and non-cash costs of $18,000 in the third quarter of 2023.
The Company recognized other income, including interest of $54,000 in the fourth quarter of 2023, compared to $69,000 in the same period in 2022 and $45,000 in the third quarter of 2023.
Non-cash impact of joint venture in the fourth quarter of 2023 was a nil, compared to a net loss of $0.4 million in the same period of 2022 and nil in the third quarter of 2023. The Company's share of loss is approximately 76.1% of the loss of Super Photonics in the fourth quarter of 2023, 80.7% in the fourth quarter of 2022 and 78.4% in the third quarter of 2023. The Company's current share of the operating loss is a result of the high value of the Company's initial contribution. The non-cash impact of joint venture in the fourth quarter of 2023 consisted of a gain on the Company's investment in the joint venture of $0.5 million netted against a loss on the joint venture operations of ($0.5) million. The gain in the same period of 2022 was $1.3 million and was netted against a loss from operations of ($1.7) million. No gain or loss was recognized ...