TORONTO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. ("POET" or the "Company") (TSXV:PTK, NASDAQ:POET), the designer and developer of the POET Optical Interposer™, Photonic Integrated Circuits (PICs) and light sources for the data center, tele-communication and artificial intelligence markets, today reported its unaudited condensed consolidated financial results as at and for the three months ended June 30, 2024. The Company's financial results as well as the Management's Discussion and Analysis have been filed on SEDAR. All financial figures are in United States dollars ("USD") unless otherwise indicated. Second Quarter and Recent Business Highlights: The Company announced a major design win with Foxconn Interconnect Technology (FIT) to supply 800G and 1.6T optical engines for FIT pluggable modules that address the growth in demand for cutting-edge AI applications and high-speed data center networks. FIT's parent, Foxconn, is the world's largest electronics contract manufacturer and a major supplier of components and assemblies. Based on the exceptional performance of modules incorporating POET's high-speed optical engines, Luxshare Tech, a preferred supplier to Apple, announced that it is expanding its portfolio of optical modules targeted at AI networks using POET's optical engines. POET was selected as winner of the "Best Optical AI Solution" award in the seventh annual AI Breakthrough Awards program conducted by AI Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies and products in the global Artificial Intelligence (AI) market today. During the second quarter, the Company raised $15 million in equity capital in two non-brokered private placements with two institutional investors by issuing 6,706,665 Units at an average price of $2.24 per Unit. Each Unit consists of one common share and one common share purchase warrant with each warrant exercisable into one common share for a period of five years from the issue date at $3.20 per share. Through the use of its ATM facility during the month of April 2024, the Company raised gross proceeds of $7,447,000 from the issuance of 4,592,739 common shares at an average price of $1.62 per common share. Subsequent to the end of the quarter, the Company raised an additional $10 million in a non-brokered registered direct offering to a single institutional investor by issuing 3,333,334 Units at $3.00 per Unit. Each Unit consists of one common share and one common share purchase warrant with each warrant exercisable into one common share for a period of five years from the issue date at $4.00 per share. The Company's cash balance as of June 30, 2024 was $21.3 million; as of July 31, 2024, the Company had cash and cash equivalents of approximately $28.7 million and working capital of $27 million. There are 65,596,234 issued and outstanding common shares. Management Comments"We are gratified to have been chosen to supply our advanced high-speed integrated optical engine chips to two of the world's largest producers of electronic and photonic components and systems serving the leading AI networks and AI network service providers," said Dr. Suresh Venkatesan, Chairman & CEO. "We are also grateful to investors who share our confidence and optimism over the future of our Company. By raising the amount of capital that we have in the past few months, we have significantly lowered the risk to achieving sustainable revenues. Further, we were honored to be recognized by AI Breakthrough, a top market intelligence organization, as the winner of the ‘Best Optical AI Solution for 2024'. This accolade not only highlights our innovative efforts but also affirms that we are on the right track both technologically and commercially." Non-IFRS Financial SummaryThe Company reported non-recurring engineering revenue ("NRE") of nil in the second quarter of 2024 compared to $177,000 for the same period in 2023 and $8,710 in the first quarter of 2024 Historically, the Company provided NRE services to multiple customers for projects utilizing the unique capabilities of the POET Optical Interposer platform. No billable NRE services were provided in Q2 2024. The Company reported a net loss of $8.0 million, or ($0.14) per share, in the second quarter of 2024 compared with a net loss of $4.4 million, or ($0.11) per share, for the same period in 2023 and a net loss of $5.7 million, or ($0.13) per share, in the first quarter of 2024. The net loss in the second quarter of 2024 included research and development costs of $2.1 million compared to $2.0 million for the same period in 2023 and $1.9 million in the first quarter of 2024. Fluctuations in R&D for a Company of this size and this stage of growth are expected on a period-over-period basis as the Company transitions from technology development to product development. Non-cash expenses in the second quarter of 2024 included stock-based compensation of $1.6 million and depreciation and amortization of $0.5 million. Non-cash stock-based compensation and depreciation and amortization in the same period of 2023 were $0.7 million and $0.5 million, respectively. First quarter 2024 stock-based compensation and depreciation and amortization were $0.9 million and $0.5 million, respectively. The Company had non-cash finance costs of $20,000 in the second quarter of 2024 compared to non-cash finance costs of $11,000 in the second quarter of 2023 and non-cash costs of $20,000 in the first quarter of 2024. The Company recognized other income, including interest of $175,000 in the second quarter of 2024, compared to $57,000 in the same period in 2023 and $53,000 in the first quarter of 2024. The Company reported non-cash fair value adjustment to derivative warrant liability of $1.4 million in the second quarter of 2024, compared to nil in the same period in 2023 and $0.6 million in the first quarter of 2024. This non-cash item relates to warrants issued in a foreign currency and is periodically remeasured. Cash flow from operating activities in the second quarter of 2024 was ($4.5) million, compared to ($3.2) million in the second quarter of 2023 and ($4.6) million in the first quarter of 2024. Raised gross proceeds of $35.7 million, including $10 million in July, through the issuance of units from multiple private placements, issuance of common shares using its ATM and the issuance of common shares from the exercise of warrants. Non-IFRS Financial Performance MeasuresCertain financial information presented in this press release is not prescribed by IFRS. These non-IFRS financial performance measures are included because management has used the information to analyze the business performance and financial position of POET. These non-IFRS financial measures are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. These non-IFRS financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. POET TECHNOLOGIES INC.PROFORMA – NON-IFRS AND IFRS PRESENTATION OF OPERATIONS(All figures are in U.S. Dollars)   For the Quarter ended: 30-Jun-24   31-Mar-24