So if they were unable to produce the prototypes in the lab. Why do they have signed a contract with BAE in February to improve the quality and the optimization of the device?

On February 25, 2015, the Company signed a Collaboration Agreement with BAE Systems ("BAE"), under which BAE will provide non-exclusive third-party foundry services in support of the Company's "Lab-to-Fab" transition plan.

The current phase of the work will be performed between March 2015 and August 2015. Key objectives of the collaboration include process transfer, prototype builds and design enablement kit development. Using BAE Systems’ ISO Certified manufacturing facility will improve the quality, process control and analytical capacity of prototype builds. The result will be both a more manufacturable process and improved optimization of the device structures included in the POET technology.

Initial phases of the program will be performed using 3-inch wafers but from the onset the program will work towards the objective of achieving the full process flow on 6-inch wafers. Virtually all production GaAs-based processes are currently manufactured using 6-inch wafers. The Company believes that using BAE Systems’ manufacturing and test capabilities will help the Company to build devices that dramatically demonstrate the disruptive nature of the technology.