Overall, the Q2 report is as expected, at least by me. It confirms what the company has told us before, i.e., first sales of products based on the optical interposer in Q3 2018 and volume sales in 2019. So there are no delay, which is a good sign.

I did a textual comparison between the last two MD&As to find out any remarkable changes that go beyond the pure financial numbers. The company did a lot of minor changes on the wording – too much and too boring to go into any details here. Thus I list only what I consider a) remarkable, b) possibly less-known, and c) not (almost) purely financial.

"POET’s Optical Interposer dramatically lowers the cost of packaging, testing and assembly, representing a completely new and potentially disruptive approach to photonics device production. In addition, POET’s innovative, Multi-Chip-Module approach to packaging and assembly allows for more functionality to be integrated into a single package, analogous to the system-in-package (SiP) trends observable in the industry today." [Here the word "dramatically" in particular is new.]

Patents changed from 57 issued and 12 pending to 59 issued and 10 pending.

"Non-cash depreciation and amortization increased by 18% or $100,901 to $659,820 in Q2 2018 to from $558,919 in Q2 2017. The Company has committed to improving its fabrication facilities in Singapore and its overall manufacturing capabilities, which includes acquiring new equipment for the Optical Interposer program."

"The Company is entitled to a recovery of certain qualifying expenses from the Economic Development Board (EDB) in Singapore. During the period, an audit of the Company’s claims was performed by a third party. The audit resulted in an approximate $150,000 reduction to the filed but unpaid claim as at June 30, 2018. Prior to Q4 2017 EDB recoveries were not accrued, as the Company did not have sufficient experience with the EDB process to confidently estimate the amounts to be recovered."

"New skilled technical human resources, especially in optics and photonics device testing, represent the largest area of increase in R&D. The increase is consistent with the Company’s budgeted R&D activity. Our expectation is that the R&D activity conducted in 2018 will lead to sales of new products in 2019."

"The Company had working capital of $10,591,896 on June 30, 2018 …"