Burn Rate

From the Q2 (ending June 30) report:

Ended the second quarter with cash of $10-million (U.S.).

Net loss before taxes in the second quarter of 2018 was $4,687,492 (U.S.)

The net loss in the second quarter of 2018 included non-cash stock-based compensation of $1,063,773 (U.S.) and depreciation and amortization of $659,820 (U.S.)

So let’s do some math. The way I see it and someone please correct me if I am wrong.

The burn rate for the second quarter in USD was $4,687,492 the stuff that is accounted for but does not reduce the cash position. So $4,687,492 minus non-cash stock-based compensation of $1,063,773, minus depreciation and amortization of $659,820 = $3 million ($2,963,899).

Capital investment in plant, equipment and patents was $1,139,259

Without going through the detailed financial statement which most including me get lost in let’s do a simple and basic check on the numbers.

Poet ended Q1 with:

Ended the first quarter with cash and short-term investments of $13.2-million

So the cash position was reduced by $3.2 million which roughly agrees the burn rate I posted above which included capital investments.

If we were to assume that their burn rate remains at this level including capital investments or call it costs to ramp up operations of $1 million /month.

Using thhese assumptions If no other cash was coming other than what has been reported as the $3 million in orders they would have enough cash to last until August 2019.

No one depletes their cash reserves to zero but there appears to  be some breathing room that can be used if there is expectation of new money from sales by mid 2019 and cash from warrants/options.