For starters, expanded is not the best word to cover what previous expenditures covered.

First, there were disparity between what they thought they were getting and what they got. Their initial assessments, by third party, listed equipment and functions Denselight possessed and /or was capable of. Once PoET took possession of the facility, it became fairly obvious, fairly quickly, their were deficiencies in both plant and capability. The remedial work, which was getting underway when we were there, required the purchase of some equipment, and the redistribution of work flow, that included the creation of Fab A and Fab B. This work began the process of utilizing the entire floor space rather than partial use. These deficiencies were acknowledged by the prior owners and a reduction of the monetary value, to be paid by way of shares, was agreed to by both parties.

The second point is that, while the company was still pursuing GaAS development, management was becoming more and more aware that InP development would be the most successful cost effective and ROI effective near term goal. GaAs development was becoming too expensive to go alone and management was aware that the big silicon houses were not ready to accept it in the near term, so additional expenditures of equipment were made to enhance the speed of development of InP architecture, the BBPhotonics IP and to allow them to duplicate the work that was also being done in the UK.

The third point is that the EDB agreement, that PoET committed to, was that Denselight would also become a Photonics R&D centre in Singapore. People were being hired and they needed equipment to work with.

So, a long winded way of saying money was spent, which allowed Denselight to enhance their existing laser products, develop new ones, co-develop the PPB IP and meet the terms of the EDB grant, but not spent in a way that meet the idea of expansion means huge production increase capability. The R&D work required, production of unique sensor prototypes and related costs will come after the interposer passes the litmus test, which the last NR addresses.

IMO, of course