And the final part....

Capital Structure, Cash Burn, and Future Funding Prospects

As we assess our capital structure and cash position, it’s important to recognize that we currently trade at the lower end of our past year’s range. However, this presents a compelling opportunity, especially as we transition into the manufacturing and revenue generation phase.

Here are the key points:

Cash Burn and Capital Injection:

Our current cash burn rate is approximately $3 million.

Going forward, we anticipate both equity and non-equity raises to inject capital.

Non-equity funding, particularly through technology licensing agreements, is a strategic focus.

Joint Venture and Equity Dilution:

Our joint venture with San in China provides a state-of-the-art clean room facility.

We hold a 70% equity stake in this venture.

As manufacturing ramps up, we expect to liquidate some equity, further bolstering our financial position.

Future Prospects:

Over the next year, we’re well-positioned to capitalize on growth opportunities.

Our technology and market acceptance pave the way for revenue expansion.

Healthy margins (40% to 50%) align with conventional semiconductor companies.

In summary, we’re strategically navigating our financial landscape, and our focus remains on seizing growth prospects.

Balancing Equity and Non-Dilutive Finance: Our Strategic Approach

At POET Technologies, we recognize the importance of balance. While we anticipate generating sufficient capital through equity raises, we’re also actively pursuing non-dilutive financing options. Here’s why this dual approach matters:

Equity and Break-Even:

Our goal is to achieve break-even by generating capital through both equity and non-equity means.

Equity raises provide essential funding, but we’re not relying solely on them.

Technology Recognition and Market Position:

Our technology and market recognition position us well.

We’ve made recent announcements about the 800 gig market, signaling our trajectory.

Milestones Ahead:

Over the coming quarter, expect additional product and partner announcements.

Our leading-edge solutions are gaining traction, driving excitement.

In summary, our strategic balance ensures financial stability and positions us for continued growth.

As I mentioned earlier, achieving 1.6 terabits per second is a remarkable leap in bandwidth, particularly driven by AI demands. During a recent conference, only a handful of companies—including us—demonstrated this cutting-edge capability. The interest in collaborating with us to develop such solutions is substantial.

Being at the bleeding edge is crucial. It sets the tone for innovation, and eventually, these advancements trickle down to benefit the broader market. We’re well-positioned for this journey, and we’re excited about the possibilities.

Thank you for your attention, and if you have any further questions, feel free to connect with us.