POET Applied sciences Stories Fourth Quarter 2024 Monetary Outcomes

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Continued progress towards a income inflection level based mostly on in-place contracts with trade leaders and companions

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TORONTO, March 31, 2025 (GLOBE NEWSWIRE) — POET Applied sciences Inc. (“POET” or the “Firm”) (TSX Enterprise: PTK; NASDAQ: POET), the designer and developer of Photonic Built-in Circuits (PICs), mild sources and optical modules for the AI and information heart markets, at the moment reported its audited consolidated monetary outcomes for the fourth quarter ended December 31, 2024. The Firm’s monetary outcomes in addition to the Administration Dialogue and Evaluation have been filed on SEDAR+. All monetary figures are in United States {dollars} (“USD”) until in any other case indicated.

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Administration Commentary:

“In This fall 2024, we strategically positioned our firm for accelerated progress by strengthening our monetary basis, advancing essential expertise developments, and implementing a brand new manufacturing technique designed for fast, worthwhile scaling,” acknowledged POET Chairman & CEO, Dr. Suresh Venkatesan. “The market is experiencing unprecedented demand for photonic options, significantly in AI information heart functions, and we’re nonetheless on the early levels of what trade consultants anticipate will likely be a multi-year demand cycle. Regardless of difficult fairness markets, we efficiently raised an extra US$25 million by means of a registered direct providing, with strong investor help reflecting the market alternative and POET’s positioning as a possible chief within the house.”

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Dr. Venkatesan continued, “Each strategic transfer now we have remodeled the previous a number of months is to make sure that POET is positioned to scale and to optimize our provide chain as we method a income inflection level later this 12 months. based mostly on the trajectory of current buyer relationships. Our acquisition of SPX offers us full management of our expertise whereas enabling us to shift manufacturing towards Malaysia and away from China, decreasing geopolitical danger to progress, whereas constructing on our established foundry relationship with Silterra Malaysia in a well-known and pleasant market. For 2025, we’re targeted on creating our wafer-level manufacturing in Malaysia, increasing into telecom methods and chip-to-chip information communications functions, and leveraging the strong monetary basis we set in 2024 to speed up each our buyer pipeline, deliveries and income realization. POET continues to obtain consideration from notable trade analysts, together with Lightwave+BTR and we count on this momentum, together with current contracts and relationships with trade leaders and companions like LuxshareTech, Foxconn and Mitsubishi Electrical, to result in vital income acceleration within the second half of 2025.”

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The Firm intends to pursue its voluntary delisting from the TSX Enterprise Alternate instantly following the closing of its deliberate US$25M financing with L5 Capital, which is anticipated to shut inside the subsequent few weeks.

Notable Enterprise Highlights:

• The Firm was acknowledged publicly for excellent technical management, receiving a number of prestigious awards, together with:
  • “Elite Rating” Lightwave+BTR Innovation Critiques (February 27, 2025)
  • “Greatest in Synthetic Intelligence” 2024 International Tech Awards (October 16, 2024)
  • “AI Innovator of the Yr Gold Prize” 2024 Advantage Awards (October 1, 2024)
  • “Greatest Optical AI Answer, 2024 AI Breakthrough Awards (June 26, 2024)
  • “Runner-Up Award for Most Modern Hybrid PIC/Optical Integration” ECOC (October 1, 2024)
• Closed a non-brokered personal placement providing on November 26, 2024 of 5,555,556 frequent shares at an providing value of $4.50 and accompanying warrants to buy 2,777,778 further frequent shares at $6.00 per share for a interval of 5 years from issuance. The Firm raised gross proceeds of $25,000,002 from this providing, bringing the entire fairness capital raised throughout 2024 to $82.2 million.
• Appointed Robert “Bob” Tirva to the Board of Administrators and the Audit Committee. Mr. Tirva brings over 30 years of government expertise in expertise and semiconductors, having held administration positions at IBM, Broadcom Company, Dropbox and Intermedia Cloud Communications Inc. Most lately, he was President, Chief Working Officer and Chief Monetary Officer of Sonim Applied sciences, Inc. till it was acquired by AJP Holding Firm in 2022. Mr. Tirva presently serves on the board of Skyworks Aeronautics and was lately on the boards of Costar Applied sciences and Resonant, Inc.
• Accomplished the acquisition of 100% of Tremendous Photonics Xiamen Co., Ltd (“SPX”), establishing full management over SPX, for a complete of $6.5 million to be paid out over 5 years starting in Q1 of 2025, enabling POET to determine manufacturing exterior of China unbiased of the JV. The Firm has subsequently determined to liquidate and shut the SPX operation inside the subsequent few months.
• Established a serious wafer-level meeting and take a look at facility for optical engines in Penang, Malaysia with the signing of a number of agreements with Globetronics Manufacturing Sdn. Bhd., a number one semiconductor producer and contractor, equipping Globetronics with the capability to fabricate an preliminary 1 million POET optical engines yearly.

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Non-IFRS Monetary Abstract
The Firm reported non-recurring engineering (“NRE”) and product income of $29,032 within the fourth quarter of 2024 in comparison with $107,551 for a similar interval in 2023 and $3,685 within the third quarter of 2024. Traditionally the Firm offered NRE providers to a number of prospects for distinctive initiatives which are being addressed using the capabilities of the POET Optical Interposer. No billable NRE providers had been offered within the interval. The Firm solely had small product income in This fall 2024.

The Firm reported a web lack of $30.2 million, or ($0.48) per share, within the fourth quarter of 2024 in contrast with a web loss $5.5 million, or ($0.13) per share, for a similar interval in 2023 and a web lack of $12.7 million, or ($0.20) per share, within the third quarter of 2024. The online loss within the fourth quarter of 2024 included analysis and growth prices of $3.4 million in comparison with $2.1 million for a similar interval in 2023 and $1.8 million within the third quarter of 2024. Fluctuations in R&D for a Firm of this measurement and this stage of progress is anticipated on a period-over-period foundation because the Firm transitions from expertise growth to product growth.

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The biggest element of the Firm’s loss was from the non-cash truthful worth adjustment to by-product warrant legal responsibility of $12.4 million within the fourth quarter of 2024, in comparison with $25,000 in the identical interval in 2023 and $6.2 million within the third quarter of 2024. This non-cash merchandise pertains to warrants issued in a international forex and is periodically remeasured. The rise was a results of the issuance of warrants and the rise within the Firm’s inventory value through the third quarter.

Different non-cash bills within the fourth quarter of 2024 included stock-based compensation of $1.4 million and depreciation and amortization of $0.5 million. Non-cash stock-based compensation and depreciation and amortization in the identical interval of 2023 had been $1.0 million and $0.5 million, respectively. Third quarter 2024 stock-based compensation and depreciation and amortization had been $1.5 million and $0.5 million, respectively. The Firm had non-cash finance prices of $32,000 within the fourth quarter of 2024 in comparison with non-cash finance prices of $14,000 within the fourth quarter of 2023 and non-cash prices of $30,000 within the third quarter of 2024.

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The Firm acknowledged different revenue, together with curiosity of $511,000 within the fourth quarter of 2024, in comparison with $54,000 in the identical interval in 2023 and $216,000 within the third quarter of 2024.

In the course of the fourth quarter of 2024, the Firm acquired the remaining 24.8% curiosity of SPX from SAIC. The acquisition of this curiosity resulted in a non-cash loss to the Firm of $6,852,687.

Money circulate from working actions within the fourth quarter of 2024 was ($8.7) million in comparison with ($2.9) million within the fourth quarter of 2023 and ($5.5) million within the third quarter of 2024.

The Firm raised gross proceeds of $25.9 million, together with $25 million from the issuance of models from a non-brokered personal placement and $0.9 million from the train of warrants and inventory choices.

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Abstract of Monetary Efficiency
The next is a abstract of the Firm’s operations over the 5 quarters ending December 31, 2024. This info ought to be learn along with the Firm’s monetary statements filed on Sedar + on Marcy 31, 2025.

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About POET Applied sciences Inc.
POET is a design and growth firm providing high-speed optical modules, optical engines and lightweight supply merchandise to the unreal intelligence methods market and to hyperscale information facilities.  POET’s photonic integration options are based mostly on the POET Optical Interposer™, a novel, patented platform that enables the seamless integration of digital and photonic gadgets right into a single chip utilizing superior wafer-level semiconductor manufacturing methods. POET’s Optical Interposer-based merchandise are decrease value, devour much less energy than comparable merchandise, are smaller in measurement and are readily scalable to excessive manufacturing volumes. Along with offering high-speed (800G, 1.6T and above) optical engines and optical modules for AI clusters and hyperscale information facilities, POET has designed and produced novel mild supply merchandise for chip-to-chip information communication inside and between AI servers, the following frontier for fixing bandwidth and latency issues in AI methods.  POET’s Optical Interposer platform additionally solves gadget integration challenges in 5G networks, machine-to-machine communication, self-contained “Edge” computing functions and sensing functions, resembling LIDAR methods for autonomous automobiles.  POET is headquartered in Toronto, Canada, with operations in Allentown, PA, Shenzhen, China, and Singapore.  Extra details about POET is on the market on our web site at www.poet-technologies.com.

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Ahead-Wanting Statements

This information launch accommodates “forward-looking info” (inside the which means of relevant Canadian securities legal guidelines) and “forward-looking statements” (inside the which means of the U.S. Non-public Securities Litigation Reform Act of 1995). Such statements or info are recognized with phrases resembling “anticipate”, “consider”, “count on”, “plan”, “intend”, “potential”, “estimate”, “suggest”, “mission”, “outlook”, “foresee” or related phrases suggesting future outcomes or statements relating to any potential end result. Such statements embody expectations of trade analysts and consultants with respect to trade progress, the Firm’s personal expectations with regard to the success of the Firm’s product growth efforts, the efficiency of its merchandise, the expectation for income, together with continued steering for strong demand offered by present prospects, the anticipated outcomes of its operations, assembly income targets, and the expectation of continued success within the financing efforts, the aptitude, performance, efficiency and value of the Firm’s expertise in addition to the market acceptance, inclusion and timing of the Firm’s expertise in present and future merchandise and expectations for approval of proposals on the Firm’s annual assembly of shareholders.

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Such forward-looking info or statements are based mostly on numerous dangers, uncertainties and assumptions which can trigger precise outcomes or different expectations to vary materially from these anticipated and which can show to be incorrect. Assumptions have been made relating to, amongst different issues, forecasts of trade analysts and consultants with respect to trade progress, the Firm’s personal expectations with regard to administration’s expectations relating to the success and timing for completion of its growth efforts, the introduction of latest merchandise, its gross sales efforts and income era, its financing actions, future progress, recruitment of personnel, opening of workplaces, the shape and potential of its three way partnership, plans for and completion of initiatives by the Firm’s consultants, contractors and companions, availability of capital, and the need to incur capital and different expenditures. Precise outcomes might differ materially on account of numerous elements, together with, with out limitation, the failure of its merchandise to satisfy efficiency necessities, lack of gross sales in its merchandise, as soon as launched, the failure to generate gross sales and income, the failure of continued strong steering from prospects to materialize, operational dangers within the completion of the Firm’s anticipated initiatives, lack of efficiency of its three way partnership, dangers affecting the Firm’s capability to execute initiatives, the flexibility of the Firm to generate gross sales for its merchandise, the flexibility to draw key personnel, and the flexibility to boost further capital if wanted. Though the Firm believes that the expectations mirrored within the forward-looking info or statements are cheap, potential buyers within the Firm’s securities mustn’t place undue reliance on forward-looking statements as a result of the Firm can present no assurance that such expectations will show to be right. Ahead-looking info and statements contained on this information launch are as of the date of this information launch and the Firm assumes no obligation to replace or revise this forward-looking info and statements besides as required by legislation.

Neither TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this launch.
120 Eglinton Avenue, East, Suite 1107, Toronto, ON, M4P 1E2- Tel: 416-368-9411 – Fax: 416-322-5075

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