POET Technologies Inc.

Q1 2016 compared to Q4 2015

R&D decreased by $402,149 from Q4 2015 to Q1 2016. In Q4 2015, the Company committed to transition to an

increased outsourcing model as the most effective manner to monetize the POET process. During Q4 2015, the

Company incurred additional upfront costs associated with establishing new foundry and technology development

relationships with companies like Anadigics Inc., Epiworks, Wavetek and Intelligent Epitaxy Technology to

expedite the technology development. In Q1 2016, the Company received positive information on its detectors

produced by Wavetek. The Company’s detectors have better performance than any detectors currently on the

market.

http://intelliepi.com/

Intelligent Epitaxy Technology, Inc. (IntelliEPI) was first established in January 1999 in Richardson, Texas to supply epitaxy-based compound semiconductor epi-wafers to the electronics and optoelectronics industries.

IntelliEPI utilizes its proprietary real time in situ growth monitoring technology on molecular beam epitaxy (MBE) systems for the manufacturing of epi-wafers on GaAs and InP substrates.

What distinguishes IntelliEPI from the competitors is our proprietary in-growth sensor technology with our MBE growth experience. IntelliEPI owns three U.S. patents on real time in situ growth sensor technology. This proprietary monitoring technology is the first to be implemented in multi-wafer production MBE systems. IntelliEPI performs in situ analysis on growth parameters such as layer thickness, composition, and growth rates to optimize each growth run to supply customers with best quality and inexpensive epi-wafers.

http://intelliepi.com/products/