House 19 bought the 125k

I am hoping Bcd that as denselight will be increasing revenues and becoming cashflow pos in 1h2017, that most of the costs and burn rate will decrease dramatically. If Denselight has pos cash flow, which I would guess, will cover all the employee's in that division, then the cash on hand will be more than sufficient to get to NRE's for prototypes and cover any other costs and wages incurred by that time.

I think that the 4th Qtr(2016) Financial results could be more of a telling point, about what to expect for 2017.

Ron

If this holds true, then we will not have to go to the Market anymore. Denselight should be able to finance the completion of the Optical Engine and any other expenses that are incurred. (My Bold)

Business Outlook

The Company will not be able to reconfirm its previously provided guidance to achieve revenue of US$2,000,000 in the second half of 2016, primarily as a result of unexpected production delays at its Singapore fab. It was anticipated at the completion of the DenseLight acquisition that changes were needed in the operations and organization of the business unit, a strategy for which has been developed and is being implemented.  Substantial progress has been made to date and will continue into 2017. The new guidance is for revenue in the range of US$1,600,000 to US$1,800,000 for the second half of 2016, and depends on closing and shipping multiple orders for sensor products, 2.5G DFB lasers and the timely completion of NRE for key clients.  Even with the reduced revenue guidance, the Company has achieved significant quarter on quarter revenue increases and expects that the DenseLight business unit will develop into a robust platform for the commercialization of POET technology.  The Company anticipates continued revenue growth at DenseLight and its intention to reach positive operating cash flow by the first half of 2017.

I agree with you BCD. The one catalyst that might shorten production time and maybe bring prototypes to market sooner than most of us think, would be to buy another company(using some proceeds of PO) with most of the equipment and possibly manpower needed to keep timelines close to original forecast instead of building or expanding current facilities.

If they have to purchase new Eip, it would also be more economical to use existing space if available or install the new Eip into a company, which would fit in with Poets plans, that might be aquired at a decent price.

Trying to look at this from managements view and getting around roadblocks and bottlenecks that were not anticipated from regulations and waiting times from other companies, while keeping revenue goals in there timelines, to be self sustaining to run and grow the company.

The more control that they have in there hands, without possible delays from other partners or agreements, to achieve the optimized goals and testing needed, would be a blessing to all of us. At least that is what I would hope management would be thinking about.

I wonder if they already purchased the equipment and had this plan to take control of there own timeline before this offering was even presented. They would have been in a tight situation with cash on hand, if it was used already and taken from the 10m balance at the end of August, thus creating a cash crunch which created the whole PO situation to be rushed thru.

We will soon find out if some of the timelines are still close to being met in the near future.

In this situation, we could see recovery of the share price sooner than we think.

Another possibility?

Mack

Excellent recap. I agree for post of the year. Its almost like having a crystal ball. Only if we all sold to the traders then and came back now.

Ron