Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 000-55135 |
Entity Registrant Name | POET TECHNOLOGIES INC. |
Entity Central Index Key | 0001437424 |
Entity Incorporation, State or Country Code | A6 |
Entity Address, Address Line One | 1107 – 120 Eglinton Avenue East |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M4P 1E2 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 37,841,950 |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 688 |
Auditor Name | Marcum LLP |
Auditor Location | New Haven, CT |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Suresh Venkatesan |
Contact Personnel Email Address | svv@poet-technologies.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current | |||
Cash and cash equivalents (Note 2) | $ 9,229,845 | $ 14,941,775 | $ 6,872,894 |
Short-term investments (Note 2) | 6,366,828 | ||
Accounts receivable (Notes 3) | 62,842 | ||
Prepaids and other current assets (Note 4) | 275,507 | 480,523 | 618,717 |
Total current assets | 9,568,194 | 21,789,126 | 7,491,611 |
Investment in joint venture (Note 5) | 1,445,251 | ||
Property and equipment (Note 6) | 5,070,507 | 3,064,234 | 3,185,754 |
Patents and licenses (Note 7) | 510,705 | 528,476 | 438,677 |
Right of use asset (Note 8) | 241,047 | 326,890 | 520,686 |
Total assets | 15,390,453 | 27,153,977 | 11,636,728 |
Current | |||
Accounts payable and accrued liabilities (Note 9) | 3,362,430 | 1,791,222 | 1,730,361 |
Covid-19 government support loans (Note 24) | 29,520 | 31,660 | 147,841 |
Lease liability (Note 8) | 150,951 | 101,074 | 172,949 |
Convertible debentures (Note 10) | 3,341,246 | ||
Contract liabilities (Note 3) | 274,192 | ||
Total current liabilities | 3,817,093 | 1,923,956 | 5,392,397 |
Non-current covid-19 government support (Note 24) | 70,310 | ||
Non-current lease liability (Note 8) | 128,312 | 258,274 | 359,048 |
Total liabilities | 3,945,405 | 2,182,230 | 5,821,755 |
Shareholders’ Equity | |||
Share capital (Note 11(b)) | 151,206,539 | 147,729,846 | 114,586,260 |
Equity component of convertible debentures (Note 10) | 565,121 | ||
Warrants and compensation options (Note 12) | 5,905,642 | 5,328,455 | 5,557,002 |
Contributed surplus (Note 13) | 51,016,808 | 46,954,333 | 44,407,679 |
Accumulated other comprehensive loss | (2,660,281) | (2,053,917) | (1,983,212) |
Deficit | (194,023,660) | (172,986,970) | (157,317,877) |
Total equity | 11,445,048 | 24,971,747 | 5,814,973 |
Total equity and liabilities | $ 15,390,453 | $ 27,153,977 | $ 11,636,728 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Deficit - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Revenue (Note 22) | $ 552,748 | $ 209,100 | |
Operating expenses | |||
Selling, marketing and administration (Note 20) | 9,516,271 | 9,055,528 | 8,137,998 |
Research and development (Note 20) | 10,746,743 | 8,165,128 | 6,634,317 |
Operating expenses | 20,263,014 | 17,220,656 | 14,772,315 |
Operating loss before the following | (19,710,266) | (17,011,556) | (14,772,315) |
Interest expense (Notes 8 and 10) | (49,738) | (364,619) | (937,903) |
Other income, including interest | 188,320 | 75,084 | 41,148 |
Forgiveness of Covid-19 government support loans (Note 24) | 186,747 | ||
Gain on contribution of intellectual property to joint venture (Note 5) | 1,746,987 | 2,587,500 | |
Share of loss in joint venture (Note 5) | (3,211,993) | (1,142,249) | |
Credit loss on receivable from sale of discontinued operation (Note 21) | (2,500,000) | ||
Net loss | (21,036,690) | (15,669,093) | (18,169,070) |
Deficit, beginning of year | (172,986,970) | (157,317,877) | (139,148,807) |
Net loss | (21,036,690) | (15,669,093) | (18,169,070) |
Deficit, end of year | $ (194,023,660) | $ (172,986,970) | $ (157,317,877) |
Basic and diluted net loss per share (Note 14) | $ (0.57) | $ (0.45) | $ (0.62) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net loss | $ (21,036,690) | $ (15,669,093) | $ (18,169,070) |
Other comprehensive (loss) - net of income taxes | |||
Exchange differences on translating foreign operations | (606,364) | (70,705) | (74,497) |
Comprehensive loss | $ (21,643,054) | $ (15,739,798) | $ (18,243,567) |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) | Issued capital [member] | Equity Componentof Convertible Debentures [Member] | Warrants And Compensation Options [Member] | Contributed Surplus [Member] | Accumulated other comprehensive income [member] | Retained earnings [member] |
Beginning balance at Dec. 31, 2019 | $ 112,144,172 | $ 627,511 | $ 8,525,358 | $ 38,799,337 | $ (1,908,715) | $ (139,148,807) |
IfrsStatementLineItems [Line Items] | ||||||
Funds from the exercise of stock options | 794,808 | |||||
Fair value of stock options exercised | 768,356 | (768,356) | ||||
Fair value of expired warrants and compensation options | 293,642 | 2,765,630 | ||||
Fair value of warrants and compensation warrants exercised | 127,964 | (127,964) | ||||
Conversion of convertible debentures | 369,545 | |||||
Fair value of warrants issued on conversion of convertible debentures | (146,858) | |||||
Exercise of warrants issued in conjunction with debt financing | 221,620 | |||||
Common shares issued to settle accounts payable | 13,011 | |||||
Funds from common shares issued on private placement | ||||||
Share issue costs | ||||||
Fair value of warrants issued on private placement | ||||||
Fair value of broker warrant issued as share issue costs | ||||||
Fair value of equity component of convertible debentures | (62,390) | |||||
Fair value of warrants issued in conjunction with of debt financing | (221,620) | |||||
Fair value of expired warrants and compensation options | (2,765,630) | |||||
Fair value of warrants issued on the exercise of convertible debentures | 146,858 | |||||
Fair value of broker warrants issued as share issue costs | ||||||
Stock-based compensation | 3,612,945 | |||||
Fair value effect of conversion of convertible debentures | (1,877) | |||||
Other comprehensive (loss) attributable to common shareholders - translation adjustment | (74,497) | |||||
Net loss | (18,169,070) | |||||
Total Shareholders’ Equity at Dec. 31, 2020 | 114,586,260 | 565,121 | 5,557,002 | 44,407,679 | (1,983,212) | (157,317,877) |
IfrsStatementLineItems [Line Items] | ||||||
Funds from the exercise of stock options | 3,124,392 | |||||
Fair value of stock options exercised | 2,699,042 | (2,699,042) | ||||
Fair value of expired warrants and compensation options | 12,994,358 | 160,470 | ||||
Fair value of warrants and compensation warrants exercised | 5,351,586 | (5,351,586) | ||||
Conversion of convertible debentures | 3,571,342 | |||||
Fair value of warrants issued on conversion of convertible debentures | (1,229,305) | |||||
Exercise of warrants issued in conjunction with debt financing | ||||||
Common shares issued to settle accounts payable | 13,814 | |||||
Funds from common shares issued on private placement | 11,815,595 | |||||
Share issue costs | (1,143,034) | |||||
Fair value of warrants issued on private placement | (3,766,007) | 3,766,007 | ||||
Fair value of broker warrant issued as share issue costs | (288,197) | |||||
Fair value of equity component of convertible debentures | (565,121) | |||||
Fair value of warrants issued in conjunction with of debt financing | ||||||
Fair value of expired warrants and compensation options | (160,470) | |||||
Fair value of warrants issued on the exercise of convertible debentures | 1,229,305 | |||||
Fair value of broker warrants issued as share issue costs | 288,197 | |||||
Stock-based compensation | 4,534,370 | |||||
Fair value effect of conversion of convertible debentures | 550,856 | |||||
Other comprehensive (loss) attributable to common shareholders - translation adjustment | (70,705) | |||||
Net loss | (15,669,093) | |||||
Total Shareholders’ Equity at Dec. 31, 2021 | 147,729,846 | 5,328,455 | 46,954,333 | (2,053,917) | (172,986,970) | |
IfrsStatementLineItems [Line Items] | ||||||
Funds from the exercise of stock options | 418,845 | |||||
Fair value of stock options exercised | 374,129 | (374,129) | ||||
Fair value of expired warrants and compensation options | 284,437 | |||||
Fair value of warrants and compensation warrants exercised | 79,547 | (79,547) | ||||
Conversion of convertible debentures | ||||||
Fair value of warrants issued on conversion of convertible debentures | ||||||
Exercise of warrants issued in conjunction with debt financing | ||||||
Common shares issued to settle accounts payable | 40,029 | |||||
Funds from common shares issued on private placement | 3,184,332 | |||||
Share issue costs | (247,892) | |||||
Fair value of warrants issued on private placement | (656,734) | 656,734 | ||||
Fair value of broker warrant issued as share issue costs | ||||||
Fair value of equity component of convertible debentures | ||||||
Fair value of warrants issued in conjunction with of debt financing | ||||||
Fair value of expired warrants and compensation options | ||||||
Fair value of warrants issued on the exercise of convertible debentures | ||||||
Fair value of broker warrants issued as share issue costs | ||||||
Stock-based compensation | 4,436,604 | |||||
Fair value effect of conversion of convertible debentures | ||||||
Other comprehensive (loss) attributable to common shareholders - translation adjustment | (606,364) | |||||
Net loss | (21,036,690) | |||||
Total Shareholders’ Equity at Dec. 31, 2022 | $ 151,206,539 | $ 5,905,642 | $ 51,016,808 | $ (2,660,281) | $ (194,023,660) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net loss | $ (21,036,690) | $ (15,669,093) | $ (18,169,070) |
Adjustments for: | |||
Depreciation of property and equipment (Note 6) | 1,054,264 | 840,366 | 631,263 |
Amortization of patents and licenses (Note 7) | 80,246 | 69,560 | 65,782 |
Amortization of right of use asset (Note 8) | 158,648 | 190,596 | 116,057 |
Accretion of debt discount on convertible debentures and non-cash interest (Notes 8 and 10) | 49,738 | 213,843 | 524,095 |
Stock-based compensation (Note 13) | 4,436,604 | 4,534,370 | 3,612,945 |
Non-cash settled operating costs (Notes 6 and 11) | 40,029 | 13,814 | 910,738 |
Credit loss on receivable from the sale of discontinued operations (Note 21) | 2,500,000 | ||
Gain on lease modification (Note 8) | (786) | ||
Non-cash foreign exchange | 161,000 | ||
Gain on contribution of intellectual property to joint venture (Note 5) | (1,746,987) | (2,587,500) | |
Share of loss in joint venture (Note 5) | 3,211,993 | 1,142,249 | |
Forgiveness of covid-19 government support loans (Note 24) | (186,747) | ||
Total adjustments to reconcile profit (loss) | (13,752,155) | (11,438,542) | (9,647,976) |
Net change in non-cash working capital accounts: | |||
Accounts receivable | (61,099) | ||
Prepaid and other current assets | (356,199) | 134,926 | 232,522 |
Accounts payable and accrued liabilities | 1,596,690 | 70,323 | (22,510) |
Contract liabilities | 246,853 | ||
Cash flows from operating activities | (12,325,910) | (11,233,293) | (9,437,964) |
INVESTING ACTIVITIES | |||
Maturity (purchase) of short-term investments (Note 2) | 6,366,828 | (6,366,828) | |
Proceeds from the sale of discontinued operations (Note 21) | 15,500,000 | ||
Purchase of property and equipment (Note 6) | (3,011,562) | (771,523) | (1,521,788) |
Purchase of patents and licenses (Note 7) | (62,475) | (159,359) | (52,075) |
Cash flows from investing activities | 3,292,791 | (7,297,710) | 13,926,137 |
FINANCING ACTIVITIES | |||
Issue of common shares for cash, net of issue costs (Note 11) | 3,639,722 | 26,791,311 | 1,088,450 |
Payment of lease liability (Note 8) | (204,518) | (237,634) | (144,142) |
Proceeds from covid-19 government support loans (Note 24) | 218,151 | ||
Cash flows from financing activities | 3,435,204 | 26,553,677 | 1,162,459 |
Effect of exchange rate on cash | (114,015) | 46,207 | (205,867) |
Net change in cash and cash equivalents | (5,711,930) | 8,068,881 | 5,444,765 |
Cash and cash equivalents, beginning of year | 14,941,775 | 6,872,894 | 1,428,129 |
Cash and cash equivalents, end of year | $ 9,229,845 | $ 14,941,775 | $ 6,872,894 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS POET Technologies Inc. is incorporated in the Province of Ontario. POET Technologies Inc. and its subsidiaries (the “Company”) design and develop the POET Optical Interposer and Photonic Integrated Circuits for the data center and tele-communications markets. The Company’s head office is located at 120 Eglinton Avenue East, Suite 1107, Toronto, Ontario, Canada M4P 1E2. These audited consolidated financial statements of the Company were approved by the Board of Directors of the Company on March 31, 2023. These financial statements have been prepared on the going concern basis which assumes that the Company will have sufficient cash to pay its debts, as and when they become payable, for a period of at least 12 months from the date the financial report was authorised for issue. As at December 31, 2022, the Company has accumulated losses of $ (194,023,660) 5,751,101 (12,325,910) To address the future funding requirements, management has undertaken the following initiatives: 1. Raised $ 3,184,332 in gross funding from a private placement on December 2, 2022. The financing included the issuance of warrants at an exercise price of C$ 4.95 . These warrants are currently in- the- money and will be exercisable after April 2, 2023 2. Extended the exercise date and repriced certain warrants to induce warrant holders to exercise warrants that are in-the-money (See note 25). 3. Encouraged warrant holders with in-the-money warrants that expire between April 2023 and September 2023 to exercise their warrants prior to the expiry dates. 4. Established a strict budgetary process with a focus on maintaining an appropriate level of corporate overheads in line with the Company’s available cash resources. The Company’s financial statements do not include any adjustments to the assets’ carrying amount, to the expenses presented and to the reclassification of the balance sheets items that could be necessary should the Company be unable to continue its operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements of the Company and its subsidiaries were prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below: Basis of presentation These consolidated financial statements include the accounts of POET Technologies Inc. and its subsidiaries; ODIS Inc. (“ODIS”), Opel Solar Inc. (“OPEL”), BB Photonics Inc. (“BB Photonics”), POET Technologies Pte Ltd. (“PTS”) and POET Optoelectronics Shenzhen Co., Ltd (“POET Shenzhen”). All intercompany balances and transactions have been eliminated on consolidation. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Business combinations Acquisitions of businesses are accounted for using the acquisition method. The acquisition cost is measured at the acquisition date at the fair value of the consideration transferred, including all contingent consideration. Subsequent changes in contingent consideration are accounted for through the consolidated statements of operations and deficit and consolidated statements of comprehensive loss in accordance with the applicable standards. Goodwill arising on acquisition is initially measured at cost, being the difference between the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree and the net recognized amount (generally fair value) of the identifiable assets and liabilities assumed at the acquisition date. If the net of the amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in the consolidated statements of operations and deficit as a bargain purchase gain. Acquisition-related costs, other than those that are associated with the issue of debt or equity securities that the Company incurs in connection with a business combination, are expensed as incurred. Foreign currency translation These consolidated financial statements are presented in U.S. dollars (“USD”), which is the Company’s presentation currency. Items included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities not denominated in the functional currency of an entity are recognized in the statement of operations and deficit. Assets and liabilities of entities with functional currencies other than U.S. dollars are translated into the presentation currency at the year end rates of exchange, and the results of their operations are translated at average rates of exchange for the year. The resulting translation adjustments are included in accumulated other comprehensive loss in shareholders’ equity. Additionally, foreign exchange gains and losses related to certain intercompany loans that are permanent in nature are included in accumulated other comprehensive loss. Elements of equity are translated at historical rates. Financial instruments Financial assets held with an objective to hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest are measured at amortised cost using the effective interest method. Debt investments held with an objective to hold both assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of fair value are measured at FVTOCI. All other financial assets are classified and measured at fair value through profit or loss (“FVTPL”). Financial liabilities are classified as either FVTPL or other financial liabilities, and the portion of the change in fair value that relates to the Company’s credit risk is presented in other comprehensive income (loss). Instruments classified as FVTPL are measured at fair value with unrealized gains and losses recognized in net income (loss). Other financial liabilities are subsequently measured at amortised cost using the effective interest method. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities, other than financial assets and financial liabilities classified as FVTPL, are added to or deducted from the fair value on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities classified as FVTPL are recognized immediately in consolidated net income (loss). Derecognition Financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any interest in transferred financial assets that is created or retained by the Company is recognized as a separate asset or liability. Financial liabilities A financial liability is derecognized from the balance sheet when it is extinguished, that is, when the obligation specified in the contract is either discharged, cancelled or expires. Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms, or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. A gain or loss from extinguishment of the original financial liability is recognized in profit or loss. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. The following table outlines the classification of financial instruments under IFRS 9: SCHEDULE OF CLASSIFICATION OF FINANCIAL INSTRUMENTS Financial Assets Cash and cash equivalents Amortized cost Short-term investments Amortized cost Accounts receivable Amortized cost Financial Liabilities Accounts payable and accrued liabilities Amortized cost Convertible debentures Amortized cost Contract liabilities Amortized cost Covid-19 government support loans Amortized cost Convertible debentures are accounted for as a compound financial instrument with a debt component and a separate equity component. The debt component of these compound financial instruments is measured at fair value on initial recognition by discounting the stream of future interest and principal payments at the rate of interest prevailing at the date of issue for instruments of similar term and risk. The debt component is subsequently deducted from the total carrying value of the compound instrument to derive the equity component. The debt component is subsequently measured at amortized cost using the effective interest rate method. Interest expense based on the coupon rate of the debenture and the accretion of the liability component to the amount that will be payable on redemption are recognized through profit or loss as a finance cost. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and cash equivalents Cash and cash equivalents consist of cash in current accounts of $ 1,981,765 4,216,911 722,894 7,248,080 10,724,864 6,150,000 0.20 0.25 Cash and cash equivalents include restricted funds of nil nil 184,569 nil 14,197 14,197 Short-term investments The short-term investments of nil 6,366,828 nil 0.75 1.44 Property and equipment Property and equipment are recorded at cost. Depreciation is calculated based on the estimated useful life of the asset using the following method and useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIFE Machinery and equipment Straight Line, 5 Leasehold improvements Straight Line, 5 Office equipment Straight Line, 3 5 Patents and licenses Patents and licenses are recorded at cost and amortized on a straight line basis over 12 Impairment of long-lived assets The Company’s tangible and intangible assets are reviewed for indications of impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. An assessment is made at each reporting date whether there is any indication that an asset may be impaired. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognized in profit and loss for the year. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit (“CGU”) to which the asset belongs. An impairment loss is reversed if there is an indication that there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. No POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income taxes are provided on differences between the financial reporting and income tax bases of assets and liabilities and on income tax losses available to be carried forward to future years for tax purposes. Deferred income taxes are measured using the substantively enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Deferred tax assets are only recognized if the amount is expected to be realized in the future. Revenue recognition Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue when it transfers control over a product or service to a customer. Sale of goods Revenue from the sale of goods is recognized, net of discounts and customer rebates, at the point in time the transfer of control of the related products has taken place as specified in the sales contract and collectability is reasonably assured. Service revenue The Company provides contract services, primarily in the form of non-recurring revenue (“NRE”) where control is passed to the customer over time. The contracts generally provide agreed upon milestones for customer payment which include but are not limited to the delivery of sample products, design reports and test reports. The customer makes payment when it has approved the delivery of the milestone. The Company must determine if the contract is made up of a series of independent performance obligations or a single performance obligation. Where NRE contracts contain multiple performance obligations for which a standalone transaction price can be assessed, revenue is recognized as each performance obligation is satisfied. Where NRE contracts contain a single performance obligation to be settled over time, revenue is recognized progressively based on the output method. Other income Interest income Interest income on cash is recognized as earned using the effective interest method. Wage subsidies Wages subsidies received from the Singaporean government are netted against R&D related wages and benefits on the consolidated statements of operations and deficit. Government Grants Loans received exclusively from governmental agencies to support the Company throughout the COVID-19 pandemic qualify to be forgiven if certain conditions are met. Forgiveness of COVID-19 related loans will be recognized as other income on the consolidated statements of operations and deficit. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Intangible assets Research and development costs Research costs are expensed in the year incurred. Development costs are also expensed in the year incurred unless the Company believes a development project meets IFRS criteria as set out in IAS 38, Intangible Assets In-Process Research and Development Under IFRS, in-process research and development (“IPR&D”) acquired in a business combination that meets the definition of an intangible asset is capitalized with amortization commencing when the asset is ready for use (i.e., when development is complete). The Company does not capitalize its IPR&D. Stock-based compensation Stock options and warrants awarded to non employees are measured using the fair value of the goods or services received unless that fair value cannot be estimated reliably, in which case measurement is based on the fair value of the stock options. Stock options and warrants awarded to employees are accounted for using the fair value method. The fair value of such stock options and warrants granted is recognized as an expense on a proportionate basis consistent with the vesting features of each tranche of the grant. The fair value is calculated using the Black-Scholes option pricing model with assumptions applicable at the date of grant. Loss per share Basic loss per share, net of taxes is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period after giving effect to potentially dilutive financial instruments. The dilutive effect of stock options and warrants is determined using the treasury stock method. Joint Venture A joint arrangement is an arrangement among two or more parties where the parties are bound by a contractual arrangement and the contractual arrangement gives the parties joint control of the arrangement. A joint venture is a form of joint arrangement where an entity is independently formed and the parties jointly have rights to the net assets of the arrangement and therefore account for their interests under the equity method. Share Consolidation On February 24, 2022, the Company filed Articles of Amendment to consolidate its common shares on a ten-for-one basis. For further clarity, for every ten (10) pre-consolidated common shares, shareholders received one (1) post-consolidated common share. On February 28, 2022 the Company’s common shares began trading on the TSX Venture Exchange on a post consolidation basis. The Company’s name and trading symbol remained unchanged. All references to share and per share amounts in these consolidated financial statements and accompanying notes to the consolidated financial statements have been retroactively restated to reflect the ten-for-one share consolidation. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) |
ACCOUNTS RECEIVABLE AND CONTRAC
ACCOUNTS RECEIVABLE AND CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable And Contract Liabilities | |
ACCOUNTS RECEIVABLE AND CONTRACT LIABILITIES | 3. ACCOUNTS RECEIVABLE AND CONTRACT LIABILITIES Revenue Contract Balances Schedule of Revenue Contract Balances Contract Receivables Liabilities Opening balance, January 1, 2022 $ - $ - Customer deposits - (779,870 ) Changes due to payment, fulfillment of performance obligations or revenues recognized 62,842 489,906 Effect of changes in foreign exchange rates - 15,772 Balance, December 31, 2022 $ 62,842 $ (274,192 ) |
PREPAIDS AND OTHER CURRENT ASSE
PREPAIDS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAIDS AND OTHER CURRENT ASSETS | 4. PREPAIDS AND OTHER CURRENT ASSETS The following table reflects the details of prepaids and other current assets at December 31: SCHEDULE OF PRREPAIDS AND OTHER CURRENT ASSETS 2022 2021 2020 Sales tax recoverable and other current assets $ 128,321 $ 141,568 $ 122,353 Deposits on equipment - 288,287 - Prepaid expenses 147,186 50,668 496,364 Prepaids and other current assets $ 275,507 $ 480,523 $ 618,717 |
JOINT VENTURE
JOINT VENTURE | 12 Months Ended |
Dec. 31, 2022 | |
Joint Venture | |
JOINT VENTURE | 5. JOINT VENTURE On October 20, 2020, the Company signed a Joint Venture Agreement (“JVA”) establishing a joint venture, Super Photonics Xiamen Co., Ltd (“SPX”) Xiamen Sanan Integrated Circuit Co. Ltd. (“Sanan IC”) whose purpose is to design, develop, manufacture and sell 100G, 200G and 400G optical engines based on POET’s proprietary Optical Interposer platform technology. The Company’s contribution of intellectual property to SPX was independently valued at $ 22,500,000 1,746,987 2,587,500 nil 18,159,632 19,912,500 nil 19.3 80.7 11.5 88.5 nil SPX was determined to be a joint venture as both Sanan IC and POET exercise joint control over SPX. All relevant activity of SPX require unanimous consent. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 5. JOINT VENTURE (Contained) The Company’s investment in joint venture during the year can be summarized as follows: SCHEDULE OF INVESTMENT IN JOINT VENTURE Balance, January 1, 2021 $ - Contribution of intellectual property 22,500,000 Unrecognized gain on contribution of intellectual property (19,912,500 ) Share of loss in joint venture for the year ended December 31, 2021 (1,142,249 ) Investment balance, December 31, 2021 1,445,251 Recognized gain on contribution of intellectual property 1,746,987 Share of loss in joint venture for the year ended December 31, 2022 (3,211,993 ) Effect of changes in foreign exchange rates 19,755 Investment balance, December 31, 2022 $ - Summarized financial information of the joint venture is as follows: SCHEDULE OF FINANCIAL INFORMATION OF JOINT VENTURE December 31, 2022 2021 2020 Current assets $ 1,951,654 $ 2,287,252 $ - Intangible assets 18,708,065 22,500,000 - Liabilities (180,897 ) (44,683 ) - Owners Equity (20,478,822 ) (24,742,569 ) - Net loss $ 4,319,857 $ 1,212,417 $ - The Company recognizes its share of SPX’s profits or losses using the equity method. On a weighted average basis, the Company’s share of the net operating loss was 83.7 (3,614,211) (3,211,993) 95.3 (634,666) 0 nil |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT SCHEDULE OF PROPERTY AND EQUIPMENT Equipment not ready for use Leasehold improvements Machinery and equipment Office equipment Total Cost Balance, January 1, 2020 $ 764,342 $ - $ 2,873,255 $ 85,233 $ 3,722,830 Additions 888,726 68,961 525,685 38,416 1,521,788 Reclassification (519,366 ) - 516,111 3,255 - Disposals (1) (897,727 ) - - - (897,727 ) Effect of changes in foreign exchange rates (8,828 ) 2,967 79,606 1,281 75,026 Balance,December 31, 2020 227,147 71,928 3,994,657 128,185 4,421,917 Additions, net of returns (2) (128,575 ) - 842,877 57,221 771,523 Reclassification (96,334 ) 47,393 48,941 - - Effect of changes in foreign exchange rates (2,238 ) (2,206 ) (56,455 ) (2,137 ) (63,036 ) Balance, December 31, 2021 - 117,115 4,830,020 183,269 5,130,404 Property and equipment at cost, beginning - 117,115 4,830,020 183,269 5,130,404 Additions 1,902,713 - 1,087,414 21,435 3,011,562 Additions, net of returns 1,902,713 - 1,087,414 21,435 3,011,562 Reclassification (141,702 ) - 162,917 (21,215 ) - Effect of changes in foreign exchange rates 54,898 6,544 11,270 (5,586 ) 67,126 Balance, December 31, 2022 1,815,909 123,659 6,091,621 177,903 8,209,092 Property and equipment at cost, ending 1,815,909 123,659 6,091,621 177,903 8,209,092 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 6. PROPERTY AND EQUIPMENT (Continued) Accumulated Depreciation Balance, January 1, 2020 - - 511,806 67,964 579,770 Depreciation for the year - 10,332 609,803 11,128 631,263 Effect of changes in foreign exchange rates - 445 24,405 280 25,130 Balance, December 31, 2020 - 10,777 1,146,014 79,372 1,236,163 Depreciation for the year - 18,891 794,834 26,641 840,366 Effect of changes in foreign exchange rates - (142 ) (10,122 ) (95 ) (10,359 ) Balance, December 31, 2021 - 29,526 1,930,726 105,918 2,066,170 Property and equipment, accumulated depreciation, beginning - 29,526 1,930,726 105,918 2,066,170 Depreciation for the year - 24,079 1,000,085 30,100 1,054,264 Effect of changes in foreign exchange rates - 2,529 27,727 (12,105 ) 18,151 Balance, December 31, 2022 - 56,134 2,958,538 123,913 3,138,585 Property and equipment, accumulated depreciation, ending - 56,134 2,958,538 123,913 3,138,585 Carrying Amounts At December 31, 2020 $ 227,147 $ 61,151 $ 2,848,643 $ 48,813 $ 3,185,754 At December 31, 2021 $ - $ 87,589 $ 2,899,294 $ 77,351 $ 3,064,234 At December 31, 2022 $ 1,815,909 $ 67,525 $ 3,133,083 $ 53,990 $ 5,070,507 Property and equipment, carrying amounts $ 1,815,909 $ 67,525 $ 3,133,083 $ 53,990 $ 5,070,507 (1) During 2020, the Company settled certain R&D expenses by transferring $ 897,727 (2) During 2021, the Company returned $ 196,490 |
PATENTS AND LICENSES
PATENTS AND LICENSES | 12 Months Ended |
Dec. 31, 2022 | |
PATENTS AND LICENSES | 7. PATENTS AND LICENSES SCHEDULE OF PATENTS AND LICENSES Cost Balance, January 1, 2020 $ 785,027 Additions 52,075 Disposals - Balance, December 31, 2020 837,102 Additions 159,359 Balance, December 31, 2021 996,461 Patents and licenses, cost, beginning 996,461 Additions 62,475 Balance, December 31, 2022 1,058,936 Patents and licenses, cost, ending 1,058,936 Accumulated Amortization Balance, January 1, 2020 332,643 Amortization 65,782 Balance, December 31, 2020 398,425 Amortization 69,560 Balance, December 31, 2021 467,985 Patents and licenses, accumulated amortization, beginning 467,985 Amortization 80,246 Balance, December 31, 2022 548,231 Patents and licenses, accumulated amortization, ending 548,231 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 7. PATENTS AND LICENSES (Continued) Carrying Amounts At December 31, 2020 $ 438,677 At December 31, 2021 $ 528,476 At December 31, 2022 $ 510,705 Patents and licenses, carrying amounts $ 510,705 |
RIGHT OF USE ASSET AND LEASE LI
RIGHT OF USE ASSET AND LEASE LIABILITY | 12 Months Ended |
Dec. 31, 2022 | |
RIGHT OF USE ASSET AND LEASE LIABILITY | 8. RIGHT OF USE ASSET AND LEASE LIABILITY The Company recognizes a lease liability and right of use asset relating to its commercial leases. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 12 SCHEDULE OF RIGHT OF USE ASSET AND LEASE LIABILITY Right of use asset Building Cost Balance, January 1, 2020 $ 238,200 Additions 465,068 Lease modification (47,939 ) Effect of changes in foreign exchange rates (2,097 ) Balance, December 31, 2020 653,232 Effect of changes in foreign exchange rates (4,122 ) Balance, December 31, 2021 649,110 Right of use asset, cost, beginning 649,110 Lease modification 81,542 Balance, December 31, 2022 730,652 Right of use asset, cost, ending 730,652 Accumulated Amortization Balance, January 1, 2020 15,683 Amortization 116,057 Effect of changes in foreign exchange rates 806 Balance, December 31, 2020 132,546 Amortization 190,596 Effect of changes in foreign exchange rates (922 ) Balance, December 31, 2021 322,220 Right of use asset, accumulated amortization, beginning 322,220 Amortization 158,648 Effect of changes in foreign exchange rates 8,737 Balance, December 31, 2022 489,605 Right of use asset, accumulated amortization, ending 489,605 Carrying Amounts At December 31, 2020 $ 520,686 At December 31, 2021 $ 326,890 At December 31, 2022 $ 241,047 Right of use asset, carrying amounts $ 241,047 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 8. RIGHT OF USE ASSET AND LEASE LIABILITY (Continued) Lease liability Balance, January 1, 2020 $ 223,758 Interest expense 44,655 Lease modification (48,725 ) Additions 452,385 Lease payments (144,142 ) Effect of changes in foreign exchange rates 4,066 Balance, December 31, 2020 531,997 Interest expense 67,675 Lease payments (237,634 ) Effect of changes in foreign exchange rates (2,690 ) Balance, December 31, 2021 359,348 Lease liability, beginning 359,348 Interest expense 49,738 Lease modification 81,542 Lease payments (204,518 ) Effect of changes in foreign exchange rates (6,847 ) Balance, December 31, 2022 $ 279,263 Lease liability, ending $ 279,263 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities at December 31 was as follows: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2022 2021 2020 Trade payables $ 2,723,531 $ 987,498 $ 1,603,284 Payroll related liabilities 452,751 521,692 60,455 Accrued liabilities 186,148 282,032 66,622 Total accounts payable and accrued liabilities $ 3,362,430 $ 1,791,222 $ 1,730,361 |
CONVERTIBLE DEBENTURES, LOAN PA
CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Debentures Loan Payable And Promissory Note | |
CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE | 10. CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE On April 1, 2019 the Company announced that it arranged for certain financing required to bridge the Company up to the sale of its DenseLight subsidiary. Convertible Debentures In 2019, the Board of Directors approved the issuance of up to $ 10.5 3,729,921 4,988,292 12 1 377,072 499,462 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 10. CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE (Continued) The Convertible Debentures were convertible at the option of the holders thereof into units at any time after October 31, 2019 at a conversion price of CAD$ 4.00 1,245,750 Each unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of CAD$5.00 per share for a period of four years from the date upon which the convertible debenture is issued. Insiders of the Company subscribed for 14.3 535,000 710,000 4 146,000 200,000 IAS 32 Financial Instruments: Presentation 28.74 29.71 Because the Convertible Debentures are denominated in Canadian dollars and the conversion price is also denominated in Canadian dollars, the number of equity instruments that would be issued upon exercise of the convertible debentures are fixed. As a result, the equity component of the convertible debentures will not be periodically remeasured. During 2021, holders of certain convertible debentures converted $ 3,571,342 369,545 1,119,750 123,500 7,886 The following table reflects the details of convertible debentures at December 31, 2020: SCHEDULE OF CONVERTIBLE DEBENTURES Convertible Debentures Loan Equity Component Accretion Debt Component Issued April 3, 2020 (net of issue costs) $ 1,293,519 $ (242,004 ) $ 338,988 $ 1,390,503 Issued May 3, 2020 (net of issue costs) 806,893 (151,842 ) 218,159 873,210 Issued June 3, 2020 (net of issue costs) 496,995 (93,278 ) 117,481 521,198 Issued August 2, 2020 (net of issue costs) 290,365 (54,978 ) 62,683 298,070 Issued September 19, 2020 (net of issue costs) 122,965 (23,019 ) 22,905 122,851 Effect of foreign exchange rate changes - - - 135,414 Balance December 31, 2020 $ 3,010,737 $ (565,121 ) $ 760,216 $ 3,341,246 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital | |
SHARE CAPITAL | 11. SHARE CAPITAL (a) AUTHORIZED Unlimited number of common shares One special voting share (b) COMMON SHARES ISSUED SCHEDULE OF COMMON SHARES ISSUED Number of Shares Amount Balance, January 1, 2020 28,836,355 $ 112,144,172 Funds from the exercise of stock options 330,284 794,808 Fair value of stock options exercised - 768,356 Funds from the exercise of warrants 74,400 293,642 Fair value of exercised warrants (Notes 10 and 11) - 127,964 Issued on the conversion of convertible debentures (Note 10) 123,500 369,545 Fair value of warrants issued on conversion of convertible debentures - (146,858 ) Exercise of warrants issued in conjunction with debt financing 94,245 221,620 Shares issued to settle accounts payable 3,027 13,011 Balance, December 31, 2020 29,461,811 114,586,260 Funds from the exercise of stock options 1,001,519 3,124,392 Fair value of stock options exercised - 2,699,042 Issued on the conversion of convertible debentures (Note 10) 1,119,750 3,571,342 Fair value of warrants issued upon conversion of convertible debentures - (1,229,305 ) Funds from the exercise of warrants 3,144,750 12,994,358 Fair value of warrants exercised - 5,351,586 Funds from Common shares issued on private placement 1,764,720 11,815,595 Fair value of warrants issued on private placement - (3,766,007 ) Share issue costs - (1,143,034 ) Fair value of broker warrants issued as share issue costs - (288,197 ) Shares issued to settle accounts payable 1,678 13,814 Balance, December 31, 2021 36,494,228 147,729,846 Funds from Common shares issued on private placement 1,126,635 3,184,332 Fair value of warrants issued on private placement - (656,734 ) Share issue costs - (247,892 ) Shares issued to settle accounts payable 5,422 40,029 Funds from the exercise of stock options 143,437 418,845 Fair value of stock options exercised - 374,129 Funds from the exercise of warrants and compensation warrants 72,500 284,437 Fair value of warrants and compensation warrants exercised - 79,547 Adjustment for 10 for 1 share consolidation (272 ) - Balance, December 31, 2022 37,841,950 $ 151,206,539 During 2020, holders of certain convertible debentures converted $ 369,545 123,500 3.80 5.00 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 11. SHARE CAPITAL (Continued) The fair value of the share purchase warrants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0 1.32 76.55 2 years 146,858 On February 11, 2021, the Company completed a brokered private placement offering of 1,764,720 6.70 8.50 11,815,595 15,000,120 Each unit consists of one common share and one common share purchase warrant. 9.00 11.50 18.10 23.00 708,667 900,007 6 105,883 6.70 8.50 434,367 The fair value of the share purchase warrants and broker warrants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0 0.19 75.26 2 years 3,766,007 288,197 In 2020, the Company engaged with a firm to assist with its shareholder communications strategy. The terms of the agreement require the Company to issue common shares at certain pre-determined dates in satisfaction of past services rendered. During the year ended December 31, 2022, the Company settled $ 40,029 13,814 13,011 5,422 1,678 3,027 7.38 9.38 8.20 10.10 4.30 5.60 On December 2, 2022, the Company completed a non-brokered private placement offering of 1,126,635 2.78 3.81 3,184,332 4,292,479 Each unit consists of one common share and one half common share purchase warrant. 3.61 4.95 42,090 57,897 205,802 One director subscribed for 10,000 27,800 38,100 The fair value of the share purchase warrants and broker warrants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0 3.48 69.93 3 years 656,734 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 11. SHARE CAPITAL (Continued) Share Consolidation On February 24, 2022, the Company filed Articles of Amendment to consolidate its common shares on a ten-for-one basis. For further clarity, for every ten (10) pre-consolidated common shares, shareholders received one (1) post-consolidated common share |
WARRANTS AND COMPENSATION OPTIO
WARRANTS AND COMPENSATION OPTIONS | 12 Months Ended |
Dec. 31, 2022 | |
WARRANTS AND COMPENSATION OPTIONS | 12. WARRANTS AND COMPENSATION OPTIONS The following table reflects the continuity of warrants and compensation options: SCHEDULE OF WARRANTS AND COMPENSATION OPTIONS Historical Number of Average Exercise Warrants/ Historical Price Compensation options Fair value Balance, January 1, 2020 $ 4.30 4,953,979 $ 8,525,358 Fair value of warrants issued on conversion of convertible debentures (Notes 10 and 11) 3.80 123,500 146,858 Fair value of expired compensation options issued to brokers 4.30 (150,544 ) (479,204 ) Fair value related to the exercise of warrants issued as cost of debt financing (1) 2.70 (328,950 ) (221,620 ) Fair value of expired warrants issued on public offering 5.80 (1,254,535 ) (2,286,426 ) Historical fair value assigned to warrants exercised 3.90 (74,400 ) (127,964 ) Balance, December 31, 2020 3.90 3,269,050 5,557,002 Fair value of warrant issued on private placement (Note 26) 9.00 1,764,720 3,766,007 Fair value of broker warrants issued on private placement 6.70 105,883 288,197 Fair value of warrants issued on conversion of convertible debentures (Notes 10) 3.80 1,119,750 1,229,305 Historical fair value assigned to warrants exercised 3.90 (3,144,750 ) (5,351,586 ) Fair value of expired warrants 3.90 (93,300 ) (160,470 ) Balance, December 31, 2021 7.10 3,021,353 5,328,455 Fair value of warrant issued on private placement 1.17 563,318 656,734 Historical fair value assigned to warrants exercised 3.90 (72,500 ) (79,547 ) Balance, December 31, 2022 $ 6.15 3,512,171 $ 5,905,642 (1) These warrants had a cashless exercise feature. The warrant holder utilized the cashless exercise feature to exercise the warrants, which resulted in the Company issuing 94,245 |
STOCK OPTIONS AND CONTRIBUTED S
STOCK OPTIONS AND CONTRIBUTED SURPLUS | 12 Months Ended |
Dec. 31, 2022 | |
Stock Options And Contributed Surplus | |
STOCK OPTIONS AND CONTRIBUTED SURPLUS | 13. STOCK OPTIONS AND CONTRIBUTED SURPLUS Stock Options On October 7, 2021, shareholders of the Company approved amendments to the Company’s fixed 20 7,090,518 20 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 13. STOCK OPTIONS AND CONTRIBUTED SURPLUS (Continued) Stock option transactions and the number of stock options outstanding were as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING Historical Weighted Average Number of Exercise Options Price Balance, January 1, 2020 5,326,034 $ 4.30 Expired/cancelled (828,794 ) 10.20 Exercised (330,284 ) 2.40 Granted 947,493 3.60 Balance, December 31, 2020 5,114,449 3.30 Expired/cancelled (166,438 ) 3.40 Exercised (1,001,519 ) 3.00 Granted 1,013,125 8.50 Balance, December 31, 2021 4,959,617 4.40 Expired/cancelled (117,438 ) 6.02 Exercised (143,437 ) 2.85 Granted 2,043,083 3.32 Balance, December 31, 2022 6,741,825 $ 4.10 During the year ended December 31, 2022, the Company recorded stock-based compensation of $ 4,436,604 4,534,370 3,612,945 The stock options granted were valued using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF STOCK OPTIONS ASSUMPTIONS 2022 2021 2020 Weighted average exercise price $ 3.32 $ 8.50 $ 3.60 Weighted average risk-free interest rate 1.80 3.48 % 0.80 1.48 % 0.52 1.52 % Weighted average dividend yield 0 % 0 % 0 % Weighted average volatility 83.51 % 90.68 % 94.77 % Weighted average estimated life 10 years 10 years 10 years Weighted average share price $ 3.32 $ 8.50 $ 3.60 Share price on the various grant dates: $ 2.72 6.71 $ 6.20 9.50 $ 2.20 3.90 Weighted average fair value $ 2.70 $ 7.50 $ 3.00 The underlying expected volatility was determined by reference to the Company’s historical share price movements, its dividend policy and dividend yield and past experience relating to the expected life of granted stock options. The weighted average remaining contractual life and weighted average exercise price of options outstanding and of options exercisable as at December 31, 2022 are as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE AND WEIGHTED AVERAGE EXERCISE PRICE OF OPTIONS Options Outstanding Options Exercisable Historical Weighted Historical Weighted Average Weighted Average Remaining Average Exercise Number Exercise Contractual Number Exercise Range Outstanding Price Life (years) Exercisable Price $ 0.85 2.00 7,000 $ 2.00 5.59 7,000 $ 2.00 $ 2.01 2.84 2,197,179 $ 2.48 7.04 1,314,750 $ 2.36 $ 2.85 9.15 4,537,646 $ 4.61 7.69 2,510,644 $ 4.38 6,741,825 $ 4.10 7.48 3,832,394 $ 3.68 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | 14. LOSS PER SHARE SCHEDULE OF INCOME (LOSS) PER SHARE 2022 2021 2020 Numerator Net loss $ (21,036,690 ) $ (15,669,093 ) $ (18,169,070 ) Denominator Weighted average number of common shares outstanding 36,739,857 34,545,752 29,169,653 Weighted average number of common shares outstanding - diluted 36,739,857 34,545,752 29,169,653 Basic and diluted loss per share $ (0.57 ) $ (0.45 ) $ (0.62 ) The effect of common share purchase options, warrants, compensation warrants and shares to be issued on the net loss in 2022, 2021 and 2020 is not reflected as they are anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES The Company has operating leases on four facilities; head office located in Toronto, Canada, design and testing operations located in Allentown, Pennsylvania (formerly in San Jose, California) and operating facilities located in Singapore and China. The Company’s design and testing operations terminated a lease on January 31, 2021. A new lease was initiated on April 1, 2021 and expires on September 30, 2025. The lease on the Company’s operating facilities in Singapore was initiated on November 1, 2019 with an original expiry of April 30, 2022. The lease on the Singapore facility was renewed on May 1, 2022 and expires on May 31, 2023. The lease on the Company’s operating facilities in China was initiated in November 19, 2021 and expires on November 18, 2023. As at December 31, 2022, the Company’s head office was on a month to month lease term. Remaining annual lease payments to the lease expiration dates are as follows: SCHEDULE OF REMAINING ANNUAL RENTAL PAYMENTS LEASE 2023 $ 227,844 2024 and beyond 146,881 $ 374,725 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS Compensation to key management personnel were as follows: SCHEDULE OF COMPENSATION TO KEY MANAGEMENT PERSONNEL 2022 2021 2020 Salaries $ 2,010,479 $ 1,782,297 $ 1,501,058 Share-based payments (1) 1,711,716 2,077,333 2,144,930 Total $ 3,722,195 $ 3,859,630 $ 3,645,988 (1) Share-based payments are the fair value of options granted to key management personnel and expensed during the various years as calculated using the Black-Scholes model. All transactions with related parties have occurred in the normal course of operations and are measured at the exchange amounts, which are the amounts of consideration established and agreed to by the related parties. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION | 17. SEGMENT INFORMATION The Company and its subsidiaries operate in a single segment; the design, manufacture and sale of semi-conductor products and services for commercial applications. The Company’s operating and reporting segment reflects the management reporting structure of the organization and the manner in which the chief operating decision maker regularly assesses information for decision making purposes, including the allocation of resources. A summary of the Company’s operations is below: OPEL, ODIS, POET Shenzhen and PTS OPEL, ODIS, POET Shenzhen and PTS are the designers and developers of the POET Optical Interposer platform and optical engines based on the POET Optical Interposer platform. BB Photonics BB Photonics developed photonic integrated components for the datacom and telecom markets utilizing embedded dielectric technology that enabled the partial integration of active and passive devices into photonic integrated circuits. BB Photonics’ operation is currently dormant. On a consolidated basis, the Company operates geographically in Singapore, China (collectively “Asia”), the United States and Canada. Geographical information is as follows: SCHEDULE OF GEOGRAPHICAL INFORMATION As of December 31, Asia US Canada Consolidated 2022 As of December 31, Asia US Canada Consolidated Current assets $ 664,658 $ 133,501 $ 8,770,035 $ 9,568,194 Property and equipment 4,496,734 573,773 - 5,070,507 Patents and licenses - 510,705 - 510,705 Right of use asset 55,775 185,272 - 241,047 Total Assets $ 5,217,167 $ 1,403,251 $ 8,770,035 $ 15,390,453 Year Ended December 31, Asia US Canada Consolidated Revenue $ 552,748 $ - $ - $ 552,748 Selling, marketing and administration (2,121,596 ) (5,885,970 ) (1,508,705 ) (9,516,271 ) Research and development (6,344,016 ) (4,205,177 ) (197,550 ) (10,746,743 ) Gain on contribution of intellectual property to joint venture 1,746,987 - - 1,746,987 Interest expense (17,701 ) (32,037 ) - (49,738 ) Other income, including interest - - 188,320 188,320 Share of loss in joint venture (3,211,993 ) - - (3,211,993 ) Net loss $ (9,395,571 ) $ (10,123,184 ) $ (1,517,935 ) $ (21,036,690 ) As of December 31, Asia US Canada Consolidated 2021 As of December 31, Asia US Canada Consolidated Current assets $ 537,647 $ 291,772 $ 20,959,707 $ 21,789,126 Investment in joint venture 1,445,251 - - 1,445,251 Property and equipment 2,787,273 276,961 - 3,064,234 Patents and licenses - 528,476 - 528,476 Right of use asset 150,134 176,756 - 326,890 Total Assets $ 4,920,305 $ 1,273,965 $ 20,959,707 $ 27,153,977 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 17. SEGMENT INFORMATION (Continued) The Year Ended December 31, Asia US Canada Consolidated Revenue $ 209,100 $ - $ - $ 209,100 Selling, marketing and administration (1,563,829 ) (5,460,917 ) (2,030,784 ) (9,055,530 ) Research and development (4,849,553 ) (2,679,452 ) (636,123 ) (8,165,128 ) Gain on contribution of intellectual property to joint venture 2,587,500 - - 2,587,500 Interest expense (35,043 ) (32,632 ) (296,944 ) (364,619 ) Forgiveness of Covid-19 government support loans - 186,747 - 186,747 Other income, including interest - - 75,084 75,084 Share of loss in joint venture (1,142,249 ) - - (1,142,249 ) Net loss $ (4,794,074 ) $ (7,986,254 ) $ (2,888,767 ) $ (15,669,095 ) As of December 31, Asia US Canada Consolidated 2020 As of December 31, Asia US Canada Consolidated Current assets $ 304,450 $ 69,874 $ 7,117,287 $ 7,491,611 Property and equipment 2,982,496 203,258 - 3,185,754 Patents and licenses - 438,677 - 438,677 Right of use asset 289,542 231,144 - 520,686 Total Assets $ 3,576,488 $ 942,953 $ 7,117,287 $ 11,636,728 The Year Ended December 31, Asia US Canada Consolidated Selling, marketing and administration $ (1,182,054 ) $ (5,495,161 ) $ (1,460,783 ) $ (8,137,998 ) Research and development (3,269,873 ) (1,447,729 ) (1,916,715 ) (6,634,317 ) Impairment of long lived assets - - - - Interest expense (20,181 ) (24,474 ) (893,248 ) (937,903 ) Credit loss on receivable from the sale of discontinued operation - - (2,500,000 ) (2,500,000 ) Other income, including interest - - 41,148 41,148 Net loss $ (4,472,108 ) $ (6,967,364 ) $ (6,729,598 ) $ (18,169,070 ) |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments And Risk Management | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company’s financial instruments consist of cash and cash equivalents, receivable from the sale of discontinued operation, short-term investments, convertible debentures, covid-19 government support loans and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest risk arising from these financial instruments. The Company estimates that carrying value of these instruments approximates fair value due to their short term nature. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Continued) The Company has classified financial assets and (liabilities) as follows at December 31: SCHEDULE OF CLASSIFIED FINANCIAL ASSETS AND LIABILITIES 2022 2021 2020 Financial assets, measured at amortized cost: Cash and cash equivalents $ 9,229,845 $ 14,941,775 $ 6,872,894 Short-term investments $ - $ 6,366,828 $ - Accounts receivable, measured at amortized cost: Accounts receivable $ 62,842 $ - $ - Other liabilities, measured at amortized cost: Accounts payable and accrued liabilities $ (3,362,430 ) $ (1,791,222 ) $ (1,730,361 ) Convertible debentures $ - $ - $ (3,341,246 ) Covid-19 government support loans $ (29,520 ) $ (31,660 ) $ (218,151 ) Contract liabilities $ (274,192 ) $ - $ - Exchange Rate Risk The functional currency of each of the entities included in the accompanying consolidated financial statements is the local currency where the entity is domiciled. Functional currencies include the Chinese Yuan, US, Singapore and Canadian dollar. Most transactions within the entities are conducted in functional currencies. As such, none of the entities included in the consolidated financial statements engage in hedging activities. The Company is exposed to a foreign currency risk when its subsidiaries hold current assets or current liabilities in currencies other than its functional currency. A 10 140,421 Liquidity Risk The Company currently does not maintain credit facilities. The Company’s existing cash and cash resources are not considered sufficient to fund operating and investing activities beyond one year from the issuance of these consolidated financial statements. The Company may, however, need to seek additional financing in the future. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
CAPITAL MANAGEMENT | 19. CAPITAL MANAGEMENT In the management of capital, the Company includes shareholders’ equity (excluding accumulated other comprehensive loss and deficit) and cash. The components of capital on December 31, 2022 were: SCHEDULE OF COMPONENTS OF CAPITAL Cash and cash equivalents $ 9,229,845 Shareholders’ equity $ 208,128,989 The Company’s objective in managing capital is to ensure that financial flexibility is present to increase shareholder value through growth and responding to changes in economic and/or market conditions; to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business and to safeguard the Company’s ability to obtain financing should the need arise. In maintaining its capital, the Company has a strict investment policy which includes investing its surplus capital only in highly liquid, highly rated financial instruments. The Company reviews its capital management approach on an ongoing basis. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) |
EXPENSES
EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
EXPENSES | 20. EXPENSES Research and development costs can be analysed as follows: SCHEDULE OF EXPENSES BY NATURE 2022 2021 2020 Wages and benefits $ 4,267,937 $ 3,270,528 $ 1,586,900 Subcontract fees 2,946,729 1,516,343 3,802,919 Stock-based compensation 2,054,187 1,769,951 567,859 Supplies 1,477,890 1,608,306 676,639 Research and development costs $ 10,746,743 $ 8,165,128 $ 6,634,317 Selling, marketing and administration costs can be analysed as follows: Stock-based compensation $ 2,382,417 $ 2,764,419 $ 3,045,086 Wages and benefits 2,648,862 2,643,451 2,233,449 Professional fees 1,173,743 1,155,316 800,551 General expenses 1,860,762 1,304,690 1,188,712 Depreciation and amortization 1,293,158 1,100,522 813,103 Rent and facility costs 157,329 87,130 57,097 Selling, marketing and administration costs $ 9,516,271 $ 9,055,528 $ 8,137,998 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
DISCONTINUED OPERATIONS | 21. DISCONTINUED OPERATIONS On November 8, 2019, the Company sold 100 26,000,000 23,500,000 23,500,000 2,500,000 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | 22. REVENUE Disaggregated Revenues The Company disaggregates revenue by timing of revenue recognition, that is, at a point in time and revenue over time. During the year ended December 31, 2022, the Company recognized $ 552,748 209,100 nil |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | 23. INCOME TAXES The following table reconciles the expected income tax recovery at the Canadian statutory income tax rate of 26.5 26.5 26.5 SCHEDULE OF INCOME TAX RECOVERY For the Year Ended December 31, 2022 2021 2020 Net loss before taxes $ (21,036,690 ) $ (15,669,093 ) $ (18,169,070 ) Expected current income tax recovery 5,574,723 4,152,310 4,814,804 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 23. INCOME TAXES (continued) Adjustments to income tax recovery: For the Year Ended December 31, 2022 2021 2020 Amounts not deductible for tax purposes $ (1,177,000 ) $ (1,201,600 ) $ (957,400 ) Other non-deductible items (66,000 ) (111,000 ) (137,000 ) Other deductible items 161,000 157,000 115,000 Non-taxable gain (loss) (388,000 ) 383,000 - Non-taxable loan forgiveness - 49,000 - Deferred R&D expenses (627,000 ) - - Foreign tax differential (828,000 ) (508,000 ) (221,000 ) Unrecognized tax recovered (losses) (2,649,723 ) (2,920,710 ) (3,614,404 ) Income tax recovery recognized $ - $ - $ - The following table reflects future income tax assets at December 31: SCHEDULE OF FUTURE INCOME TAX ASSETS 2022 2021 2020 Resource assets $ 1,024,271 $ 1,024,271 $ 1,024,271 Gross unamortized share issue costs 1,081,250 1,114,604 325,600 Capitalized S.174 expenses 2,368,000 - - Canadian non-capital losses 21,955,000 21,404,000 22,969,000 Canadian capital losses 5,156,000 5,565,125 4,432,532 US non-capital losses 93,000,000 86,073,000 78,829,000 Singapore non-capital losses 13,800,000 9,180,000 3,753,000 Unused income tax losses 138,384,521 124,361,000 111,333,403 Unrecognized deferred tax assets (138,385,521 ) (124,361,000 ) (111,333,403 ) Deferred income tax assets recognized $ - $ - $ - |
COVID-19 GOVERNMENT SUPPORT LOA
COVID-19 GOVERNMENT SUPPORT LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Covid-19 Government Support Loans | |
COVID-19 GOVERNMENT SUPPORT LOANS | 24. COVID-19 GOVERNMENT SUPPORT LOANS In March 2020, the United States Congress passed the Paycheck Protection Program (“PPP”), authorizing loans to small businesses for use in paying employees that they continue to employ throughout the COVID-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the PPP are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. On May 3, 2020, the Company received a loan in the amount of $ 186,747 On April 9, 2020, the Canadian government launched the Canada Emergency Business Account (“CEBA”) which is intended to support businesses during COVID-19 by providing interest free financing of up to $ 29,520 40,000 the Company received a loan in the amount of $ 29,520 5 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS On January 23, 2023, the Company amended the expiry date and price of its February 11, 2023 and CAD$ 11.50 4.25 Between January 23, 2023 and March 22, 2023, the Company received $ 5,475,102 7,474,543 1,758,716 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of presentation | Basis of presentation These consolidated financial statements include the accounts of POET Technologies Inc. and its subsidiaries; ODIS Inc. (“ODIS”), Opel Solar Inc. (“OPEL”), BB Photonics Inc. (“BB Photonics”), POET Technologies Pte Ltd. (“PTS”) and POET Optoelectronics Shenzhen Co., Ltd (“POET Shenzhen”). All intercompany balances and transactions have been eliminated on consolidation. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Business combinations | Business combinations Acquisitions of businesses are accounted for using the acquisition method. The acquisition cost is measured at the acquisition date at the fair value of the consideration transferred, including all contingent consideration. Subsequent changes in contingent consideration are accounted for through the consolidated statements of operations and deficit and consolidated statements of comprehensive loss in accordance with the applicable standards. Goodwill arising on acquisition is initially measured at cost, being the difference between the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree and the net recognized amount (generally fair value) of the identifiable assets and liabilities assumed at the acquisition date. If the net of the amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in the consolidated statements of operations and deficit as a bargain purchase gain. Acquisition-related costs, other than those that are associated with the issue of debt or equity securities that the Company incurs in connection with a business combination, are expensed as incurred. |
Foreign currency translation | Foreign currency translation These consolidated financial statements are presented in U.S. dollars (“USD”), which is the Company’s presentation currency. Items included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities not denominated in the functional currency of an entity are recognized in the statement of operations and deficit. Assets and liabilities of entities with functional currencies other than U.S. dollars are translated into the presentation currency at the year end rates of exchange, and the results of their operations are translated at average rates of exchange for the year. The resulting translation adjustments are included in accumulated other comprehensive loss in shareholders’ equity. Additionally, foreign exchange gains and losses related to certain intercompany loans that are permanent in nature are included in accumulated other comprehensive loss. Elements of equity are translated at historical rates. |
Financial instruments | Financial instruments Financial assets held with an objective to hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest are measured at amortised cost using the effective interest method. Debt investments held with an objective to hold both assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of fair value are measured at FVTOCI. All other financial assets are classified and measured at fair value through profit or loss (“FVTPL”). Financial liabilities are classified as either FVTPL or other financial liabilities, and the portion of the change in fair value that relates to the Company’s credit risk is presented in other comprehensive income (loss). Instruments classified as FVTPL are measured at fair value with unrealized gains and losses recognized in net income (loss). Other financial liabilities are subsequently measured at amortised cost using the effective interest method. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities, other than financial assets and financial liabilities classified as FVTPL, are added to or deducted from the fair value on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities classified as FVTPL are recognized immediately in consolidated net income (loss). |
Derecognition | Derecognition Financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any interest in transferred financial assets that is created or retained by the Company is recognized as a separate asset or liability. Financial liabilities A financial liability is derecognized from the balance sheet when it is extinguished, that is, when the obligation specified in the contract is either discharged, cancelled or expires. Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms, or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. A gain or loss from extinguishment of the original financial liability is recognized in profit or loss. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. The following table outlines the classification of financial instruments under IFRS 9: SCHEDULE OF CLASSIFICATION OF FINANCIAL INSTRUMENTS Financial Assets Cash and cash equivalents Amortized cost Short-term investments Amortized cost Accounts receivable Amortized cost Financial Liabilities Accounts payable and accrued liabilities Amortized cost Convertible debentures Amortized cost Contract liabilities Amortized cost Covid-19 government support loans Amortized cost Convertible debentures are accounted for as a compound financial instrument with a debt component and a separate equity component. The debt component of these compound financial instruments is measured at fair value on initial recognition by discounting the stream of future interest and principal payments at the rate of interest prevailing at the date of issue for instruments of similar term and risk. The debt component is subsequently deducted from the total carrying value of the compound instrument to derive the equity component. The debt component is subsequently measured at amortized cost using the effective interest rate method. Interest expense based on the coupon rate of the debenture and the accretion of the liability component to the amount that will be payable on redemption are recognized through profit or loss as a finance cost. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash in current accounts of $ 1,981,765 4,216,911 722,894 7,248,080 10,724,864 6,150,000 0.20 0.25 Cash and cash equivalents include restricted funds of nil nil 184,569 nil 14,197 14,197 |
Short-term investments | Short-term investments The short-term investments of nil 6,366,828 nil 0.75 1.44 |
Property and equipment | Property and equipment Property and equipment are recorded at cost. Depreciation is calculated based on the estimated useful life of the asset using the following method and useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIFE Machinery and equipment Straight Line, 5 Leasehold improvements Straight Line, 5 Office equipment Straight Line, 3 5 |
Patents and licenses | Patents and licenses Patents and licenses are recorded at cost and amortized on a straight line basis over 12 |
Impairment of long-lived assets | Impairment of long-lived assets The Company’s tangible and intangible assets are reviewed for indications of impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. An assessment is made at each reporting date whether there is any indication that an asset may be impaired. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognized in profit and loss for the year. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit (“CGU”) to which the asset belongs. An impairment loss is reversed if there is an indication that there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. No POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Income taxes | Income taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income taxes are provided on differences between the financial reporting and income tax bases of assets and liabilities and on income tax losses available to be carried forward to future years for tax purposes. Deferred income taxes are measured using the substantively enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Deferred tax assets are only recognized if the amount is expected to be realized in the future. |
Revenue recognition | Revenue recognition Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue when it transfers control over a product or service to a customer. Sale of goods Revenue from the sale of goods is recognized, net of discounts and customer rebates, at the point in time the transfer of control of the related products has taken place as specified in the sales contract and collectability is reasonably assured. Service revenue The Company provides contract services, primarily in the form of non-recurring revenue (“NRE”) where control is passed to the customer over time. The contracts generally provide agreed upon milestones for customer payment which include but are not limited to the delivery of sample products, design reports and test reports. The customer makes payment when it has approved the delivery of the milestone. The Company must determine if the contract is made up of a series of independent performance obligations or a single performance obligation. Where NRE contracts contain multiple performance obligations for which a standalone transaction price can be assessed, revenue is recognized as each performance obligation is satisfied. Where NRE contracts contain a single performance obligation to be settled over time, revenue is recognized progressively based on the output method. |
Other income | Other income Interest income Interest income on cash is recognized as earned using the effective interest method. |
Wage subsidies | Wage subsidies Wages subsidies received from the Singaporean government are netted against R&D related wages and benefits on the consolidated statements of operations and deficit. |
Government Grants | Government Grants Loans received exclusively from governmental agencies to support the Company throughout the COVID-19 pandemic qualify to be forgiven if certain conditions are met. Forgiveness of COVID-19 related loans will be recognized as other income on the consolidated statements of operations and deficit. POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Intangible assets | Intangible assets Research and development costs Research costs are expensed in the year incurred. Development costs are also expensed in the year incurred unless the Company believes a development project meets IFRS criteria as set out in IAS 38, Intangible Assets In-Process Research and Development Under IFRS, in-process research and development (“IPR&D”) acquired in a business combination that meets the definition of an intangible asset is capitalized with amortization commencing when the asset is ready for use (i.e., when development is complete). The Company does not capitalize its IPR&D. |
Stock-based compensation | Stock-based compensation Stock options and warrants awarded to non employees are measured using the fair value of the goods or services received unless that fair value cannot be estimated reliably, in which case measurement is based on the fair value of the stock options. Stock options and warrants awarded to employees are accounted for using the fair value method. The fair value of such stock options and warrants granted is recognized as an expense on a proportionate basis consistent with the vesting features of each tranche of the grant. The fair value is calculated using the Black-Scholes option pricing model with assumptions applicable at the date of grant. |
Loss per share | Loss per share Basic loss per share, net of taxes is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period after giving effect to potentially dilutive financial instruments. The dilutive effect of stock options and warrants is determined using the treasury stock method. |
Joint Venture | Joint Venture A joint arrangement is an arrangement among two or more parties where the parties are bound by a contractual arrangement and the contractual arrangement gives the parties joint control of the arrangement. A joint venture is a form of joint arrangement where an entity is independently formed and the parties jointly have rights to the net assets of the arrangement and therefore account for their interests under the equity method. |
Share Consolidation | Share Consolidation On February 24, 2022, the Company filed Articles of Amendment to consolidate its common shares on a ten-for-one basis. For further clarity, for every ten (10) pre-consolidated common shares, shareholders received one (1) post-consolidated common share. On February 28, 2022 the Company’s common shares began trading on the TSX Venture Exchange on a post consolidation basis. The Company’s name and trading symbol remained unchanged. All references to share and per share amounts in these consolidated financial statements and accompanying notes to the consolidated financial statements have been retroactively restated to reflect the ten-for-one share consolidation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF CLASSIFICATION OF FINANCIAL INSTRUMENTS | The following table outlines the classification of financial instruments under IFRS 9: SCHEDULE OF CLASSIFICATION OF FINANCIAL INSTRUMENTS Financial Assets Cash and cash equivalents Amortized cost Short-term investments Amortized cost Accounts receivable Amortized cost Financial Liabilities Accounts payable and accrued liabilities Amortized cost Convertible debentures Amortized cost Contract liabilities Amortized cost Covid-19 government support loans Amortized cost |
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIFE | Property and equipment are recorded at cost. Depreciation is calculated based on the estimated useful life of the asset using the following method and useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIFE Machinery and equipment Straight Line, 5 Leasehold improvements Straight Line, 5 Office equipment Straight Line, 3 5 |
ACCOUNTS RECEIVABLE AND CONTR_2
ACCOUNTS RECEIVABLE AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable And Contract Liabilities | |
Schedule of Revenue Contract Balances | Revenue Contract Balances Schedule of Revenue Contract Balances Contract Receivables Liabilities Opening balance, January 1, 2022 $ - $ - Customer deposits - (779,870 ) Changes due to payment, fulfillment of performance obligations or revenues recognized 62,842 489,906 Effect of changes in foreign exchange rates - 15,772 Balance, December 31, 2022 $ 62,842 $ (274,192 ) |
PREPAIDS AND OTHER CURRENT AS_2
PREPAIDS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF PRREPAIDS AND OTHER CURRENT ASSETS | The following table reflects the details of prepaids and other current assets at December 31: SCHEDULE OF PRREPAIDS AND OTHER CURRENT ASSETS 2022 2021 2020 Sales tax recoverable and other current assets $ 128,321 $ 141,568 $ 122,353 Deposits on equipment - 288,287 - Prepaid expenses 147,186 50,668 496,364 Prepaids and other current assets $ 275,507 $ 480,523 $ 618,717 |
JOINT VENTURE (Tables)
JOINT VENTURE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Joint Venture | |
SCHEDULE OF INVESTMENT IN JOINT VENTURE | The Company’s investment in joint venture during the year can be summarized as follows: SCHEDULE OF INVESTMENT IN JOINT VENTURE Balance, January 1, 2021 $ - Contribution of intellectual property 22,500,000 Unrecognized gain on contribution of intellectual property (19,912,500 ) Share of loss in joint venture for the year ended December 31, 2021 (1,142,249 ) Investment balance, December 31, 2021 1,445,251 Recognized gain on contribution of intellectual property 1,746,987 Share of loss in joint venture for the year ended December 31, 2022 (3,211,993 ) Effect of changes in foreign exchange rates 19,755 Investment balance, December 31, 2022 $ - |
SCHEDULE OF FINANCIAL INFORMATION OF JOINT VENTURE | Summarized financial information of the joint venture is as follows: SCHEDULE OF FINANCIAL INFORMATION OF JOINT VENTURE December 31, 2022 2021 2020 Current assets $ 1,951,654 $ 2,287,252 $ - Intangible assets 18,708,065 22,500,000 - Liabilities (180,897 ) (44,683 ) - Owners Equity (20,478,822 ) (24,742,569 ) - Net loss $ 4,319,857 $ 1,212,417 $ - |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF PROPERTY AND EQUIPMENT | SCHEDULE OF PROPERTY AND EQUIPMENT Equipment not ready for use Leasehold improvements Machinery and equipment Office equipment Total Cost Balance, January 1, 2020 $ 764,342 $ - $ 2,873,255 $ 85,233 $ 3,722,830 Additions 888,726 68,961 525,685 38,416 1,521,788 Reclassification (519,366 ) - 516,111 3,255 - Disposals (1) (897,727 ) - - - (897,727 ) Effect of changes in foreign exchange rates (8,828 ) 2,967 79,606 1,281 75,026 Balance,December 31, 2020 227,147 71,928 3,994,657 128,185 4,421,917 Additions, net of returns (2) (128,575 ) - 842,877 57,221 771,523 Reclassification (96,334 ) 47,393 48,941 - - Effect of changes in foreign exchange rates (2,238 ) (2,206 ) (56,455 ) (2,137 ) (63,036 ) Balance, December 31, 2021 - 117,115 4,830,020 183,269 5,130,404 Property and equipment at cost, beginning - 117,115 4,830,020 183,269 5,130,404 Additions 1,902,713 - 1,087,414 21,435 3,011,562 Additions, net of returns 1,902,713 - 1,087,414 21,435 3,011,562 Reclassification (141,702 ) - 162,917 (21,215 ) - Effect of changes in foreign exchange rates 54,898 6,544 11,270 (5,586 ) 67,126 Balance, December 31, 2022 1,815,909 123,659 6,091,621 177,903 8,209,092 Property and equipment at cost, ending 1,815,909 123,659 6,091,621 177,903 8,209,092 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 6. PROPERTY AND EQUIPMENT (Continued) Accumulated Depreciation Balance, January 1, 2020 - - 511,806 67,964 579,770 Depreciation for the year - 10,332 609,803 11,128 631,263 Effect of changes in foreign exchange rates - 445 24,405 280 25,130 Balance, December 31, 2020 - 10,777 1,146,014 79,372 1,236,163 Depreciation for the year - 18,891 794,834 26,641 840,366 Effect of changes in foreign exchange rates - (142 ) (10,122 ) (95 ) (10,359 ) Balance, December 31, 2021 - 29,526 1,930,726 105,918 2,066,170 Property and equipment, accumulated depreciation, beginning - 29,526 1,930,726 105,918 2,066,170 Depreciation for the year - 24,079 1,000,085 30,100 1,054,264 Effect of changes in foreign exchange rates - 2,529 27,727 (12,105 ) 18,151 Balance, December 31, 2022 - 56,134 2,958,538 123,913 3,138,585 Property and equipment, accumulated depreciation, ending - 56,134 2,958,538 123,913 3,138,585 Carrying Amounts At December 31, 2020 $ 227,147 $ 61,151 $ 2,848,643 $ 48,813 $ 3,185,754 At December 31, 2021 $ - $ 87,589 $ 2,899,294 $ 77,351 $ 3,064,234 At December 31, 2022 $ 1,815,909 $ 67,525 $ 3,133,083 $ 53,990 $ 5,070,507 Property and equipment, carrying amounts $ 1,815,909 $ 67,525 $ 3,133,083 $ 53,990 $ 5,070,507 (1) During 2020, the Company settled certain R&D expenses by transferring $ 897,727 (2) During 2021, the Company returned $ 196,490 |
PATENTS AND LICENSES (Tables)
PATENTS AND LICENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF PATENTS AND LICENSES | SCHEDULE OF PATENTS AND LICENSES Cost Balance, January 1, 2020 $ 785,027 Additions 52,075 Disposals - Balance, December 31, 2020 837,102 Additions 159,359 Balance, December 31, 2021 996,461 Patents and licenses, cost, beginning 996,461 Additions 62,475 Balance, December 31, 2022 1,058,936 Patents and licenses, cost, ending 1,058,936 Accumulated Amortization Balance, January 1, 2020 332,643 Amortization 65,782 Balance, December 31, 2020 398,425 Amortization 69,560 Balance, December 31, 2021 467,985 Patents and licenses, accumulated amortization, beginning 467,985 Amortization 80,246 Balance, December 31, 2022 548,231 Patents and licenses, accumulated amortization, ending 548,231 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 7. PATENTS AND LICENSES (Continued) Carrying Amounts At December 31, 2020 $ 438,677 At December 31, 2021 $ 528,476 At December 31, 2022 $ 510,705 Patents and licenses, carrying amounts $ 510,705 |
RIGHT OF USE ASSET AND LEASE _2
RIGHT OF USE ASSET AND LEASE LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF RIGHT OF USE ASSET AND LEASE LIABILITY | SCHEDULE OF RIGHT OF USE ASSET AND LEASE LIABILITY Right of use asset Building Cost Balance, January 1, 2020 $ 238,200 Additions 465,068 Lease modification (47,939 ) Effect of changes in foreign exchange rates (2,097 ) Balance, December 31, 2020 653,232 Effect of changes in foreign exchange rates (4,122 ) Balance, December 31, 2021 649,110 Right of use asset, cost, beginning 649,110 Lease modification 81,542 Balance, December 31, 2022 730,652 Right of use asset, cost, ending 730,652 Accumulated Amortization Balance, January 1, 2020 15,683 Amortization 116,057 Effect of changes in foreign exchange rates 806 Balance, December 31, 2020 132,546 Amortization 190,596 Effect of changes in foreign exchange rates (922 ) Balance, December 31, 2021 322,220 Right of use asset, accumulated amortization, beginning 322,220 Amortization 158,648 Effect of changes in foreign exchange rates 8,737 Balance, December 31, 2022 489,605 Right of use asset, accumulated amortization, ending 489,605 Carrying Amounts At December 31, 2020 $ 520,686 At December 31, 2021 $ 326,890 At December 31, 2022 $ 241,047 Right of use asset, carrying amounts $ 241,047 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 8. RIGHT OF USE ASSET AND LEASE LIABILITY (Continued) Lease liability Balance, January 1, 2020 $ 223,758 Interest expense 44,655 Lease modification (48,725 ) Additions 452,385 Lease payments (144,142 ) Effect of changes in foreign exchange rates 4,066 Balance, December 31, 2020 531,997 Interest expense 67,675 Lease payments (237,634 ) Effect of changes in foreign exchange rates (2,690 ) Balance, December 31, 2021 359,348 Lease liability, beginning 359,348 Interest expense 49,738 Lease modification 81,542 Lease payments (204,518 ) Effect of changes in foreign exchange rates (6,847 ) Balance, December 31, 2022 $ 279,263 Lease liability, ending $ 279,263 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | Accounts payable and accrued liabilities at December 31 was as follows: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2022 2021 2020 Trade payables $ 2,723,531 $ 987,498 $ 1,603,284 Payroll related liabilities 452,751 521,692 60,455 Accrued liabilities 186,148 282,032 66,622 Total accounts payable and accrued liabilities $ 3,362,430 $ 1,791,222 $ 1,730,361 |
CONVERTIBLE DEBENTURES, LOAN _2
CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Debentures Loan Payable And Promissory Note | |
SCHEDULE OF CONVERTIBLE DEBENTURES | The following table reflects the details of convertible debentures at December 31, 2020: SCHEDULE OF CONVERTIBLE DEBENTURES Convertible Debentures Loan Equity Component Accretion Debt Component Issued April 3, 2020 (net of issue costs) $ 1,293,519 $ (242,004 ) $ 338,988 $ 1,390,503 Issued May 3, 2020 (net of issue costs) 806,893 (151,842 ) 218,159 873,210 Issued June 3, 2020 (net of issue costs) 496,995 (93,278 ) 117,481 521,198 Issued August 2, 2020 (net of issue costs) 290,365 (54,978 ) 62,683 298,070 Issued September 19, 2020 (net of issue costs) 122,965 (23,019 ) 22,905 122,851 Effect of foreign exchange rate changes - - - 135,414 Balance December 31, 2020 $ 3,010,737 $ (565,121 ) $ 760,216 $ 3,341,246 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital | |
SCHEDULE OF COMMON SHARES ISSUED | SCHEDULE OF COMMON SHARES ISSUED Number of Shares Amount Balance, January 1, 2020 28,836,355 $ 112,144,172 Funds from the exercise of stock options 330,284 794,808 Fair value of stock options exercised - 768,356 Funds from the exercise of warrants 74,400 293,642 Fair value of exercised warrants (Notes 10 and 11) - 127,964 Issued on the conversion of convertible debentures (Note 10) 123,500 369,545 Fair value of warrants issued on conversion of convertible debentures - (146,858 ) Exercise of warrants issued in conjunction with debt financing 94,245 221,620 Shares issued to settle accounts payable 3,027 13,011 Balance, December 31, 2020 29,461,811 114,586,260 Funds from the exercise of stock options 1,001,519 3,124,392 Fair value of stock options exercised - 2,699,042 Issued on the conversion of convertible debentures (Note 10) 1,119,750 3,571,342 Fair value of warrants issued upon conversion of convertible debentures - (1,229,305 ) Funds from the exercise of warrants 3,144,750 12,994,358 Fair value of warrants exercised - 5,351,586 Funds from Common shares issued on private placement 1,764,720 11,815,595 Fair value of warrants issued on private placement - (3,766,007 ) Share issue costs - (1,143,034 ) Fair value of broker warrants issued as share issue costs - (288,197 ) Shares issued to settle accounts payable 1,678 13,814 Balance, December 31, 2021 36,494,228 147,729,846 Funds from Common shares issued on private placement 1,126,635 3,184,332 Fair value of warrants issued on private placement - (656,734 ) Share issue costs - (247,892 ) Shares issued to settle accounts payable 5,422 40,029 Funds from the exercise of stock options 143,437 418,845 Fair value of stock options exercised - 374,129 Funds from the exercise of warrants and compensation warrants 72,500 284,437 Fair value of warrants and compensation warrants exercised - 79,547 Adjustment for 10 for 1 share consolidation (272 ) - Balance, December 31, 2022 37,841,950 $ 151,206,539 |
WARRANTS AND COMPENSATION OPT_2
WARRANTS AND COMPENSATION OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF WARRANTS AND COMPENSATION OPTIONS | The following table reflects the continuity of warrants and compensation options: SCHEDULE OF WARRANTS AND COMPENSATION OPTIONS Historical Number of Average Exercise Warrants/ Historical Price Compensation options Fair value Balance, January 1, 2020 $ 4.30 4,953,979 $ 8,525,358 Fair value of warrants issued on conversion of convertible debentures (Notes 10 and 11) 3.80 123,500 146,858 Fair value of expired compensation options issued to brokers 4.30 (150,544 ) (479,204 ) Fair value related to the exercise of warrants issued as cost of debt financing (1) 2.70 (328,950 ) (221,620 ) Fair value of expired warrants issued on public offering 5.80 (1,254,535 ) (2,286,426 ) Historical fair value assigned to warrants exercised 3.90 (74,400 ) (127,964 ) Balance, December 31, 2020 3.90 3,269,050 5,557,002 Fair value of warrant issued on private placement (Note 26) 9.00 1,764,720 3,766,007 Fair value of broker warrants issued on private placement 6.70 105,883 288,197 Fair value of warrants issued on conversion of convertible debentures (Notes 10) 3.80 1,119,750 1,229,305 Historical fair value assigned to warrants exercised 3.90 (3,144,750 ) (5,351,586 ) Fair value of expired warrants 3.90 (93,300 ) (160,470 ) Balance, December 31, 2021 7.10 3,021,353 5,328,455 Fair value of warrant issued on private placement 1.17 563,318 656,734 Historical fair value assigned to warrants exercised 3.90 (72,500 ) (79,547 ) Balance, December 31, 2022 $ 6.15 3,512,171 $ 5,905,642 (1) These warrants had a cashless exercise feature. The warrant holder utilized the cashless exercise feature to exercise the warrants, which resulted in the Company issuing 94,245 |
STOCK OPTIONS AND CONTRIBUTED_2
STOCK OPTIONS AND CONTRIBUTED SURPLUS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Options And Contributed Surplus | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | Stock option transactions and the number of stock options outstanding were as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING Historical Weighted Average Number of Exercise Options Price Balance, January 1, 2020 5,326,034 $ 4.30 Expired/cancelled (828,794 ) 10.20 Exercised (330,284 ) 2.40 Granted 947,493 3.60 Balance, December 31, 2020 5,114,449 3.30 Expired/cancelled (166,438 ) 3.40 Exercised (1,001,519 ) 3.00 Granted 1,013,125 8.50 Balance, December 31, 2021 4,959,617 4.40 Expired/cancelled (117,438 ) 6.02 Exercised (143,437 ) 2.85 Granted 2,043,083 3.32 Balance, December 31, 2022 6,741,825 $ 4.10 |
SCHEDULE OF STOCK OPTIONS ASSUMPTIONS | The stock options granted were valued using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF STOCK OPTIONS ASSUMPTIONS 2022 2021 2020 Weighted average exercise price $ 3.32 $ 8.50 $ 3.60 Weighted average risk-free interest rate 1.80 3.48 % 0.80 1.48 % 0.52 1.52 % Weighted average dividend yield 0 % 0 % 0 % Weighted average volatility 83.51 % 90.68 % 94.77 % Weighted average estimated life 10 years 10 years 10 years Weighted average share price $ 3.32 $ 8.50 $ 3.60 Share price on the various grant dates: $ 2.72 6.71 $ 6.20 9.50 $ 2.20 3.90 Weighted average fair value $ 2.70 $ 7.50 $ 3.00 |
SCHEDULE OF WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE AND WEIGHTED AVERAGE EXERCISE PRICE OF OPTIONS | The weighted average remaining contractual life and weighted average exercise price of options outstanding and of options exercisable as at December 31, 2022 are as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE AND WEIGHTED AVERAGE EXERCISE PRICE OF OPTIONS Options Outstanding Options Exercisable Historical Weighted Historical Weighted Average Weighted Average Remaining Average Exercise Number Exercise Contractual Number Exercise Range Outstanding Price Life (years) Exercisable Price $ 0.85 2.00 7,000 $ 2.00 5.59 7,000 $ 2.00 $ 2.01 2.84 2,197,179 $ 2.48 7.04 1,314,750 $ 2.36 $ 2.85 9.15 4,537,646 $ 4.61 7.69 2,510,644 $ 4.38 6,741,825 $ 4.10 7.48 3,832,394 $ 3.68 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF INCOME (LOSS) PER SHARE | SCHEDULE OF INCOME (LOSS) PER SHARE 2022 2021 2020 Numerator Net loss $ (21,036,690 ) $ (15,669,093 ) $ (18,169,070 ) Denominator Weighted average number of common shares outstanding 36,739,857 34,545,752 29,169,653 Weighted average number of common shares outstanding - diluted 36,739,857 34,545,752 29,169,653 Basic and diluted loss per share $ (0.57 ) $ (0.45 ) $ (0.62 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF REMAINING ANNUAL RENTAL PAYMENTS LEASE | Remaining annual lease payments to the lease expiration dates are as follows: SCHEDULE OF REMAINING ANNUAL RENTAL PAYMENTS LEASE 2023 $ 227,844 2024 and beyond 146,881 $ 374,725 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF COMPENSATION TO KEY MANAGEMENT PERSONNEL | Compensation to key management personnel were as follows: SCHEDULE OF COMPENSATION TO KEY MANAGEMENT PERSONNEL 2022 2021 2020 Salaries $ 2,010,479 $ 1,782,297 $ 1,501,058 Share-based payments (1) 1,711,716 2,077,333 2,144,930 Total $ 3,722,195 $ 3,859,630 $ 3,645,988 (1) Share-based payments are the fair value of options granted to key management personnel and expensed during the various years as calculated using the Black-Scholes model. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF GEOGRAPHICAL INFORMATION | On a consolidated basis, the Company operates geographically in Singapore, China (collectively “Asia”), the United States and Canada. Geographical information is as follows: SCHEDULE OF GEOGRAPHICAL INFORMATION As of December 31, Asia US Canada Consolidated 2022 As of December 31, Asia US Canada Consolidated Current assets $ 664,658 $ 133,501 $ 8,770,035 $ 9,568,194 Property and equipment 4,496,734 573,773 - 5,070,507 Patents and licenses - 510,705 - 510,705 Right of use asset 55,775 185,272 - 241,047 Total Assets $ 5,217,167 $ 1,403,251 $ 8,770,035 $ 15,390,453 Year Ended December 31, Asia US Canada Consolidated Revenue $ 552,748 $ - $ - $ 552,748 Selling, marketing and administration (2,121,596 ) (5,885,970 ) (1,508,705 ) (9,516,271 ) Research and development (6,344,016 ) (4,205,177 ) (197,550 ) (10,746,743 ) Gain on contribution of intellectual property to joint venture 1,746,987 - - 1,746,987 Interest expense (17,701 ) (32,037 ) - (49,738 ) Other income, including interest - - 188,320 188,320 Share of loss in joint venture (3,211,993 ) - - (3,211,993 ) Net loss $ (9,395,571 ) $ (10,123,184 ) $ (1,517,935 ) $ (21,036,690 ) As of December 31, Asia US Canada Consolidated 2021 As of December 31, Asia US Canada Consolidated Current assets $ 537,647 $ 291,772 $ 20,959,707 $ 21,789,126 Investment in joint venture 1,445,251 - - 1,445,251 Property and equipment 2,787,273 276,961 - 3,064,234 Patents and licenses - 528,476 - 528,476 Right of use asset 150,134 176,756 - 326,890 Total Assets $ 4,920,305 $ 1,273,965 $ 20,959,707 $ 27,153,977 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 17. SEGMENT INFORMATION (Continued) The Year Ended December 31, Asia US Canada Consolidated Revenue $ 209,100 $ - $ - $ 209,100 Selling, marketing and administration (1,563,829 ) (5,460,917 ) (2,030,784 ) (9,055,530 ) Research and development (4,849,553 ) (2,679,452 ) (636,123 ) (8,165,128 ) Gain on contribution of intellectual property to joint venture 2,587,500 - - 2,587,500 Interest expense (35,043 ) (32,632 ) (296,944 ) (364,619 ) Forgiveness of Covid-19 government support loans - 186,747 - 186,747 Other income, including interest - - 75,084 75,084 Share of loss in joint venture (1,142,249 ) - - (1,142,249 ) Net loss $ (4,794,074 ) $ (7,986,254 ) $ (2,888,767 ) $ (15,669,095 ) As of December 31, Asia US Canada Consolidated 2020 As of December 31, Asia US Canada Consolidated Current assets $ 304,450 $ 69,874 $ 7,117,287 $ 7,491,611 Property and equipment 2,982,496 203,258 - 3,185,754 Patents and licenses - 438,677 - 438,677 Right of use asset 289,542 231,144 - 520,686 Total Assets $ 3,576,488 $ 942,953 $ 7,117,287 $ 11,636,728 The Year Ended December 31, Asia US Canada Consolidated Selling, marketing and administration $ (1,182,054 ) $ (5,495,161 ) $ (1,460,783 ) $ (8,137,998 ) Research and development (3,269,873 ) (1,447,729 ) (1,916,715 ) (6,634,317 ) Impairment of long lived assets - - - - Interest expense (20,181 ) (24,474 ) (893,248 ) (937,903 ) Credit loss on receivable from the sale of discontinued operation - - (2,500,000 ) (2,500,000 ) Other income, including interest - - 41,148 41,148 Net loss $ (4,472,108 ) $ (6,967,364 ) $ (6,729,598 ) $ (18,169,070 ) |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments And Risk Management | |
SCHEDULE OF CLASSIFIED FINANCIAL ASSETS AND LIABILITIES | The Company has classified financial assets and (liabilities) as follows at December 31: SCHEDULE OF CLASSIFIED FINANCIAL ASSETS AND LIABILITIES 2022 2021 2020 Financial assets, measured at amortized cost: Cash and cash equivalents $ 9,229,845 $ 14,941,775 $ 6,872,894 Short-term investments $ - $ 6,366,828 $ - Accounts receivable, measured at amortized cost: Accounts receivable $ 62,842 $ - $ - Other liabilities, measured at amortized cost: Accounts payable and accrued liabilities $ (3,362,430 ) $ (1,791,222 ) $ (1,730,361 ) Convertible debentures $ - $ - $ (3,341,246 ) Covid-19 government support loans $ (29,520 ) $ (31,660 ) $ (218,151 ) Contract liabilities $ (274,192 ) $ - $ - |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF COMPONENTS OF CAPITAL | In the management of capital, the Company includes shareholders’ equity (excluding accumulated other comprehensive loss and deficit) and cash. The components of capital on December 31, 2022 were: SCHEDULE OF COMPONENTS OF CAPITAL Cash and cash equivalents $ 9,229,845 Shareholders’ equity $ 208,128,989 |
EXPENSES (Tables)
EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF EXPENSES BY NATURE | Research and development costs can be analysed as follows: SCHEDULE OF EXPENSES BY NATURE 2022 2021 2020 Wages and benefits $ 4,267,937 $ 3,270,528 $ 1,586,900 Subcontract fees 2,946,729 1,516,343 3,802,919 Stock-based compensation 2,054,187 1,769,951 567,859 Supplies 1,477,890 1,608,306 676,639 Research and development costs $ 10,746,743 $ 8,165,128 $ 6,634,317 Selling, marketing and administration costs can be analysed as follows: Stock-based compensation $ 2,382,417 $ 2,764,419 $ 3,045,086 Wages and benefits 2,648,862 2,643,451 2,233,449 Professional fees 1,173,743 1,155,316 800,551 General expenses 1,860,762 1,304,690 1,188,712 Depreciation and amortization 1,293,158 1,100,522 813,103 Rent and facility costs 157,329 87,130 57,097 Selling, marketing and administration costs $ 9,516,271 $ 9,055,528 $ 8,137,998 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF INCOME TAX RECOVERY | SCHEDULE OF INCOME TAX RECOVERY For the Year Ended December 31, 2022 2021 2020 Net loss before taxes $ (21,036,690 ) $ (15,669,093 ) $ (18,169,070 ) Expected current income tax recovery 5,574,723 4,152,310 4,814,804 POET TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in US Dollars) 23. INCOME TAXES (continued) Adjustments to income tax recovery: For the Year Ended December 31, 2022 2021 2020 Amounts not deductible for tax purposes $ (1,177,000 ) $ (1,201,600 ) $ (957,400 ) Other non-deductible items (66,000 ) (111,000 ) (137,000 ) Other deductible items 161,000 157,000 115,000 Non-taxable gain (loss) (388,000 ) 383,000 - Non-taxable loan forgiveness - 49,000 - Deferred R&D expenses (627,000 ) - - Foreign tax differential (828,000 ) (508,000 ) (221,000 ) Unrecognized tax recovered (losses) (2,649,723 ) (2,920,710 ) (3,614,404 ) Income tax recovery recognized $ - $ - $ - |
SCHEDULE OF FUTURE INCOME TAX ASSETS | The following table reflects future income tax assets at December 31: SCHEDULE OF FUTURE INCOME TAX ASSETS 2022 2021 2020 Resource assets $ 1,024,271 $ 1,024,271 $ 1,024,271 Gross unamortized share issue costs 1,081,250 1,114,604 325,600 Capitalized S.174 expenses 2,368,000 - - Canadian non-capital losses 21,955,000 21,404,000 22,969,000 Canadian capital losses 5,156,000 5,565,125 4,432,532 US non-capital losses 93,000,000 86,073,000 78,829,000 Singapore non-capital losses 13,800,000 9,180,000 3,753,000 Unused income tax losses 138,384,521 124,361,000 111,333,403 Unrecognized deferred tax assets (138,385,521 ) (124,361,000 ) (111,333,403 ) Deferred income tax assets recognized $ - $ - $ - |
SCHEDULE OF CLASSIFICATION OF F
SCHEDULE OF CLASSIFICATION OF FINANCIAL INSTRUMENTS (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Assets, Cash and cash equivalents | Amortized cost |
Financial Assets, Short-term investments | Amortized cost |
Financial Assets, Accounts receivable | Amortized cost |
Financial Liabilities, Accounts payable and accrued liabilities | Amortized cost |
Financial Liabilities, Convertible debentures | Amortized cost |
Financial Liabilities, Contract liabilities | Amortized cost |
Financial Liabilities, Covid-19 government support loans | Amortized cost |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narrative) | 12 Months Ended | ||
Dec. 02, 2022 USD ($) | Dec. 02, 2022 $ / shares | Dec. 31, 2022 USD ($) | |
Accumulated losses | $ (194,023,660) | ||
Working capital | 5,751,101 | ||
Cash flows from operations | $ (12,325,910) | ||
[custom:GrossFundingFromPrivatePlacement] | $ 3,184,332 | ||
[custom:ProceedsFromExerciseOfWarrantsPricePerShare] | $ / shares | $ 4.95 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIFE (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Machinery [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life of asset | 5 years |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life of asset | 5 years |
Office equipment [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life of asset | 3 years |
Office equipment [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life of asset | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Cash | $ 1,981,765 | $ 4,216,911 | $ 722,894 |
Restricted cash and cash equivalents | 184,569 | ||
Bank guarantee reduced monthly | 14,197 | 14,197 | |
Short-term investments | 6,366,828 | ||
Impairment loss | |||
Patents and Licenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Useful life, intangible assets (Year) | 12 years | ||
U.S. term deposits [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current investments | $ 7,248,080 | $ 10,724,864 | $ 6,150,000 |
US and Canadian Term Deposits [member] | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Investment interest rate range | 0.20% | ||
US and Canadian Term Deposits [member] | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Investment interest rate range | 0.25% | ||
Guaranteed Investment Certificates [member] | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Investment interest rate range | 0.75% | ||
Guaranteed Investment Certificates [member] | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Investment interest rate range | 1.44% |
Schedule of Revenue Contract Ba
Schedule of Revenue Contract Balances (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounts Receivable And Contract Liabilities | |
Balance, receivables | |
Balance, liabilities | |
Customer deposits, receivables | |
Customer deposits, liabilities | (779,870) |
Changes due to payment, fulfillment of performance obligations or revenues recognized, receivables | 62,842 |
Changes due to payment, fulfillment of performance obligations or revenues recognized, liabilities | 489,906 |
Effect of changes in foreign exchange rates, receivables | |
Effect of changes in foreign exchange rates, liabilities | 15,772 |
Balance, receivables | 62,842 |
Balance, liabilities | $ (274,192) |
SCHEDULE OF PRREPAIDS AND OTHER
SCHEDULE OF PRREPAIDS AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Sales tax recoverable and other current assets | $ 128,321 | $ 141,568 | $ 122,353 |
Deposits on equipment | 288,287 | ||
Prepaid expenses | 147,186 | 50,668 | 496,364 |
Prepaids and other current assets | $ 275,507 | $ 480,523 | $ 618,717 |
SCHEDULE OF INVESTMENT IN JOINT
SCHEDULE OF INVESTMENT IN JOINT VENTURE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Joint Venture | |||
Investment balance | $ 1,445,251 | ||
Contribution of intellectual property | 22,500,000 | ||
Unrecognized gain on contribution of intellectual property | (19,912,500) | ||
Share of loss in joint ventures | (3,211,993) | (1,142,249) | |
Recognized gain on contribution of intellectual property | 1,746,987 | ||
Effect of changes in foreign exchange rates | 19,755 | ||
Investment balance | $ 1,445,251 |
SCHEDULE OF FINANCIAL INFORMATI
SCHEDULE OF FINANCIAL INFORMATION OF JOINT VENTURE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Current assets | $ 9,568,194 | $ 21,789,126 | $ 7,491,611 |
Liabilities | (3,945,405) | (2,182,230) | (5,821,755) |
Joint ventures [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 1,951,654 | 2,287,252 | |
Intangible assets | 18,708,065 | 22,500,000 | |
Liabilities | (180,897) | (44,683) | |
Owners Equity | (20,478,822) | (24,742,569) | |
Net loss | $ 4,319,857 | $ 1,212,417 |
JOINT VENTURE (Details Narrativ
JOINT VENTURE (Details Narrative) - USD ($) | 12 Months Ended | |||
Oct. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Amount of investment in joint venture | $ 1,445,251 | |||
Unrecognized gain loss on joint venture | 19,912,500 | |||
Joint ventures [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net operating loss | 4,319,857 | 1,212,417 | ||
Net operating loss recognized | (3,211,993) | |||
Joint ventures [member] | Xiamen Sanan Integrated Circuit Co. Ltd. [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Name of joint venture | Super Photonics Xiamen Co., Ltd (“SPX”) | |||
Description of nature of relationship with joint operation | Xiamen Sanan Integrated Circuit Co. Ltd. (“Sanan IC”) whose purpose is to design, develop, manufacture and sell 100G, 200G and 400G optical engines based on POET’s proprietary Optical Interposer platform technology. | |||
Amount of investment in joint venture | $ 22,500,000 | |||
Gain on joint venture | 1,746,987 | 2,587,500 | ||
Unrecognized gain loss on joint venture | $ 18,159,632 | $ 19,912,500 | ||
Super Photonics Xiamen Co., Ltd [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Proportion of ownership interest in joint operation | 80.70% | 88.50% | ||
Percentage of weighted average net operating loss | 83.70% | 95.30% | 0% | |
Net operating loss | $ (3,614,211) | $ (634,666) | ||
Super Photonics Xiamen Co., Ltd [Member] | Xiamen Sanan Integrated Circuit Co. Ltd. [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Proportion of ownership interest in joint operation | 19.30% | 11.50% |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
IfrsStatementLineItems [Line Items] | |||||
Property and equipment at cost, beginning | $ 5,130,404 | $ 4,421,917 | $ 3,722,830 | ||
Additions, net of returns | 3,011,562 | 771,523 | [1] | 1,521,788 | |
Reclassification | |||||
Disposals | [2] | (897,727) | |||
Effect of changes in foreign exchange rates | 67,126 | (63,036) | 75,026 | ||
Property and equipment at cost, ending | 8,209,092 | 5,130,404 | 4,421,917 | ||
Property and equipment, accumulated depreciation, beginning | 2,066,170 | 1,236,163 | 579,770 | ||
Depreciation for the year | 1,054,264 | 840,366 | 631,263 | ||
Effect of changes in foreign exchange rates | 18,151 | (10,359) | 25,130 | ||
Property and equipment, accumulated depreciation, ending | 3,138,585 | 2,066,170 | 1,236,163 | ||
Property and equipment, carrying amounts | 5,070,507 | 3,064,234 | 3,185,754 | ||
Equipment not ready for use [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Property and equipment at cost, beginning | 227,147 | 764,342 | |||
Additions, net of returns | 1,902,713 | (128,575) | [1] | 888,726 | |
Reclassification | (141,702) | (96,334) | (519,366) | ||
Disposals | [2] | (897,727) | |||
Effect of changes in foreign exchange rates | 54,898 | (2,238) | (8,828) | ||
Property and equipment at cost, ending | 1,815,909 | 227,147 | |||
Property and equipment, accumulated depreciation, beginning | |||||
Depreciation for the year | |||||
Effect of changes in foreign exchange rates | |||||
Property and equipment, accumulated depreciation, ending | |||||
Property and equipment, carrying amounts | 1,815,909 | 227,147 | |||
Leasehold improvements [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Property and equipment at cost, beginning | 117,115 | 71,928 | |||
Additions, net of returns | [1] | 68,961 | |||
Reclassification | 47,393 | ||||
Disposals | [2] | ||||
Effect of changes in foreign exchange rates | 6,544 | (2,206) | 2,967 | ||
Property and equipment at cost, ending | 123,659 | 117,115 | 71,928 | ||
Property and equipment, accumulated depreciation, beginning | 29,526 | 10,777 | |||
Depreciation for the year | 24,079 | 18,891 | 10,332 | ||
Effect of changes in foreign exchange rates | 2,529 | (142) | 445 | ||
Property and equipment, accumulated depreciation, ending | 56,134 | 29,526 | 10,777 | ||
Property and equipment, carrying amounts | 67,525 | 87,589 | 61,151 | ||
Machinery and equipment [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Property and equipment at cost, beginning | 4,830,020 | 3,994,657 | 2,873,255 | ||
Additions, net of returns | 1,087,414 | 842,877 | [1] | 525,685 | |
Reclassification | 162,917 | 48,941 | 516,111 | ||
Disposals | [2] | ||||
Effect of changes in foreign exchange rates | 11,270 | (56,455) | 79,606 | ||
Property and equipment at cost, ending | 6,091,621 | 4,830,020 | 3,994,657 | ||
Property and equipment, accumulated depreciation, beginning | 1,930,726 | 1,146,014 | 511,806 | ||
Depreciation for the year | 1,000,085 | 794,834 | 609,803 | ||
Effect of changes in foreign exchange rates | 27,727 | (10,122) | 24,405 | ||
Property and equipment, accumulated depreciation, ending | 2,958,538 | 1,930,726 | 1,146,014 | ||
Property and equipment, carrying amounts | 3,133,083 | 2,899,294 | 2,848,643 | ||
Office equipment [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Property and equipment at cost, beginning | 183,269 | 128,185 | 85,233 | ||
Additions, net of returns | 21,435 | 57,221 | [1] | 38,416 | |
Reclassification | (21,215) | 3,255 | |||
Disposals | [2] | ||||
Effect of changes in foreign exchange rates | (5,586) | (2,137) | 1,281 | ||
Property and equipment at cost, ending | 177,903 | 183,269 | 128,185 | ||
Property and equipment, accumulated depreciation, beginning | 105,918 | 79,372 | 67,964 | ||
Depreciation for the year | 30,100 | 26,641 | 11,128 | ||
Effect of changes in foreign exchange rates | (12,105) | (95) | 280 | ||
Property and equipment, accumulated depreciation, ending | 123,913 | 105,918 | 79,372 | ||
Property and equipment, carrying amounts | $ 53,990 | $ 77,351 | $ 48,813 | ||
[1]During 2021, the Company returned $ 196,490 897,727 |
SCHEDULE OF PROPERTY AND EQUI_3
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equipment transferred to settle research and development expenses | $ 897,727 | |
Cost of equipment returned to vendor | $ 196,490 |
SCHEDULE OF PATENTS AND LICENSE
SCHEDULE OF PATENTS AND LICENSES (Details) - Patents and Licenses [member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Patents and licenses, cost, beginning | $ 996,461 | $ 837,102 | $ 785,027 |
Additions | 62,475 | 159,359 | 52,075 |
Disposals | |||
Patents and licenses, cost, ending | 1,058,936 | 996,461 | 837,102 |
Patents and licenses, accumulated amortization, beginning | 467,985 | 398,425 | 332,643 |
Amortization | 80,246 | 69,560 | 65,782 |
Patents and licenses, accumulated amortization, ending | 548,231 | 467,985 | 398,425 |
Patents and licenses, carrying amounts | $ 510,705 | $ 528,476 | $ 438,677 |
SCHEDULE OF RIGHT OF USE ASSET
SCHEDULE OF RIGHT OF USE ASSET AND LEASE LIABILITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Right of use asset, cost, beginning | $ 649,110 | $ 653,232 | $ 238,200 |
Additions | 465,068 | ||
Lease modification | 81,542 | (47,939) | |
Effect of changes in foreign exchange rates | (4,122) | (2,097) | |
Right of use asset, cost, ending | 730,652 | 649,110 | 653,232 |
Right of use asset, accumulated amortization, beginning | 322,220 | 132,546 | 15,683 |
Amortization | 158,648 | 190,596 | 116,057 |
Effect of changes in foreign exchange rates | 8,737 | (922) | 806 |
Right of use asset, accumulated amortization, ending | 489,605 | 322,220 | 132,546 |
Right of use asset, carrying amounts | 241,047 | 326,890 | 520,686 |
Lease liability, beginning | 359,348 | 531,997 | 223,758 |
Interest expense | 49,738 | 67,675 | 44,655 |
Lease modification | 81,542 | (48,725) | |
Additions | 452,385 | ||
Lease payments | (204,518) | (237,634) | (144,142) |
Effect of changes in foreign exchange rates | (6,847) | (2,690) | 4,066 |
Lease liability, ending | $ 279,263 | $ 359,348 | $ 531,997 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Trade payables | $ 2,723,531 | $ 987,498 | $ 1,603,284 |
Payroll related liabilities | 452,751 | 521,692 | 60,455 |
Accrued liabilities | 186,148 | 282,032 | 66,622 |
Total accounts payable and accrued liabilities | $ 3,362,430 | $ 1,791,222 | $ 1,730,361 |
RIGHT OF USE ASSET AND LEASE _3
RIGHT OF USE ASSET AND LEASE LIABILITY (Details Narrative) | Dec. 31, 2022 |
Incremental borrowing rate | 12% |
SCHEDULE OF CONVERTIBLE DEBENTU
SCHEDULE OF CONVERTIBLE DEBENTURES (Details) | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Convertible Debentures Issued on April 3, 2020 [member] | |
IfrsStatementLineItems [Line Items] | |
Loan | $ 1,293,519 |
Equity Component | (242,004) |
Accretion | 338,988 |
Debt Component | 1,390,503 |
Convertible Debentures Issued on May 3, 2020 [member] | |
IfrsStatementLineItems [Line Items] | |
Loan | 806,893 |
Equity Component | (151,842) |
Accretion | 218,159 |
Debt Component | 873,210 |
Convertible Debentures Issued on June 3, 2020 [member] | |
IfrsStatementLineItems [Line Items] | |
Loan | 496,995 |
Equity Component | (93,278) |
Accretion | 117,481 |
Debt Component | 521,198 |
Convertible Debentures Issued on August 2, 2020 [member] | |
IfrsStatementLineItems [Line Items] | |
Loan | 290,365 |
Equity Component | (54,978) |
Accretion | 62,683 |
Debt Component | 298,070 |
Convertible Debentures Issued on September 19, 2020 [member] | |
IfrsStatementLineItems [Line Items] | |
Loan | 122,965 |
Equity Component | (23,019) |
Accretion | 22,905 |
Debt Component | 122,851 |
Convertible Debentures [Member] | |
IfrsStatementLineItems [Line Items] | |
Loan | 3,010,737 |
Equity Component | (565,121) |
Accretion | 760,216 |
Debt Component | 3,341,246 |
Effect of foreign exchange rate changes | $ 135,414 |
CONVERTIBLE DEBENTURES, LOAN _3
CONVERTIBLE DEBENTURES, LOAN PAYABLE AND PROMISSORY NOTE (Details Narrative) | 12 Months Ended | |||||
Sep. 19, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 USD ($) shares | Dec. 31, 2019 CAD ($) shares | Dec. 31, 2019 CAD ($) $ / shares | |
Unsecured Convertible Debentures [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Proceeds from convertible Debentures | $ 3,729,921 | $ 4,988,292 | ||||
Interest rate | 12% | 12% | ||||
Borrowings, interest rate, monthly payable | 1% | 1% | ||||
Payments for debt issue costs | $ 377,072 | $ 499,462 | ||||
Unsecured Convertible Debentures [Member] | Top of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Convertible Debentures | $ 10,500,000 | |||||
Convertible Debentures [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Conversion of debt price per share | $ / shares | $ 4 | |||||
Number of debt converted, shares | shares | 1,119,750 | 123,500 | 1,245,750 | 1,245,750 | ||
Conversion of debt description | Each unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of CAD$5.00 per share for a period of four years from the date upon which the convertible debenture is issued. | Each unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of CAD$5.00 per share for a period of four years from the date upon which the convertible debenture is issued. | ||||
Number of debt converted, value | $ 3,571,342 | $ 369,545 | ||||
Repayment of borrowing | $ 7,886 | |||||
Convertible Debentures [Member] | Board of Directors and Senior Management Team [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Subscription of debt, percent | 14.30% | 14.30% | ||||
Subscription of debt amount | $ 535,000 | $ 710,000 | ||||
Convertible Debentures [Member] | IBK Capital [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Subscription of debt, percent | 4% | 4% | ||||
Subscription of debt amount | $ 146,000 | $ 200,000 | ||||
Convertible Debentures [Member] | Top of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Debt discount rates | 29.71% | 29.71% | ||||
Convertible Debentures [Member] | Bottom of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Debt discount rates | 28.74% | 28.74% |
SCHEDULE OF COMMON SHARES ISSUE
SCHEDULE OF COMMON SHARES ISSUED (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Capital | |||
Opening balance, shares | 36,494,228 | 29,461,811 | 28,836,355 |
Opening balance, value | $ 147,729,846 | $ 114,586,260 | $ 112,144,172 |
Funds from the exercise of stock options, shares | 143,437 | 1,001,519 | 330,284 |
Funds from the exercise of stock options, value | $ 418,845 | $ 3,124,392 | $ 794,808 |
Fair value of stock options exercised, shares | |||
Fair value of stock options exercised , value | $ 374,129 | $ 2,699,042 | $ 768,356 |
Funds from the exercise of warrants, shares | 72,500 | 3,144,750 | 74,400 |
Funds from the exercise of warrants, value | $ 284,437 | $ 12,994,358 | $ 293,642 |
Fair value of exercised warrants, shares | |||
Fair value of exercised warrants, value | $ 79,547 | $ 5,351,586 | $ 127,964 |
Issued on the conversion of convertible debentures, shares | 1,119,750 | 123,500 | |
Issued on the conversion of convertible debentures, value | $ 3,571,342 | $ 369,545 | |
Fair value of warrants issued on conversion of convertible debentures, shares | |||
Fair value of warrants issued on conversion of convertible debentures, value | $ (1,229,305) | $ (146,858) | |
Exercise of warrants issued in conjunction with debt financing, shares | 94,245 | ||
Exercise of warrants issued in conjunction with debt financing, value | $ 221,620 | ||
Shares issued to settle accounts payable, shares | 5,422 | 1,678 | 3,027 |
Shares issued to settle accounts payable, value | $ 40,029 | $ 13,814 | $ 13,011 |
Funds from Common shares issued on privale placement, shares | 1,126,635 | 1,764,720 | |
Funds from Common shares issued on privale placement, value | $ 3,184,332 | $ 11,815,595 | |
Fair value of warrants issued on private placement, shares | |||
Fair value of warrants issued on private placement, value | $ (656,734) | $ (3,766,007) | |
Share issue costs, shares | |||
Share issue costs, value | $ (247,892) | $ (1,143,034) | |
Fair value of broker warrants issued as share issue costs, shares | |||
Fair value of broker warrants issued as share issue costs, value | $ (288,197) | ||
Adjustment of share for consolidation, shares | (272) | ||
Adjustment of share for consolidation, value | |||
Ending balance, shares | 37,841,950 | 36,494,228 | 29,461,811 |
Ending balance, value | $ 151,206,539 | $ 147,729,846 | $ 114,586,260 |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) | 12 Months Ended | ||||||||||||||
Dec. 02, 2022 USD ($) $ / shares shares | Dec. 02, 2022 CAD ($) | Feb. 24, 2022 | Feb. 11, 2021 USD ($) $ / shares shares | Feb. 11, 2021 CAD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares | Dec. 02, 2022 $ / shares | Dec. 31, 2021 $ / shares | Jun. 12, 2021 $ / shares | Jun. 12, 2021 $ / shares | Feb. 11, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
IfrsStatementLineItems [Line Items] | |||||||||||||||
Convertible debentures converted value | $ 369,545 | ||||||||||||||
Converted units | shares | 123,500 | ||||||||||||||
Warrant exercise price | (per share) | $ 3.80 | $ 5 | |||||||||||||
Expected dividend as percentage, warrants | 0% | ||||||||||||||
Risk free interest rate, warrants | 1.32% | ||||||||||||||
Expected volatility, warrants | 76.55% | ||||||||||||||
Warrant expected life | 2 years | ||||||||||||||
Fair value of warrants | $ 146,858 | ||||||||||||||
Price per share | (per share) | $ 7.38 | $ 8.20 | $ 4.30 | $ 9.38 | $ 10.10 | $ 5.60 | |||||||||
Shares issued to settle accounts payable, value | $ 40,029 | $ 13,814 | $ 13,011 | ||||||||||||
Shares issued to settle accounts payable, shares | shares | 5,422 | 1,678 | 3,027 | ||||||||||||
Share consolidation, description | the Company filed Articles of Amendment to consolidate its common shares on a ten-for-one basis. For further clarity, for every ten (10) pre-consolidated common shares, shareholders received one (1) post-consolidated common share | ||||||||||||||
Common Stock [Member] | Private placement offering [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Warrant exercise price | (per share) | $ 3.61 | $ 9 | $ 4.95 | $ 18.10 | $ 23 | $ 11.50 | |||||||||
Expected dividend as percentage, warrants | 0% | 0% | 0% | 0% | |||||||||||
Risk free interest rate, warrants | 3.48% | 3.48% | 0.19% | 0.19% | |||||||||||
Expected volatility, warrants | 69.93% | 69.93% | 75.26% | 75.26% | |||||||||||
Warrant expected life | 3 years | 3 years | 2 years | 2 years | |||||||||||
Fair value of warrants | $ 656,734 | $ 3,766,007 | |||||||||||||
Number of shares issued | shares | 1,126,635 | 1,764,720 | |||||||||||||
Price per share | (per share) | $ 2.78 | $ 6.70 | $ 3.81 | 8.50 | |||||||||||
Gross proceeds from private offering | $ 3,184,332 | $ 4,292,479 | $ 11,815,595 | $ 15,000,120 | |||||||||||
Warrants to purchase common stock, description | Each unit consists of one common share and one half common share purchase warrant. | Each unit consists of one common share and one half common share purchase warrant. | Each unit consists of one common share and one common share purchase warrant. | Each unit consists of one common share and one common share purchase warrant. | |||||||||||
Cash commission | $ 42,090 | $ 57,897 | $ 708,667 | $ 900,007 | |||||||||||
Commission percentage | 6% | ||||||||||||||
Share issue related cost | $ 205,802 | $ 434,367 | |||||||||||||
Common Stock [Member] | Private placement offering [member] | Key management personnel of entity or parent [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Number of shares issued | shares | 10,000 | ||||||||||||||
Gross proceeds from private offering | $ 27,800 | $ 38,100 | |||||||||||||
Common Stock [Member] | Private placement offering [member] | Broker Warrant [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Warrant exercise price | (per share) | $ 6.70 | $ 8.50 | |||||||||||||
Fair value of warrants | $ 288,197 | ||||||||||||||
Cash commission | $ 105,883 |
SCHEDULE OF WARRANTS AND COMPEN
SCHEDULE OF WARRANTS AND COMPENSATION OPTIONS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Warrants and Compensation Options, Historical Average Exercise Price Beginning Balance | $ 7.10 | $ 3.90 | $ 4.30 | |
Warrants and Compensation Options, Number of Warrants/Compensation options Beginning Balance | 3,021,353 | 3,269,050 | 4,953,979 | |
Warrants and Compensation Options, Historical Fair value Beginning Balance | $ 5,328,455 | $ 5,557,002 | $ 8,525,358 | |
Fair value of warrants issued on conversion of convertible debentures, Historical Average Exercise Price | $ 3.80 | $ 3.80 | ||
Fair value of warrants issued on conversion of convertible debentures, Number of Warrants/Compensation options | 1,119,750 | 123,500 | ||
Fair value of warrants issued on conversion of convertible debentures, Historical Fair value | $ 1,229,305 | $ 146,858 | ||
Fair value of expired compensation options issued to brokers,Historical Average Exercise Price | $ 4.30 | |||
Fair value of expired compensation options issued to brokers,Number of Warrants/Compensation options | (150,544) | |||
Fair value of expired compensation options issued to brokers, Historical Fair value | $ (479,204) | |||
Fair value related to the exercise of warrants issued as cost of debt financing,Historical Average Exercise Price | [1] | $ 2.70 | ||
Fair value related to the exercise of warrants issued as cost of debt financing,Number of Warrants/Compensation options | [1] | (328,950) | ||
Fair value related to the exercise of warrants issued as cost of debt financing,Historical Fair value | [1] | $ (221,620) | ||
Fair value of expired warrants issued on public offering, Historical Average Exercise Price | $ 5.80 | |||
Fair value of expired warrants issued on public offering, Number of Warrants/Compensation options | (1,254,535) | |||
Fair value of expired warrants issued on public offering, Historical Fair value | $ (2,286,426) | |||
Historical fair value assigned to warrants exercised, Historical Average Exercise Price | $ 3.90 | $ 3.90 | $ 3.90 | |
Historical fair value assigned to warrants exercised, Number of Warrants/Compensation options | (72,500) | (3,144,750) | (74,400) | |
Historical fair value assigned to warrants exercised, Historical Fair value | $ (79,547) | $ (5,351,586) | $ (127,964) | |
Fair value of warrant issued on private placement, Historical Average Exercise Price | $ 1.17 | $ 9 | ||
Fair value of warrant issued on private placement, Number of Warrants/Compensation options | 563,318 | 1,764,720 | ||
Fair value of warrant issued on private placement, Historical Fair value | $ 656,734 | $ 3,766,007 | ||
Fair value of broker warrants issued on private placement, Historical Average Exercise Price | $ 6.70 | |||
Fair value of broker warrants issued on private placement, Number of Warrants/Compensation options | 105,883 | |||
Fair value of broker warrants issued on private placement, Historical Fair value | $ 288,197 | |||
Fair value of expired warrants issued on public offering, Historical Average Exercise Price | $ 3.90 | |||
Fair value of expired warrants issued on public offering, Number of Warrants/Compensation options | (93,300) | |||
Fair value of expired warrants issued on public offering, Historical Fair value | $ (160,470) | |||
Warrants and Compensation Options, Historical Average Exercise Price Ending Balance | $ 6.15 | $ 7.10 | $ 3.90 | |
Warrants and Compensation Options, Number of Warrants/Compensation options Ending Balance | 3,512,171 | 3,021,353 | 3,269,050 | |
Warrants and Compensation Options, Historical Fair value Ending Balance | $ 5,905,642 | $ 5,328,455 | $ 5,557,002 | |
[1]These warrants had a cashless exercise feature. The warrant holder utilized the cashless exercise feature to exercise the warrants, which resulted in the Company issuing 94,245 |
SCHEDULE OF WARRANTS AND COMP_2
SCHEDULE OF WARRANTS AND COMPENSATION OPTIONS (Details) (Parenthetical) | Dec. 31, 2022 shares |
Warrant Holders [member] | |
IfrsStatementLineItems [Line Items] | |
Issuance of common shares | 94,245 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) | 12 Months Ended | ||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | |
Stock Options And Contributed Surplus | |||
Number of Options, Outstanding, Beginning Balance | shares | 4,959,617 | 5,114,449 | 5,326,034 |
Historical Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 4.40 | $ 3.30 | $ 4.30 |
Number of Options, Expired/cancelled | shares | (117,438) | (166,438) | (828,794) |
Historical Weighted Average Exercise Price, Expired/cancelled | $ / shares | $ 6.02 | $ 3.40 | $ 10.20 |
Number of Options, Exercised | shares | (143,437) | (1,001,519) | (330,284) |
Historical Weighted Average Exercise Price, Exercised | $ / shares | $ 2.85 | $ 3 | $ 2.40 |
Number of Options, Granted | shares | 2,043,083 | 1,013,125 | 947,493 |
Historical Weighted Average Exercise Price, Granted | $ / shares | $ 3.32 | $ 8.50 | $ 3.60 |
Number of Options, Outstanding, Ending Balance | shares | 6,741,825 | 4,959,617 | 5,114,449 |
Historical Weighted Average Exercise Price, Ending Balance | $ / shares | $ 4.10 | $ 4.40 | $ 3.30 |
SCHEDULE OF STOCK OPTIONS ASSUM
SCHEDULE OF STOCK OPTIONS ASSUMPTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Weighted average exercise price | $ 3.32 | $ 8.50 | $ 3.60 |
Weighted average dividend yield | 0% | 0% | 0% |
Weighted average volatility | 83.51% | 90.68% | 94.77% |
Weighted average estimated life | 10 years | 10 years | 10 years |
Weighted average share price | $ 3.32 | $ 8.50 | $ 3.60 |
Weighted average fair value | $ 2.70 | $ 7.50 | $ 3 |
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Weighted average risk-free interest rate | 1.80% | 0.80% | 0.52% |
Share price on the various grant dates | $ 2.72 | $ 6.20 | $ 2.20 |
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Weighted average risk-free interest rate | 3.48% | 1.48% | 1.52% |
Share price on the various grant dates | $ 6.71 | $ 9.50 | $ 3.90 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE AND WEIGHTED AVERAGE EXERCISE PRICE OF OPTIONS (Details) | 12 Months Ended | |||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | Dec. 31, 2019 shares $ / shares | |
IfrsStatementLineItems [Line Items] | ||||
Number Outstanding | shares | 6,741,825 | 4,959,617 | 5,114,449 | 5,326,034 |
Historical Weighted Average Exercise Price | $ 4.10 | $ 4.40 | $ 3.30 | $ 4.30 |
Weighted Average Remaining Remaining Life (years) | 7 years 5 months 23 days | |||
Number Exercisable | shares | 3,832,394 | |||
Historical Weighted Average Exercise Price | $ 3.68 | |||
Exercise Range One [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number Outstanding | shares | 7,000 | |||
Historical Weighted Average Exercise Price | $ 2 | |||
Weighted Average Remaining Remaining Life (years) | 5 years 7 months 2 days | |||
Number Exercisable | shares | 7,000 | |||
Historical Weighted Average Exercise Price | $ 2 | |||
Exercise Range One [member] | Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | 0.85 | |||
Exercise Range One [member] | Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | $ 2 | |||
Exercise Range Two [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number Outstanding | shares | 2,197,179 | |||
Historical Weighted Average Exercise Price | $ 2.48 | |||
Weighted Average Remaining Remaining Life (years) | 7 years 14 days | |||
Number Exercisable | shares | 1,314,750 | |||
Historical Weighted Average Exercise Price | $ 2.36 | |||
Exercise Range Two [member] | Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | 2.01 | |||
Exercise Range Two [member] | Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | $ 2.84 | |||
Exercise Range Three [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number Outstanding | shares | 4,537,646 | |||
Historical Weighted Average Exercise Price | $ 4.61 | |||
Weighted Average Remaining Remaining Life (years) | 7 years 8 months 8 days | |||
Number Exercisable | shares | 2,510,644 | |||
Historical Weighted Average Exercise Price | $ 4.38 | |||
Exercise Range Three [member] | Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | 2.85 | |||
Exercise Range Three [member] | Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exercise Range | $ 9.15 |
STOCK OPTIONS AND CONTRIBUTED_3
STOCK OPTIONS AND CONTRIBUTED SURPLUS (Details Narrative) - USD ($) | 12 Months Ended | |||
Oct. 07, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Stock based compensation | $ 4,436,604 | $ 4,534,370 | $ 3,612,945 | |
2021 Plan [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Fixed stock option percentage | 20% | |||
Number of shares stock option granted | 7,090,518 | |||
Maximum percentage of issued and outstanding shares percentage | 20% |
SCHEDULE OF INCOME (LOSS) PER S
SCHEDULE OF INCOME (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss | $ (21,036,690) | $ (15,669,093) | $ (18,169,070) |
Weighted average number of common shares outstanding | 36,739,857 | 34,545,752 | 29,169,653 |
Weighted average number of common shares outstanding - diluted | 36,739,857 | 34,545,752 | 29,169,653 |
Basic and diluted loss per share | $ (0.57) | $ (0.45) | $ (0.62) |
SCHEDULE OF REMAINING ANNUAL RE
SCHEDULE OF REMAINING ANNUAL RENTAL PAYMENTS LEASE (Details) | Dec. 31, 2022 USD ($) |
IfrsStatementLineItems [Line Items] | |
Remaining minimum annual rental payments | $ 374,725 |
2023 [member] | |
IfrsStatementLineItems [Line Items] | |
Remaining minimum annual rental payments | 227,844 |
2024 and beyond [member] | |
IfrsStatementLineItems [Line Items] | |
Remaining minimum annual rental payments | $ 146,881 |
SCHEDULE OF COMPENSATION TO KEY
SCHEDULE OF COMPENSATION TO KEY MANAGEMENT PERSONNEL (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Salaries | $ 2,010,479 | $ 1,782,297 | $ 1,501,058 | |
Share-based payments | [1] | 1,711,716 | 2,077,333 | 2,144,930 |
Total | $ 3,722,195 | $ 3,859,630 | $ 3,645,988 | |
[1]Share-based payments are the fair value of options granted to key management personnel and expensed during the various years as calculated using the Black-Scholes model. |
SCHEDULE OF GEOGRAPHICAL INFORM
SCHEDULE OF GEOGRAPHICAL INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Current assets | $ 9,568,194 | $ 21,789,126 | $ 7,491,611 |
Property and equipment | 5,070,507 | 3,064,234 | 3,185,754 |
Right of use asset | 241,047 | 326,890 | 520,686 |
Total Assets | 15,390,453 | 27,153,977 | 11,636,728 |
Revenue | 552,748 | 209,100 | |
Selling, marketing and administration | (9,516,271) | (9,055,528) | (8,137,998) |
Research and development | (10,746,743) | (8,165,128) | (6,634,317) |
Interest expense | (49,738) | (364,619) | (937,903) |
Other income, including interest | 188,320 | 75,084 | 41,148 |
Net loss | (21,036,690) | (15,669,093) | (18,169,070) |
Credit loss on receivable from the sale of discontinued operation | 2,500,000 | ||
Operating segments [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 9,568,194 | 21,789,126 | 7,491,611 |
Property and equipment | 5,070,507 | 3,064,234 | 3,185,754 |
Patents and licenses | 510,705 | 528,476 | 438,677 |
Right of use asset | 241,047 | 326,890 | 520,686 |
Total Assets | 15,390,453 | 27,153,977 | 11,636,728 |
Revenue | 552,748 | 209,100 | |
Selling, marketing and administration | (9,516,271) | (9,055,530) | (8,137,998) |
Research and development | (10,746,743) | (8,165,128) | (6,634,317) |
Gain on contribution of intellectual property to joint venture | 1,746,987 | 2,587,500 | |
Interest expense | (49,738) | (364,619) | (937,903) |
Other income, including interest | 188,320 | 75,084 | 41,148 |
Share of loss in joint venture | (3,211,993) | (1,142,249) | |
Net loss | (21,036,690) | (15,669,095) | (18,169,070) |
Investment in joint venture | 1,445,251 | ||
Forgiveness of Covid-19 government support loans | 186,747 | ||
Impairment of long lived assets | |||
Credit loss on receivable from the sale of discontinued operation | (2,500,000) | ||
Asian [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 664,658 | 537,647 | 304,450 |
Property and equipment | 4,496,734 | 2,787,273 | 2,982,496 |
Patents and licenses | |||
Right of use asset | 55,775 | 150,134 | 289,542 |
Total Assets | 5,217,167 | 4,920,305 | 3,576,488 |
Revenue | 552,748 | 209,100 | |
Selling, marketing and administration | (2,121,596) | (1,563,829) | (1,182,054) |
Research and development | (6,344,016) | (4,849,553) | (3,269,873) |
Gain on contribution of intellectual property to joint venture | 1,746,987 | 2,587,500 | |
Interest expense | (17,701) | (35,043) | (20,181) |
Other income, including interest | |||
Share of loss in joint venture | (3,211,993) | (1,142,249) | |
Net loss | (9,395,571) | (4,794,074) | (4,472,108) |
Investment in joint venture | 1,445,251 | ||
Forgiveness of Covid-19 government support loans | |||
Impairment of long lived assets | |||
Credit loss on receivable from the sale of discontinued operation | |||
United State [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 133,501 | 291,772 | 69,874 |
Property and equipment | 573,773 | 276,961 | 203,258 |
Patents and licenses | 510,705 | 528,476 | 438,677 |
Right of use asset | 185,272 | 176,756 | 231,144 |
Total Assets | 1,403,251 | 1,273,965 | 942,953 |
Revenue | |||
Selling, marketing and administration | (5,885,970) | (5,460,917) | (5,495,161) |
Research and development | (4,205,177) | (2,679,452) | (1,447,729) |
Gain on contribution of intellectual property to joint venture | |||
Interest expense | (32,037) | (32,632) | (24,474) |
Other income, including interest | |||
Share of loss in joint venture | |||
Net loss | (10,123,184) | (7,986,254) | (6,967,364) |
Investment in joint venture | |||
Forgiveness of Covid-19 government support loans | 186,747 | ||
Impairment of long lived assets | |||
Credit loss on receivable from the sale of discontinued operation | |||
CANADA | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 8,770,035 | 20,959,707 | 7,117,287 |
Property and equipment | |||
Patents and licenses | |||
Right of use asset | |||
Total Assets | 8,770,035 | 20,959,707 | 7,117,287 |
Revenue | |||
Selling, marketing and administration | (1,508,705) | (2,030,784) | (1,460,783) |
Research and development | (197,550) | (636,123) | (1,916,715) |
Gain on contribution of intellectual property to joint venture | |||
Interest expense | (296,944) | (893,248) | |
Other income, including interest | 188,320 | 75,084 | 41,148 |
Share of loss in joint venture | |||
Net loss | $ (1,517,935) | (2,888,767) | (6,729,598) |
Investment in joint venture | |||
Forgiveness of Covid-19 government support loans | |||
Impairment of long lived assets | |||
Credit loss on receivable from the sale of discontinued operation | $ (2,500,000) |
SCHEDULE OF CLASSIFIED FINANCIA
SCHEDULE OF CLASSIFIED FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments And Risk Management | ||||
Cash and cash equivalents | $ 9,229,845 | $ 14,941,775 | $ 6,872,894 | $ 1,428,129 |
Short-term investments | 6,366,828 | |||
Accounts receivable | 62,842 | |||
Accounts payable and accrued liabilities | (3,362,430) | (1,791,222) | (1,730,361) | |
Convertible debentures | (3,341,246) | |||
Covid-19 government support loans | (29,520) | (31,660) | (218,151) | |
Contract liabilities | $ (274,192) |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Financial Instruments And Risk Management | |
Change in exchange rate risk | 10% |
Increase decrease in other comprehensive loss | $ 140,421 |
SCHEDULE OF COMPONENTS OF CAPIT
SCHEDULE OF COMPONENTS OF CAPITAL (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 9,229,845 | $ 14,941,775 | $ 6,872,894 | $ 1,428,129 |
Shareholders' equity | $ 208,128,989 |
SCHEDULE OF EXPENSES BY NATURE
SCHEDULE OF EXPENSES BY NATURE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Wages and benefits | $ 4,267,937 | $ 3,270,528 | $ 1,586,900 |
Subcontract fees | 2,946,729 | 1,516,343 | 3,802,919 |
Stock-based compensation | 2,054,187 | 1,769,951 | 567,859 |
Supplies | 1,477,890 | 1,608,306 | 676,639 |
Research and development costs | 10,746,743 | 8,165,128 | 6,634,317 |
Stock-based compensation | 2,382,417 | 2,764,419 | 3,045,086 |
Wages and benefits | 2,648,862 | 2,643,451 | 2,233,449 |
Professional fees | 1,173,743 | 1,155,316 | 800,551 |
General expenses | 1,860,762 | 1,304,690 | 1,188,712 |
Depreciation and amortization | 1,293,158 | 1,100,522 | 813,103 |
Rent and facility costs | 157,329 | 87,130 | 57,097 |
Selling, marketing and administration costs | $ 9,516,271 | $ 9,055,528 | $ 8,137,998 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - DenseLight [Member] - USD ($) | 12 Months Ended | 32 Months Ended | |
Nov. 08, 2019 | Dec. 31, 2020 | Jul. 03, 2022 | |
IfrsStatementLineItems [Line Items] | |||
Proportion of ownership interest in subsidiary, sold | 100% | ||
Cash flows from losing control of subsidiaries or other businesses | $ 26,000,000 | ||
Gain on sale of subsidiary | $ 2,500,000 | ||
Disposal of major subsidiary [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash flows from losing control of subsidiaries or other businesses | $ 23,500,000 | $ 23,500,000 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 552,748 | $ 209,100 |
SCHEDULE OF INCOME TAX RECOVERY
SCHEDULE OF INCOME TAX RECOVERY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss before taxes | $ (21,036,690) | $ (15,669,093) | $ (18,169,070) |
Expected current income tax recovery | (5,574,723) | (4,152,310) | (4,814,804) |
Amounts not deductible for tax purposes | (1,177,000) | (1,201,600) | (957,400) |
Other non-deductible items | (66,000) | (111,000) | (137,000) |
Other deductible items | 161,000 | 157,000 | 115,000 |
Non-taxable gain (loss) | (388,000) | 383,000 | |
Non-taxable loan forgiveness | 49,000 | ||
Deferred R&D expenses | (627,000) | ||
Foreign tax differential | (828,000) | (508,000) | (221,000) |
Unrecognized tax recovered (losses) | 2,649,723 | 2,920,710 | 3,614,404 |
Income tax recovery recognized |
SCHEDULE OF FUTURE INCOME TAX A
SCHEDULE OF FUTURE INCOME TAX ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | |||
Unused income tax losses | $ 138,384,521 | $ 124,361,000 | $ 111,333,403 |
Unrecognized deferred tax assets | (138,385,521) | (124,361,000) | (111,333,403) |
Deferred income tax assets recognized | |||
Resource assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 1,024,271 | 1,024,271 | 1,024,271 |
Gross unamortized share issue costs [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 1,081,250 | 1,114,604 | 325,600 |
Capitalized S.174 expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 2,368,000 | ||
Canadian non-capital losses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 21,955,000 | 21,404,000 | 22,969,000 |
Canadian capital losses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 5,156,000 | 5,565,125 | 4,432,532 |
US non-capital losses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | 93,000,000 | 86,073,000 | 78,829,000 |
Singapore non-capital losses [memeber] | |||
IfrsStatementLineItems [Line Items] | |||
Singapore non-capital losses | $ 13,800,000 | $ 9,180,000 | $ 3,753,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CANADA | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 26.50% | 26.50% | 26.50% |
COVID-19 GOVERNMENT SUPPORT L_2
COVID-19 GOVERNMENT SUPPORT LOANS (Details Narrative) | Apr. 15, 2020 USD ($) | Apr. 09, 2020 USD ($) | May 03, 2020 USD ($) | Apr. 09, 2020 CAD ($) |
Paycheck Protection Program [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Loans received | $ 29,520 | $ 29,520 | $ 186,747 | $ 40,000 |
Borrowings interest rate | 5% | |||
Canada Emergency Business Account [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Canada emergency business account description | the Company received a loan in the amount of $29,520 through the CEBA. If the loan has not been repaid by December 31, 2023, the outstanding amount will be automatically extended for an additional two years at 5% interest per annum payable monthly and maturing on December 31, 2025. The Company expects to repay 75% of the amount borrowed prior to December 31, 2023. | the Canadian government launched the Canada Emergency Business Account (“CEBA”) which is intended to support businesses during COVID-19 by providing interest free financing of up to $29,520 (CA$40,000) until December 31, 2023. If 75% of the loan is repaid by December 31, 2023, the loan recipient will be eligible for a loan forgiveness of the remaining 25% of the amount loaned. |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | 2 Months Ended | |||||
Mar. 22, 2023 USD ($) shares | Mar. 22, 2023 CAD ($) shares | May 11, 2023 $ / shares | Feb. 11, 2023 $ / shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 $ / shares | |
IfrsStatementLineItems [Line Items] | ||||||
Warrant exercise price | (per share) | $ 3.80 | $ 5 | ||||
Events Occurring After Reporting Date [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Warrant exercise price | $ / shares | $ 4.25 | $ 11.50 | ||||
Gross proceeds from warrants | $ 5,475,102 | $ 7,474,543 | ||||
Number of warrants exercise | shares | 1,758,716 | 1,758,716 |