From the MD&A

"More specifically, the Company expects to offer 25Gbps receiver solutions in 2017."

"Other Event As part of the closing of the DenseLight acquisition on July 11, 2016, certain of the sellers agreed to escrow 20% of the POET shares issued as consideration to satisfy any claims or liabilities that may arise relating to breaches of representations and warranties set forth in the share purchase agreement. Subsequent to the end of the period, in connection with the Share Purchase Agreement relating to DenseLight, the Company determined that a claim should be made against the shares held in escrow related to certain warranties given by the Sellers. The number of escrowed shares which may be affected was 2,722,230, which had a value of US$2,100,000 at the time of the acquisition. The Company is in the process of documenting the claims and determining the effect on the value of the transaction."

"Strategy and Outlook There are a number of projects planned for the remainder of 2016 and 2017 which the Company expects will address the short-term and long-term growth plans of the Company including, but not limited to the following:  Continue to expand and develop the POET technology platform.

 Expand the POET executive team, through an ongoing executive recruiting program while retaining top quality staff.

 Continue to develop and expand the IP patent portfolio.

 Grow DenseLight product sales and add innovative new products incorporating both POET and BB Photonics technology.

 Initiate product development activities related to the POET optical engine, focusing on active optical cable applications."

Financial Statement

"Cash and cash equivalents $ 9,699,889"

"The Company has one long term project based service contract in which it recognizes revenue when certain milestones have been reached. The customer is not necessarily invoiced at the time a milestone is reached. As at September 30, 2016, billed but uncollected receivable relating to this project was $192,370. This amount was collected in October 2016. There was $293,565 relating to unbilled milestones that were attained."