MDA Quotes: "PTI, through ODIS, is currently co

"PTI, through ODIS, is currently conducting research and development (R&D) for a wide array of devices for potential military, consumer, commercial, and industrial applications. ODIS continues to develop gallium arsenide-based chip design processes having several potential major market applications, including: (i) infrared sensor arrays for military as well as domestic monitoring and imaging applications, and (ii) the unique combination of optical lasers, and electronic control circuits on the same microchip for potential use in various military programs and potentially telecom applications. The use of gallium arsenide is a key material in ODIS’ POET process development for these products. Upon completion, the POET process is expected to allow the Company to fundamentally alter the landscape of computing for a broad range of applications by offering components with dramatically lowered cost together with increased speed, density, and reliability"

"ODIS has been awarded more than a dozen U.S. Department of Defense projects since 2000. These have supported and continue to support the development of the POET process, infrared sensing technology, sensor/laser development and the combination of electronic circuits and lasers on the same microchip. The Company remains active in this area with projects underway with the U.S. Department of Defense and a major U.S. Defense Contractor. While the Company and BAE Systems continue on the path of producing a much sought after Infrared Detector (IR) Device contracted for by the U.S. Air Force Research Laboratory, (AFRL), the work conducted with military applications will not limit the Company’s ability to monetize POET. The Company continues aggressively with its objective is to explore opportunities to monetize this breakthrough technology. "

"The POET platform, which is covered by numerous patents and patents pending, makes possible the economic production of fully-integrated optoelectronic semiconductor deviceswith higher speeds and reduced power consumption compared to conventional silicon-based devices."

"The Company’s success in 2012 was driven by its ability to achieve significant milestones in cost control, liquidity and technical progress, which in turn led to a recovery in market value of its share price from 2011. In 2013, the Company continued to build on those success drivers to keep the Company operationally sustainable. The Company’s future success will also be driven by focusing on the same factors, as well as critical human capital."

"Management’s decision in 2012 to relieve itself of underperforming assets and establishing a lean operational model has allowed the Company an opportunity to access the necessary resources to focus on its key strategy – developing and monetizing its state-of-the-art POET process."

"Over 2012 and 2013, the Company recognized the need for and invested in new fabrication equipment to allow its technical staff to address technology and commercialization milestones. This new equipment has resulted in the ability to target milestones further down the roadmap than previously mapped. It has also enabled the Company to define and develop an important planar electronic technology (PET) subset of the POET platform, which has the potential to rapidly address specialized application niches in the semiconductor industry. "

"In Q3 2013, the Company continued to earn SBIR revenues relating to a $750,000 SBIRcontract granted to the Company in 2012. This award was granted to the Company while the government was scaling back on SBIR contracts due to government cutbacks. $84,628 was earned in 2013, during the same period in 2012, $112,070 was earned from the award granted. The Company continues to earn on that award and expects it to be completed in early 2014. The Company’s strategy, however, is to reduce its dependency on SBIR by developing POET to the stage of monetizing it outside of its current uses by the government."

"Due to the timing of the stock option grants and the price at which the stock options are granted, the valuation may have a substantial impact on the Company’s profitability. It is important to note, however, that this non-cash expense is considered an integral part of the Company employing and maintaining highly qualified and competent personnel to reach its goals."

"The Company is now focused on reaching milestones 5 (Switching Laser Demonstration at POET’s R&D Labs) and 7 (Optical Thyristor-Based Infrared Detector Array Fabrication and Validation), both of which are progressing without technical issues."

"The Company is positioned with sufficient liquidity to support its operations, technological programs and fixed asset purchases over the next 12 to 18 months. Although the Company has been successful in obtaining such financing in the past, there is no assurance that it will be able to do so in the future.

The Company is embarking on an aggressive plan of monetizing POET while simultaneously improving shareholder value. The focus therefore is to remain sufficiently capitalized through lean operations."

"Strategy and Outlook

During 2013, there are a number of projects planned which will address the short-term and long-term growth plans of the Company including, but not limited to the following:

? Continue to complete the third party validation of the patented POET technology at a fabrication facility that can prove its viability and product potential through ODIS.

? Expand the ODIS engineering team with placement of additional team members at both theODIS’ R&D facility and the third party fabrication facility in Nashua, New Hampshire.

? Procure additional equipment which may be required for the continuing development of POETon a more rapid and more efficient basis.

? Actively engage with all Departments of the Military including other Government Agencies pressing for SBIR funding directed at ODIS for projects which serve to enhance POET’s development.

? Actively search out opportunities to monetize POET, bringing maximum value to shareholders. "

Cheers!