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RIGHT OF USE ASSET AND LEASE LIABILITY

12 Months Ended

Dec. 31, 2021

8.	RIGHT OF USE ASSET AND LEASE LIABILITY

On January 1, 2019, the Company adopted IFRS, 16 Leases. Upon adoption of IFRS 16, the Company recognized a lease liability and right of use asset relating to new leases entered into on February 15, 2019 related to DenseLight, and November 1, 2019 related to PTS. The lease liability was measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 12%. During 2020, the Company modified its lease resulting in reducing the space it leased for the operations at PTS. The Company recognized a gain of $786 on the lease modification which is included in selling, general and marketing on the consolidated statements of operations and deficit.

Right of use asset		Building

Cost
Balance, January 1, 2019		$	-
Additions			1,127,534
Disposal ⁽¹⁾	(1)		(892,300	)
Effect of changes in foreign exchange rates			2,966

Balance, December 31, 2019			238,200
Additions			465,068
Lease modification			(47,939	)
Effect of changes in foreign exchange rates			(2,097	)

Balance, December 31, 2020			653,232
Right of use asset, cost, beginning			653,232
Effect of changes in foreign exchange rates			(4,122	)

Balance, December 31, 2021		$	649,110
Right of use asset, cost, ending		$	649,110

Accumulated Amortization
Balance, January 1, 2019			-
Amortization			15,683

Balance, December 31, 2019			15,683
Amortization			116,057
Effect of changes in foreign exchange rates			806

Balance, December 31, 2020			132,546
Right of use asset, accumulated amortization, beginning			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, ending			322,220

Carrying Amounts
At December 31, 2019		$	222,517

At December 31, 2020		$	520,686

At December 31, 2021		$	326,890
Right of use asset, carrying amounts		$	326,890

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, 2019		$	-
Additions			1,127,534
Interest expense			4,705
Interest included in discontinued operations			74,494
Lease payments			(19,162	)
Lease payments included in discontinued operations			(258,460	)
Disposal ⁽¹⁾	(1)		(695,733	)
Effect of changes in foreign exchange rates			(9,620	)

Balance, December 31, 2019			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
Lease liability, beginning			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, ending		$	359,348

(1)

The Company disposed of $892,000 of right of use asset and $695,733 of lease liability on November 8, 2019 with the sale of DenseLight on November 8, 2019 (Note 21).