Titan Medical Inc. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

12 Months Ended

Dec. 31, 2021

Presentation of leases for lessee [abstract]

5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Company leases its facility in Chapel Hill, North Carolina. This lease has remaining lease terms of approximately 3.5 years. The Company leased a facility in Toronto, Ontario for its corporate office. The lease expired in November 2021. The Company does not have leases with residual value guarantees, or leases not yet commenced to which we are committed. Lease liabilities have been measured by discounting future lease payments using the Company’s incremental borrowing rate of 6.0% as rates implicit in the leases were not readily determinable.

The following table summarizes the Company’s right-of-use assets outstanding at December 31:

	2021			2020
	$			$
Balance, January 1		867			31
Additions		613			941
Amortization expense		(303	)		(105	)
Balance, December 31		1,177			867

The following table summarizes the Company's lease liabilities outstanding at December 31:

	2021			2020
	$			$
Balance, January 1		917			30
Additions		613			941
Payment of lease liabilities		(276	)		(90	)
Interest expense on lease liabilities		73			36
Balance, December 31		1,327			917

Less than one year		346			166
One to five years		981			751
		1,327			917