POET Technologies Inc.

Just a reminder for everyone.

Can someone please reply to this with Rob's numbers, I can't find it.

Thanks in advance.

General Key Valuation Assumptions

The following are key assumptions that are common to all of our valuation models:

• It will take between 6 and 18 months for POET to pass through technical readiness level

(“TRL”), making POET then desirable for licensing transactions.

• All revenue models rely on technology licensing fees; thus, there is no cost of goods sold

• ODIS will incur cumulative nominal monthly expenses that current grant revenues

satisfy.

• The nominal discount rate for future cash flows is 32.04%

• The base target rate of return used for the discount rate determination is 23.98%.

• The success rate used for the discount rate determination is 25%.

• The holding period used for the discount rate determination would reflect an investment

of 22 years (i.e., ODIS is a strategic acquisition, not a financial acquisition).

• The nominal remaining economic life for the technology is 22 years.

• ODIS will incur a 40% nominal income tax rate.

• ODIS will incur a 5% royalty payment to UCONN for the technology licensing.

• ODIS will enjoy an average of 20 remaining years for statutory protection for POET

patent portfolio.

• A per-unit royalty would constitute 8.17% of the total value basis for the product.

• Once deployed, it will take 48 months for penetration of the market to the nominal ending

market share.

• Product adoption will occur along a Fisher-Pry market adoption curve with a market

shape of 0.2000

Defense Market Key Valuation Assumptions

The following are key assumptions that we integrated into the valuation model for the defense market:

• ODIS will continue to receive annual revenues from Small Business Innovation Research

(SBIR) grants and other awards, in accordance with a projected schedule provided by

ODIS representatives

• ODIS will likely license POET to one or all of the top ten defense contractors.

• Each defense contractor’s licensing decision is an equally probable binary outcome (i.e.,

they will either license it or not, each occurrence having equal probability).

• Each defense contractor’s licensing decision is independent of other defense contractors

(i.e., we modeled no conditional licensing probabilities).

• A time gap that ranges between 2 and 18 months exists that captures when each defense

contractor considers executing a license.

• The defense contractors would pay an initial, nonexclusive license fee that may range

between $20 million and $50 million

• Defense contractors would make monthly royalty payments thereafter of $250,000 to

account for any product-specific royalties.

Commercial Market Key Valuation Assumptions

The following are key assumptions that we integrated into the valuation model for thecommercial market:

• The first market application for POET in the commercial market would be for generalpurpose microprocessors for server computers.

• The second market application for POET in the commercial market would be for generalpurpose microprocessors for desktop computers.

• The third market application for POET in the commercial market would be for generalpurpose microprocessors for laptop computers.

• ODIS will likely license POET to one or all of the top general computer microprocessor

manufacturers on an exclusive basis.

• In each target market, POET platform would nominally allow a manufacturer to capture

its current nominal market share deploying it.

• The server processor market would start at 6,939,877 annual units, growing at 0% per

year.

• Server processors would enter the market 48 months from the effective date of the

valuation.

• Server processors average $828.89 per unit, which would serve as a basis for a negotiated

royalty payment.

• Each server would require two processors.

• The desktop processor market would start at 128,200,000 annual units, growing at 1.13%

per year.

• Desktop processors would enter the market 48 months from the effective date of the

valuation.

• Desktop processors average $93.22 per unit, which would serve as a basis for a

negotiated royalty payment.

• Each desktop would require one processor.

• The laptop processor market would start at 231,900,000 annual units, growing at 12.43%

per year.

• Laptop processors would enter the market 48 months from the effective date of the

valuation.

• Laptop processors average $93.22 per unit, which would serve as a basis for a negotiated

royalty payment.

• Each laptop would require one processor.

Smartphone Market Key Valuation Assumptions

The following are key assumptions that we integrated into the valuation model for the

smartphone market:

• The POET platform would nominally allow a smartphone microprocessor manufacturer

to capture its current nominal market share deploying it.

• ODIS will likely license POET to one or all of the top smartphone microprocessor

manufacturers on an exclusive basis.

• The desktop processor market would start at 188,100,000 annual units, growing at

10.00% in Year 1, 18.18% in Year 2, 15.38% in Year 3, 13.33% in Year 4, 11.28% in

Year 5, 9.23% in Year 6, 7.18% in Year 7, 5.13% in Year 8, 3.08% in Year 9, and 1.03%

in Year 10.

• Smartphone processors would enter the market 48 months from the effective date of the

valuation.

• Smartphone value creation averages $78.96 per unit, which would serve as a basis for a

negotiated royalty payment.

• Each smartphone would require one processor.