Lexaria Bioscience Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock Options

Stock Options

9 Months Ended

May 31, 2022

13. Stock Options

The Company has established the Equity Incentive Plan whereby the board of directors may, from time to time, grant stock options up to the equivalent of 10% of the number of common shares issued and outstanding to directors, officers, employees, and consultants. Stock options granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant. The vesting terms of each grant are set by the board of directors.

During the quarter ended May 31, 2022, the Company granted 36,700 options at a strike price of $3.39 with a contractual life of 5 years. These options were awarded to employees, directors and contractors.

A continuity schedule for stock options is presented below:

	Options			Weighted Average Exercise Price $		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value $
Balance August 31, 2020		171,604			11.17
Cancelled/expired		(50,334	)		10.76
Granted		84,900			5.41
Balance August 31, 2021		206,170			8.90
Cancelled		(3,334	)		9.60
Granted		81,800			6.23
		36,700			3.39
Balance May 31, 2022 (Outstanding)		321,336			6.59		3.46		-
Balance May 31, 2022 (Exercisable)		293,836			6.80		3.62		-

The fair value of share purchase options granted were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

	May 31, 2022
Expected volatility		98% - 119	%
Risk-free interest rate		0.85% - 1.78	%
Expected life	5 years
Dividend yield		0	%
Estimated fair value per option		$2.50 - $5.10