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

Quarterly report pursuant to Section 13 or 15(d)

Commitments, Significant Contracts and Contingencies

Commitments, Significant Contracts and Contingencies

9 Months Ended

May 31, 2023

Commitments, Significant Contracts and Contingencies

Commitments, Significant Contracts and Contingencies

12. Commitments, Significant Contracts and Contingencies

Right of Use Assets - Operating Lease

The corporate office and R&D laboratory are located in Kelowna, British Columbia, Canada. The facility is leased until November 14, 2023, and the Company has exercised its five-year renewal option, the term of which commences on November 15, 2023, and expires on November 14, 2028. On March 31,2023, the Company remeasured the ROU asset and Lease liability for the lease extension. In addition to minimum lease payments, the lease requires us to pay property taxes and other operating costs which are subject to annual adjustments.

	May 31, 2023			August 31, 2022
Right of use assets - operating leases	$	52,444		$	91,041
Remeasurement related to lease extension		156,565
Amortization		(30,882	)		(38,597	)
Total lease assets	$	178,127		$	52,444

Liabilities:	$	49,989		$	89,393
Remeasurement related to lease extension		156,565
Lease payments		(33,610	)		(44,600	)
Interest accretion		1,961			5,195
Total lease liabilities	$	174,905		$	49,988

Operating lease cost	$	178,127		$	52,444
Operating cash flows for lease	$	33,610		$	44,599
Remaining lease term		5.42 Years			1.17 Years
Discount rate		7.25	%		7.25	%

The following table summarizes the Company’s maturities of operating lease liabilities as of May 31, 2023:

2023 (three-months remaining)	$	11,204
2024		35,840
2025		37,094
2026		37,345
Thereafter		84,026
Total lease payments	$	205,509
Less: imputed interest		(30,605	)
Present value of operating lease liabilities	$	174,904
Less: current obligations under leases		(32,317	)
Total	$	142,587