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

3 Months Ended

Nov. 30, 2022

16. Stock Options

The Company has established the Equity Incentive Plan whereby the board of directors may, from time to time, grant up to 510,433 stock options 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.

The Company granted the following options during the quarter ended November 30, 2022:

Quantity		Exercise Price $		Life (Years)
	3,400		3.04		5
	41,200		1.96		5
	44,600		2.04		5

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, 2021

206,170

8.90

Cancelled/expired

(3,334

)

9.60

Granted

222,000

4.21

Balance August 31, 2022

424,836

6.45

3.69

5,175

Granted

44,600

2.04

Balance November 30, 2022 (granted)

469,436

5.35

3.91

46,375

Balance November 30, 2022 (exercisable)

441,963

5.41

3.90

41,200

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:

	November 30, 2022
Expected volatility	99%-105		%
Risk-free interest rate	3.30-4.12		%
Expected life	5 years
Dividend yield		0	%
Estimated fair value per option	$1.60 - $2.58