Lexaria Bioscience Corp. Commitments Disclosure
14. Commitments, Significant Contracts and Contingencies
Right of Use Assets - Operating Lease
Our Corporate offices and R&D lab space is leased in Kelowna, British Columbia, Canada. The current lease expires on November 15, 2028. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments.
|
| August 31, 2025 |
|
| August 31, 2024 |
| ||
|
|
|
|
|
|
| ||
Right of use assets - operating leases |
| $ | 134,843 |
|
| $ | 167,446 |
|
Remeasurement related to lease extension |
|
| - |
|
|
| - |
|
Amortization |
|
| (28,027 | ) |
|
| (32,603 | ) |
Total lease assets |
| $ | 106,816 |
|
| $ | 134,843 |
|
Liabilities: |
|
| 137,366 |
|
|
| 163,967 |
|
Remeasurement related to lease extension |
|
| - |
|
|
| - |
|
Lease payments |
|
| (37,094 | ) |
|
| (33,273 | ) |
Interest accretion |
|
| 9,047 |
|
|
| 6,672 |
|
Total lease liabilities |
| $ | 109,319 |
|
| $ | 137,366 |
|
|
|
|
|
|
|
|
|
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Operating lease cost |
| $ | 106,816 |
|
| $ | 134,843 |
|
Operating cash flows for lease |
| $ | (37,094 | ) |
| $ | (33,273 | ) |
Remaining lease term |
| 3.21 Years |
|
| 4.21 Years |
| ||
Discount rate |
|
| 7.25 | % |
|
| 7.25 | % |
Pursuant to the terms of the Company’s lease agreements in effect at August 31, 2025, the following table summarizes the Company’s maturities of operating lease liabilities:
Fiscal Year |
| Amount |
| |
2026 |
| $ | 37,345 |
|
2027 |
|
| 38,642 |
|
2028 |
|
| 38,900 |
|
2029 |
|
| 8,105 |
|
Thereafter |
|
| - |
|
Total lease payments |
|
| 122,992 |
|
Less: imputed interest |
|
| (13,672 | ) |
Present value of operating lease liabilities |
|
| 109,320 |
|
Less: current obligations under leases |
|
| (30,417 | ) |
Total |
| $ | 78,903 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 28, 2025 | Showing above |
| 2024 | Nov 26, 2024 | |
| 2023 | Nov 20, 2023 | |
| 2022 | Nov 28, 2022 | |
| 2021 | Nov 29, 2021 | |
| 2020 | Oct 15, 2020 | |
| 2019 | Nov 14, 2019 | |
| 2018 | Nov 14, 2018 | |
| 2017 | Nov 27, 2017 | |
| 2016 | Nov 29, 2016 | |
| 2015 | Nov 27, 2015 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.