Lexaria Bioscience Corp (LEXX)

[Shawking]

Revenue
Product revenues of $7k and licensing usage fees of $Nil during period ended November 30, 2021, constitute a significant decline in intermediate product sales and related licensing
usage fees. Our primary customer in the B2B product revenue stream has been delayed in chain­store rollouts due resulting in overstocked inventory and as such there was no
manufacturing & sales of new inventory for this licensee for the quarter ended November 30, 2021.A number of our other licensees are experiencing suspended or curtailed business
activities due to the impact of COVID­19 on markets and consumer spending. The abilities of other licensees to generate ongoing sales, thereby increasing usage fees are expected to
increase as the effects of the pandemic are eventually diminished. We have continued strong interest in our intermediate products but cannot predict how long the pandemic will affect
purchasing decisions of retail customers that ultimately affect the consumer product manufacturers that utilize our intermediate products. Nor can we predict when recovery of the
general economy will translate into increasing licensing or usage revenues.