Radient Technologies Inc. — Management Reports 2023

Mar 23, 2023

Management Discussion & Analysis

Quarter ended December 31, 2022

March 22, 2023

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 1 of 27

Non-IFRS Measures 3
Forward Looking Statements3
Core Business and Strategy 4
Results of Operations13
Liquidity and Capital Resources20
Related Party Transactions23
Financial Instruments and Related Risk 24
Risk Factors27
Outstanding Share Data 28

Management Discussion and Analysis ("MD&A")

The following MD&A is prepared as of March 22, 2023 and is intended to assist the understanding of the results of operations and financial condition of Radient Technologies Inc. (the "Company" or "Radient").

This MD&A should be read in conjunction with Radient's interim condensed consolidated financial statements and related notes for the three and nine months ended December 31, 2022 and the MD&A and audited consolidated financial statements and related notes for the year ended March 31, 2022. The statements and additional information about Radient can be found on SEDAR at www.sedar.com. Such additional information is not incorporated by reference herein, unless otherwise specified, and should not be deemed to be part of this MD&A.

All dollar amounts are expressed in Canadian currency unless otherwise indicated.

Certain information contained herein includes market and industry data that has been obtained from or is based upon estimates derived from third party sources, including industry publications, reports and websites. Third party sources may state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reliable, neither the Company nor its agents have independently verified the accuracy, currency, reliability or completeness of any of the information from third party sources referred to in this MD&A or ascertained from the underlying economic assumptions relied upon by such sources. The Company disclaims any responsibility or liability whatsoever in respect of any third-party sources of market and industry data or information.

Non-IFRS Measures

In this MD&A, certain terms that are not specifically defined in International Financial Reporting Standards ("IFRS") are used to analyze Radient's operations. In addition to the primary measures of net (loss) income and net (loss) income per share in accordance with IFRS, Radient believes that certain measures not recognized under IFRS assist both Radient and the reader in assessing performance and understanding the Company's results. As a result, the method of calculation may not be comparable with other companies. These measures should not be considered alternatives to net (loss) income and net (loss) income per share as calculated in accordance with IFRS.

Working capital – working capital is calculated as current assets less current liabilities.

Forward-Looking Statements

This MD&A offers our assessment of Radient's future plans and operations as of December 31, 2022 and contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities law (collectively referred to in this MD&A as "forward looking statements"). All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Radient anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements.

In some cases, forward-looking statements can be identified by the use of the words "will", "can", "possible", "may", "believe", "expect", "anticipate", "future", "typical", "opportunity", "continue", "should", "intend", "budget", "plan", "potential" and similar expressions. In particular, but without limiting the

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 3 of 27

foregoing, this MD&A contains forward-looking statements pertaining to the following: Radient's corporate structure; the Company's extraction methods; technology and intellectual property; Radient's corporate focus; business model and strategy; the Company's competitive position; predictions regarding competitor extraction technologies; the price of cannabinoids; the demand for cannabis based products; Radient's clients and their product offerings; Radient's partnerships and joint ventures; the Company's regulatory compliance procedures; Radient's research initiatives; the Company's intellectual property strategy; the Company's product offerings and the demand for same; market opportunities; the impact of COVID-19 on the Company's operations; Radient's production capacity and capability; the Company's expansion projects, including the specifications, timing and cost thereof; recurrence of certain expenditures; costs of production for industrial scale volumes; and liquidity and capital resources, including the Company's ability to generate sufficient amounts of cash through operations and financing activities.

This MD&A should be read in conjunction with the risk factors described in the "Risk Factor" section of Radient's Annual MD&A and the "Risk Factors" and "Introductory Notes – Cautionary Note Regarding Forward-Looking Information" sections of Radient's AIF.

By their nature, forward-looking statements are subject to numerous risks and uncertainties, including those discussed below. You are cautioned that the assumptions used in the preparation of forwardlooking statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Radient will derive from them. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.

Core Business and Strategy

Overview

The Company presents its results on a going concern basis. The continuing operations of the Company are dependent on funding provided by investors and realizing profits from products being commercialized. The Company's efforts are focused on financing its future requirements through a combination of debt and/or equity issuances. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms. This uncertainty may cast doubt about the ability of the Company to continue as a going concern. The interim condensed consolidated financial statements for the periods presented do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue in business as a going concern and that such adjustments could be material.

The Company has incurred significant losses to date. The net loss for the three and six months ended December 31, 2022 totaled \$1,355,209 and \$5,201,714, respectively (2021 – \$3,196,925 and \$6,829,139 , respectively) and as at December 31, 2022 the Company had a deficit of \$157,379,303 (March 31, 2022 - \$154,099,990). These balances indicate there is material uncertainty about the Company's ability to continue as a going concern.

At December 31, 2022, the Company had a working capital deficiency of \$38,317,780 (March 31, 2022 – \$35,100,888). The deficit balance indicates that there is material uncertainty about the Company's ability to continue as a going concern.

At December 31, 2022, the Company was in arrears with certain trade creditors, rent, severance, excise and commodity taxes payable, long-term debt, and lease liabilities. Subsequent to December 31, 2022, the

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 4 of 27

Company has continued to work on increasing revenues through product sales, potential financings and debt restructuring options to address its working capital deficiency. In addition, through a series of commercial transactions related to the recreational cannabis market in Canada, the Company has been actively growing its sales volumes since September 2020. These initiatives, coupled with reducing costs and debt restructuring, are part of the core strategy of the Company to reverse its working capital deficiency over the next years.

During the 2021 and 2022 calendar years, there continued to be a global pandemic outbreak of COVID-19. The actual and threatened spread of the virus globally had a material adverse effect on the global economy and specifically, the regional economies in which the Company operates. The pandemic resulted in a closure of the Company's facility for a period of time during the year and temporary and permanent layoffs of employees. Management has given consideration to the impact of COVID-19 on the Company and has concluded that the consolidated financial statements appropriately reflect and disclose management's best estimate and uncertainty regarding the impact of COVID-19 on the Company's future operations and financial results. The Company has recorded wage subsidies and rent subsidies from the Canadian and Germany governments COVID-19 programs. The rent subsidies were recorded in the general and administrative expense on the consolidated statement of operations and the wage subsidies were recorded proportionately to the salary expenses allocated to each of the cost of sales, general and administrative, production plant, research and process development, engineering, quality control and assurance, and business and corporate development on the consolidated statement of operations.

Radient was initially incorporated on June 12, 2001, pursuant to the provisions of the Company Act (British Columbia), transitioned pursuant to the provisions of the Business Corporations Act (British Columbia) on July 7, 2004, and was continued under the Canada Business Corporations Act on February 3, 2010. On May 22, 2014, pursuant to a plan of arrangement, Radient amalgamated with Madison Capital Corporation ("Madison"), a Capital Pool Company as defined in TSX Venture Exchange ("TSXV") Policy 2.4 – Capital Pool Companies ("Policy 2.4"), incorporated pursuant to the provisions of the Business Corporations Act (Alberta) on June 13, 2011 and continued under the Canada Business Corporations Act on May 14, 2014, forming a new entity called "Radient Technologies Inc." This transaction constituted the qualifying transaction of Madison in accordance with the requirements of Policy 2.4. Radient trades on the TSXV under the symbol "RTI" and on the OTCQX®Best Market ("OTC"), operated by OTC Markets Group under the ticker symbol "RDDTF".

In September 2021, the Company consolidated its locations for its head office, research and development lab, and its production facility and as of June 30, 2022, are located at 4035 – 101 St NW, Edmonton, Alberta, T6E 0A4 (the "Edmonton I /II Facility") and the registered and records office is located at 2900 – 550 Burrard Street, Vancouver, British Columbia, V6C 0A3. The Company has re-organized the location of its offices to reduce the overheads as a part of its cost reduction initiatives.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 5 of 27

The subsidiaries of the Company as at December 31, 2022, are as follows:

Name of entity	Ownership
Radient Technologies (Cannabis) Inc. ("RTC")	100%
Radient Technologies Innovations Inc. ("RII")	100%
1631807 Alberta Ltd. ("163 Alberta")	100%
Tunaaaaroom Extracts Inc. ("Tunaaaa")	100%

RTC, which operates the Company's Canadian cannabis business, was incorporated on February 20, 2018, and holds certain of the Company's Canadian cannabis-related licences. Radient owns 100% of 163 Alberta, which is the owner and landlord of various properties, including Radient's Edmonton production facility. Prior to May 3, 2018, Radient owned a 50% interest in 163 Alberta. RII was incorporated on October 12, 2018 and is intended to hold the Company's Canadian generated intellectual property. RTS was incorporated on January 29, 2019 and holds the Company's European investments (including MAG which was incorporated on February 21, 2019).

In July 2021, the Company announced that it was winding up its German operations at MAG. As a wholly owned subsidiary of RTS, MAG was fully consolidated at March 31, 2021. The Company deconsolidated MAG once the insolvency process had concluded and the entity was deconsolidated during the year ended March 31, 2022.

In October 2021, RTS filed for insolvency in Switzerland. The Company deconsolidated RTS once the insolvency process was closed and the entity was deconsolidated during the year ended March 31, 2022.

Radient has historically manufactured high-value natural ingredients for global customers in the food and beverage, nutraceuticals, pharmaceuticals and cosmetics and personal care industries. In the year ended March 31, 2017, the Company expanded its offerings to the fast-growing cannabinoids market utilizing its extraction platform to process and extract cannabinoids, including cannabidiol ("CBD") and tetrahydrocannabinol ("THC"), from cannabis biomass. The Company's core focus is on processing and manufacturing efforts in the cannabis industry for the near and mid-term. During the previous year the Company made the strategic decision to move away from the extraction as a service business model and focus exclusively on manufacturing and launching of finished branded retail products.

Background

Radient was founded in 2001 by Dr. Steven Splinter, its current Chief Technology Officer, and Vizon SciTec Inc., formerly BC Research Inc., to pursue commercial opportunities related to the patented platform natural product extraction technology, MAPTM or "Microwaved Assisted Process, for applications in the pharmaceutical, nutraceutical, food and cosmetic industries.

In the year ended March 31, 2018, the Company explored opportunities with Aurora Cannabis Inc. ("Aurora") which culminated in a Master Services Agreement ("MSA") finalized on November 6, 2017, pursuant to which the Company agreed to perform certain services for Aurora using its proprietary extraction technology, in relation to supply of standardized cannabis extracts. The MSA has an initial term of five years, with an option for Aurora to renew the agreement for an additional five years. As a part of the partnership, Aurora has invested approximately \$14.0 million in the Company through a combination of convertible debentures (that converted into equity in fiscal 2018), private placements and warrant exercises. In connection with the MSA, Radient and Aurora entered into an Investor Rights Agreement that provides Aurora with certain rights to participate in future offerings, providing Aurora with the option to expand its ownership in the Company up to 19.99%. As of December 31, 2022, Aurora held 37,643,431 common shares of Radient representing approximately 7.1% of the issued and outstanding common shares and

6.1% of the issued and outstanding common shares on a fully diluted basis. During the quarter ended December 31, 2020, Aurora ceased to have significant influence over the Company, as a result of no longer having a director on the Company board and their ownership dropping below 10% of the Company and therefore were no longer considered a related party to the Company. As of December 31, 2022, Aurora was not a related party to the Company.

The Aurora MSA was the precursor of the Company's entry into the cannabis space and its focus on establishing appropriate production facilities, required licences and human capital to deliver on the MSA.

Business Model and Corporate Focus

Cannabis Activities

Until fiscal 2020, Radient's core revenue generation activities related to cannabis activities were primarily focused on two areas 1) extraction services for the extraction of cannabinoids for third parties, and 2) manufacturing of cannabis extracts, concentrates and oils for sale to Licensed Producers. During fiscal 2021, the Company began to transition its focus to the formulation, manufacturing and launching of unique value-added cannabis product SKUs into the cannabis 2.0 market. Since that time, the Canadian cannabis market continued to experience increasing pricing pressure on the sale of bulk cannabis extracts and distillates and an increasing market supply of cannabis resulting in a continued decline in dried cannabis pricing. The Company therefore made the strategic decision to move away from the extraction as a service business model and focus exclusively on white label manufacturing and manufacturing and launching of finished branded retail products along with bulk extractions based on economic value creation with high value premium extracts using hydrocarbons.

As part of its strategic re-focus, Radient has in-licensed a portfolio of nationally recognized brands of premium cannabis extracts targeting adult-use recreational and medical cannabis consumers in Canada. Radient focuses on manufacturing and distributing these premium cannabis extract and concentrate product offerings, marketed under brands that Canadian cannabis consumers know and trust and that have loyal online and retail followings nationally.

Canadian Requirements pursuant to the Cannabis Act and Cannabis Regulations (SOR/2018-144)

Standard Processing Licence

Radient was issued a Standard Processing Licence on February 1, 2019, by the Security Division of the Cannabis Legalization and Regulation Branch of Health Canada. This licence along with the amendments outlined below allow the Edmonton I and II facilities to:

• possess cannabis;
• produce cannabis, other than to obtain cannabis by cultivating propagation or harvesting it; and
• sell cannabis, in accordance with subsection 17(5) of the Cannabis Regulations.

Subsection 17(5) of the Cannabis Regulations allows for a standard processor to sell and distribute cannabis to a holder of the licence for processing, analytical testing, research or cannabis drug licence. The licence also allows for conducting research at the Edmonton I and II manufacturing facility so long as this research is within the scope of the current activities being conducted at Edmonton I and II.

With receipt of this licence, commercial processing of cannabis biomass to extract cannabinoids including CBD and THC began in March 2019 at Radient's Edmonton I manufacturing facility.

On July 14, 2019, Radient submitted an amendment to Health Canada for the addition of a new secure storage area within the existing building perimeter. This amendment was granted on October 15, 2019.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 7 of 27

On November 13, 2019, Radient submitted an amendment to Health Canada for the addition of Edmonton II as a cannabis processing site within the existing building perimeter. This amendment was granted on February 1, 2020.

On December 23, 2019, Radient submitted an amendment to Health Canada for the addition of sales to its Standard Processors Licence. This amendment was granted on June 26, 2020. Subsection 17(5) of the Cannabis Regulations allows for the holder of a Standard Processing licence whose licence authorizes the sale of cannabis to conduct the following activities:

• sell and distribute cannabis products to a holder of a licence for sale, or a person that is authorized under a provincial Act, to sell cannabis; and
• send and deliver cannabis products to the purchaser of the products at the request of a person that is authorized under a provincial Act, to sell cannabis or a holder of a licence for sale.

On October 28, 2021, Radient received a Sale for Medical Purposes License from Health Canada, allowing the Company to supply and sell cannabis products to patients who hold prescriptions from authorized healthcare providers. On November 26, 2021, Radient received an amendment to its Standard Processing License for the sale of dried and fresh cannabis products to provincially and territorially authorized retailers and holders of a licence for sale for medical purposes.

Research and Analytical Licences

The Company's Roper Road Facility held both Research and Analytical Testing Licences. During fiscal 2022, the Company reorganized its office locations to 4035 – 101 St NW, Edmonton, Alberta, T6E 0A4 (the "Edmonton I / II Facility") and so ceased activities related to the Roper Road Research and Analytical Licences. The Edmonton I / II manufacturing facility continues to hold an Analytical Testing Licence. The Analytical Testing Licence under the Cannabis Act authorizes the holder to possess cannabis and alter the chemical or physical properties of cannabis for the purposes of testing.

Canadian Securities Regulation Regarding U.S. Cannabis Activities

Currently, certain U.S. states permit the use and sale of cannabis (sometimes referred to as marijuana) within state-specific regulatory frameworks notwithstanding that marijuana continues to be listed as a controlled substance under U.S. federal law. This creates a conflict between state and federal law. The U.S. Department of Justice has communicated that it will generally not enforce federal prohibitions on U.S. states that have authorized this conduct if such state has implemented a strong and effective regulatory program. As this federal guidance is subject to change or rescission risk and uncertainty exists for any issuer undertaking U.S. marijuana-related activities with consequences being potentially material and pervasive.

On October 16, 2017, the Canadian Securities Administrators, through Staff Notice 51-352 Issuers with U.S. Marijuana-Related Activities announced specific disclosure expectations of issuers that currently have, or are in the process of developing, marijuana-related activities in the U.S. states where such activity has been authorized by such state's regulatory framework.

Further, the Toronto Stock Exchange ("TSX") published Staff Notice 2017-0009 with respect to sections 306 and 325, Minimum Listing Requirements and Management and Part VII, Halting of Trading, Suspension and Delisting of Securities (collectively, the "Requirements") to provide clarity regarding the application of the Requirements to applicants and listed issuers in the marijuana sector. Although the TSX acknowledges the current state/federal circumstances and the guidance concerning enforcement of the provisions, it concludes that the guidance does not have force of law and can be revoked or amended at any time. As a

result, the TSX has stated that issuers with ongoing marijuana-related business activities in the U.S. are not complying with the Requirements of the TSX Company Manual.

At present, Radient is not conducting any U.S. marijuana-related activities and the Company is in full compliance with Canadian securities regulatory requirements.

Nicotine Reduction Activities

Radient continues to hold intellectual property relating to nicotine reduction and the Company is continuing to explore partnerships that would allow for further development and to monetize the research and development work that has been completed. Work done to date demonstrates the ability to significantly reduce nicotine in tobacco while retaining its appearance and organoleptic properties. Further research and development will be determined by the extent of any future partnership.

Outlook and Developments

In the three months ended December 31, 2022, Radient recorded \$1,029,019 (three months ended December 31, 2021 - \$1,576,616) of revenue from its manufactured products. Over the past two years, the company has successfully launched a range of Cannabis 2.0 products in Canada utilizing the Company's Sales Licenses in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, and Nova Scotia, and the territories of Nunavut and the Northwest Territories. This is a part of a broad strategy to introduce Branded retail products in the growing recreational market for Cannabis 2.0 products in Canada. For the three months ended December 31, 2022, the sales volumes were driven by the manufacturing of products in the concentrate and vapes categories, and the winding down of the pre-roll program. The market for premium concentrates is showing signs of adoption and growth and Radient is well positioned to continue to create a market presence and licensing establish brands. During the period, Radient also continued to restructure its operations through a combination of wide scale cost reductions and the halting of expansion initiatives.

The Company anticipates maximizing the revenue potential of its product pipeline through distribution and sales partnerships with licensed producers and brand owners, including its in-licensed nationally recognized brands of premium cannabis extracts. These include previously announced collaborations and strategic license agreements with legacy brands including Tunaaaaroom, Atomic EH, and HighGrade Supply to target the launch of various adult-use recreational and medicinal cannabis concentrate products including distillate dabs, vapes, BHO extracts, live resin, live resin, THC a diamonds, shatter, caviar, and terp sauce, as well as minor cannabinoid isolates. To date the Company's registrations have been approved in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Nunavut and the Northwest Territories. Future products which the Company may have in production include dissolvable powders, including flavored drink juice crystals, hot chocolate and edibles.

On January 29, 2022, the Company announced that it had successfully completed its acquisition of 100% of the common shares of Tunaaaaroom Xtracts Inc. Tunaaaa has developed the genetics for over 1000 high-quality cannabis strains containing proprietary terpene profiles. Through this licensing deal, Radient gained access to Tunaaaa's specific genetics and has engaged Tunaaaa to help drive product development. To date, Radient has successfully launched several TRX-branded distillate dabs and vape extract products with unique terpene profiles into the Canadian marketplace and plans additional launch of retail brands in various product categories, including resin, THCa diamonds, shatter, caviars, live rosin and terp sauce.

During the year ended March 31, 2022, Radient also completed the installation of a custom hydrocarbon system designed for high throughput and purity as a part of an exclusive licensing and extraction agreement with HighGrade Supply ("HighGrade"). The HighGrade platform can process up to 1,100 kgs of biomass

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 9 of 27

daily between hydrocarbons and other solvents, with the potential for growth expansion. In June 2022, Radient announced commercial production and sales of Cannabis 2.0 products from this system that includes distillates and isolates of products including THCa, Crystalline, Delta 8THC, CBG, CBN and hydrocarbon products such as High Cannabinoid Full Spectrum Extracts (HCFSE), High Terpene Full Spectrum Extracts (HTFSE), Crumble, Shatter, Live Resin, Budder, and Terp Diamonds. Commercial sales for these product categories only commenced in June 2022 due to operating bottlenecks and working capital challenges in calendar Q1 2023. These factors caused delays in launching these products to provinces, with commercial sales commencing only in July 2022, approximately three quarters behind schedule. Radient expects a ramp-up of HighGrade product sales, starting mostly in Q4 2023 and onwards if granted sufficient working capital.

The Company is also exploring white label opportunities for the export of medical cannabis products to authorized jurisdictions.

Management changes

On September 1, 2022, the Company announced Francesco Ferlaino had resigned as Chair of the Board and was replaced by Jocelyne Lafrenière as interim Chair of the Board. The Company also announced the appointment of Danesh Varma to the Board of Directors on September 1, 2022. On October 28, 2022, the Company announced that Harry Kaura had resigned as CEO and Board Director and was replaced by Steven Splinter as the interim CEO. The Company also announced the appointment of Dimitris Tzanis to the Board of Directors on October 28, 2022.

Commercialization of New Cannabinoid Ingredients and Formulations

Leveraging its strong natural health product formulation expertise, Radient's product development team has developed a broad range of proprietary cannabinoid-based product formulations for both medical and consumer markets. Attention has been given to the development of formulations that demonstrate evidence-backed physico-chemical stability, ensuring the highest quality and dosing consistency of final forms that will fully meet the industry's current strict regulatory framework. Examples include cannabis tinctures; water-soluble and water-dispersible formulations for beverage applications; solid and liquid forms suitable for a wide range of cannabis edible products; standardized powders for tablets, capsules, sachets and lozenges; formulated liquids for vaporizing devices; and various topical formulations including creams, ointments, lotions and gels.

Financing Initiatives

On December 31, 2021, Radient closed a non-brokered private placement of 20,880,714 common shares at a price of \$0.06 per share for gross proceeds of \$1,252,843. Each unit consists of one common share of the Company and one common share purchase warrant, with each warrant entitling the holder to purchase one common share of the Company at \$0.10 per share at any time prior to June 30, 2023. Certain officers and directors of the Company purchased 12,014,988 units as part of this private placement for gross proceeds of \$720,899. All securities issued in connection with the private placement are subject to a statutory hold period expiring on May 1, 2022.

On July 6, 2022, the Company closed its first tranche of a private placement. Under the first tranche, the Company issued 9 units at a price of \$40,000 per unit for gross proceeds of \$360,000. Each unit consists of 1,000,000 common shares of the Company and 500,000 common share purchase warrants, with each warrant entitling the holder to purchase one common share of the Company at \$0.07 per share for 36 months after closing. The Company paid finder's fees of \$28,800 in cash and issued 0.72 units in relation to the private placement.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 10 of 27

Efforts are underway by the Company to look at a range of options including additional equity issuances, convertible secured notes and restructuring of its liabilities to provide liquidity to bridge the negative working capital position at December 31, 2022.

As of the date of this MD&A, \$15.4 million of liabilities with trade creditors are overdue by 120 days or greater. Radient is actively working with its creditors to offset this situation and recognizes the associated liquidity risk to the Company if the financing initiatives do not materialize.

Expansion Projects

All capital spending on expansion has been halted. On August 26, 2022, a secured lender issued a demand notice to the Company for payment of approximately \$10.5 million, plus accrued costs and additional interest to the date of payment pursuant to the terms of a secured loan facility guaranteed by the Company. On February 8, 2023, the secured lender obtained a redemption order from the Court to list for sale the mortgaged property under certain conditions. On March 21, 2023, the secured lender was granted a Limited Receivership Order to sell equipment not required for operations.

In July 2021, the Company announced that it was winding down operations in MAG and filing for insolvency for the MAG entity. The MAG entity was deconsolidated from the consolidated financial statements during the year ended March 31, 2022.

Licensed space in Edmonton II is now being utilized for manufacturing and packaging activities, both critical to the Company's white label and branded retail product offerings. Manufacturing space has been redesigned for flexibility that will allow for multi-use rooms and higher utilization rates. Additional equipment has been installed into the plant to produce proprietary powder and liquid-based formulations, which will allow the Company to offer various types of powder and liquid edible products, including formulations that incorporate nano emulsification and water compatibility. These proprietary formulations have been developed and tested internally. In addition, Radient has re-tooled its extraction capabilities to add alternative extraction methods, including a customized hydrocarbon extraction platform for premium and high concentrate cannabis extracts.

Licensing Agreement with Atomic Eh

On May 3, 2021, Radient signed a definitive licensing agreement with Atomic Eh to launch its first Indigenous cannabis brand and a dedicated product line targeting under-served indigenous communities in the cannabis industry. Radient is working exclusively with Atomic Eh to roll out cannabis 2.0 products, including BHO extracts, vape cartridges, dry flower, edibles, and solventless extracts using Radient's distribution channels. According to the agreement, Radient will manufacture between 25,000 and 50,000 units of product per month, to be sold under the Atomic Eh brand, providing Radient with additional product offerings on retail shelf space. This agreement will result in the distribution of Indigenous brands nationwide and provide access to high quality cannabis remedies for several Indigenous communities. Furthermore, this agreement will give Indigenous communities a platform to share their cannabis remedies nationally, forging a symbiotic relationship between the two companies.

Licensing Agreement with HighGrade Concentrates

On May 5, 2021, Radient announced an exclusive licensing and extraction agreement with HighGrade Concentrates ("HighGrade") to manufacture a wide range of premium concentrates for sale into both the medicinal and rapidly growing recreational cannabis markets in Canada. The agreement grants Radient the exclusive rights to the HighGrade technology, HighGrade IP, and an established cannabis culture legacy brand.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 11 of 27

Under the terms of the agreement, HighGrade provides expertise, technical guidance, consultation, labour and knowledge for Radient to produce an array of high-quality cannabis 2.0 products. Radient in turn makes use of its Standard Processing and Sales Licenses with its Quality Systems to rapidly launch products while meeting all of Health Canada's requirements under the Cannabis Act and Cannabis Regulations. Through this agreement, Radient now provides a wide range of affordable but top-quality cannabis products to the recreational, medicinal, and wholesale B2B markets.

Results of Operations

Summary of Results by Quarter

Quarter ended	December 31, 2022	September 30, 2022	June 30, 2022	March 31, 2022
Revenues	\$1,029,019	\$1,351,082	\$569,414	\$198,796
Loss before other income and expenses	(1,035,788)	(2,317,951)	(1,730,111)	(3,048,540)
Loss per share, before other income
and expenses (basic and diluted)	(0.00)	(0.00)	(0.00)	(0.01)
Net loss	(1,355,209)	(2,333,797)	(1,512,708)	(6,044,174)
Net loss per share (basic and diluted)	(\$0.00)	(\$0.00)	(\$0.00)	(\$0.01)
Weighted average number of common
shares outstanding	530,868,021	539,378,891	432,637,825	432,637,825
Total assets	\$27,994,040	\$28,095,404	\$28,035,817	\$27,734,541
Long term liabilities	686,940	686,940	87,543	160,817
Quarter ended	December 30, 2021	September 30, 2021	June 30, 2021	March 31, 2021
Revenues	\$1,576,616	\$1,097,147	\$749,222	\$532,770
Loss before other income and expenses	(2,317,506)	(1,492,419)	(2,004,027)	(3,864,680)
Loss per share, before other income
and expenses (basic and diluted)	(0.01)	0.00	(0.01)	(0.01)
Net loss	(3,196,925)	(1,638,218)	(1,993,996)	(22,170,866)
Net loss per share (basic and diluted)	(\$0.01)	\$0.00	(\$0.01)	(\$0.07)
Weighted average number of common
shares outstanding	432,637,825	432,637,825	432,546,200	358,758,721
Total assets	\$28,860,867	\$28,626,728	\$28,006,086	\$29,294,671
Long term liabilities	0	330,080	342,926	369,355

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 12 of 27

Consolidated Statements of Operations and Comprehensive Loss

Radient Technologies Inc.

Interim condensed consolidated statements of operations and comprehensive loss

	Three months ended December 31,		Nine months ended December 31,
	2022	2021	2022	2021
Revenues
Manufactured products	\$ 1,029,019	1,576,616	\$ 2,949,515 \$	3,422,985
Manufacturing services	-	-	-	-
	1,029,019	1,576,616	2,949,515	3,422,985
Cost of sales
Manufactured products	756,710	1,342,780	2,738,022	2,900,065
	756,710	1,342,780	2,738,022	2,900,065
	272,309	233,836	211,493	522,920
Expenses
General and administrative	312,496	872,538	1,642,025	1,997,930
Financing fees	725,518	365,155	1,832,290	1,131,577
Depreciation and amortization	66,626	409,313	973,930	1,171,561
Production plant	64,096	780,907	430,788	1,404,856
Engineering	-	6,844	1,097	23,389
Process development	23,300	23,540	27,041	230,782
Research and development	7,864	(34,141)	45,344	80,353
Quality control and assurance	38,563	50,980	122,539	108,409
Business development	69,634	75,206	220,289	181,424
Corporate development	-	1,000	-	6,591
	1,308,097	2,551,342	5,295,343	6,336,872
Loss before other expenses	(1,035,788)	(2,317,506)	(5,083,850)	(5,813,952)
Other income (expenses)
Share-based payments (Note 7)	(1,521)	(12,098)	(8,561)	(30,522)
Gain on equity settled payables	-	-	-	36,139
Gain on modification of long-term debt (Note 6)	-	(465,173)	248,412	(595,108)
Loss on disposal of property and equipment	-	(270)	-	(17,864)
Impairment of inventory	(295,000)	-	(295,000)	-
Foreign exchange (loss) gain	(299)	88,279	(15,103)	110,708
Interest and other income	(22,601)	(34,840)	(47,612)	(63,223)
Loss on abandonment of lease	-	(455,317)	-	(455,317)
	(319,421)	(879,419)	(117,864)	(1,015,187)
Net loss and comprehensive loss	\$ (1,355,209) \$	(3,196,925)	\$ (5,201,714) \$	(6,829,139)
Basic and diluted loss per common share	\$ \$ -	(0.01)	(0.01) \$ \$	(0.02)
Weighted average number of common shares outstanding
Basic and diluted	530,868,021	432,637,825	530,868,021	432,592,263

See accompanying notes to the interim condensed consolidated financial statements

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 13 of 27

Manufactured products

	Quarter ended December 31,		Nine months ended December 31,
	2022	2021	2022	2021
Revenues	\$ 1,029,019 \$	1,576,616	\$ 2,949,515 \$	3,422,985
Cost of sales
Inventories, supplies and materials	621,487	965,111	2,172,629	2,156,245
Salaries and benefits	28,423	143,324	70,859	318,888
Overhead allocations	99,420	58,744	351,042	103,269
Third party testing	4,016	28,499	21,128	64,568
Equipment rental	(51,500)	4,148	(39,500)	4,148
Consulting	23,220	130,762	75,176	221,057
Transportation	31,642	12,192	86,688	31,890
Total cost of sales	\$ 756,708 \$	1,342,780	\$ 2,738,022 \$	2,900,065
	\$ 272,311	\$ 233,836	\$ 211,493	\$ 522,920

A further break-down of Radient's revenues and cost of sales from manufactured products follows:

Revenue for the three and nine months ended December 31, 2022 was \$1,029,019 and \$2,949,515 respectively, compared to \$1,576,616 and \$3,422,985, respectively, for the same period in the prior year.

During the quarter ended December 31, 2022, the Company made the decision to terminate the pre-roll production line which was not profitable. The Company has decided to concentrate its resources on the HighGrade hydrocarbon production line, which is now fully operational and is more profitable with higher margin rate.

Prior to the HighGrade hydrocarbon production line being fully operational, the Company was forced to purchase bulk ingredients from other Licensed Producers to fill orders as opposed to manufacturing internally, resulting in a higher cost of sales. The Company is continuing to work to increase sales of its products and to reduce cost of goods sold.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 14 of 27

General and Administrative

A further break-down of Radient's general and administrative expenses are as follows:

	Quarter ended December 31,		Nine months ended December 31,
	2022	2021	2022		2021
Consulting fees	\$ 9,000 \$	311,625	\$ 758,606 \$		661,500
Salaries and benefits	77,428	106,268	225,905		254,315
Professional fees	89,301	119,499	\$276,786		399,612
Insurance	56,720	165,565	141,406		249,648
Public company compliance	12,236	70,739	27,452		88,181
Rent and utilities	13,434	35,643	45,436		130,160
Computer software	7,566	4,540	20,017		95,660
Travel	11,405	5,930	11,606		14,649
Office	24,587	22,999	63,387		60,478
Investor relations	-	(6,388)	-		-
Director's Fees	12,625	21,250	\$66,644		21,250
Maintenance	120	2,670	\$360		9,375
Promotion	-	11,240	\$4,420		12,144
Supplies	(1,926)	907	\$0		907
Other	-	51	-		51
Total general and administrative	\$ 312,496 \$	872,538	\$ 1,642,025 \$		1,997,930

General and administrative expenses decreased by \$560,042 and \$355,905, respectively, for the three and nine months ending December 31, 2022, compared to the same period in the prior year, with variances in several cost categories. The Company implemented significant cost cutting and control measures during the quarter and nine months ended December 31, 2022, resulting in reductions in many cost categories.

Financing Fees

A further break-down of Radient's financing fees are as follows:

		Quarter ended December 31,		Nine months ended December 31,
	2022	2021	2022	2021
Amortization of financing costs on long-term debt	-	4,723	0	33,056.00
Interest on long-term debt	384,735	316,562	947,417	1,028,449
Interest on lease liabilities	6,603	10,258	20,163	51,536
Interest on short-term borrowings	175,396	102,183	395,926	331,810
Accretion of interest	-	(74,671)	0	(323,435)
Other	158,784	6,100	468,784	10,161
	\$ 725,518	\$ 365,155 \$	1,832,290	\$ 1,131,577

Financing fees increased by \$360,363 and \$700,713, respectively, for the three and nine months ended December 31, 2022, compared to the same period in the prior year. This increase is mainly due to interest on trade payables, short-term borrowings, facility construction liabilities and long-term debt.

The Company has loans with various lenders; a mortgage with the Bank of Nova Scotia bearing interest at the greater of 9.99% or prime rate plus 7.54% per annum with monthly interest only payments and principal maturing November 1, 2022; a loan bearing interest at the Bank of Canada policy interest rate plus 3% with variable payments maturing June 1, 2025; a loan bearing interest at 5.80% with monthly payments of \$9,327 maturing October 1, 2021; and a loan payable bearing interest at 4.55% with monthly payments of \$2,586 maturing March 1, 2023.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 15 of 27

Engineering

A further break-down of Radient's engineering expenses are as follows:

	Quarter ended December 31,		Nine months ended December 31,
	2022	2021	2022	2021
Salaries and benefits	\$ - \$	(409)	1,097 \$	8,912
Rent and utilities	-	6,182	-	10,383
Travel	-		-	1,170
Maintenance	-	145	-	145
Computer software	-	926	-	2,779
Total Engineering	\$ - \$	6,844 \$	1,097 \$	23,389

Engineering expenses decreased by \$6,844 and \$22,292, respectively, for the three and nine months ended December 31, 2022, compared to the same period in the prior year. The decrease is due to the layoffs of all non-essential staff as well as cessation of extraction operations.

Research and Development

A further break-down of Radient's research and development expenses are as follows:

R&D
	Quarter ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Salaries and benefits	\$ 7,864 \$		(34,141)	\$	45,344 \$		74,342
Consulting fees	-	\$	-		-		4,841
Travel	-		-		-		1,170
Total research and development	\$ 7,864 \$		(34,141)	\$	45,344 \$		80,353

Total research and development expenses for the three months ended December 31, 2022 amounted to \$7,864 compared to a negative balance of \$34,414 in the same period in the prior year, which was due to a reversal of expenses.

Total research and development expenses decreased by \$35,009 for the nine months ended December 31, 2022 compared to the same period in the prior year. The decrease was due to staff reductions and the closure of the Company's Roper Road laboratories.

Process Development

A further break-down of Radient's process development expenses are as follows:

	Quarter ended December 31,			Nine months ended December 31,
	2022		2021		2022		2021
Salaries and benefits	23,300		15,788		27,041		68,522
Consulting fees	-		-		-		1,010
Rent and utilities	-		1,819		-		516
Maintenance	-		-		-		6,959
Product development	-		(1)		-		119,439
Supplies and safety	-		5,934		-		34,336
Total process development	\$ 23,300 \$		23,540	\$	27,041 \$		230,782

Total process development expenses decreased by \$240 and \$203,741, respectively, for the three and nine months ended December 31, 2022, compared to the same periods in the prior year. Due to limited activities in this department, the only expenses that remain for the three and nine months ended December 31, 2022 are salaries and benefits,

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 16 of 27

Production Plant

A further break-down of Radient's production plant expenses are as follows:

	Quarter ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Salaries and benefits	\$ 32,433 \$		326,518	\$	65,105 \$		401,807
Computer software	-		3,773		853		11,925
Rent and utilities	34,510		29,766		207,587		26,969
Maintenance	(7,758)		9,144		(15,101)		17,180
Office	119,636		(95,391)		187,954		8,657
Production materials	-		(1,138)		-		1,467
Supplies	49,093		70,004		108,672		138,427
Security	-		-		-		84
Marketing and sales	-		101,491		-		451,103
Insurance	8,935		136,418		43,529		136,418
Professional fees	-		-		-		8,000
Consulting services	(187,450)		154,650		(187,450)		154,650
Promotion	-		9,497		2,135		9,497
Travel	1,150		2,925		3,957		5,422
Product development	-		33,250		-		33,250
Equipment and rentals	13,547		-		13,547		-
Total production plant	\$ 64,096 \$		780,907	\$	430,788 \$		1,404,856

Production plant expenses decreased by \$716,811 and \$974,068 for the three and six months ended December 31, 2022, respectively, compared to the same period in the prior year with variances in several cost categories. The Company continues to monitor costs closely, and this resulted in less marketing and sales expenses. Salaries and benefits decreased during the period due to staff reductions and the hiring of temporary workers to do filling and packaging. A consulting services accrual was adjusted, resulting in a credit balance.

Quality Control and Assurance

A further break-down of Radient's quality control and assurance expenses are as follows:

	Quarter ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Salaries and benefits	\$ 14,954 \$		29,290	\$	63,903 \$		7,724
Supplies	-		(15,619)		1,903		2,182
Rent and utilities	4,699		24,000		17,338		23,845
Maintenance	-		-		-		1,124
Office	-		544		-		2,469
Consulting fees	-		-		-		50,000
Third party testing	18,910		11,694		39,395		19,994
Production materials	-		1,071		-		1,071
Total quality control and assurance	\$ 38,563 \$		50,980	\$	122,539 \$		108,409

Quality control and assurance expenses increased by \$14,130 for the nine months ended, December 31, 2022, compared to the same period in the prior year. The increase was primarily due to hiring back several layed-off staff and less reliance on consultants. The company continues to monitor costs closely, and this resulted in a decrease of \$12,417 in the quality and assurance expenses for the three months ended, December 31, 2022, compared to the same period in the prior year.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 17 of 27

Business Development

A further break-down of Radient's business development expenses are as follows:

	Quarter ended December 31,			Nine months ended December 31,
	2022		2021		2022		2021
Salaries and benefits	62,303		58,702		213,754		147,514
Consulting fees	7,299		-		9,577		3,750
Promotion	-		820		-		3,766
Travel	-		15,684		-		26,394
Office	32		-		32		-
Insurance			-		(3,074)		-
Total business development	\$ 69,634 \$		75,206	\$	220,289 \$		181,424

Business development expenses increased by \$38,865 for the nine months ended December 31, 2022, compared to the same period in the prior period. This increase was due to the Company's efforts to expand its sales to new areas and grow its revenues. The company continues to monitor costs closely, and this resulted in a net decrease of \$5,572 in the expenses for the three months ended, December 31, 2022, compared to the same period in the prior year.

Corporate Development

A further break-down of Radient's corporate development expenses are as follows:

	Quarter ended December 31,			Nine months ended December 31,
	2022	2021		2022	2021
Promotion	-	-	\$	-	4,419
Professional fees	-	-	\$	-	1,172
Travel	-	1,000		-	1,000
Total corporate development	\$ - \$	1,000	\$	- \$	6,591

Total development expenses decreased by \$1,000 and \$6,591, respectively, for the three and nine months ended December 31, 2022, compared to the same period in the prior year, mainly due to a reduction in spending on corporate development in fiscal year 2023.

Share-Based Payments

Share-based payments include vested amounts which relate to stock option grants previously approved as well as amounts related to new grants approved during the period as those grants begin to vest. The following chart details the expense as it arises from each grant summarized by grant date.

	Quarter ended December 31					Nine months ended December 31,
Grant date		2022		2021		2022		2021
11 février 2021	\$	-	\$	-	\$	-	\$	-
October 9, 2020		1 521		6 765		7 609		10 296
May 28, 2020		-				982		9 570
October 23, 2019		-		3 495 1 838				5 515
June 5, 2019		-		-				1 508
June 4, 2018								3 633
Total share-based payments	\$	1 521	\$	12 098	\$	8 561	\$	30 522

Management's Discussion and Analysis Three months ended September 30, 2022

Radient Technologies Inc.

Page 18 of 27

	31-Dec-22	March 31, 2022
Non-current assets	\$ 23,988,989	\$ 24,831,611
Current assets	4,005,051	4,029,256
Current liabilities	(42,322,831)	(36,692,687)
Total assets less current liabilities	\$ (14,328,791)	\$ (7,831,820)
Non-current liabilities	686,940	-
Shareholders' deficiency	(15,015,731)	(7,660,737)
	\$ (14,328,791)	\$ (7,660,737)

Liquidity and Capital Resources

For more information on key cash flows related to operations, investing and financing activities during the quarter, refer to the "Cash Flow Highlights" discussion below.

The Company's objective when managing its liquidity and capital resources is to safeguard its ability to continue as a going concern and maintain sufficient liquidity to support financial obligations when they come due while executing operating and strategic plans. The Company manages liquidity risk by monitoring its operating requirements and preparing budgets and cash flow forecasts to identify cash flow needs for general corporate and working capital purposes. Radient's ability to fund its operating requirements depends on future operating performance and cash flows, which are subject to economic, financial, competitive, business and regulatory conditions, and other factors, some which may be beyond Radient's control.

The Company's primary short-term liquidity needs are to fund its current operations, payments to creditors, debt repayments and lease payments. Radient's medium-term liquidity needs primarily relate to debt repayments and lease payments. The Company's long-term liquidity needs primarily relate to potential strategic plans.

Radient's business is subject to risks and uncertainties that could significantly impair Radient's ability to raise funds or to generate profits sufficient to meet future obligations, operational, or development needs. See "Risk Factors" in this MD&A for information on the risks and uncertainties that could have a negative effect on Radient's liquidity.

In an effort to manage liquidity prudently while the Company moves toward profitability and positive cash flow, Radient has taken the following steps to re-position Radient for long term success:

• Winding down its German entity and operations;
• Winding down its pre-roll program;
• Streamlined operations to support the Company's increased focus on premium extract products;
• Focused its business development efforts on sales of premium extract products and B2B sales of bulk premium extracts;
• Continued to review operating expenses to determine where economies can be realized with significant reductions having taken place as at the date of this MD&A; and

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 19 of 27

• Actively pursuing long-term lending alternatives, including efforts to look at a range of options including additional equity issuances, convertible secured notes and funding options backed by trade receivables; and
• Exploring potential debt-restructuring options and alternatives.

Significant uncertainty exists in the Canadian cannabis industry. This uncertainty revolves around the introduction of cannabis 2.0 products, industry inventory levels and difficult public markets restricting the ability of industry participants to raise equity. In the past years, COVID-19 introduced further uncertainties in both public equity markets and traditional lending markets. Both have negatively impacted the Company's operations and the Company's ability to raise additional financing.

In addition to the financing initiatives, efforts are underway to look at a range of options including additional equity issuances and restructuring of liabilities to provide liquidity to bridge the negative working capital position. As of the date of this MD&A, \$15.4 million of balances owed to trade creditors are overdue by 120 days or greater.

Certain of the Company's creditors are pursuing legal recourse for the amounts outstanding. The Company has been able thus far to negotiate settlements with the creditors on a case-by-case basis. The Company, as at December 31, 2022, has an unpaid amount of \$5.2 million (excluding accrued interest) to its general contractor for the construction of its Edmonton III facility. In support of the Company and its efforts to secure additional financing the general contractor has been granted security on the Company's Edmonton I/II facility and its Edmonton III facility.

Going Concern Uncertainty

The Company's consolidated financial statements were prepared on a going concern basis, however, Radient currently has insufficient cash to fund its operations for the next 12 months. Whether and when the Company can attain profitability and positive cash flows is uncertain. These uncertainties cast significant doubt upon the Company's ability to continue as a going concern. See "Core Business and Strategy – Overview".

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 20 of 27

Cash Flow Highlights

The table below summarizes the Company's cash flows for the year ended:

	December 31, 2022	December 31, 2021
Cash, beginning of year	\$ 31,878	\$ 485,544
Cash used in operating activities	(169,590)	(596,753)
Cash provided by financing activities	245,605	1,776,641
Cash used in investing activities	-	(344,407)
Net increase (decrease) in cash during the period	76,015	835,481
Cash, end of period	\$ 107,893	\$ 1,321,025

Cash used in operating activities for the nine months ended December 31, 2022, was \$169,590 representing a decrease of \$427,163 compared to the same period in the prior year. This decrease is mainly due to less cash used for operations. The net loss after given adjustments to non-cash payments have decreased by \$793,318 and the change in non-cash working capital has decreased by \$366,155 compared to the same period in the prior year.

Cash provided by financing activities for the nine months ended December 31, 2022, was \$245,605 representing a decrease of \$1,531,036 compared to the same period in the prior year. The decrease in mainly due to the fact that the proceeds from brokered placement decreased by \$892,843, the promissory notes received decreased by \$300,033, the shares for debt decreased by \$222,827, the repayment of longterm debt increased by \$57,895 and the share issuance costs increased by \$56,800 in the nine months ended December 31, 2022.

No cash was used in investing activities for the nine months ended December 31, 2022.

Contractual Obligations and Commitments

The Company has entered into various non-cancellable commitments with contract terms ranging between one and five years as follows:

		March 31, 2022
Capital expansion projects	\$	2022 \$ 1,340,542	1,340,542
Leases not yet commenced		130,500	130,500
Variable lease payments for lease liabilities		978,046	1,183,003
Network services contracts		36,342	7,568
Purchase and retrofitting of equipment		89,083	89,083
Maintenance contracts		-	12,567
Direct materials		570,000	570,000
	\$	3,144,513 \$	3,333,263

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 21 of 27

	< 1 year	1 to 3 years	4 to 5 years >5 years		Total
Accounts payable and accrued liabilities	\$ 23,294,385	\$ -	\$ -	\$ -	\$ 23,294,385
Facility construction liabilities	6,139,757	-	-	-	6,139,757
Short-term borrowings	1,245,000	-	-	-	1,245,000
Long-term debt	10,759,774	-	-	-	10,759,774
Lease liabilities	883,915	686,940	-	-	1,570,855
Balance December 31, 2022	\$ 42,322,831	\$ 686,940	\$ -	\$ -	\$ 43,009,771
Accounts payable and accrued liabilities	\$ 18,192,063	\$ -	\$ -	\$ -	\$ 18,192,063
Facility construction liabilities	6,015,277	-	-	-	6,015,277
Short-term borrowings	1,245,000	-	-	-	1,245,000
Long-term debt	10,809,814	-	-	-	10,809,814
Lease liabilities	1,437,349	160,817	-	-	1,598,166
Balance March 31, 2022	\$ 37,699,503	\$ 160,817	\$ -	\$ -	\$ 37,860,320

The Company's contractual liabilities and obligations are as follows:

The contractual liabilities and obligations included in the tables above include both principal and interest cash flows.

Working Capital

Working capital is current assets less current liabilities. As at December 31, 2022, Radient had a working capital deficit of \$38,317,780 as compared to a working capital deficit of \$35,100,888 as at March 31, 2022. The \$3,216,892 increase in working capital deficit is primarily related to increased accounts payable of \$5,102,322, increased facility construction liabilities of \$124,480, decreased lease liabilities of \$554,434, increased cash of \$76,015, increased inventories by \$819,730, increased receivables of \$382,296 and increased prepaids of \$149,403.

Working capital is a non-IFRS measure. See "Non-IFRS Measures".

Related Party Transactions

The Company's related parties are its Board of Directors,and key management personnel (President and Chief Executive Officer and Chief Financial Officer), as well as any companies controlled by key management personnel or directors. Transactions conducted with related parties took place in the normal course of operations and are measured at the amount of consideration established and agreed to by the related parties.

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not included in the details of the related party transactions which follow.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 22 of 27

Key Management Personnel and Director Remuneration

The remuneration of directors and key management personnel follows:

Nine months ended December 31,	2022	2021
Compensation Short-term benefits	\$ 147,625 -	\$ 175,875 6,465
	\$ 147,625	\$ 182,340

Compensation includes key management salaries, severance, consulting fees and director's fees.

As at December 31, 2022, \$952,373 (March 31, 2022 - \$821,680) was included in accounts payable and accrued expenses for amounts owing to key management personnel, directors and companies controlled by key management personnel or directors.

Cash advances

During the nine months ended December 31, 2022, a senior officer of the Company advanced \$116,110 to the Company. This advance is non-interest bearing, has no fixed repayment terms and is payable on demand.

Short-term borrowings

A director of the company advanced \$2,500,000 of demand loan to the Company. The loan is secured by a second charge on the land and property of the Company and bear interest at 21.0%. The Company renegotiated the terms of the loan with Akaura in February 2021. As a result of the renegotiation, the Company issued 20,952,381 shares of the Company to Akaura to settle \$2,200,000 of the Company's outstanding debt with Akaura. Akaura extended \$1,000,000 of the outstanding liability under a new agreement with the Company and forgave \$219,937 of the Company's existing debt. The Company reimbursed Akaura for legal and financing fees of \$138,273 relating to the renegotiation.

The new loan agreement allows an interest free period on the loan until June 1, 2021, at which time the \$1,000,000 was expected to be paid in full. The loan was not repaid on June 1, 2021, and as a result, interest in the amount of 3% per month, retroactive to March 2021 has been charged and will continue to be charged until payment is received in full. The Company recorded an interest expense of \$90,000 and \$180,000 in the statement of operations for the three and six months ended September 30, 2022, respectively. .

Financial Instruments and Related Risk

Cash, accounts receivable and deposits are classified as financial assets at amortized cost. Financial assets are measured at amortized cost using the effective interest method, less any impairment losses.

Financial liabilities are initially recognized at fair value and are subsequently measured at amortized cost using the effective interest method. The Company's financial liabilities include short-term borrowings, facility construction liabilities, accounts payable and accrued liabilities, long-term debt, and lease liabilities.

The fair value of cash, accounts receivable, deposits, short-term borrowings and accounts payable and accrued liabilities approximate their carrying amount due to their short-term nature. The fair values of long-

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 23 of 27

term debt, facility construction liabilities, and lease liabilities are estimated to approximate their carrying value because the interest rates do not differ significantly from current interest rates for similar types of borrowing arrangements.

The Company has exposure to credit, interest rate, liquidity, foreign exchange and credit risk as follows:

Credit Risk

Credit risk is the risk that the counterparty to a financial asset will default, resulting in the Company incurring a financial loss. The Company is exposed to credit risk on its cash, and accounts receivable and to a maximum of the carrying value of the items at the reporting date.

The Company mitigates its exposure to credit risk related to its cash by holding funds with reputable financial institutions.

The Company's trade receivables are monitored on an ongoing basis for impairment.

As at December 31, 2022, the Company had \$499,672 (March 31, 2022 - \$117,376) of trade accounts receivable balances. Credit risk is limited with respect to trade accounts receivable as all receivables are with reputable customers who reliably pay according to the payment terms of the contracts with the Company.

Interest Rate Risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. The Company has interest rate risk in respect of its variable rate long-term debt.

As at December 31, 2022, the increase or decrease in annual net income for each one percent change in interest rate on the variable rate long-term debt would amount to \$105,863 (March 31, 2022 - \$99,291).

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting its financial obligations.

The Company manages its liquidity risk by forecasting cash flow requirements for its planned development, production and corporate activities and anticipating investing and financing activities. Management and the Board are actively involved in the review, planning and approval of annual budgets and significant expenditures and commitments.

The Company could encounter difficulty in meeting its financial obligations if certain risks were to occur. See the Risk Factors section of this MD&A for additional related discussion and details. The Company's contractual liabilities and obligations are as follows:

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 24 of 27

	< 1 year	1 to 3 years	4 to 5 years >5 years			Total
Accounts payable and accrued liabilities	\$ 23,459,385	\$ -	\$	-	\$ -	\$ 23,459,385
Facility construction liabilities	6,139,757	-		-	-	6,139,757
Short-term borrowings	1,245,000	-		-	-	1,245,000
Long-term debt	10,759,774	-		-	-	10,759,774
Lease liabilities	883,915	686,940		-	-	1,570,855
Balance December 31, 2022	\$ 42,487,831	\$ 686,940	\$	-	\$ -	\$ 43,174,771
Accounts payable and accrued liabilities	\$ 18,192,063	\$ -	\$	-	\$ -	\$ 18,192,063
Facility construction liabilities	6,015,277	-		-	-	6,015,277
Short-term borrowings	1,245,000	-		-	-	1,245,000
Long-term debt	10,809,814	-		-	-	10,809,814
Lease liabilities	1,437,349	160,817		-	-	1,598,166
Balance March 31, 2022	\$ 37,699,503	\$ 160,817	\$	-	\$ -	\$ 37,860,320

The contractual liabilities and obligations included in the tables above include both principal and interest cash flows.

As of the date of this MDA, \$15.4 million of obligations with trade creditors are overdue by 120 days or more. The Company is also in arrears with rent, long-term debt and lease liabilities. Radient is actively working with its creditors to offset this situation and recognizes the associated liquidity risk to the Company if the financing initiatives do not materialize.

Foreign Exchange Risk

Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

The Company operates on an international basis and is subject to foreign exchange risk related to financial assets and liabilities denominated in a foreign currency. The Company's objective with respect to foreign exchange risk, is to minimize the impact of the volatility where possible, through effective cash flow management. The following table provides an indication of the Company's exposure to changes in the value of foreign currencies relative to the Canadian dollar as at September 30, 2022. The analysis is based on financial assets and liabilities denominated in Euro ("EUR"), British Pound ("GBP"), US Dollar ("USD") and Swiss Franc ("CHF").

	(GBP)	(EUR)	(CHF)	(USD)
Accounts payable and accrued liabilities	(79,000)	(389,637)	(23,000)	(947,611)
Net balance sheet exposure	(79,000)	(389,637)	(23,000)	(947,611)
Translation rate at December 31, 2022	1.7206	1.4432	1.3947	1.2744
Net income impact of 10% rate change	(7,900)	(38,964)	(2,300)	(94,761)

The estimated net income impact of a 10% rate change assumes other variables remain unchanged. The timing and volume of foreign currency denominated transactions as well as the timing of their settlement could impact the sensitivity analysis.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 25 of 27

Risk Factors

Readers are cautioned that the following is a summary only of certain risk factors and is not exhaustive and is qualified in its entirety by reference to and must be read in conjunction with the additional information on these and other factors that could affect the Company's operations and financial results that may be accessed through the Company's profile on SEDAR (www.sedar.com), including Radient's AIF and Annual MD&A.

Financial History and Capital Requirements

The Company has incurred operating losses and not had a corresponding increase in revenues to offset these losses. The operations of the Company and execution on the business opportunities will depend on its ability to generate operating revenues through additional customers and to procure financing. The Company had a cumulative deficit of \$157,379,303 as of December 31, 2022, with a working capital deficiency of \$38,317,780. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing. There can be no assurance that additional financing, including offerings of Notes or Debentures, can be obtained on terms favourable to Radient or on any terms. Failure to raise the necessary funds in a timely fashion may also limit Radient's ability to move its programs forward in a timely and satisfactory manner or cause it to abandon the programs or force it to pursue alternative strategic options; any of which would harm its business, financial condition and results of operations, or affect its ability to continue operating.

The breadth of the impact of the COVID-19 pandemic on investors, businesses, the global economy and financial and commodity markets may also have a material adverse impact on the Company's profitability, results of operations, financial conditions, ability to raise additional capital and the trading price of the Company's securities. The Company has experienced delays in financing, reduction in plant operations, layoff of staff, reduction in discretionary costs and deferral of projects to manage cash flows.

Outstanding Share Data

As at the date of this MD&A, the Company has:

Common shares issued and outstanding: 539,868,021

Fully diluted common share capital: 622,022,285

Stock Options

8,470,000 stock options of the Company are issued and outstanding with a weighted average exercise price of \$0.82. Each stock option entitles its holder to purchase one common share of the Company with varying expiry dates up to February 11, 2026.

Finders' Options

1,630,275 finders' options with a weighted average exercise price of \$0.20 are issued and outstanding. Each option entitles its holder to purchase one unit of the Company with an expiry date of May 23, 2023. If exercised, these units would include 1,630,275 common shares and 1,630,275 common share purchase warrants entitling the holder to subscribe for additional common shares at a weighted average price of \$0.30 per common share with an expiry date of May 23, 2023.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 26 of 27

Warrants

69,130,714 warrants are issued and outstanding with a weighted average exercise price of \$0.21. Each warrant entitles its holder to purchase one common share of the Company with varying expiry dates up to July 5, 2025.

Management's Discussion and Analysis Three months ended September 30, 2022 Radient Technologies Inc. Page 27 of 27