Kelowna, British Columbia – August 27, 2025 – TheNewswire - Lexaria Bioscience Corp. (Nasdaq: LEXX, LEXXW) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, today announced that it will participate in the 27th Annual H.C. Wainwright Global Investment Conference, taking place September 8th through September 10th, 2025. Richard Christopher, Chief Executive Officer of Lexaria Bioscience, will deliver a company presentation and be available for one-on-one investor meetings througho ...

Core Insights - Lexaria Bioscience Corp. has achieved a significant milestone in its Phase 1b GLP-1 study in Australia, completing the last patent last visit (LPLV) [1][2] - The study involved 126 participants and focused on evaluating various DehydraTECH formulations against a control arm using Rybelsus® [4][6] - Interim results have shown positive outcomes, particularly in safety and tolerability compared to the control arm, with a notable reduction in gastrointestinal adverse events [3] Study Details - The study included 24-25 overweight, obese, pre- or type 2 diabetic patients in each of the five study arms, with a total of 126 participants [4] - All doses were administered orally, with no injections involved, as Lexaria aims to shift the standard of care towards oral delivery [4] - The study arms included proprietary formulations of DehydraTECH-CBD and DehydraTECH-processed semaglutide, with the fifth arm evaluating DehydraTECH-tirzepatide [5][6][7] Future Objectives - Lexaria plans to release the final results of the study in the fourth quarter of 2025 [9] - The company is currently engaged in data analysis and sample processing, with a comprehensive database being developed [2] Technology Overview - DehydraTECH™ is Lexaria's patented drug delivery technology that enhances the bio-absorption of drugs through oral delivery, aiming to reduce side effects and improve efficacy [10] - The company holds a robust intellectual property portfolio with 50 patents granted and additional patents pending worldwide [10]

Industry Overview - The GLP-1 weight loss and diabetes control sector is currently the fastest growing pharmaceutical sector globally, with revenue expectations exceeding $100 billion annually [2] - Updated projections indicate that the GLP-1 industry could generate over $156 billion in revenue by 2030, with a significant growth of 31% expected in 2025, reaching $70.1 billion [3] Challenges in the GLP-1 Sector - The GLP-1 industry faces significant challenges due to unwanted adverse effects, particularly gastrointestinal issues such as nausea, vomiting, diarrhea, and constipation [4] - Discontinuation rates among GLP-1 users with type 2 diabetes are high, with studies showing that 47% to 64% of users stop their medication within 1 to 2 years, primarily due to gastrointestinal adverse effects [5][6] Company Innovations - Lexaria Bioscience Corp. has developed DehydraTECH technology, which aims to reduce side effects associated with GLP-1 drugs, potentially improving patient retention and industry growth [8][9] - DehydraTECH has shown promise in clinical testing for reducing gastrointestinal adverse effects in the top GLP-1 drugs, including semaglutide, tirzepatide, and liraglutide [10] Strategic Initiatives - Lexaria is pursuing a multi-faceted strategy to attract pharmaceutical companies to adopt its DehydraTECH technology, evidenced by a material transfer agreement with a pharmaceutical company announced in September 2024 [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from [ ] to [ ] Commission file number 001-39874 LEXARIA BIOSCIENCE CORP. (Exact name of registrant as specified in its charter) | | | (State or other jurisdiction of Incorporation o ...

Core Insights - Lexaria Bioscience Corp. will participate in the BIO International Convention in Boston from June 16-19, 2025, aiming to advance discussions with potential partners and investors [1][2] Company Overview - Lexaria is a global innovator in drug delivery platforms, specifically through its patented DehydraTECH® technology, which enhances drug absorption and reduces side effects [4] - The company holds 48 granted patents and has additional patents pending worldwide, showcasing a strong intellectual property portfolio [4] Event Participation - The BIO International Convention is the largest biotechnology convention globally, featuring over 1,500 exhibitors and 20,000 attendees, providing a platform for networking and collaboration [2] - Lexaria is arranging one-on-one meetings with corporate leaders in sectors such as weight loss, diabetes, and hypertension, with limited meeting slots still available [3]

Core Viewpoint - Lexaria Bioscience Corp. successfully closed a registered direct offering, raising $2.0 million by selling 2,000,000 shares at $1.00 each, minimizing dilution for existing shareholders by avoiding the issuance of new warrants, except for pre-funded warrants [1][2][3]. Group 1: Offering Details - The offering involved a single institutional investor purchasing 2,000,000 shares of common stock or pre-funded warrants at a price of $1.00 per share [1]. - The gross proceeds from the offering were $2.0 million before deducting placement agent fees and other expenses [3]. - H.C. Wainwright & Co. acted as the exclusive placement agent for the offering [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for working capital and other general corporate purposes [3]. Group 3: Company Background - Lexaria operates a patented drug delivery platform, DehydraTECH™, which enhances the absorption of various drugs through oral delivery [6]. - The company holds a robust intellectual property portfolio with 48 patents granted and additional patents pending worldwide [6].

Technology and Product Development - Lexaria's DehydraTECH technology improves the delivery of Active Pharmaceutical Ingredients (API), enhancing bioavailability and potentially lowering overall dosing[107] - In a recent study, DehydraTECH-enhanced liraglutide and certain CBD formulations outperformed Rybelsus® in lowering blood sugar and controlling body weight[109] - The company reported a 47% reduction in adverse events for DehydraTECH-tirzepatide compared to Zepbound®, with comparable blood glucose and insulin level reductions[111] - The company initiated a Phase 1b clinical study in Australia for DehydraTECH Cannabidiol in combination with GLP-1 agonists for diabetes treatment[114] - An Ethics Board approved a new pilot study investigating an oral version of liraglutide using DehydraTECH, aiming to demonstrate safety and pharmacokinetic performance[115] - Lexaria's patent portfolio includes applications for DehydraTECH with cannabinoids for treating heart disease and hypertension, as well as for diabetes and weight loss[118] - Lexaria's primary clinical research areas include DehydraTECH-powered GLP-1/GIP drugs and CBD for diabetes and hypertension treatment[123] Financial Performance - Lexaria reported a net loss of $5,423,600 for the six months ended February 28, 2025, compared to a net loss of $1,837,771 for the same period in 2024, reflecting an increase of $3,585,829[139] - Revenues increased to $357,923 for the six months ended February 28, 2025, up from $296,278 in the prior year, with licensing fees and B2B sales rising by $58,010 and $4,535, respectively[140] - Research and development expenditures surged by $2,818,866 year-over-year, primarily due to the advancement of GLP-1 studies and the manufacturing of Investigational Drug Product[141] - Consulting fees and salaries rose by $572,909, attributed to the transition of the former CEO and the hiring of a new CEO and CFO[142] - Legal and professional fees increased by $25,154 due to higher accounting and professional service costs associated with registration filings[143] - General and administrative expenses grew by $281,390, driven by increased advertising costs and foreign currency transaction losses[144] - Cash flows used in operating activities were approximately $4.2 million for the six months ended February 28, 2025, compared to $1.8 million in the prior year[146] - The company raised $4.4 million in net proceeds from securities sales during the six months ended February 28, 2025, down from $5.3 million in the same period in 2024[149] Financial Position and Concerns - As of February 28, 2025, the company had a working capital of $5,901,986, down from $6,798,567 as of August 31, 2024[145] - The company has an accumulated deficit of $57.0 million as of February 28, 2025, and expects to continue incurring significant operational expenses and net losses in the upcoming 12 months[150] - As of February 28, 2025, the company had cash and cash equivalents of approximately $6.5 million to settle $1.8 million in current liabilities[153] - The company has substantial doubt regarding its ability to continue as a going concern for at least one year following the date of the financial statements[153] - The company intends to fund operations and working capital for the twelve-month period following February 28, 2025 through equity financing arrangements and potential collaborations or strategic partnerships[153] - There is no assurance that the company will have sufficient funds to execute its intended business plan or generate positive operating results[154] - The consolidated financial statements do not include any adjustments related to the uncertainty of the company's ability to continue as a going concern[155]

Core Viewpoint - Lexaria Bioscience Corp. announced positive pharmacokinetic results from its Human Study 3, demonstrating that its oral DehydraTECH-tirzepatide can achieve comparable blood concentration levels to the injected Zepbound® [1][2][10] Study Design and Results - The study involved 10 participants receiving a weekly injection of Zepbound® and 9 participants taking DehydraTECH-tirzepatide capsules daily over the same period [3] - Peak blood levels for injected Zepbound® were generally higher but showed a decline after Day 2, while DehydraTECH-tirzepatide levels increased steadily and were still rising on Day 8 [4][5] - 80% of injected participants experienced peak levels on Day 2, whereas 50% of DehydraTECH-tirzepatide participants peaked on the final day, indicating ongoing absorption [4] Side Effects and Efficacy - DehydraTECH-tirzepatide showed a 47% reduction in adverse events compared to injected Zepbound®, with only 20 adverse events reported for the oral version versus 38 for the injection [5][6] - Gastrointestinal side effects were reduced by 54% with DehydraTECH-tirzepatide, while glycemic performance indicators remained comparable between the two formulations [6] Future Studies - The company is conducting a 12-week study in Australia to further evaluate the effectiveness of DehydraTECH-tirzepatide, with dosing starting at 20 mg/day and escalating to 40 mg/day [7][8] - The ongoing study aims to assess steady-state blood levels over an extended duration, which could position Lexaria as a significant player in the GLP-1 weight loss and diabetes control markets [7][8] Competitive Landscape - Currently, there is no oral version of tirzepatide available, as it is only sold as an injection [9][12] - Lexaria's DehydraTECH technology has previously shown promise in delivering other GLP-1 drugs, indicating potential for a competitive oral alternative in the market [11][12]

Core Insights - Lexaria Bioscience Corp. is pursuing the development of the world's first orally-dosed liraglutide using its DehydraTECH technology, which enhances drug delivery [1][2] - The company has filed patent applications for this new formulation, aiming to capitalize on the recent off-patent status of liraglutide [2] - Positive results from animal studies indicate that DehydraTECH-liraglutide outperformed existing oral treatments in controlling blood sugar and body weight [3] - Lexaria is also preparing for human clinical trials to further validate the efficacy and safety of its oral liraglutide formulation [5][6] Company Strategy - Lexaria's strategy includes simultaneous research on leading GLP-1/GIP drugs, with a market potential estimated at $30 billion in 2024, a significant increase from $300 million in 2018 [4] - The company aims to expedite its entry into the GLP-1 market by initiating pilot clinical testing of DehydraTECH-liraglutide [5] - If successful, the company plans to pursue regulatory approval from the FDA for its orally-dosed liraglutide, potentially in collaboration with Novo Nordisk, the original developer of liraglutide [6] Market Context - Currently, liraglutide is only available in injectable forms, generating substantial revenue for Novo Nordisk, with $849 million from Saxenda and $1.6 billion from Victoza in the first half of 2024 [7] - The introduction of an oral version could disrupt the market and provide a competitive edge for Lexaria, especially given the lack of existing oral formulations [2][7] - Liraglutide has shown additional benefits beyond diabetes management, including cognitive decline reduction, which may enhance its market appeal [8] Technology Overview - DehydraTECH is a patented drug delivery technology that improves the absorption of active pharmaceutical ingredients through oral administration [9] - The technology has demonstrated the ability to enhance bio-absorption and effectively deliver drugs across the blood-brain barrier [9] - Lexaria holds a robust intellectual property portfolio with 48 patents granted and additional patents pending, positioning it well for future innovations [9]

Technology and Research - Lexaria's DehydraTECH technology enhances the delivery of Active Pharmaceutical Ingredients (APIs), improving bioavailability and potentially lowering overall dosing[98] - During the three months ended November 30, 2024, Lexaria completed a GLP-1 Diabetes Animal Study with 72 diabetic rats, showing that DehydraTECH-enhanced formulations outperformed Rybelsus® in lowering blood sugar and controlling body weight[99] - Lexaria's Phase 1b study in Australia will involve 80 overweight or obese patients to investigate the efficacy of DehydraTECH-CBD and DehydraTECH-enhanced semaglutide compared to Rybelsus®[103] - The company is advancing R&D activities in both preclinical and clinical programs, focusing on DehydraTECH-powered GLP-1/GIP drugs and CBD for diabetes and hypertension[115] - Lexaria completed dosing for a human pilot study involving nine healthy volunteers, investigating DehydraTECH-tirzepatide capsules with no serious adverse events reported[116] - The company has received Ethics Board Approval for its Australian clinical study on DehydraTECH Cannabidiol and GLP-1 agonists[107] - Lexaria's patent portfolio includes applications for the use of DehydraTECH with cannabinoids for treating heart disease, hypertension, epilepsy, and diabetes[110] - The company entered into a Project Agreement with Novotech for conducting its Australian clinical study on DehydraTECH Cannabidiol[107] - Lexaria's ongoing studies include a comprehensive analysis of liver and kidney function and blood chemistry related to its recent animal studies[100] - DehydraTECH-liraglutide and DehydraTECH-CBD formulations showed body weight loss of 11.53% and 10.65%, and blood sugar reduction of 11.13% and 3.35%, outperforming the Rybelsus® control group[118] - Lexaria plans a Phase 1b study in Australia with 80 overweight or diabetic patients to evaluate the efficacy of DehydraTECH formulations[119] Financial Performance - Net loss for the three months ended November 30, 2024, was $2,706,628, compared to $1,185,038 for the same period in 2023, reflecting an increase of $1,521,590[134] - Revenue for the three months ended November 30, 2024, was $183,923, an increase of $32,645 from $151,278 in the same period last year[134] - Research and development expenditures increased by $1,378,729 year-over-year, primarily due to the manufacturing of the Investigational Drug Product for the Phase 1b Clinical Trial[136] - The company raised $4.3 million in net proceeds from the sale of securities during the three months ended November 30, 2024[132] - Current assets as of November 30, 2024, were $8,825,741, with current liabilities of $297,798, resulting in net working capital of $8,527,943[140] - Cash flows used in operating activities were approximately $2.73 million for the three months ended November 30, 2024, compared to $1.18 million in the same period in 2023[141] - The company anticipates increased expenditures related to ongoing R&D programs and expects to incur operating losses and negative cash flows for the foreseeable future[129] - As of November 30, 2024, the company had an accumulated deficit of $54.26 million, raising substantial doubt about its ability to continue as a going concern[143] Share Issuance and Control - The company issued 1,633,987 shares at $3.06 per share, raising gross proceeds of $5.0 million and net proceeds of $4.5 million during the same period[105] - On October 16, 2024, the Company issued 1,633,987 shares of common stock at a price of $3.06 per share, resulting in gross proceeds of $5.0 million and net proceeds of $4.5 million[147] - The Company concurrently issued 4,551,019 share purchase warrants, allowing the holder to purchase shares at $3.06 per share for five years[147] - In October 2024, the Company sold 8,402 shares through an At the Market (ATM) offering, generating gross proceeds of $26,146[147] - As of November 30, 2024, the Company's disclosure controls and procedures were deemed effective at a reasonable assurance level[148] - There were no changes in internal controls over financial reporting during the quarter ended November 30, 2024, that materially affected the controls[150] - The Company is not involved in any material legal proceedings against itself or its subsidiaries[151]