Clinical Trials and Research - Lexaria's final results from its human pilot study indicated that DehydraTECH-enhanced Rybelsus™ achieved sustained higher levels of semaglutide in blood, faster peak drug delivery, reduced side effects, and lower blood glucose levels after eating [111]. - The company filed an Investigational New Drug (IND) application with the FDA for a phase 1b hypertension clinical trial for its DehydraTECH-CBD drug product, receiving a Study May Proceed letter on February 29, 2024 [112]. - Interim findings from a study on DehydraTECH-semaglutide showed sustained higher levels of semaglutide in blood and reduced side effects, with final results confirming these benefits [120]. - A human pilot study for DehydraTECH-semaglutide has commenced, with the first two dosing arms completed, focusing on tolerability and blood sugar control [142]. - The company plans to initiate a chronic human study in Q3 2024, involving 60 to 80 obese, pre-diabetic, and/or type-2 diabetic volunteers, to evaluate the effectiveness of DehydraTECH-processed semaglutide [144]. - Lexaria has selected a CRO for a new human pilot study on DehydraTECH-tirzepatide capsules, expected to be completed by the end of June 2024 [123]. - The company is conducting a comprehensive R&D program to evaluate DehydraTECH for improved delivery of GLP-1 and GIP drugs, targeting commercial partnerships with global pharmaceutical companies [141]. Financial Performance - Total revenue for the nine months ended May 31, 2024, was $380,278, compared to $195,467 for the same period in 2023, representing a 94% increase [128]. - Revenue for the three months ended May 31, 2024, was $84 million, a 8.3% increase from $77.7 million for the same period in 2023 [160]. - Gross profit for the nine months ended May 31, 2024, was $375.5 million, compared to $164 million for the same period in 2023, representing a 128.5% increase [160]. - Total operating expenses for the three months ended May 31, 2024, were $1.83 million, a decrease of 26% from $2.47 million for the same period in 2023 [160]. - Net loss attributable to Lexaria shareholders for the nine months ended May 31, 2024, was $3.61 million, compared to $5.43 million for the same period in 2023, reflecting a 33.5% improvement [160]. - Basic and diluted loss per share for the three months ended May 31, 2024, was $(0.13), compared to $(0.37) for the same period in 2023 [160]. - The Company reported net losses of $3,622,083 and $5,463,510 for the nine-month periods ended May 31, 2024, and 2023, respectively [214]. Capital and Funding - Lexaria raised $3.0 million from a registered direct offering on February 16, 2024, issuing 1,444,741 shares of common stock and 113,702 pre-funded warrants [113]. - The company has entered into a Securities Purchase Agreement, resulting in net proceeds of $1.25 million from a registered direct offering and concurrent private placement [152]. - The Company raised gross proceeds of $4,407,444 from a Warrant Exercise Agreement on April 30, 2024 [220]. - The Company issued 889,272 shares of common stock and 729,058 pre-funded warrants on October 3, 2023, with net proceeds totaling $1.25 million [220]. - The company reported an accumulated deficit of $(49.37) million as of May 31, 2024, compared to $(45.76) million as of August 31, 2023 [182]. Assets and Liabilities - Total assets as of May 31, 2024, amounted to $10,018,437, up from $5,239,637 as of May 31, 2023, indicating a 91% increase [128]. - Total liabilities as of May 31, 2024, were $271.4 million, down from $403.9 million as of August 31, 2023 [182]. - Current assets increased to $9,093,379 as of May 31, 2024, compared to $2,151,213 as of August 31, 2023 [218]. - Net working capital improved to $8,937,331 as of May 31, 2024, up from $1,883,478 as of August 31, 2023 [218]. - The total present value of operating lease liabilities is reported at $115,327, with total lease payments amounting to $167,424 [127]. Intellectual Property - Lexaria's patent portfolio includes applications for DehydraTECH formulations for cannabinoids, fat-soluble vitamins, and other bioactive compounds, with ongoing investigations for patent protection expansion [115][116]. - The company is actively seeking beneficial acquisitions of intellectual property to enhance its portfolio and market position [135]. - Intellectual property assets increased to $498,878 as of May 31, 2024, compared to $462,625 as of August 31, 2023, reflecting a growth of 8% [159]. Other Developments - DehydraTECH technology is being evaluated for applications beyond pharmaceuticals, including foods, beverages, cosmetics, and nutraceuticals [131]. - The FDA provided a positive response regarding DehydraTECHCBD for hypertension treatment, and the Company submitted its IND application on January 29, 2024 [210]. - The Company plans to conduct long-term stability testing for DehydraTECH compositions over 6-12 months [209]. - The company has no off-balance sheet arrangements that could materially affect its financial condition [212].

Technology and Product Development - Lexaria's DehydraTECH technology improves the delivery of Active Pharmaceutical Ingredients (APIs), resulting in sustained higher levels of semaglutide in blood and reduced side effects in a pilot study[101]. - The company completed a pilot study showing that DehydraTECH-semaglutide capsules achieved faster peak drug delivery and sustained lower blood glucose levels compared to Rybelsus tablets[114]. - Lexaria plans to evaluate DehydraTECH for improved delivery of GLP-1 and GIP drugs, targeting commercial partnerships with global pharmaceutical companies[115]. - Lexaria's DehydraTECH technology is applicable across various sectors, including pharmaceuticals, foods, beverages, and cosmetics[100]. - The company is advancing several R&D activities, including formulations for CBD in hypertension and nicotine for reduced-risk oral pouches[112]. Financial Performance - The company reported a net loss of $1,837,771 for the six months ended February 29, 2024, compared to a net loss of $3,079,944 for the same period in 2023, reflecting a decrease in losses of $1,242,173[131]. - Revenues increased to $296,278 for the six months ended February 29, 2024, up from $117,760 in the same period in 2023, marking a year-over-year increase of $178,518[131]. - Research and development expenditures decreased by $705,397 year-over-year, primarily due to the completion of various R&D studies and manufacturing of DehydraTECH-CBD[133]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for animal and human clinical trials of DehydraTECH formulations, leading to expected operating losses and negative cash flows in the foreseeable future[125]. - The company has an accumulated deficit of $47.6 million as of February 29, 2024, and expects to continue incurring significant operational expenses and net losses in the upcoming 12 months[144]. Capital Raising and Share Issuance - Lexaria raised $3.0 million from a registered direct offering, issuing 1,444,741 shares of common stock and 113,702 pre-funded warrants[104]. - The company issued 1,119,250 common shares from warrant exercises, generating gross proceeds of $1,063,475 at an exercise price of $0.95 per share[105]. - The Company issued 1,444,741 shares of common stock and 113,702 pre-funded warrants in a registered direct offering on February 16, 2024, with net proceeds of $3.0 million[148]. - On October 3, 2023, the Company issued 889,272 shares of common stock and 729,058 pre-funded warrants, generating net proceeds of $1.25 million[148]. Assets and Liabilities - As of February 29, 2024, the company had current assets of $5,416,984 and current liabilities of $81,717, resulting in net working capital of $5,335,267[139]. - As of February 29, 2024, the Company had cash and cash equivalents of approximately $4.7 million to settle $81,717 in current liabilities[147]. - Net cash used in operating activities was approximately $1.8 million for the six months ended February 29, 2024, a decrease from $2.5 million in the same period in 2023[141]. Legal and Compliance - Legal and professional fees increased by $163,755 during the period due to increased patent filings and additional legal advisory services[137]. - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of February 29, 2024[150]. - There have been no changes in the Company's internal controls over financial reporting during the quarter ended February 29, 2024, that materially affect the controls[152]. - The Company is not party to any material, pending, or existing legal proceedings against it or its subsidiaries[153]. Research and Development Initiatives - The company received a Study May Proceed letter from the FDA for its Phase 1b hypertension clinical trial of DehydraTECH-CBD, enabling further clinical studies[102]. - The company plans to conduct multiple human pilot studies in 2024, targeting the evaluation of DehydraTECH formulations of GLP-1 drugs[117][118][119]. - The company is exploring beneficial acquisitions of intellectual property to enhance its portfolio and support ongoing research initiatives[108].

Financial Performance - The company reported net losses of $1,185,038 and $1,769,306 for the three months ended November 30, 2023, and 2022, respectively, reflecting a reduction in losses of about 32.9%[114]. - The net loss for the three months ended November 30, 2023, was $1,185,038, a decrease of $584,268 compared to a net loss of $1,769,306 in the same period of 2022[120]. - Revenues for the quarter increased to $151,278, up from $97,735 in the prior year, reflecting a year-over-year change of approximately 54.7%[120]. - Lexaria's ability to continue as a going concern depends on raising additional capital and maintaining profitable operations, as indicated by recurring losses and negative cash flows[115]. Research and Development - Lexaria incurred R&D expenditures of $574,491 for the quarter ended November 30, 2023, compared to $829,489 in November 2022, indicating a decrease of approximately 30.8% year-over-year[106]. - Research and development expenditures decreased by $254,998 year-over-year, totaling $574,491 for the period ended November 30, 2023[122]. - Lexaria completed a human pilot study showing that DehydraTECH-enhanced Rybelsus sustained higher levels of semaglutide in blood and achieved faster peak drug delivery[97]. - The company is focusing on three core business segments: pharmaceutical applications, reduced-risk non-combusted nicotine, and CBD from hemp, with no significant expenditures expected on non-combusted nicotine R&D during fiscal 2024[106]. - Lexaria's ongoing R&D programs are aligned with its financial capacity, and it continues to explore accelerated timelines for testing and development of each API[106]. - Lexaria's patent portfolio includes applications for the use of DehydraTECH with cannabinoids for treating heart disease and hypertension, supporting its IND application with the FDA[100]. - The company has engaged in small R&D projects and B2B formulation for third parties evaluating its technology for product integration[98]. Regulatory and Legal Matters - The FDA has agreed to Lexaria's proposal to pursue a 505(b)(2) NDA regulatory pathway for DehydraTECH-CBD for hypertension treatment, with an IND application anticipated by January 31, 2024[107]. - Legal and professional fees increased by $84,302 during the period due to higher patent filings and additional legal advisory services[124]. Cash Flow and Financing - Current assets as of November 30, 2023, were $2,693,634, compared to $2,151,213 as of August 31, 2023, indicating an increase in working capital[126]. - Net cash used in operating activities was approximately $1.18 million for the three months ended November 30, 2023, a decrease from $1.23 million in the same period in 2022[128]. - The company reported net cash from financing activities of $1,819,370 for the quarter, compared to zero in the same period of 2022, primarily due to proceeds from the sale of common shares and warrant exercises[130]. - The company entered into a securities purchase agreement for 889,272 shares of common stock at an effective offering price of $0.97 per share, which will help fund operations[116]. - As of November 30, 2023, the company had cash on hand of approximately $2 million to settle $125,000 in current liabilities, alleviating substantial doubt about its ability to continue as a going concern[138]. General and Administrative Expenses - Other general and administrative expenses decreased by $225,612, with advertising and promotion costs down by $223,026 as the company scaled back its marketing efforts[125]. - The company issued an aggregate of 601,661 common shares from warrant exercises at an exercise price of $0.95 per share, generating gross proceeds of $571,578 during the quarter[135].

Financial Performance - For the year ended August 31, 2023, the company reported a net loss of $6,712,525, an improvement from a net loss of $7,383,653 in 2022, reflecting a decrease of $671,128 [182]. - Total revenues for the year were $226,208, down from $255,397 in 2022, representing a decline of approximately 11.4% [182]. - The net loss for the year decreased to $6.71 million in 2023 from $7.38 million in 2022, showing a reduction in losses [232]. - Basic and diluted loss per share improved to $1.01 in 2023 from $1.24 in 2022, reflecting better performance on a per-share basis [232]. - The accumulated deficit increased from $39,098,528 in 2022 to $45,763,427 in 2023, indicating ongoing financial challenges [229]. - The company expects to continue incurring significant operational expenses and net losses in the upcoming 12 months, indicating a cautious outlook [241]. Revenue and Expenses - Research and development expenses increased significantly to $3,666,721 in 2023, nearly double the $1,842,675 spent in 2022, indicating a rise of 99.0% [188]. - Licensing revenue from technology agreements grew substantially to $146,800 in 2023, compared to $54,560 in 2022, marking an increase of 168.9% [185]. - Revenue for the year ended August 31, 2023, was $226.2 million, a decrease of 11.4% from $255.4 million in 2022 [232]. - The company recognized B2B product revenues of $44,167 in 2023, a significant decline of 61% compared to $113,438 in 2022 [293]. - Net cash used in operating activities was approximately $5.9 million for the year ended August 31, 2023, compared to $4.9 million in the previous year, reflecting an increase in cash outflow [206]. Intellectual Property and Research - The company completed seven studies involving DehydraTECH infused CBD, nicotine, and estradiol during the fiscal year, funded by approximately $15 million from a previous financing round [177]. - The company was granted nine new patents in fiscal 2023, including its first patents in Canada, enhancing its intellectual property portfolio significantly [175]. - The company granted nine additional patents during the fiscal year, indicating increased investment in intellectual property [207]. - The company recognized an impairment loss of $106,761 related to abandoned patent applications during the year ended August 31, 2023 [281]. - The company has net operating loss carry-forwards of approximately $40 million available to offset future taxable income [295]. Cash Flow and Financing - As of August 31, 2023, the company had cash on hand of approximately $1.4 million to settle $270,000 in current liabilities, which is deemed sufficient for expected R&D and operating expenditures for the next twelve months [203]. - The company entered into a sales agreement for an At-The-Market Offering with an aggregate offering price of up to $5,925,000, resulting in gross proceeds of $114,456 from the sale of 34,652 shares [200]. - A placement agency agreement was established to sell 2,106,000 units at $0.95 per unit, generating gross proceeds of $2,000,700 and net proceeds of $1,600,397 [201]. - The company raised $1.59 million from equity issuance during the year, which is crucial for funding ongoing operations [242]. - The company completed the issuance of 34,652 shares for gross proceeds of $114,456 and 2,106,000 units at $0.95 per unit, resulting in net proceeds of $1,600,397 [296]. Assets and Liabilities - Total current assets decreased from $6,977,516 in 2022 to $2,199,772 in 2023, while total assets decreased from $7,833,927 to $3,083,986 [229][230]. - Total stockholders' equity decreased from $7,632,490 in 2022 to $2,680,078 in 2023, reflecting a significant decline in the company's financial position [230]. - Cash at the end of the year was $1.35 million, down from $5.81 million at the beginning of the year, indicating cash flow challenges [234]. - The company's working capital decreased by approximately $4.8 million, primarily due to cash used in operating activities during the fiscal year ended August 31, 2023 [204]. - The total assets of the company as of August 31, 2023, were $3.083986 million, a decrease from $7.833927 million in 2022 [311]. Lease and Segment Information - Total lease assets increased to $167.446 million as of August 31, 2023, from $52.444 million in 2022, reflecting a significant increase of approximately 218.5% [308]. - The company has a remaining lease term of 5.17 years with total lease payments amounting to $194.305 million [308]. - The company has identified four reportable segments: Intellectual Property Licensing, B2B Production, Research and Development, and Corporate [309].

Research and Development - Lexaria incurred $1,640,648 in R&D expenditures for the quarter ended May 31, 2023, compared to $752,095 in May 2022, indicating a significant increase in investment in research activities [80]. - The FDA has agreed to Lexaria's proposal to pursue a 505(b)(2) new drug application regulatory pathway for DehydraTECH-CBD for the treatment of hypertension, with an IND filing anticipated in late fiscal 2023 or early 2024 [81]. - The initial results from the hypertension study HYPER-H21-4 showed a sustained drop in blood pressure in normally active hypertensive patients following multiple weeks of oral CBD therapy [83]. - DehydraTECH-CBD demonstrated increased blood absorption levels compared to published pharmaceutical-grade CBD industry peers, suggesting superior efficacy in blood pressure reduction [86]. - The DehydraTECH-estradiol formulation achieved an average peak concentration in the bloodstream of 5.65 ng/mL, approximately 900% higher than the control formulation [93]. - Lexaria's patent portfolio includes 34 granted patents and ongoing applications in over 40 countries, which could lead to material increases in shareholder value [75]. - The company completed three human studies on hypertension in fiscal 2022, with results from the fourth study published in six research articles [72]. - Lexaria is advancing several R&D activities, including investigations of CBD for diabetes and dementia, with positive outcomes reported in animal studies [91]. - The company continues to engage in small R&D projects and B2B formulation for third parties evaluating DehydraTECH technology for their products [73]. - Lexaria's patented DehydraTECH technology improves the delivery of bioactive compounds, enhancing the effectiveness of various active pharmaceutical ingredients [70]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for clinical trials of DehydraTECH formulations [99]. Financial Performance - The company reported a net loss of $5,463,510 for the nine months ended May 31, 2023, compared to a net loss of $5,870,492 for the same period in 2022, reflecting a decrease of $406,982 [100][106]. - Revenues increased to $229,641 for the nine months ended May 31, 2023, up from $144,247 in 2022, marking an increase of $85,394 [105][107]. - Research and development expenditures rose significantly by $1,679,828 year-over-year, totaling $3,166,315 for the nine months ended May 31, 2023 [105][108]. - Cash flows used in operating activities increased to $4,259,557 for the nine months ended May 31, 2023, compared to $3,702,724 in 2022 [112][113]. - The company entered into a $2 million financing agreement resulting in the issuance of 2,106,000 common shares and warrants [119]. - The company has no off-balance sheet arrangements that could materially affect its financial condition [96]. - The company has evaluated its ability to continue as a going concern and has cash on hand of approximately $3,163,906 to settle current liabilities [121]. Future Expectations - The anticipated results from the human clinical nicotine study NIC-H22-1 are expected to be released in the fourth quarter of 2023 [95]. - As of May 31, 2023, the company had current assets of $4,235,490 and current liabilities of $1,055,904, resulting in net working capital of $3,179,586 [112][121].

Research and Development - Lexaria incurred $696,178 in R&D expenditures for the quarter ended February 28, 2023, compared to $275,686 in the same quarter of 2022, reflecting a significant increase in investment in research activities [80]. - Lexaria's primary research program is focused on investigating CBD for the reduction of hypertension, with an IND filing anticipated in late fiscal 2023 or early 2024 [81]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for clinical trials targeting hypertension, dementia, and diabetes [95]. - Research and development expenditures increased by $791,272 year-over-year, totaling $1,525,667 for the period ended February 28, 2023, focusing on DehydraTECH-CBD for hypertension treatment [102]. - Lexaria has engaged in contract R&D for third parties interested in evaluating DehydraTECH in their products, expanding its market reach [79]. Financial Performance - The company reported net losses of $3,079,944 and $3,452,155 for the six months ended February 28, 2023, and 2022, respectively, highlighting ongoing financial challenges [96]. - Net loss for the six months ended February 28, 2023, was $3,079,944, a decrease of $372,211 from the net loss of $3,452,155 in the same period of 2022 [100]. - Cash flows used in operating activities were $2,473,590 for the six months ended February 28, 2023, compared to $2,443,593 in the prior year, indicating a slight increase in cash used [106]. - The company incurred net losses of approximately $7.4 million and $4.2 million in the past two fiscal years, with expectations of continued significant expenditures for R&D and operational activities [110]. Intellectual Property - The company has 28 patents granted internationally and approximately 50 patents pending worldwide, indicating a strong focus on intellectual property development [73]. Drug Development - The FDA has agreed to Lexaria's proposal to pursue a 505(b)(2) NDA regulatory pathway for DehydraTECH-CBD, marking a significant step in the drug development process [81]. - Results from the hypertension study HYPER-H21-4 indicated a sustained drop in blood pressure in hypertensive patients following multiple weeks of oral CBD therapy [82]. - Lexaria's DehydraTECH technology improves the delivery of bioactive compounds, enhancing the absorption of CBD compared to pharmaceutical-grade alternatives [83]. Cash and Equity - As of February 28, 2023, the company had approximately $3.3 million in cash, expected to fund R&D programs, operating expenses, and capital expenditures for the next 12 months [99]. - The company has entered into an ATM Offering equity distribution agreement with Maxim Group LLC, allowing for the sale of shares with an aggregate offering price of up to $5,925,000 [98]. - The company has sold 34,652 shares under an ATM agreement for gross proceeds of $114,546 as of April 1, 2023, with $5,810,544 remaining eligible for sale [112]. Expenses - Legal and professional fees decreased by $168,007 during the period compared to the prior year, attributed to reduced patent and trademark filings [104]. - Other general and administrative expenses decreased by $363,000, with advertising and promotion costs down by $140,000 [105]. COVID-19 Impact - The company has not experienced any material impact from COVID-19 on its financial statements or operations to date [116].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 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 LEXARIA BIOSCIENCE CORP. (Exact name of registrant as specified in its charter) Nevada 20-2000871 State or other jurisdiction o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2022 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 000-52138 LEXARIA BIOSCIENCE CORP. (Exact name of registrant as specified in its charter) Nevada 20-2000871 State or other jurisdic ...

Research and Development - Lexaria incurred $752,095 in R&D expenditures for the quarter ended May 31, 2022, compared to $454,443 in May 2021, reflecting a year-over-year increase of approximately 65.6%[79] - The Company is advancing R&D activities in various areas, including cannabidiol for hypertension, nicotine for oral pouches, and antivirals for COVID-19[77] - Research and development expenditures increased by $663,387 to $1,486,489 for the nine months ended May 31, 2022, compared to $823,102 in 2021[119] - Cash flows used in operating activities increased by $792,000 for the nine months ended May 31, 2022, compared to the same period in 2021, primarily due to increased R&D expenditures[129] - The company expects to continue incurring losses in the short term as it executes its business plan and R&D expenditures[132] Clinical Studies - The HYPER-H21-4 human clinical hypertension study involves 60 volunteers and aims to evaluate the efficacy of DehydraTECH-CBD, with dosing concluding in July 2022[82] - In the HYPER-H21-3 study, DehydraTECH-CBD treatment significantly reduced pulmonary artery systolic pressure by about 5 mmHg or 41% overall (p=0.045) in male participants under hypoxic conditions[84] Financial Performance - The company reported a net loss of $5,870,492 for the nine months ended May 31, 2022, compared to a net loss of $2,861,483 for the same period in 2021, reflecting an increase of $3,009,009[119] - Revenue for the nine months ended May 31, 2022, was $144,247, a decline of $547,470 from $691,717 in the same period in 2021[119] - The company has incurred recurring losses and negative cash flows, with net losses of $5,870,492 for the nine months ended May 31, 2022[117] Cash and Funding - As of May 31, 2022, the company had approximately $7.0 million in cash and $8.1 million in working capital, sufficient to fund operations for the next twelve months[134] - The company requires substantial cash for developing and patenting intellectual property across various market segments, potentially costing millions of dollars for each segment[135] - Full commercial exploitation of all market opportunities will necessitate significant funding from existing or new relationships, increasing revenue streams, or liquidity sources such as equity sales or debt issuance[136] - Cash requirements will fluctuate based on research program results and the needs of each pursued industry segment[137] - The progress of each segment will depend on available cash sources to execute individual business plans[137] Intellectual Property - Lexaria's patent portfolio includes over 50 pending applications worldwide, with successful patents granted in the US, Australia, Europe, India, Mexico, and Japan[92] - The Company was granted US Patent 11,311,559 for enhanced delivery of antiviral agents, marking its 25th patent granted worldwide[95] - The company recognized $81,000 in capitalized patent costs for the nine months ended May 31, 2022, compared to $79,000 in the same period in 2021[112] Market Activities - Lexaria's common stock was uplisted to the Nasdaq Capital Market under the symbol "LEXX" effective January 12, 2021[99] - The Company completed a public offering on January 14, 2021, issuing 2,102,856 shares at $5.25 per share, resulting in net proceeds of $9,471,497[98] - Lexaria CanPharm completed the sale of its DehydraTECH technology rights for C$350,000 cash, a C$2,000,000 promissory note, and C$1,500,000 in shares[102] - The company anticipates increased licensing revenues in late 2022 and early 2023 as new licensees introduce products using DehydraTECH technology[122] Technology and Product Development - The DehydraTECH formulation delivered 74% more sildenafil into the bloodstream on average than the concentration-matched generic control formulation within four minutes after dosing[88] - Lexaria's DehydraTECH technology improves the delivery of bioactive compounds, enhancing the transport of Active Pharmaceutical Ingredients to the blood plasma and brain[76]

R&D Activities - Lexaria incurred $275,213 in R&D expenditures for the quarter ended February 28, 2022, compared to $176,398 in February 2021, reflecting a 56% increase year-over-year[75]. - The company is advancing several R&D activities, including a human clinical trial for cannabidiol (CBD) initiated in Q3 2022, and three human clinical trials concluded in calendar 2021[74]. - In February 2022, results from the PDE5-A21-1 animal study showed that the DehydraTECH formulation delivered 74% more sildenafil into the bloodstream compared to the generic control formulation[80]. - The HYPER-H21-4 study, initiated in April 2022, aims to evaluate the efficacy of DehydraTECH-CBD in treating hypertension with 60 volunteers participating[76]. - The company reported successful results from its HYPER-H21-2 human study of DehydraTECH-CBD in arterial stiffness in September 2021[76]. - The company continues to report progress on its R&D programs through public releases and filings, with results available on its website[82]. Financial Performance - For the six months ended February 28, 2022, the company reported a revenue of $44,530, a significant decline of $443,132 compared to $487,662 in the same period of 2021[111]. - Research and development expenditures increased by $365,736 to $734,395 for the six months ended February 28, 2022, compared to $368,659 in the prior year[111]. - The net loss for the six months ended February 28, 2022, was $3,452,156, which is an increase of $3,135,225 from a net loss of $316,931 in the same period of 2021[111]. - Cash flows used in operating activities increased by $723,000 for the six months ended February 28, 2022, compared to the same period in 2021, primarily due to increased expenditures on R&D and professional fees[119]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for clinical trials of DehydraTECH formulations, leading to expected operating losses and negative cash flows in the foreseeable future[107]. Cash and Assets - As of February 28, 2022, the company had cash and cash equivalents of approximately $8.4 million, which is expected to be sufficient to fund operations for the next 12 months[125]. - The company’s current assets decreased to $10,572,202 as of February 28, 2022, from $12,442,940 as of August 31, 2021[118]. - The company’s working capital as of February 28, 2022, was $10,406,660, down from $12,289,664 as of August 31, 2021[118]. Funding and Capital Concerns - The company has incurred recurring losses and negative cash flows from operations, with a net capital deficiency raising doubts about its ability to continue as a going concern[109]. - The company expects to continue evaluating various funding alternatives to maintain operations and expand its patent portfolio[123]. Stock and Market Activity - The company received net proceeds of $9,471,497 from a public offering that closed on January 14, 2021, involving the issuance of 2,102,856 shares priced at $5.25 each[91]. - Lexaria's common stock was uplisted to the Nasdaq Capital Market under the symbol "LEXX" effective January 12, 2021, after delisting from the Canadian Securities Exchanges[92]. Impact of COVID-19 - The COVID-19 pandemic has increased risks of lower revenues and higher losses, although the company has not experienced a material impact on its financial statements to date[96]. Patent Portfolio - Lexaria's patent portfolio includes over 50 applications pending worldwide, with successful patents granted in the US, Australia, Europe, India, Mexico, and Japan[84].