Core Points - Lexaria Bioscience Corp. has entered into a definitive agreement to sell 2,666,667 shares of common stock at a price of $1.50 per share in a registered direct offering [1] - Concurrently, the company will issue unregistered warrants to purchase an additional 2,666,667 shares at an exercise price of $1.37 per share, which will be immediately exercisable and expire in five years [1] - The total gross proceeds from the offering are expected to be approximately $4.0 million before deducting fees and expenses [2] Offering Details - The shares are being offered under a "shelf" registration statement that was declared effective by the SEC on January 30, 2025 [3] - The offering is made only by means of a prospectus, which will be filed with the SEC and available on their website [3] - The warrants are issued in a private placement and have not been registered under the Securities Act, limiting their sale in the U.S. [4] Company Overview - Lexaria's DehydraTECH™ technology enhances drug delivery through oral administration, improving bio-absorption and reducing side effects [6] - The company holds a robust intellectual property portfolio with 50 patents granted and additional patents pending worldwide [6]

Key Points - Top KingWin Ltd (NASDAQ: WAI) shares increased by 87.4% to $5.92 in pre-market trading after announcing a sales contract with Walker Times International for 10,000 units of TK-D2C AI Robots [1] - MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) saw a significant rise of 242% to $4.96 in pre-market trading due to plans to double the installation of its Authentication Device "Orb" to 200 stores in collaboration with "World" [5] - New Era Energy & Digital, Inc. (NYSE: NUAI) surged 37.6% to $1.90 in pre-market trading after a previous 50% increase [5] - Datavault AI Inc. (NASDAQ: DVLT) gained 33% to $1.11 in pre-market trading after securing a $150 million investment in Bitcoin to build a supercomputer [5] - Harrison Global Holdings Inc. (NASDAQ: BLMZ) increased by 28.3% to $0.2288 in pre-market trading [5] - Lexaria Bioscience Corp. (NASDAQ: LEXX) rose 28.1% to $1.96 in pre-market trading after ending its "Capital on Demand" Sales Agreement with JonesTrading Institutional Services LLC [5] - Safety Shot, Inc. (NASDAQ: SHOT) gained 14.8% to $0.2868 in pre-market trading following a partnership with Monarq Asset Management [5] - Diginex Limited (NASDAQ: DGNX) jumped 13.6% to $15.00 in pre-market trading after a previous decline of 16% [5] - GLOBALFOUNDRIES Inc. (NASDAQ: GFS) increased by 9.9% to $36.09 in pre-market trading [5] - American Rebel Holdings, Inc. (NASDAQ: AREB) surged 9.7% to $1.13 after announcing a 1-for-20 reverse stock split [5] - Kuke Music Holding Limited (NYSE: KUKE) dipped 30.5% to $0.8200 after acquiring a controlling interest in Naxos Music Group [5] - Wellgistics Health, Inc. (NASDAQ: WGRX) fell 24.3% to $0.7598 after announcing a $5 million public offering [5] - Wolfspeed, Inc. (NYSE: WOLF) shares decreased by 24% to $1.41 after a decline of around 17% on Thursday [5] - Concentrix Corporation (NASDAQ: CNXC) declined 20.5% to $43.73 after reporting worse-than-expected third-quarter adjusted EPS results and cutting FY25 adjusted EPS guidance [5] - DarioHealth Corp. (NASDAQ: DRIO) fell 18.9% to $11.10 after a previous jump of 44% following a strategic review [5] - N2OFF, Inc. (NASDAQ: NITO) declined 13.7% to $4.75 after stockholders approved the acquisition of MitoCareX Bio [5] - Legacy Education Inc. (NYSE: LGCY) fell 13.3% to $10.68 after reporting worse-than-expected fourth-quarter EPS results [5] - Apellis Pharmaceuticals, Inc. (NASDAQ: APLS) dipped 9.5% to $20.12 in pre-market trading [5] - Pharming Group N.V. (NASDAQ: PHAR) fell 9.1% to $13.45 in pre-market trading [5] - Kingsoft Cloud Holdings Limited (NASDAQ: KC) decreased by 7.5% to $16.15 after announcing the pricing of an upsized HK$2,802 million offering of new shares [5]

Core Insights - Several small-cap stocks experienced significant gains in after-hours trading due to corporate updates, clinical developments, and strategic shifts Company Summaries MEDIROM Healthcare Technologies Inc. (MRM) - Shares surged 282.8% to $5.55 after announcing plans to double the installation of its biometric authentication device "Orb" to 200 stores in collaboration with "World" [2] - Closed at $1.45 during regular trading, down 7.05%, with a trading volume of over 31.5 million shares [3] - The stock has a 52-week range of $0.34 to $5.30, highlighting the scale of its overnight move [3] Lexaria Bioscience Corp. (LEXX) - Shares rose 45.75% to $2.23 following renewed interest in its DehydraTECH drug delivery platform, which enhances GLP-1 drug delivery [4] - Closed at $1.53, up 7.75%, with a volume exceeding 7.5 million shares [5] - The stock's 52-week range is $0.775 to $3.392, with Thursday's close near the midpoint [5] Safety Shot, Inc. (SHOT) - Shares increased 12% to $0.28 after announcing a partnership with Monarq Asset Management to manage its BONK Holdings Treasury [6] - Closed at $0.25, down 9.06%, with a trading volume of over 15.4 million shares [7] - The stock has a 52-week range of $0.23 to $1.35, with the after-hours price near the lower end [7] Aquestive Therapeutics, Inc. (AQST) - Shares rose 11.41% to $5.86 following favorable regulatory news regarding its oral epinephrine candidate, Anaphylm [8] - Closed at $5.26, down 2.95%, with a volume of over 3.6 million shares [9] - The stock's 52-week range is $2.12 to $6.00, with the after-hours price near the upper end [9] Ovid Therapeutics Inc. (OVID) - Shares increased 4.26% to $1.47 after reaching a 52-week high during regular trading, driven by progress in its neurological pipeline [10] - Closed at $1.41, up 0.71%, with a trading volume of over 2.4 million shares [11] - The stock has a 52-week range of $0.2430 to $1.47, with Thursday's close at the top end of its recent performance band [11]

Core Insights - The study conducted by Lexaria Bioscience Corp. indicates that the DehydraTECH processing of semaglutide enhances its brain biodistribution compared to conventional formulations, potentially improving safety and efficacy [1][3][6] Study Findings - The primary objective of the study was to assess whether DehydraTECH processing significantly improves the biodistribution of semaglutide [2] - The DehydraTECH-FTS composition showed a higher apparent trend in brain biodistribution across all tested doses, with the 5mg DehydraTECH-FTS achieving greater brain semaglutide fluorescent signal intensity than the 15mg Rybelsus® equivalent [3][5] - Fluorescent imaging revealed that all three DehydraTECH doses tested had higher fluorescence in key brain regions compared to naïve and vehicle groups, while only the highest dosage of Rybelsus® surpassed these groups [5] Mechanism and Implications - The study suggests that enhanced brain biodistribution may be linked to the pharmacodynamic performance of GLP-1 drugs, which are known to interact with brain neurochemistry [6][7] - Semaglutide's ability to regulate body weight through GLP-1 receptor activation in the brain could lead to appetite suppression without common side effects like nausea [6] - Lexaria's findings may support the development of safer and more effective GLP-1 drugs in the future [8] Research Methodology - The preclinical pilot study involved Sprague Dawley rats and utilized non-invasive whole-body imaging and ex vivo organ analysis to evaluate the biodistribution of oral semaglutide [9][12] - A total of 25 male rats were used, with 22 allocated for dosing and 3 as untreated controls, examining both DehydraTECH and Rybelsus® equivalent compositions [12][13] Technology Overview - DehydraTECH is a patented drug delivery platform that enhances the absorption and effectiveness of various drugs, including those that cross the blood-brain barrier [14]

Core Viewpoint - Lexaria Bioscience Corp. will participate in the 27th Annual H.C. Wainwright Global Investment Conference from September 8th to September 10th, 2025, highlighting its innovative drug delivery technology, DehydraTECH [1][3]. Company Overview - Lexaria Bioscience Corp. is a global innovator in drug delivery platforms, focusing on improving the way drugs enter the bloodstream through oral delivery [1][3]. - The company operates a licensed in-house research laboratory and holds a strong intellectual property portfolio with 50 patents granted and additional patents pending worldwide [3]. Technology Highlights - DehydraTECH™ is Lexaria's patented drug delivery formulation and processing platform that enhances bio-absorption, reduces side effects, and improves drug delivery across the blood-brain barrier [3].

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]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Lexaria Bioscience Corp.'s unaudited interim consolidated financial statements for the period ended May 31, 2025, covering balance sheets, operations, equity, cash flows, and detailed notes on business and accounting policies [Consolidated Balance Sheets](index=2&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Highlights (May 31, 2025 vs. August 31, 2024) | Metric | May 31, 2025 | August 31, 2024 | | :-------------------------------- | :----------- | :-------------- | | Total Current Assets | $5,806,778 | $7,897,986 | | Total Non-current Assets | $934,588 | $969,803 | | TOTAL ASSETS | $6,741,366 | $8,867,789 | | Total Current Liabilities | $1,488,131 | $1,099,419 | | TOTAL LIABILITIES | $1,574,845 | $1,208,738 | | Total Stockholders' Equity | $5,166,521 | $7,659,051 | - Total assets decreased from **$8.87 million** to **$6.74 million**, and total stockholders' equity decreased from **$7.66 million** to **$5.17 million**, indicating a reduction in the company's overall financial position[13](index=13&type=chunk)[14](index=14&type=chunk) [Consolidated Statements of Operations and Other Comprehensive Loss](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20OTHER%20COMPREHENSIVE%20LOSS) Consolidated Statements of Operations Highlights (Nine Months Ended May 31) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | | Revenue | $531,923 | $380,278 | +39.88% | | Gross profit | $529,203 | $375,456 | +40.95% | | Total operating expenses | $9,721,343 | $3,925,522 | +147.64% | | Loss from operations | $(9,192,140) | $(3,550,066) | +158.93% | | Net loss | $(9,214,206) | $(3,622,083) | +154.40% | | Basic and diluted loss per share | $(0.53) | $(0.32) | +65.63% | - Revenue increased significantly by **39.88%** for the nine months ended May 31, 2025, compared to the prior year, but this was overshadowed by a substantial **147.64%** increase in total operating expenses, leading to a **154.40%** increase in net loss[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Statements of Stockholders' Equity](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) Stockholders' Equity Changes (Nine Months Ended May 31, 2025) | Metric | August 31, 2024 | May 31, 2025 | | :-------------------------------- | :-------------- | :----------- | | Common Stock Shares | 15,810,205 | 19,559,179 | | Common Stock Amount | $15,810 | $19,559 | | Additional Paid-in Capital | $59,599,178 | $66,378,362 | | Accumulated Deficit | $(51,558,772) | $(60,764,775)| | Total Stockholders' Equity | $7,659,051 | $5,166,521 | - The company issued **3,748,974 common shares** and raised significant additional paid-in capital, but the accumulated deficit increased by **$9.2 million**, leading to a decrease in total stockholders' equity[18](index=18&type=chunk)[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Consolidated Cash Flow Highlights (Nine Months Ended May 31) | Cash Flow Activity | 2025 | 2024 | | :-------------------------------- | :------------- | :------------- | | Operating Activities | $(7,807,889) | $(3,067,344) | | Investing Activities | $(85,141) | $(119,018) | | Financing Activities | $6,046,163 | $10,315,207 | | Net change in cash for the period | $(1,908,124) | $7,106,979 | | Cash at end of period | $4,591,761 | $8,459,081 | - Net cash used in operating activities significantly increased to **$7.8 million** in 2025 from **$3.1 million** in 2024, while cash provided by financing activities decreased from **$10.3 million** to **$6.0 million**, resulting in a net decrease in cash for the period[21](index=21&type=chunk) [Notes to the Interim Consolidated Financial Statements](index=6&type=section&id=NOTES%20TO%20THE%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - Lexaria Bioscience Corp. is a biotechnology company focused on enhancing the bioavailability of active pharmaceutical ingredients (API) using its proprietary DehydraTECH drug delivery technology, with a current focus on GLP-1 and GIP drugs[24](index=24&type=chunk) - The company's recurring losses and negative net cash flows raise substantial doubt about its ability to continue as a going concern, with existing cash expected to fund operations only through **Q3 fiscal year 2026**[27](index=27&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Revenue is primarily generated from licensing contracts for DehydraTECH technology and third-party contracted manufacturing of DehydraTECH-enhanced products[25](index=25&type=chunk) Revenue Breakdown (Nine Months Ended May 31) | Revenue Type | 2025 | 2024 | | :------------- | :--------- | :--------- | | IP Licensing | $522,000 | $373,990 | | B2B | $9,923 | $5,388 | | Other | $- | $900 | | Total | $531,923 | $380,278 | - Two customers accounted for **100%** of consolidated revenues in the nine months ended May 31, 2025, highlighting significant customer concentration[67](index=67&type=chunk) Intellectual Property, Net (May 31, 2025 vs. August 31, 2024) | Metric | May 31, 2025 | August 31, 2024 | | :---------------- | :----------- | :-------------- | | Balance – beginning | $516,676 | $462,625 | | Additions | $60,496 | $145,591 | | Impairment | $(33,540) | $(57,836) | | Amortization | $(27,212) | $(33,704) | | Balance – ending | $516,420 | $516,676 | - The company recognized an impairment loss of **$33,540** on abandoned patent applications during the nine months ended May 31, 2025[79](index=79&type=chunk) Issuances of Common Shares and Warrants (Nine Months Ended May 31, 2025) | Event | Shares Issued | Gross Proceeds | Net Proceeds | | :-------------------------------- | :------------ | :------------- | :----------- | | April 28, 2025 Equity Offering | 2,000,000 | $2.0 million | $1.7 million | | February 2025 ATM Offering | 6,585 | - | $11,720 | | October 16, 2024 Equity Offering | 1,633,987 | $5.0 million | $4.5 million | | October 2024 ATM Offering | 8,402 | $26,146 | - | - Stock-based compensation expense increased to **$736,770** for the nine months ended May 31, 2025, from **$395,726** in the prior year, reflecting increased equity awards[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Lexaria's financial condition, operations, DehydraTECH technology, R&D, financings, and substantial going concern risk [Company Overview](index=17&type=section&id=Company%20Overview) - Lexaria's core business is its DehydraTECH drug delivery platform, designed to improve the bioavailability of Active Pharmaceutical Ingredients (API) into the bloodstream and brain tissue, applicable across pharmaceuticals, foods, beverages, cosmetics, and nutraceuticals[105](index=105&type=chunk) [Research & Development](index=17&type=section&id=Research%20%26%20Development) - DehydraTECH-enhanced liraglutide and certain CBD formulations outperformed Rybelsus® in lowering blood sugar and controlling body weight in a **12-week GLP-1 Diabetes Animal Study (WEIGHT-A24-1)**[106](index=106&type=chunk) - A human pilot study (GLP-1-H24-3) on DehydraTECH-enhanced tirzepatide showed a **47% reduction in adverse events**, comparable blood glucose reduction, and increased insulin levels compared to Zepbound® injections[108](index=108&type=chunk)[122](index=122&type=chunk) - The Australian Phase 1b **12-week chronic clinical study (GLP-1-H24-4)** for DehydraTECH formulated cannabidiol, semaglutide, and tirzepatide has completed participant enrollment, with full results expected in **Q4 calendar-2025**[109](index=109&type=chunk)[123](index=123&type=chunk) - A human pilot study (GLP-1-H25-5) on DehydraTECH-enhanced liraglutide showed a **22.7% reduction in adverse events**, including a **67% reduction in nausea**, compared to Saxenda® injections, supporting a potential 505(b)2 new drug application pathway[110](index=110&type=chunk)[125](index=125&type=chunk) - The FDA granted a 'Study May Proceed' letter for the HYPER-H23-1 Phase 1b IND trial for DehydraTECH-CBD to reduce hypertension, but the study is on hold due to budgetary constraints[129](index=129&type=chunk) [Financings](index=18&type=section&id=Financings) - The company completed several equity offerings, including a **$2.0 million** gross proceeds offering in April 2025 and a **$5.0 million** gross proceeds offering in October 2024, along with ATM offerings[112](index=112&type=chunk)[115](index=115&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) - John Docherty was re-engaged as President and Chief Science Officer, and a Scientific Advisory Board was created, comprising Dr. Michael Gibson, Dr. Karen Aust, and Dr. Philip Ainslie[113](index=113&type=chunk)[116](index=116&type=chunk) [Patents](index=18&type=section&id=Patents) - Lexaria's patent portfolio includes applications and grants for DehydraTECH compositions and methods to improve API bioavailability and palatability for cannabinoids, fat-soluble vitamins, NSAIDs, and nicotine[113](index=113&type=chunk) - Patents have been filed specifically for DehydraTECH with GLP-1/GIP drugs to support ongoing cardiometabolic clinical research and for diabetes/weight loss[114](index=114&type=chunk) [Off-Balance Sheet Arrangements](index=21&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company has no off-balance sheet arrangements that are material to its financial condition or results of operations[130](index=130&type=chunk) [Critical Accounting Policies and Estimates](index=21&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - Management did not identify any new critical accounting estimates for the nine months ended May 31, 2025, beyond those disclosed in the annual report[132](index=132&type=chunk) [Funding Requirements](index=22&type=section&id=Funding%20Requirements) - Expenditures are expected to increase due to ongoing R&D programs, particularly animal and human clinical trials for DehydraTECH formulations of GLP-1 drugs and hypertension treatment[133](index=133&type=chunk) - The company incurred net losses of **$9.2 million** and **$3.6 million** for the nine months ended May 31, 2025 and 2024, respectively, primarily funded through common stock sales[134](index=134&type=chunk)[135](index=135&type=chunk) [Results of Operations for the Period Ended May 31, 2025, and May 31, 2024](index=22&type=section&id=Results%20of%20Operations%20for%20the%20Period%20Ended%20May%2031%2C%202025%2C%20and%20May%2031%2C%202024) Key Financial Results (Nine Months Ended May 31) | Metric | 2025 | 2024 | Change | | :-------------------------- | :----------- | :----------- | :----------- | | Revenue | $531,923 | $380,278 | +$151,645 | | Cost of goods sold | $(2,720) | $(4,822) | +$2,102 | | Research & development | $(6,356,637) | $(1,393,359) | $(4,963,278) | | Consulting fees & salaries | $(1,922,449) | $(1,002,473) | $(919,976) | | Legal and professional | $(449,890) | $(619,064) | +$169,174 | | Other general & administrative | $(992,367) | $(910,626) | $(81,741) | | Other income (loss) | $(22,066) | $(72,017) | +$49,951 | | Net Loss | $(9,214,206) | $(3,622,083) | $(5,592,123) | - Revenue increased by **$151,645**, driven by higher license fees and B2B sales, but R&D expenses surged by **$4.96 million** due to clinical trials and GLP-1 studies, and consulting fees/salaries increased by **$919,976** due to executive transitions and equity awards[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Legal and professional fees decreased by **$169,174** due to lower accounting and financing-related costs, while other general and administrative expenses increased by **$81,741**, mainly due to foreign currency transaction losses[143](index=143&type=chunk)[144](index=144&type=chunk) [Liquidity and Financial Condition](index=23&type=section&id=Liquidity%20and%20Financial%20Condition) Working Capital and Cash Flows (May 31, 2025 vs. August 31, 2024) | Metric | May 31, 2025 | August 31, 2024 | | :-------------------------------- | :----------- | :-------------- | | Net working capital | $4,318,647 | $6,798,567 | | Cash flows used in operating activities | $(7,807,889) | $(3,067,344) | | Cash flows used in investing activities | $(85,141) | $(119,018) | | Cash flows provided by financing activities | $6,046,163 | $10,315,207 | | Net change in cash for the period | $(1,908,124) | $7,106,979 | - Net cash used in operating activities increased significantly to **$7.8 million**, primarily due to a **$5.6 million** increase in net loss, partially offset by non-cash expenses and working capital changes[146](index=146&type=chunk) - Net cash from financing activities decreased to **$6.0 million** from **$10.3 million**, mainly due to lower proceeds from common share sales and fewer warrant exercises[148](index=148&type=chunk) - The company's recurring losses and negative net cash flows raise substantial doubt about its ability to continue as a going concern, with current cash expected to fund operations only through **Q3 fiscal year 2026**[149](index=149&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk) [Item 3. Controls and Procedures](index=25&type=section&id=Item%203.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of May 31, 2025, with no material changes in internal controls over financial reporting during the quarter - Disclosure controls and procedures were deemed effective at a reasonable assurance level as of May 31, 2025[157](index=157&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended May 31, 2025[159](index=159&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, nor are its directors, executive officers, or affiliates in adverse proceedings - The company is not party to any material, pending, or existing legal proceedings[160](index=160&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The primary risk is substantial doubt about the company's ability to continue as a going concern, potentially impacting future financing and leading to investor losses - There is substantial doubt about the company's ability to continue as a going concern, which may affect its ability to obtain future financing and could require it to curtail or cease operations[162](index=162&type=chunk)[163](index=163&type=chunk) - If the company is unable to continue as a going concern, it may have to liquidate assets, and investors could lose all or part of their investment[164](index=164&type=chunk) [Item 2. Recent Sales of Unregistered Equity Securities](index=26&type=section&id=Item%202.%20Recent%20Sales%20of%20Unregistered%20Equity%20Securities) The company issued **70,000** share purchase warrants to H.C. Wainright & Co. LLC nominees for equity financing under a registration exemption during the quarter - The company issued **70,000** share purchase warrants with an exercise price of **$1.25**, expiring April 24, 2030, to nominees of H.C. Wainright & Co. LLC as consideration for equity financing[165](index=165&type=chunk) [Item 3. Rule 10b5-1 Trading Plans](index=26&type=section&id=Item%203.%20Rule%2010b5-1%20Trading%20Plans) No insiders entered into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended May 31, 2025 - No insiders, employees, or consultants entered into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended May 31, 2025[166](index=166&type=chunk) [Item 4. Exhibits, Financial Statement Schedules](index=26&type=section&id=Item%204.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed as part of the Form 10-Q, including articles of incorporation, material contracts, and Sarbanes-Oxley Act certifications - The report includes financial statements, articles of incorporation, material contracts (e.g., Securities Purchase Agreement, Change Order to Project Agreement with Novotech), and Section 302 and 906 certifications[167](index=167&type=chunk)[169](index=169&type=chunk)

Core Insights - Lexaria Bioscience Corp. has received 2 new international patents, increasing its total patent portfolio to 50 [1][2] - The new patents include one for treating epilepsy and another for sublingual delivery of nicotine, enhancing Lexaria's intellectual property protection [2][3] - The epilepsy drug market was valued at US$9.5 billion in 2023 and is projected to exceed US$15 billion by 2032, indicating significant growth potential [4] - The global retail oral nicotine market was valued at US$5.5 billion in 2023 and is expected to grow at a rate of 26% per year until at least 2030 [5] Company Developments - Lexaria's new patent for epilepsy treatment broadens its intellectual property protection outside the USA, where it already holds 6 existing patents [2] - The new patent for sublingual delivery of nicotine adds to existing patents in the USA and Canada, further solidifying Lexaria's position in the nicotine market [3] - The new patents are seen as a strategic move to enhance commercial opportunities within the pharmaceutical industry and to build long-term value for shareholders [2] Market Context - Approximately 50 million people in the US are affected by epilepsy, highlighting a substantial patient population for potential treatments [4] - The nicotine pouch market, where Lexaria's DehydraTECH™ technology has shown absorption benefits, is expected to reach US$25.4 billion in revenue by 2030 [5] - Lexaria's DehydraTECH™ technology improves the delivery of active pharmaceutical ingredients, demonstrating increased bio-absorption and effectiveness across the blood-brain barrier [6]

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]