Revenue and Growth - For the period ended November 30, 2019, the company reported total revenue of $62,082, an increase of 179.5% compared to $22,209 for the same period in 2018[93]. - Licensing revenues accounted for $51,750 of total revenues, reflecting delays in usage fee revenues from existing licensees awaiting product approval from Health Canada[94]. - The company expects increases in revenues during the 2020 calendar year as licensees ramp up production[95]. Expenses and Losses - General and administrative expenses increased by $223,372 to $978,992, primarily due to non-cash expenses related to share-based payments[97]. - The net loss for the period was $924,763, compared to a net loss of $701,391 in the previous year, indicating increased operational costs[93]. - Consulting fees increased by $242,991, primarily due to non-cash share-based payments of $233,166[99]. - Net cash used in operating activities was $762,845, compared to $564,314 in the same period of 2018, reflecting increased consulting and staff wage costs[102]. - The company expects to continue incurring losses in the short term due to ongoing research and development expenditures[105]. Research and Development - Research and development expenditures for the period were $107,463, up from $96,973 in 2018, indicating ongoing investment in R&D[82]. - The company plans to conduct in vivo absorption tests on CBD, which have yielded positive results in preliminary testing[83]. - Significant funding will be required to achieve objectives for developing and patenting intellectual property, potentially amounting to millions of dollars[108]. Financial Position - The company has no debt other than month-to-month receivables, indicating a strong liquidity position[98]. - Current assets as of November 30, 2019, were $1,911,485, up from $1,818,829 on August 31, 2019[100]. - Net working capital increased to $1,781,256 from $1,634,322, indicating a positive working capital position[100]. - As of November 30, 2019, the company had $1.3 million in cash and cash equivalents, sufficient for at least the next six months[107]. Capital Raising and Funding - The company closed a private placement of 1,823,745 units at $0.45 each, raising capital for future operations[78]. - Net cash provided from financing activities was $706,704, down from $1,649,190 in the same period of 2018[104]. - The company will evaluate various funding alternatives to maintain operations and expand its patent portfolio, with no assurance of favorable terms for additional funding[106]. Intellectual Property - The company has over 50 patent applications pending worldwide, demonstrating a strong focus on intellectual property protection[71].
Lexaria Bioscience(LEXX) - 2020 Q1 - Quarterly Report