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].
Lexaria Bioscience(LEXX) - 2023 Q4 - Annual Report