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].
Lexaria Bioscience(LEXX) - 2024 Q1 - Quarterly Report