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].
Lexaria Bioscience(LEXX) - 2024 Q2 - Quarterly Report