Research and Development - Lexaria incurred $696,178 in R&D expenditures for the quarter ended February 28, 2023, compared to $275,686 in the same quarter of 2022, reflecting a significant increase in investment in research activities [80]. - Lexaria's primary research program is focused on investigating CBD for the reduction of hypertension, with an IND filing anticipated in late fiscal 2023 or early 2024 [81]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for clinical trials targeting hypertension, dementia, and diabetes [95]. - Research and development expenditures increased by $791,272 year-over-year, totaling $1,525,667 for the period ended February 28, 2023, focusing on DehydraTECH-CBD for hypertension treatment [102]. - Lexaria has engaged in contract R&D for third parties interested in evaluating DehydraTECH in their products, expanding its market reach [79]. Financial Performance - The company reported net losses of $3,079,944 and $3,452,155 for the six months ended February 28, 2023, and 2022, respectively, highlighting ongoing financial challenges [96]. - Net loss for the six months ended February 28, 2023, was $3,079,944, a decrease of $372,211 from the net loss of $3,452,155 in the same period of 2022 [100]. - Cash flows used in operating activities were $2,473,590 for the six months ended February 28, 2023, compared to $2,443,593 in the prior year, indicating a slight increase in cash used [106]. - The company incurred net losses of approximately $7.4 million and $4.2 million in the past two fiscal years, with expectations of continued significant expenditures for R&D and operational activities [110]. Intellectual Property - The company has 28 patents granted internationally and approximately 50 patents pending worldwide, indicating a strong focus on intellectual property development [73]. Drug Development - The FDA has agreed to Lexaria's proposal to pursue a 505(b)(2) NDA regulatory pathway for DehydraTECH-CBD, marking a significant step in the drug development process [81]. - Results from the hypertension study HYPER-H21-4 indicated a sustained drop in blood pressure in hypertensive patients following multiple weeks of oral CBD therapy [82]. - Lexaria's DehydraTECH technology improves the delivery of bioactive compounds, enhancing the absorption of CBD compared to pharmaceutical-grade alternatives [83]. Cash and Equity - As of February 28, 2023, the company had approximately $3.3 million in cash, expected to fund R&D programs, operating expenses, and capital expenditures for the next 12 months [99]. - The company has entered into an ATM Offering equity distribution agreement with Maxim Group LLC, allowing for the sale of shares with an aggregate offering price of up to $5,925,000 [98]. - The company has sold 34,652 shares under an ATM agreement for gross proceeds of $114,546 as of April 1, 2023, with $5,810,544 remaining eligible for sale [112]. Expenses - Legal and professional fees decreased by $168,007 during the period compared to the prior year, attributed to reduced patent and trademark filings [104]. - Other general and administrative expenses decreased by $363,000, with advertising and promotion costs down by $140,000 [105]. COVID-19 Impact - The company has not experienced any material impact from COVID-19 on its financial statements or operations to date [116].
Lexaria Bioscience(LEXX) - 2023 Q2 - Quarterly Report