Financial Performance - Revenue for the year ended August 31, 2021, was $722,738, an increase of 88% from $384,543 in 2020[245]. - Total revenues for the year ended August 31, 2021, were $722,738, an increase of 88% from $384,543 in 2020[379]. - Licensing revenues increased by over 40% to $334,974 in 2021, compared to $232,909 in 2020[250]. - The primary source of revenue, Lexaria Hemp, saw a 153% increase in B2B processing sales, contributing approximately 53% of total annual revenues[247]. - Gross profit for the year was $547,392, compared to $215,415 in the previous year, reflecting a significant improvement in profitability[292]. - Licensing revenue reached $334,974 in 2021, up from $232,909 in 2020, while B2B product revenues increased to $383,179 from $151,634[380]. Expenses and Losses - Research and development expenses increased significantly to $1,262,895 in 2021 from $387,074 in 2020, reflecting a rise of 226%[245]. - General and administrative expenses increased by $988,645 to $3,982,704 in the year ended August 31, 2021, driven by increased marketing and investor relations efforts[256]. - Total operating expenses increased to $6,234,244 in 2021 from $4,364,212 in 2020, primarily due to higher research and development costs[293]. - The company incurred significant net losses of approximately $4.2 million and $4.1 million for the two years ended August 31, 2021, and August 31, 2020, respectively[262]. - The net loss for the year was $4,186,148, slightly higher than the net loss of $4,084,613 in 2020, with a loss per share of $0.95 compared to $1.47 in the prior year[293]. - The company anticipates continued operational expenses and net losses in the upcoming 12 months, influenced by the complexity of R&D studies and licensing agreements[304]. Funding and Cash Position - Lexaria raised approximately $15 million in funding during fiscal 2021, enabling the completion of ten studies and the initiation of seven additional studies[233]. - The company maintained a positive working capital position despite increased expenditures, particularly in R&D programs[266]. - As of August 31, 2021, the company had cash and cash equivalents of approximately $10.9 million to settle $153,276 of current liabilities[264]. - Cash and cash equivalents at the end of the year were approximately $10.9 million, up from $1.3 million at the end of 2020, indicating improved liquidity[296]. - The company raised $9,471,497 from a public offering and $4,015,043 from warrant exercises during the fiscal year[305]. Research and Development - Lexaria plans to initiate Investigational New Drug trials for DehydraTECH in the US during fiscal 2022, focusing on hypertension and antiviral drug delivery[254]. - Research and development expenses surged to $1,262,895 in 2021, up from $387,074 in 2020, highlighting the company's focus on innovation[293]. - Research and development costs are expensed as incurred, including both in-house and third-party contract expenditures[339]. Intellectual Property - The company has over 50 patents pending internationally, reflecting progress in building its intellectual property portfolio[259]. - The company plans to pursue technology licensing opportunities to generate profitable revenue streams and has multiple patent applications pending globally[234]. - The company reported a total patent balance of $364,623 as of August 31, 2021, up from $292,000 in 2020, reflecting an addition of $79,493 during the year[355]. Operational Changes - The company discontinued its direct-to-consumer demonstration products to focus on B2B production, closing its web sales platform[248]. - The company has established relationships with several consumer products companies in the CBD and nutraceuticals sectors, leveraging its proprietary DehydraTECH technology[302]. Assets and Liabilities - Total assets as of August 31, 2021, were $13,266,817, significantly higher than $2,828,238 in 2020[383]. - The working capital balance increased substantially to $12,289,664 in 2021 from $1,700,044 in 2020[265]. - Accounts payable and accrued liabilities totaled $100,723 as of August 31, 2021, compared to $86,920 in 2020, indicating an increase of approximately 15.5%[357]. - The company has lease liabilities totaling $89,393 as of August 31, 2021, down from $125,431 in 2020[386]. Stock and Equity - The company completed a public offering of 2,102,856 units at $5.25 each, resulting in net proceeds of $9,471,497 after fees[360]. - A total of 610,189 common shares were issued from warrant exercises, generating proceeds of $4,015,043 during the fiscal year[361]. - The company granted 300,000 warrants with an exercise price of $9.00, valued at $785,895, as part of consulting agreements[361]. - The company established an Equity Incentive Plan allowing for up to 510,433 stock options to be granted, reflecting an increase of 249,143 options[370]. - The company granted stock options totaling 84,900 at an exercise price of $5.41 during the year ended August 31, 2021[373]. - The intrinsic value of stock options that vested during the fiscal year was $68,713, based on the closing stock price exceeding the exercise price[377]. - The company reported a balance of 2,447,275 warrants outstanding as of August 31, 2021, with a weighted average exercise price of $8.00[368].
Lexaria Bioscience(LEXX) - 2021 Q4 - Annual Report