Research and Development - Lexaria incurred $458,709 in R&D expenditures for the quarter ended November 30, 2021, compared to $192,261 in November 2020, reflecting a significant increase in investment in research activities [78]. - The company is advancing several R&D programs, including a human clinical trial for cannabidiol (CBD) aimed at reducing hypertension, with three trials completed in 2021 and another planned for Q2 2022 [77]. - Lexaria reported successful results from its HYPER-H21-2 human study of DehydraTECH-CBD, and received approval for the HYPER-H21-4 study, which will involve 60 volunteers over a 6-week period [79]. - Research and development expenditures increased by $266,448 to $458,709 for the period ended November 30, 2021, reflecting ongoing clinical trials for DehydraTECH formulations [107][110]. - The company anticipates increased operating losses and negative cash flows due to ongoing R&D programs and clinical trials [104]. Financial Performance - For the three months ended November 30, 2021, the company reported revenue of $13,880, a significant decline of 95.3% compared to $295,656 for the same period in 2020 [107]. - The net loss for the three months ended November 30, 2021, was $2,003,482, an increase of 182.5% from the net loss of $710,121 in the same period in 2020 [107]. - General and administrative expenses rose by $501,534 to $673,365, primarily due to an unrealized loss on marketable securities and non-cash stock-based compensation [111]. - The company has consistently incurred recurring losses and negative cash flows from operations, raising doubts about its ability to continue as a going concern [106]. Assets and Liquidity - The company had cash and cash equivalents of approximately $9.7 million as of November 30, 2021, expected to fund operations for the next 12 months [119]. - Current assets decreased from $12,442,940 on August 31, 2021, to $10,901,396 on November 30, 2021, indicating a decline in liquidity [113]. Business Operations - The company has made modifications to operations due to COVID-19, requiring remote work and adjusting business activities, although no material impact on financial statements has been reported [94][95]. - Licensing revenue from intellectual property was significantly impacted by delays in customer rollouts and the effects of COVID-19, leading to a decline in usage fees [108]. - The company plans to evaluate various funding alternatives to maintain operations and expand its patent portfolio, with no assurance of favorable terms [118]. Intellectual Property and Market Position - The company has over 50 patent applications pending worldwide and has received its first patent approval in Mexico during the quarter ended November 30, 2021 [84]. - Lexaria's technology, DehydraTECH, enhances the delivery of bioactive compounds and is applicable across various categories, including pharmaceuticals, foods, beverages, and cosmetics [76]. - The company is focusing on pharmaceutical applications, with an increasing proportion of resources allocated to this area as highlighted in the fiscal 2022 first quarter [78]. Stock and Capital Market Activity - Lexaria's common stock was uplisted to the Nasdaq Capital Market under the symbols "LEXX" and "LEXXW" effective January 12, 2021, following a reverse stock split [89]. - The company completed a public offering on January 14, 2021, issuing 2,102,856 shares at $5.25 per share, resulting in net proceeds of $9,471,497 after fees [88]. - Lexaria's asset sale on December 9, 2020, involved the licensing rights of its DehydraTECH technology for non-pharmaceutical products, generating C$350,000 in cash and a promissory note of C$2,000,000 [92][93].
Lexaria Bioscience(LEXX) - 2022 Q1 - Quarterly Report