R&D Activities - Lexaria incurred $275,213 in R&D expenditures for the quarter ended February 28, 2022, compared to $176,398 in February 2021, reflecting a 56% increase year-over-year[75]. - The company is advancing several R&D activities, including a human clinical trial for cannabidiol (CBD) initiated in Q3 2022, and three human clinical trials concluded in calendar 2021[74]. - In February 2022, results from the PDE5-A21-1 animal study showed that the DehydraTECH formulation delivered 74% more sildenafil into the bloodstream compared to the generic control formulation[80]. - The HYPER-H21-4 study, initiated in April 2022, aims to evaluate the efficacy of DehydraTECH-CBD in treating hypertension with 60 volunteers participating[76]. - The company reported successful results from its HYPER-H21-2 human study of DehydraTECH-CBD in arterial stiffness in September 2021[76]. - The company continues to report progress on its R&D programs through public releases and filings, with results available on its website[82]. Financial Performance - For the six months ended February 28, 2022, the company reported a revenue of $44,530, a significant decline of $443,132 compared to $487,662 in the same period of 2021[111]. - Research and development expenditures increased by $365,736 to $734,395 for the six months ended February 28, 2022, compared to $368,659 in the prior year[111]. - The net loss for the six months ended February 28, 2022, was $3,452,156, which is an increase of $3,135,225 from a net loss of $316,931 in the same period of 2021[111]. - Cash flows used in operating activities increased by $723,000 for the six months ended February 28, 2022, compared to the same period in 2021, primarily due to increased expenditures on R&D and professional fees[119]. - The company anticipates increased expenditures related to ongoing R&D programs, particularly for clinical trials of DehydraTECH formulations, leading to expected operating losses and negative cash flows in the foreseeable future[107]. Cash and Assets - As of February 28, 2022, the company had cash and cash equivalents of approximately $8.4 million, which is expected to be sufficient to fund operations for the next 12 months[125]. - The company’s current assets decreased to $10,572,202 as of February 28, 2022, from $12,442,940 as of August 31, 2021[118]. - The company’s working capital as of February 28, 2022, was $10,406,660, down from $12,289,664 as of August 31, 2021[118]. Funding and Capital Concerns - The company has incurred recurring losses and negative cash flows from operations, with a net capital deficiency raising doubts about its ability to continue as a going concern[109]. - The company expects to continue evaluating various funding alternatives to maintain operations and expand its patent portfolio[123]. Stock and Market Activity - The company received net proceeds of $9,471,497 from a public offering that closed on January 14, 2021, involving the issuance of 2,102,856 shares priced at $5.25 each[91]. - Lexaria's common stock was uplisted to the Nasdaq Capital Market under the symbol "LEXX" effective January 12, 2021, after delisting from the Canadian Securities Exchanges[92]. Impact of COVID-19 - The COVID-19 pandemic has increased risks of lower revenues and higher losses, although the company has not experienced a material impact on its financial statements to date[96]. Patent Portfolio - Lexaria's patent portfolio includes over 50 applications pending worldwide, with successful patents granted in the US, Australia, Europe, India, Mexico, and Japan[84].
Lexaria Bioscience(LEXX) - 2022 Q2 - Quarterly Report