Research and Development - Lexaria incurred $752,095 in R&D expenditures for the quarter ended May 31, 2022, compared to $454,443 in May 2021, reflecting a year-over-year increase of approximately 65.6%[79] - The Company is advancing R&D activities in various areas, including cannabidiol for hypertension, nicotine for oral pouches, and antivirals for COVID-19[77] - Research and development expenditures increased by $663,387 to $1,486,489 for the nine months ended May 31, 2022, compared to $823,102 in 2021[119] - Cash flows used in operating activities increased by $792,000 for the nine months ended May 31, 2022, compared to the same period in 2021, primarily due to increased R&D expenditures[129] - The company expects to continue incurring losses in the short term as it executes its business plan and R&D expenditures[132] Clinical Studies - The HYPER-H21-4 human clinical hypertension study involves 60 volunteers and aims to evaluate the efficacy of DehydraTECH-CBD, with dosing concluding in July 2022[82] - In the HYPER-H21-3 study, DehydraTECH-CBD treatment significantly reduced pulmonary artery systolic pressure by about 5 mmHg or 41% overall (p=0.045) in male participants under hypoxic conditions[84] Financial Performance - The company reported a net loss of $5,870,492 for the nine months ended May 31, 2022, compared to a net loss of $2,861,483 for the same period in 2021, reflecting an increase of $3,009,009[119] - Revenue for the nine months ended May 31, 2022, was $144,247, a decline of $547,470 from $691,717 in the same period in 2021[119] - The company has incurred recurring losses and negative cash flows, with net losses of $5,870,492 for the nine months ended May 31, 2022[117] Cash and Funding - As of May 31, 2022, the company had approximately $7.0 million in cash and $8.1 million in working capital, sufficient to fund operations for the next twelve months[134] - The company requires substantial cash for developing and patenting intellectual property across various market segments, potentially costing millions of dollars for each segment[135] - Full commercial exploitation of all market opportunities will necessitate significant funding from existing or new relationships, increasing revenue streams, or liquidity sources such as equity sales or debt issuance[136] - Cash requirements will fluctuate based on research program results and the needs of each pursued industry segment[137] - The progress of each segment will depend on available cash sources to execute individual business plans[137] Intellectual Property - Lexaria's patent portfolio includes over 50 pending applications worldwide, with successful patents granted in the US, Australia, Europe, India, Mexico, and Japan[92] - The Company was granted US Patent 11,311,559 for enhanced delivery of antiviral agents, marking its 25th patent granted worldwide[95] - The company recognized $81,000 in capitalized patent costs for the nine months ended May 31, 2022, compared to $79,000 in the same period in 2021[112] Market Activities - Lexaria's common stock was uplisted to the Nasdaq Capital Market under the symbol "LEXX" effective January 12, 2021[99] - 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[98] - Lexaria CanPharm completed the sale of its DehydraTECH technology rights for C$350,000 cash, a C$2,000,000 promissory note, and C$1,500,000 in shares[102] - The company anticipates increased licensing revenues in late 2022 and early 2023 as new licensees introduce products using DehydraTECH technology[122] Technology and Product Development - The DehydraTECH formulation delivered 74% more sildenafil into the bloodstream on average than the concentration-matched generic control formulation within four minutes after dosing[88] - Lexaria's DehydraTECH technology improves the delivery of bioactive compounds, enhancing the transport of Active Pharmaceutical Ingredients to the blood plasma and brain[76]
Lexaria Bioscience(LEXX) - 2022 Q3 - Quarterly Report