Intellectual Property and Patents - The company has over 60 patent applications pending worldwide, with 18 patents granted to date[77][82]. - The company is investigating national and international opportunities for expanding its intellectual property portfolio[80]. - The company has filed for patent protection for additional compounds, including phosphodiesterase inhibitors and antivirals[84]. - The company is focused on developing strategic partnerships for its patented DehydraTECH technology in exchange for licensing fees and royalties[80]. Financial Performance - The Company reported a revenue of $487,662 for the six months ended February 28, 2021, compared to $99,631 for the same period in 2020, reflecting an increase of $388,031[124]. - Product revenues amounted to $231,718, while licensing usage fees reached $255,844, indicating significant growth in intermediate product sales and related licensing fees[125]. - The net loss for the six months ended February 28, 2021, was $316,931, a decrease of $1,605,324 compared to a net loss of $1,922,255 for the same period in 2020[124]. - For the period ended February 28, 2021, the company reported intellectual property licensing revenue of $231,718, up from $64,184 in the previous year, and product revenues of $255,844, compared to $99,191 in 2020[128]. Research and Development - During the quarter ended February 28, 2021, the company announced significant improvements in drug delivery using DehydraTECH technology, with a 54% improvement for Darunavir and a 16% improvement for Efavirenz[85][86]. - The company plans to conduct additional human clinical studies in 2021 related to hypertension, focusing on the effectiveness of DehydraTECH-processed CBD[80][85]. - The Company is conducting multiple studies on the pharmacokinetic benefits of its DehydraTECH technology, with results expected in the coming months[111]. - The Company is exploring new R&D programs to enhance its technology and expand product applications, which may lead to significant variations in R&D budgets[114]. Funding and Capital - The company raised approximately $9,629,490 from a public offering of 1,828,571 shares at a price of $5.25 per share, with plans to allocate $3,700,000 for research and development[91][93]. - The Company anticipates that the net proceeds of $9,471,495 from a public offering will fund operations for at least the next twelve months[123]. - The company is evaluating various funding alternatives to maintain operations and expand its patent portfolio, with no assurance that adequate funding will be available[139]. - Net cash provided from financing activities was $9,448,322, primarily from an underwritten public offering that closed on January 12, 2021[137]. Operational Changes and Expenses - A reverse stock split of 1-for-30 was executed to meet Nasdaq's minimum stock price requirement[89]. - The Company has implemented cost containment initiatives, including the dismissal of one employee and the termination of contracts with two consultants[99]. - General and administrative expenses increased by $134,582 during the period, primarily due to outreach programs, patent filings, and contracted incentive payments[129]. - Professional fees increased by $72,645 during the period due to increased patent and trademark filings and advisory services[132]. Cash Flow and Working Capital - The company's working capital increased significantly to $10,559,499 as of February 28, 2021, compared to $1,700,044 on August 31, 2020, marking the highest working capital in the company's history[132]. - The company had $9,346,933 in cash and cash equivalents as of February 28, 2021, projecting sufficient resources to continue operations for at least the next twelve months[140]. - Cash flows used in continuing activities were $1,742,757 for the period, compared to $1,308,963 in the same period in 2020, largely due to increased professional fees and other costs[135]. Future Outlook - The company expects to continue incurring losses in the short term as it executes its business plan focused on research and development expenditures[138]. - The Company closed the sale of its non-pharmaceutical THC-related assets for C$350,000 in cash and additional equity payments, totaling C$2,000,000 in promissory notes[97]. - The Company received CDN$40,000 from the Canada Emergency Business Account and $30,732 (CDN$42,076) from the Canada Emergency Wage Subsidy program[106].
Lexaria Bioscience(LEXX) - 2021 Q2 - Quarterly Report