Lexaria Bioscience Reports Revenue Increase to $183,923 but Significant Net Losses of $2.7M

Lexaria Bioscience Corp. reported its financial results for the three months ending November 30, 2024, revealing a revenue increase to $183,923, up from $151,278 in the same period last year. The company’s gross profit also rose to $181,203, compared to $146,456 in the prior year. However, Lexaria continued to experience significant net losses, reporting a net loss of $2,706,628, which is a substantial increase from the $1,185,038 loss recorded in the same quarter of 2023. The increase in losses is attributed to heightened research and development expenses, which surged to $1,953,220 from $574,491 year-over-year.

The company’s total current assets increased to $8,825,741 as of November 30, 2024, compared to $7,897,986 at the end of August 2024. This growth was primarily driven by an increase in cash reserves, which rose to $8,078,254 from $6,499,885. Conversely, total liabilities decreased significantly to $399,718 from $1,208,738, largely due to a reduction in accounts payable and accrued liabilities. The company’s stockholders' equity also improved, reaching $9,394,056, up from $7,659,051.

Strategically, Lexaria has made notable advancements in its research and development initiatives, particularly in the area of drug delivery technology. The company completed a significant GLP-1 Diabetes Animal Study, which demonstrated that DehydraTECH-enhanced formulations outperformed existing treatments in controlling blood sugar and body weight. Additionally, Lexaria has initiated a Phase 1b clinical study in Australia to further investigate the efficacy of its DehydraTECH formulations in diabetic patients. The company also raised $4.3 million in net proceeds from the sale of securities during the quarter, which will support ongoing research efforts.

Operationally, Lexaria's customer base remains concentrated, with two customers accounting for 100% of revenues in the latest quarter, compared to 96% in the previous year. The company is shifting its focus from business-to-business sales to pharmaceutical applications, which is reflected in the increase in licensing revenue. The total number of common shares outstanding increased to 17,452,594 as of November 30, 2024, from 15,810,205 at the end of August 2024, following the issuance of new shares.

Looking ahead, Lexaria anticipates continued operational losses as it invests in its R&D programs, particularly in the development of its DehydraTECH technology for pharmaceutical applications. The company expects to incur significant expenses in the upcoming year, which may lead to fluctuations in net losses. Management believes that existing cash resources, combined with anticipated revenues from licensing agreements, will be sufficient to meet financial obligations for at least the next twelve months. However, the company acknowledges that its ability to continue as a going concern is contingent upon raising additional capital or achieving profitable operations.