What changed in this filing

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Item 1. Financial Statements

2023-01-18 compared with 2014-11-14 · 329 added, 2398 removed, 33 unchanged (99% of the section changed)

Financial Statements

Our unaudited interim consolidated financial statements for the

nine month period ended July 31, 2014 form part of this quarterly report.

are stated in United States Dollars (US$) and are prepared in accordance with

United States generally accepted accounting principles.

LEXARIA CORP.

CONSOLIDATED BALANCE

LEXARIA BIOSCIENCE CORP.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S.

Cash and cash

Marketable securities

Accounts receivable

Prepaid expenses and

Prepaid expenses and deposit

Total Current Assets

Oil and gas properties -Proven

Medical Marijuana Investments (Note 7)

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and

accrued liabilities

Loan payable (Note 8)

Due to a related party

Non-current assets, net

Right of use assets

Intellectual property

Property & equipment

Total Non-current Assets

Accounts payable and accrued liabilities

Lease payable

Total Current Liabilities

Asset Retirement Obligations (Note 9)

Lease payable

Total Long Term Liabilities

TOTAL LIABILITIES

1 unchanged sentence

Share Capital

200,000,000 common voting shares with a par value

of $0.001 per share

Issued and outstanding:

32,824,664 common shares at July 31, 2014 and

16,431,452 common shares at October 31, 2013

220,000,000 common voting shares with a par value of $ 0.001 per share Issued and outstanding:

5,950,998 common shares at November 30, 2022 and at August 31, 2022

Additional paid-in capital

( 40,854,472 )

( 39,098,528 )

Equity attributable to shareholders of the Company

Non-controlling Interest

Total Stockholders' Equity

TOTAL LIABILITIES AND STOCKHOLDERS'

The accompanying notes are an integral part of these

consolidated financial statements.

LEXARIA CORP.

CONSOLIDATED STATEMENTS OF

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

LEXARIA BIOSCIENCE CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S.

Dollars, except number of shares)

THREE MONTHS ENDED

NINE MONTHS ENDED

Natural gas and

Cost of revenue

Natural gas and

oil operating costs

Gross profit (loss)

Accounting and

Advertising and

Bank charges and

exchange (gain) loss

Consulting (note

Fees and Dues

Interest expense

from loan payable (note 6,8)

miscellaneous

Loss for the period before other

Joint venture equity loss pick-up

Cost of Goods Sold

Research and development

Office and administration

( 1,769,306 )

( 2,003,482 )

Net loss for the period

$ ( 1,769,306 )

$ ( 2,003,482 )

Net loss attributable to:

Common shareholders

$ ( 1,755,944 )

$ ( 1,993,157 )

Non-controlling interest

Basic and diluted loss per share

Weighted average number of common

shares outstanding

Weighted average number of common shares outstanding

Basic and diluted

The accompanying notes are an integral part of these

consolidated financial statements.

LEXARIA CORP.

CONSOLIDATED STATEMENT OF CASH

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

LEXARIA BIOSCIENCE CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S.

Nine Months Ended

Cash flows used in operating

Net (loss) for the period

Adjustments to reconcile net loss

to net cash used in operating activities:

Consulting - Stock based compensation

Foreign exchange (gain) loss

Joint venture equity

Change in operating assets and

(Increase)/Decrease in accounts receivable

Decrease in prepaid expenses and deposit

Increase in accounts payable and accrued liabilities

Net cash used in operating

Cash flows used in investing

Oil and gas property

acquisition and exploration costs

Medical Marijuana Investments

THREE MONTHS ENDED

Cash flows used in operating activities

$ ( 1,769,306 )

$ ( 2,003,482 )

Adjustments to reconcile net loss to

net cash used in operating activities:

Stock based compensation

Depreciation and amortization

Noncash right-of-use lease expense

Unrealized loss on marketable securities

Unrealized foreign exchange

Lease accretion

Change in operating assets and liabilities

Accounts receivable

Prepaid expenses and deposits

Accounts payable and accrued liabilities

Due to related parties

Net cash used in by operating activities

$ ( 1,234,109 )

$ ( 1,166,324 )

Cash flows used in investing activities

Purchase of equipment

Intellectual property

Net cash used in investing activities

Cash flows from financing activities

Payments of loan payable

Proceeds from private

placement, convertible debt,

and option exercise

Net cash from financing Activities

Increase (Decrease) in cash and cash equivalents

Cash and cash

equivalents, beginning of period

Cash and cash equivalents, end of period

Lease Payments

Net cash used in financing activities

Net change in cash for the period

( 1,280,155 )

( 1,235,526 )

Cash at beginning of period

Cash at end of period

Supplemental information of cash flows:

Interest paid in cash

Income taxes paid in

The accompanying notes are an integral part of these

consolidated financial statements.

LEXARIA CORP.

CONSOLIDATED STATEMENTS OF

STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME

Income taxes paid in cash

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

LEXARIA BIOSCIENCE CORP.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Expressed in U.S.

STOCKHOLDERS'

Balance, October 31, 2012

Stock Options @ $0.10

Shares issued for services

Cancellation of shares issued

Comprehensive income (loss):

(Loss) for the year

Balance, October 31, 2013

Shares issued for PP @ $0.06

Shares issued for services @ $0.10

Shares issued for services @ $0.40

Shares issued for services @ $0.60

Shares issued for PP @ $0.12

Shares issued for option exercise @ $0.35

Stock Options issued @ $0.60

Shares issued for debt conversion @$0.35

Shares issued per LOI @ $0.40

Shares issued per agreement @ $0.39

Shares issued per agreement @ $0.32

Stock Options issued @ $0.25

Shares issued for option exercise @ $0.10

Shares issued per agreement @ $0.30

Shares issued per agreement @ $0.26

Comprehensive income (loss):

Loss for the period

Balance, July 31, 2014

The accompanying notes are an integral part of these

consolidated financial statements.

LEXARIA CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

July 31, 2014

Balance August 31, 2021

( 31,829,204 )

Stock based compensation

( 1,993,157 )

Non-controlling interest

Balance November 30, 2021

( 33,822,361 )

Balance August 31, 2022

( 39,098,528 )

Stock based compensation

( 1,755,944 )

Non-controlling interest

Balance November 30, 2022

( 40,854,472 )

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

LEXARIA BIOSCIENCE CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2022

(Expressed in U.S.

Basis of Presentation

The unaudited consolidated interim financial statements

for the nine months ended July 31, 2014 included herein have been prepared

pursuant to the rules and regulations of the Securities and Exchange

Certain information and footnote disclosures normally included

in annual financial statements prepared in accordance with United States

generally accepted accounting principles have been condensed or omitted

pursuant to such rules and regulations.

In the opinion of management, all

adjustments (consisting of normal recurring accruals) considered necessary

for a fair presentation have been included.

These unaudited interim

consolidated financial statements should be read in conjunction with the

October 31, 2013 audited annual financial statements and notes

Organization and Business

The Company was formed on December 9, 2004 under the laws

of the State of Nevada and commenced operations on December 9, 2004.

Company is an independent natural gas and oil company engaged in the

exploration, development and acquisition of oil and gas properties in the

United States and Canada.

The Companys entry into the oil and gas

business began on February 3, 2005.

In spring of 2014, the Company added

another business sector in its entrance to medical marijuana.

has offices in Vancouver and Kelowna, BC, Canada.

These consolidated financial statements have been

prepared in accordance with United States generally accepted accounting

principles applicable to a going concern, which contemplates the

realization of assets and the satisfaction of liabilities and commitments

in the normal course of business.

The Company has incurred an operating

loss and required additional funds to maintain its operations.

Managements plans in this regard are to raise equity and/or debt

financing as required.

These conditions raise substantial doubt about the

Companys ability to continue as a going concern.

These consolidated

financial statements do not include any adjustment that might result from

this uncertainty.

Business Risk and Liquidity

The Company is subject to several categories of risk

associated with its operating activities.

Natural gas and oil exploration

and production is a speculative business and involves a high degree of

Among the factors that have a direct bearing on the Companys

financial information are uncertainties inherent in estimating natural gas

and oil reserves, future hydrocarbon production and cash flows,

particularly with respect to wells that have not been fully tested and

with wells having limited production histories;

access and cost of

services and equipment;

and the presence of competitors with greater

financial resources and capacity.

The production and sale of medical marihuana is an

emerging industry in which business practices are not yet standardized and

are subject to frequent scrutiny and evaluation by federal, state,

provincial, and municipal authorities, academics, and media outlets, among

others, Although we intend to develop our business in accordance with best

ethical practices, we may suffer negative publicity if we, our partners,

contractors, or customers are found to have engaged in any

environmentally, insensitive practices or other business practices that

are viewed as unethical.

Our operations may require licenses and permits from

various governmental authorities to build and install alternative energy

systems or to conduct energy retrofits and build MMJ operations.

believe that we will be able to obtain all necessary licenses and permits

under applicable laws and regulations for our operations and believe we

will be able to comply in all material respects with the terms of such

licenses and permits.

However, such licenses and permits are subject to

change in various circumstances.

There can be no guarantee that we will be

able to obtain or maintain all necessary licenses and

Nature of Business

Lexaria Bioscience Corp.

(“Lexaria”, “we”, “our” or the “Company”) is a biotechnology company pursuing the enhancement of the bioavailability of a diverse and broad range of active pharmaceutical ingredients (“API”) using our proprietary DehydraTECH drug delivery technology.

Revenues are generated from licensing contracts for the Company’s patented DehydraTECH technology based on the terms of use and defined geographic and licensing arrangements.

We derive income from our third party contracted manufacturing of B2B DehydraTECH enhanced products made to customer specifications that are sold online and in-store in the US and Canada.

We also perform contract services in R&D for customer specific formulations that are used in comparison testing to customers’ existing products.

Going Concern Consideration

The Company’s consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“US GAAP”) applicable to a going concern which assumes the Company will have sufficient funds to pay it operational, research and development and capital expenditures for a period of at least 12 months from the date this Report.

Since inception, the Company has incurred significant operating and net losses.

The losses attributable to shareholders were $ 7.4 m, $ 4.2 m and $ 4.1 m for the years ended August 31, 2022, 2021 and 2020, respectively.

As of November 30, 2022, we had an accumulated deficit of $ 40.9 m.

We expect to continue to incur significant operational expenses and net losses in the upcoming 12 months.

Our net losses may fluctuate significantly from quarter to quarter and year to year, depending on the stage and complexity of our R&D studies and corporate expenditures, additional revenues received from the licensing of our technology, if any, and the receipt of payments under any current or future collaborations we may enter into.

The recurring losses from operations and negative cash flows from operations raise substantial doubt about the Company’s ability to continue as a going concern.

As of November 30, 2022, the Company had cash of approximately $4.5m and carries no significant debt other than amounts payable in the short term.

Also, on August 12, 2022, we entered into a sales agreement with Maxim Group LLC, (“Maxim”), pursuant to which we may offer and sell shares of our common stock with an aggregate offering price of up to $5,925,000 under the At-The-Market (“ATM”) Offering.

The sales agreement provides that Maxim will be entitled to a sales commission equal to 3.0% of the gross sales price per share of all shares sold under the ATM Offering.

As of January 17, 2023 we have not sold any shares under the ATM Offering.

Based on our existing working capital and access to an ATM offering, as disclosed above management believes the Company has sufficient working capital to satisfy the Company’s estimated liquidity needs for the next 12 months.

Because of the above factors, the Company believes that this alleviates the substantial doubt in connection with the Company's ability to continue as a going concern.

However, there is no assurance that management’s plans will be successful due to the current economic climate in the United States and globally.

Impacts of COVID-19 Pandemic

The emergence of the COVID-19 pandemic in 2020 continues to present uncertainty and unforecastable new risks to the Company and its business plans.

As of November 30, 2022, there has been no material impact on the Company’s financial position as a direct result of the pandemic.

However, the Company has experienced some supply chain disruptions and shortages in the timely procurement of ingredients and supplies used in both our R&D activities and B2B production.

Management views this situation as transitory but cannot predict the length of time it may take for these disruptions to dissipate or if there will be a significant economic effect on the Company’s operations.

In the interim, it may cause delays in carrying out our research studies and in our production schedules.

There may be further actions we must take that alter our operations, including those that may be required by federal, state, provincial, or local authorities, or that we determine are in the best interests of our employees and other third parties with which we do business.

We do not know when it will become practical to relax or eliminate some or all these measures entirely.

The economic effect of a prolonged pandemic is difficult to predict and could result in material financial impact in the Company’s future reporting periods.

Significant Accounting Policies

The significant accounting policies of the Company are consistent with those of our audited financial statements on Form 10-K for the year ended August 31, 2022.

Basis of Consolidation

The unaudited interim consolidated financial statements

include the financial statements of the Company, its wholly-owned

subsidiary, Lexaria CanPharm Corp.

All significant inter-company balances

and transactions have been eliminated.

Principles of

These consolidated financial statements are stated in

dollars and have been prepared in accordance with U.S.

accepted accounting principles.

Joint Venture

Investments in joint ventures and entities ("ventures")

in which the Company has an ownership interest of greater than 50% and

exercises control over the ventures are consolidated in the accompanying

consolidated financial statements.

Non-controlling interests in the years

presented are not material and, as a result, are included in the caption

accrued expenses and other in the accompanying consolidated balance

Investments in ventures in which the Company exercises significant

influence but not control are accounted for using the equity method.

Investments in ventures in which the Companys ownership interest is less

than 20% and over which the Company does not exercise significant

influence are accounted for using the cost method.

The Company monitors

ventures for events or circumstances that indicate that the fair value of

a venture is less than its carrying value, in which case the Company would

further review the venture to determine if it is other-than-temporarily

During the period ended July 31, 2014, the Company entered into

a Definitive Agreement to acquire a 49% interest in a joint venture with

Enertopia Corp.

(Enertopia) to be in the business of legally producing,

manufacturing, propagating, importing/exporting, testing researching and

developing, and selling marihuana for medical purposes under the MMPR.

Company has recognized the investment using the equity method.

Recently Adopted Accounting Standards

In February 2013, the FASB issued new accounting guidance

to improve the reporting of reclassifications out of accumulated other

comprehensive income.

Under the guidance, an entity is required to provide

information about the amounts reclassified out of accumulated other

comprehensive income (AOCI) by component.

In addition, an entity is

required to present, either on the face of the financial statements or in

the notes, significant amounts reclassified out of AOCI by the respective

line items of net income, but only if the amount reclassified is required

to be reclassified in its entirety in the same reporting period.

amounts that are not required to be reclassified in their entirety to net

income, an entity is required to cross-reference to other disclosures that

provide additional details about those amounts.

The guidance did not

change the requirements for reporting net income or other comprehensive

income in the financial statements.

The new guidance is effective for

annual reporting periods beginning on or after December 15, 2012, and

interim periods within those annual periods.

The Company has adopted this

guidance in fiscal year 2014 and it does not have a significant impact on

its results of operations, financial condition and cash flows.

In March 2013, the Financial Accounting Standards Board (

FASB) issued Accounting Standards Update ("ASU") 2013-05, "Foreign

Currency Matters (Topic 830);

Parents Accounting for the Cumulative

Translation Adjustment upon Derecognition of Certain Subsidiaries or

Groups of Assets within a Foreign Entity or of an Investment in a Foreign

Entity." This guidance applies to the release of the cumulative

translation adjustment into net income when a parent either sells a part

or all of its investment in a foreign entity or no longer holds a

controlling financial interest in a subsidiary or group of assets that is

a business (other than a sale of in substance real estate or conveyance of

oil and gas mineral rights) within a foreign entity.

effective prospectively for fiscal years (and interim reporting periods

within those years) beginning after December 15, 2013.

The Company adopted

this guidance in fiscal year 2014 and it does not have a significant

impact on its results of operations, financial condition and cash

In July 2013, the FASB issued ASU No.

Presentation of an Unrecognized Tax Benefit When a Net Operating Loss

Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.

This new guidance provides specific financial statement presentation

requirements of an unrecognized tax benefit when a net operating loss

carryforward, a similar tax loss, or a tax credit carryforward exists.

guidance states that an unrecognized tax benefit in those circumstances

should be presented as a reduction to the deferred tax asset.

guidance is effective for fiscal years, and interim periods within those

years, beginning after December 15, 2013.

Early adoption is permitted.

The Company adopted

this guidance in fiscal year 2014 and the adoption of this guidance does

not have a material impact on its financial statements.

Accounting standards that have been issued or proposed by

the FASB or other standards-setting bodies that do not require adoption

until a future date are not expected to have a material impact on the

Companys financial statements upon adoption.

New Accounting Pronouncements

In April 2014, the FASB issued ASU No.

Reporting Discontinued Operations and Disclosures of Disposals of

Components of an Entity. ASU No.

2014-08 amends the definition of

discontinued operations by limiting discontinued operations reporting to

disposals of components of an entity that represent strategic shifts that

have (or will have) a major effect on an entity's operations and financial

The amendments require expanded disclosures for discontinued

operations that would provide users of financial statements with more

information about the assets, liabilities, revenues, and expenses of

discontinued operations and disclosure of the pretax profit or loss of

individually significant components of an entity that do not qualify for

discontinued operations reporting.

2014-08 is to be applied

prospectively to all disposals (or classifications as held for sale) of

components of an entity and all businesses or nonprofit activities that,

on acquisition, are classified as held for sale that occur within fiscal

years, and interim periods within those years, beginning after December

The adoption of ASU No.

2014-08 is not expected to have a

material impact on the Companys results of operations or the Companys

financial position.

Capital Stock Share Issuances

On November 1, 2013, the Company closed a private

placement of 500,000 units at a price of $0.06 per unit for gross proceeds

Each unit consists of one common stock and one share purchase

warrant which entitles a holder to purchase one common stock at a price of

$0.10 per warrant share for a period of thirty six month following the

On March 5, 2014, the Company entered into a three year

Joint Venture agreement with Enertopia Corp.

and Robert McAllister.

Whereas the Enertopia Corp.

and Robert McAllister will source

opportunities in the medical marijuana business, and the terms and

conditions on which the Parties will form a joint venture to jointly

participate in, or offer specific opportunities within the business and

Robert McAllister will join the Lexaria Corp.

advisory board for the term

of the Agreement.

The Company issued 1,000,000 common shares at $0.10 to

Enertopia Corp.

and 500,000 common shares at $0.10 to Robert

On March 10, 2014, the Company entered into a 12 month

Social Media/Web Marketing Agreement with Stuart Gray for $60,000.

Company issued 150,000 common shares at a price of $0.40 for his

On March 12, 2014, the Company entered into 12 month

marketing agreement for $50,000 with Agora Internet Relations Corp.

payable in common shares of the Company.

The first quarter payment of

$12,500 was made by issuing 20,833 common shares of the Company at a price

of $0.60 per share.

On March 21, 2014, the Company closed a private placement

of 10,600,000 units at a price of $0.12 per unit for gross proceeds of

Each unit consists of one common stock and one share purchase

warrant which entitles a holder to purchase one common stock at a price of

$0.25 per warrant share for a period of eighteen months following the

A cash finders fee for $16,800 was paid to Cannacord Genuity,

Leede Financial Markets and PI Financial Corp.;

and a stock finders fee

of 819,999 common shares of the Company were issued to Canaccord Genuity

and Wolverton Securities.

On March 25, 2014 the Company received $17,500 for the

exercise of 50,000 stock options at $0.35 into 50,000 common shares of the

On April 1, 2014, the Company converted $193,333 of the

debt outstanding into 552,380 units of the Company at a price of $0.35.

Each unit is comprised of one common share and one share purchase warrant

which entitles the holder to purchase one common stock at a price of $0.40

for a period of 12 months after the conversion.

On April 10, 2014, the Company entered into a Letter of

Intent (" LOI ") that set forth the basic terms of discussions

between Enertopia Corporation, or its wholly-owned subsidiary

(" Enertopia ") and Lexaria Corp., or its wholly-owned subsidiary

(" Lexaria ") (collectively, the " Parties ") with regard to the

ownership by Enertopia of a 51% interest in the business, and the

ownership by Lexaria of a 49% interest in the business

of legally producing, manufacturing,

propagating, importing/exporting, testing, researching and developing, and

selling marihuana for medical purposes under the MMPR.

The Company issued

500,000 common shares at a price of $0.40 to Enertopia, which are held in escrow

until the Health License license is obtained by Enertopia.

On April 10, 2014, a letter of intent,

was signed on behalf of Lexaria CanPharm Corp.

- a wholly owned subsidiary of

Lexaria, and Enertopia Corporation (Lessee) and Mr.

Jeff Paikin (Lessor) that

sets out the Lessees and Lessors shared intent to enter into a lease agreement

(the Lease) for warehouse space (the Leased Premises) in the building

located in Ontario (the Building) for the purposes of a licensed medical

marijuana production facility.

The Company issued the 55,000 common shares at a

deemed price of $0.40 per the terms of the Letter of Intent to lease space in

the building owned by the Lessor.

The LOI was amended on July 22, 2014,

subsequent to quarter end, on August 1, 2014, the Company signed an extension to

an amended Letter of Intent that was executed on April 10, 2014.

terms of the extended Letter of Intent, on August 5, 2014, the Company issued

91,662 common shares at a deemed price of $0.30.

On April 14, 2014, the Company

appointed Mr.

Jeff Paikin to its Advisory Board for a period of not less than

one year, but to be determined by certain performance thresholds described in

Upon signing of the letter of acceptance the Company issued 110,000

common shares at a deemed price of $0.39.

Consulting agreement amended on June

18, 2014, Mr.

Paikin can be eligible to receive up to a total of 1,650,000

common shares of the Company.

On July 17, 2014, the Company issued 165,000

common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with Clark Kent as Media Coordinator for a

monthly fee of CAD$2,250 plus GST.

Upon signing of the contract of acceptance

the Company issued 110,000 common shares at a deemed price of $0.32.

agreement amended on June 18, 2014, Mr.

Kent can be eligible to receive up to a

total of 1,650,000 common shares of the Company.

On July 17, 2014, the Company

issued 165,000 common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with Don Shaxon as Ontario Operations

Manager for a monthly fee of CAD$3,375 plus GST.

Upon signing of the contract of

acceptance the Company issued 110,000 common shares at a deemed price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Shaxon can be eligible to

receive up to a total of 1,650,000 common shares of the Company.

2014, the Company issued 165,000 common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with 490072 Ontario Ltd.

operating as HEC

Group, wholly owned company by Greg Boone as Human Resources Manager.

signing of the contract of acceptance the Company issued 110,000 common shares

at a deemed price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Boone can be eligible to receive up to a total of 1,650,000 common shares of the

On July 17, 2014, the Company issued 165,000 common shares at a deemed

price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with Jason Springett as Master Grower for

Ontario Operations for a monthly fee of $3,375 plus GST.

Upon signing of the

contract of acceptance the Company issued 110,000 common shares at a deemed

price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Springett can

be eligible to receive up to a total of 1,650,000 common shares of the Company.

On July 17, 2014, the Company issued 165,000 common shares at a deemed price of

On April 24, 2014 the Company entered

into a one year consulting contract with 2342878 Ontario Inc.

company by Chris Hornung as Assistant Manager.

Upon signing of the contract of

acceptance the Company issued 110,000 common shares at a deemed price of $0.32.

On July 14, 2014, the Company accepted Mr.

Hornungs resignation.

On May 5, 2014 the Company entered into

a one year consulting contract as Security Consultant with Bmullan and

Associates, a company wholly owned by Brian Mullan.

Upon signing of the contract

of acceptance the Company issued 55,000 common shares at a deemed price of

Based on the milestones listed in the contract, Mr.

Mullan or his company

can be eligible to receive up to a total of 275,000 common shares of the

On July 17, 2014, the Company issued 55,000 common shares at a deemed

price of $0.26.

On May 29, 2014, the Company accepted

and received gross proceeds of $5,000 for the exercise of 50,000 stock options

at $0.10 each into 50,000 common shares of the Company.

As at July 31, 2014, Lexaria Corp.

32,824,664 shares issued and outstanding and 11,652,380 warrants issued and

The following table summarizes warrant

activity in the period ended July 31, 2014:

Weighted Average

Number of Shares

Exercise Price

Balance, October 31, 2013 and

Granted warrants with expiry date of November

Granted warrants with expiry

date of September 12, 2015

Granted warrants with expiry date of April 1, 2015

Balance, July 31, 2014

Oil and Gas Properties

Proved properties

Proved property

Palmetto Point Project

On December 21, 2005, the Company agreed to purchase a

20% working and revenue interest in a 10 well drilling program in

Mississippi owned by Griffin & Griffin Exploration for $700,000.

Concurrent with signing the Company paid $220,000 and January 17, 2006 the

Company paid the remaining $480,000.

The Company applied the full cost

method to account for its oil and gas properties, seven wells were found

to be proved wells, and three wells were found impaired.

One of the wells

was impaired due to uneconomic life, and the other two wells were

abandoned due to no apparent gas or oil shows present.

impaired properties were added to the capitalized cost in determination of

the depletion expense.

On September 22, 2006, the Company elected to participate

in an additional two-well program in Mississippi owned by Griffin &

Griffin Exploration and paid $140,000.

The two wells were found to be

proved wells.

On June 23, 2007, the Company acquired an assignment of

10% gross working interest from a third party for $520,000 secured loan

The Company recognized $501,922 in the oil and gas

On October 4, 2007, the Company elected to participate in

the drilling of PP F-12-3 in Mississippi by Griffin & Griffin

The Company had 30% gross working interest and paid $266,348.

On July 31, 2008, the Company accrued and paid an additional cost of

$127,707 for the workovers of wells PP F-12 and PP F-12-3.

PP F-12 started

production from October 2007, and PP F-12-3 started production from

These interim consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries;

Lexaria CanPharm ULC, Lexaria CanPharm Holdings Corp., PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp., and Lexaria Pharmaceutical Corp., and our 83.33 3% owned subsidiary Lexaria Nicotine LLC with the remaining 16.66 7% owned by Altria Ventures Inc., an indirect wholly owned subsidiary of Altria Group, Inc.

All significant intercompany balances and transactions have been eliminated upon consolidation.

Basis of Presentation

The Company’s unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

Interim results are not necessarily indicative of results for a full year or any subsequent period.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements and notes thereto included in our annual report filed on Form 10-K for the year ended August 31, 2022.

Recent Accounting Guidance

Pronouncements Issued but Not Yet Adopted

In June 2016, the FASB issued ASU No.

2016-13, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments .

The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2023.

These standards require that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and establishes additional disclosures related to credit risks.

For available-for-sale debt securities with unrealized losses, these standards now require allowances to be recorded instead of reducing the amortized cost of the investment.

These standards limit the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases.

The Company does not currently expect the adoption of these standards to have a material impact on its consolidated financial statements.

Estimates and Judgments

The preparation of financial statements in conformity with U.S.

GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Some of the Company’s accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain.

These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made.

Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used.

Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations.

The Company reviews these estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary.

Although we believe that these estimates are reasonable actual results could differ.

In preparing these unaudited interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended August 31, 2022.

Marketable Securities

The components of Marketable Securities were as follows:

August 31, 2021

August 31, 2022

( 1,102,236 )

November 30, 2022

On April 3, 2009, the Company entered into an Asset

Purchase Agreement to acquire additional interests in its existing core

producing Mississippi oil and gas properties.

The Company paid $40,073.39

to acquire additional 2% working interest in the proven Belmont Lake oil

and gas and an additional 10% working interest in potential nearby

exploration wells.

At this time the total working interest for Belmont

and total working interest in the exploration wells on

approximately 140,000 acres surrounding Belmont Lake in all directions is

The Company had a short-lived opportunity to acquire

additional fractional interests in the Belmont Lake 12-4 well which was

expected to be a horizontal well.

An unrelated third party did not

participate in its right to participate in the 12-4 well, and therefore a

share of its interest (a non consent interest) was made available to the

other participating parties including Lexaria.

On August 28, 2009 and

effective on September 1, 2009, to take best advantage of this

opportunity, the Company entered into four separate assignment agreements,

three of which were with people or companies with related management.

Company received from these four parties proceeds of $371,608.57 to fund

additional interests in this well.

As a result, the Company has a 25.84%

perpetual gross interest in the well (18.0% net revenue interest);

as a 5.2% net revenue interest in the non-consent interest.

The non-consent interest remains valid until such time as the well produces 500%

of all costs and expenses back to the participants in the form of revenue, at

which time the non-consent interest ends.

Enertopia, a company with related

management, had acquired from Lexaria a 6.16% perpetual gross interest in the

David DeMartini, a director of Lexaria, acquired from Lexaria a 5%

gross interest in the non-consent interest in the 12-4 well;

Resources Group formerly known as 0743608 BC Ltd.

a company owned by the

President of the Company, acquired from Lexaria a 11.60% gross interest in the

non-consent interest in the 12-4 well.

On May 31, 2010, the Company signed a

Settlement Agreement with Enertopia Corp., whereby the Company issued 499,893

units at $0.12 per unit and each unit consists of one restricted common share

and one share purchase warrant at $0.20 per share for a period of two years in

exchange for the working interest initially assigned on August 28, 2009.

On June 16, 2010, the Company signed a

Settlement Agreement with a third party, who had originally participated in the

August 28, 2009, opportunity in the non-consent interest for Belmont Lake 12-4.

The Company returned back $144,063.46 to the third party and cancelled its

participation.

On July 29, 2010, the Company had agreed with its Operators at

Belmont Lake not to proceed to drill a horizontal 12-4 well.

Rather, two of the

three proposed vertical wells 12-2, 12-4, or 12-5 were proposed to be drilled.

To take best advantage of this opportunity, the Company cancelled all previous

agreements relating to August 28, 2009 with respect to Belmont Lake horizontal

well 12-4 and entered into three separate assignment agreements, of which all

three were with people or companies with related management.

received total proceeds of $324,677.12 to fund additional interests in these

As a result, the Company had a 32% perpetual gross interest in the wells

(24.0% net revenue interest);

as well as a 8% gross interest (6% net revenue

interest) in the non-consent interest.

The non-consent interest remains valid

until such time as the well produces 500% of all costs and expenses back to the

participants in the form of revenue, at which time the non-consent interest

Emerald Atlantic LLC, a company owned by a director of Lexaria, acquired

from Lexaria a 8.74% gross interest in the non-consent interest in two of the

three vertical wells;

and Kelowna Resources Group formerly known as 0743608 BC

a company owned by the President of the Company, acquired from Lexaria a

20.79% gross interest in the non-consent interest in the two of the three

vertical wells;

an advisor to the Company acquired from Lexaria 2.46% gross

interest in the non-consent interest in two of the three vertical wells.

The July 29, 2010 agreements were

replaced on September 13, 2010, when the Company entered into three separate

assignment agreements with Kelowna Resources Group formerly known as 0743608 BC

Ltd, solely owned by Director/Officer of the Company;

Emerald Atlantic LLC,

solely owned by a Director of the Company, and the Senior VP Business

(the Assignees), whereby the Assignees have paid a fee of

$408,116 to earn a 24% share of the Companys gross non-perpetual 32% interest

in the three oil wells being drilled in Wilkinson County, Mississippi.

result of the three assignment agreements, Lexaria receives at no cost to the

company, a carried interest of 8% in these same rights and benefits.

assigns, transfers and sets over to the Assignees, all proportionate rights,

interest and benefits in the Assigned Non Perpetual Interest held by or granted

to the Assignor in and to the Participation Agreement between the Company and

Griffin but limited to a gross 500% revenue payout based on the total amount

paid under the Initial Consideration and the Subsequent Consideration after

which all rights, interests and benefits cease.

Lexaria entered into an Asset Purchase

Agreement dated August 12, 2011, with Brinx Resources Ltd.

to acquire 100% of

its 10% gross working interest in the oil and gas interests located in

Mississippi, USA.

By acquiring the additional 10% working interest in Belmont

Lake oil and gas field, Lexaria then had 42% working interest in Belmont Lake

and retains its existing 60% working interest in the exploration wells on

approximately 130,000 acres surrounding Belmont Lake in all directions.

has agreed to considerations as follows;

$200,000 on the August 12, 2011 (the "Initial Payment")

$200,000 on or before November 12, 2011;

payments, as agreed, in the amount of $10,000 per month for up to 3 months

following November 12, 2011 with the remaining balance of $200,000 then

due and payable (the "Final Payment"), and, should Lexaria not make the

final payment on February 12, 2011 a penalty of $500 per day (the

Penalty Payments) beginning one day after February 12, 2011 and

accruing until the balance of the $200,000 Final Payment is made to the

Both the Vendor and the Purchaser agreed that, should any Penalty

Payments be due, such Penalty Payments are not deductible from the balance

of the $200,000 Final Payment.

As at April 30, 2012, the Company has paid

$230,000, including the Final Payment.

800,000 shares of restricted common stock issued from

Lexaria treasury were issued on August 12, 2011.

On November 1, 2013, Lexaria Corp.

(the Company) entered into three separate assignment agreements with CAB

Financial Services Ltd.

solely owned by a Director/Officer of the Company;

Emerald Atlantic LLC, solely owned by a Director of the Company, and a third

(the Assignees), whereby the Assignees have paid a fee of US$305,894 to

earn a 28.68% share of the Companys perpetual 42% interest in a proposed 12-7

oil well to be drilled in Wilkinson County, Mississippi.

As a result of the

three assignment agreements, Lexaria receives a carried interest of 13.32% in

these same rights and benefits.

The Company assigns and transfers over to the

Assignees, all proportionate rights, interest and benefits in the Assigned

Perpetual Interest held by or granted to the Assignor in and to the

Participation Agreement between the Company and Griffin.

As of July 31 2014, additional

expenditures of $56,421 were incurred for workovers.

As of July 31, 2014, the Companys

working interest and production in PPF-12-4 and PPF-12-5 well located at Belmont

Lake, Mississippi, with carrying values of $1,000,000, are used as security for

the convertible debentures issued on November 30, 2010, December 16, 2010 and

December 1, 2011 (see note 7 (b) and (c), with aggregate amount of $820,000.

Medical Marijuana Investment

On March 5, 2014 , the Company has entered into a

three year Joint Venture Agreement ("JV") with Enertopia Corp.

McAllister collectively, the "Parties").

Whereas Enertopia Corp.

Robert McAllister will source opportunities in the business of licensed

medical marijuana , and the terms and conditions on which the Parties have

formed a joint venture to jointly participate in, or offer specific

opportunities within the Business (the "Joint Venture"), and Robert

McAllister will join the Lexaria Corp.

advisory board for the term of this

On May 27, 2014 , Letter of intent, executed on

behalf of Lexaria Corp.

and/or its wholly-owned subsidiary Lexaria

CanPharm Corp.

(the Lessee) and Arnprior Bay Property Limited, c/o

Huntington Properties, (the Lessor) sets out the Lessees and Lessors

shared intent to enter into a lease agreement (the Lease) for warehouse

space (the Leased Premises) in the building located at, Ontario (the

Building) and to enter a finance agreement into Lexaria Corp and/or

Lexaria CanPharm Corp.

On May 28, 2014 , Enertopia and Lexaria signed a

Definitive Agreement.

Enertopia and Lexaria each wish to develop a

business of legally producing, manufacturing, propagating,

importing/exporting, testing, researching and developing, marijuana (the

"Business") located in Ontario (the "Property").

Enertopia wishes to

acquire a license from Health Canada a license to designate Enertopia as a

Licensed Producer pursuant to Canada's Marijuana for Medical Purposes

Regulations (the "License").

The Parties are entering into this Definitive Agreement

to set out the terms and conditions by which Enertopia does own a 51%

interest in the Business and Lexaria does own a 49% interest in the

and the terms and conditions on which the Parties will form and

operate the joint venture to jointly participate in the Business (the

"Joint Venture").

The Company has contributed $51,562 (C$55,000) to the

Joint Venture bank account as its initial contribution and the Joint

Venture has been accounted for using the equity method since the Company

has significant influence but not control.

July 31, 2014

October 31, 2013

Opening balance

Investment joint venture

Equity loss pick-up

Balance as of July 31, 2014

S ubsequent to quarter end, on August 1,

2014 , the Company signed an extension on an amended Letter of intent,

that was executed on April 10, 2014 on behalf of a corporation to be

incorporated by Lexaria Corp.

and Enertopia Corporation(Lessee) and Mr.

Jeff Paikin of 1475714 Ontario Inc.

(Lessor) sets out the Lessees and

Lessors shared intent to enter into a lease agreement (the Lease) for

warehouse space (the Leased Premises) in the building located at

Burlington, Ontario (the Building).

On August 5, 2014 as per the terms

of the LOI, the Company issued 91,662 common shares at a deemed price of

$0.30 per share.

The following are the terms of the amended LOI

Carrying amounts

Original amounts

July 31, 2014

October 31, 2013

Promissory Note

Convertible debentures

Promissory Note

Total Outstanding

payable - current

Loan payable - long term

On April 1, 2010, the Company entered into a purchase

agreement with CAB Financial Services Ltd., a company controlled by

Christopher Bunka, our President, Chief Executive Officer and Director,

(Purchaser) for a non-secured promissory note in the amount of $75,000

(the Promissory Note).

The Purchaser agreed to purchase a non-secured

18% interest bearing Promissory Note of our company subject to and upon

the terms and conditions of the Purchase Agreement.

The Promissory Note is

due and payable on April 1, 2012.

The Promissory Note may be prepaid in

whole or in part at any time prior to April 1, 2012 by payment of 108% of

the outstanding principal amount including accrued and unpaid interest.

Upon the mature of the Promissory Note, it has been renewed to a month to

As long as the Promissory Note is outstanding, the

Purchaser may voluntarily convert the Promissory Note including accrued

and unpaid interest to common shares of our Company at the conversion

price of $0.30 per common share.

The Company did not incur beneficiary conversion charges

as the conversion price is greater than the fair value of the Companys

equity at the time of issuance.

On November 30, 2010, we closed the first tranche of a

private placement offering of convertible debentures in the aggregate

amount of $450,000.

The convertible debentures mature on November 30,

2012, subject to forced conversion as set out in the convertible debenture

The convertible debentures pay an interest rate of 12% per

annum (on a simple basis) and are convertible at $0.35 per unit.

is comprised of one share of our common stock and one share purchase

Each warrant entitles the holder thereof to purchase one share at

a price of $0.40 per share up to the earlier of the maturity date of the

convertible debenture or one year from conversion of the convertible

We also entered into a general security agreement with

the subscribers, whereby the obligations to repay the convertible

debenture are secured by the Companys working interest and production in

and only in two oil wells located at Belmont Lake, Mississippi, with

carrying value of $1,000,000 as of October 31, 2012.

One director of the

Company and Emerald Atlantic LLC, solely owned by the director, subscribed

the convertible debentures with amount of $50,000.

On December 16, 2010, the Company closed the second

tranche of a private placement offering of convertible debentures in the

aggregate amount of $170,000.

The convertible debentures mature on November 30,

2012, subject to forced conversion as set out in the convertible debenture

The convertible debentures pay an interest rate of 12% per annum

(on a simple basis) and are convertible at $0.35 per unit.

comprised of one share of our common stock and one share purchase warrant.

warrant entitles the holder thereof to purchase one share at a price of $0.40

per share up to the earlier of the maturity date of the convertible debenture or

one year from conversion of the convertible debenture.

We also entered into a

general security agreement with the subscribers, whereby the obligations to

repay the convertible debenture are secured by the same assets for the first

tranche of the private placement offering on November 30, 2010.

One director of

the Company and Emerald Atlantic LLC, solely owned by the director, subscribed

the convertible debentures with amount of $120,000.

The aggregate principal value of the

above convertible debentures was $620,000 and was allocated to the individual

components on a relative fair value basis.

In addition, because the effective

conversion price of the convertible debentures was below the current trading

price of the Companys common shares at the date of issuance, the Company

recorded a beneficial conversion feature of approximately $20,000.

the warrants and beneficial conversion feature has been recorded as additional

paid in capital.

On November 13, 2013, the Company

entered into an Amendment agreement to refinance and extend repayment terms on

the loan, please refer to Note 8f for details.

On April 1, 2014, three of the

parties converted their balance of $193,333 of principal remaining into 552,350

common shares at a price of $0.35 per share.

During the nine month period ended

July 31, 2014, the Company has paid down the debt by $339,999 (October 31, 2013:

On December 1, 2011, the Company closed a private

placement offering of convertible debentures in the aggregate amount of

The convertible debentures mature on December 1, 2012, subject

to forced conversion as set out in the convertible debenture certificate.

The convertible debentures pay an interest rate of 12% per annum (on a

simple basis) and are convertible at $0.35 per unit.

comprised of one share of our common share and one share purchase warrant.

Each warrant entitles the holder thereof to purchase one share at a price

of $0.40 per share up to the earlier of the maturity date of the

convertible debenture or one year from conversion of the convertible

We also entered into a general security agreement with the

subscribers, whereby the obligations to repay the convertible debenture

are secured by the Companys working interest and production in and only

in two oil wells located at Belmont Lake, Mississippi, with carrying value

of $1,000,000 as of October 31, 2012.

Two directors of the Company, David

DeMartini and Christopher Bunka, via CAB Financial Services Ltd, solely

owned by the director, subscribed to the convertible debentures with the

amount of $200,000.

The aggregate principal value of the above convertible

debentures was $200,000 and was allocated to the individual components on

a relative fair value basis.

Because the effective conversion price of the

convertible debentures was above the current trading price of the

Companys common shares at the date of issuance, beneficial conversion

feature is $Nil, therefore, the amount of $200,000 was recorded under loan

During the nine month period ended July 31, 2014, the

Company has paid down the debt by $70,834 (October 31, 2013:

November 13, 2013, the Company entered into an Amendment agreement to

refinance and extend repayment terms on the loan, please refer to Note 8f

On March 30, 2012, the Company entered into a loan

agreement with Christopher Bunka, our President, Chief Executive Officer

and Director, (Lender) for a non-secured promissory note in the amount

of $50,000 (the Promissory Note).

The Lender agreed to purchase a

non-secured 12% interest bearing Promissory Note of our company subject to

and upon the terms and conditions of the agreement.

The Promissory Note

has a month to month term.

On October 27, 2008 the Company entered into a Purchase

Agreement in the amount of CAD$900,000 of Notes being purchased by the

President (CAD$400,000), the Presidents wholly-owned company

(CAD$300,000) and a shareholder (CAD$200,000) of the Company

(Purchasers).

The Purchasers agreed to purchase an 18% interest bearing

Promissory Note of the Company subject to and upon the terms and

conditions of the Purchase Agreement.

The Companys obligations to repay

the Promissory Note will be secured by certain

specified assets of the Company pursuant to a Security Agreement.

As long as the

Promissory Note is outstanding, the Purchasers may voluntarily convert the

Promissory Note to Common Shares at the conversion price of $0.45 per share of

Common Stock.

The Promissory Note matures on October 27, 2010 or by mutual

agreement by all parties on October 27, 2009.

In connection with the Purchase

Agreement, the Company issued a total of 390,000 (1,560,000 pre-consolidation)

warrants which two warrants entitle a holder to purchase a common share of the

Company of which 195,000 (780,000 pre-consolidation) warrants are eligible at

$0.05 (adjusted price) and 195,000 (780,000 pre-consolidation) warrants are

eligible at $0.05 (adjusted price) per share and expire October 27, 2009 and

October 27, 2010, respectively.

The Company did not incur beneficiary

conversion charges as the conversion price is greater than the fair value of the

Companys equity.

As at the date of the issuance of the

above noted Promissory Note, the Company allocated CAD$21,321 and CAD$683,559 to

warrants (additional paid-in capital) and Promissory Note based on their

relative fair value.

10, 2009 the Purchasers converted $45,000 of the Promissory Note into equity at

On October 27, 2009, 191,000 warrants were exercised for 95,500 common

On October 21, 2010, the Company

settled a portion of the debt, namely $1,625 with the Presidents wholly-owned

company by converting 65,000 warrants into 32,500 common shares of the Company

as per Purchase Agreement dated October 27, 2008 at a price of $0.05 per

On October 21, 2010, the Company

settled a portion of the debt, namely $2,167 with the President by converting

86,667 warrants into 43,333 common shares of the Company as per Purchase

Agreement dated October 27, 2008 at a price of $0.05 per share.

On October 21, 2010, the Company

entered into an amendment with loan holders to extend the loan to be on a

month-to-month basis with the same terms and conditions as pursuant to the

On December 1, 2012, the Company

entered into an Amendment to existing debt agreement with a shareholder of the

Company, whereby the lender has agreed to modify terms of the earlier agreements

and provide for a debt repayment schedule ending on December 1, 2013.

Company was scheduled to repay the debt in twelve equal monthly principal

payment, plus interest on the monthly declining balances.

The interest rates of

the amendment debt are the same as the existing debt agreement.

On November 13,

2013, the Company entered into an Amendment agreement to refinance and extend

repayment terms on the loan, please refer to Note f for details.

During the nine month period ended

July 31, 2014, the Company has paid down the debt by CAD$60,559 (October 31,

CAD$185,000).

On November 13, 2013, the Company refinanced and extended

repayment terms on all debt that was otherwise due to mature in December

2013 with CAB Financial Services Ltd., David DeMartini, Emerald Atlantic

LLC, and other debt holders of the Company.

Per the Amendment Agreements,

a) the loan repayment schedule will be converted, with an effective date

of December 1, 2013, to a new one year term loan with monthly interest

payments at 18% on any declining balance, in arrears and all principal

amounts not paid before then due in full on December 1, 2014;

payment of interest shall be due on January 1, 2014;

c) the Company will

make ten (10) monthly principal payments, each of which is 1/10th of the

principal amount owing at the time this Agreement goes into effect,

beginning on March 1 2014 and repeating on the first day of each month

thereafter until all the principal is paid;

d) the Company grants to the

lenders new collateral specifically limited to the lenders pro-rata

portion (the original initial balance owing to the lender shall form the

numerator and $930,000 shall form the denominator) of the Companys

portion of the net revenue from the new 12-7 well required to keep the

terms of this Agreement in good standing at any given monthly due date.

April 1, 2014, three of the parties converted their balance of $193,333 of

principal remaining into 552,350 common shares at a price of $0.35 per

On December 4, 2013, the Company entered into a loan

agreement and promissory note with Chris Bunka (the Lender), a director

and officer of our company.

The principal amount of the note is

CAD$51,507.50 and is repayable for a period of fifteen months.

has an interest rate of 15% per annum and a monthly principal payment of

$4,292 starting after the third month.

The loan has been repaid in full on

March 31, 2014.

Asset retirement obligations

Remediation, reclamation and mine closure costs are based

principally on legal and regulatory requirements.

Management estimates

costs associated with reclamation of mining properties as well as

remediation costs for inactive properties.

The Company uses assumptions

about future costs, capital costs and reclamation costs.

Such assumptions

are based on the Companys current mining plan and the best available

information for making such estimates.

In calculating the present value of

the asset retirement obligation the Company used a credit-adjusted risk

free interest rate of 10% and a projected mine life of 12 years.

ongoing basis, management revaluates its estimates and assumptions;

however, actual amounts could differ from those based on such estimates

and assumptions.

Changes to the Companys asset retirement obligation on

its Palmetto Point project are as follows:

Asset retirement

obligation beginning balance

Asset retirement

obligation ending balance

Related Party Transactions

For the nine months ended July 31, 2014, the Company paid

/ accrued $75,600 to CAB (2013:

and to BKB Management Ltd.

(BKB) CAD$51,975 (2013:

CAD$49,500) for management, consulting and

accounting services.

CAB is owned by the President of the Company and BKB

is owned by the CFO of the Company.

The related party transactions are recorded at the

exchange amount established and agreed to between the related

On October 27, 2008 the Company entered a secured loan

agreement in the amount of CAD$300,000 with CAB (See Note 7e).

2009 $40,000 of the debt was converted to equity.

On October 21, 2010, the

Company settled a portion of the debt, namely US$1,625 with CAB by

converting 65,000 warrants into 32,500 common shares of the Company as per

Purchase Agreement dated October 27, 2008 at a price of $0.05 per share.

On June 28, 2011, the Company paid down CAD $100,000 of the debt.

nine months ended July 31, 2014, the Company paid/accrued interest

expenses of CAD $20,500 (2013:

On October 27, 2008 the Company entered a secured loan

agreement in the amount of CAD$400,000 with Christopher Bunka (See Note

On October 21, 2010, the Company settled a portion of the debt,

namely $2,167 with Christopher Bunka by converting 86,667 warrants into

43,333 common shares of the Company as per Purchase Agreement dated

October 27, 2008 at a price of $0.05 per share.

For the nine months ended

July 31, 2014, the Company paid/accrued interest expenses of CAD $53,707

On April 1, 2010, the Company entered a non-secured loan

agreement in the amount of US$75,000 with CAB (See Note 8a).

months ended July 31, 2014, the Company paid interest expenses of $10,125

On March 30, 2012, the Company entered a non-secured loan

agreement in the amount of US$50,000 with Chris Bunka.

For the nine months

ended July 31, 2014, the Company incurred interest expenses of $4,500

On December 1, 2011, the Company entered into a secured

loan agreement in the amount of $200,000 with two directors of the Company

(see Note 8c, f).

This loan agreement was amended for another year to

repay the debt in twelve equal monthly principal payment, plus interest on

the monthly declining balances.

The interest rates of the amendment debt

are the same as the existing debt agreement.

On November 13, 2013, the Company refinanced and extended

repayment terms on all debt that was otherwise due to mature in December

The loan repayment schedule will be converted, with an effective

date of December 1, 2013, to a new one year term loan with monthly

interest payments at 18% on any declining balance, in arrears and all

principal amounts not paid before then due in full on December 1, 2014;

the first payment of interest shall be due on January 1, 2014;

Company will make ten (10) monthly principal payments, each of which is

1/10th of the principal amount owing at the time this Agreement goes into

effect, beginning on March 1 2014 and repeating on the first day of each

month thereafter until all the principal is paid.

For the nine months

ended July 31, 2014, the Company has paid interest expense of $16,374

On December 4, 2013, the Company entered into a loan

agreement and promissory note with Chris

Bunka (the Lender), a director and officer of our

The principal amount of the note is CAD$51,507.50.

into of the loan agreement and promissory note provides that the principal

and interest on the debt be payable for a period of fifteen months.

note has an interest rate of 15% per annum and a monthly principal payment

of $4,292 starting after the third month.

For the nine months ended July

31, 2014, the Company incurred interest expenses of CAD$1,931 (2013:

The Company paid back the loan on March 31,

Included in accounts payable, $80,530 (October 31, 2013:

$89,540) and other payable, $3,087 (2013:

$34,410) was payable to

companies controlled by the president, key management personnel and

directors of the Company.

Included in other receivable, $4,343 was

receivable from companies controlled by the president, key management

personnel and directors of the Company.

For the nine months ended July 31, 2014, the Company has

paid/accrued $Nil (2013:

$35,552) to Kelowna Resources Group formerly

known as 0743608 BC Ltd.;

$Nil (2013:$12,692) to Emerald Atlantic LLC;

and, $Nil to Tom Ihrke (2013:

$4,213) for their respective Non-consent

Interests in Belmont Lake.

Kelowna Resources Group, formerly known as

0743608 BC Ltd., is owned by the president of the Company, and Emerald

Atlantic LLC is owned by a Director of the Company.

See Note 5, 6, and 8.

( 1,179,864 )

Marketable securities represented the common shares of Hill Street Beverage Company Inc.

held by Lexaria.

Unrealized losses from common stock are due to market price movements.

In management’s opinion based on the evaluation of available information at the quarter ended November 30, 2022, unrealized losses represent temporary impairments.

Accounts Receivables

Accounts receivable at November 30, 2022 and August 31, 2022 consist of the following:

Trade and deposits

Territory license fees

Inventory at November 30, 2022 and August 31, 2022 consist of the following:

Raw materials

During the three month period ended November 30, 2022, inventory valued at $ 25,243 was expensed to research and development.

Page 10 of 28

Prepaid Expenses and Deposits

Prepaid expenses consist of the following at November 30, 2022, and August 31, 2022:

Advertising & conferences

License, filing fees, dues

Office & insurance

Capital financing

Intellectual Property, net

The following is a list of US capitalized patents held by the Company:

Issued Patent #

Patent Certificate Grant Date

Patent Family

US 9,474,725 B1

Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof

US 9,839,612 B2

US 9,972,680 B2

US 9,974,739 B2

US 10,084,044 B2

US 10,103,225 B2

US 10,381,440

US 10,374,036

US 10,756,180

US 11,311,559

Compositions and Methods for Enhanced Delivery of Antiviral Agents

A continuity schedule for capitalized patents is presented below:

Balance – beginning

Balance – ending

Patents are amortized over their 20 year legal life.

Page 11 of 28

Property & Equipment, net

Three Months Ended

November 30, 2022

Accumulated Amortization

Leasehold improvements

Furniture fixtures & equipment

Lab equipment

August 31, 2022

Accumulated Amortization

Leasehold improvements

Furniture fixtures & equipment

Lab equipment

During the three-month period ended November 30, 2022, $2,438 of depreciation was included in cost of goods sold.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at November 30, 2022 and August 31, 2022 consist of the following:

Accounts Payable

Trades payable

Sales tax payable

Accrued Liabilities

Trades payable

Page 12 of 28

A breakdown of our revenues by type for the three months ended November 30, 2022 and 2021 are as follows:

Three Months Ended

During the period ended November 30, 2022, the Company recognized B2B product revenues of $ 29,100 (2021 - $ 7,000 ) that relate to sales of our intermediate products for use by B2B customers in their products.

Licensing revenue consist of IP licensing fees for transfer of the DehydraTECH technology in line with definitive agreements and also includes royalty fees.

The Company recognized $ 63,435 (2021 - $Nil) in licensing revenue in the same period.

Common Shares and Warrants

The fair value of share purchase warrants granted was estimated as of the date of the grant by using the Black-Scholes option pricing model.

During the quarter ended November 30, 2022, the Company issued no warrants.

A continuity schedule for warrants is presented below:

Number of Warrants

Balance August 31, 2022

Cancelled/expired

Balance November 30, 2022

A summary of warrants outstanding as of November 30, 2022, is presented below:

# of Warrants

Weighted Average

Remaining Contractual Life

Weighted Average Exercise

1.96 - 2 .00 years

1.38 - 2.29 years

Page 13 of 28

Stock Options

For the nine months ended July 31, 2014, the Company

recorded a total of $66,482 (2013:

$Nil) for stock based compensation

On March 25, 2014, the Company accepted and received

gross proceeds of $17,500, for the exercise of 50,000 stock options at

$0.35 into 50,000 common shares of the Company.

On March 25, 2014, Jason Springett has joined the Company

as an advisor and the Company granted 50,000 stock options with an

exercise price of $0.60, vesting immediately and expiring on March 25,

On April 1, 2014, the Company entered into a 90 day

agreement with Ken Faulkner as a Corporate Development Manager.

Company granted 100,000 stock options with an exercise price of $0.50,

vesting immediately and expiring on April 1, 2019.

On May 29, 2014, the Company accepted and received gross

proceeds of $5,000 for the exercise of 50,000 stock options at $0.10 into

50,000 common shares of the Company.

On July 24, 2014, the Company granted 100,000 stock

options to Ron Struthers, 500,000 stock options to Robert McAllister, and

25,000 stock options to Taven White with an exercise price of $0.25,

vesting immediately and expiring on July 24, 2019.

For the period ended July 31, 2014, the Company recorded

a total of $91,915 (2013:

$21,279) for stock based compensation

The fair value of options granted has been estimated as

of the date of the grant by using the Black-Scholes option pricing model

with the following assumptions:

October 31, 2013

The Company has established the Equity Incentive Plan whereby the board of directors may, from time to time, grant up to 510,433 stock options to directors, officers, employees, and consultants.

Stock options granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors.

The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant.

The vesting terms of each grant are set by the board of directors.

The Company granted the following options during the quarter ended November 30, 2022:

Exercise Price $

A continuity schedule for stock options is presented below:

Weighted Average Exercise Price $

Weighted Average Remaining Contractual Term (Years)

Aggregate Intrinsic Value $

Balance August 31, 2021

Cancelled/expired

Balance August 31, 2022

Balance November 30, 2022 (granted)

Balance November 30, 2022 (exercisable)

The fair value of share purchase options granted were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

Expected volatility

2 unchanged sentences

Dividend yield

A summary of the stock options for the

nine months ended July 31, 2014 is presented below:

Options Outstanding

Weighted Average

Number of Shares

Exercise Price

Balance, October 31, 2013

Balance, July 31, 2014

The Company has the following options

outstanding and exercisable:

Options outstanding

Options exercisable

Range of Exercise

Weighted average

remaining contractual life

exercise price

Commitments, Significant Contracts and

Contingencies

On November 27, 2008, the Company entered into a

Consulting Agreement with CAB Financial Services Ltd.

for consulting

services of CAB on a continuing basis for a consideration of US$8,000 per

month plus GST.

On May 12, 2009 the Company entered into a consulting

agreement with BKB Management Ltd.

to act as the Chief Financial Officer

and a Director for an initial period of six months for consideration of

CAD $4,500 per month plus GST.

This agreement replaces the September 1,

2008, Controller Agreement with CAB Financial Services Ltd.

Subsequent to

October 31, 2010, effective January 1, 2011, the consideration was

increased to CAD$5,500 per month plus GST/HST.

On August 5, 2010 we entered into a three-month

Management agreement with Tom Ihrke, whereby Mr.

Ihrke will act as the

Senior Vice-President, Business Development for the Company for

consideration of $3,125 per month.

On December 2, 2010, the Company

entered into a month to month management agreement with Tom Ihrke, where

Ihrke will continue to act as the Senior Vice-President Business

Development for the Company.

On October 3, 2011 Mr.

Ihrke and the Company

amended the agreement whereby his title changed to Manager, Business

The Company will pay a monthly consulting fee of $3,125.

Effective January 15, 2012, the consulting agreement has been decreased to

Effective April 1, 2014, the amended consulting agreement has

been increased to $5,000 per month.

On July 1, 2013, the Company entered into a 2 year lease

for the Kelowna office with monthly rental rate of $1,652 including

On March 10, 2014, the Company entered into a Social

Media/Web Marketing Agreement with Stuart Gray.

The term of this Agreement

shall begin on the date of execution of this Agreement for a period of

The consideration for services

is $60,000 payable in common shares of the Company.

Upon execution of the

Agreement, the Company issued 150,000 common shares of the Company at a price of

$0.40 for the 12 month Social Media/Web Marketing Agreement.

On March 12, 2014, the Company signed a

$50,000 12 month marketing agreement with Agora Internet Relations Corp.

in common shares of the Company.

The first quarter payment is $12,500, by

issuing 20,833 common shares of the Company at a market price of $0.60 per

On April 1, 2014, the Company entered

into a one year contract with Pacific Court Capital Corp., wholly owned company

by Kristian Dagsaan as Controller for CAD$3,000 plus GST.

This contract was

terminated on August 31, 2014.

On April 1, 2014 the Company entered

into a 90 day agreement for $9,000 with Ken Faulkner as a corporate development

Faulkner will assist the Company with answering and initiating

calls and communications of any kind with various shareholders and investors for

purposes of corporate communications;

acquisitions;

analysis of various regulatory reports such as those required by the

US Securities and Exchange Commission and by various Provincial Securities

Commissions in Canada;

preparing and editing Company presentations and generally

communicating the Companys information.

On April 10, 2014, the Company entered

into a Letter of Intent (" LOI ") that set forth the basic terms of

discussions between Enertopia Corporation, or its wholly-owned subsidiary

(" Enertopia ") and Lexaria Corp., or its wholly-owned subsidiary

(" Lexaria ") (collectively, the " Parties ") with regard to the

ownership by Enertopia of a 51% interest in the business, and the ownership by

Lexaria of a 49% interest in the business of legally producing, manufacturing,

propagating, importing/exporting, testing, researching and developing, and

selling marihuana for medical purposes under the MMPR.

The Company issued

500,000 common shares at a price of $0.40 to Enertopia, which are held in escrow

until the Health License license is obtained by Enertopia.

On May 28, 2014,

Enertopia and Lexaria have signed a Definitive Agreement.

On April 10, 2014, a letter of intent,

was signed on behalf of Lexaria CanPharm Corp.

- a wholly owned subsidiary of

Lexaria, and Enertopia Corporation (Lessee) and Mr.

Jeff Paikin (Lessor) that

sets out the Lessees and Lessors shared intent to enter into a lease agreement

(the Lease) for warehouse space (the Leased Premises) in the building

located in Ontario (the Building) for the purposes of a licensed medical

marijuana production facility.

The Company issued the 55,000 common shares at a

deemed price of $0.40 per the terms of the Letter of Intent to lease space in

the building owned by the Lessor.

The LOI was amended on July 22, 2014,

subsequent to quarter end, on August 1, 2014, the Company signed an extension to

an amended Letter of Intent that was executed on April 10, 2014.

terms of the extended Letter of Intent, on August 5, 2014, the Company issued

91,662 common shares at a deemed price of $0.30.

On April 14, 2014, the Company

appointed Mr.

Jeff Paikin to its Advisory Board for a period of not less than

one year, but to be determined by certain performance thresholds described in

Upon signing of the letter of acceptance the Company issued 110,000

common shares at a deemed price of $0.39.

Consulting agreement amended on June

18, 2014, Mr.

Paikin can be eligible to receive up to a total of 1,650,000

common shares of the Company.

On July 17, 2014, the Company issued 165,000

common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with Clark Kent as Media Coordinator for a

monthly fee of CAD$2,250 plus GST.

Upon signing of the contract of acceptance

the Company issued 110,000 common shares at a deemed price of $0.32.

agreement amended on June 18, 2014, Mr.

Kent can be eligible to receive up to a

total of 1,650,000 common shares of the Company.

On July 17, 2014, the Company

issued 165,000 common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with Don Shaxon as Ontario Operations

Manager for a monthly fee of CAD$3,375 plus GST.

Upon signing of the contract of

acceptance the Company issued 110,000 common shares at a deemed price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Shaxon can be eligible to

receive up to a total of 1,650,000 common shares of the Company.

2014, the Company issued 165,000 common shares at a deemed price of $0.26.

On April 24, 2014 the Company entered

into a one year consulting contract with 490072 Ontario Ltd.

operating as HEC

Group, wholly owned company by Greg Boone as Human Resources Manager.

signing of the contract of acceptance the Company issued 110,000 common shares

at a deemed price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Boone can be eligible to receive up to a total of 1,650,000 common shares of the Company.

2014, the Company issued 165,000 common shares at a deemed price of

On April 24, 2014 the Company entered into a one year

consulting contract with Jason Springett as Master Grower for Ontario

Operations for a monthly fee of $3,375 plus GST.

Upon signing of the

contract of acceptance the Company issued 110,000 common shares at a

deemed price of $0.32.

Consulting agreement amended on June 18, 2014, Mr.

Springett can be eligible to receive up to a total of 1,650,000 common

shares of the Company.

On July 17, 2014, the Company issued 165,000 common

shares at a deemed price of $0.26.

On April 24, 2014 the Company entered into a one year

consulting contract with 2342878 Ontario Inc.

wholly owned company by

Chris Hornung as Assistant Manager.

Upon signing of the contract of

acceptance the Company issued 110,000 common shares at a deemed price of

On July 14, 2014, the Company accepted Mr.

On May 5, 2014 the Company entered into a one year

consulting contract as Security Consultant with Bmullan and Associates, a

company wholly owned by Brian Mullan.

Upon signing of the contract of

acceptance the Company issued 55,000 common shares at a deemed price of

Based on the milestones listed in the contract, Mr.

Mullan or his

company can be eligible to receive up to a total of 275,000 common shares

of the Company.

On July 17, 2014, the Company issued 55,000 common shares

at a deemed price of $0.26.

What changed 10-Q/A

Item 1. Financial Statements