What changed in this filing

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Item 1. Financial Statements

2026-04-13 compared with 2026-01-13 · 108 added, 65 removed, 410 unchanged (30% of the section changed)

13 unchanged sentences

Property & equipment, net

Total Non-current Assets

LIABILITIES and STOCKHOLDERS' EQUITY

8 unchanged sentences

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

22,225,846 and 19,559,179 at November 30, 2025 and August 31, 2025, respectively

24,887,446 and 19,559,179 at February 28, 2026 and August 31, 2025, respectively

Additional paid-in capital

11 unchanged sentences

(Expressed in US Dollars except share amounts)

Three Months Ended November 30,

Three Months Ended

Six Months Ended

Cost of goods sold

6 unchanged sentences

( 2,751,012 )

( 3,025,534 )

( 5,441,719 )

Other income (loss)

Interest income

Unrealized loss on marketable securities

Unrealized gain (loss) on marketable securities

Total other income (loss)

4 unchanged sentences

$ ( 5,423,600 )

$ ( 1,452,732 )

$ ( 2,716,972 )

$ ( 3,050,235 )

$ ( 5,423,600 )

Net loss attributable to non-controlling interest

2 unchanged sentences

$ ( 2,713,212 )

Other comprehensive income (loss)

$ ( 3,044,986 )

$ ( 5,416,911 )

Other comprehensive income

Foreign currency translation adjustment

2 unchanged sentences

$ ( 2,808,467 )

$ ( 3,030,095 )

$ ( 5,515,341 )

Basic and diluted loss per share

4 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three Months Ended November 30, 2025 and 2024

For the Six Months Ended February 28, 2026 and 2025

(Expressed in US Dollars)

Non-controlling

Stockholders'

11 unchanged sentences

$ ( 389,438 )

Shares sold for cash

Stock-based compensation

Foreign currency translation adjustment

( 1,449,979 )

Non-controlling interest

Balance February 28, 2026

( 66,505,599 )

Balance August 31, 2024

10 unchanged sentences

$ ( 380,278 )

Shares sold for cash

Stock-based compensation

Foreign currency translation adjustment

( 2,713,212 )

Non-controlling interest

Balance February 28, 2025

( 56,975,683 )

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

LEXARIA BIOSCIENCE CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended February 28, 2026 and 2025

(Expressed in US Dollars)

Three Months Ended November 30,

Cash flows used in operating activities

4 unchanged sentences

Depreciation and amortization

Impairment loss

Noncash lease expense

6 unchanged sentences

Accounts payable and accrued liabilities

( 1,280,437 )

Operating lease liability

4 unchanged sentences

Cash flows used in investing activities

Short-term investments

Additions to intellectual property

1 unchanged sentence

Net cash used in investing activities

Cash flows provided by financing activities

Cash flows from financing activities

Proceeds from shares sold for cash

Net cash provided by financing activities

Net cash from financing activities

Effect of exchange rate changes on cash

9 unchanged sentences

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2025

February 28, 2026

(Expressed in U.S.

3 unchanged sentences

(“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.

Our current focus is the investigation of the incorporation of our DehydraTECH drug delivery technology with GLP-1 and GIP drugs to reduce adverse events of these drugs while maintaining or enhancing their effectiveness.

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.

Our current focus is the investigation of the incorporation of our DehydraTECH drug delivery technology with GLP-1 and GIP drugs to enhance absorption and reduce adverse side effects.

Revenues have historically been 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 revenue 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 have also performed contract services in R&D for customer specific formulations that are used in comparison testing to customers’ existing products.

Going Concern

1 unchanged sentence

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

Net losses attributable to shareholders were $ 1.6 million and $ 2.7 million for the three months ended November 30, 2025, and November 30, 2024, respectively.

As of November 30, 2025, we had an accumulated deficit of $ 65.1 million.

Net losses attributable to shareholders were $ 3.0 million and $ 5.4 million for the six months ended February 28, 2026, and February 28, 2025, respectively.

As of February 28, 2026, we had an accumulated deficit of $ 66.5 million.

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

1 unchanged sentence

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

During the three months ended November 30, 2025, we raised $ 3.4 million in net proceeds from the sale of securities pursuant to our Registered Direct Offering which closed in September 2025.

During the six months ended February 28, 2026, we raised $ 6.5 million in net proceeds from the sale of securities pursuant to our Registered Direct Offerings which closed in September 2025 and December 2025.

We may offer securities in response to market conditions or other circumstances if we believe such a plan of financing is required to advance the Company’s business plans.

8 unchanged sentences

If adequate additional funds are not available when required, management may need to curtail its development efforts and planned operations to conserve cash.

As of November 30, 2025, the Company had cash and cash equivalents of approximately $ 4.3 million to settle $ 1.5 million in current liabilities.

As of February 28, 2026, the Company had cash and cash equivalents of approximately $ 5.1 million to settle $ 0.2 million in current liabilities.

We have performed a review of our cash flow forecast, and given our current development plans and cash management efforts, we anticipate that our cash resources will be sufficient to fund operations through the first quarter of fiscal year 2027.

15 unchanged sentences

Cash and Cash Equivalents

Cash and cash equivalents include cash-on-hand and demand deposits with financial institutions and other short-term investments with maturities of less than three months when acquired and readily convertible to known cash amounts.

The Company had no cash equivalents as of November 30, 2025, or August 31, 2025.

Cash and cash equivalents include cash-on-hand and demand deposits with financial institutions and other short-term investments with maturities of less than six months when acquired and readily convertible to known cash amounts.

The Company had no cash equivalents as of February 28, 2026, or August 31, 2025.

Short-term investments

5 unchanged sentences

There have been no purchases or sales of equity securities.

The Company recognized unrealized losses on its equity securities of $ 22,093 and $ 15,932 for the three months ended November 30, 2025 and 2024, respectively.

The Company recognized an unrealized loss on its equity securities of $ 22,093 for the six months ended February 28, 2026 and an unrealized gain of $ 18,108 for the six months ended February 28, 2025.

The Company accounts for its leases under ASC 842, Leases (“ASC 842”).

Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use asset and lease liability.

Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are reported on the consolidated balance sheet as both a right-of-use asset and lease liability.

We determined the initial classification and measurement of our right-of-use assets and lease liabilities at the lease commencement date and thereafter if modified.

35 unchanged sentences

The Company recognizes usage fees in the period when our licensees recognize sales of end-products that incorporate our licensed technology.

No sales-based usage fees were recognized for the three months ended November 30, 2025 and November 30, 2024.

No sales-based usage fees were recognized for the six months ended February 28, 2026 and February 28, 2025.

Third Party Contracted Manufacturing

10 unchanged sentences

These expenditures are comprised of both in-house research programs and through third-party contracts including consultants, academic and non-profit institutions, contract manufacturing, and other expenses.

Australian Research and Development Tax Credit

The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met.

Under the program, a percentage of eligible research and development expenses incurred by the Company through its Australian subsidiary are reimbursed.

Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the incentive regime.

The Company recognizes such benefits when both of the following conditions have been met:

1) the Company is able to comply with the relevant conditions of the credit and;

2) the credit has been received.

The tax credit related to fiscal year spending for 2024 in the amount of $ 39,134 has been received and is included in our fiscal year 2025 financial statements.

The tax credit related to fiscal year spending for 2025 has yet to be received and thus remains unrecorded as of this time.

Intellectual property expenses

25 unchanged sentences

Diluted loss per share is equivalent to basic loss per share if the potential exercise of the equity-based financial instruments is anti-dilutive.

For the three months ended November 30, 2025 and 2024, the following common stock equivalents were excluded from the computation of diluted loss per share as the result was anti-dilutive:

For the six months ended February 28, 2026 and 2025, the following common stock equivalents were excluded from the computation of diluted loss per share as the result was anti-dilutive:

Stock Options

15 unchanged sentences

Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk as the impact of USD/CAD and USD/AUD exchange rate changes is not expected to be material.

The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of November 30, 2025.

The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of February 28, 2026.

Fair Value Measurement Using

7 unchanged sentences

The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institution, that the credit risk with regard to these deposits is not significant.

In the three months ended November 30, 2025, the Company did not recognize any revenue on a consolidated basis.

In the three months ended November 30, 2024, two customers accounted for 100 % of consolidated revenues.

As of November 30, 2025, the Company had $ 88,044 in sales tax receivable, as compared to $ 194,358 as of August 31, 2025.

In the six months ended February 28, 2026, the Company recognized revenue of $ 20,000 on a consolidated basis.

One customer accounted for 100 % of that total.

In the six months ended February 28, 2025, the Company recognized revenue of $ 357,923 on a consolidated basis.

Two customers accounted for 100 % of that total.

As of February 28, 2026, the Company had $ 42,029 in sales tax receivable, as compared to $ 194,358 as of August 31, 2025.

The Company considers its credit risk to be low for such receivables.

11 unchanged sentences

If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period.

The Company has determined that the impact of this ASU on its consolidated financial statements and related disclosures is immaterial.

Accounting Pronouncements Not Yet Adopted

The Company is currently assessing the effect of this ASU on its consolidated financial statements and related disclosures.

Estimates and Judgments

8 unchanged sentences

Accounts and Other Receivables

Accounts receivable as of November 30, 2025 and August 31, 2025 consist of the following:

Accounts receivable as of February 28, 2026 and August 31, 2025 consist of the following:

Territory license fees

2 unchanged sentences

Prepaid Expenses and Other Current Assets

Prepaid expenses consist of the following as of November 30, 2025 and August 31, 2025:

Prepaid expenses consist of the following as of February 28, 2026 and August 31, 2025:

Advertising & Conferences

10 unchanged sentences

The Company evaluated its patent portfolio to determine whether certain pending applications had been abandoned or will not be pursued.

During the three months ended November 30, 2025, the Company recognized an impairment loss of $ 0 related to those abandoned applications.

The Company recognized $ 4,857 of amortization expense related to patents and licenses in the three months ended November 30, 2025.

The following table summarizes expected future amortization of the Company’s patent portfolio as of November 30, 2025:

During the six months ended February 28, 2026, the Company recognized an impairment loss of $ 0 related to those abandoned applications.

The Company recognized $ 9,953 of amortization expense related to patents and licenses in the six months ended February 28, 2026.

The following table summarizes expected future amortization of the Company’s patent portfolio as of February 28, 2026:

Fiscal Years Ending August 31,

2026 (nine months remaining)

2026 (six months remaining)

Property & Equipment, net

November 30, 2025

February 28, 2026

Leasehold improvements

9 unchanged sentences

$ ( 568,843 )

Depreciation and amortization for the three months ended November 30, 2025 and the year ended August 31, 2025 totaled $ 12,009 and $ 51,225 , respectively, of which $ 0 and $ 0 was included in cost of goods sold, respectively.

Depreciation and amortization for the six months ended February 28, 2026 and the year ended August 31, 2025 totaled $ 26,014 and $ 51,225 , respectively, of which $ 0 and $ 0 was included in cost of goods sold, respectively.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities as of November 30, 2025 and August 31, 2025 consist of the following:

Accounts payable and accrued liabilities as of February 28, 2026 and August 31, 2025 consist of the following:

Accounts Payable

5 unchanged sentences

Balance Ending

A breakdown of our revenues by type for the three months ended November 30, 2025, and November 30, 2024, are as follows:

Three months Ended November 30

The Company recognized $ 0 and $ 174,000 in licensing revenue for the three months ended November 30, 2025, and November 30, 2024, respectively.

A breakdown of our revenues by type for the six months ended February 28, 2026, and February 28, 2025, are as follows:

Six months Ended

The Company recognized $ 20,000 and $ 348,000 in licensing revenue for the six months ended February 28, 2026, and February 28, 2025, respectively.

Licensing revenue consists of IP licensing fees for transfer of the DehydraTECH technology in line with definitive agreements and includes non-refundable minimum performance fees.

During the three-month period ended November 30, 2025, and November 30, 2024, the Company recognized B2B product revenues of $ 0 and $ 9,923 , respectively, that relate to sales of our intermediate products for use by B2B customers in their products.

For the three months ended November 30, 2025, the Company recognized a provision for income taxes of $ 1,791 for its Kelowna Management Services Corp.

During the six-month period ended February 28, 2026, and February 28, 2025, the Company recognized B2B product revenues of $ 0 and $ 9,923 , respectively, that relate to sales of our intermediate products for use by B2B customers in their products.

For the six months ended February 28, 2026, the Company recognized a provision for income taxes of $ 4,389 for its Kelowna Management Services Corp.

Net deferred tax assets are fully offset by a valuation allowance as the Company believes it is more likely than not that the benefit will not be realized.

Issuances of Common Shares and Warrants

During the three months ended November 30, 2025, the Company completed the following issuances of common shares and warrants:

Stockholders' Equity

During the six months ended February 28, 2026, the Company completed the following issuances of common shares and warrants:

On September 26, 2025, the Company, pursuant to a Securities Purchase Agreement, issued 2,666,667 shares of common stock at a purchase price of $ 1.50 per share for gross proceeds of $ 4.0 million.

3 unchanged sentences

We also issued H.C.

Wainwright (“HCW”), the exclusive placement agent for the offering, warrants to purchase up to 93,333 shares at an exercise price of $ 1.875 per share.

Wainwright, the exclusive placement agent for the offering, warrants to purchase up to 93,333 shares at an exercise price of $ 1.875 per share.

HCW was paid 7 % of the gross proceeds and was reimbursed $ 70,000 for its expenses and $ 15,950 in closing fees.

A continuity schedule for warrants for the three months ended November 30, 2025, is presented below:

On December 14, 2025, the Company, pursuant to a Securities Purchase Agreement, issued 2,661,600 shares of common stock at a purchase price of $ 1.315 per share for gross proceeds of $ 3.5 million.

Share issuance costs of $ 0.5 million were charged to additional paid in capital.

The shares were registered pursuant to a take down of the Company’s Form S-3 registration statement.

Concurrently, the Company issued 2,661,600 share purchase warrants, entitling the holder thereof to purchase up to 2,661,600 shares of common stock at a price of $1.19 per share for a period of five years from the effective date of the S-1 Registration Statement registering the shares of common stock issuable upon exercise of the warrants.

We also issued H.C.

Wainwright, the exclusive placement agent for the offering, warrants to purchase up to 93,156 shares at an exercise price of $ 1.6438 per share.

HCW was paid 7 % of the gross proceeds and was reimbursed $ 70,000 for its expenses and $ 15,950 in closing fees.

A continuity schedule for warrants for the six months ended February 28, 2026, is presented below:

Balance, August 31, 2025

Balance, November 30, 2025

A summary of warrants outstanding as of November 30, 2025, is presented below:

Balance, February 28, 2026

A summary of warrants outstanding as of February 28, 2026, is presented below:

Number of Warrants

13 unchanged sentences

Cancelled/expired

Balance November 30, 2025 (outstanding)

Balance November 30, 2025 (exercisable)

The Company did not grant any stock options during the three months ended November 30, 2025 .

Stock-based compensation expense for the three-month periods ended November 30, 2025, and November 30, 2024, totaled $ 74,895 and $ 99,415 , respectively.

As of November 30, 2025, the total unrecognized non-cash compensation costs are $ 316,046 related to 141,638 non-vested stock options with a $ 3.41 weighted average exercise price.

Balance February 28, 2026 (outstanding)

Balance February 28, 2026 (exercisable)

The Company did not grant any stock options during the six months ended February 28, 2026 .

Stock-based compensation expense for the six-month periods ended February 28, 2026, and February 28, 2025, totaled $ 149,790 and $ 266,634 , respectively.

As of February 28, 2026, the total unrecognized non-cash compensation costs are $ 237,567 related to 107,184 non-vested stock options with a $ 3.44 weighted average exercise price.

These costs are expected to be recognized over a weighted average period of 0.8 years.

13 unchanged sentences

Discount rate

Pursuant to the terms of the Company’s lease agreements in effect, the following table summarizes the Company’s maturities of operating lease liabilities as of November 30, 2025:

Pursuant to the terms of the Company’s lease agreements in effect, the following table summarizes the Company’s maturities of operating lease liabilities as of February 28, 2026:

Total lease payments

10 unchanged sentences

The measure of segment profit or loss is net loss as per the Consolidated Statements of Operations and Comprehensive Loss.

The Company invested in additions to intellectual property and purchases of equipment totaling $ 5,099 and $ 0 , respectively, during the three months ended November 30, 2025, and $ 13,159 and $ 24,645 , respectively during the three months ended November 30, 2024.

Three Months Ended November 30,

The Company invested in additions to intellectual property and purchases of equipment totaling $ 20,193 and $ 40,816 , respectively, during the six months ended February 28, 2026, and $ 41,052 and $ 24,646 , respectively during the six months ended February 28, 2025.

Six Months Ended

IP Licensing Segment

7 unchanged sentences

Office and miscellaneous (a)

Impairment Loss

Other income (loss)

8 unchanged sentences

$ ( 5,423,600 )

Office and miscellaneous expense includes office expense, foreign currency exchange gains and losses, bad debt, and other overhead expenses.

(a) Office and miscellaneous expense includes office expense, foreign currency exchange gains and losses, bad debt, and other overhead expenses.

Subsequent Events

On December 14, 2025, we entered into a securities purchase agreement with certain institutional investors, pursuant to which we agreed to sell in a registered direct offering 2,661,600 shares of common stock at a purchase price of $ 1.315 per share for gross and net proceeds of $ 3.5 million and $ 3 million, respectively.

Concurrently, the Company issued 2,661,600 share purchase warrants, entitling the holder thereof to purchase up to 2,661,600 shares of common stock at a price of $1.19 per share for a period of five years from the effective date of the registration statement registering the shares of common stock issuable upon exercise of the warrants.

The securities were issued December 16, 2025, with the shares registered pursuant to a take down of the Company’s Form S-3 registration statement and the warrants and related warrant shares are required to be registered pursuant to a Form S-1 registration statement.

We also issued to HCW, the exclusive placement agent for the offering, warrants to purchase up to 93,156 shares at an exercise price of $ 1.6438 per share.

HCW was paid 7 % of the gross proceeds and was reimbursed $ 70,000 for its expenses and $ 15,950 in closing fees.

On March 17, 2026, the 100,000 shares previously issued to the Company’s Strategic Executive Consultant under a Restricted Stock Award were gifted back to the Company, cancelled, and returned to treasury.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements