What changed in this filing

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Item 1. Financial Statements

2026-07-13 compared with 2026-04-13 · 90 added, 63 removed, 455 unchanged (25% of the section changed)

24 unchanged sentences

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

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

24,787,446 and 19,559,179 at May 31, 2026 and August 31, 2025, respectively

Additional paid-in capital

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Cost of goods sold

10 unchanged sentences

Interest income

Unrealized gain (loss) on marketable securities

Unrealized loss on marketable securities

Total other income (loss)

27 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Six Months Ended February 28, 2026 and 2025

For the Nine Months Ended May 31, 2026 and 2025

(Expressed in US Dollars)

20 unchanged sentences

$ ( 66,505,599 )

$ ( 392,191 )

Cancellation of RSA shares

Stock-based compensation

Foreign currency translation adjustment

Reclassification of deferred offering costs

( 1,991,202 )

Non-controlling interest

Balance May 31, 2026

$ ( 68,496,801 )

$ ( 393,970 )

Balance August 31, 2024

18 unchanged sentences

$ ( 56,975,683 )

$ ( 118,246 )

$ ( 384,038 )

Shares sold for cash

Stock-based compensation

Foreign currency translation adjustment

( 3,789,092 )

Non-controlling interest

Balance May 31, 2025

$ ( 60,764,775 )

$ ( 385,552 )

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

For the Nine Months Ended May 31, 2026 and 2025

(Expressed in US Dollars)

9 unchanged sentences

Lease accretion

Change in operating assets and liabilities

Change in operating assets and liabilites

Accounts receivable

13 unchanged sentences

Net cash used in investing activities

Cash flows from financing activities

Cash flows from/(used in) financing activities

Proceeds from shares sold for cash

Net cash from financing activities

Net cash from/(used in) financing activities

Effect of exchange rate changes on cash

Net change in cash for the period

( 1,908,124 )

Cash at beginning of period

3 unchanged sentences

Non-cash investing/financing activities:

Amortization of deferred offering costs

Cancellation of RSA shares

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

1 unchanged sentence

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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 enhance absorption and reduce adverse side effects.

Our current focus is the investigation of the incorporation of our DehydraTECH drug delivery technology with GLP-1, GIP, and glucagon 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.

4 unchanged sentences

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

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.

Net losses attributable to shareholders were $ 5 million and $ 9.2 million for the nine months ended May 31, 2026, and May 31, 2025, respectively.

As of May 31, 2026, we had an accumulated deficit of $ 68.5 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 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.

During the nine months ended May 31, 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 February 28, 2026, the Company had cash and cash equivalents of approximately $ 5.1 million to settle $ 0.2 million in current liabilities.

As of May 31, 2026, the Company had cash and cash equivalents of approximately $ 3.5 million to settle $ 0.4 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 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.

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 May 31, 2026, or August 31, 2025.

Short-term investments

5 unchanged sentences

There have been no purchases or sales of equity securities.

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 recognized an unrealized loss on its equity securities of $ 22,093 for the nine months ended May 31, 2026 and an unrealized loss of $ 22,267 for the nine months ended May 31, 2025.

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

37 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 six months ended February 28, 2026 and February 28, 2025.

No sales-based usage fees were recognized for the nine months ended May 31, 2026 and May 31, 2025.

Third Party Contracted Manufacturing

12 unchanged sentences

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;

Under the program, a percentage of eligible research and development expenses incurred by Lexaria (AU) Pty Ltd, the Company’s Australian subsidiary, are reimbursed.

Management has assessed Lexaria (AU) Pty Ltd’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the incentive regime.

For the purposes of these consolidated financial statements, the Company recognizes such benefits when both of the following conditions have been met:

1) Lexaria (AU) Pty Ltd 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.

The tax credit related to fiscal year spending for 2025 has yet to be received and thus remains unrecorded at 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 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:

For the nine months ended May 31, 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

10 unchanged sentences

Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

The Company’s financial instruments consist primarily of cash, marketable securities, accounts receivable and payable as well as accrued liabilities.

The Company’s financial instruments consist primarily of cash, short-term investments, marketable securities, accounts receivable and payable as well as accrued liabilities.

The carrying amounts of instruments approximate their fair values due to their short maturities or quoted market prices.

2 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 February 28, 2026.

The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of May 31, 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 six months ended February 28, 2026, the Company recognized revenue of $ 20,000 on a consolidated basis.

In the nine months ended May 31, 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.

In the nine months ended May 31, 2025, the Company recognized revenue of $ 531,923 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.

As of May 31, 2026, the Company had $ 48,998 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 is currently assessing the effect of this ASU on its consolidated financial statements and related disclosures.

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

Estimates and Judgments

8 unchanged sentences

Accounts and Other Receivables

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

Accounts receivable as of May 31, 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 February 28, 2026 and August 31, 2025:

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

Advertising & Conferences

9 unchanged sentences

Balance – ending

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

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:

During the nine months ended May 31, 2026, the Company reviewed its patent portfolio to identify pending applications that had been abandoned or that management does not intend to pursue.

As a result of this review, no impairment loss was recognized.

The Company recognized $ 15,247 of amortization expense related to patents for the nine months ended May 31, 2026.

The following table summarizes expected future amortization of the Company’s patent portfolio as of May 31, 2026:

Fiscal Years Ending August 31,

2026 (six months remaining)

2026 (three months remaining)

Property & Equipment, net

February 28, 2026

Leasehold improvements

9 unchanged sentences

$ ( 568,843 )

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.

Depreciation and amortization related to property and equipment for the nine months ended May 31, 2026 and the year ended August 31, 2025 totaled $ 39,928 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 February 28, 2026 and August 31, 2025 consist of the following:

Accounts payable and accrued liabilities as of May 31, 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 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.

A breakdown of our revenues by type for the nine months ended May 31, 2026, and May 31, 2025, are as follows:

Nine months Ended

The Company recognized $ 20,000 and $ 522,000 in licensing revenue for the nine months ended May 31, 2026, and May 31, 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 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.

During the nine-month period ended May 31, 2026, and May 31, 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 nine months ended May 31, 2026, the Company recognized a provision for income taxes of $ 4,403 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.

Stockholders' Equity

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

During the nine months ended May 31, 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.

12 unchanged sentences

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:

A continuity schedule for warrants for the nine months ended May 31, 2026, is presented below:

Balance, August 31, 2025

Balance, February 28, 2026

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

Balance, May 31, 2026

A summary of warrants outstanding as of May 31, 2026, is presented below:

Number of Warrants

13 unchanged sentences

Cancelled/expired

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.

Balance May 31, 2026 (outstanding)

Balance May 31, 2026 (exercisable)

The Company granted 45,000 stock options with an exercise price of $ 0.65 and a term of five years to certain consultants and scientific advisory board members during the nine months ended May 31, 2026 .

The fair value of the options amounted to $ 18,975 and was determined using the Black-Scholes option pricing model with the following assumptions:

Expected volatility

Risk-free interest rate

Expected life

Dividend yield

Estimated fair value per option

Stock-based compensation expense for the nine-month periods ended May 31, 2026, and May 31, 2025, totaled $ 242,734 and $ 736,770 , respectively.

As of May 31, 2026, the total unrecognized non-cash compensation costs are $ 177,363 related to 81,730 non-vested stock options with a $ 3.41 weighted average exercise price.

These costs are expected to be recognized over a weighted average period of 0.5 years.

Return of Shares

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 and cancelled.

Commitments, Significant Contracts and Contingencies

8 unchanged sentences

Total lease liabilities

Operating lease cost

Total operating lease cost

Operating cash flows for lease

1 unchanged sentence

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 February 28, 2026:

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 May 31, 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 $ 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

The Company invested in additions to intellectual property and purchases of equipment totaling $ 46,445 and $ 40,816 , respectively, during the nine months ended May 31, 2026, and $ 60,496 and $ 24,645 , respectively during the nine months ended May 31, 2025.

Nine months Ended

IP Licensing Segment

18 unchanged sentences

$ ( 9,214,206 )

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

Subsequent Events

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.

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

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