Document and Entity Information
Document and Entity Information | 3 Months Ended |
Nov. 30, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | Lexaria Bioscience Corp. |
Entity Central Index Key | 0001348362 |
Entity Filer Category | Non-accelerated Filer |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | This Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333- 238915) (the “Registration Statement”) of Lexaria Bioscience Corp. (the “Company”) is being filed pursuant to the undertakings in Item 17 of the Registration Statement to update and supplement the information contained in the Registration Statement as originally declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 11, 2020, to (i) include the information contained in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020 that was filed with the SEC on October 15, 2020 and (ii) to update certain other information in the Registration Statement. This Post-Effective Amendment No. 2 is also being filed to deregister 247,559 shares of the Company’s common stock that have been sold under the Registration Statement 22,570 shares of common stock underlying expired warrants and 2,000 shares of common stock underlying warrants due to failure to provide confirmation of ownership. For this reason, this Post-Effective Amendment No. 2 only includes 483,568 shares of the Company’s common stock registered under the Registration Statement.    All share and per share information in this Post-Effective Amendment No. 2 has been adjusted to reflect a one-for-thirty reverse stock split of the Company’s common stock, which was effective at 4:30 P.M Eastern time on January 11, 2021.   No additional securities are being registered under this Post-Effective Amendment No. 2. All applicable registration fees were paid at the time of the original filing of the Registration Statement.   The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.   |
Entity Small Business | true |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Current | |||
Cash and cash equivalents | $ 525,341 | $ 1,293,749 | $ 1,285,147 |
Marketable securities (Note 19) | 43,731 | 19,321 | 64,214 |
Accounts receivable (Note 7) | 427,330 | 313,925 | 273,145 |
Inventory (Note 8) | 125,963 | 116,871 | 127,396 |
Prepaid expenses and deposit (Note 18) | 136,016 | 182,095 | 68,927 |
Current assets from discontinued operations (Note 21) | 49,333 | 105,250 | |
Total Current Assets | 1,307,714 | 1,925,961 | 1,818,829 |
Non-current assets, net | |||
Lease right of use | 118,193 | 126,920 | 0 |
Intellectual Property (Note 9) | 296,058 | 292,000 | 265,127 |
Property & equipment (Note 10) | 452,355 | 483,357 | 591,263 |
Total Non-current Assets | 866,606 | 902,277 | 856,390 |
TOTAL ASSETS | 2,174,320 | 2,828,238 | 2,675,219 |
Current | |||
Accounts payable and accrued liabilities (Note 11) | 83,095 | 86,920 | 136,411 |
Deferred revenue (Note 14) | 35,500 | 44,255 | |
Due to related party (Note 15) | 87,185 | 58,704 | 48,096 |
Lease current (Note 17) | 36,695 | 36,038 | 0 |
Current liabilities from discontinued operations (Note 21) | 0 | 250 | |
Total Current Liabilities | 242,475 | 225,917 | 184,507 |
Long Term | |||
Lease long term(Note 17) | 79,969 | 89,393 | |
Loan payable | 30,852 | 30,670 | |
Total Long Term Liabilities | 110,821 | 120,063 | |
TOTAL LIABILITIES | 353,296 | 345,980 | 184,507 |
STOCKHOLDERS' EQUITY | |||
Share capital (Note 12) Authorized: 220,000,000 common voting shares with a par value of $0.001 per share Issued and outstanding:90,044,312 common shares at August 31, 2020 and 78,787,134 common shares at August 31, 2019 | 3,001 | 90,044 | 78,787 |
Additional paid-in capital (Note 12, 13) | 30,373,285 | 30,237,355 | 26,172,453 |
Deficit | (28,498,226) | (27,802,198) | (23,868,202) |
Equity attributable to shareholders of the Company | 1,878,060 | 2,525,201 | 2,383,038 |
Non-Controlling Interest | (57,036) | (42,943) | 107,674 |
Total Stockholders' Equity | 1,821,024 | 2,482,258 | 2,490,712 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,174,320 | $ 2,828,238 | $ 2,675,219 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Common stock, shares authorized | 220,000,000 | 220,000,000 | 220,000,000 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 3,001,476 | 90,044,312 | 78,787,134 |
Common stock, shares, outstanding | 3,001,476 | 90,044,312 | 78,787,134 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue (Note 14) | $ 295,656 | $ 10,332 | $ 384,543 | $ 222,610 |
Cost of goods sold | 64,478 | 7,853 | 99,378 | 22,893 |
Gross profit | 231,178 | 2,479 | 285,165 | 199,717 |
Expenses | ||||
Accounting and audit | 15,628 | 19,036 | 78,650 | 77,388 |
Depreciation and amortization (Note 8, 9, 10) | 27,929 | 27,512 | 112,750 | 60,550 |
Advertising and promotions | 27,906 | 45,861 | 204,277 | 515,360 |
Bad debt | 12,000 | 50,000 | 75,000 | |
Consulting (Notes 13, 15, 17) | 256,014 | 483,796 | 2,193,076 | 1,444,735 |
Investor relations | 33,964 | 17,515 | 184,277 | 203,893 |
Legal and professional | 248,695 | 52,355 | 371,844 | 670,863 |
Office and miscellaneous | 76,517 | 74,027 | 292,880 | 297,209 |
Research and development | 192,261 | 107,463 | 387,074 | 555,730 |
Travel | 532 | 21,853 | 47,336 | 100,587 |
Wages & salaries | 75,498 | 87,593 | 401,283 | 333,199 |
Realized loss on disposal of marketable securities (Note 19) | 18,198 | |||
Unrealized Loss on marketable securities (Note 19) | (24,410) | 41,574 | 19,893 | 16,434 |
Inventory writeoff (Note 8) | 1,765 | 8,240 | 7,182 | |
Total Operating Expenses | 944,299 | 978,585 | 4,369,778 | 4,358,130 |
Net loss from continuing operations | (713,121) | (976,106) | (4,084,613) | (4,158,413) |
Discontinued operations | ||||
Income from discontinued operations (Note 21) | 3,000 | 51,344 | ||
Net (loss) and comprehensive loss for the year | (710,121) | (924,762) | (4,084,613) | (4,158,413) |
Net (loss) and comprehensive loss attributable to: | ||||
Common shareholders | (696,028) | (907,312) | (3,933,996) | (4,099,420) |
Non-controlling interest | $ (14,093) | $ (17,450) | (150,617) | (58,993) |
Basic and diluted (loss) per share | ||||
Continuing operations | $ (0.24) | $ (0.35) | ||
Discontinued operations | $ 0 | $ 0.02 | ||
Net loss from continuing operations | $ (713,121) | $ (976,106) | $ (4,084,613) | $ (4,158,413) |
Basic and diluted (loss) per share (in dollars per share) | $ (0.24) | $ (0.33) | $ (0.05) | $ (0.05) |
Weighted average number of common shares outstanding | ||||
Basic and diluted (in shares) | 3,001,476 | 2,636,578 | 83,201,271 | 77,792,263 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Cash flows used in operating activities | ||||
Net loss and comprehensive loss | $ (710,121) | $ (924,762) | $ (4,084,613) | $ (4,158,413) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Stock based compensation | 48,887 | 162,414 | 1,139,270 | 626,692 |
Depreciation and amortization (Note 8, 9, 10) | 27,929 | 27,512 | 112,750 | 60,550 |
Inventory writeoff (Note 8) | 1,765 | 8,240 | 7,182 | |
Bad debt expense | 12,000 | 50,000 | 75,000 | |
Noncash right of use lease expense | 8,727 | (34,831) | ||
Realized loss on disposal of marketable securities (Note 19) | 18,198 | |||
Unrealized loss on marketable securities (Note 19) | (24,410) | 41,574 | 19,893 | 16,434 |
Unrealized foreign exchange | 182 | |||
Common shares issued for services | 100,000 | 234,500 | ||
Warrants issued for services | 70,752 | 168,833 | 52,817 | |
Change in working capital | ||||
Accounts receivable | (230,405) | 155,010 | (90,780) | (138,644) |
Inventory | (6,067) | (6,160) | 4,213 | (47,345) |
Prepaid expenses and deposits | 46,079 | (27,140) | (113,168) | 124,805 |
Accounts payable and accrued liabilities | (3,825) | (43,382) | (49,491) | 100,626 |
Due to related parties | 28,481 | (10,896) | 10,608 | 40,241 |
Operating lease liability | (8,767) | 33,342 | ||
Deferred revenue | (8,755) | 44,255 | ||
Net cash used in operating activities | (818,300) | (555,079) | (2,663,281) | (3,005,555) |
Cash flows used in investing activities | ||||
Sale of marketable securities (Note 20) | 6,802 | |||
Intellectual Property | (5,775) | (5,710) | (33,645) | (122,982) |
Property & equipment | 0 | 0 | 0 | (646,183) |
Net cash used in investing activities | (5,775) | (5,710) | (26,843) | (769,165) |
Cash flows from financing activities | ||||
Investment from NCI | 1,000,000 | |||
Long Term Loan | 30,670 | |||
Proceeds from issuance of equity | 706,704 | 2,668,056 | 2,332,683 | |
Net cash from financing activities | 706,704 | 2,698,726 | 3,332,683 | |
Decrease in cash and cash equivalents | (768,408) | 48,174 | 8,602 | (442,037) |
Cash and cash equivalents, beginning of year | 1,293,749 | 1,285,147 | 1,285,147 | 1,727,184 |
Cash and cash equivalents, end of year | 525,341 | 1,333,321 | 1,293,749 | 1,285,147 |
Supplemental information of cash flows: | ||||
Income taxes paid in cash | $ 3,540 | 957 | $ (12,978) | 13,919 |
Reclassification of NCI to additional paid in capital on acquisition | $ 833,333 | |||
Subscription Receivable | $ 110,025 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | DEFICIT | NCI | AOCI | Total | |
Balance at Aug. 31, 2018 | $ 75,533 | $ 22,095,682 | $ (19,768,782) | $ (14,247) | $ 2,388,186 | ||
Balance (Shares) at Aug. 31, 2018 | 75,533,471 | ||||||
Shares issued for services | $ 250 | 234,250 | $ 234,500 | [1] | |||
Shares issued for services (Shares) | 250,000 | 250,000 | [1] | ||||
Stock based compensation | 626,692 | $ 626,692 | |||||
Private Placement | $ 947 | 1,469,363 | 1,470,310 | ||||
Private Placement (Shares) | 947,150 | ||||||
Warrants issued for services | 52,817 | 52,817 | |||||
Exercise of stock options | $ 430 | 65,820 | $ 66,250 | ||||
Exercise of stock options (in shares) | 430,000 | 430,000 | |||||
Exercise of warrants | $ 1,627 | 794,496 | $ 796,123 | ||||
Exercise of warrants (in shares) | 1,626,513 | ||||||
Net loss | (4,099,420) | (4,099,420) | |||||
Net loss non-controlling interest | (58,993) | ||||||
Non-controlling Interest | $ (58,993) | (58,993) | |||||
Other comprehensive income (loss) | 14,247 | 14,247 | |||||
Subsidiary Investment | 833,333 | 166,667 | 1,000,000 | ||||
Balance at Aug. 31, 2019 | $ 78,787 | 26,172,453 | (23,868,202) | 107,674 | 0 | 2,490,712 | |
Balance (Shares) at Aug. 31, 2019 | 78,787,134 | ||||||
Stock based compensation | 162,414 | 162,414 | |||||
Private Placement | $ 61 | 815,959 | 816,020 | ||||
Private Placement (Shares) | 60,792 | ||||||
Warrants issued for services | 70,752 | 70,752 | |||||
Net loss | (907,313) | (907,312) | |||||
Net loss non-controlling interest | (17,450) | ||||||
Non-controlling Interest | (17,450) | (17,450) | |||||
Balance at Nov. 30, 2019 | $ 2,687 | 27,297,739 | (24,775,515) | 90,224 | 2,615,135 | ||
Balance (Shares) at Nov. 30, 2019 | 2,687,028 | ||||||
Balance at Aug. 31, 2019 | $ 78,787 | 26,172,453 | (23,868,202) | 107,674 | 0 | 2,490,712 | |
Balance (Shares) at Aug. 31, 2019 | 78,787,134 | ||||||
Shares issued for services | $ 347 | 99,653 | $ 100,000 | [1] | |||
Shares issued for services (Shares) | 347,222 | 347,222 | [1] | ||||
Stock based compensation | 1,139,270 | $ 1,139,270 | |||||
Private Placement | $ 10,690 | 2,627,336 | 2,638,026 | ||||
Private Placement (Shares) | 10,689,956 | ||||||
Warrants issued for services | 168,833 | 168,833 | |||||
Exercise of stock options | $ 220 | 29,810 | $ 30,030 | ||||
Exercise of stock options (in shares) | 220,000 | 7,333 | |||||
Net loss | (3,933,996) | 0 | $ (3,933,996) | ||||
Net loss non-controlling interest | (150,617) | ||||||
Non-controlling Interest | (150,617) | (150,617) | |||||
Balance at Aug. 31, 2020 | $ 90,044 | 30,237,355 | (27,802,198) | (42,943) | 0 | 2,482,258 | |
Balance (Shares) at Aug. 31, 2020 | 90,044,312 | ||||||
Balance at Nov. 30, 2019 | $ 2,687 | 27,297,739 | (24,775,515) | 90,224 | 2,615,135 | ||
Balance (Shares) at Nov. 30, 2019 | 2,687,028 | ||||||
Stock based compensation | 294,293 | 294,293 | |||||
Exercise of stock options | $ 4 | 10,996 | 11,000 | ||||
Exercise of stock options (in shares) | 3,667 | ||||||
Net loss | (950,344) | (950,344) | |||||
Non-controlling Interest | (47,148) | (47,148) | |||||
Balance at Feb. 29, 2020 | $ 2,691 | 27,603,028 | (25,725,859) | 43,076 | 1,922,936 | ||
Balance (Shares) at Feb. 29, 2020 | 2,690,695 | ||||||
Stock based compensation | 682,563 | 682,563 | |||||
Private Placement | $ 296 | 1,887,310 | 1,887,606 | ||||
Private Placement (Shares) | 295,540 | ||||||
Warrants issued for services | 98,081 | 98,081 | |||||
Net loss | (1,361,381) | (1,361,381) | |||||
Non-controlling Interest | (29,272) | (29,272) | |||||
Balance at May. 31, 2020 | $ 2,986 | 30,270,983 | (27,087,240) | 13,804 | 3,200,533 | ||
Balance (Shares) at May. 31, 2020 | 2,986,235 | ||||||
Shares issued for services | $ 12 | 99,988 | 100,000 | ||||
Shares issued for services (Shares) | 11,574 | ||||||
Private Placement | (65,600) | (65,600) | |||||
Exercise of stock options | $ 4 | 19,026 | 19,030 | ||||
Exercise of stock options (in shares) | 3,667 | ||||||
Net loss | (714,958) | (714,958) | |||||
Non-controlling Interest | (56,747) | (56,747) | |||||
Balance at Aug. 31, 2020 | $ 90,044 | 30,237,355 | (27,802,198) | (42,943) | $ 0 | 2,482,258 | |
Balance (Shares) at Aug. 31, 2020 | 90,044,312 | ||||||
Stock based compensation | 48,887 | 48,887 | |||||
Net loss | (696,028) | (696,028) | |||||
Net loss non-controlling interest | (14,093) | ||||||
Non-controlling Interest | (14,093) | (14,093) | |||||
Balance at Nov. 30, 2020 | $ 3,001 | $ 30,373,285 | $ (28,498,226) | $ (57,036) | $ 1,821,024 | ||
Balance (Shares) at Nov. 30, 2020 | 3,001,476 | ||||||
[1] | The Company awarded the restricted common shares as required by consulting contracts. |
Organization, Business and Goin
Organization, Business and Going Concern | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Organization, Business And Going Concern [Abstract] | ||
Organization, Business and Going Concern | 1. Organization, Business and Going Concern Lexaria Bioscience Corp. (“Lexaria”, or the “Company”) was formed on December 9, 2004 under the laws of the State of Nevada. In March of 2014, the Company began work in the fields of enhanced delivery of active ingredients and drugs. In May 2016, the Company commenced out-licensing its patented DehydraTECH™ technology (the “Technology”) for improved delivery of bioactive compounds that promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company has its office in Kelowna, BC, Canada. The Company’s unaudited interim consolidated financial statements included herein 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. 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, 2020. The Company’s unaudited interim consolidated financial statements have been prepared in accordance with US GAAP 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 recurring losses from operations and net capital deficiency raise substantial doubt about the Company’s ability to continue as a going concern. The Company requires additional funds or revenues to maintain its operations and developments. Management’s plans in this regard are to raise equity and debt financing as required, but there is no certainty that such financing will be available or that it will be available at acceptable terms. The outcome of these matters cannot be predicted at this time. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments may adversely affect workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time. During November of 2020, our Board of Directors ("Board") approved a plan to sell the businesses assets underlying our Canpharm THC related segment. As a result, the related financial results were reflected in our consolidated statement of income, retrospectively, as discontinued operations beginning in the first quarter of fiscal 2021. On November 18, 2020, we signed a definitive agreement to sell the assets. As at November 30, 2020, the transaction was pending final approval from the TSX Venture Exchange. As a result, the related assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheet are classified as discontinued operations. See "Note 21 - Discontinued Operations" for additional information. Subsequent to November 30, 2020, the Company approved a 1:30 reverse stock split with no fractional shares issued. All share and per share information within these condensed interim consolidated financial statements have been retroactively restated to reflect the effects of the approved reversed stock split. | 1. Organization, Business and Going Concern Lexaria Bioscience Corp. (“Lexaria”, or the “Company”) was formed on December 9, 2004 under the laws of the State of Nevada. In March of 2014, the Company began its entry into the bioscience and alternative health and wellness business. In May 2016, the Company commenced out-licensing its patented DehydraTECH™ technology (“DehydraTECH”) for improved delivery of bioactive compounds that promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company has its office in Kelowna, BC, Canada. The Company’s consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States (US GAAP) 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 recurring losses from operations and net capital deficiency raise substantial doubt about the Company’s ability to continue as a going concern. The Company requires additional funds to maintain its operations and developments. Management’s plans in this regard are to raise equity and debt financing as required, but there is no certainty that such financing will be available or that it will be available at acceptable terms. The outcome of these matters cannot be predicted at this time. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments may adversely affect workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time. |
Business Risk and Liquidity
Business Risk and Liquidity | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Business Risk And Liquidity [Abstract] | ||
Business Risk and Liquidity | 2. Business Risk and Liquidity The Company is subject to several categories of risk associated with its operating activities. Although we intend to develop our businesses 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. We believe that we will be able to continue 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 permits and failing to obtain or retain required licenses could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the cultivation, processing, distribution, or utilization of cannabis or cannabis derived components. Lexaria does have an ancillary involvement risk via out-licensing of its patented technology to licensees that choose to utilize DehydraTECH to manufacture products that contain locally or state approved but federally regulated and controlled contents. There can be no guarantee that changes in the regulatory framework and environment will not occur and such changes could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the production or sale of any products containing nicotine. Products containing nicotine have historically been involved in litigation in the USA. Lexaria’s corporate licensee may introduce products containing nicotine that utilize DehydraTECH to the US consumer market, which could therefore introduce third-party risks to Lexaria. Lexaria and its subsidiaries are not involved directly or indirectly in the production or sale of any pharmaceutical or antiviral products. Licensees may enhance their product’s delivery using our Technology, which could therefore introduce third-party risks to Lexaria. | 2. Business Risk and Liquidity The Company is subject to several categories of risk associated with its operating activities. Although we intend to develop our businesses 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. We 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 permits and failing to obtain or retain required licenses could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the cultivation, processing, distribution, or utilization of cannabis or cannabis derived components. Lexaria does have an ancillary involvement risk via out-licensing of its patented technology to licensees that choose to utilize DehydraTECH to manufacture products that contain locally or state approved but federally regulated and controlled contents. There can be no guarantee that changes in the regulatory framework and environment will not occur and such changes could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the production or sale of any products containing nicotine. Products containing nicotine have historically been involved in litigation in the USA. Lexaria’s corporate licensee may introduce products containing nicotine that utilize DehydraTECH to the US consumer market, which could therefore introduce third-party risks to Lexaria. Lexaria and its subsidiaries are not involved directly or indirectly in the production or sale of any pharmaceutical or anti-viral products. Licensees may enhance their product’s delivery using our Technology, which could therefore introduce third-party risks to Lexaria. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Accounting Policies [Abstract] | ||
Significant Accounting Policies | 3. 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, 2020. | 3. Significant Accounting Policies a) Accounting Principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. All amounts, unless otherwise stated, are in United States dollars. b) Revenue Recognition Product Revenue Revenue from the sale of products is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured, which typically occurs upon shipment. The Company reports its sales net of the amount of actual sales returns. Sales tax collected from customers is excluded from net sales. Licensing Revenue from Intellectual Property We recognize revenue for license fees at a point in time following the transfer of our intellectual property, namely our patented lipid nutrient infusion technology DehydraTECH for infusing Active Pharmaceutical Ingredients (“API”), to the licensee, which typically occurs on delivery of documentation. Usage Fees from Intellectual Property We recognize revenue for usage fees when usage of our DehydraTECH intellectual property occurs by licensees infusing an API into one or more of their product lines for sale. c) Inventory and Cost of Sales The Company’s inventory consists of finished goods, work in progress, and raw materials. In all classes, inventory is valued at the lower of cost or market. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing), utilities and overhead expenses. d) Cash and Cash Equivalents Cash equivalents comprise certain highly liquid instruments with a maturity of three months or less when purchased. As of August 31, 2020, and August 31, 2019, the Company held cash only. e) Equipment Equipment is stated at cost less accumulated depreciation and impairment, and depreciated using the straight-line method over their useful lives or by units of production. f) Patents Capitalized patent costs represent legal costs incurred to establish patents. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and are expensed as incurred. Capitalized patent costs are amortized on a straight-line basis over the remaining life of the patent. The Company was granted its first patent on October 25, 2016, with a legal life of 20 years from the patent application’s filing date g) Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expenses in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the Board of Directors for their services on the Board of Directors, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. Stock-based payments issued to non-employees are recorded at their fair values and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. For equity instruments granted the Company recognizes stock-based compensation expense on vesting. h) Loss Per Share The Company applies the guidance in ASC 260 Earnings Per Share. Loss per share is computed using the weighted average number of shares outstanding during the year. Diluted loss per share is equivalent to basic loss per share because the potential exercise of the equity-based financial instruments was anti-dilutive. i) Foreign Currency Translation The Company’s operations are located in the United States of America and Canada, and it has offices in Canada. The Company maintains its accounting records in U.S. Dollars, as follows: At the transaction date, each asset, liability, revenue and expense that was acquired or incurred in a foreign currency is translated into U.S. dollars by using the exchange rate in effect at that date. At the year end, monetary assets and liabilities are translated at the exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in profit or loss. j) Financial Instruments ASC 820 Fair Value Measurements and Disclosures, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and 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, accounts payable and accrued liabilities, and due to related parties. The carrying amounts of cash, accounts and other receivable, accounts payable and accrued liabilities, and due to related parties approximate their fair values due to their short maturities or quoted market prices. The Company is located in Canada, which results in exposure to market risks from changes in foreign currency rates. The foreign currency exchange risk is the financial risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk as the Company does not hold a significant position in foreign currencies, such as the Canadian dollar, and the impact of a change in a few basis points for USD/CAD is not expected to be material. k) Income Taxes The Company applies the guidance in ASC 740, Income Taxes, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. l) Impairment of Long-Lived Assets Long-lived assets, including equipment, and intangible assets, such as the Company’s patents, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to the profit or loss. Intangible assets with indefinite lives are tested for impairment annually and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. m) Comprehensive Income The Company applies ASC 220, Comprehensive Income, which establishes standards for reporting and presentation of comprehensive income, its components and accumulated balances. The Company discloses this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity changes except those transactions resulting from investments by owners and distributions to owners. n) Credit Risk and Receivable Concentration The Company places its cash with a high credit quality financial institution. As of August 31, 2020, the Company had approximately $1,293,749 in the bank (August 31, 2019: $1,285,147). As at August 31, 2020 we had $143,500 (2019 – $106,000) in IP Territory license fees receivable (Note 7) consisting of amounts due from three licensees (2019 – three). These receivable amounts are based on contractual terms for payments that are payable within twelve months of signing the definitive agreements or routine IP usage fees. To date these licensees have performed all of their required obligations. The Company incurred $50,000 in bad debt in fiscal 2020 (2019 – $75,000). As at August 31, 2020, the Company had $87,933 (2019 - $161,418) in sales tax receivable (Note 7). The Company considers its credit risk to be low for such receivables. o) Commitments and Contingencies In accordance with ASC 450-20, Accounting for Contingencies, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Historically, the Company has not experienced any material claims. p) Research and Development Research and development costs are expensed as incurred. q) Leases On September 1, 2019, we adopted ASC Topic 842, Leases (“ASC 842”) using the optional transition method and applied the standard only to leases that existed at that date. Under the optional transition method, we do not need to restate the comparative periods in transition and will continue to present financial information and disclosures for periods before September 1, 2019, in accordance with ASC Topic 840. We have elected the package of practical expedients allowed under ASC Topic 842, which permits us to account for our existing operating leases as operating leases under the new guidance, without reassessing our prior conclusions about lease identification, lease classification and initial direct cost. As a result of the adoption of the new lease accounting guidance, we recognized on September 1, 2019, operating lease right-of-use assets of $160,289 and operating lease liabilities of $158,773. 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. The lease term includes any renewal options and termination options that we are reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, we use our incremental borrowing rate. The incremental borrowing rate is determined by using the rate of interest that we would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment. Rent expense for operating leases is recognized on a straight-line basis, unless the right-of-use asset has been impaired, over the reasonably certain lease term based on the total lease payments and is included in operating expenses in the consolidated statements of operations and comprehensive loss. For operating leases that reflect impairment, we will recognize the amortization of the right-of-use asset on a straight-lined basis over the remaining lease term with rent expense still included in operating expenses in the consolidated statements of operations and comprehensive loss. For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of lease assets and lease liabilities at the lease commencement date. We have elected the practical expedient to not separate lease and non-lease components. Our non-lease components are primarily related to property taxes and maintenance, which vary based on future outcomes, and thus differences to original estimates are recognized in rent expense when incurred. |
Basis of Consolidation
Basis of Consolidation | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Consolidation | 4. Basis of Consolidation These interim consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries; Lexaria CanPharm ULC, PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp. and Lexaria Pharmaceutical Corp., and our 83.333% subsidiary Lexaria Nicotine LLC (16.667% Altria Ventures Inc., an indirect wholly owned subsidiary of Altria Group, Inc.). All significant intercompany balances and transactions have been eliminated. | 4. Basis of Consolidation These consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries; Lexaria CanPharm ULC, PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp. and Lexaria Pharmaceutical Corp., and our 83.333% subsidiary Lexaria Nicotine LLC (16.667% Altria Ventures Inc., an indirect wholly-owned subsidiary of Altria Group, Inc.). All significant intercompany balances and transactions have been eliminated. |
Estimates and Judgments
Estimates and Judgments | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Estimates And Judgments [Abstract] | ||
Estimates and Judgments | 5. 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. We believe that these estimates are reasonable; however, actual results could differ from these estimates. 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, 2020. | 5. 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 year. 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. We believe that these estimates are reasonable; however, actual results could differ from these estimates. Significant accounting estimates and assumptions are used for, but not limited to: a) The Valuation of Deferred Tax Assets Judgement is required in determining whether deferred tax assets are recognized on the balance sheet. The recognition of deferred tax assets requires management to assess the likelihood that the Company will generate taxable income in future periods to utilize the deferred tax assets. Due to the Company’s history of losses, deferred tax assets have not been recognized by Lexaria. b) Value of Stock Options and Warrants The Company provides compensation benefits to its employees, directors, officers, and consultants, through a stock option plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility assumptions used in the model are based on the historical volatility of the Company’s share price. The Company uses historical data to estimate the period of option exercises for use in the valuation model. The risk-free interest rate for the expected term of the option is based on the yields of government bonds. Changes in these assumptions, especially the share price volatility and the expected life determination could have a material impact on the Company’s profit and loss for the years presented. All estimates used in the model are based on historical data which may not be representative of future results. |
Recent Accounting Guidance
Recent Accounting Guidance | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Guidance | 6. Recent Accounting Guidance In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. In November 2019 FASB issued ASU No 201910 revised the effective date based on updated criteria with the effective date for fiscal years beginning after December 15, 2022. Application of the amendments is through a cumulative effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements. | 6. Recent Accounting Guidance In February 2016 FASB issued ASU No. 201602, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and the lessors. The new standard requires the lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. The classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In November 2019 FASB issued ASU No 201910 revised the effective date based on updated criteria with the effective date for fiscal years beginning after December 15, 2020. In June 2020 FASB issued ASU No 202005 further delaying the effective date for fiscal years beginning after December 15, 2021 due to the COVID-19 pandemic. The Company has adopted this standard as of August 31, 2020 (Note 17). In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. In November 2019 FASB issued ASU No 201910 revised the effective date based on updated criteria with the effective date for fiscal years beginning after December 15, 2022. Application of the amendments is through a cumulative effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements. In February 2018, the FASB issued ASU No. 201802, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted by the U.S. federal government on December 22, 2017 (the “2017 Tax Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company adopted the ASU on September 1, 2019 for a $NIL effect. In June 2018, the FASB issued ASU No. 201807, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share Based Payment Accounting. This is a simplification that involves several aspects of accounting for nonemployee share-based payments resulting from expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted the ASU on September 1, 2019 for a $NIL effect. |
Accounts and Other Receivables
Accounts and Other Receivables | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts and Other Receivables | 7. Accounts and Other Receivables November 30 August 31 2020 2020 $ $ Trade and deposits receivable 3,792 82,492 Intellectual Property Fees 325,304 38,250 Sales tax receivable 98,234 88,183 427,330 208,925 | 7. Accounts and Other Receivables August 31 August 31 2020 2019 $ $ Trade and deposits receivable 82,492 5,727 Territory license fee receivable 143,500 106,000 Sales tax receivable 87,933 161,418 313,925 273,145 |
Inventory
Inventory | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventory | 8. Inventory November 30 August 31 2020 2020 $ $ Raw materials 53,676 51,404 Work in progress 11,557 15,705 Finished goods 60,730 49,762 125,963 116,871 During the period ended November 30, 2020, the Company wrote down $1,765 (2020 - $8,240 full year) of inventory to reflect its net realisable value. | 8. Inventory August 31 2020 $ August 31 2019 $ Raw materials 51,404 45,068 Work in progress 15,705 — Finished goods 49,762 82,328 116,871 127,396 During the year ended August 31, 2020, the Company wrote down $8,240 (2019 - $7,182) of inventory to reflect its net realisable value. |
Intellectual Property
Intellectual Property | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intellectual Property | 9. Intellectual Property The following is a list of US capitalized patents held by the Company Issued Patent # Patent Issuance Date Patent Family US 9,474,725 B1 10/25/2016 Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof US 9,839,612 B2 12/12/2017 US 9,972,680 B2 05/15/2018 US 9,974,739 B2 05/22/2018 US 10,084,044 B2 09/25/2018 US 10,103,225 B2 10/16/2018 US 10,381,440 08/13/2019 US 10,374,036 08/06/2019 US 10,756,180 08/25/2020 The Company also holds non-capitalized patents outside the US. A continuity schedule for capitalized patents is presented below: November 30 August 31 2020 2020 $ $ Balance – beginning 292,000 265,127 Addition 5,775 33,645 Amortization* (1,717 ) (6,772 ) Balance – ending 296,058 292,000 *The patents are amortized over their legal life of 20 years. | 9. Intellectual Property The following is a list of US capitalized patents held by the Company Issued Patent # Patent Issuance Date Patent Family US 9,474,725 B1 10/25/2016 Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof US 9,839,612 B2 12/12/2017 US 9,972,680 B2 05/15/2018 US 9,974,739 B2 05/22/2018 US 10,084,044 B2 09/25/2018 US 10,103,225 B2 10/16/2018 US 10,381,440 08/13/2019 US 10,374,036 08/06/2019 US 10,756,180 08/25/2020 The Company also holds non-capitalized patents outside the US. A continuity schedule for patents is presented below: August 31 August 31 2020 2019 $ $ Balance - Beginning 265,127 146,538 Addition 33,645 122,982 Amortization* (6,772 ) (4,393 ) Balance - Ending 292,000 265,127 *The patents are amortized over their legal life of 20 years from the patent application’s filing date. |
Property & Equipment
Property & Equipment | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | ||
Property & Equipment | 10. Property & Equipment Cost Period Amortization Disposal Accumulated Amortization Net Balance November 30, 2020 Quarter Ended November 30, 2020 $ $ $ $ $ Leasehold improvements 259,981 (13,509 ) — (100,120 ) 159,861 Computers 63,964 (4,920 ) — (36,789 ) 27,175 Furniture fixtures equipment 34,220 (1,604 ) (3,094 ) (11,608 ) 19,518 Lab equipment 291,235 (10,967 ) — (45,434 ) 245,801 649,400 (31,001 ) (3,094 ) (193,951 ) 452,355 Cost Period Amortization Accumulated Amortization Net Balance August 31, 2020 Year Ended August 31, 2020 $ $ $ $ Leasehold improvements 259,981 (53,268 ) (86,610 ) 173,371 Computers 63,964 (19,681 ) (31,869 ) 32,095 Furniture fixtures equipment 34,220 (7,036 ) (13,097 ) 21,123 Lab equipment 291,235 (27,921 ) (34,467 ) 256,768 649,400 (107,906 ) (166,043 ) 483,357 During the three month period ended November 30, 2020, $4,790 of amortization was included in the cost of inventory. | 10. Property & Equipment Year Ended August 31, 2020 Cost $ Amortization $ Accumulated Amortization $ Net Balance August 31, 2020 $ Leasehold improvements 259,981 (53,268 ) (86,610 ) 173,371 Computers 63,964 (19,681 ) (31,869 ) 32,095 Furniture fixtures equipment 34,220 (7,036 ) (13,097 ) 21,123 Lab equipment 291,235 (27,921 ) (34,467 ) 256,768 649,400 (107,906 ) (166,043 ) 483,357 Net Balance Year Ended August 31, 2019 Cost Amortization Accumulated Amortization August 31, 2019 $ $ $ $ Leasehold improvements 259,981 (33,342 ) (33,342 ) 226,639 Computers 63,964 (12,187 ) (12,187 ) 51,777 Furniture fixtures equipment 34,220 (4,205 ) (6,062 ) 28,158 Lab equipment 291,235 (6,546 ) (6,546 ) 284,689 649,400 (56,281 ) (58,137 ) 591,263 During the period $1,928 of amortization was included in the cost of inventory. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Accounts Payable and Accrued Liabilities | 11. Accounts Payable and Accrued Liabilities November 30 August 31 2020 2020 $ $ Accounts Payable Trades payable 12,659 45,080 Accrued Liabilities Corporate tax payable 1,785 3,834 Trades payable 68,651 38,006 Balance – ending 83,095 86,920 | 11. Accounts Payable and Accrued Liabilities August 31 2020 $ August 31 2019 $ Accounts Payable Trades payable 45,080 31,463 Sales tax payable — 63,616 Accrued Liabilities Corporate tax payable 3,834 — Trades payable 38,006 41,332 Total 86,920 136,411 |
Common Shares and Warrants
Common Shares and Warrants | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Equity [Abstract] | ||
Common Shares and Warrants | 12. Common Shares and Warrants During the quarter ended November 30, 2020 the Company did not issue any shares or warrants. A continuity schedule for warrants is presented below: Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2019 94,177 41.40 Cancelled/expired (25,000 ) 44.90 Issued 402,431 12.74 Balance August 31, 2020 471,608 16.77 Cancelled/expired (32,510 ) 67.50 Balance November 30, 2020 439,098 14.68 A continuity schedule for warrants is presented below: A summary of warrants outstanding as of November 30, 2020 is presented below: # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 3,333 0.47 years 28.80 8,333 0.48 years 46.50 25,000 0.86 years 4.20 291 0.95 years 36.00 7,500 1.93 years 24.00 51,808 3.96 years 36.00 8,983 4.00 years 36.00 16,666 4.29 years 9.00 267,616 4.43 years 10.50 49,568 4.45 years 10.50 439,098 4.01 years 14.68 | 12. Common Shares and Warrants Fiscal 2020 Activity During the year ended August 31, 2020, the Company closed, pursuant to two tranches, a non-brokered private placement for an aggregate total of 1,823,745 units priced at $0.45 each. Each unit consists of one common share and one share purchase warrant. Each warrant shall entitle the holder to acquire one common share of the Company for a period of two years at a price of $0.80 per Share until the first anniversary of issuance, and thereafter at a price of $1.20 until the second anniversary of issuance. The Company paid $3,938 and issued 8,750 broker warrants. The broker warrants have a term of 24 months and are each exercisable into one common share of the Company at a price of $0.80 per share until the first anniversary of issuance, and thereafter at a price of $1.20 until the second anniversary of issuance. The fair value of these broker warrants was determined to be $1,850, which were recorded as a share issuance cost within additional paid in capital for a net effect of $Nil. The Company also issued an aggregate of 8,866,211 units at $0.23, issued in two tranches for gross proceeds of $2,039,229. Each unit consists of one common share and one full warrant. The warrants are exercisable on issuance at an exercise price of $0.35 with 8,028,254 expiring May 6, 2025 and 837,957 on May 11, 2025. Pursuant to the agent agreement $151,623 and 649,123 broker warrants with an exercise price of $0.35 expiring May 6, 2025, were paid. The broker warrants were valued at $128,329 and were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. A total of $65,600 in legal fees were also paid. The company granted a total of 500,000 warrants pursuant to an agreement with a consultant valued at $98,081 that were recorded as an expense within consulting. The Company recognized $168,833 in consulting expense for warrants granted to consultants as per vesting requirements. A summary of share issuance relating to exercises and private placements is presented below: Type of Issuance Number of Shares Total Value $ Option exercise 220,000 30,030 Private placement (1) 10,689,956 2,859,914 Per agreements (2) 347,222 100,000 11,257,178 2,989,944 (1) (2) Fiscal 2019 Activity During the year ended August 31, 2019 the Company closed a non-brokered private placement for 947,150 Units priced at $1.60 each. Each unit consists of one common share and one share purchase warrant. Each warrant shall entitle the holder to acquire one common share at a price of $2.25 per share for a period of 24 months. The Company also issued 28,175 broker warrants. The broker warrants have a term of 24 months and are each exercisable into one common share of the Company at a price of $2.25. The fair value of these broker warrants was determined to be $16,095, which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. The Company granted an additional 107,737 broker warrants with a value of $6,484 that were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. The Company granted a total of 100,000 warrants pursuant to an agreement with a vendor valued at $52,817 that were recorded as an expense within investor relation expense. During the year ended August 31, 2019 the Company recognized $51,448 in consulting expense for warrants previously granted to a consultant upon vesting. A summary of share issuance is presented relating to option and warrant exercises, agreement requirements and debt settlement is presented below: Type of Issuance Number of Shares Total Value $ Warrant exercise (1) 1,626,513 796,122 Option exercise 430,000 66,250 Private placement 947,150 1,515,440 Per agreements (2) 250,000 234,500 3,253,663 2,612,312 (1) Includes 384,212 broker warrants exercised for gross proceeds of $191,742 (2) The Company awarded the restricted common shares as required by consulting contracts. A continuity schedule for warrants is presented below: Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2018 3,286,274 0.72 Cancelled/Expired (17,498 ) 0.59 Exercised (1,626,513 ) 0.49 Issued 1,183,062 1.99 Balance August 31, 2019 2,825,325 1.38 Cancelled/Expired (750,000 ) 1.50 Issued 12,072,829 0.42 Balance August 31, 2020 14,148,154 0.56 The fair value of share purchase warrants granted as broker warrants, compensation units, and compensatory warrants, was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: August 31 2020 August 31 2019 Expected volatility 91%-94 % 1% - 117 % Risk-free interest rate 0.36%-2.87 % 2.31% - 2.87 % Expected life 2 - 5 years 1 day - 2 years Dividend yield 0 % 0.00 % Estimated fair value per warrant 0.28 - 0.54 $ Nil A summary of warrants outstanding as of 31, 2020 is presented below: # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 975,325 0.17 years 2.25 100,000 0.72 years 0.96 250,000 0.73 years 1.55 750,000 1.11 years 0.14 225,000 2.18 years 0.80 1,562,995 1.20 years 0.80 269,500 1.24 years 0.80 500,000 4.54 years 0.30 8,028,254 4.68 years 0.35 1,487,080 4.70 years 0.35 14,148,154 3.59 years 0.56 |
Stock Options
Stock Options | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock Options | 13. Stock Options The Company has established the 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 62,917 stock options to directors, officers, employees, and consultants; and the 2019 Equity Incentive Plan whereby the board of directors may, from time to time, grant up to 261,290 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised no later than 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 did not grant options during the quarter ended November 30, 2020. A continuity schedule for stock options is presented below: Options Weighted Average Exercise Price $ Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $ Balance August 31, 2019 166,767 21.30 Cancelled/expired (149,437 ) 29.51 Exercised (7,333 ) 4.09 Granted 161,600 11.66 Balance August 31, 2020 171,596 11.17 Cancelled (1,333 ) 12.90 Balance November 30, 2020 (Outstanding) 170,263 11.16 4.05 30,000 Balance November 30, 2020 (Exercisable) 146,231 10.51 4.05 30,000 | 13. Stock Options The Company has established its 2014 Stock Option Plan whereby the Board may, from time to time, grant up to 2,107,500 stock options to directors, officers, employees, and consultants, and the 2019 Equity Incentive Plan whereby the Board may, from time to time, grant up to 7,838,713 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised no later than five years from the date of grant or such lesser period as determined by the Board. 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. During the year ending August 31, 2020 the formerly established 2007 Equity Incentive Plan and the 2010 Stock Option Plan were cancelled. Outstanding options were cancelled and reissued under the 2019 Equity Incentive Plan. Fiscal 2020 Activity The Company granted stock options in the year ending August 31, 2020: Quantity Exercise Price $ Life (Years) 1,000,000 0.55 5 60,000 0.43 5 550,000 0.47 5 2,538,000 0.32 5 700,000 0. 0.34 5 4,848,000 (1) 0.39 5 (1) Fiscal 2019 Activity The Company granted stock options in the year ending August 31, 2019: Quantity Exercise Price $ Life (Years) 390,000 (1) 1.27 5 240,000 (1) 1.06 5 30,000 (1) 1.16 5 350,000 0.99 5 440,000 (1) 0.99 5 48,000 (1) 0.96 5 100,000 0.81 5 450,000 (1) 0.81 5 2,048,000 1.00 (1) A continuity schedule for stock options is presented below: Options Weighted Average Exercise Price $ Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $ Balance August 31, 2018 4,800,000 0.71 Expired/Cancelled (1,415,000 ) 0.66 Exercised (430,000 ) 0.15 Granted 2,048,000 1.00 Balance August 31, 2019 5,003,000 0.71 Expired/Cancelled (4,483,000 ) 0.98 Exercised (220,000 ) 0.14 Granted 4,848,000 0.39 Balance August 31, 2020 (Outstanding) 5,148,000 0.37 4.30 140,634 Balance August 31, 2020 (Exercisable) 4,262,000 0.34 4.29 136,853 The fair value of options granted was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: August 31 2020 August 31 2019 Expected volatility 95%- 96 % 100%- 144 % Risk-free interest rate 0.35%- 1.66 % 1.42%- 2.89 % Expected life 5 years 5 years Dividend yield 0 % 0 % Estimated fair value per option $ 0.31-$0.54 $ 0.60 - $1.07 |
Revenues
Revenues | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Revenues [Abstract] | ||
Revenues | 14. Revenues November 30 2020 $ November 30 2019 $ Product sales 164,990 10,015 Licensing revenue 130,584 — Freight revenue 82 317 Income from ongoing operations 295,656 10,332 Income from discontinued operations 3,000 51,750 298,656 62,082 During the three months ended November 30, 2020, the Company recognized $3,138 of Intellectual Property Licensing fees and $127,446 of usage fees from ongoing operations and $3,000 of income from discontinued operations (November 2019 - $33,750 licensing and $18,000 usage fees all relating to discontinued operations). Revenues are significantly concentrated on one customer. There was an increase in our intermediate product sales and licensing revenues in the current year compared to the prior year, which began in the second quarter of fiscal 2020, with increasing volume to customers. Intermediate products are typically a DehydraTECH enabled powder that companies can purchase to include in their products. Intermediate product sales and licensing revenue constituted the majority of our revenue. The licensing fees consist of intellectual property licensing fees for transfer of the Technology with the signing of definitive agreements for the DehydraTECH technology and usage fees. | 14. Revenues August 31 2020 $ August 31 2019 $ Product sales 150,993 24,282 Licensing revenue (Note 11) 232,909 198,000 Freight revenue 641 328 384,543 222,610 The Company recognized $232,909 of licensing revenue (2019 $198,000) and $150,993 of product revenues (2019 $24,282). Licensing revenue was significantly concentrated on one licensee and $121,906 of product revenues related to sales of our intermediate product for use by five customers in their products. The licensing fees consist of IP licensing fees for transfer of the DehydraTECH technology with the signing of definitive agreements and usage fees. The licensing fees include payments due upon transfer of the technology and installment payments that are receivable within 12 months (Note 7). As of August 31, 2020, we have $44,255 in deferred revenue from customers for production of intermediate products that are expected to be produced during our next fiscal quarter. |
Related Party Transactions
Related Party Transactions | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 15. Related Party Transactions November 30 November 30 2020 2019 Contract Non Cash Total Contract Non Cash Total Management, consulting and director services $ $ $ $ $ $ CAB Financial Services (1) 67,537 — 67,537 65,757 — 65,757 M&E Services Ltd. (1) 31,822 — 31,822 29,382 — 29,382 Docherty Management Limited (1) 52,579 — 52,579 56,730 — 56,730 Directors 17,076 — 17,076 16,717 — 16,717 169,014 — 169,014 168,586 — 168,586 (1) All related party transactions pertain to management and director agreements entered into in the normal course of business (Note 17). Due to related parties Related party transactions are recorded at the exchange amount established and agreed to between the related parties. As at November 30, 2020, $87,185 (August 31, 2020 - $58,704) was payable to related parties and included in due to related parties. | 15. Related Party Transactions Management, consulting and accounting services Cash $ % Non-Cash (2) $ % Aug 31 2020 Total $ Cash $ % Non-Cash (2) $ % Aug 31 2019 Total $ C.A.B Financial Services (1) 300,802 66 153,065 34 453,867 223,280 100 — — 223,280 M&E Services Ltd. (1) 121,664 46 143,886 54 265,550 112,377 100 — — 112,377 Docherty Management Limited (1) 242,521 47 275,614 53 518,135 195,740 100 — — 195,740 Company controlled by a director — — — — — 14,932 12 112,718 88 127,650 Directors 67,146 43 88,544 57 155,690 16,138 9 172,330 91 188,468 732,133 661,109 1,393,242 562,467 285,048 847,515 (1) (2) Due to related parties: As at August 31, 2020, $58,704 (August 31, 2019 - $48,096) was payable to related parties included in due to related parties. The related party transactions are recorded at the exchange amount established and agreed to between the related parties. |
Segment Information
Segment Information | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Segment Reporting [Abstract] | ||
Segment Information | 16. Segment Information The Company's operations involve the development and usage, including licensing, of its proprietary DehydraTECH Technology. Lexaria is centrally managed and its chief operating decision makers, being the president and the CEO, use the consolidated and other financial information supplemented by revenue information by category of alternative health consumer products and technology licensing to make operational decisions and to assess the performance of the Company. The Company has identified two reportable segments: Intellectual Property and Products. Licensing revenues are significantly concentrated on one licensee. IP Licensing $ Products $ Corporate $ Consolidated Total $ External revenue 130,584 165,072 — 295,656 CoGS — (64,478 ) — (64,478 ) Operating expenses (127,868 ) (92,038 ) (724,393 ) (944,299 ) Discontinued operations 3,000 — — 3,000 Segment income(loss) 5,716 8,556 (724,393 ) (710,121 ) Total assets 817,830 125,963 1,230,527 2,174,320 Capital Asset by Region Cost US Disposal US Net Balance US Cost Canada Net Balance Canada Total Net Balance Three Months Ended November 30, 2020 $ $ $ $ $ $ Leasehold Improvements — — — 259,981 159,861 159,861 Computers — — — 63,964 27,175 27,175 Furniture Fixtures Equipment 3,094 (3,094 ) — 31,126 19,518 19,518 Lab Equipment 98,050 — 79,128 193,185 166,673 245,801 101,144 (3,094 ) 79,128 548,256 373,227 452,355 Capital Asset by Region Cost US Net Balance US Cost Canada Net Balance Canada Total Net Balance Year Ended August 31, 2020 $ $ $ $ $ Leasehold Improvements — — 259,981 173,371 173,371 Computers — — 63,964 32,095 32,095 Furniture Fixtures Equipment 3,094 — 31,126 21,123 21,123 Lab Equipment 98,050 85,263 193,185 171,505 256,768 101,144 85,263 548,256 398,094 483,357 | 16. Segment Information The Company’s operations involve the development and usage, including licensing, of DehydraTECH. Lexaria is centrally managed and its chief operating decision makers, being the President and the CEO, use the consolidated and other financial information supplemented by revenue information by category of alternative health consumer products and technology licensing to make operational decisions and to assess the performance of the Company. The Company has identified two reportable segments: Intellectual Property Licensing and Consumer Products. Licensing revenues are significantly concentrated on three licensees. IP Licensing Consumer Products Corporate Consolidated Total External revenue 232,909 151,634 — 384,543 Cost of goods sold — (99,378 ) — (99,378 ) Operating expenses (1,601,595 ) (1,043,956 ) (1,724,227 ) (4,369,778 ) Segment loss (1,368,686 ) (991,700 ) (1,724,227 ) (4,084,613 ) Total assets 692,268 116,871 2,019,099 2,828,238 Capital Asset by Region Cost Net Balance Cost Net Balance Canada Canada Total Net Balance Balance Year Ended August 31, 2020 $ $ $ $ $ Leasehold Improvements — — 259,981 173,371 173,371 Computers — — 63,964 32,095 32,095 Furniture Fixtures Equipment 3,094 — 31,126 21,123 21,123 Lab Equipment 98,050 85,264 193,185 171,505 256,769 101,144 85,264 548,256 398,094 483,358 Capital Asset by Region Cost Net Balance Cost Net Balance Canada Canada Total Net Balance Balance Year Ended August 31, 2019 $ $ $ $ $ Leasehold Improvements — — 259,981 226,638 226,638 Computers — — 63,964 51,776 51,776 Furniture Fixtures Equipment 3,094 619 31,126 27,540 28,159 Lab Equipment 98,050 85,420 193,185 199,269 284,689 101,144 86,039 548,256 505,223 591,262 |
Commitments, Significant Contra
Commitments, Significant Contracts and Contingencies | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments, Significant Contracts and Contingencies | 17. Commitments, Significant Contracts and Contingencies Management and Service Agreements: As at November 30, 2020, the Company is party to the following contractual commitments: Party Monthly Commitment Expiry Date C.A.B Financial Services CAD $29,706 January 1, 2022 Docherty Management Ltd. CAD $25,609 January 1, 2022 M&E Services Ltd. CAD $13,997 June 1, 2021 Corporate Development CAD $1,500 Month to Month Office Management CAD $10,800 August 15, 2022 Research & Development CAD $3,854 Month to Month Office operating lease (1) CAD $4,823 November 15, 2023 Right of Use Assets - Operating Lease (1) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. Right of use assets - operating leases: $ November 30, 2020 126,920 Amortization (8,727 ) Total right of use assets 118,193 Liabilities: November 30, 2020 125,431 Lease payments (10,987 ) Interest accretion 2,220 Total lease liabilities 116,664 Operating lease cost as at November 30, 2020 $ 118,193 Operating cash flows for lease 10,948 Remaining lease term 2.8 Years Discount rate 7.25 % 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, 2020: 2021 32,746 2022 44,815 2023 44,815 2024 7,469 Thereafter — Total lease payments 129,845 Less: imputed interest (13,181 ) Present value of operating lease liabilities 116,664 Less: current obligations under leases (36,695 ) Total 79,969 | 17. Commitments, Significant Contracts and Contingencies Management and Service Agreements As at August 31, 2020, the Company is party to the following contractual commitments: Party Monthly Commitment Expiry Date C.A.B Financial Services CAD $29,706 January 1, 2022 Docherty Management Ltd. CAD $25,609 January 1, 2022 M&E Services Ltd. CAD $13,997 June 1, 2021 Corporate Development CAD $1,500 Month to Month Office Management CAD $10,800 August 15, 2022 Research & Development CAD $3,854 Month to Month Office operating lease (1) CAD $4,823 November 15, 2023 Right of Use Assets - Operating Lease (1) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. Right of use assets - operating leases: $ September 1, 2019 160,289 Amortization (33,369 ) Total lease assets 126,920 Liabilities: September 1, 2019 158,773 Lease payments (43,764 ) Interest accretion 10,423 Total lease liabilities 125,431 Operating lease cost as at August 31, 2020 $ 126,920 Operating cash flows for lease $ 43,764 Remaining lease term 3.1 Years Discount rate 7.25 % Pursuant to the terms of the Company’s lease agreements in effect at August 31, 2020, the following table summarizes the Company’s maturities of operating lease liabilities as of August 31, 2020: 2021 43,950 2022 44,599 2023 44,815 2024 7,469 Thereafter — Total lease payments 140,832 Less: imputed interest (15,401 ) Present value of operating lease liabilities 125,431 Less: current obligations under leases (36,038 ) Total 89,393 |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Prepaid Expense, Current [Abstract] | ||
Prepaid Expenses | 18. Prepaid Expenses Prepaid expenses consist of the following at November 30, 2020 and August 31, 2020: November 30 August 31 2020 2020 $ $ Advertising & conferences 21,539 21,878 Legal fees 130 47,498 Licence, filing fees, dues 30,138 8,541 Office & insurance 58,823 78,792 Research & development 25,386 25,386 136,016 182,095 | 18. Prepaid Expenses Prepaid expenses consist of the following at August 31, 2020 and August 31, 2019: August 31 2020 $ August 31 2019 $ Advertising & conferences 21,878 39,143 Legal fees 47,498 — Licence, filing fees, dues 8,541 — Office & insurance 78,792 29,784 Research & development 25,386 — 182,095 68,927 |
Loan Payable
Loan Payable | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure Abstract | |
Loan Payable | 19. Loan Payable We have applied for, and received, governmental assistance related to the COVID-19 pandemic. As of November 30, 2020 there is one Canadian governmental programs that currently provides: A Canadian dollar loan of C$40,000 under the Canada Emergency Business Account (CEBA) program. The loan is a 0% interest bearing loan with no principle payments and if repaid before December 31, 2022 will result in a loan forgiveness of 25% (up to C$10,000). The loan can be converted into a 3-year term loan at 5% annual interest paid monthly effective January 1, 2023. |
Marketable Securities
Marketable Securities | 2 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Aug. 31, 2020 | |
Marketable Securities [Abstract] | ||
Marketable Securities | 20. Marketable Securities The components of Marketable Securities were as follows: Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2020 Common stock 56,250 9,997 (38,584 ) Total 56,250 9,997 (46,926 ) 19,321 November 30, 2020 Common stock 56,250 24,410 — Total 56,250 34,407 (46,926 ) 43,731 Unrealized losses from common stock are due to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence. The COVID-19 pandemic has caused significant market turbulence and it is possible that our evaluation will change dependant upon new information as it arises. | 19. Marketable Securities The components of Marketable Securities were as follows: Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2019 Common Stock 81,250 9,335 (12,124 ) Total 81,250 9,335 (26,973 ) 63,612 August Common Stock 56,250 9,997 (38,584 ) Total 56,250 9,997 (46,926 ) 19,321 We realized an $18,198 loss and received $6,802 in net proceeds on the sale of marketable securities. Unrealized losses from common stock are due to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Nov. 30, 2020 | |
Discontinued Operations And Disposal Groups Abstract | |
Discontinued Operations | 21. Discontinued Operations On November 19, 2020 the Company entered a definitive asset sale agreement through its wholly owned subsidiary Lexaria Canpharm ULC to sell certain non-core business assets for gross proceeds of C$3,850,000. The financial results of the group of assets sold are presented as income (loss) from discontinued operations, net of income taxes in our consolidated statement of income. The following table presents financial results of the assets: THREE MONTHS ENDED November 30 November 30 2020 2019 Revenue $ 3,000 $ 51,750 Operating Expenses — 406 Net Income $ 3,000 $ 51,344 The following table presents cash flows of discontinued operations: THREE MONTHS ENDED November 30 November 30 2020 2019 Cash flows used in discontinued operating activities Net income $ 3,000 $ 51,344 Change in working capital 55,667 (97,742 ) Net cash used in discontinued operating activities $ 58,667 $ (46,398 ) Net cash provided by (used in) discontinued operations 58,667 (46,398 ) The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of the assets: November 30 August 31 2020 2020 Current Assets Accounts receivable $ 49,333 $ 105,250 Total assets classified as discontinued operations in the consolidated balance sheet 49,333 105,250 Current Liabilities Accounts payable $ — $ 250 Total liabilities classified as discontinued operations in the consolidated balance sheet — 250 |
Income Tax
Income Tax | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 20. Income Tax The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company’s effective tax rates as at August 31, 2020 and 2019: August 31 2020 $ August 31 2019 $ Loss before taxes (3,987,018 ) (4,158,413 ) Expected income tax recovery (856,424 ) (883,841 ) Non-deductible items 200,573 8,544 Change in estimates 92,083 948 Effect of changes in foreign and long-term tax rates — — Change in valuation allowance 566,087 892,013 Total income taxes 2,319 17,664 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets at August 31, 2020 and 2019 are comprised of the following: August 31 2020 $ August 31 2019 $ Non-capital losses 5,588,526 5,022,440 Marketable securities 2,300 2,300 Total unrecognized deferred tax assets 5,590,826 5,024,740 The Company has net operating loss carry-forwards of approximately $26,891,000 which may be carried forward to apply against future year income tax for U.S. tax purposes. Year Amount Canada 2025 76,000 — 2026 508,000 — 2027 1,056,000 — 2028 720,000 — 2029 753,000 — 2030 552,000 — 2031 538,000 — 2032 252,000 — 2033 344,000 — 2034 3,257,000 — 2035 1,934,000 — 2036 1,150,000 — 2037 1,857,000 — 2038 — — 2039 — 242,000 2040 — 309,000 Indefinite 13,343,000 — 26,340,000 551,000 Total 26,891,000 |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 22. Subsequent Events 1. On December 9, 2020, the Company announced that it closed the sale of its non-pharmaceutical THC-related assets held within Lexaria Canpharm ULC to Hill Street Beverage Company Inc. Lexaria received C$350,000 in cash, 6,031,363 restricted common shares of Hill Street at a deemed price of C$0.0829 per share, a C$2,000,000 promissory note bearing interest at the rate of 10% per annum, and a limited license to use the DehydraTECH technology outside of Canada and the US for use with certain products that contain 0.3% or greater THC and which are not classified by a national regulator as drug, pharmaceutical or biopharmaceutical product. Pursuant to the terms of the transaction, Lexaria will receive another C$1,000,000 worth of common shares of Hill Street over a period sixteen months in C$500,000 issuances eight months and sixteen months after the closing date. 2. On January 11, 2021, at 4:30 p.m. Eastern time, the Company performed a reverse stock split with no fractional shares issued. The issued and outstanding balance of shares at that time changed from to as per shareholder approval at the annual general meeting of the company held June 23, 2020. Concurrently, the Company began listing its common shares on the NASDAQ exchange under the symbol LEXX. 3. On January 14, 2021, the Company closed an underwritten public offering for $11,039,994, issuing 2,102,856 units consisting of one common share and one warrant for $5.25. Total fees of $1,410,506 were estimated at time of closing. The warrants issued will trade under the symbol LEXXW. | 21. Subsequent Events September 22, 2020, Lexaria announced that U.S. Patent No. 10,756,180 was granted that provides patent claims that protect the use of Lexaria's DehydraTECH technology together with cannabinoids, nicotine, nonsteroidal anti-inflammatory drugs, or vitamins in mix and serve beverage formats. The patent is entitled Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof . |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Principles | a) Accounting Principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. All amounts, unless otherwise stated, are in United States dollars. |
Revenue Recognition | b) Revenue Recognition Product Revenue Revenue from the sale of products is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured, which typically occurs upon shipment. The Company reports its sales net of the amount of actual sales returns. Sales tax collected from customers is excluded from net sales. Licensing Revenue from Intellectual Property We recognize revenue for license fees at a point in time following the transfer of our intellectual property, namely our patented lipid nutrient infusion technology DehydraTECH for infusing Active Pharmaceutical Ingredients (“API”), to the licensee, which typically occurs on delivery of documentation. Usage Fees from Intellectual Property We recognize revenue for usage fees when usage of our DehydraTECH intellectual property occurs by licensees infusing an API into one or more of their product lines for sale. |
Inventory and Cost of Sales | c) Inventory and Cost of Sales The Company’s inventory consists of finished goods, work in progress, and raw materials. In all classes, inventory is valued at the lower of cost or market. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing), utilities and overhead expenses. |
Cash and Cash Equivalents | d) Cash and Cash Equivalents Cash equivalents comprise certain highly liquid instruments with a maturity of three months or less when purchased. As of August 31, 2020, and August 31, 2019, the Company held cash only. |
Equipment | e) Equipment Equipment is stated at cost less accumulated depreciation and impairment, and depreciated using the straight-line method over their useful lives or by units of production. |
Patents | f) Patents Capitalized patent costs represent legal costs incurred to establish patents. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and are expensed as incurred. Capitalized patent costs are amortized on a straight-line basis over the remaining life of the patent. The Company was granted its first patent on October 25, 2016, with a legal life of 20 years from the patent application’s filing date |
Stock-Based Compensation | g) Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expenses in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the Board of Directors for their services on the Board of Directors, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. Stock-based payments issued to non-employees are recorded at their fair values and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. For equity instruments granted the Company recognizes stock-based compensation expense on vesting. |
Loss Per Share | h) Loss Per Share The Company applies the guidance in ASC 260 Earnings Per Share. Loss per share is computed using the weighted average number of shares outstanding during the year. Diluted loss per share is equivalent to basic loss per share because the potential exercise of the equity-based financial instruments was anti-dilutive. |
Foreign Currency Translation | i) Foreign Currency Translation The Company’s operations are located in the United States of America and Canada, and it has offices in Canada. The Company maintains its accounting records in U.S. Dollars, as follows: At the transaction date, each asset, liability, revenue and expense that was acquired or incurred in a foreign currency is translated into U.S. dollars by using the exchange rate in effect at that date. At the year end, monetary assets and liabilities are translated at the exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in profit or loss. |
Financial Instruments | j) Financial Instruments ASC 820 Fair Value Measurements and Disclosures, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and 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, accounts payable and accrued liabilities, and due to related parties. The carrying amounts of cash, accounts and other receivable, accounts payable and accrued liabilities, and due to related parties approximate their fair values due to their short maturities or quoted market prices. The Company is located in Canada, which results in exposure to market risks from changes in foreign currency rates. The foreign currency exchange risk is the financial risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk as the Company does not hold a significant position in foreign currencies, such as the Canadian dollar, and the impact of a change in a few basis points for USD/CAD is not expected to be material. |
Income Taxes | k) Income Taxes The Company applies the guidance in ASC 740, Income Taxes, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. |
Impairment of Long-Lived Assets | l) Impairment of Long-Lived Assets Long-lived assets, including equipment, and intangible assets, such as the Company’s patents, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to the profit or loss. Intangible assets with indefinite lives are tested for impairment annually and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. |
Comprehensive Income | m) Comprehensive Income The Company applies ASC 220, Comprehensive Income, which establishes standards for reporting and presentation of comprehensive income, its components and accumulated balances. The Company discloses this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity changes except those transactions resulting from investments by owners and distributions to owners. |
Credit Risk and Receivable Concentration | n) Credit Risk and Receivable Concentration The Company places its cash with a high credit quality financial institution. As of August 31, 2020, the Company had approximately $1,293,749 in the bank (August 31, 2019: $1,285,147). As at August 31, 2020 we had $143,500 (2019 – $106,000) in IP Territory license fees receivable (Note 7) consisting of amounts due from three licensees (2019 – three). These receivable amounts are based on contractual terms for payments that are payable within twelve months of signing the definitive agreements or routine IP usage fees. To date these licensees have performed all of their required obligations. The Company incurred $50,000 in bad debt in fiscal 2020 (2019 – $75,000). As at August 31, 2020, the Company had $87,933 (2019 - $161,418) in sales tax receivable (Note 7). The Company considers its credit risk to be low for such receivables. |
Commitments and Contingencies | o) Commitments and Contingencies In accordance with ASC 450-20, Accounting for Contingencies, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Historically, the Company has not experienced any material claims. |
Research and Development | p) Research and Development Research and development costs are expensed as incurred. |
Leases | q) Leases On September 1, 2019, we adopted ASC Topic 842, Leases (“ASC 842”) using the optional transition method and applied the standard only to leases that existed at that date. Under the optional transition method, we do not need to restate the comparative periods in transition and will continue to present financial information and disclosures for periods before September 1, 2019, in accordance with ASC Topic 840. We have elected the package of practical expedients allowed under ASC Topic 842, which permits us to account for our existing operating leases as operating leases under the new guidance, without reassessing our prior conclusions about lease identification, lease classification and initial direct cost. As a result of the adoption of the new lease accounting guidance, we recognized on September 1, 2019, operating lease right-of-use assets of $160,289 and operating lease liabilities of $158,773. 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. The lease term includes any renewal options and termination options that we are reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, we use our incremental borrowing rate. The incremental borrowing rate is determined by using the rate of interest that we would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment. Rent expense for operating leases is recognized on a straight-line basis, unless the right-of-use asset has been impaired, over the reasonably certain lease term based on the total lease payments and is included in operating expenses in the consolidated statements of operations and comprehensive loss. For operating leases that reflect impairment, we will recognize the amortization of the right-of-use asset on a straight-lined basis over the remaining lease term with rent expense still included in operating expenses in the consolidated statements of operations and comprehensive loss. For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of lease assets and lease liabilities at the lease commencement date. We have elected the practical expedient to not separate lease and non-lease components. Our non-lease components are primarily related to property taxes and maintenance, which vary based on future outcomes, and thus differences to original estimates are recognized in rent expense when incurred. |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Schedule of accounts and other receivables | November 30 August 31 2020 2020 $ $ Trade and deposits receivable 3,792 82,492 Intellectual Property Fees 325,304 38,250 Sales tax receivable 98,234 88,183 427,330 208,925 | August 31 August 31 2020 2019 $ $ Trade and deposits receivable 82,492 5,727 Territory license fee receivable 143,500 106,000 Sales tax receivable 87,933 161,418 313,925 273,145 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Schedule of Inventory | November 30 August 31 2020 2020 $ $ Raw materials 53,676 51,404 Work in progress 11,557 15,705 Finished goods 60,730 49,762 125,963 116,871 | August 31 2020 $ August 31 2019 $ Raw materials 51,404 45,068 Work in progress 15,705 — Finished goods 49,762 82,328 116,871 127,396 |
Intellectual Property (Tables)
Intellectual Property (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of patents | November 30 August 31 2020 2020 $ $ Balance – beginning 292,000 265,127 Addition 5,775 33,645 Amortization* (1,717 ) (6,772 ) Balance – ending 296,058 292,000 *The patents are amortized over their legal life of 20 years. | August 31 August 31 2020 2019 $ $ Balance - Beginning 265,127 146,538 Addition 33,645 122,982 Amortization* (6,772 ) (4,393 ) Balance - Ending 292,000 265,127 *The patents are amortized over their legal life of 20 years from the patent application’s filing date. |
Property & Equipment (Tables)
Property & Equipment (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | ||
Schedule of property & equipment | Cost Period Amortization Disposal Accumulated Amortization Net Balance November 30, 2020 Quarter Ended November 30, 2020 $ $ $ $ $ Leasehold improvements 259,981 (13,509 ) — (100,120 ) 159,861 Computers 63,964 (4,920 ) — (36,789 ) 27,175 Furniture fixtures equipment 34,220 (1,604 ) (3,094 ) (11,608 ) 19,518 Lab equipment 291,235 (10,967 ) — (45,434 ) 245,801 649,400 (31,001 ) (3,094 ) (193,951 ) 452,355 Cost Period Amortization Accumulated Amortization Net Balance August 31, 2020 Year Ended August 31, 2020 $ $ $ $ Leasehold improvements 259,981 (53,268 ) (86,610 ) 173,371 Computers 63,964 (19,681 ) (31,869 ) 32,095 Furniture fixtures equipment 34,220 (7,036 ) (13,097 ) 21,123 Lab equipment 291,235 (27,921 ) (34,467 ) 256,768 649,400 (107,906 ) (166,043 ) 483,357 | Year Ended August 31, 2020 Cost $ Amortization $ Accumulated Amortization $ Net Balance August 31, 2020 $ Leasehold improvements 259,981 (53,268 ) (86,610 ) 173,371 Computers 63,964 (19,681 ) (31,869 ) 32,095 Furniture fixtures equipment 34,220 (7,036 ) (13,097 ) 21,123 Lab equipment 291,235 (27,921 ) (34,467 ) 256,768 649,400 (107,906 ) (166,043 ) 483,357 Net Balance Year Ended August 31, 2019 Cost Amortization Accumulated Amortization August 31, 2019 $ $ $ $ Leasehold improvements 259,981 (33,342 ) (33,342 ) 226,639 Computers 63,964 (12,187 ) (12,187 ) 51,777 Furniture fixtures equipment 34,220 (4,205 ) (6,062 ) 28,158 Lab equipment 291,235 (6,546 ) (6,546 ) 284,689 649,400 (56,281 ) (58,137 ) 591,263 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Schedule of accounts payable and accrued liabilities | November 30 August 31 2020 2020 $ $ Accounts Payable Trades payable 12,659 45,080 Accrued Liabilities Corporate tax payable 1,785 3,834 Trades payable 68,651 38,006 Balance – ending 83,095 86,920 | August 31 2020 $ August 31 2019 $ Accounts Payable Trades payable 45,080 31,463 Sales tax payable — 63,616 Accrued Liabilities Corporate tax payable 3,834 — Trades payable 38,006 41,332 Total 86,920 136,411 |
Common Shares and Warrants (Tab
Common Shares and Warrants (Tables) | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Nov. 30, 2020 | Aug. 31, 2020 | |
Equity [Abstract] | |||
Schedule of option and warrant exercises | Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2019 94,177 41.40 Cancelled/expired (25,000 ) 44.90 Issued 402,431 12.74 Balance August 31, 2020 471,608 16.77 Cancelled/expired (32,510 ) 67.50 Balance November 30, 2020 439,098 14.68 | Type of Issuance Number of Shares Total Value $ Option exercise 220,000 30,030 Private placement (1) 10,689,956 2,859,914 Per agreements (2) 347,222 100,000 11,257,178 2,989,944 (1) (2) Type of Issuance Number of Shares Total Value $ Warrant exercise (1) 1,626,513 796,122 Option exercise 430,000 66,250 Private placement 947,150 1,515,440 Per agreements (2) 250,000 234,500 3,253,663 2,612,312 (1) Includes 384,212 broker warrants exercised for gross proceeds of $191,742 (2) The Company awarded the restricted common shares as required by consulting contracts. | |
Schedule of warrant | Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2018 3,286,274 0.72 Cancelled/Expired (17,498 ) 0.59 Exercised (1,626,513 ) 0.49 Issued 1,183,062 1.99 Balance August 31, 2019 2,825,325 1.38 Cancelled/Expired (750,000 ) 1.50 Issued 12,072,829 0.42 Balance August 31, 2020 14,148,154 0.56 | ||
Schedule of warrants granted as compensation warrants by using the Black-Scholes option pricing model | August 31 2020 August 31 2019 Expected volatility 91%-94 % 1% 117 % Risk-free interest rate 0.36%-2.87 % 2.31% 2.87 % Expected life 2 5 years 1 day 2 years Dividend yield 0 % 0.00 % Estimated fair value per warrant 0.28 0.54 $Nil $0.57 | ||
Schedule of warrants outstanding | # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 3,333 0.47 years 28.80 8,333 0.48 years 46.50 25,000 0.86 years 4.20 291 0.95 years 36.00 7,500 1.93 years 24.00 51,808 3.96 years 36.00 8,983 4.00 years 36.00 16,666 4.29 years 9.00 267,616 4.43 years 10.50 49,568 4.45 years 10.50 439,098 4.01 years 14.68 | # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 975,325 0.17 years 2.25 100,000 0.72 years 0.96 250,000 0.73 years 1.55 750,000 1.11 years 0.14 225,000 2.18 years 0.80 1,562,995 1.20 years 0.80 269,500 1.24 years 0.80 500,000 4.54 years 0.30 8,028,254 4.68 years 0.35 1,487,080 4.70 years 0.35 14,148,154 3.59 years 0.56 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Schedule of exercise price | Fiscal 2020 Activity The Company granted stock options in the year ending August 31, 2020: Quantity Exercise Price $ Life (Years) 1,000,000 0.55 5 60,000 0.43 5 550,000 0.47 5 2,538,000 0.32 5 700,000 0. 0.34 5 4,848,000 (1) 0.39 5 (1) Fiscal 2019 Activity The Company granted stock options in the year ending August 31, 2019: Quantity Exercise Price $ Life (Years) 390,000 (1) 1.27 5 240,000 (1) 1.06 5 30,000 (1) 1.16 5 350,000 0.99 5 440,000 (1) 0.99 5 48,000 (1) 0.96 5 100,000 0.81 5 450,000 (1) 0.81 5 2,048,000 1.00 (1) | |
Schedule of stock options | Options Weighted Average Exercise Price $ Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $ Balance August 31, 2019 166,767 21.30 Cancelled/expired (149,437 ) 29.51 Exercised (7,333 ) 4.09 Granted 161,600 11.66 Balance August 31, 2020 171,596 11.17 Cancelled (1,333 ) 12.90 Balance November 30, 2020 (Outstanding) 170,263 11.16 4.05 30,000 Balance November 30, 2020 (Exercisable) 146,231 10.51 4.05 30,000 | Options Weighted Average Exercise Price $ Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $ Balance August 31, 2018 4,800,000 0.71 Expired/Cancelled (1,415,000 ) 0.66 Exercised (430,000 ) 0.15 Granted 2,048,000 1.00 Balance August 31, 2019 5,003,000 0.71 Expired/Cancelled (4,483,000 ) 0.98 Exercised (220,000 ) 0.14 Granted 4,848,000 0.39 Balance August 31, 2020 (Outstanding) 5,148,000 0.37 4.30 140,634 Balance August 31, 2020 (Exercisable) 4,262,000 0.34 4.29 136,853 |
Schedule of fair value of options granted | August 31 2020 August 31 2019 Expected volatility 95%- 96 % 100%- 144 % Risk-free interest rate 0.35%- 1.66 % 1.42%- 2.89 % Expected life 5 years 5 years Dividend yield 0 % 0 % Estimated fair value per option $ 0.31-$0.54 $ 0.60 - $1.07 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Revenues [Abstract] | ||
Schedule of revenue | November 30 2020 $ November 30 2019 $ Product sales 164,990 10,015 Licensing revenue 130,584 — Freight revenue 82 317 Income from ongoing operations 295,656 10,332 Income from discontinued operations 3,000 51,750 298,656 62,082 | August 31 2020 $ August 31 2019 $ Product sales 150,993 24,282 Licensing revenue (Note 11) 232,909 198,000 Freight revenue 641 328 384,543 222,610 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Schedule of related party transactions | November 30 November 30 2020 2019 Contract Non Cash Total Contract Non Cash Total Management, consulting and director services $ $ $ $ $ $ CAB Financial Services (1) 67,537 — 67,537 65,757 — 65,757 M&E Services Ltd. (1) 31,822 — 31,822 29,382 — 29,382 Docherty Management Limited (1) 52,579 — 52,579 56,730 — 56,730 Directors 17,076 — 17,076 16,717 — 16,717 169,014 — 169,014 168,586 — 168,586 (1) | Management, consulting and accounting services Cash $ % Non-Cash (2) $ % Aug 31 2020 Total $ Cash $ % Non-Cash (2) $ % Aug 31 2019 Total $ C.A.B Financial Services (1) 300,802 66 153,065 34 453,867 223,280 100 — — 223,280 M&E Services Ltd. (1) 121,664 46 143,886 54 265,550 112,377 100 — — 112,377 Docherty Management Limited (1) 242,521 47 275,614 53 518,135 195,740 100 — — 195,740 Company controlled by a director — — — — — 14,932 12 112,718 88 127,650 Directors 67,146 43 88,544 57 155,690 16,138 9 172,330 91 188,468 732,133 661,109 1,393,242 562,467 285,048 847,515 (1) (2) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Segment Reporting [Abstract] | ||
Schedule of the profit or loss and total assets for each reportable segment | IP Licensing $ Products $ Corporate $ Consolidated Total $ External revenue 130,584 165,072 — 295,656 CoGS — (64,478 ) — (64,478 ) Operating expenses (127,868 ) (92,038 ) (724,393 ) (944,299 ) Discontinued operations 3,000 — — 3,000 Segment income(loss) 5,716 8,556 (724,393 ) (710,121 ) Total assets 817,830 125,963 1,230,527 2,174,320 | IP Licensing Consumer Products Corporate Consolidated Total External revenue 232,909 151,634 — 384,543 Cost of goods sold — (99,378 ) — (99,378 ) Operating expenses (1,601,595 ) (1,043,956 ) (1,724,227 ) (4,369,778 ) Segment loss (1,368,686 ) (991,700 ) (1,724,227 ) (4,084,613 ) Total assets 692,268 116,871 2,019,099 2,828,238 |
Schedule of capital asset by region | Capital Asset by Region Cost US Disposal US Net Balance US Cost Canada Net Balance Canada Total Net Balance Three Months Ended November 30, 2020 $ $ $ $ $ $ Leasehold Improvements — — — 259,981 159,861 159,861 Computers — — — 63,964 27,175 27,175 Furniture Fixtures Equipment 3,094 (3,094 ) — 31,126 19,518 19,518 Lab Equipment 98,050 — 79,128 193,185 166,673 245,801 101,144 (3,094 ) 79,128 548,256 373,227 452,355 Capital Asset by Region Cost US Net Balance US Cost Canada Net Balance Canada Total Net Balance Year Ended August 31, 2020 $ $ $ $ $ Leasehold Improvements — — 259,981 173,371 173,371 Computers — — 63,964 32,095 32,095 Furniture Fixtures Equipment 3,094 — 31,126 21,123 21,123 Lab Equipment 98,050 85,263 193,185 171,505 256,768 101,144 85,263 548,256 398,094 483,357 | Capital Asset by Region Cost Net Balance Cost Net Balance Canada Canada Total Net Balance Balance Year Ended August 31, 2020 $ $ $ $ $ Leasehold Improvements — — 259,981 173,371 173,371 Computers — — 63,964 32,095 32,095 Furniture Fixtures Equipment 3,094 — 31,126 21,123 21,123 Lab Equipment 98,050 85,264 193,185 171,505 256,769 101,144 85,264 548,256 398,094 483,358 Capital Asset by Region Cost Net Balance Cost Net Balance Canada Canada Total Net Balance Balance Year Ended August 31, 2019 $ $ $ $ $ Leasehold Improvements — — 259,981 226,638 226,638 Computers — — 63,964 51,776 51,776 Furniture Fixtures Equipment 3,094 619 31,126 27,540 28,159 Lab Equipment 98,050 85,420 193,185 199,269 284,689 101,144 86,039 548,256 505,223 591,262 |
Commitments, Significant Cont_2
Commitments, Significant Contracts and Contingencies (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of management and service agreements | Party Monthly Commitment Expiry Date C.A.B Financial Services CAD $29,706 January 1, 2022 Docherty Management Ltd. CAD $25,609 January 1, 2022 M&E Services Ltd. CAD $13,997 June 1, 2021 Corporate Development CAD $1,500 Month to Month Office Management CAD $10,800 August 15, 2022 Research & Development CAD $3,854 Month to Month Office operating lease (1) CAD $4,823 November 15, 2023 Right of Use Assets - Operating Lease (1) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. | Party Monthly Commitment Expiry Date C.A.B Financial Services CAD $29,706 January 1, 2022 Docherty Management Ltd. CAD $25,609 January 1, 2022 M&E Services Ltd. CAD $13,997 June 1, 2021 Corporate Development CAD $1,500 Month to Month Office Management CAD $10,800 August 15, 2022 Research & Development CAD $3,854 Month to Month Office operating lease (1) CAD $4,823 November 15, 2023 Right of Use Assets - Operating Lease (1) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. |
Schedule of information about operating lease | Right of use assets - operating leases: $ November 30, 2020 126,920 Amortization (8,727 ) Total right of use assets 118,193 Liabilities: November 30, 2020 125,431 Lease payments (10,987 ) Interest accretion 2,220 Total lease liabilities 116,664 Operating lease cost as at November 30, 2020 $ 118,193 Operating cash flows for lease 10,948 Remaining lease term 2.8 Years Discount rate 7.25 % | Right of use assets - operating leases: $ September 1, 2019 160,289 Amortization (33,369 ) Total lease assets 126,920 Liabilities: September 1, 2019 158,773 Lease payments (43,764 ) Interest accretion 10,423 Total lease liabilities 125,431 Operating lease cost as at August 31, 2020 $ 126,920 Operating cash flows for lease $ 43,764 Remaining lease term 3.1 Years Discount rate 7.25 % |
Schedule of maturities of operating lease liabilities | 2021 32,746 2022 44,815 2023 44,815 2024 7,469 Thereafter — Total lease payments 129,845 Less: imputed interest (13,181 ) Present value of operating lease liabilities 116,664 Less: current obligations under leases (36,695 ) Total 79,969 | 2021 43,950 2022 44,599 2023 44,815 2024 7,469 Thereafter — Total lease payments 140,832 Less: imputed interest (15,401 ) Present value of operating lease liabilities 125,431 Less: current obligations under leases (36,038 ) Total 89,393 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Prepaid Expense, Current [Abstract] | ||
Schedule of prepaid expenses | November 30 August 31 2020 2020 $ $ Advertising & conferences 21,539 21,878 Legal fees 130 47,498 Licence, filing fees, dues 30,138 8,541 Office & insurance 58,823 78,792 Research & development 25,386 25,386 136,016 182,095 | August 31 2020 $ August 31 2019 $ Advertising & conferences 21,878 39,143 Legal fees 47,498 — Licence, filing fees, dues 8,541 — Office & insurance 78,792 29,784 Research & development 25,386 — 182,095 68,927 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Marketable Securities [Abstract] | ||
Schedule of marketable securities | Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2020 Common stock 56,250 9,997 (38,584 ) Total 56,250 9,997 (46,926 ) 19,321 November 30, 2020 Common stock 56,250 24,410 — Total 56,250 34,407 (46,926 ) 43,731 | Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2019 Common Stock 81,250 9,335 (12,124 ) Total 81,250 9,335 (26,973 ) 63,612 August Common Stock 56,250 9,997 (38,584 ) Total 56,250 9,997 (46,926 ) 19,321 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Discontinued Operations And Disposal Groups Abstract | |
Schedule of discontinued operations | The financial results of the group of assets sold are presented as income (loss) from discontinued operations, net of income taxes in our consolidated statement of income. The following table presents financial results of the assets: THREE MONTHS ENDED November 30 November 30 2020 2019 Revenue $ 3,000 $ 51,750 Operating Expenses — 406 Net Income $ 3,000 $ 51,344 The following table presents cash flows of discontinued operations: THREE MONTHS ENDED November 30 November 30 2020 2019 Cash flows used in discontinued operating activities Net income $ 3,000 $ 51,344 Change in working capital 55,667 (97,742 ) Net cash used in discontinued operating activities $ 58,667 $ (46,398 ) Net cash provided by (used in) discontinued operations 58,667 (46,398 ) The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of the assets: November 30 August 31 2020 2020 Current Assets Accounts receivable $ 49,333 $ 105,250 Total assets classified as discontinued operations in the consolidated balance sheet 49,333 105,250 Current Liabilities Accounts payable $ — $ 250 Total liabilities classified as discontinued operations in the consolidated balance sheet — 250 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | August 31 2020 $ August 31 2019 $ Loss before taxes (3,987,018 ) (4,158,413 ) Expected income tax recovery (856,424 ) (883,841 ) Non-deductible items 200,573 8,544 Change in estimates 92,083 948 Effect of changes in foreign and long-term tax rates — — Change in valuation allowance 566,087 892,013 Total income taxes 2,319 17,664 |
Schedule of deferred taxes assets and liabilities | August 31 2020 $ August 31 2019 $ Non-capital losses 5,588,526 5,022,440 Marketable securities 2,300 2,300 Total unrecognized deferred tax assets 5,590,826 5,024,740 |
Schedule of carryforwards net operating loss | Year Amount Canada 2025 76,000 — 2026 508,000 — 2027 1,056,000 — 2028 720,000 — 2029 753,000 — 2030 552,000 — 2031 538,000 — 2032 252,000 — 2033 344,000 — 2034 3,257,000 — 2035 1,934,000 — 2036 1,150,000 — 2037 1,857,000 — 2038 — — 2039 — 242,000 2040 — 309,000 Indefinite 13,343,000 — 26,340,000 551,000 Total 26,891,000 |
Organization, Business and Go_2
Organization, Business and Going Concern (Detail Textuals) | 1 Months Ended | 3 Months Ended |
Jan. 12, 2021 | Nov. 30, 2020 | |
Organization, Business And Going Concern [Abstract] | ||
Description, Reverse stock split | 1:30 | 1:30 |
Significant Accounting Polici_2
Significant Accounting Policies (Detail Textuals) | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($)License | Aug. 31, 2019USD ($)License | Nov. 30, 2019USD ($) | Sep. 01, 2019USD ($) | Aug. 31, 2018USD ($) | |
Accounting Policies [Line Items] | ||||||
Equipment, depreciation method | straight-line method | |||||
Patent, legal life | 20 years | |||||
Cash | $ 525,341 | $ 1,293,749 | $ 1,285,147 | $ 1,333,321 | $ 1,727,184 | |
Territory License Fee receivable | 143,500 | 106,000 | ||||
Bad debt expense | 12,000 | 50,000 | 75,000 | |||
Sales tax receivable | 98,234 | 87,933 | 161,418 | |||
Balance September 1, 2019 | 118,193 | 126,920 | $ 0 | $ 160,289 | ||
Balance September 1, 2019 | $ 116,664 | $ 125,431 | $ 158,773 | |||
Intellectual Property Territory License | ||||||
Accounting Policies [Line Items] | ||||||
Number of licensees | License | 3 | 3 |
Basis of Consolidation (Detail
Basis of Consolidation (Detail Textuals) | Nov. 30, 2020 | Aug. 31, 2020 |
Lexaria Nicotine LLC | ||
Equity interest percentage | 83.333% | 83.333% |
Altria Ventures Inc. | ||
Equity interest percentage | 16.667% | 16.667% |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |||
Trade and deposits receivable | $ 3,792 | $ 82,492 | $ 5,727 |
Territory License Fee receivable | 143,500 | 106,000 | |
Intellectual Property Fees | 325,304 | 38,250 | |
Sales tax receivable | 98,234 | 87,933 | 161,418 |
Accounts and other receivable | $ 427,330 | $ 313,925 | $ 273,145 |
Inventory (Details)
Inventory (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 53,676 | $ 51,404 | $ 45,068 |
Work in progress | 11,557 | 15,705 | 0 |
Finished goods | 60,730 | 49,762 | 82,328 |
Inventory | $ 125,963 | $ 116,871 | $ 127,396 |
Inventory (Detail Textuals)
Inventory (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Inventory write-off | $ 1,765 | $ 8,240 | $ 7,182 |
Intellectual Property (Details)
Intellectual Property (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Balance - beginning | $ 292,000 | $ 265,127 | $ 146,538 | ||
Addition | 5,775 | 33,645 | 122,982 | ||
Amortization | (1,717) | (6,772) | [1] | (4,393) | [1] |
Balance - ending | $ 296,058 | $ 292,000 | $ 265,127 | ||
[1] | The patents are amortized over their legal life of 20 years from the patent application’s filing date. |
Intellectual Property (Detail T
Intellectual Property (Detail Textuals) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Alternative Health Products [Line Items] | ||
Useful life | 20 years | 20 years |
Property & Equipment (Details)
Property & Equipment (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Equipment | $ 649,400 | $ 649,400 | $ 649,400 |
Less accumulated amortization | (31,001) | (166,043) | (58,137) |
Disposal | 3,094 | ||
Balance - Ending | 452,355 | 483,357 | 591,263 |
Period Amortization | |||
Less accumulated amortization | (107,906) | (56,281) | |
Leasehold improvements | |||
Equipment | 259,981 | 259,981 | 259,981 |
Less accumulated amortization | (100,120) | (86,610) | (33,342) |
Disposal | 0 | ||
Balance - Ending | 159,861 | 173,371 | 226,639 |
Leasehold improvements | Period Amortization | |||
Less accumulated amortization | (13,509) | (53,268) | (33,342) |
Computers | |||
Equipment | 63,964 | 63,964 | 63,964 |
Less accumulated amortization | (36,789) | (31,869) | (12,187) |
Disposal | 0 | ||
Balance - Ending | 27,175 | 32,095 | 51,777 |
Computers | Period Amortization | |||
Less accumulated amortization | (4,920) | (19,681) | (12,187) |
Furniture fixtures equipment | |||
Equipment | 34,220 | 34,220 | 34,220 |
Less accumulated amortization | (11,608) | (13,097) | (6,062) |
Disposal | 3,094 | ||
Balance - Ending | 19,518 | 21,123 | 28,158 |
Furniture fixtures equipment | Period Amortization | |||
Less accumulated amortization | (1,604) | (7,036) | (4,205) |
Lab equipment | |||
Equipment | 291,235 | 291,235 | 291,235 |
Less accumulated amortization | (45,434) | (34,467) | (6,546) |
Disposal | 0 | ||
Balance - Ending | 245,801 | 256,768 | 284,689 |
Lab equipment | Period Amortization | |||
Less accumulated amortization | $ (10,967) | $ (27,921) | $ (6,546) |
Property & Equipment (Detail Te
Property & Equipment (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Aug. 31, 2020 | |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | ||
Amortization cost | $ 4,790 | $ 1,928 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Accounts Payable And Accrued Liabilities[Line Items] | |||
Accounts payable and accrued liabilities | $ 83,095 | $ 86,920 | $ 136,411 |
Accounts Payable | |||
Accounts Payable And Accrued Liabilities[Line Items] | |||
Trades payable | 12,659 | 45,080 | 31,463 |
Sales tax payable | 0 | 63,616 | |
Accrued Liabilities | |||
Accounts Payable And Accrued Liabilities[Line Items] | |||
Trades payable | 68,651 | 38,006 | 41,332 |
Corporate tax payable | $ 1,785 | $ 3,834 | $ 0 |
Common Shares and Warrants (Det
Common Shares and Warrants (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2020 | Feb. 29, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | ||||
Equity [Abstract] | |||||||
Warrant exercise, number of shares | [1] | 1,626,513 | |||||
Warrant exercise, total value | [1] | $ 796,122 | |||||
Option exercise, number of shares | 7,333 | 430,000 | |||||
Option exercise, total value | $ 19,030 | $ 11,000 | $ 30,030 | $ 66,250 | |||
Private placement, number of Shares | 10,689,956 | [2] | 947,150 | ||||
Private placement, total Value | $ 2,859,914 | [2] | $ 1,515,440 | ||||
Per agreements, number of shares | [3] | 347,222 | 250,000 | ||||
Per agreements, total value | $ 100,000 | $ 100,000 | [3] | $ 234,500 | [3] | ||
Total number of shares issued in exercise of options, private placement and per agreements | 11,257,178 | 3,253,663 | |||||
Total value of shares issued in exercise of options, private placement and per agreements | $ 2,989,944 | $ 2,612,312 | |||||
[1] | Includes 384,212 broker warrants exercised for gross proceeds of $191,742 | ||||||
[2] | Total fees of $221,889 were paid for total net receipt of $2,638,025. | ||||||
[3] | The Company awarded the restricted common shares as required by consulting contracts. |
Common Shares and Warrants (D_2
Common Shares and Warrants (Details 1) - $ / shares | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Common Shares And Warrants [Roll Forward] | |||
Number of Warrants, Balance | 471,608 | 94,177 | 3,286,274 |
Weighted Average Exercise Price, Balance | $ 16.77 | $ 41.40 | $ 0.72 |
Number of Warrants, Cancelled/Expired | (32,510) | (25,000) | (17,498) |
Weighted Average Exercise Price, Cancelled/Expired | $ 67.50 | $ 44.90 | $ 0.59 |
Number of Warrants, Exercised | (1,626,513) | ||
Weighted Average Exercise Price, Exercised | $ 0.49 | ||
Number of Warrants, Issued | 402,431 | 1,183,062 | |
Weighted Average Exercise Price, Issued | $ 12.74 | $ 1.99 | |
Number of Warrants, Balance | 439,098 | 471,608 | 94,177 |
Weighted Average Exercise Price, Balance | $ 14.68 | $ 16.77 | $ 41.40 |
Common Shares and Warrants (D_3
Common Shares and Warrants (Details 2) - $ / shares | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life | 5 years | 5 years |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 95.00% | 100.00% |
Risk-free interest rate | 0.35% | 1.42% |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 96.00% | 144.00% |
Risk-free interest rate | 1.66% | 2.89% |
Warrant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Warrant | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 91.00% | 1.00% |
Risk-free interest rate | 0.36% | 2.31% |
Expected life | 2 years | 1 day |
Estimated fair value per warrant | $ 0.28 | |
Warrant | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 94.00% | 117.00% |
Risk-free interest rate | 2.87% | 2.87% |
Expected life | 5 years | 2 years |
Estimated fair value per warrant | $ 0.54 | $ 0.57 |
Common Shares and Warrants (D_4
Common Shares and Warrants (Details 3) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Number of Warrants | 439,098 | 471,608 | 94,177 | 3,286,274 |
Weighted Average Remaining Contractual Life | 4 years 3 days | 3 years 7 months 2 days | ||
Weighted Average Exercise Price | $ 14.68 | |||
# of Warrants 3,333 | ||||
Number of Warrants | 3,333 | 975,325 | ||
Weighted Average Remaining Contractual Life | 5 months 19 days | 2 months 1 day | ||
Weighted Average Exercise Price | $ 28.80 | $ 2.25 | ||
# of Warrants 291 | ||||
Number of Warrants | 291 | 750,000 | ||
Weighted Average Remaining Contractual Life | 11 months 12 days | 1 year 1 month 9 days | ||
Weighted Average Exercise Price | $ 36 | $ 0.14 | ||
# of Warrants 7,500 | ||||
Number of Warrants | 7,500 | 225,000 | ||
Weighted Average Remaining Contractual Life | 1 year 11 months 4 days | 2 years 2 months 4 days | ||
Weighted Average Exercise Price | $ 24 | $ 0.80 | ||
# of Warrants 51,808 | ||||
Number of Warrants | 51,808 | 1,562,995 | ||
Weighted Average Remaining Contractual Life | 3 years 11 months 15 days | 1 year 2 months 12 days | ||
Weighted Average Exercise Price | $ 36 | $ 0.80 | ||
# of Warrants 8,983 | ||||
Number of Warrants | 8,983 | 269,500 | ||
Weighted Average Remaining Contractual Life | 4 years | 1 year 2 months 26 days | ||
Weighted Average Exercise Price | $ 36 | $ 0.80 | ||
# of Warrants 16,666 | ||||
Number of Warrants | 16,666 | |||
Weighted Average Remaining Contractual Life | 4 years 3 months 14 days | |||
Weighted Average Exercise Price | $ 9 | |||
# of Warrants 267,616 | ||||
Number of Warrants | 267,616 | 500,000 | ||
Weighted Average Remaining Contractual Life | 4 years 5 months 4 days | 4 years 6 months 14 days | ||
Weighted Average Exercise Price | $ 10.50 | $ 0.30 | ||
# of Warrants 49,568 | ||||
Number of Warrants | 49,568 | 8,028,254 | ||
Weighted Average Remaining Contractual Life | 4 years 5 months 12 days | 4 years 8 months 4 days | ||
Weighted Average Exercise Price | $ 10.50 | $ 0.35 | ||
# of Warrants 8,333 | ||||
Number of Warrants | 8,333 | 100,000 | ||
Weighted Average Remaining Contractual Life | 5 months 23 days | 8 months 19 days | ||
Weighted Average Exercise Price | $ 46.50 | $ 0.96 | ||
# of Warrants 25,000 | ||||
Number of Warrants | 25,000 | 250,000 | ||
Weighted Average Remaining Contractual Life | 10 months 9 days | 8 months 23 days | ||
Weighted Average Exercise Price | $ 4.20 | $ 1.55 | ||
# of Warrants 1,487,080 | ||||
Number of Warrants | 1,487,080 | |||
Weighted Average Remaining Contractual Life | 4 years 8 months 12 days | |||
Weighted Average Exercise Price | $ 0.35 |
Common Shares and Warrants (D_5
Common Shares and Warrants (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | May 31, 2020 | Nov. 30, 2019 | May 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Common Shares And Warrants [Line Items] | ||||||
Number of units sold in private placement | 1,823,745 | 947,150 | ||||
Price per share of private placement units sold | $ 0.45 | $ 1.60 | ||||
Each Whole Compensation Warrant Exercisable Exercise Price | $ 2.25 | |||||
Term of warrants | 2 years | |||||
Fair value of warrants issued as share issue cost | $ 128,329 | $ 1,850 | ||||
Number of warrants issued | 8,866,211 | |||||
Exercise price of warrants | $ 14.68 | |||||
Consulting Expense For Warrants Previously Granted To Consultant Upon Vesting | $ 51,448 | |||||
Proceeds from Warrant Exercises | $ 2,039,229 | |||||
Issue price of units issued | $ 0.23 | $ 0.23 | ||||
Amount of private placement fees paid | 221,889 | |||||
Payment for net receipt amount of private placement | 2,638,025 | |||||
Legal and professional | $ 248,695 | $ 52,355 | $ 65,600 | 371,844 | 670,863 | |
Warrants issued for services | $ 70,752 | 168,833 | 52,817 | |||
Broker | ||||||
Common Shares And Warrants [Line Items] | ||||||
Fair value of warrants issued as share issue cost | $ 3,938 | $ 6,484 | ||||
Number Of Warrants Issued As Share Issue Cost | 8,750 | |||||
Number of warrants issued | 107,737 | |||||
Exercise price of warrants | $ 2.25 | |||||
Warrants Issued | 384,212 | |||||
Fair Value Of Warrants Issued Pursuant To Consulting Agreements | $ 16,095 | |||||
Proceeds from Warrant Exercises | $ 191,742 | |||||
Number Of Broker Warrants Exercisable | 28,175 | |||||
Consulting agreements | ||||||
Common Shares And Warrants [Line Items] | ||||||
Fair value of warrants issued as share issue cost | $ 98,081 | $ 52,817 | ||||
Number of warrants issued | 500,000 | 100,000 | ||||
May 6, 2025 | ||||||
Common Shares And Warrants [Line Items] | ||||||
Number of warrants issued | 8,028,254 | |||||
Exercise price of warrants | $ 0.35 | $ 0.35 | ||||
May 6, 2025 | Agent agreement | ||||||
Common Shares And Warrants [Line Items] | ||||||
Fair value of warrants issued as share issue cost | $ 151,623 | |||||
May 6, 2025 | Broker | ||||||
Common Shares And Warrants [Line Items] | ||||||
Number of warrants issued | 649,123 | |||||
May 11, 2025 | ||||||
Common Shares And Warrants [Line Items] | ||||||
Number of warrants issued | 837,957 | |||||
Exercise price of warrants | $ 0.35 | $ 0.35 | ||||
First anniversary | ||||||
Common Shares And Warrants [Line Items] | ||||||
Exercise price of warrants | $ 0.80 | |||||
Second anniversary | ||||||
Common Shares And Warrants [Line Items] | ||||||
Exercise price of warrants | $ 1.20 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 12 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | ||||
Quantity | 4,848,000 | [1] | 2,048,000 | ||
Exercise price | $ 11.66 | $ 1 | |||
Life (Years) | 5 years | ||||
Stock Options 1 | |||||
Quantity | 1,000,000 | 390,000 | [2] | ||
Exercise price | $ 0.55 | $ 1.27 | |||
Life (Years) | 5 years | 5 years | |||
Stock Options 2 | |||||
Quantity | 60,000 | 240,000 | [2] | ||
Exercise price | $ 0.43 | $ 1.06 | |||
Life (Years) | 5 years | 5 years | |||
Stock Options 3 | |||||
Quantity | 550,000 | 30,000 | [2] | ||
Exercise price | $ 0.47 | $ 1.16 | |||
Life (Years) | 5 years | 5 years | |||
Stock Options 4 | |||||
Quantity | 2,538,000 | 350,000 | |||
Exercise price | $ 0.32 | $ 0.99 | |||
Life (Years) | 5 years | 5 years | |||
Stock Options 5 | |||||
Quantity | 700,000 | 440,000 | [2] | ||
Exercise price | $ 0.34 | $ 0.99 | |||
Life (Years) | 5 years | 5 years | |||
Stock Options 6 | |||||
Quantity | [2] | 48,000 | |||
Exercise price | $ 0.96 | ||||
Life (Years) | 5 years | ||||
Stock Options 7 | |||||
Quantity | 100,000 | ||||
Exercise price | $ 0.81 | ||||
Life (Years) | 5 years | ||||
Stock Options 8 | |||||
Quantity | [2] | 450,000 | |||
Exercise price | $ 0.81 | ||||
Life (Years) | 5 years | ||||
[1] | 3,962,000 have vested as at August 31, 2020, and 886,000 remain subject to vesting provisions. | ||||
[2] | Options granted vest over a period of three years |
Stock Options (Details 1)
Stock Options (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Options | |||
Balance, Outstanding | 171,596 | 166,767 | 4,800,000 |
Expired/Cancelled | (1,333) | (149,437) | (1,415,000) |
Exercised | (7,333) | (430,000) | |
Granted | 161,600 | 2,048,000 | |
Balance, Outstanding | 170,263 | 171,596 | 166,767 |
Balance, Exercisable | 146,231 | 4,262,000 | |
Weighted Average Exercise Price | |||
Balance, Outstanding | $ 11.17 | $ 21.30 | $ 0.71 |
Expired/Cancelled | 12.90 | 29.51 | 0.66 |
Exercise Price | 4.09 | 0.15 | |
Granted | 11.66 | 1 | |
Balance, Outstanding | 11.16 | 11.17 | $ 21.30 |
Balance, Exercisable | $ 10.51 | $ 0.34 | |
Weighted Average Remaining Contractual Term, Outstanding (Years) | 4 years 18 days | 4 years 3 months 18 days | |
Weighted Average Remaining Contractual Term, Exercisable (Years) | 4 years 18 days | 4 years 3 months 14 days | |
Aggregate Intrinsic Value, Outstanding | $ 30,000 | $ 140,634 | |
Aggregate Intrinsic Value, Exercisable | $ 30,000 | $ 136,853 |
Stock Options (Details 2)
Stock Options (Details 2) - $ / shares | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 5 years | 5 years |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 95.00% | 100.00% |
Risk-free interest rate | 0.35% | 1.42% |
Estimated fair value per option | $ 0.31 | $ 0.60 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 96.00% | 144.00% |
Risk-free interest rate | 1.66% | 2.89% |
Estimated fair value per option | $ 0.54 | $ 1.07 |
Stock Options (Detail Textuals)
Stock Options (Detail Textuals) - $ / shares | 2 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 11.66 | $ 1 | ||
Term of expiration | 5 years | 5 years | ||
2019 Equity Incentive Plan | Directors Officers Employees And Consultants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options available for grant | 7,838,713 | 261,290 | ||
2014 Stock Option Plan | Directors Officers Employees And Consultants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options available for grant | 2,107,500 | 62,917 | ||
Stock Options 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 0.55 | 1.27 | ||
Stock Options 1 | On grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options vested on grant | 3,962,000 | |||
Stock Options 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 0.43 | $ 1.06 | ||
Stock Options 2 | Annually thereafter until fully vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options expected to vest annually | 886,000 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Revenue [Line Items] | ||||
Revenue | $ 295,656 | $ 10,332 | $ 384,543 | $ 222,610 |
Income from ongoing operations | 295,656 | 10,332 | 384,543 | 222,610 |
income from discontinued operations | 3,000 | 51,750 | ||
Income from ongoing and discontinued operations | 298,656 | 62,082 | ||
Product sales | ||||
Revenue [Line Items] | ||||
Revenue | 164,990 | 10,015 | 150,993 | 24,282 |
Income from ongoing operations | 164,990 | 10,015 | 150,993 | 24,282 |
Licensing revenue | ||||
Revenue [Line Items] | ||||
Revenue | 130,584 | 0 | 232,909 | 198,000 |
Income from ongoing operations | 130,584 | 0 | 232,909 | 198,000 |
Freight revenue | ||||
Revenue [Line Items] | ||||
Revenue | 82 | 317 | 641 | 328 |
Income from ongoing operations | $ 82 | $ 317 | $ 641 | $ 328 |
Revenues (Detail Textuals)
Revenues (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 295,656 | $ 10,332 | $ 384,543 | $ 222,610 |
Deferred revenue | 35,500 | 44,255 | ||
Income from ongoing operations | 295,656 | 10,332 | 384,543 | 222,610 |
Net cash from discontinued operations | 3,000 | 51,344 | ||
Licensing revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 130,584 | 0 | 232,909 | 198,000 |
Income from ongoing operations | 130,584 | 0 | 232,909 | 198,000 |
Product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 164,990 | 10,015 | 150,993 | 24,282 |
Revenue from intermediate product for use by five customers | 121,906 | |||
Income from ongoing operations | 164,990 | 10,015 | $ 150,993 | $ 24,282 |
Intellectual Property Licensing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,138 | 33,750 | ||
Income from ongoing operations | 3,138 | 33,750 | ||
Usage Fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 127,446 | |||
Income from ongoing operations | 127,446 | |||
Net cash from discontinued operations | $ 3,000 | $ 18,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | ||||||
Related Party Transaction [Line Items] | |||||||||
Cash | $ 169,014 | $ 168,586 | $ 732,133 | $ 562,467 | |||||
Non-Cash | 0 | 0 | 661,109 | [1] | 285,048 | ||||
Management, consulting and accounting services | 169,014 | 168,586 | 1,393,242 | 847,515 | |||||
C.A.B Financial Services Ltd. ("CAB") | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash | [2] | 67,537 | 65,757 | $ 300,802 | $ 223,280 | ||||
Percentage of cash | [2] | 66.00% | 100.00% | ||||||
Non-Cash | [2] | 0 | 0 | $ 153,065 | [1] | $ 0 | [1] | ||
Percentage of non cash | [2] | 34.00% | 0.00% | ||||||
Management, consulting and accounting services | [2] | 67,537 | 65,757 | $ 453,867 | $ 223,280 | ||||
M&E Services Ltd. ("M&E") | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash | [2] | 31,822 | 29,382 | $ 121,664 | $ 112,377 | ||||
Percentage of cash | [2] | 46.00% | 100.00% | ||||||
Non-Cash | [2] | 0 | 0 | $ 143,886 | [1] | $ 0 | [1] | ||
Percentage of non cash | [2] | 54.00% | 0.00% | ||||||
Management, consulting and accounting services | 31,822 | [2] | 29,382 | [2] | $ 265,550 | [2] | $ 112,377 | ||
Docherty Management Limited ("Docherty Management") | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash | [2] | 52,579 | 56,730 | $ 242,521 | $ 195,740 | ||||
Percentage of cash | [2] | 47.00% | 100.00% | ||||||
Non-Cash | [2] | 0 | 0 | $ 275,614 | [1] | $ 0 | [1] | ||
Percentage of non cash | [2] | 53.00% | 0.00% | ||||||
Management, consulting and accounting services | [2] | 52,579 | 56,730 | $ 518,135 | $ 195,740 | ||||
Company controlled by a director | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash | $ 0 | $ 14,932 | |||||||
Percentage of cash | 0.00% | 12.00% | |||||||
Non-Cash | [1] | $ 0 | $ 112,718 | ||||||
Percentage of non cash | 0.00% | 88.00% | |||||||
Management, consulting and accounting services | $ 0 | $ 127,650 | |||||||
Directors | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash | 17,076 | 16,717 | $ 67,146 | $ 16,138 | |||||
Percentage of cash | 43.00% | 9.00% | |||||||
Non-Cash | 0 | 0 | $ 88,544 | [1] | $ 172,330 | [1] | |||
Percentage of non cash | 57.00% | 91.00% | |||||||
Management, consulting and accounting services | $ 17,076 | $ 16,717 | $ 155,690 | $ 188,468 | |||||
[1] | Stock Based Compensation (SBC) and Share Awards are included in the total value of the grants and awards included in expenses. In the year ended August 31, 2020 the Company granted $572,565 of option awards to officers and $88,544 awards to Directors included in Consulting expense replacing cancelled options (Note 13). | ||||||||
[2] | C.A.B. Financial Services is owned by the CEO of the Company, M&E Services Ltd. is owned by the CFO of the Company, and Docherty Management Limited is owned by the President of the Company. |
Related Party Transactions (D_2
Related Party Transactions (Detail Textuals) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Nov. 30, 2020 | Aug. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 58,704 | $ 87,185 | $ 48,096 |
Officers | |||
Related Party Transaction [Line Items] | |||
Value of option awards granted | 572,565 | ||
Directors | |||
Related Party Transaction [Line Items] | |||
Value of option awards granted | $ 88,544 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
External revenue | $ 295,656 | $ 10,332 | $ 384,543 | $ 222,610 |
Cost of goods sold | (64,478) | (7,853) | (99,378) | (22,893) |
Operating expenses | (944,299) | (978,585) | (4,369,778) | (4,358,130) |
Discontinued operations | 3,000 | 51,344 | ||
Segment income (loss) | (713,121) | (976,106) | (4,084,613) | (4,158,413) |
Segment income(loss) | (710,121) | $ (924,762) | (4,084,613) | (4,158,413) |
Total assets | 2,174,320 | 2,828,238 | $ 2,675,219 | |
IP Licensing | ||||
External revenue | 130,584 | 232,909 | ||
Cost of goods sold | 0 | 0 | ||
Operating expenses | (127,868) | (1,601,595) | ||
Discontinued operations | 3,000 | |||
Segment income (loss) | (1,368,686) | |||
Segment income(loss) | 5,716 | |||
Total assets | 817,830 | 692,268 | ||
Consumer Products | ||||
External revenue | 165,072 | 151,634 | ||
Cost of goods sold | (64,478) | (99,378) | ||
Operating expenses | (92,038) | (1,043,956) | ||
Discontinued operations | 0 | |||
Segment income (loss) | (991,700) | |||
Segment income(loss) | 8,556 | |||
Total assets | 125,963 | 116,871 | ||
Corporate | ||||
External revenue | 0 | 0 | ||
Cost of goods sold | 0 | 0 | ||
Operating expenses | 724,393 | (1,724,227) | ||
Discontinued operations | 0 | |||
Segment income (loss) | (1,724,227) | |||
Segment income(loss) | (724,393) | |||
Total assets | $ 1,230,527 | $ 2,019,099 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) | 3 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Disposal | $ (3,094) | ||
Net Balance | 452,355 | $ 483,357 | $ 591,263 |
US | |||
Segment Reporting Information [Line Items] | |||
Cost | 101,144 | 101,144 | 101,144 |
Disposal | (3,094) | ||
Net Balance | 79,128 | 85,264 | 86,039 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Cost | 548,256 | 548,256 | 548,256 |
Net Balance | 373,227 | 398,094 | 505,223 |
Leasehold improvements | |||
Segment Reporting Information [Line Items] | |||
Disposal | 0 | ||
Net Balance | 159,861 | 173,371 | 226,639 |
Leasehold improvements | US | |||
Segment Reporting Information [Line Items] | |||
Cost | 0 | 0 | 0 |
Disposal | 0 | ||
Net Balance | 0 | 0 | 0 |
Leasehold improvements | Canada | |||
Segment Reporting Information [Line Items] | |||
Cost | 259,981 | 259,981 | 259,981 |
Net Balance | 159,861 | 173,371 | 226,638 |
Computers | |||
Segment Reporting Information [Line Items] | |||
Disposal | 0 | ||
Net Balance | 27,175 | 32,095 | 51,777 |
Computers | US | |||
Segment Reporting Information [Line Items] | |||
Cost | 0 | 0 | 0 |
Disposal | 0 | ||
Net Balance | 0 | 0 | 0 |
Computers | Canada | |||
Segment Reporting Information [Line Items] | |||
Cost | 63,964 | 63,964 | 63,964 |
Net Balance | 27,175 | 32,095 | 51,776 |
Furniture fixtures equipment | |||
Segment Reporting Information [Line Items] | |||
Disposal | (3,094) | ||
Net Balance | 19,518 | 21,123 | 28,158 |
Furniture fixtures equipment | US | |||
Segment Reporting Information [Line Items] | |||
Cost | 3,094 | 3,094 | 3,094 |
Disposal | (3,094) | ||
Net Balance | 0 | 0 | 619 |
Furniture fixtures equipment | Canada | |||
Segment Reporting Information [Line Items] | |||
Cost | 31,126 | 31,126 | 31,126 |
Net Balance | 19,518 | 21,123 | 27,540 |
Lab equipment | |||
Segment Reporting Information [Line Items] | |||
Disposal | 0 | ||
Net Balance | 245,801 | 256,768 | 284,689 |
Lab equipment | US | |||
Segment Reporting Information [Line Items] | |||
Cost | 98,050 | 98,050 | 98,050 |
Disposal | 0 | ||
Net Balance | 79,128 | 85,264 | 85,420 |
Lab equipment | Canada | |||
Segment Reporting Information [Line Items] | |||
Cost | 193,185 | 193,185 | 193,185 |
Net Balance | $ 166,673 | $ 171,505 | $ 199,269 |
Segment Information (Detail Tex
Segment Information (Detail Textuals) | 12 Months Ended |
Aug. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Commitments, Significant Cont_3
Commitments, Significant Contracts and Contingencies (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | ||
C.A.B Financial Services | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 29,706 | $ 29,706 | |
Expiry Date | January 1, 2022 | January 1, 2022 | |
Docherty Management Ltd. | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 25,609 | $ 25,609 | |
Expiry Date | January 1, 2022 | January 1, 2022 | |
M&E Services Ltd. | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 13,997 | $ 13,997 | |
Expiry Date | June 1, 2021 | June 1, 2021 | |
Corporate development | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 1,500 | $ 1,500 | |
Expiry Date | Month to Month | Month to Month | |
Office management | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 10,800 | $ 10,800 | |
Expiry Date | August 15, 2022 | August 15, 2022 | |
Research & development | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | $ 3,854 | $ 3,854 | |
Expiry Date | Month to Month | Month to Month | |
Office operating lease | |||
Commitments Significant Contracts And Contingencies [Line Items] | |||
Monthly Commitment | [1] | $ 4,823 | $ 4,823 |
Expiry Date | [1] | November 15, 2023 | November 15, 2023 |
[1] | Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. |
Commitments, Significant Cont_4
Commitments, Significant Contracts and Contingencies (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2020 | Aug. 31, 2020 | Sep. 01, 2019 | |
Right Of Use Asset [Abstract] | |||||
Balance September 1, 2019 | $ 118,193 | $ 0 | $ 118,193 | $ 126,920 | $ 160,289 |
Total lease assets | 126,920 | 0 | |||
Amortization | (8,727) | (33,369) | |||
Total lease assets | 118,193 | 126,920 | |||
Operating Lease Liabilities [Abstract] | |||||
Balance September 1, 2019 | 116,664 | 125,431 | $ 116,664 | $ 125,431 | $ 158,773 |
Total lease liabilities | 125,431 | ||||
Lease payments | (10,987) | (43,764) | |||
Interest accretion | 2,220 | 10,423 | |||
Total lease liabilities | 116,664 | 125,431 | |||
Operating lease cost as at August 31, 2020 | 118,193 | 126,920 | |||
Operating cash flows for lease | $ (10,948) | $ 43,764 | |||
Remaining lease term | 2 years 9 months 18 days | 3 years 1 month 6 days | |||
Discount rate | 7.25% | 7.25% |
Commitments, Significant Cont_5
Commitments, Significant Contracts and Contingencies (Details 2) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Sep. 01, 2019 | Aug. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||||
2021 | $ 32,746 | $ 43,950 | ||
2022 | 44,815 | 44,599 | ||
2023 | 44,815 | 44,815 | ||
2024 | 7,469 | 7,469 | ||
Thereafter | 0 | 0 | ||
Total lease payments | 129,845 | 140,832 | ||
Less: imputed interest | (13,181) | (15,401) | ||
Balance September 1, 2019 | 116,664 | 125,431 | $ 158,773 | |
Less: current obligations under leases | (36,695) | (36,038) | $ 0 | |
Total | $ 79,969 | $ 89,393 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Prepaid Expense, Current [Abstract] | |||
Advertising & Conferences | $ 21,539 | $ 21,878 | $ 39,143 |
Legal fees | 130 | 47,498 | 0 |
Licence, filing fees, dues | 30,138 | 8,541 | 0 |
Office & Insurance | 58,823 | 78,792 | 29,784 |
Research & Development | 25,386 | 25,386 | 0 |
Prepaid expenses | $ 136,016 | $ 182,095 | $ 68,927 |
Loan Payable (Detail Textuals)
Loan Payable (Detail Textuals) - Loans payable | 3 Months Ended |
Nov. 30, 2020CAD ($) | |
Canadian dollar loan | |
Debt Instrument [Line Items] | |
Long-term Debt | $ 40,000 |
Interest rate | 0.00% |
Percentage of debt forgiveness | 25.00% |
Maximum amount of loan forgiveness | $ 10,000 |
3-year term loan | |
Debt Instrument [Line Items] | |
Interest rate | 5.00% |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Marketable Securities [Line Items] | |||
Cost Basis | $ 56,250 | $ 56,250 | $ 81,250 |
Unrealized Gains | 34,407 | 9,997 | 9,335 |
Unrealized Losses | (46,926) | (46,926) | (26,973) |
Total | 43,731 | 19,321 | 64,214 |
Common stock | |||
Marketable Securities [Line Items] | |||
Cost Basis | 56,250 | 56,250 | 81,250 |
Unrealized Gains | (24,410) | 9,997 | 9,335 |
Unrealized Losses | $ 0 | $ (38,584) | $ (12,124) |
Marketable Securities (Detail T
Marketable Securities (Detail Textuals) | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Marketable Securities [Abstract] | |
Marketable securities realised loss received from licensee in lieu of cash | $ 18,198 |
Proceeds from sale of Marketable securities received from licensee in lieu of cash | $ 6,802 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Discontinued Operations And Disposal Groups Abstract | ||
Revenue | $ 3,000 | $ 51,750 |
Operating Expenses | 0 | 406 |
Net Income | $ 3,000 | $ 51,344 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows used in discontinued operating activities | ||
Net income | $ 3,000 | $ 51,344 |
Change in working capital | 55,667 | (97,742) |
Net cash used in discontinued operating activities | 58,667 | (46,398) |
Net cash provided by (used in) discontinued operations | $ 58,667 | $ (46,398) |
Discontinued Operations (Deta_3
Discontinued Operations (Details 2) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Current Assets | ||
Accounts receivable | $ 49,333 | $ 105,250 |
Total assets classified as discontinued operations in the consolidated balance sheet | 49,333 | 105,250 |
Current Liabilities | ||
Accounts payable | 0 | 250 |
Total liabilities classified as discontinued operations in the consolidated balance sheet | $ 0 | $ 250 |
Discontinued Operations (Deta_4
Discontinued Operations (Detail Textuals) | 1 Months Ended |
Nov. 19, 2020CAD ($) | |
Lexaria Canpharm ULC | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross proceeds from sale non-core business assets | $ 3,850,000 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Loss before taxes | $ (3,987,018) | $ (4,158,413) |
Expected income tax recovery | (856,424) | (883,841) |
Non-deductible items | 200,573 | 8,544 |
Change in estimates | 92,083 | 948 |
Effect of changes in foreign and long-term tax rates | 0 | 0 |
Change in valuation allowance | 566,087 | 892,013 |
Total income taxes | $ 2,319 | $ 17,664 |
Income Tax (Details 1)
Income Tax (Details 1) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Non-capital losses | $ 5,588,526 | $ 5,022,440 |
Marketable securities | 2,300 | 2,300 |
Total unrecognized deferred tax assets | $ 5,590,826 | $ 5,024,740 |
Income Tax (Details 2)
Income Tax (Details 2) | Aug. 31, 2020USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 26,891,000 |
Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 26,340,000 |
Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 551,000 |
2025 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 76,000 |
2025 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2026 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 508,000 |
2026 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2027 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,056,000 |
2027 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2028 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 720,000 |
2028 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2029 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 753,000 |
2029 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2030 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 552,000 |
2030 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2031 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 538,000 |
2031 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2032 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 252,000 |
2032 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2033 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 344,000 |
2033 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2034 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,257,000 |
2034 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2035 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,934,000 |
2035 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2036 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,150,000 |
2036 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2037 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,857,000 |
2037 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2038 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2038 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2039 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2039 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 242,000 |
2040 | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2040 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 309,000 |
Indefinite | Amount | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 13,343,000 |
Indefinite | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 0 |
Income Tax (Detail Textuals)
Income Tax (Detail Textuals) | Aug. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 26,891,000 |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) | Dec. 09, 2020CAD ($)$ / sharesshares | Jan. 14, 2021USD ($)$ / sharesshares | Jan. 12, 2021shares | Nov. 30, 2020$ / sharesshares | Aug. 31, 2020USD ($)shares | May 31, 2020USD ($)shares | Nov. 30, 2019USD ($) | Aug. 31, 2020USD ($)shares | Aug. 31, 2019USD ($)shares | Jan. 11, 2021shares |
Subsequent Event [Line Items] | ||||||||||
Description, Reverse stock split | 1:30 | 1:30 | ||||||||
Common Stock, Shares, Issued | shares | 3,001,476 | 90,044,312 | 90,044,312 | 78,787,134 | ||||||
Common Stock, Shares, Outstanding | shares | 3,001,476 | 90,044,312 | 90,044,312 | 78,787,134 | ||||||
Value of common stock shares issued | $ | $ (65,600) | $ 1,887,606 | $ 816,020 | $ 2,638,026 | $ 1,470,310 | |||||
Number of warrants issued | shares | 8,866,211 | |||||||||
Exercise price of warrants | $ / shares | $ 14.68 | |||||||||
Subsequent Events | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common Stock, Shares, Issued | shares | 3,001,476 | 90,044,312 | ||||||||
Common Stock, Shares, Outstanding | shares | 3,001,476 | 90,044,312 | ||||||||
Subsequent Events | Underwritten public offering | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Value of common stock shares issued | $ | $ 11,039,994 | |||||||||
Number of common shares issued | shares | 2,102,856 | |||||||||
Description of units issued under underwritten public offering | units consisting of one common share and one warrant | |||||||||
Shares issued price per share | $ / shares | $ 5.25 | |||||||||
Underwritten public offering fees | $ | $ 1,410,506 | |||||||||
Subsequent Events | Hill Street Beverage Company Inc | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds from Divestiture of Businesses | $ | $ 350,000 | |||||||||
Restricted common shares received from sale of assets | shares | 6,031,363 | |||||||||
Deemed price per share | $ / shares | $ 0.0829 | |||||||||
10% Promissory note received | $ | $ 2,000,000 | |||||||||
Interest rate on promissory note | 10.00% | |||||||||
Subsequent Events | Hill Street Beverage Company Inc | Sixteen months | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Value of common shares received from sale of assets | $ | $ 1,000,000 | |||||||||
Subsequent Events | Hill Street Beverage Company Inc | Eight months | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Value of common shares received from sale of assets | $ | $ 500,000 |