Cover
Cover - shares | 9 Months Ended | |
May 31, 2021 | Jul. 15, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | LEXARIA BIOSCIENCE CORP. | |
Entity Central Index Key | 0001348362 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | May 31, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 5,104,332 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-00000 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 20-2000871 | |
Entity Address Address Line 1 | #100 - 740 McCurdy Road | |
Entity Address City Or Town | Kelowna BC | |
Entity Address Country | CA | |
Entity Address Postal Zip Code | V1X 2P7 | |
City Area Code | 250 | |
Local Phone Number | 765-6424 | |
Security 12b Title | Common Stock, Par Value $0.001 | |
Trading Symbol | LEXX | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Current | ||
Cash | $ 8,108,512 | $ 1,293,749 |
Marketable securities (Note 21) | 400,744 | 19,321 |
Accounts receivable (Note 9) | 954,097 | 208,925 |
Inventory (Note 10) | 51,738 | 116,871 |
Prepaid expenses and deposit (Note 20) | 170,439 | 182,095 |
Current assets from discontinued operations (Note 22) | 0 | 105,250 |
Total Current Assets | 9,685,560 | 1,926,211 |
Non-current assets, net | ||
Lease right of use (Note 19) | 100,256 | 126,920 |
Intellectual property (Note 11) | 366,340 | 292,000 |
Property & equipment (Note 12) | 395,397 | 483,357 |
Total Non-current Assets | 861,993 | 902,277 |
TOTAL ASSETS | 10,547,553 | 2,828,488 |
Current | ||
Accounts payable and accrued liabilities (Note 13) | 173,901 | 86,920 |
Deferred revenue | 0 | 44,255 |
Due to a related party (Note 17) | 1,324 | 58,704 |
Loan payable | 7,507 | 0 |
Lease payable (Note 19) | 38,485 | 36,038 |
Current liabilities from discontinued operations (Note 22) | 0 | 250 |
Total Current Liabilities | 221,217 | 226,167 |
Long Term | ||
Lease payable (Note 19) | 60,164 | 89,393 |
Loan payable | 0 | 30,670 |
Total Long Term Liabilities | 60,164 | 120,063 |
TOTAL LIABILITIES | 281,381 | 346,230 |
STOCKHOLDERS' EQUITY | ||
Share Capital (Note 14) Authorized: 220,000,000 common voting shares with a par value of $0.001 per share Issued and outstanding: 5,104,332 common shares at May 31, 2021 and 3,001,476 common shares at August 31, 2020 | 5,104 | 3,001 |
Additional paid-in capital (Notes 14, 15) | 40,989,692 | 30,324,398 |
Deficit | (30,651,112) | (27,802,198) |
Equity attributable to shareholders of the Company | 10,343,684 | 2,525,201 |
Non-controlling Interest | (77,512) | (42,943) |
Total Stockholders' Equity | 10,266,172 | 2,482,258 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,547,553 | $ 2,828,488 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | May 31, 2021 | Aug. 31, 2020 |
CONSOLIDATED BALANCE SHEET | ||
Common stock, shares authorized | 220,000,000 | 220,000,000 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 5,104,332 | 3,001,476 |
Common Stock, Shares, Outstanding | 5,104,332 | 3,001,476 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) | ||||
Revenue (Notes 16, 18) | $ 204,055 | $ 36,423 | $ 691,717 | $ 250,804 |
Cost of Goods Sold | 59,989 | 20,319 | 155,037 | 86,278 |
Gross profit | 144,066 | 16,104 | 536,680 | 164,526 |
Expenses | ||||
Accounting and audit | 6,472 | 17,113 | 64,382 | 43,642 |
Depreciation and amortization (Notes 10, 11, 12) | 27,929 | 28,081 | 83,788 | 83,875 |
Advertising and promotions | 325,500 | 48,124 | 410,273 | 128,295 |
Bad debt | 0 | 25,000 | 37,000 | 25,000 |
Consulting (Notes 14, 15) | 1,268,668 | 944,210 | 1,960,468 | 1,949,234 |
Investor relations | 134,540 | 0 | 212,691 | 21,277 |
Legal and professional | 120,434 | 149,257 | 529,776 | 289,614 |
Office and miscellaneous | 106,621 | 55,402 | 365,433 | 193,857 |
Research and development | 454,443 | 24,557 | 823,102 | 318,577 |
Travel | 0 | 2,566 | 850 | 46,178 |
Wages and salaries | 196,153 | 125,274 | 343,812 | 303,635 |
Gain on disposal of assets (Note 22) | 0 | 18,198 | (1,522,704) | 18,198 |
Unrealized (gain)/loss on marketable securities (Note 21) | 69,858 | (19,654) | 86,810 | 20,937 |
Inventory write-off (Note 10) | 0 | 8,240 | 2,482 | 8,240 |
Total Operating Expenses | 2,710,618 | 1,426,368 | 3,398,368 | 3,450,559 |
Net loss from continuing operations | (2,566,552) | (1,410,264) | (2,861,483) | (3,286,033) |
Discontinued operations | ||||
Income (loss) from discontinued operations (Note 22) | 0 | 19,611 | 22,000 | 83,795 |
Net loss and comprehensive loss for the period | (2,566,552) | (1,390,653) | (2,883,483) | (3,202,238) |
Net loss and comprehensive loss attributable to: | ||||
Common shareholders | (2,556,997) | (1,361,381) | (2,848,914) | (3,108,368) |
Non-controlling interest | $ (9,555) | $ (29,272) | $ (34,569) | $ (93,870) |
Basic and diluted income (loss) per share | ||||
Continuing operations | $ (0.40) | $ (0.50) | $ (0.70) | $ (1.19) |
Discontinued operations | 0 | (0.01) | (0.01) | (0.03) |
Total | $ (0.50) | $ (0.50) | $ (0.71) | $ (1.23) |
Weighted average number of common shares outstanding | ||||
Basic and diluted | 5,104,332 | 2,769,488 | 4,056,755 | 2,698,763 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash flows used in operating activities | ||
Net loss and comprehensive loss | $ (2,861,483) | $ (3,286,033) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 410,007 | 1,139,270 |
Depreciation and amortization | 83,788 | 83,875 |
Inventory write-off | 2,482 | 8,240 |
Bad debt expense | 37,000 | 25,000 |
Noncash right of use lease expense | 26,664 | 0 |
Gain on asset disposal | (1,522,704) | 0 |
Realized loss on disposal of investment | 0 | 18,198 |
Unrealized loss on marketable securities | 86,810 | 20,937 |
Warrants issued for services | 785,895 | 168,833 |
Change in working capital | ||
Accounts receivable | (1,106) | (30,815) |
Inventory | 71,976 | (13,396) |
Prepaid expenses and deposits | 11,656 | (20,013) |
Accounts payable and accrued liabilities | 86,981 | (81,284) |
Due to related parties | (57,380) | (18,501) |
Operating lease liability | (26,782) | 0 |
Deferred revenue | (44,255) | 6,250 |
Net cash (used in) by operating activities | (2,910,451) | (1,979,439) |
Cash flows used in investing activities | ||
Sale of marketable securities | 0 | 6,802 |
Intellectual property | (79,493) | (20,007) |
Disposal of assets | 273,375 | 0 |
Net cash provided by (used in) investing activities | 193,882 | (13,205) |
Cash flows from financing activities | ||
Repayment of loan payable | (23,163) | 28,756 |
Proceeds from issuance of equity | 9,471,495 | 2,714,627 |
Net cash from financing Activities | 9,448,332 | 2,743,383 |
Net cash from discontinued operations | 83,000 | (1,875) |
Net change in cash for the period | 6,814,763 | 748,864 |
Cash at beginning of period | 1,293,749 | 1,285,147 |
Cash at end of period | 8,108,512 | 2,034,011 |
Supplemental information of cash flows: | ||
Income taxes paid in cash | 3,540 | (10,459) |
Non-cash consideration on asset disposal | $ 1,171,599 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest |
Balance, shares at Aug. 31, 2019 | 2,626,236 | ||||
Balance, amount at Aug. 31, 2019 | $ 2,490,712 | $ 2,626 | $ 26,248,614 | $ (23,868,202) | $ 107,674 |
Stock based compensation | 162,414 | 162,414 | |||
Warrants issued for services | 70,752 | $ 0 | 70,752 | 0 | 0 |
Private placement, shares | 60,792 | ||||
Private placement, amount | 816,020 | $ 61 | 815,959 | ||
Net loss | (907,313) | 0 | 0 | (907,313) | 0 |
Non-controlling interest | (17,450) | $ 0 | 0 | 0 | (17,450) |
Balance, shares at Nov. 30, 2019 | 2,687,028 | ||||
Balance, amount at Nov. 30, 2019 | 2,615,135 | $ 2,687 | 27,297,739 | (24,775,515) | 90,224 |
Stock based compensation | 294,293 | 0 | 294,293 | 0 | 0 |
Net loss | (950,344) | 0 | 0 | (950,344) | 0 |
Non-controlling interest | (47,148) | $ 0 | 0 | 0 | (47,148) |
Exercise of stock options, shares | 3,667 | ||||
Exercise of stock options, amount | 11,000 | $ 4 | 10,996 | 0 | 0 |
Balance, shares at Feb. 29, 2020 | 2,690,695 | ||||
Balance, amount at Feb. 29, 2020 | 1,922,936 | $ 2,691 | 27,603,028 | (25,725,859) | 43,076 |
Stock based compensation | 682,563 | 0 | 682,563 | 0 | 0 |
Warrants issued for services | 98,081 | $ 0 | 98,081 | 0 | 0 |
Private placement, shares | 295,540 | ||||
Private placement, amount | 1,887,606 | $ 296 | 1,887,310 | 0 | 0 |
Net loss | (1,361,381) | 0 | 0 | (1,361,381) | 0 |
Non-controlling interest | (29,272) | $ 0 | 0 | 0 | (29,272) |
Balance, shares at May. 31, 2020 | 2,986,235 | ||||
Balance, amount at May. 31, 2020 | 3,200,533 | $ 2,986 | 30,270,983 | (27,087,240) | 13,804 |
Net loss | (714,958) | 0 | 0 | (714,958) | 0 |
Non-controlling interest | (56,747) | $ 0 | 0 | 0 | (56,747) |
Exercise of stock options, shares | 3,667 | ||||
Exercise of stock options, amount | 19,030 | $ 4 | 19,026 | 0 | 0 |
Shares issued for service, shares | 11,574 | ||||
Shares issued for service, amount | 100,000 | $ 12 | 99,988 | 0 | 0 |
Private placement | (65,600) | $ 0 | (65,600) | 0 | 0 |
Balance, shares at Aug. 31, 2020 | 3,001,476 | ||||
Balance, amount at Aug. 31, 2020 | 2,482,258 | $ 3,001 | 30,324,398 | (27,802,198) | (42,943) |
Stock based compensation | 48,887 | 0 | 48,887 | 0 | 0 |
Net loss | (696,028) | 0 | 0 | (696,028) | 0 |
Non-controlling interest | (14,093) | $ 0 | 0 | 0 | (14,093) |
Balance, shares at Nov. 30, 2020 | 3,001,476 | ||||
Balance, amount at Nov. 30, 2020 | 1,821,024 | $ 3,001 | 30,373,285 | (28,498,226) | (57,036) |
Stock based compensation | 17,154 | 0 | 17,154 | 0 | 0 |
Net loss | 404,111 | 0 | 0 | 404,111 | 0 |
Non-controlling interest | (10,921) | $ 0 | 0 | 0 | (10,921) |
Brokered placement, shares | 2,102,856 | ||||
Brokered placement, amount | 9,471,495 | $ 2,103 | 9,469,392 | 0 | 0 |
Balance, shares at Feb. 28, 2021 | 5,104,332 | ||||
Balance, amount at Feb. 28, 2021 | 11,702,863 | $ 5,104 | 39,859,831 | (28,094,115) | (67,957) |
Stock based compensation | 343,966 | 0 | 343,966 | 0 | 0 |
Warrants issued for services | 785,985 | 0 | 785,895 | 0 | 0 |
Net loss | (2,378,420) | 0 | 0 | (2,556,997) | 0 |
Non-controlling interest | (9,555) | $ 0 | 0 | 0 | (9,555) |
Balance, shares at May. 31, 2021 | 5,104,332 | ||||
Balance, amount at May. 31, 2021 | $ 10,266,172 | $ 5,104 | $ 40,989,692 | $ (30,651,112) | $ (77,512) |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
May 31, 2021 | |
Organization and Description of Business | |
1. Organization and Description of Business | 1. Organization and Description of Business Lexaria Bioscience Corp. (“Lexaria”, “we”, “our” or “the “Company”) was incorporated in the State of Nevada on December 9, 2004. In March 2014, the Company began work in the field 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 is headquartered in Kelowna, British Columbia, Canada. The corporate website is www.lexaribioscience.com On December 9, 2020, the Company completed the sale of the business assets underlying its Lexaria CanPharm ULC THC related segment. As a result, the related financial results are reflected in our consolidated statement of operations, retrospectively, as discontinued operations beginning in the first quarter of fiscal 2021. The assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheet are classified as discontinued operations. See “Note 22 - Discontinued Operations” for additional information. On January 11, 2021, the Company effected a 30:1 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 accordingly. On January 12, 2021, the Company closed an underwritten public offering for net proceeds of $9,471,495 and issued 2,102,856 common shares. (Note 2) |
Liquidity and Uncertainties
Liquidity and Uncertainties | 9 Months Ended |
May 31, 2021 | |
Liquidity and Uncertainties | |
2. Liquidity and Uncertainties | 2. Liquidity and Uncertainties The unaudited interim consolidated financial statements have been prepared in accordance with US GAAP applicable to a going concern, which assumes the Company will have sufficient funds to pay it operational and capital expenditures for a period of at least 12 months from the date this financial report was issued. Since inception, we have incurred significant operating and net losses. Our net losses were $3.9 million, $4.1 million and $6.6 million for the years ended August 31, 2020, 2019 and 2018, respectively. As of May 31, 2021, we had an accumulated deficit of $30.6 million. We expect to continue to incur significant expenses and operating and net losses in upcoming 12 months. Our net losses may fluctuate significantly from quarter to quarter and year to year, depending on the stage and complexity of our R&D studies, the receipt of additional milestone payments, if any, the receipt of payments under any current or future collaborations we may enter into, and our expenditures on other R&D activities. In the second quarter of 2021, the Company completed an underwritten public offering of common stock for net proceeds of approximately $9.5 million (the “Offering”). As of May 31, 2021, working capital was approximately $9.5 million, an increase of approximately $7.8 million from August 2020. The Company has evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern. With the Offering, the Company is reasonably certain it has sufficient liquidity to support operations in the upcoming 12 months. We may offer additional securities for sale during our fiscal year 2021 or thereafter in response to market conditions or other circumstances if we believe such a plan of financing is required to advance the Company’s business plans and is in the best interests of our stockholders. |
COVID-19
COVID-19 | 9 Months Ended |
May 31, 2021 | |
COVID-19 | |
3. COVID-19 | 3. COVID-19 The emergence of the COVID-19 pandemic in January of 2020 continues to present uncertainty and unforecastable new risks to the Company and its business plan. Restrictions on national and international travel and required business closures present challenges in carrying out normal business activities related to corporate finance efforts and the pursuit of new customers throughout North America who might otherwise access the retail products of our licensees. As a result, the pandemic has increased the risk of lower revenues and higher losses. We have made modifications to our normal operations including requiring team members to work remotely on a rotational basis. To the extent possible, we are conducting business as usual, with necessary or advisable modifications to employee travel. At this time, these measures will continue in force for the near term. We will continue to actively monitor the rapidly evolving situation related to COVID-19 and may take further actions that alter our operations, including those that may be required by federal, state, provincial, or local authorities, or that we determine are in the best interests of our employees and other third parties with which we do business. We do not know when, or if, it will become practical to relax or eliminate some or all these measures entirely. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
May 31, 2021 | |
Significant Accounting Policies | |
4.Significant Accounting Policies | 4. 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. |
Basis of Consolidation
Basis of Consolidation | 9 Months Ended |
May 31, 2021 | |
Basis of Consolidation | |
5.Basis of Consolidation | 5. 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% owned 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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
May 31, 2021 | |
Basis of Presentation | |
6.Basis of Presentation | 6. Basis of Presentation The Company’s unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for a full year or any subsequent period. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements and notes thereto included in our annual report filed on Form 10-K for the year ended August 31, 2020. |
Estimates and Judgments
Estimates and Judgments | 9 Months Ended |
May 31, 2021 | |
Estimates and Judgments | |
7.Estimates and Judgments | 7. Estimates and Judgments The preparation of financial statements in conformity with U.S GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of the Company’s accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations. The Company reviews these estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. Although we believe that these estimates are reasonable actual results could differ. In preparing these unaudited interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended August 31, 2020, with the addition of discontinued operations. (Note 22) |
Recent Accounting Guidance
Recent Accounting Guidance | 9 Months Ended |
May 31, 2021 | |
Recent Accounting Guidance | |
8.Recent Accounting Guidance | 8. 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 probable losses. 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. |
Accounts and Other Receivables
Accounts and Other Receivables | 9 Months Ended |
May 31, 2021 | |
Accounts and Other Receivables | |
9. Accounts and Other Receivables | 9. Accounts and Other Receivables May 31 August 31 2021 2020 $ $ Trade and deposits receivable 784,859 82,492 Intellectual property fees 113,905 38,250 Sales tax receivable 55,333 88,183 954,097 208,925 Trade and deposits receivable includes $781,067 from the asset sale (Note 22). |
Inventory
Inventory | 9 Months Ended |
May 31, 2021 | |
Inventory | |
10. Inventory | 10. Inventory May 31 August 31 2021 2020 $ $ Raw materials 51,738 51,404 Work in progress - 15,705 Finished goods - 49,762 51,738 116,871 During the period ended May 31, 2021, the Company wrote down $44,851 in finished goods and allocated the amount to advertising and promotion as the goods were donated to charity. A further $2,482 (2020 - $8,240 full year) of finished goods inventory was write-off to reflect its net realisable value. |
Intellectual Property
Intellectual Property | 9 Months Ended |
May 31, 2021 | |
Intellectual Property | |
11. Intellectual Property | 11. Intellectual Property The following is a list of US capitalized patents held by the Company: Issued Patent # Patent Certificate Grant Date Patent Family US 9,474,725 B1 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 As at May 31, 2021 the Company held ten non-capitalized patents outside the US. See Note 23. A continuity schedule for capitalized patents is presented below: May 31 August 31 2021 2020 $ $ Balance - beginning 292,000 265,127 Addition 79,493 33,645 Amortization (5,153 ) (6,772 ) Balance - ending 366,340 292,000 Patents are amortized over their 20 year legal life. |
Property & Equipment
Property & Equipment | 9 Months Ended |
May 31, 2021 | |
Property & Equipment | |
12. Property & Equipment | 12. Property & Equipment Nine Months Ended May 31, 2021 Cost Period Amortization Disposal Accumulated Amortization Net Balance $ $ $ $ $ Leasehold improvements 259,981 (40,528 ) - (127,138 ) 132,843 Computers 63,964 (14,761 ) - (46,630 ) 17,334 Furniture fixtures & equipment 34,220 (4,813 ) (3,094 ) (14,816 ) 16,310 Lab equipment 291,235 (27,858 ) - (62,325 ) 228,910 649,400 (87,960 ) (3,094 ) (250,909 ) 395,397 Year Ended August 31, 2020 Cost Period Amortization Accumulated Amortization Net Balance $ $ $ $ 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 nine-month period ended May 31, 2021, $9,325 of amortization was included in the cost of goods sold. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
May 31, 2021 | |
Accounts Payable and Accrued Liabilities | |
13. Accounts Payable and Accrued Liabilities | 13. Accounts Payable and Accrued Liabilities May 31 August 31 2021 2020 $ $ Accounts Payable Trades payable 163,754 45,080 Accrued Liabilities Corporate tax payable 4,755 3,834 Trades payable 5,392 38,006 Balance 173,901 86,920 |
Common Shares and Warrants
Common Shares and Warrants | 9 Months Ended |
May 31, 2021 | |
Common Shares and Warrants | |
14. Common Shares and Warrants | 14. Common Shares and Warrants The fair value of share purchase warrants granted was estimated as of the date of the grant by using the Black-Scholes option pricing model. This mathematical model for determining the value of derivatives was developed in 1973 and assumes a constant volatility skew. The value assigned to the warrants issued during the period reflects an anomaly inherent in this model. During the quarter ended May 31, 2021, the Company issued the following warrants summarized below: Type of Issuance Number of Shares Exercise Price Total Value Warrants 300,000 $9.00 $ 785,895 300,000 $ 785,895 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 (44,161 ) 67.50 Issued 2,630,017 6.58 Balance May 31, 2021 3,057,464 7.87 A summary of warrants outstanding as of May 31, 2021, is presented below: # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 25,000 0.36 years 4.20 292 0.45 years 36.00 7,500 1.43 years 24.00 300,000 2.88 years 9.00 51,814 3.46 years 36.00 8,984 3.50 years 36.00 16,667 3.79 years 9.00 317,190 3.93 years 10.50 2,330,017 4.63 years 6.58 3,057,464 4.32 years 7.85 The fair value of purchase warrants was estimated using the following assumptions: May 31 2021 Expected volatility 103 % Risk-free interest rate 0.16 % Expected life 3 years Dividend yield 0 % Estimated fair value per warrant $ 2.62 |
Stock Options
Stock Options | 9 Months Ended |
May 31, 2021 | |
Stock Options | |
15. Stock Options | 15. 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 within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant. The vesting terms of each grant are set by the board of directors. The Company granted the following options during the quarter ended May 31, 2021: Quantity Exercise Price $ Life (Years) 12,000 5.04 5 43,500 5.31 5 26,000 5.88 5 81,500 5.22 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 171,604 11.17 Cancelled (114,935 ) 10.85 Granted 84,900 5.41 Balance May 31, 2021 (Outstanding) 141,569 7.98 4.44 56,827 Balance May 31, 2021 (Exercisable) 128,569 8.27 4.39 44,657 The fair value of share purchase options granted were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: May 31 2021 Expected volatility 134 % Risk-free interest rate 0.85 % Expected life 5 years Dividend yield 0 % Estimated fair value per option $ 4.63 |
Revenues
Revenues | 9 Months Ended |
May 31, 2021 | |
Revenues | |
16. Revenues | 16. Revenues May 31 2021 $ May 31 2020 $ Product sales 360,558 119,709 Licensing revenue 326,474 130,509 Freight revenue 100 586 Interest revenue 4,585 - Income from continuing operations 691,717 250,804 During the nine months ended May 31, 2021, the Company recognized $317,884 of usage fees from continuing operations and $22,000 of loss from discontinued operations (May 2020 - $73,759 licensing and $56,750 usage fees). Our intermediate product sales significantly increased with licensees ramping up their production and increasing their orders of our intermediate product. Intermediate products are typically a DehydraTECH enabled powder that companies can purchase to include in their products. 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. Interest revenue is derived from interest payments on the promissory note issued as a part of our subsidiary CanPharm’s sale of assets. (Note 22) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May 31, 2021 | |
Related Party Transactions | |
17. Related Party Transactions | 17. Related Party Transactions Due to related parties Related party transactions are recorded at the exchange amount established and agreed to between the related parties. As at May 31, 2021, $1,324 (August 31, 2020 - $58,704) was payable to and included in due to related parties. |
Segment Information
Segment Information | 9 Months Ended |
May 31, 2021 | |
Segment Information | |
18. Segment Information | 18. 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 Revenue 326,474 360,658 4,585 691,717 Cost of goods sold - (155,037 ) - (155,037 ) Operating expenses 914,485 (402,846 ) (3,909,802 ) (3,398,163 ) Discontinued operations (22,000 ) - - (22,000 ) Segment income(loss) 1,218,959 (197,225 ) (3,905,217 ) (2,883,483 ) Total assets 709,155 51,738 9,786,659 10,547,553 Capital Asset by Region Cost Disposal US Net Balance Cost Net Balance Canada Total Net Balance Nine Months Ended May 31, 2021 $ $ $ $ $ $ Leasehold Improvements - - - 259,981 132,843 132,843 Computers - - - 63,964 17,334 17,334 Furniture Fixtures Equipment 3,094 3,094 - 31,126 16,309 16,310 Lab Equipment 98,050 - 71,899 193,185 157,010 228,910 101,144 3,094 71,899 548,256 323,496 395,397 Capital Asset by Region Cost Net Balance Cost 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 |
Commitments, Significant Contra
Commitments, Significant Contracts and Contingencies | 9 Months Ended |
May 31, 2021 | |
Commitments, Significant Contracts and Contingencies | |
19. Commitments, Significant Contracts and Contingencies | 19. Commitments, Significant Contracts and Contingencies Right of Use Assets - Operating Lease The Corporate office and R&D lab space located in Kelowna, British Columbia, Canada is leased until November 15, 2023, with a five-year renewal option. 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: $ February 28, 2021 109,306 Amortization (9,050 ) Total right of use assets 100,256 Liabilities: February 28, 2021 107,738 Lease payments (10,987 ) Interest accretion 1,898 Total lease liabilities 98,649 Operating lease cost as at May 31, 2021 Operating cash flows for lease 10,948 Remaining lease term (years) 2.42 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 May 31, 2021: 2021 10,987 2022 44,599 2023 44,816 2024 7,469 Thereafter - Total lease payments 107,871 Less: imputed interest (9,222 ) Present value of operating lease liabilities 98,649 Less: current obligations under leases (38,485 ) Total 60,164 |
Prepaid Expenses and Deposit
Prepaid Expenses and Deposit | 9 Months Ended |
May 31, 2021 | |
Prepaid Expenses and Deposit | |
20. Prepaid Expenses and Deposit | 20. Prepaid Expenses and Deposit Prepaid expenses consist of the following at May 31, 2021 and August 31, 2020: May 31 August 31 2021 2020 $ $ Advertising & conferences 65,350 21,878 Consulting 24,962 - Legal fees 24,370 47,498 Licence, filing fees, dues 41,375 8,541 Office & insurance 14,382 78,792 Research & development - 25,386 170,439 182,095 |
Marketable Securities
Marketable Securities | 9 Months Ended |
May 31, 2021 | |
Marketable Securities | |
21. Marketable Securities | 21. 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 May 31, 2021 Common stock 524,513 24,410 (111,220 ) Total 524,513 34,407 (158,146 ) 400,774 Unrealized gains and 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 | 9 Months Ended |
May 31, 2021 | |
Discontinued Operations And Disposal Groups Abstract | |
22.Discontinued Operations | 22. Discontinued Operations Judgement is required in determining whether a subsidiary or group of assets qualifies as a business and as discontinued operations. A business is presumed to be an integrated set of activities and assets capable of being conducted and managed for the purpose of providing economic benefits. The Company determined that the assets sold were a business. The Company derecognizes a subsidiary or a group of assets only when the rights to the cash flows from the asset expire, or when it transfers the subsidiary or group of asset and substantially all the risks and rewards of ownership of the assets to another entity. Determination of the date of recognition was based on the closing date, final clearance and approval by the TSX Venture Exchange (TSXV) of the share issuances forming part of the consideration. As all consideration is in C$ and the share value is based on fixed C$ values, regardless of the share price of the underlying stock, the amounts were translated at the spot foreign exchange rate on the closing date. The valuation of the note receivable was included at its nominal value of $NIL as payment of the note is not determinable. 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 to Hill Street Beverage Company (“Hill Street”) (TSXV: BEER) for gross proceeds of $3,850,000. With the closing of the sale on December 10, 2020, the Company received C$350,000 in cash, 6,031,363 restricted common shares at a fair value of C$500,000 as the first required equity-based payment, and a C$2,000,000 promissory note bearing interest at 10% per annum. The promissory note was included at its nominal value of $NIL. Pursuant to the terms of the transaction, the Company will receive an additional C$1,000,000 worth of common shares of Hill Street in two equal tranches at eight and sixteen months post-closing. Gain on asset disposal Book value of assets sold $ - Cash consideration 273,373 Shares received 468,264 Shares receivable 781,067 Promissory note - $ 1,522,704 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: NINE MONTHS ENDED May 31 May 31 2021 2020 Revenue $ 3,000 $ 114,750 Operating expenses (25,000 ) (30,795 ) Net income (loss) $ (22,000 ) $ 83,795 The following table presents cash flows of discontinued operations: NINE MONTHS ENDED May 31 May 31 2021 2020 Cash flows used in discontinued operating activities Net income (loss) $ (22,000 ) $ 83,795 Change in working capital 105,000 (85,670 ) Net cash used in discontinued operating activities $ 83,000 $ (1,875 ) Net cash provided by (used in) discontinued operations 83,000 $ (1,875 ) The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of the assets: May 31 August 31 2021 2020 Current Assets Accounts receivable $ - $ 105,250 Total assets classified as discontinued operations in the consolidated balance sheet - 105,250 Current Liabilities Accounts payable - 250 Total liabilities classified as discontinued operations in the consolidated balance sheet $ - $ 250 |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2021 | |
Subsequent Events | |
23. Subsequent Events | 23. Subsequent Events On June 8, 2021, the Company announced the issuance of 87,935 stock options at $7.08 for a period of five years. The Options were issued pursuant to the Company’s registered Incentive Equity Plan and bear a four-month restrictive hold period pursuant to the policies of the Canadian Securities Exchange (“CSE”). On June 29, 2021, the Company announced the results of its Annual General Meeting held on June 28, 2021. The shareholders approved an amendment to the Company’s Equity Incentive Plan for the issuance of an additional 249,143 common shares. Since Lexaria’s listing on the NASDAQ in January 2021 we have noted a significant reduction in its Canadian stockholders’ base and associated low trading volumes of the Company’s shares (CSE:LXX) on the CSE. As such the Company announced it had requested approval for a voluntary delisting from the CSE. On June 30, 2021, the Company received preliminary approval for delisting from the CSE and on July 8, 2021, the shares ceased to be traded on that exchange. On July 13, 2021 the Company announced it had been granted its first patent in Japan. |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 9 Months Ended |
May 31, 2021 | |
Accounts and Other Receivables | |
Schedule of Account and other receivables | May 31 August 31 2021 2020 $ $ Trade and deposits receivable 784,859 82,492 Intellectual property fees 113,905 38,250 Sales tax receivable 55,333 88,183 954,097 208,925 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
May 31, 2021 | |
Inventory | |
Schedule of Inventory | May 31 August 31 2021 2020 $ $ Raw materials 51,738 51,404 Work in progress - 15,705 Finished goods - 49,762 51,738 116,871 |
Intellectual Property (Tables)
Intellectual Property (Tables) | 9 Months Ended |
May 31, 2021 | |
Intellectual Property | |
Schedule of patents | May 31 August 31 2021 2020 $ $ Balance - beginning 292,000 265,127 Addition 79,493 33,645 Amortization (5,153 ) (6,772 ) Balance - ending 366,340 292,000 Patents are amortized over their 20 year legal life. |
Property & Equipment (Tables)
Property & Equipment (Tables) | 9 Months Ended |
May 31, 2021 | |
Property & Equipment | |
Schedule of property and equipment | Nine Months Ended May 31, 2021 Cost Period Amortization Disposal Accumulated Amortization Net Balance $ $ $ $ $ Leasehold improvements 259,981 (40,528 ) - (127,138 ) 132,843 Computers 63,964 (14,761 ) - (46,630 ) 17,334 Furniture fixtures & equipment 34,220 (4,813 ) (3,094 ) (14,816 ) 16,310 Lab equipment 291,235 (27,858 ) - (62,325 ) 228,910 649,400 (87,960 ) (3,094 ) (250,909 ) 395,397 Year Ended August 31, 2020 Cost Period Amortization Accumulated Amortization Net Balance $ $ $ $ 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 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
May 31, 2021 | |
Accounts Payable and Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | May 31 August 31 2021 2020 $ $ Accounts Payable Trades payable 163,754 45,080 Accrued Liabilities Corporate tax payable 4,755 3,834 Trades payable 5,392 38,006 Balance 173,901 86,920 |
Common Shares and Warrants (Tab
Common Shares and Warrants (Tables) | 9 Months Ended |
May 31, 2021 | |
Common Shares and Warrants | |
Schedule of fair value of purchase warrants | May 31 2021 Expected volatility 103 % Risk-free interest rate 0.16 % Expected life 3 years Dividend yield 0 % Estimated fair value per warrant $ 2.62 |
Sehedule of warrants | Type of Issuance Number of Shares Exercise Price Total Value Warrants 300,000 $9.00 $ 785,895 300,000 $ 785,895 |
Schedule of warrants issued | 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 (44,161 ) 67.50 Issued 2,630,017 6.58 Balance May 31, 2021 3,057,464 7.87 |
Schedule of warrants outstanding | # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 25,000 0.36 years 4.20 292 0.45 years 36.00 7,500 1.43 years 24.00 300,000 2.88 years 9.00 51,814 3.46 years 36.00 8,984 3.50 years 36.00 16,667 3.79 years 9.00 317,190 3.93 years 10.50 2,330,017 4.63 years 6.58 3,057,464 4.32 years 7.85 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
May 31, 2021 | |
Stock Options | |
Schedule of exercise price | Quantity Exercise Price $ Life (Years) 12,000 5.04 5 43,500 5.31 5 26,000 5.88 5 81,500 5.22 |
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 171,604 11.17 Cancelled (114,935 ) 10.85 Granted 84,900 5.41 Balance May 31, 2021 (Outstanding) 141,569 7.98 4.44 56,827 Balance May 31, 2021 (Exercisable) 128,569 8.27 4.39 44,657 |
Schedule of fair value of option granted | May 31 2021 Expected volatility 134 % Risk-free interest rate 0.85 % Expected life 5 years Dividend yield 0 % Estimated fair value per option $ 4.63 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
May 31, 2021 | |
Revenues | |
Schedule of revenue | May 31 2021 $ May 31 2020 $ Product sales 360,558 119,709 Licensing revenue 326,474 130,509 Freight revenue 100 586 Interest revenue 4,585 - Income from continuing operations 691,717 250,804 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
May 31, 2021 | |
Segment Information | |
Schedule of the profit or loss and total assets for each reportable segment | IP Licensing Products Corporate Consolidated Total Revenue 326,474 360,658 4,585 691,717 Cost of goods sold - (155,037 ) - (155,037 ) Operating expenses 914,485 (402,846 ) (3,909,802 ) (3,398,163 ) Discontinued operations (22,000 ) - - (22,000 ) Segment income(loss) 1,218,959 (197,225 ) (3,905,217 ) (2,883,483 ) Total assets 709,155 51,738 9,786,659 10,547,553 |
Schedule of capital assets by region | Capital Asset by Region Cost Disposal US Net Balance Cost Net Balance Canada Total Net Balance Nine Months Ended May 31, 2021 $ $ $ $ $ $ Leasehold Improvements - - - 259,981 132,843 132,843 Computers - - - 63,964 17,334 17,334 Furniture Fixtures Equipment 3,094 3,094 - 31,126 16,309 16,310 Lab Equipment 98,050 - 71,899 193,185 157,010 228,910 101,144 3,094 71,899 548,256 323,496 395,397 Capital Asset by Region Cost Net Balance Cost 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 |
Commitments, Significant Cont_2
Commitments, Significant Contracts and Contingencies (Tables) | 9 Months Ended |
May 31, 2021 | |
Commitments, Significant Contracts and Contingencies | |
Schedule of right of use assets | Right of use assets - operating leases: $ February 28, 2021 109,306 Amortization (9,050 ) Total right of use assets 100,256 Liabilities: February 28, 2021 107,738 Lease payments (10,987 ) Interest accretion 1,898 Total lease liabilities 98,649 Operating lease cost as at May 31, 2021 Operating cash flows for lease 10,948 Remaining lease term (years) 2.42 Discount rate 7.25 % |
Schedule of maturities of operating lease | 2021 10,987 2022 44,599 2023 44,816 2024 7,469 Thereafter - Total lease payments 107,871 Less: imputed interest (9,222 ) Present value of operating lease liabilities 98,649 Less: current obligations under leases (38,485 ) Total 60,164 |
Prepaid Expenses and Deposit (T
Prepaid Expenses and Deposit (Tables) | 9 Months Ended |
May 31, 2021 | |
Prepaid Expenses and Deposit | |
Schedule of prepaid expenses | May 31 August 31 2021 2020 $ $ Advertising & conferences 65,350 21,878 Consulting 24,962 - Legal fees 24,370 47,498 Licence, filing fees, dues 41,375 8,541 Office & insurance 14,382 78,792 Research & development - 25,386 170,439 182,095 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
May 31, 2021 | |
Marketable Securities | |
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 May 31, 2021 Common stock 524,513 24,410 (111,220 ) Total 524,513 34,407 (158,146 ) 400,774 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
May 31, 2021 | |
Discontinued Operations And Disposal Groups Abstract | |
Schedule of gain on assest disposal | Gain on asset disposal Book value of assets sold $ - Cash consideration 273,373 Shares received 468,264 Shares receivable 781,067 Promissory note - $ 1,522,704 |
Schedule of income loss of discontinued operation | NINE MONTHS ENDED May 31 May 31 2021 2020 Cash flows used in discontinued operating activities Net income (loss) $ (22,000 ) $ 83,795 Change in working capital 105,000 (85,670 ) Net cash used in discontinued operating activities $ 83,000 $ (1,875 ) Net cash provided by (used in) discontinued operations 83,000 $ (1,875 ) The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of the assets: May 31 August 31 2021 2020 Current Assets Accounts receivable $ - $ 105,250 Total assets classified as discontinued operations in the consolidated balance sheet - 105,250 Current Liabilities Accounts payable - 250 Total liabilities classified as discontinued operations in the consolidated balance sheet $ - $ 250 |
Schedule of assest sold | NINE MONTHS ENDED May 31 May 31 2021 2020 Revenue $ 3,000 $ 114,750 Operating expenses (25,000 ) (30,795 ) Net income (loss) $ (22,000 ) $ 83,795 |
Organization and Description _2
Organization and Description of Business (Detail Narrative) - USD ($) | Jan. 12, 2021 | Jan. 11, 2021 | Feb. 28, 2021 |
Organization and Description of Business | |||
Description of reverse stock split shares issued | 30:1 | ||
Proceeds from underwritten public offering | $ 9,471,495 | $ 9,500,000 | |
Common shares issued | 2,102,856 |
Liquidity and Uncertainties (De
Liquidity and Uncertainties (Detail Narrative) - USD ($) | Jan. 12, 2021 | May 31, 2021 | Feb. 28, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Liquidity and Uncertainties | |||||||||
Proceeds from underwritten public offering | $ 9,471,495 | $ 9,500,000 | |||||||
Working capital | $ 9,500,000 | $ 9,500,000 | $ 7,800,000 | ||||||
Net losses | (2,566,552) | $ (1,390,653) | (2,883,483) | $ (3,202,238) | $ 3,900,000 | $ 4,100,000 | $ 6,600,000 | ||
Accumulated deficit | $ 30,600,000 | $ 30,600,000 |
Basis of Consolidation (Detail
Basis of Consolidation (Detail Narrative) | May 31, 2021 |
Lexaria Nicotine L L C [Member] | |
Equity interest percentage | 83.333% |
Altria Ventures Inc [Member] | |
Equity interest percentage | 16.667% |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Accounts receivable | $ 954,097 | $ 208,925 |
Sales tax receivable [Member] | ||
Accounts receivable | 55,333 | 88,183 |
Intellectual Property fees [Member] | ||
Accounts receivable | 113,905 | 38,250 |
Trade and deposits receivable [Member] | ||
Accounts receivable | $ 784,859 | $ 82,492 |
Accounts and Other Receivable_3
Accounts and Other Receivables (Detail Narrative) | May 31, 2021USD ($) |
Accounts and Other Receivables | |
Trade and deposits receivable | $ 781,067 |
Inventory (Details)
Inventory (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Inventory | $ 51,738 | $ 116,871 |
Finished Goods [Member] | ||
Inventory | 0 | 49,762 |
Work In Progress [Member] | ||
Inventory | 0 | 15,705 |
Raw materials [Member] | ||
Inventory | $ 51,738 | $ 51,404 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Inventory | ||
Advertising and promotion expense | $ 44,851 | |
Finished goods write off | $ 2,482 | $ 8,240 |
Intellectual Property (Details)
Intellectual Property (Details) | 9 Months Ended |
May 31, 2021 | |
Patent one [Member] | |
Issued patent | US 9,474,725 B1 |
Patent certificate grant date Descriptions | 10/25/2016 |
Patent Two [Member] | |
Issued patent | US 9,839,612 B2 |
Patent certificate grant date Descriptions | 12/12/2017 |
Patent Three [Member] | |
Issued patent | US 9,972,680 B2 |
Patent certificate grant date Descriptions | 05/15/2018 |
Patent Four [Member] | |
Issued patent | US 9,974,739 B2 |
Patent certificate grant date Descriptions | 05/22/2018 |
Patent Five [Member] | |
Issued patent | US 10,084,044 B2 |
Patent certificate grant date Descriptions | 09/25/2018 |
Patent Six [Member] | |
Issued patent | US 10,103,225 B2 |
Patent certificate grant date Descriptions | 10/16/2018 |
Patent Seven [Member] | |
Issued patent | US 10,381,440 |
Patent certificate grant date Descriptions | 08/13/2019 |
Patent Eight [Member] | |
Issued patent | US 10,374,036 |
Patent certificate grant date Descriptions | 08/06/2019 |
Patent Nine [Member] | |
Issued patent | US 10,756,180 |
Patent certificate grant date Descriptions | 08/25/2020 |
Intellectual Property (Details
Intellectual Property (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Intellectual Property | ||
Balance- beginning | $ 292,000 | $ 265,127 |
Addition | 79,493 | 33,645 |
Amortization | (5,153) | (6,772) |
Balance - ending | $ 366,340 | $ 292,000 |
Intellectual Property (Detail_2
Intellectual Property (Details Narrative) | 9 Months Ended |
May 31, 2021 | |
Intellectual Property | |
Useful life of patents | 20 years |
Property Equipment (Details)
Property Equipment (Details) - USD ($) | 9 Months Ended | |
May 31, 2021 | Aug. 31, 2020 | |
Cost | $ 649,400 | $ 649,400 |
Accumulated amortization | (250,909) | (166,043) |
Disposal | (3,094) | |
Balance - ending | 395,397 | 483,357 |
Period Amortization [Member] | ||
Accumulated amortization | (87,960) | (107,906) |
Leasehold Improvements [Member] | ||
Cost | 259,981 | 259,981 |
Accumulated amortization | (127,138) | (86,610) |
Disposal | 0 | |
Balance - ending | 132,843 | 173,371 |
Leasehold Improvements [Member] | Period Amortization [Member] | ||
Accumulated amortization | (40,528) | (53,268) |
Computer [Member] | ||
Cost | 63,964 | 63,964 |
Accumulated amortization | (46,630) | (31,869) |
Disposal | 0 | |
Balance - ending | 17,334 | 32,095 |
Computer [Member] | Period Amortization [Member] | ||
Accumulated amortization | (14,761) | (19,681) |
Furniture Fixtures Equipment [Member] | ||
Cost | 34,220 | 34,220 |
Accumulated amortization | (14,816) | (13,097) |
Disposal | (3,094) | |
Balance - ending | 16,310 | 21,123 |
Furniture Fixtures Equipment [Member] | Period Amortization [Member] | ||
Accumulated amortization | (4,813) | (7,036) |
Lab Equipment [Member] | ||
Cost | 291,235 | 291,235 |
Accumulated amortization | (62,325) | (34,467) |
Disposal | 0 | |
Balance - ending | 228,910 | 256,768 |
Lab Equipment [Member] | Period Amortization [Member] | ||
Accumulated amortization | $ (27,858) | $ (27,921) |
Property Equipment (Detail Narr
Property Equipment (Detail Narrative) | 9 Months Ended |
May 31, 2021USD ($) | |
Property & Equipment | |
Amortization in the cost of goods sold | $ 9,325 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Accounts payable and accrued liabilities | $ 173,901 | $ 86,920 |
Accrued Liabilities [Member] | ||
Trades payable | 5,392 | 38,006 |
Corporate tax payable | 4,755 | 3,834 |
Accounts Payable [Member] | ||
Trades payable | $ 163,754 | $ 45,080 |
Common Shares and Warrants (Det
Common Shares and Warrants (Details) | 9 Months Ended |
May 31, 2021USD ($)$ / sharesshares | |
Common Shares and Warrants | |
Warrant exercise, value | $ | $ 785,895 |
Warrant exercise, number of shares | shares | 300,000 |
Warrant Exercise Price | $ / shares | $ 9 |
Warrant exercise, total value | $ | $ 785,895 |
Warrant exercise, total shares | shares | 300,000 |
Common Shares and Warrants (D_2
Common Shares and Warrants (Details 1) - $ / shares | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Common Shares and Warrants | ||
Number of Warrants, Balance | 471,608 | 94,177 |
Number of Warrants, Cancelled/Expired | (44,161) | (25,000) |
Numbers of warrats issued | 2,630,017 | 402,431 |
Number of Warrants, Balance | 3,057,464 | 471,608 |
Weighted Average Exercise Price, Balance | $ 16.77 | $ 41.40 |
Class of Warrant or Right, Expirations in Period, Weighted Average Exercise Price | 67.50 | 44.90 |
Class of Warrant or Right, Grants in Period, Weighted Average Exercise Price | 6.58 | 12.74 |
Weighted Average Exercise Price, Balance | $ 7.87 | $ 16.77 |
Common Shares and Warrants (D_3
Common Shares and Warrants (Details 2) - $ / shares | 9 Months Ended | |||
May 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Number of Warrants | 3,057,464 | 471,608 | 94,177 | 3,286,274 |
Weighted Average Remaining Contractual Life | 4 years 3 months 25 days | |||
Weighted Average Exercise Price | $ 7.85 | |||
Warrants 1 | ||||
Number of Warrants | 25,000 | |||
Weighted Average Remaining Contractual Life | 4 months 9 days | |||
Weighted Average Exercise Price | $ 4.20 | |||
Warrants 2 | ||||
Number of Warrants | 292 | |||
Weighted Average Remaining Contractual Life | 5 months 12 days | |||
Weighted Average Exercise Price | $ 36 | |||
Warrants 3 | ||||
Number of Warrants | 7,500 | |||
Weighted Average Remaining Contractual Life | 2 years 10 months 17 days | |||
Weighted Average Exercise Price | $ 24 | |||
Warrants 4 | ||||
Number of Warrants | 300,000 | |||
Weighted Average Remaining Contractual Life | 1 year 5 months 4 days | |||
Weighted Average Exercise Price | $ 9 | |||
Warrants 5 | ||||
Number of Warrants | 51,814 | |||
Weighted Average Remaining Contractual Life | 3 years 5 months 15 days | |||
Weighted Average Exercise Price | $ 36 | |||
Warrants 6 | ||||
Number of Warrants | 8,984 | |||
Weighted Average Remaining Contractual Life | 3 years 6 months | |||
Weighted Average Exercise Price | $ 36 | |||
Warrants 7 | ||||
Number of Warrants | 16,667 | |||
Weighted Average Remaining Contractual Life | 3 years 9 months 14 days | |||
Weighted Average Exercise Price | $ 9 | |||
Warrants 9 | ||||
Number of Warrants | 317,190 | |||
Weighted Average Remaining Contractual Life | 3 years 11 months 4 days | |||
Weighted Average Exercise Price | $ 10.50 | |||
Warrants 10 | ||||
Number of Warrants | 2,330,017 | |||
Weighted Average Remaining Contractual Life | 4 years 7 months 17 days | |||
Weighted Average Exercise Price | $ 6.58 |
Common Shares and Warrants (D_4
Common Shares and Warrants (Details 3) | 9 Months Ended |
May 31, 2021$ / shares | |
Common Shares and Warrants | |
Expected volatility | 103.00% |
Risk-free interest rate | 0.16% |
Expected life | 3 years |
Dividend yield | 0.00% |
Estimated fair value per warrant | $ 2.62 |
Stock Options (Details)
Stock Options (Details) | 9 Months Ended |
May 31, 2021$ / sharesshares | |
Quantity | shares | 81,500 |
Exercise price | $ / shares | $ 5.22 |
Equity Option One [Member] | |
Quantity | shares | 12,000 |
Exercise price | $ / shares | $ 5.04 |
Life (Years) | 5 years |
Stock Options 2 | |
Quantity | shares | 43,500 |
Exercise price | $ / shares | $ 5.31 |
Life (Years) | 5 years |
Stock Options 3 | |
Quantity | shares | 26,000 |
Exercise price | $ / shares | $ 5.88 |
Life (Years) | 5 years |
Stock Options (Details 1)
Stock Options (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Options | ||
Balance, Outstanding | 171,604 | 166,767 |
Expired/Cancelled | (114,935) | (149,437) |
Exercised | (7,333) | |
Granted | 84,900 | 161,600 |
Balance, Outstanding | 141,569 | 171,604 |
Balance, Exercisable | 128,569 | |
Weighted Average Exercise Price | ||
Balance, Outstanding | $ 11.17 | $ 21.30 |
Expired/Cancelled | 10.85 | 29.51 |
Exercise Price | 0 | 4.09 |
Granted | 5.41 | 11.66 |
Balance, Outstanding | 7.98 | $ 11.17 |
Balance, Exercisable | $ 8.27 | |
Weighted Average Remaining Contractual Term, Outstanding (Years) | 4 years 4 months 20 days | |
Weighted Average Remaining Contractual Term, Exercisable (Years) | 4 years 5 months 8 days | |
Aggregate Intrinsic Value, Outstanding | $ 56,827 | |
Aggregate Intrinsic Value, Exercisable | $ 44,657 |
Stock Options (Details 2)
Stock Options (Details 2) | 9 Months Ended |
May 31, 2021$ / shares | |
Stock Options | |
Expected volatility | 134.00% |
Risk-free interest rate | 0.85% |
Estimated fair value per option | $ 4.63 |
Dividend yield | 0.00% |
Expected life | 5 years |
Stock Options (Detail Narrative
Stock Options (Detail Narrative) - shares | 12 Months Ended | |
Aug. 31, 2020 | May 31, 2021 | |
Term of expiration | 5 years | |
Directors Officers Employees And Consultants [Member] | 2014 Stock Option Plan | ||
Stock options available for grant | 62,917 | |
Directors Officers Employees And Consultants [Member] | Two Thousand Nineteen Equity Incentive Plan [Member] | ||
Stock options available for grant | 261,290 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Income from continuing operations | $ 691,717 | $ 250,804 | ||
Income from ongoing operations | $ 204,055 | $ 36,423 | 691,717 | 250,804 |
Interest Revenue [Member] | ||||
Income from ongoing operations | 4,585 | 0 | ||
Product Sales [Member] | ||||
Income from ongoing operations | 360,558 | 119,709 | ||
License Revenue [Member] | ||||
Income from ongoing operations | 326,474 | 130,509 | ||
Freight Revenue [Member] | ||||
Income from ongoing operations | $ 100 | $ 586 |
Revenues (Details Narrative)
Revenues (Details Narrative) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Revenues (Details) | ||
Usage fees from continuing operations | $ 317,884 | $ 56,750 |
Loss from discontinued operations | $ 22,000 | $ 73,759 |
Related Party Transactions (Det
Related Party Transactions (Detail Narrative) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Related Party Transaction | ||
Due to related parties | $ 1,324 | $ 58,704 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue | $ 204,055 | $ 36,423 | $ 691,717 | $ 250,804 | |||
Cost of goods sold | (59,989) | (20,319) | (155,037) | (86,278) | |||
Operating expenses | (2,710,618) | (1,426,368) | (3,398,368) | (3,450,559) | |||
Discontinued operations | (22,000) | 83,795 | |||||
Segment income (loss) | (2,566,552) | $ (1,390,653) | (2,883,483) | $ (3,202,238) | $ 3,900,000 | $ 4,100,000 | $ 6,600,000 |
Total assets | 10,547,553 | 10,547,553 | $ 2,828,488 | ||||
IP Licensing | |||||||
Revenue | 326,474 | ||||||
Cost of goods sold | 0 | ||||||
Operating expenses | (914,485) | ||||||
Discontinued operations | (22,000) | ||||||
Segment income (loss) | 1,218,959 | ||||||
Total assets | 709,155 | 709,155 | |||||
Consumer Products | |||||||
Revenue | 360,658 | ||||||
Cost of goods sold | (155,037) | ||||||
Operating expenses | (402,846) | ||||||
Discontinued operations | 0 | ||||||
Segment income (loss) | (197,225) | ||||||
Total assets | 51,738 | 51,738 | |||||
Corporate [Member] | |||||||
Revenue | 4,585 | ||||||
Cost of goods sold | 0 | ||||||
Operating expenses | (3,909,802) | ||||||
Discontinued operations | 0 | ||||||
Segment income (loss) | (3,905,217) | ||||||
Total assets | 9,786,659 | 9,786,659 | |||||
Segment [Member] | |||||||
Revenue | 691,717 | ||||||
Cost of goods sold | (155,037) | ||||||
Operating expenses | (3,398,163) | ||||||
Discontinued operations | (22,000) | ||||||
Segment income (loss) | (2,883,483) | ||||||
Total assets | $ 10,547,553 | $ 10,547,553 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) | 9 Months Ended | |
May 31, 2021 | Aug. 31, 2020 | |
Net Balance | $ 395,397 | $ 483,357 |
Disposal | 3,094 | |
Leasehold Improvements [Member] | ||
Net Balance | 132,843 | 173,371 |
Disposal | 0 | |
Computer Equipment [Member] | ||
Net Balance | 17,334 | 32,095 |
Furniture Fixtures Equipment [Member] | ||
Net Balance | 16,310 | 21,123 |
Disposal | 3,094 | |
Lab Equipment [Member] | ||
Net Balance | 228,910 | 256,768 |
Disposal | 0 | |
CANADA | ||
Net Balance | 323,496 | 398,094 |
Cost | 548,256 | 548,256 |
CANADA | Leasehold Improvements [Member] | ||
Net Balance | 132,843 | 173,371 |
Cost | 259,981 | 259,981 |
CANADA | Computer Equipment [Member] | ||
Net Balance | 17,334 | 32,095 |
Cost | 63,964 | 63,964 |
CANADA | Furniture Fixtures Equipment [Member] | ||
Net Balance | 16,309 | 21,123 |
Cost | 31,126 | 31,126 |
CANADA | Lab Equipment [Member] | ||
Net Balance | 157,010 | 171,505 |
Cost | 193,185 | 193,185 |
United States [Member] | ||
Net Balance | 71,899 | 85,263 |
Cost | 101,144 | 101,144 |
Disposal | 3,094 | |
United States [Member] | Leasehold Improvements [Member] | ||
Net Balance | 0 | 0 |
Cost | 0 | 0 |
Disposal | 0 | |
United States [Member] | Computer Equipment [Member] | ||
Net Balance | 0 | 0 |
Cost | 0 | 0 |
Disposal | 0 | |
United States [Member] | Furniture Fixtures Equipment [Member] | ||
Net Balance | 0 | 0 |
Cost | 3,094 | 3,094 |
Disposal | 3,094 | |
United States [Member] | Lab Equipment [Member] | ||
Net Balance | 71,899 | 85,263 |
Cost | 98,050 | $ 98,050 |
Disposal | $ 0 |
Commitments, Significant Cont_3
Commitments, Significant Contracts and Contingencies (Details ) - USD ($) | 9 Months Ended | |
May 31, 2021 | Aug. 31, 2020 | |
Right Of Use Asset [Abstract] | ||
Balance February 28, 2021 | $ 109,306 | |
Amortization | (9,050) | |
Total right of use assets | 100,256 | $ 126,920 |
Operating Lease Liabilities [Abstract] | ||
Balance February 28, 2021 beginning balance | 107,738 | |
Lease payments | (10,987) | |
Interest accretion | 1,898 | |
Total lease liabilities | 98,649 | |
Operating lease cost as at May 31, 2021 | 0 | |
Operating cash flows for lease | $ (10,948) | |
Remaining lease term | 2 years 5 months 1 day | |
Discount rate | 7.25% |
Commitments, Significant Cont_4
Commitments, Significant Contracts and Contingencies (Details 1) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
COVID-19 | ||
2021 | $ 10,987 | |
2022 | 44,599 | |
2023 | 44,816 | |
2024 | 7,469 | |
Thereafter | 0 | |
Total lease payments | 107,871 | |
Less: imputed interest | (9,222) | |
Present value of operating lease liabilities | 98,649 | |
Less: current obligations under leases | 38,485 | $ 36,038 |
Total | $ 60,164 | $ 89,393 |
Prepaid Expenses and Deposit (D
Prepaid Expenses and Deposit (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Prepaid Expenses and Deposit | ||
Advertising & Conferences | $ 65,350 | $ 21,878 |
Consulting | 24,962 | 0 |
Legal fees | 24,370 | 47,498 |
Licence, filing fees, dues | 41,375 | 8,541 |
Office & Insurance | 14,382 | 78,792 |
Research & Development | 0 | 25,386 |
Prepaid expenses | $ 170,439 | $ 182,095 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Marketable Securities | ||
Cost Basis | $ 524,513 | $ 56,250 |
Unrealized Gains | 34,407 | 9,997 |
Unrealized Losses | (158,146) | (46,926) |
Total | 400,774 | 19,321 |
Common Stock [Member] | ||
Marketable Securities | ||
Cost Basis | 524,513 | 56,250 |
Unrealized Gains | 24,410 | 9,997 |
Unrealized Losses | $ (111,220) | $ (38,584) |
Discontinued Operations (Detail
Discontinued Operations (Details) | 9 Months Ended |
May 31, 2021USD ($) | |
Gain on asset disposal | |
Book Value Of Assets Sold | $ 0 |
Cash consideration | 273,373 |
Shares receivable | 781,067 |
Shares Received | 468,264 |
Promissory note | 0 |
Gain on asset disposal | $ 1,522,704 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Discontinued Operations And Disposal Groups Abstract | ||
Revenue | $ 3,000 | $ 114,750 |
Operating Expenses | (25,000) | (30,795) |
Net income | $ (22,000) | $ 83,795 |
Discontinued Operations (Deta_3
Discontinued Operations (Details 2) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash flows used in discontinued operating activities | ||
Net Income (loss) | $ (22,000) | $ 83,795 |
Change in working capital | 105,000 | (85,670) |
Net cash used in discontinued operating activities | 83,000 | (1,875) |
Net cash provided by (used in) discontinued operations | $ 83,000 | $ (1,875) |
Discontinued Operations (Deta_4
Discontinued Operations (Details 3) - USD ($) | May 31, 2021 | Aug. 31, 2020 | May 31, 2020 |
Current Assets | |||
Accounts receivable | $ 0 | $ 105,250 | |
Total assets classified as discontinued operations in the consolidated balance sheet | 0 | $ 105,250 | 105,250 |
Current Liabilities | |||
Accounts payable | 0 | 250 | |
Total liabilities classified as discontinued operations in the consolidated balance sheet | $ 0 | $ 250 | $ 250 |
Discontinued Operations (Deta_5
Discontinued Operations (Detail Narrative) - CAD ($) | Feb. 10, 2021 | Nov. 19, 2020 | Feb. 10, 2021 |
Lexaria Canpharm Ulc [Member] | |||
Gross proceeds from sale non-core business assets | $ 3,850,000 | ||
Hill Street Beverage Company Inc [Member] | |||
Gross proceeds from sale non-core business assets | $ 350,000 | ||
Fair value | $ 500,000 | ||
Restricted common shares received from sale of assets, shares | 6,031,363 | ||
Promissory note received | $ 2,000,000 | ||
Interest rate | 10.00% | ||
Value of common shares received from sale of assets | $ 1,000,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - $ / shares | Jun. 08, 2021 | Jun. 29, 2021 |
Issuance of additional common shares | 249,143 | |
Stock option to be issued | 87,935 | |
Stock option price per share | $ 7.08 |