Lexaria Bioscience (LEXX) 10-Q 14 Apr 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Feb. 28, 2023	Apr. 14, 2023
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	Feb. 28, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		5,985,650
Document Quarterly Report	true
Document Transition Report	false
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
Entity Address State Or Province	BC
Entity Address Country	CA
City Area Code	1.250
Local Phone Number	765.6424
Entity Address Postal Zip Code	V1X 2P7
Security 12b Title	Common Stock, Par Value $0.001
Trading Symbol	LEXX
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity File Number	000-52138

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Current
Cash	$ 3,272,102	$ 5,813,218
Marketable securities	267,704	347,335
Accounts receivable	136,796	201,784
Inventory	7,588	38,418
Prepaid expenses and deposit	319,591	576,761
Total Current Assets	4,003,781	6,977,516
Non-current assets, net
Right of use assets	32,047	52,444
Intellectual property	517,730	488,462
Property & equipment	301,421	315,505
Total Non-current Assets	851,198	856,411
TOTAL ASSETS	4,854,979	7,833,927
Current Liabilities
Accounts payable and accrued liabilities	189,776	151,449
Deferred revenue	4,275	0
Lease payable	29,080	42,587
Total Current Liabilities	223,131	194,036
Long Term Liabilities
Lease payable	0	7,401
Total Long Term Liabilities	0	7,401
TOTAL LIABILITIES	223,131	201,437
Share Capital
Authorized:220,000,000 common voting shares with a par value of $0.001 per share Issued and outstanding: 5,950,998 common shares at February 28, 2023 and at August 31, 2022	5,951	5,951
Additional paid-in capital	47,120,783	47,041,481
Deficit	(42,152,603)	(39,098,528)
Equity attributable to shareholders of the Company	4,974,131	7,948,904
Non-controlling Interest	(342,283)	(316,414)
Total Stockholders' Equity	4,631,848	7,632,490
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,854,979	$ 7,833,927

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Feb. 28, 2023	Aug. 31, 2022
CONSOLIDATED BALANCE SHEETS
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	220,000,000	220,000,000
Common stock, shares, issued	5,950,998	5,950,998
Common stock, shares, outstanding	5,950,998	5,950,998

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Revenue	$ 35,015	$ 30,650	$ 136,491	$ 44,530
Cost of goods sold	(2,958)	(6,387)	(18,753)	(11,957)
Gross profit	32,057	24,263	117,738	32,573
Expenses
Research and development	696,178	275,686	1,525,667	734,395
General and administrative	646,517	1,197,250	1,672,015	2,750,333
Total operating expenses	1,342,695	1,472,936	3,197,682	3,484,728
Net Loss	(1,310,638)	(1,448,673)	(3,079,944)	(3,452,155)
Net loss attributable to:
Common shareholders	(1,298,131)	(1,425,776)	(3,054,075)	(3,418,933)
Non-controlling interest	$ (12,507)	$ (22,897)	$ (25,869)	$ (33,222)
Basic and diluted loss per share	$ (0.22)	$ (0.25)	$ (0.51)	$ (0.59)
Weighted average shares outstanding
- Basic and diluted	5,950,998	5,911,123	5,950,998	5,818,401

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2022
Cash flows used in operating activities
Net loss	$ (1,310,638)	$ (1,448,673)	$ (3,079,944)	$ (3,452,155)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation			79,302	408,544
Depreciation and amortization			49,459	54,093
Noncash right-of-use lease expense			20,397	18,942
Unrealized loss on marketable securities			79,631	281,473
Shares issued for services			0	300,000
Lease accretion			(511)	2,954
Change in operating assets and liabilities
Accounts receivable			64,988	(164,221)
Inventory			33,713	(1,161)
Prepaid expenses and deposits			257,170	97,292
Accounts payable and accrued liabilities			38,327	15,868
Due to related parties			0	(5,223)
Operating lease liability			(20,397)	0
Deferred revenue			4,275	0
Net cash used in operating activities			(2,473,590)	(2,443,594)
Cash flows used in investing activities
Purchase of equipment			(33,748)	(42,375)
Intellectual property			(33,778)	(50,263)
Net cash used in investing activities			(67,526)	(92,638)
Cash flows from financing activities
Lease Payments			0	(22,191)
Net cash used in financing activities			0	(22,191)
Net change in cash for the period			(2,541,116)	(2,558,423)
Cash at beginning of period			5,813,218	10,917,797	$ 10,917,797
Cash at end of period	$ 3,272,102	$ 8,359,374	3,272,102	8,359,374	$ 5,813,218
Supplemental information of cash flows:
Non-cash shares for services included in prepaid expenses			$ 0	$ 900,000

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Additional Paid-in Capital	Deficit	Non-controlling Interest	Common Stock
Balance, shares at Aug. 31, 2021					5,726,699
Balance, amount at Aug. 31, 2021	$ 13,063,552	$ 45,089,114	$ (31,829,204)	$ (202,085)	$ 5,727
Stock based compensation	408,544	408,544	0	0	0
Net loss	(1,993,157)	0	(1,993,157)	0	0
Non-controlling interest	(10,325)	0	0	(10,325)	$ 0
Balance, shares at Nov. 30, 2021					5,726,699
Balance, amount at Nov. 30, 2021	11,468,614	45,497,658	(33,822,361)	(212,410)	$ 5,727
Balance, shares at Aug. 31, 2021					5,726,699
Balance, amount at Aug. 31, 2021	13,063,552	45,089,114	(31,829,204)	(202,085)	$ 5,727
Net loss	(3,418,933)
Non-controlling interest	(33,222)
Balance, shares at Feb. 28, 2022					5,950,998
Balance, amount at Feb. 28, 2022	11,219,941	46,697,434	(35,248,137)	(235,307)	$ 5,951
Balance, shares at Nov. 30, 2021					5,726,699
Balance, amount at Nov. 30, 2021	11,468,614	45,497,658	(33,822,361)	(212,410)	$ 5,727
Net loss	(1,425,776)	0	(1,425,776)	0	0
Non-controlling interest	(22,897)	0	0	(22,897)	$ 0
Shares issued for services, shares					224,299
Shares issued for services, amount	1,200,000	1,199,776	0	0	$ 224
Balance, shares at Feb. 28, 2022					5,950,998
Balance, amount at Feb. 28, 2022	11,219,941	46,697,434	(35,248,137)	(235,307)	$ 5,951
Balance, shares at Aug. 31, 2022					5,950,998
Balance, amount at Aug. 31, 2022	7,632,490	47,041,481	(39,098,528)	(316,414)	$ 5,951
Stock based compensation	68,776	68,776	0	0	0
Net loss	(1,755,944)	0	(1,755,944)	0	0
Non-controlling interest	(13,362)	0	0	(13,362)	$ 0
Balance, shares at Nov. 30, 2022					5,950,998
Balance, amount at Nov. 30, 2022	5,931,960	47,110,257	(40,854,472)	(329,776)	$ 5,951
Balance, shares at Aug. 31, 2022					5,950,998
Balance, amount at Aug. 31, 2022	7,632,490	47,041,481	(39,098,528)	(316,414)	$ 5,951
Net loss	(3,054,075)
Non-controlling interest	(25,869)
Balance, shares at Feb. 28, 2023					5,950,998
Balance, amount at Feb. 28, 2023	4,631,848	47,120,783	(42,152,603)	(342,283)	$ 5,951
Balance, shares at Nov. 30, 2022					5,950,998
Balance, amount at Nov. 30, 2022	5,931,960	47,110,257	(40,854,472)	(329,776)	$ 5,951
Stock based compensation	10,526	10,526	0	0	0
Net loss	(1,298,131)	0	(1,298,131)	0	0
Non-controlling interest	(12,507)	0	0	(12,507)	$ 0
Balance, shares at Feb. 28, 2023					5,950,998
Balance, amount at Feb. 28, 2023	$ 4,631,848	$ 47,120,783	$ (42,152,603)	$ (342,283)	$ 5,951

Nature of Business

Nature of Business	6 Months Ended
	Feb. 28, 2023
Nature of Business
Nature of Business	1. Nature of Business Lexaria Bioscience Corp. (“Lexaria”, “we”, “our” or “the Company”) is a biotechnology company pursuing the enhancement of the bioavailability of a diverse and broad range of active pharmaceutical ingredients (“API”) using DehydraTECH TM We are primarily a research and development company that continues to investigate the benefits of using DehydraTECH with numerous molecules. Revenues are generated from intellectual property (“IP”) licensing contracts for DehydraTECH based on the terms of use and defined geographic and licensing arrangements. We derive income from our third party contracted manufacturing of Business-to-Business (“B2B”) DehydraTECH enhanced products which are made to customer specifications and sold online and in stores in the US. We also perform contract services in R&D for customer specific formulations that are used in comparison testing to customers’ existing products. Going Concern Consideration The Company’s consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“US GAAP”) applicable to a going concern which assumes the Company will have sufficient funds to pay it operational, research and development and capital expenditures for a period of at least 12 months from the date this Report. Since inception, the Company has incurred significant operating and net losses. Annual losses attributable to shareholders were $7.4m (2022), $4.2m (2021) and $4.1m (2020). As of February 28, 2023, we had an accumulated deficit of $42.2m. We expect to continue to incur significant operational expenses and net losses in the upcoming 12 months. Our net losses may fluctuate significantly from quarter to quarter and year to year, depending on the stage and complexity of our R&D studies and corporate expenditures, additional revenues received from the licensing of our technology, if any, and the receipt of payments under any current or future collaborations we may enter into. The recurring losses and negative cash flows from operations raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not contain any adjustments that might result for this uncertainty. The Company entered into a sales agreement with Maxim Group LLC, (“Maxim”) on August 12, 2022, pursuant to which we may offer and sell shares of our common stock with an aggregate offering price of up to $5,925,000 under an At-The-Market (“ATM”) Offering. This agreement provides that Maxim will be entitled to a sales commission equal to 3.0% of the gross sales price per share of all shares sold under the ATM. We may also offer securities for sale during our fiscal year 2023 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. Based on our existing working capital and access to an ATM, management believes the Company has sufficient working capital to satisfy the Company’s estimated liquidity needs for the next 12 months. In making this assessment, the Company believes that this alleviates the substantial doubt in connection with the Company's ability to continue as a going concern. However, there is no assurance that management’s plans will be successful. If the Company is unable to obtain funding, the Company would be forced to delay, reduce or eliminate some or all of its research and development programs, preclinical and clinical testing or commercialization efforts, which could adversely affect its business prospects. Impacts of COVID-19 Pandemic The emergence of the COVID-19 pandemic in 2020 continues to present uncertainty and unforecastable new risks to the Company and its business plans. As of February 28, 2023, there has been no material impact on the Company’s financial position as a direct result of the pandemic. The Company has experienced some supply chain disruptions and shortages in the timely procurement of ingredients and supplies used in both our R&D activities and B2B production. Management views this situation as transitory but cannot predict the length of time it may take for these disruptions to dissipate or if there will be a significant economic effect on the Company’s operations. In the interim, it may cause delays in carrying out our research studies and in our production schedules. There may be further actions we must take that alter our operations, including those that may be required by federal, state, provincial, or local authorities, or that we determine are in the best interests of our employees and other third parties with which we do business. We do not know when it will become practical to relax or eliminate some or all these measures entirely. The economic effect of a prolonged pandemic is difficult to predict and could result in a material financial impact in the Company’s future reporting periods.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Feb. 28, 2023
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies The significant accounting policies of the Company are consistent with those of our audited financial statements on Form 10-K for the year ended August 31, 2022. Basis of Consolidation These interim consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries; Lexaria CanPharm ULC, Lexaria CanPharm Holdings Corp., PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp., and Lexaria Pharmaceutical Corp., and our 83.333% owned subsidiary Lexaria Nicotine LLC with the remaining 16.667% owned by Altria Ventures Inc. an indirect wholly owned subsidiary of Altria Group, Inc. All significant intercompany balances and transactions have been eliminated upon consolidation. Basis of Presentation The Company’s unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. 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 for any subsequent period. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements and notes thereto included in our annual report filed on Form 10-K for the year ended August 31, 2022. Recent Accounting Guidance Pronouncements Issued but Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Estimates and Judgments The preparation of financial statements in conformity with US GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of the Company’s accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations. The Company reviews these estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. Although we believe that these estimates are reasonable, actual results could differ. In preparing these unaudited interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended August 31, 2022.

Marketable Securities

Marketable Securities	6 Months Ended
	Feb. 28, 2023
Marketable Securities
Marketable Securities	3. Marketable Securities The components of Marketable Securities were as follows: Cost Basis Unrealized Gains Unrealized Losses Fair Value August 31, 2021 $ 1,037,025 $ 16,243 $ (219,427 ) $ 833,841 Common stock 278,107 118,196 (882,809 ) (486,506 ) August 31, 2022 $ 1,315,132 $ 134,439 $ (1,102,236 ) $ 347,335 Common stock - - (79,631 ) (79,631 ) February 28, 2023 $ 1,315,132 $ 134,439 $ (1,181,867 ) $ 267,704 Marketable securities held by Lexaria represent available-for-sale common stock of Hill Street Beverage Company Inc. Unrealized gains and losses from common stock are due to market price movements. In management’s opinion based on the evaluation of available information at February 28, 2023, unrealized losses represent temporary impairments.

Accounts Receivables

Accounts Receivables	6 Months Ended
	Feb. 28, 2023
Accounts Receivables
Accounts Receivables	4. Accounts Receivable Accounts receivable at February 28, 2023 and August 31, 2022 consist of the following: February 28, August 31, 2023 2022 Trade and deposits $ 69,309 $ 80,374 Territory license fees 16,875 37,248 Sales tax 50,612 84,162 $ 136,796 $ 201,784

Inventory

Inventory	6 Months Ended
	Feb. 28, 2023
Inventory
Inventory	5. Inventory Inventory at February 28, 2023, and August 31, 2022, consists of the following: February 28, August 31, 2023 2022 Raw materials $ 5,788 $ 38,418 Work in progress 1,800 - $ 7,588 $ 38,418 During the six-month period ended February 28, 2023, raw materials inventory valued at $29,391 was expensed to R&D.

Prepaid Expenses and Deposits

Prepaid Expenses and Deposits	6 Months Ended
	Feb. 28, 2023
Prepaid Expenses and Deposits
Prepaid Expenses and Deposits	6. Prepaid Expenses and Deposits Prepaid expenses consist of the following at February 28, 2023 and August 31, 2022: February 28, August 31, 2023 2022 Advertising & conferences $ 70,742 $ 359,863 Legal fees 25,000 25,000 License, filing fees, dues 39,167 15,000 Office & insurance 37,995 80,863 Capital financing 146,687 96,035 $ 319,591 $ 576,761

Intellectual Property net

Intellectual Property net	6 Months Ended
	Feb. 28, 2023
Intellectual Property net
Intellectual Property	7. Intellectual Property, net The following is a list of capitalized US 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 US 11,311,559 04/26/2022 Compositions and Methods for Enhanced Delivery of Antiviral Agents A continuity schedule for capitalized patents is presented below: February 28, August 31, 2023 2022 Balance – beginning $ 488,462 $ 364,623 Addition 33,778 131,448 Amortization (4,510 ) (7,609 ) Balance – ending $ 517,730 $ 488,462 Patents are amortized over their 20 year legal life.

Property And Equipment

Property And Equipment	6 Months Ended
	Feb. 28, 2023
Property And Equipment
Property & Equipment	8. Property & Equipment Six Months Ended February 28, 2023 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (27,019 ) $ - $ (221,704 ) $ 38,277 Computers 70,781 (2,366 ) - (63,790 ) $ 6,991 Furniture fixtures equipment 31,126 (3,209 ) - (26,047 ) $ 5,079 Lab equipment 333,675 (15,238 ) 33,748 (116,349 ) $ 251,074 $ 695,563 $ (47,832 ) $ 33,748 $ (427,890 ) $ 301,421 Year Ended August 31, 2022 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (54,037 ) $ - $ (194,685 ) $ 65,296 Computers 63,964 (9,874 ) 6,817 (61,424 ) 9,357 Furniture fixtures equipment 31,126 (6,417 ) - (22,837 ) 8,289 Lab equipment 291,235 (31,572 ) 42,375 (101,047 ) 232,563 $ 646,306 $ (101,900 ) $ 49,192 $ (379,993 ) $ 315,505 During the six month period ended February 28, 2023, amortization of $2,883 was included in cost of goods sold.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	6 Months Ended
	Feb. 28, 2023
Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities	9. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at February 28, 2023 and August 31, 2022 consist of the following: February 28, August 31, 2023 2022 Accounts Payable Trades payable $ 167,751 $ 57,150 Sales tax payable 9,652 31,303 Accrued Liabilities Trades payable 12,373 62,996 $ 189,776 $ 151,449

Revenues

Revenues	6 Months Ended
	Feb. 28, 2023
Revenues
Revenues	10. Revenues A breakdown of our revenues by type for the six months ended February 28, 2023 and 2022 are as follows: Six Months Ended February 28, 2023 2022 IP Licensing $ 80,310 $ 16,160 B2B 30,300 17,512 Other 25,881 10,858 $ 136,491 $ 44,530 During the six month period ended February 28, 2023, the Company recognized licensing revenue consisting of IP licensing fees for transfer of the DehydraTECH technology in line with definitive agreements and also includes royalty fees. B2B product revenues of $30,300 (2022 - $17,512) were recorded that relate to sales of our intermediate products for use by B2B customers in their products. The Company recognized $80,310 (2022 - $16,160) in licensing revenue in the same period.

Common Shares, Warrants and Opt

Common Shares, Warrants and Options	6 Months Ended
	Feb. 28, 2023
Common Shares, Warrants and Options
Common Shares, Warrants and Options	11. Common Shares, Warrants and Options There was no change to our issued and outstanding shares during the six-months ended February 28, 2023. During the six months ended February 28, 2023, no warrants were issued or exercised. A continuity schedule for warrants for the six months ended February 28, 2023, is presented below: Number of Warrants Weighted Average Exercise Price Balance August 31, 2022 2,421,983 $ 8.04 Cancelled/expired (7,500 ) $ 24.00 Balance February 28, 2023 2,414,483 $ 7.99 A summary of warrants outstanding as of February 28, 2023, is presented below: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) 60,798 $ 36.00 1.71 - 1.75 317,190 $ 10.50 2.19 116,667 $ 9.00 1.13 - 2.05 200,000 $ 7.00 1.13 1,719,828 $ 6.58 2.88 2,414,483 $ 7.99 2.54 Stock Options The Company has established an Equity Incentive Plan whereby the board of directors may grant up to 510,433 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The vesting terms of each grant are also set by the 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 Company granted the following options during the six months ended February 28, 2023: Options Weighted Average Exercise Price Contractual Life (years) 41,200 $ 1.96 5 5,000 $ 2.73 5 3,400 $ 3.04 5 Total 49,600 $ 2.11 (Avg. Remaining Life) 4.64 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, 2021 206,170 $ 8.90 Cancelled/expired (3,334 ) 9.60 Granted 222,000 4.21 Balance August 31, 2022 424,836 6.45 3.69 $ 5,175 Granted 49,600 2.11 4.64 55,748 Balance February 28, 2023 (granted) 474,436 $ 5.32 3.68 $ 90,938 Balance February 28, 2023 (exercisable) 446,936 $ 5.38 3.68 $ 41,200 The fair value of stock options granted in the six months ended February 28, 2023 were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: Expected volatility 98%-119 % Risk-free interest rate 0.75-4.12 % Expected life 5 years Dividend yield 0 % Estimated fair value per option $1.60 - $2.58 As of February 28, 2023, the total unrecognized non-cash compensation costs are $95,369 related to 27,500 non-vested stock options with a weighted average price of $4.40. These costs are expected to be recognized over a weighted average period of 0.37 years. All non-vested options are attributable to employees.

Commitments Significant Contrac

Commitments Significant Contracts and Contingencies	6 Months Ended
	Feb. 28, 2023
Commitments Significant Contracts and Contingencies
Commitments, Significant Contracts and Contingencies	12. Commitments, Significant Contracts and Contingencies Right of Use Assets - Operating Lease The corporate office and R&D laboratory are located in Kelowna, British Columbia, Canada. The facility 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 other operating costs which are subject to annual adjustments. February 28, 2023 August 31, 2022 Right of use assets - operating leases $ 52,444 $ 91,041 Amortization (20,397 ) (38,597 ) Total lease assets $ 32,047 $ 52,444 Liabilities: $ 49,988 $ 89,393 Lease payments (20,397 ) (44,600 ) Interest accretion (511 ) 5,195 Total lease liabilities $ 29,080 $ 49,988 Operating lease cost $ 32,047 $ 52,444 Operating cash flows for lease $ 20,397 $ 44,599 Remaining lease term 0.59 Years 1.17 Years Discount rate 7.25 % 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 February 28, 2023: 2023 (six months remaining) 22,408 2024 7,469 Thereafter - Total lease payments 29,877 Less: imputed interest (797 ) Present value of operating lease liabilities 29,080 Less: current obligations under leases (29,080 ) Total -

Segment Information

Segment Information	6 Months Ended
	Feb. 28, 2023
Segment Information
Segment Information	13. 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 B2B Products. Licensing revenues are significantly concentrated on one licensee. Six Months Ended February 28, 2023 IP Licensing B2B Corporate Consolidated Total Revenue $ 80,310 $ 30,300 $ 25,881 $ 136,491 Cost of goods sold - (18,753 ) - (18,753 ) Operating expenses (45,758 ) (183,030 ) (2,968,894 ) (3,197,682 ) Segment income (loss) $ 34,552 $ (171,483 ) $ (2,943,013 ) $ (3,079,944 ) Total assets $ 114,546 $ 72,929 $ 4,667,504 $ 4,854,979 Six Months Ended February 28, 2022 IP Licensing B2B Corporate Consolidated Total Revenue $ 16,160 $ 17,512 $ 10,858 $ 44,530 Cost of goods sold - (11,957 ) - (11,957 ) Operating expenses (1,367,712 ) (190,611 ) (1,926,406 ) (3,484,729 ) Segment loss $ (1,351,552 ) $ (185,056 ) $ (1,915,548 ) $ (3,452,156 ) Total assets $ 939,790 $ 87,291 $ 10,387,483 $ 11,414,564 Capital Asset by Region Six Months Ended February 28, 2023 Cost US Addition US Net Balance US Cost Canada Addition Canada Net Balance Canada Total Net Balance Leasehold Improvements $ - $ - $ - $ 259,981 $ - $ 38,277 $ 38,277 Computers - - - 70,781 - 6,991 6,991 Furniture & Fixtures - - - 31,126 - 5,079 5,079 Lab Equipment 140,487 33,748 127,880 193,185 - 123,194 251,074 $ 140,487 $ 33,748 $ 127,880 $ 555,073 $ - $ 173,541 $ 301,421 Capital Asset by Region Year Ended August 31, 2022 Cost US Addition US Net Balance US Cost Canada Addition Canada Net Balance Canada Total Net Balance Leasehold Improvements $ - $ - $ - $ 259,981 $ - $ 65,296 $ 65,296 Computers - - - 63,964 6,817 9,357 9,357 Furniture & Fixtures - - - 31,126 - 8,289 8,289 Lab Equipment 98,050 42,375 100,031 193,185 - 132,533 232,563 $ 98,050 $ 42,375 $ 100,031 $ 548,256 $ 6,817 $ 215,475 $ 315,505

Subsequent Events

Subsequent Events	6 Months Ended
	Feb. 28, 2023
Subsequent Events
Subsequent Events	14. Subsequent Events Subsequent to February 28, 2023, the Company sold 34,652 shares under the ATM Offering for gross proceeds of $114,456 with an average price of $3.30 per share.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Feb. 28, 2023
Significant Accounting Policies
Basis of Consolidation	These interim consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries; Lexaria CanPharm ULC, Lexaria CanPharm Holdings Corp., PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp., and Lexaria Pharmaceutical Corp., and our 83.333% owned subsidiary Lexaria Nicotine LLC with the remaining 16.667% owned by Altria Ventures Inc. an indirect wholly owned subsidiary of Altria Group, Inc. All significant intercompany balances and transactions have been eliminated upon consolidation.
Basis of Presentaion	The Company’s unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. 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 for any subsequent period. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements and notes thereto included in our annual report filed on Form 10-K for the year ended August 31, 2022.
Recent Accounting Guidance	Pronouncements Issued but Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
Estimates and Judgements	The preparation of financial statements in conformity with US GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of the Company’s accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations. The Company reviews these estimates, judgments, and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. Although we believe that these estimates are reasonable, actual results could differ. In preparing these unaudited interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended August 31, 2022.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Feb. 28, 2023
Marketable Securities
Schedule of marketable securities	Cost Basis Unrealized Gains Unrealized Losses Fair Value August 31, 2021 $ 1,037,025 $ 16,243 $ (219,427 ) $ 833,841 Common stock 278,107 118,196 (882,809 ) (486,506 ) August 31, 2022 $ 1,315,132 $ 134,439 $ (1,102,236 ) $ 347,335 Common stock - - (79,631 ) (79,631 ) February 28, 2023 $ 1,315,132 $ 134,439 $ (1,181,867 ) $ 267,704

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Feb. 28, 2023
Accounts Receivables
Schedule of accounts receivables	February 28, August 31, 2023 2022 Trade and deposits $ 69,309 $ 80,374 Territory license fees 16,875 37,248 Sales tax 50,612 84,162 $ 136,796 $ 201,784

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Feb. 28, 2023
Inventory
Schedule of Inventory	February 28, August 31, 2023 2022 Raw materials $ 5,788 $ 38,418 Work in progress 1,800 - $ 7,588 $ 38,418

Prepaid Expenses and Deposits (

Prepaid Expenses and Deposits (Tables)	6 Months Ended
	Feb. 28, 2023
Prepaid Expenses and Deposits
Schedule of Prepaid Expenses and Deposits	February 28, August 31, 2023 2022 Advertising & conferences $ 70,742 $ 359,863 Legal fees 25,000 25,000 License, filing fees, dues 39,167 15,000 Office & insurance 37,995 80,863 Capital financing 146,687 96,035 $ 319,591 $ 576,761

Intellectual Property net (Tabl

Intellectual Property net (Tables)	6 Months Ended
	Feb. 28, 2023
Intellectual Property net
Schedule of patents	February 28, August 31, 2023 2022 Balance – beginning $ 488,462 $ 364,623 Addition 33,778 131,448 Amortization (4,510 ) (7,609 ) Balance – ending $ 517,730 $ 488,462 Patents are amortized over their 20 year legal life.

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Feb. 28, 2023
Property And Equipment
Schedule of property & equipment	Six Months Ended February 28, 2023 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (27,019 ) $ - $ (221,704 ) $ 38,277 Computers 70,781 (2,366 ) - (63,790 ) $ 6,991 Furniture fixtures equipment 31,126 (3,209 ) - (26,047 ) $ 5,079 Lab equipment 333,675 (15,238 ) 33,748 (116,349 ) $ 251,074 $ 695,563 $ (47,832 ) $ 33,748 $ (427,890 ) $ 301,421 Year Ended August 31, 2022 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (54,037 ) $ - $ (194,685 ) $ 65,296 Computers 63,964 (9,874 ) 6,817 (61,424 ) 9,357 Furniture fixtures equipment 31,126 (6,417 ) - (22,837 ) 8,289 Lab equipment 291,235 (31,572 ) 42,375 (101,047 ) 232,563 $ 646,306 $ (101,900 ) $ 49,192 $ (379,993 ) $ 315,505

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Feb. 28, 2023
Accounts Payable and Accrued Liabilities
Schedule of accounts payable and accrued liabilities	February 28, August 31, 2023 2022 Accounts Payable Trades payable $ 167,751 $ 57,150 Sales tax payable 9,652 31,303 Accrued Liabilities Trades payable 12,373 62,996 $ 189,776 $ 151,449

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Feb. 28, 2023
Revenues
Schedule of revenue	Six Months Ended February 28, 2023 2022 IP Licensing $ 80,310 $ 16,160 B2B 30,300 17,512 Other 25,881 10,858 $ 136,491 $ 44,530

Common Shares, Warrants and o_2

Common Shares, Warrants and options (Tables)	6 Months Ended
	Feb. 28, 2023
Common Shares, Warrants and Options
Schedule of Warrants activity	Number of Warrants Weighted Average Exercise Price Balance August 31, 2022 2,421,983 $ 8.04 Cancelled/expired (7,500 ) $ 24.00 Balance February 28, 2023 2,414,483 $ 7.99
Schedule of warrants outstanding	Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) 60,798 $ 36.00 1.71 - 1.75 317,190 $ 10.50 2.19 116,667 $ 9.00 1.13 - 2.05 200,000 $ 7.00 1.13 1,719,828 $ 6.58 2.88 2,414,483 $ 7.99 2.54
Schedule of stock options granted	Options Weighted Average Exercise Price Contractual Life (years) 41,200 $ 1.96 5 5,000 $ 2.73 5 3,400 $ 3.04 5 Total 49,600 $ 2.11 (Avg. Remaining Life) 4.64
Schedule of stock options activity	Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balance August 31, 2021 206,170 $ 8.90 Cancelled/expired (3,334 ) 9.60 Granted 222,000 4.21 Balance August 31, 2022 424,836 6.45 3.69 $ 5,175 Granted 49,600 2.11 4.64 55,748 Balance February 28, 2023 (granted) 474,436 $ 5.32 3.68 $ 90,938 Balance February 28, 2023 (exercisable) 446,936 $ 5.38 3.68 $ 41,200
Schedule of fair value assumptions used to value stock options	Expected volatility 98%-119 % Risk-free interest rate 0.75-4.12 % Expected life 5 years Dividend yield 0 % Estimated fair value per option $1.60 - $2.58

Commitments Significant Contr_2

Commitments Significant Contracts and Contingencies (Tables)	6 Months Ended
	Feb. 28, 2023
Commitments Significant Contracts and Contingencies
Schedule of operating lease liabilities	February 28, 2023 August 31, 2022 Right of use assets - operating leases $ 52,444 $ 91,041 Amortization (20,397 ) (38,597 ) Total lease assets $ 32,047 $ 52,444 Liabilities: $ 49,988 $ 89,393 Lease payments (20,397 ) (44,600 ) Interest accretion (511 ) 5,195 Total lease liabilities $ 29,080 $ 49,988 Operating lease cost $ 32,047 $ 52,444 Operating cash flows for lease $ 20,397 $ 44,599 Remaining lease term 0.59 Years 1.17 Years Discount rate 7.25 % 7.25 %
Schedule of maturities of operating lease liabilities	2023 (six months remaining) 22,408 2024 7,469 Thereafter - Total lease payments 29,877 Less: imputed interest (797 ) Present value of operating lease liabilities 29,080 Less: current obligations under leases (29,080 ) Total -

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Feb. 28, 2023
Segment Information
Schedule of segment information by category	Six Months Ended February 28, 2023 IP Licensing B2B Corporate Consolidated Total Revenue $ 80,310 $ 30,300 $ 25,881 $ 136,491 Cost of goods sold - (18,753 ) - (18,753 ) Operating expenses (45,758 ) (183,030 ) (2,968,894 ) (3,197,682 ) Segment income (loss) $ 34,552 $ (171,483 ) $ (2,943,013 ) $ (3,079,944 ) Total assets $ 114,546 $ 72,929 $ 4,667,504 $ 4,854,979 Six Months Ended February 28, 2022 IP Licensing B2B Corporate Consolidated Total Revenue $ 16,160 $ 17,512 $ 10,858 $ 44,530 Cost of goods sold - (11,957 ) - (11,957 ) Operating expenses (1,367,712 ) (190,611 ) (1,926,406 ) (3,484,729 ) Segment loss $ (1,351,552 ) $ (185,056 ) $ (1,915,548 ) $ (3,452,156 ) Total assets $ 939,790 $ 87,291 $ 10,387,483 $ 11,414,564
Schedule of capital asset by region	Capital Asset by Region Six Months Ended February 28, 2023 Cost US Addition US Net Balance US Cost Canada Addition Canada Net Balance Canada Total Net Balance Leasehold Improvements $ - $ - $ - $ 259,981 $ - $ 38,277 $ 38,277 Computers - - - 70,781 - 6,991 6,991 Furniture & Fixtures - - - 31,126 - 5,079 5,079 Lab Equipment 140,487 33,748 127,880 193,185 - 123,194 251,074 $ 140,487 $ 33,748 $ 127,880 $ 555,073 $ - $ 173,541 $ 301,421 Capital Asset by Region Year Ended August 31, 2022 Cost US Addition US Net Balance US Cost Canada Addition Canada Net Balance Canada Total Net Balance Leasehold Improvements $ - $ - $ - $ 259,981 $ - $ 65,296 $ 65,296 Computers - - - 63,964 6,817 9,357 9,357 Furniture & Fixtures - - - 31,126 - 8,289 8,289 Lab Equipment 98,050 42,375 100,031 193,185 - 132,533 232,563 $ 98,050 $ 42,375 $ 100,031 $ 548,256 $ 6,817 $ 215,475 $ 315,505

Nature of Business (Detail Narr

Nature of Business (Detail Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Net loss attributable to shareholders	$ (1,310,638)	$ (1,448,673)	$ (3,079,944)	$ (3,452,155)
Accumulated deficit	(42,152,603)		(42,152,603)		$ (39,098,528)
Emergency Business Account Loan Program [Member]
Net loss attributable to shareholders					$ (7,400,000)	$ (4,200,000)	$ (4,100,000)
Accumulated deficit	$ (42,200,000)		$ (42,200,000)

Significant Accounting Polici_3

Significant Accounting Policies (Detail Narrative)	Feb. 28, 2023
Lexaria Nicotine L L C
Equity interest percentage	83.333%
Altria Ventures Inc
Equity interest percentage	16.66%

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 31, 2022	Aug. 31, 2021
Cost Basis	$ 1,315,132	$ 1,315,132	$ 1,037,025
Unrealized Gains	134,439	134,439	16,243
Unrealized Losses	(1,181,867)	(1,102,236)	(219,427)
Fair Value	$ 267,704	347,335	833,841
Common Stock [Member]
Cost Basis		0	278,107
Unrealized Gains		0	118,196
Unrealized Losses		(79,631)	(882,809)
Fair Value		$ (79,631)	$ (486,506)

Accounts Receivables (Details)

Accounts Receivables (Details) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Account receivable	$ 136,796	$ 201,784
Trade and deposits [Member]
Account receivable	69,309	80,374
Territory license fee [Member]
Account receivable	16,875	37,248
Sales tax [Member]
Account receivable	$ 50,612	$ 84,162

Inventory (Details)

Inventory (Details) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Inventory
Raw materials	$ 5,788	$ 38,418
Work in progress	1,800	0
Inventory, Net	$ 7,588	$ 38,418

Inventory (Details Narrative)

Inventory (Details Narrative) - USD ($)	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Inventory
Inventory value	$ 29,391	$ 25,243

Prepaid Expenses and Deposits_2

Prepaid Expenses and Deposits (Details) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Prepaid Expenses and Deposits
Advertising and Conferences	$ 70,742	$ 359,863
Legal fees	25,000	25,000
Licence, filing fees, dues	39,167	15,000
Office and insurance	37,995	80,863
Capital Financing	146,687	96,035
Prepaid expenses	$ 319,591	$ 576,761

Intellectual Property net (Deta

Intellectual Property net (Details)	6 Months Ended
	Feb. 28, 2023
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
Patent ten [Member]
Issued patent	US 11,311,559
Patent certificate grant date Descriptions	04/26/2022

Intellectual Property net (De_2

Intellectual Property net (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 30, 2022
Intellectual Property net
Balance- beginning	$ 488,462	$ 364,623
Addition	33,778	131,448
Amortization	(4,510)	(7,609)
Balance - ending	$ 517,730	$ 488,462

Intellectual Property net (De_3

Intellectual Property net (Details Narrative)	6 Months Ended
	Feb. 28, 2023
Intellectual Property net
Useful life of patents	20 years

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 31, 2022
Costs	$ 695,563	$ 646,306
Additions	33,748	49,192
Accumulated amortization	(427,890)	(379,993)
Balance-end of the period	301,421	315,505
Period Amortization [Member]
Accumulated amortization	(47,832)	(101,900)
Leasehold Improvements [Member]
Costs	259,981	259,981
Additions	0	0
Accumulated amortization	(221,704)	(194,685)
Balance-end of the period	38,277	65,296
Leasehold Improvements [Member] | Period Amortization [Member]
Accumulated amortization	(27,019)	(54,037)
Computer [Member]
Costs	70,781	63,964
Additions	0	6,817
Accumulated amortization	(63,790)	(61,424)
Balance-end of the period	6,991	9,357
Computer [Member] | Period Amortization [Member]
Accumulated amortization	(2,366)	(9,874)
Furniture Fixtures Equipment [Member]
Costs	31,126	31,126
Additions	0	0
Accumulated amortization	(26,047)	(22,837)
Balance-end of the period	5,079	8,289
Furniture Fixtures Equipment [Member] | Period Amortization [Member]
Accumulated amortization	(3,209)	(6,417)
Lab Equipment [Member]
Costs	333,675	291,235
Additions	33,748	42,375
Accumulated amortization	(116,349)	(101,047)
Balance-end of the period	251,074	232,563
Lab Equipment [Member] | Period Amortization [Member]
Accumulated amortization	$ (15,238)	$ (31,572)

Property And Equipment (Detai_2

Property And Equipment (Details Narrative)	6 Months Ended
	Feb. 28, 2023 USD ($)
Property And Equipment
Amortization	$ 2,883

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Details) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Accounts payable and accrued liabilities	$ 189,776	$ 151,449
Accrued Liabilities [Member]
Trades payable	12,373	62,996
Accounts Payable [Member]
Trades payable	167,751	57,150
Sales tax payable	$ 9,652	$ 31,303

Revenues (Details)

Revenues (Details) - USD ($)	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Income from operations	$ 136,491	$ 44,530
Licensing [Member]
Income from operations	80,310	16,160
Other [Member]
Income from operations	25,881	10,858
B2B [Member]
Income from operations	$ 30,300	$ 17,512

Revenues (Details Narrative)

Revenues (Details Narrative) - USD ($)	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Revenues
Product revenues	$ 30,300,000	$ 17,512,000
licensing usage	$ 80,310,000	$ 16,160

Common Shares, Warrants and O_3

Common Shares, Warrants and Options (Details)	6 Months Ended
	Feb. 28, 2023 $ / shares shares
Common Shares, Warrants and Options
Number of Warrants, Beginning Balance | shares	2,421,983
Number of Warrants, Cancelled/Expired | shares	(7,500)
Number of Warrants, Ending Balance | shares	2,414,483
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 8.04
Weighted Average Exercise Price, Cancelled/Expired | $ / shares	24
Weighted Average Exercise Price, Ending Balances | $ / shares	$ 7.99

Common Shares, Warrants and O_4

Common Shares, Warrants and Options (Details 1) - $ / shares	6 Months Ended
	Feb. 28, 2023	Aug. 31, 2022
Number of Warrants	2,414,483	2,421,983
Weighted Average Exercise Price	$ 7.99
Weighted Average Remaining Contractual Life	2 years 6 months 14 days
Warrants 1
Number of Warrants	60,798
Weighted Average Exercise Price	$ 36
Warrants 1 | Minimum
Weighted Average Remaining Contractual Life	1 year 8 months 15 days
Warrants 1 | Maximum
Weighted Average Remaining Contractual Life	1 year 9 months
Warrants 2
Number of Warrants	317,190
Weighted Average Exercise Price	$ 10.50
Weighted Average Remaining Contractual Life	2 years 2 months 8 days
Warrants 3
Number of Warrants	116,667
Weighted Average Exercise Price	$ 9
Warrants 3 | Minimum
Weighted Average Remaining Contractual Life	1 year 1 month 17 days
Warrants 3 | Maximum
Weighted Average Remaining Contractual Life	2 years 18 days
Warrants 4
Number of Warrants	200,000
Weighted Average Exercise Price	$ 7
Weighted Average Remaining Contractual Life	1 year 1 month 17 days
Warrants 5
Number of Warrants	1,719,828
Weighted Average Exercise Price	$ 6.58
Weighted Average Remaining Contractual Life	2 years 10 months 17 days

Common Shares, Warrants and O_5

Common Shares, Warrants and Options (Details 2) - $ / shares	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 31, 2022
Exercise price	$ 2.11	$ 4.21
Life (Years)	4 years 7 months 20 days
Quantity	49,600
Stock Options 1
Exercise price	$ 1.96
Life (Years)	5 years
Quantity	41,200
Stock Options 2
Exercise price	$ 2.73
Life (Years)	5 years
Quantity	5,000
Stock Options 3
Exercise price	$ 3.04
Life (Years)	5 years
Quantity	3,400

Common Shares, Warrants and O_6

Common Shares, Warrants and Options (Details 3) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 31, 2022
Common Shares, Warrants and Options
Beginning Balance, Outstanding	424,836	206,170
Expired/Cancelled		(3,334)
Granted	49,600	222,000
Ending Balance, Outstanding	474,436	424,836
Ending Balance, Exercisable	446,936
Weighted average exercise price, Beginning Balance, Outstanding	$ 6.45	$ 8.90
Weighted average exercise price, Expired/Cancelled		9.60
Weighted average exercise price, Granted	2.11	4.21
Weighted average exercise price, Ending Balance, Outstanding	$ 5.32	$ 6.45
Weighted Average Remaining Contractual Term, Outstanding (Years)	3 years 8 months 8 days
Weighted Average Remaining Contractual Term, Granted (Years)	4 years 7 months 20 days
Weighted Average Remaining Contractual Term, Ending (Years)	3 years 8 months 4 days
Weighted Average Remaining Contractual Term, Exercisable (Years)	3 years 8 months 4 days
Weighted average exercise price, Balance, Exercisable	$ 5.38
Aggregate intrinsic value, granted	$ 55,748
Aggregate Intrinsic Value, Exercisable	41,200
Aggregate Intrinsic Value, Beginning	$ 5,175
Aggregate Intrinsic Value, Outstanding		$ 90,938

Common Shares, Warrants and O_7

Common Shares, Warrants and Options (Details 4)	6 Months Ended
	Feb. 28, 2023 $ / shares
Common Shares, Warrants and Options
Expected volatility Minimum	98%
Expected volatility Maximum	119%
Risk-free interest rate Minimum	0.75%
Risk-free interest rate Maximum	4.12%
Expected life	5 years
Dividend yield	0%
Estimated fair value per option Minimum	$ 1.60
Estimated fair value per option Maximum	$ 2.58

Common Shares, Warrants and O_8

Common Shares, Warrants and Options (Detail Narrative)	6 Months Ended
	Feb. 28, 2023 USD ($) $ / shares shares
Common Shares, Warrants and Options
Number of stock options, granted	510,433
Description of incentives plan	The Company has established an Equity Incentive Plan whereby the board of directors may grant up to 510,433 stock options to directors, officers, employees, and consultants
Unrecognized non-cash compensation costs | $	$ 95,369
Non-vested stock options	27,500
Option strike price | $ / shares	$ 4.40
Weighted Average Remaining Contractual Life	4 months 13 days

Commitments Significant Contr_3

Commitments Significant Contracts and Contingencies (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2023	Aug. 31, 2022
Commitments Significant Contracts and Contingencies
Right of use assets - operating leases	$ 52,444	$ 91,041
Amortization	(20,397)	(38,597)
Total lease assets	32,047	52,444
Liabilities operating lease	49,988	89,393
Lease payments	(20,397)	(44,600)
Interest accretion	(511)	5,195
Total lease liabilities	29,080	49,988
Operating lease cost	32,047	52,444
Operating cash flows for lease	$ 20,397	$ 44,599
Remaining lease term	7 months 2 days	1 year 2 months 1 day
Discount rate	7.25%	7.25%

Commitments Significant Contr_4

Commitments Significant Contracts and Contingencies (Details 1)	Feb. 28, 2023 USD ($)
Commitments Significant Contracts and Contingencies
2023 (nine months remaining)	$ 22,408
2024	7,469
Thereafter	0
Total lease payments	29,877
Less: imputed interest	(797)
Present value of operating lease liabilities	29,080
Less: current obligations under leases	$ 29,080

Segment Information (Details)

Segment Information (Details) - USD ($)	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2022
Revenue	$ 136,491	$ 44,530
Cost of goods sold	(18,753)	(11,957)
Cost of goods sold	18,753	11,957
Operating expense	(3,197,682)	(3,484,729)
Segment income (loss)	(3,079,944)	(3,452,156)
Total assets	4,854,979	11,414,564	$ 7,833,927
IP Licensing
Revenue	80,310	16,160
Cost of goods sold	0	0
Cost of goods sold	0	0
Operating expense	(45,758)	(1,367,712)
Segment income (loss)	34,552	(1,351,552)
Total assets	114,546	939,790
Corporate
Revenue	25,881	10,858
Cost of goods sold	0	0
Cost of goods sold	0	0
Operating expense	(2,968,894)	(1,926,406)
Segment income (loss)	(2,943,013)	(1,915,548)
Total assets	4,667,504	10,387,483
B2B [Member]
Revenue	30,300	17,512
Cost of goods sold	(18,753)	(11,957)
Cost of goods sold	18,753	11,957
Operating expense	(183,030)	(190,611)
Segment income (loss)	(171,483)	(185,056)
Total assets	$ 72,929	$ 87,291

Segment Information (Details 1)

Segment Information (Details 1) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Net Balance	$ 301,421	$ 315,505
US [Member]
Net Balance	127,880	100,031
Cost	140,487	98,050
Addition	33,748	42,375
Leasehold Improvements [Member]
Net Balance	38,277	65,296
Leasehold Improvements [Member] | US [Member]
Net Balance	0	0
Cost	0	0
Addition	0	0
Furniture Fixtures Equipment [Member]
Net Balance	5,079	8,289
Furniture Fixtures Equipment [Member] | US [Member]
Net Balance	0	0
Cost	0	0
Addition	0	0
Lab Equipment [Member]
Net Balance	251,074	232,563
Lab Equipment [Member] | US [Member]
Net Balance	127,880	100,031
Cost	140,487	98,050
Addition	33,748	42,375
Computer Equipment [Member]
Net Balance	6,991	9,357
Computer Equipment [Member] | US [Member]
Net Balance	0	0
Cost	0	0
Addition	0	0
Canada [Member]
Net Balance	173,541	215,475
Cost	555,073	548,256
Addition	0	6,817
Canada [Member] | Leasehold Improvements [Member]
Net Balance	38,277	65,296
Cost	259,981	259,981
Addition	0	0
Canada [Member] | Furniture Fixtures Equipment [Member]
Net Balance	5,079	8,289
Cost	31,126	31,126
Addition	0	0
Canada [Member] | Lab Equipment [Member]
Net Balance	123,194	132,533
Cost	193,185	193,185
Addition	0	0
Canada [Member] | Computer Equipment [Member]
Net Balance	6,991	9,357
Cost	70,781	63,964
Addition	$ 0	$ 6,817

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Gross proceeds		$ 32,057	$ 24,263	$ 117,738	$ 32,573
ATM Offering [Member]
Shares sold	34,652
Average price	$ 3.30	$ 3.30		$ 3.30
Gross proceeds	$ 114,456