Lexaria Bioscience (LEXX) 10-K 26 Nov 24 2024 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Aug. 31, 2024	Nov. 25, 2024	Feb. 29, 2024
Cover [Abstract]
Entity Registrant Name	Lexaria Bioscience Corp
Entity Central Index Key	0001348362
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--08-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Aug. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		17,452,594
Entity Public Float			$ 40,603,170
Document Annual Report	true
Document Transition Report	false
Document Fin Stmt Error Correction Flag	false
Entity File Number	000-39874
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
Entity Address Postal Zip Code	V1X 2P7
City Area Code	250
Icfr Auditor Attestation Flag	false
Auditor Name	MaloneBailey, LLP
Auditor Location	Houston, Texas
Auditor Firm Id	206
Local Phone Number	765-6424
Entity Interactive Data Current	Yes
Security 12b Title	Common Stock, Par Value $0.001
Trading Symbol	LEXX
Security Exchange Name	NASDAQ

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Current
Cash	$ 6,499,885	$ 1,352,102
Marketable securities	55,807	125,642
Accounts receivable	154,477	126,686
Prepaid expenses and other current assets	1,187,817	546,783
Total Current Assets	7,897,986	2,151,213
Non-current assets, net
Long-term receivables	63,575	48,559
Right of use assets	134,843	167,446
Property & equipment, net	254,709	254,143
Intellectual property, net	516,676	462,625
Total Non-current assets	969,803	932,773
TOTAL ASSETS	8,867,789	3,083,986
Current Liabilities
Accounts payable and accrued liabilities	1,066,409	239,941
Deferred revenue	4,963	0
Lease liability, current	28,047	27,794
Total Current Liabilities	1,099,419	267,735
Lease liability, non-current	109,319	136,173
TOTAL LIABILITIES	1,208,738	403,908
Stockholders' Equity
Share Capital Authorized: 220,000,000 common voting shares with a par value of $0.001 per share Common shares issued and outstanding: 15,810,205 and 8,091,650 at August 31, 2024, and August 31, 2023, respectively	15,810	8,091
Additional paid-in capital	59,599,178	48,799,454
Accumulated Deficit	(51,558,772)	(45,763,427)
Accumulated other comprehensive loss	(19,816)	0
Equity attributable to shareholders of Lexaria	8,036,400	3,044,118
Non-controlling Interest	(377,349)	(364,040)
Total Stockholders' Equity	7,659,051	2,680,078
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,867,789	$ 3,083,986

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2024	Aug. 31, 2023
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	15,810,205	8,091,650
Common stock, shares, outstanding	15,810,205	8,091,650

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenue	$ 464,278	$ 226,208
Cost of goods sold	4,822	31,500
Gross profit	459,456	194,708
Operating expenses
Research and development	2,360,565	3,666,721
General and administrative	3,852,021	3,062,009
Total operating expenses	6,212,586	6,728,730
Loss from operations	(5,753,130)	(6,534,022)
Other income (loss)
Interest income	14,311	43,190
Unrealized loss on marketable securities	(69,835)	(221,693)
Total other income (loss)	(55,524)	(178,503)
Net loss	(5,808,654)	(6,712,525)
Less: Net loss attributable to non-controlling interest	(13,309)	(47,626)
Net loss attributable to Lexaria shareholders	(5,795,345)	(6,664,899)
Other comprehensive income
Foreign currency translation adjustment	(19,816)	0
Total comprehensive loss	$ (5,815,161)	$ (6,664,899)
Basic and diluted loss per share	$ (0.47)	$ (1.01)
Weighted average number of common shares outstanding
- Basic and diluted	12,383,974	6,614,066

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Cash flows used in operating activities
Net loss	$ (5,808,654)	$ (6,712,525)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	492,236	170,382
Depreciation and amortization	76,153	145,397
Impairment loss	57,836	106,761
Bad debt expense	7,760	0
Noncash lease expense	32,603	41,564
Unrealized loss on marketable securities	69,835	221,693
Lease accretion	6,672	2,227
Change in operating assets and liabilities
Accounts receivable	(35,551)	26,539
Inventory	0	43,069
Prepaid expenses and deposits	(641,034)	29,978
Long-term receivables	(15,016)	0
Accounts payable and accrued liabilities	826,468	88,492
Operating lease liability	(33,273)	(44,814)
Deferred revenue	4,962	0
Net cash used in operating activities	(4,959,003)	(5,881,237)
Cash flows used in investing activities
Intellectual property	(145,591)	(135,862)
Purchase of equipment	(43,014)	(33,748)
Net cash used in investing activities	(188,605)	(169,610)
Cash flows from financing activities
Proceeds from exercise of stock options	2,875	0
Proceeds from sale of common shares for cash	4,208,731	1,589,731
Proceeds from exercise of warrants	6,103,601	0
Net cash from financing activities	10,315,207	1,589,731
Effect of exchange rate changes on cash	(19,816)	0
Net change in cash for the period	5,147,783	(4,461,116)
Cash at beginning of period	1,352,102	5,813,218
Cash at end of period	6,499,885	1,352,102
Supplemental information of cash flows:
Income taxes paid in cash	10,042	8,214
Remeasurement of operating lease right of use assets and liabilities	$ 0	$ 156,566

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated other comprehensive loss	Deficit	Non-controlling Interest
Balance, shares at Aug. 31, 2022		5,950,998
Balance, amount at Aug. 31, 2022	$ 7,632,490	$ 5,951	$ 47,041,481	$ 0	$ (39,098,528)	$ (316,414)
Shares sold for cash, shares		2,140,652
Shares sold for cash, amount	1,589,731	$ 2,140	1,587,591	0	0	0
Stock based compensation	170,382	0	170,382	0	0	0
Net loss	(6,664,899)	0	0	0	(6,664,899)	0
Non-controlling interest	(47,626)	$ 0	0	0	0	(47,626)
Balance, shares at Aug. 31, 2023		8,091,650
Balance, amount at Aug. 31, 2023	2,680,078	$ 8,091	48,799,454	0	(45,763,427)	(364,040)
Shares sold for cash, shares		2,334,013
Shares sold for cash, amount	4,208,731	$ 2,334	4,206,397	0	0	0
Stock based compensation	492,236		492,236	0	0	0
Net loss	(5,795,345)				(5,795,345)
Non-controlling interest	(13,309)					(13,309)
Shares issued from exercise of warrants, shares		5,382,042
Shares issued from exercise of warrants, amount	6,103,601	$ 5,382	6,098,219	0	0	0
Shares issued from exercise of options, shares		2,500
Shares issued from exercise of options, amount	2,875	$ 3	2,872	0	0	0
Foreign cvurrency translation loss	(19,816)			(19,816)
Balance, shares at Aug. 31, 2024		15,810,205
Balance, amount at Aug. 31, 2024	$ 7,659,051	$ 15,810	$ 59,599,178	$ (19,816)	$ (51,558,772)	$ (377,349)

Nature of Business

Nature of Business	12 Months Ended
	Aug. 31, 2024
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 our proprietary DehydraTECH drug delivery technology. Our current focus is the investigation of the incorporation of our DehydraTECH drug delivery technology with GLP-1 and GIP drugs to enhance absorption and reduce adverse side effects. Revenues are generated from licensing contracts for the Company’s patented DehydraTECH technology based on the terms of use and defined geographic and licensing arrangements. We derive income from our third party contracted manufacturing of B2B DehydraTECH enhanced products made to customer specifications that are sold online and in-store in the US and Canada. We also perform contract services in R&D for customer specific formulations that are used in comparison testing to customers’ existing products. Liquidity 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 meet its financial obligations for a period of at least 12 months from the date of this report. Since inception, the Company has incurred significant operating and net losses. The losses attributable to shareholders were $5.8 million and $6.7 million, for the years ended August 31, 2024 and 2023, respectively. As of August 31, 2024, we had an accumulated deficit of $51.6 million. 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. During the year ended August 31, 2024, we raised an approximate aggregate $10.3 million in net proceeds from the sale of securities pursuant to our equity financings from October 3, 2023, February 14, 2024 and April 30, 2024 and from the exercise of warrants. Subsequent to August 31, 2024, we raised an additional $4.5 million in net proceeds in a registered direct offering. We may offer additional securities for sale during our fiscal year 2025 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 existing cash resources, management believes that current funding will be sufficient to meet the Company’s financial obligations for a period of at least twelve months from the date of this report.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Aug. 31, 2024
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Basis of presentation and consolidation These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States (“US GAAP”) and pursuant to the rules and regulations of the SEC. All amounts, unless otherwise stated, are in U.S. dollars. These consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries: Lexaria Pharmaceutical Corp., Lexaria Hemp Corp., Lexaria CanPharm ULC, Lexaria Nutraceutical Corp., Poviva Corp., Lexaria CanPharm Holding Corp., Lexaria (AU) Pty Ltd and Kelowna Management Services Corp. The Company owns 83.3% of Lexaria Nicotine LLC and the remaining 16.7% is 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. Cash and cash equivalents Cash and cash equivalents include cash-on-hand and demand deposits with financial institutions and other short-term investments with maturities of less than three months when acquired and readily convertible to known cash amounts. The Company had no cash equivalents as of August 31, 2024 or August 31, 2023. Marketable Securities The Company’s marketable securities consist of investments in common stock. Investments in equity securities are reported at fair value with changes in unrecognized gains or losses included in other income (loss) on the Consolidated Statements of Operations and Comprehensive Loss. Leases The Company accounts for its leases under ASC 842, Leases (“ASC 842”). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right of use asset and lease liability. We determined the initial classification and measurement of our right-of-use assets and lease liabilities at the lease commencement date and thereafter if modified. The lease term includes any renewal options and termination options that we are reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, we use our incremental borrowing rate. The incremental borrowing rate is determined by using the rate of interest that we would pay to borrow on a collateralized basis, an amount equal to the lease payments for a similar term and in a similar economic environment. Operating lease expenses are recognized on a straight-line basis, unless the right-of-use asset has been impaired, over the reasonably certain lease term based on the total lease payments. They are included in operating expenses in the Consolidated Statements of Operations and Comprehensive Loss. For operating leases that reflect impairment, we will recognize the amortization of the right-of-use asset on a straight-line basis over the remaining lease term with rent expense still included in operating expenses in the Consolidated Statements of Operations and Comprehensive Loss. For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of lease assets and lease liabilities at the lease commencement date. We have elected the practical expedient to not separate lease and non-lease components. Our non-lease components are primarily related to property taxes and maintenance, which vary based on future outcomes, and thus differences to original estimates are recognized in rent expense when incurred. Intellectual property Capitalized intellectual property costs include those incurred with respect to both pending and granted patents filed in the United States. When patent applications are filed, the directly related capitalized costs are amortized on a straight-line basis over an estimated economic life of 20 years. Property and equipment Property and equipment is stated at cost less accumulated depreciation and impairment and depreciated using the straight-line method over the useful lives of the various asset classes. Laboratory and computer equipment and office furniture are depreciated over periods ranging from 3 to 10 years. Certain production equipment is depreciated by units of production method. Leasehold improvements are amortized over the term of the related leases, or the economic life of the improvements, whichever is shorter. Impairment of long-lived assets Long-lived assets, including equipment and intangible assets, namely the Company’s patents, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to profit or loss. Intangible assets with indefinite lives are tested for impairment annually and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. Revenue recognition The Company recognizes revenue in accordance with ASC 606’s core principle by applying the following five steps: 1. Identify contracts with customers 2. Identify the performance obligations in the contracts 3. Determine the contract price 4. Allocate the contract price 5. Recognize revenue when/as performance obligations are satisfied Licensing revenue from intellectual property Our revenues from licenses that grant exclusive rights to use our intellectual property, which we consider functional IP, are recognized at a point in time following the transfer and use of our patented infusion technology DehydraTECH. Our licensees are also required to pay quarterly fixed non-refundable minimum performance fees which are recognized as revenue over the period to which they apply. Usage fees from intellectual property The Company may also earn sales-based or usage-based royalties from its licensing contracts. The Company recognizes usage fees in the period when our licensees recognize sales of end-products that incorporate our licensed technology. No sales-based usage fees were recognized for the years ended August 31, 2024 and 2023. Third Party Contracted Manufacturing The Company recognizes revenue with respect to contract manufacturing arrangements when the related performance obligations have been satisfied (i.e., when it has completed the related manufacturing work) and in accordance with the five steps described in the ASC 606. Contract Research and Development The Company recognizes revenue from contract research and development arrangements when the related performance obligations have been satisfied and in accordance with the five steps described in ASC 606. The related performance obligation typically entails preparation of customer-specific formulations (i.e., DehydraTECH paired with the customer’s active ingredient) that the customer then uses in comparison testing relative to its existing product(s). Revenue is recognized upon shipment of the formulation to the customer. Cost of sales Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. This includes third-party manufacturing and handling costs, direct costs of the raw material, inbound freight charges, warehousing costs, and applicable overhead expenses. Research and development Research and development costs are expensed as incurred. These expenditures are comprised of both in-house research programs and through third-party contracts including consultants, academic and non-profit institutions, contract manufacturing, and other expenses. Intellectual property expenses Non-capitalizable costs associated with intellectual property-related matters are expensed as incurred and included in general and administrative expenses within the Consolidated Statements of Operations and Comprehensive Loss. Stock-based compensation The Company accounts for its stock-based compensation awards whereby all stock-based grants are recognized as expenses in the Consolidated Statements of Operations and Comprehensive Loss based on the fair value at grant date subject to vesting dates and amortized over the related vesting period. The grant date fair value of each option award is estimated using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected term of the option, risk-free interest rates and expected dividend yields of the common stock. Foreign currency translation The Company’s reporting currency is the U.S. dollar. The Company has foreign operations whose functional currency is the local currency. Assets and liabilities are translated into U.S. dollars, the reporting currency, at the exchange rate on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the average rates of exchange prevailing during the reporting period. Foreign currency translation adjustments resulting from this process are reported as an element of other comprehensive income (loss) on the consolidated statements of operations and comprehensive loss. Transactions executed in different currencies are translated at spot rates and resulting foreign exchange transaction gains and losses are charged to income. Loss per share The calculation of loss per share uses the weighted average number of shares outstanding during the year. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as restricted stock, stock options, and warrants, which would result in the issuance of incremental shares of common stock. Diluted loss per share is equivalent to basic loss per share if the potential exercise of the equity-based financial instruments is anti-dilutive. Income taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets to an amount whose realization is more likely than not. Fair Value Measurements When measuring fair value, the Company seeks to maximize the use of observable inputs and minimize the use of unobservable inputs. This establishes a fair value hierarchy based on the level of independent objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Inputs are prioritized into three levels used to measure fair value: · Level 1 - Quoted prices in active markets for identical assets or liabilities; · Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and · Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Company’s financial instruments consist primarily of cash, marketable securities, accounts receivable and payable, and accrued liabilities. The carrying amounts of instruments approximate their fair values due to their short maturities or quoted market prices. The Company’s headquarters and operations are located in Canada which results in exposure to market risks from fluctuations in foreign currency rates. The foreign currency exchange risk is the financial risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk as the impact of rate changes for USD/CAD dollars is not expected to be material. The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of August 31, 2024. Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 55,807 $ 55,807 $ - $ - $ 55,807 The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of August 31, 2023. Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 125,642 $ 125,642 $ - $ - $ 125,642 Credit risk and customer concentration The Company places its cash with a high credit quality financial institution. Periodically, the Company may carry cash balances at such financial institution in excess of the federally insured limit of $250,000. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institution, that the credit risk with regard to these deposits is not significant. In the year ended August 31, 2024, two customers accounted for 99% of consolidated revenues, whereas for the year ended August 31,2023, four customers accounted for 95% of consolidated revenue. At fiscal year-end 2024, we had $84,000 in license fees receivable, compared to $24,635 as of August 31, 2023. The Company recognized bad debt expense of $7,760 and $0 for the years ended August 31, 2024 and August 31, 2023, respectively. As of August 31, 2024, the Company had $70,477 in sales tax receivable, compared to $102,051 as of August 31, 2023. The Company considers its credit risk to be low for such receivables. Commitments and contingencies Reclassifications Certain amounts in the prior period have been reclassified to conform with current period presentation.

Recent Accounting Guidance

Recent Accounting Guidance	12 Months Ended
	Aug. 31, 2024
Recent Accounting Guidance
Recent Accounting Guidance	3. Recent Accounting Guidance Recently Adopted Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)) – Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU also expands disclosure requirements to enable users of financial statements to better understand the entity’s measurement and assessment of segment performance and resource allocation. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the effect of this ASU on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-02-Codification Improvements-Amendments to Remove References to the Concepts Statements, that contains amendments to the Codification that remove references to various FASB Concepts Statements. This effort facilitates Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance, and other minor improvements. The amendments are effective for public business entities for fiscal years beginning after December 15, 2024, with early adoption permitted. Early application of the amendments in this ASU is permitted for all entities, for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The Company is currently assessing the effect of this ASU on its consolidated financial statements and related disclosures.

Estimates and Judgments

Estimates and Judgments	12 Months Ended
	Aug. 31, 2024
Estimates and Judgments
Estimates and Judgments	4. 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 amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses during the fiscal 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. Management reviews our estimates, judgments, and assumptions periodically and reflects the effects of any revisions in the period in which they are deemed to be necessary. We believe that these estimates are reasonable. However, actual results could differ from these estimates. Significant accounting estimates and assumptions are used for, but not limited to: The Valuation of Deferred Tax Assets Judgment is required in determining whether deferred tax assets are recognized on the balance sheet. The recognition of deferred tax assets requires management to assess the likelihood that the Company will generate taxable income in future periods to utilize the deferred tax assets. Due to the Company’s history of losses, valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Value of Stock Options and Warrants The Company provides compensation benefits to its employees, officers, directors, and consultants, through a stock option plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility assumptions used in the model are based on the historical volatility of the Company’s share price. The Company uses historical data to estimate the period of option exercises for use in the valuation model. The risk-free interest rate for the expected term of the option is based on the yields of government bonds. Changes in these assumptions, especially the share price volatility and the expected term determination could have a material impact on the Company’s profit and loss for the years presented. All estimates used in the model are based on historical data, which may not be representative of future results. Disposals of Assets - Value of Note Receivable The Asset Purchase Agreement for the sale of assets to Hill Inc. included C$2 million note (the “Note”) receivable as partial payment of the agreement. The Note does not contain a fixed repayment schedule nor a maturity date. The repayment of the Note is based on the purchaser repaying the outstanding value of the Note and interest from the future revenues generated from an untested market with no existing revenue streams. Therefore, with any repayment being highly doubtful, management determined at that time and as of August 31, 2024 and 2023 that the value of the note to be notional and recorded the note at a zero value for accounting purposes. During fiscal 2024, we received interest income on the note totalling $14,117. Hill Inc. continues to operate and make ongoing interest payments to us in relation to this Note. Impairment of Long-Lived Assets The Company evaluated its patent portfolio and determined that certain pending applications had been abandoned or would not be pursued. As such, during the year ended August 31, 2024, the Company recognized an impairment loss of $57,836 related to those abandoned applications.

Accounts and Other Receivables

Accounts and Other Receivables	12 Months Ended
	Aug. 31, 2024
Accounts and Other Receivables
Accounts and Other Receivables	5. Accounts and Other Receivables Accounts receivable at August 31, 2024 and August 31, 2023 consist of the following: August 31, August 31, 2024 2023 Territory license fees $ 84,000 $ 24,635 Sales tax 70,477 102,051 Long term receivable 63,575 48,559 Total Receivables $ 218,052 $ 175,245

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Aug. 31, 2024
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	6. Prepaid Expenses and Other Current Assets Prepaid expenses consist of the following at August 31, 2024 and August 31, 2023: August 31, August 31, 2024 2023 Advertising & Conferences $ 204,894 $ 40,342 Research and Development 673,126 - Consulting - 331,811 Legal & Accounting Fees 45,600 36,795 License, Filing Fees, Dues 22,925 15,668 Office & Insurance 122,245 97,167 Capital Financing 119,027 25,000 Total Prepaid Expenses and Other Current Assets $ 1,187,817 $ 546,783

Intellectual Property, net

Intellectual Property, net	12 Months Ended
	Aug. 31, 2024
Intellectual Property, net
Intellectual Property. net	7. Intellectual Property, net A continuity schedule for capitalized patents is presented below: August 31, August 31, 2024 2023 Balance – beginning $ 462,625 $ 488,462 Addition 145,591 135,862 Impairment (57,836 ) (106,761 ) Amortization (33,704 ) (54,938 ) Balance – ending $ 516,676 $ 462,625 The Company evaluated its patent portfolio and determined that certain pending applications had been abandoned or will not be pursued. As such, during the year ended August 31, 2024, the Company recognized an impairment loss of $57,836 related to those abandoned applications. The Company recognized $33,704 of amortization expense related to patents and licenses in the year ended August 31, 2024. The following table summarizes expected future amortization of the Company’s patent portfolio as of August 31, 2024: Years Ending December 31, 2025 $ 25,813 2026 25,813 2027 25,813 2028 25,813 2029 25,813 Thereafter $ 387,611 Total $ 516,676

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Aug. 31, 2024
Property and Equipment, net
Property & Equipment, net	8. Property & Equipment, net Property and equipment, net consists of: Saturday, August 31, 2024 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (11,258 ) $ - $ (259,981 ) $ - Computers 70,781 (2,920 ) - (69,076 ) 1,705 Furniture fixtures equipment 31,126 (1,870 ) - (31,126 ) - Lab equipment 367,423 (26,400 ) 43,014 (157,433 ) 253,004 Total $ 729,311 $ (42,448 ) $ 43,014 $ (517,616 ) $ 254,709 August 31, 2023 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (54,037 ) $ - $ (248,723 ) $ 11,258 Computers 70,781 (4,732 ) - (66,156 ) 4,625 Furniture fixtures equipment 31,126 (6,417 ) - (29,257 ) 1,869 Lab equipment 333,675 (29,986 ) 33,748 (131,032 ) 236,391 Total $ 695,563 $ (95,172 ) $ 33,748 $ (475,168 ) $ 254,143 During the years ended August 31, 2024 and August 31, 2023, amortization of $0 and $4,651 was included in cost of goods sold.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	12 Months Ended
	Aug. 31, 2024
Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities	9. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities August 31, August 31, 2024 2023 Accounts Payable Vendors payable $ 379,882 $ 225,038 Sales tax payable $ 8,528 $ 14,903 Accrued Liabilities Vendors payable $ 677,999 - Balance Ending $ 1,066,409 239,941

Revenues

Revenues	12 Months Ended
	Aug. 31, 2024
Revenues
Revenues	10. Revenues Revenues for the years ended August 31, 2024 and 2023 consist of the following: Year Ended August 31, 2024 2023 IP Licensing $ 457,990 $ 146,800 B2B 5,388 44,167 Other 900 35,241 Total Revenue $ 464,278 $ 226,208

Income Tax

Income Tax	12 Months Ended
	Aug. 31, 2024
Income Tax
Income Tax	11. Income Taxes The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company’s effective tax rates as at August 31, 2024 and 2023: August 31 2024 August 31 2023 $ $ Loss before taxes (5,808,654 ) (6,712,525 ) Expected income tax recovery (1,255,377 ) (1,427,529 ) Non-deductible items (532 ) (831 ) Change in estimates 119,349 4,271 Effect of changes in foreign and long-term tax rates - Change in valuation allowance 1,138,779 1,432,305 Total income taxes 2,219 8,216 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets at August 31, 2024 and 2023 are comprised of the following: August 31 2024 August 31 2023 $ $ Non-capital losses 8,738,277 8,637,353 Marketable securities (14,051 ) (14,051 ) Stock based compensation 754,147 650,778 R&D 1,348,082 371,326 PPE and intangibles (95,179 ) (64,569 ) Total deferred tax assets 10,731,276 9,580,837 Valuation Allowance (10,731,276 ) (9,580,837 ) Net Deferred tax assets - - The Company has net operating loss carry-forwards of approximately $44 million which may be carried forward to apply against future year income tax for U.S. tax purposes.

Common Shares and Warrants

Common Shares and Warrants	12 Months Ended
	Aug. 31, 2024
Common Shares and Warrants
Common Shares and Warrants	12. Common Shares and Warrants Fiscal 2024 Activity During the year ended August 31, 2024, the Company entered into Securities Purchase Agreements whereby on February 16, 2024, the Company issued 1,444,741 shares of common stock and 113,702 pre-funded warrants in a registered direct offering. The Company also sold to investors, warrants to purchase up to 1,558,443 shares of common stock. The combined effective offering price for each share of common stock and accompanying warrant was $2.31. The warrants will expire five years from the issuance date, and have an exercise price of $2.185 per share. The Company also agreed to partially compensate the placement agent through the issuance of warrants to purchase up to 54,546 shares of common stock. Such warrants will expire five years from the issuance date, and have an exercise price of $2.8875 per share. The net proceeds to the Company from the registered direct offering was $3.0 million, after deducting placement agent fees and other offering expenses paid by the Company. As of August 31, 2024, 1,298,702 warrants had been exercised. In addition, all 113,702 pre-funded warrants had been exercised for gross proceeds of $11. During the year ended August 31, 2024, the Company also entered into a securities purchase agreement with a single healthcare-focused institutional investor to purchase 889,272 shares of common stock and 729,058 pre-funded warrants in a registered direct offering. In a concurrent private placement, the Company also sold to the investor, warrants to purchase up to 1,618,330 shares of common stock. The combined effective offering price for each share of common stock (or pre-funded warrant in lieu thereof) and accompanying warrant was $0.97 (to note the pre-funded warrants were issued at a price of $0.9699 and have an exercise price of $0.0001). The warrants will become exercisable six months from issuance, expire five and a half years from the issuance date, and have an exercise price of $0.97 per share. The net proceeds to the Company from the registered direct offering and concurrent private placement were $1.25 million, after deducting placement agent fees and other offering expenses payable by the Company. To date all of the pre-funded warrants have been exercised, resulting in the issuance by the Company of an aggregate 729,058 common shares for gross proceeds of $73. Further, all 1,618,330 warrants had been exercised by August 31, 2024. On April 30 2024, the Company entered into a Warrant Exercise Agreement with an existing accredited investor (the "Investor”) to exercise in full outstanding Common Stock Purchase Warrants (the "Exercise”) to purchase up to an aggregate of 2,917,032 shares of the Company’s common stock (the "Existing Warrant”) for gross proceeds of $4,407,444. Immediately upon full exercise of the Existing Warrant, the Investor received a new unregistered Common Stock Purchase Warrant to purchase up to an aggregate of 2,917,032 shares of the Company’s common stock (the "New Warrant”). The New Warrant was issued to the Investor for consideration of $0.125 per share for additional gross proceeds of $364,629. In addition, 102,097 warrants with an exercise price of $5.9375 were issued as part of a tail commission. Placement agent fees and other offering expenses in the amount of $209,796 were netted against the proceeds. During the fiscal year ended August 31, 2024, the Company had warrant exercises resulting in the following share issuances: 1,622,250 common shares pursuant to the exercise of warrants that were issued under our May 11, 2023, financing, at an exercise price of $0.95 per share for gross proceeds of $1,541,137; 1,618,330 common shares pursuant to the exercise of warrants that were issued under our October 3, 2023, financing, at an exercise price of $0.97 per share for gross proceeds of $1,569,780; 729,058 common shares pursuant to the exercise of pre-funded warrants that were issued under our October 3, 2023, financing, at an exercise price of $0.0001 per share for gross proceeds of $73 dollars; 1,298,702 common shares pursuant to the exercise of warrants that were issued under our February 16, 2024, financing, at an exercise price of $2.185 per share for gross proceeds of $2,837,664; and 113,702 common shares pursuant to the exercise of pre-funded warrants that were issued under our February 16, 2024, financing, at an exercise price of $0.0001 per share for gross proceeds of $11 dollars. During the year ended August 31, 2024, 300,000 warrants expired. Presented below is a continuity schedule for warrants: Number of Warrants Weighted Average Exercise Price $ Balance, August 31, 2022 2,421,983 8.04 Cancelled/expired (7,500 ) 24.00 Issued 2,106,000 0.95 Balance, August 31, 2023 4,520,483 4.71 Issued 7,093,208 2.76 Expired (300,000 ) 7.67 Exercised (5,382,042 ) 1.11 Balance, August 31, 2024 5,931,649 5.50 Presented below is a summary of warrants outstanding as of August 31, 2024: Number of Warrants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life in Years 60,798 36.00 0.20-0.24 317,190 10.50 0.68-0.69 16,667 9.00 0.54 1,719,828 6.58 1.38 483,750 0.95 3.70 314,287 2.31 4.47 2,917,032 4.75 4.47 102,097 5.94 4.47 5,931,649 5.50 3.25 Fiscal 2023 Activity During the year ended August 31, 2023, the Company completed the following issuances of common shares and warrants: 1. 34,652 shares were sold pursuant to an at-the-market offering ("ATM”) for gross proceeds of $114,456. Offering costs netted against proceeds amounted to $125,122. 2 2,106,000 units were sold at a price of $0.95 per unit, with each unit consisting of one common share and one warrant exercisable to purchase an additional common share at $0.95 per share, for net proceeds of $1,600,397. The 2,106,000 warrants are exercisable for a period of five (5) years. No warrants have been exercised and 7,500 warrants expired during the year ended August 31, 2023.

Stock Options

Stock Options	12 Months Ended
	Aug. 31, 2024
Stock Options
Stock Options	13. Stock Options The Company established an Equity Incentive Plan whereby our Board, pursuant to shareholder approved amendments, may grant up to 1,037,544 stock options to directors, officers, employees, and consultants with such number being increased to up to 10% of the issued share capital at the end of each calendar year, at the discretion of the board, pursuant to an evergreen formula. Stock options may be exercised for a maximum period of up to ten (10) years but to date all currently issued options must be exercised, as determined by our Board, by no later than five years from the date of grant. 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 of or preceding the date of grant. Vesting terms are set by our Board. The estimated fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. Fiscal 2024 Activity The Company granted the following stock options during the year ended August 31, 2024: Grant Date Granted Quantity Exercise Price Contractual Life (years) 10/26/2023 85,000 $ 1.15 5 3/15/2024 200,000 $ 2.93 5 4/26/2024 151,500 $ 2.36 5 7/26/2024 48,000 $ 3.39 5 7/26/2024 12,000 $ 3.39 2 8/31/2024 200,000 $ 3.92 5 696,500 $ 2.91 4.95 Of the 200,000 options granted on March 15, 2024, 150,000 were subsequently cancelled and 50,000 were fully vested. Fiscal 2023 Activity The Company granted the following stock options during the year ended August 31, 2023: Options Weighted Average Exercise Price Contractual Life (years) 41,200 $ 1.96 5 5,000 $ 2.73 5 3,400 $ 3.04 5 20,000 $ 0.87 5 69,600 $ 1.75 (Avg. Contractual Life) 5 During the year ended August 31, 2023, 267,969 previously granted options with exercise prices ranging from $9.60 to $4.80 were repriced to $3.00 following shareholder approval obtained at the Company’s annual shareholder meeting held on May 9, 2023. 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, 2022 424,836 6.45 Cancelled/expired (47,500 ) 2.98 Granted 69,600 1.75 Balance August 31, 2023 446,936 $ 3.32 3.25 $ 3,600 Cancelled/expired (196,000 ) $ 2.94 4.27 Exercised (2,500 ) $ 1.15 4.16 Granted 696,500 $ 2.91 4.63 Balance August 31, 2024 (Outstanding) 944,936 3.11 3.64 971,959 Balance August 31, 2024 (Exercisable) 734,936 2.88 3.31 971,959 The intrinsic value of stock option awards that vested during the fiscal year represents the value of the Company’s closing stock price on the last trading day of the fiscal year in excess of the exercise price multiplied by the number of vested options. The fair value of options awarded during the fiscal years ended August 31, 2024 and August 31, 2023 totaled $1,267,732 and $89,057, respectively. The fair value of options granted was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: August 31, 2024 August 31, 2023 Expected Volatility 92%-98 % 98%-119 % Risk Free interest rate 3.77%-5.03 % 0.78%-3.30 % Expected life 2.5-4.0 years 5.0 years Dividend Yield 0.00 % 0.00 % Estimated fair value per option $0.63-$2.57 $2.25-$5.10 Stock-based compensation expense for the fiscal years ended August 31, 2024 and August 31, 2023 totaled $492,236 and $170,382, respectively. Of the current fiscal year expense, $453,119 relates to current year option awards, and $39,117 relates to the vesting of options awarded in previous fiscal years. As of August 31, 2024, unrecognized non-cash stock-based compensation expense totaled $533,619 related to 210,000 unvested stock options with a weighted average exercise price of $3.89. This expense is expected to be recognized over a weighted average period of 2.26 years.

Commitments, Significant Contra

Commitments, Significant Contracts and Contingencies	12 Months Ended
	Aug. 31, 2024
Commitments, Significant Contracts and Contingencies
Commitments, Significant Contracts and Contingencies	14. Commitments, Significant Contracts and Contingencies Right of Use Assets - Operating Lease Corporate offices and R&D lab space is leased in Kelowna, British Columbia, Canada which lease was renewed during fiscal 2023 until November 15, 2028. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. August 31, 2024 August 31, 2023 $ $ Right of use assets - operating leases 167,446 52,444 Remeasurement related to lease extension - 156,566 Amortization (32,603 ) (41,564 ) Total lease assets 134,843 167,446 Liabilities: 163,967 49,988 Remeasurement related to lease extension - 156,566 Lease payments (33,273 ) (44,814 ) Interest accretion 6,672 2,227 Total lease liabilities 137,366 163,967 Operating lease cost 134,843 167,446 Operating cash flows for lease (33,273 ) 44,814 Remaining lease term 4.21 Years 5.17 Years Discount rate 7.25 % 7.25 % Pursuant to the terms of the Company’s lease agreements in effect at August 31, 2024, the following table summarizes the Company’s maturities of operating lease liabilities: Fiscal Year Amount 2024 $ - 2025 37,094 2026 37,345 2027 38,641 2028 38,901 2029 8,104 Thereafter - Total lease payments 160,085 Less: imputed interest (22,719 ) Present value of operating lease liabilities 137,366 Less: current obligations under leases (28,047 ) Total $ 109,319

Segment Information

Segment Information	12 Months Ended
	Aug. 31, 2024
Segment Information
Segment Information	15. Segment Information The Company’s operations involve the development and usage, including licensing, of DehydraTECH. Lexaria is centrally managed and its chief operating decision makers, being the President and the CEO, use the consolidated and other financial information supplemented by revenue information by category of business-to-business product production and technology licensing to make operational decisions and to assess the performance of the Company. The Company has identified four reportable segments: Intellectual Property Licensing, B2B Production, Research and Development and Corporate. Licensing revenues are concentrated on three licensees. IP B2B Consolidated Year Ended August 31, 2024 Licensing Product R&D Corporate Total Revenue $ 457,990 $ 5,388 $ 900 $ - $ 464,278 Cost of goods sold (4,822 ) (4,822 ) Operating expenses (340 ) (1,124 ) (2,360,565 ) (3,850,557 ) (6,212,586 ) Other income/(expense) (55,524 ) (55,524 ) Segment loss $ 457,650 $ (558 ) $ (2,359,665 ) $ (3,906,081 ) $ (5,808,654 ) Total assets $ 164,152 $ 63,131 $ 497,603 $ 8,142,903 $ 8,867,789 IP B2B Consolidated Year Ended August 31, 2023 Licensing Product R&D Corporate Total Revenue $ 146,800 $ 44,167 $ 35,241 $ - $ 226,208 Cost of goods sold - (31,500 ) - - $ (31,500 ) Operating expenses (70,677 ) (282,709 ) (3,666,721 ) (2,708,623 ) $ (6,728,730 ) Other income/(expense) - - (178,503 ) $ (178,503 ) Segment loss $ 76,123 $ (270,042 ) $ (3,631,480 ) $ (2,887,126 ) $ (6,712,525 ) Total assets $ 103,336 $ 65,573 $ 187,532 $ 2,729,545 $ 3,083,986

Subsequent Events

Subsequent Events	12 Months Ended
	Aug. 31, 2024
Subsequent Events
Subsequent Events	16. Subsequent Events Subsequent to the fiscal year end, the Company engaged Mr. Michael Shankman as its Chief Financial Officer to fill the vacancy created when Mr. Cabatuan resigned from this position on July 15, 2024. Pursuant to the Executive Management Agreement entered into between the Company and Mr. Shankman, Mr. Shankman will be compensated with a base annual salary of US$120,000, subject to annual increases of 1.25 x the annual inflation rate as determined by the US Federal Reserve Board, an option grant for the issuance of up to 50,000 common shares vested over three years, and annual performance milestone bonuses of up to 35% during the first year, 40% during the second year and thereafter up to 50% of the base salary. Should Mr. Shankman be terminated without cause, after an initial six months with the Company, he will be entitled to severance pay equal to two (2) months base salary, with such severance pay increasing by a month for each completed year of employment. Mr. Shankman will also be entitled to medical and dental benefits equal in value to up to $2,000 per month and four (4) weeks of paid vacation. Subsequent to the fiscal year end, on September 4, 2024, we entered into an engagement agreement with H.C. Wainwright & Co. LLC (“HCW”), pursuant to which we agreed to sell in a registered direct offering, 1,633,987 shares of common stock at a purchase price of $3.06 per share for gross and net proceeds of $5.0 million and $4.5 million, respectively. Concurrently, the Company issued, by way of a private placement transaction, 4,551,019 share purchase warrants, entitling the holder thereof to purchase up to 4,551,019 shares of common stock at a price of $3.06 per share for a period of five years from the date of shareholder approval for such warrant issuance. The securities were issued on October 16, 2024, with the shares registered pursuant to a take down of the Company’s Form S-3 registration statement and the warrants and related warrant shares are required to be registered pursuant to a Form S-1 registration statement As part of the terms and conditions of the warrant issuance, the sole investor agreed to cancel the share purchase warrants that were issued to them in the April 30, 2024 financing. We also issued HCW warrants to purchase up to 57,190 shares at an exercise price of $3.825 per share. HCW was paid 7% of the gross proceeds and was also reimbursed $70,000 for its expenses and $15,950 in closing fees. On October 1, 2024, the Company awarded an option grant to an employee for the purchase of up to 12,000 common shares at an exercise price of $3.17 per share. In October 2024, the Company sold 8,402 shares of common stock through an At the Market (ATM) offering. Net proceeds from these sales totaled $25,359.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Aug. 31, 2024
Significant Accounting Policies
Basis of presentation and consolidation	These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States (“US GAAP”) and pursuant to the rules and regulations of the SEC. All amounts, unless otherwise stated, are in U.S. dollars. These consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries: Lexaria Pharmaceutical Corp., Lexaria Hemp Corp., Lexaria CanPharm ULC, Lexaria Nutraceutical Corp., Poviva Corp., Lexaria CanPharm Holding Corp., Lexaria (AU) Pty Ltd and Kelowna Management Services Corp. The Company owns 83.3% of Lexaria Nicotine LLC and the remaining 16.7% is 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.
Cash and cash equivalents	Cash and cash equivalents include cash-on-hand and demand deposits with financial institutions and other short-term investments with maturities of less than three months when acquired and readily convertible to known cash amounts. The Company had no cash equivalents as of August 31, 2024 or August 31, 2023.
Marketable Securities	The Company’s marketable securities consist of investments in common stock. Investments in equity securities are reported at fair value with changes in unrecognized gains or losses included in other income (loss) on the Consolidated Statements of Operations and Comprehensive Loss.
Leases	The Company accounts for its leases under ASC 842, Leases (“ASC 842”). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right of use asset and lease liability. We determined the initial classification and measurement of our right-of-use assets and lease liabilities at the lease commencement date and thereafter if modified. The lease term includes any renewal options and termination options that we are reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, we use our incremental borrowing rate. The incremental borrowing rate is determined by using the rate of interest that we would pay to borrow on a collateralized basis, an amount equal to the lease payments for a similar term and in a similar economic environment. Operating lease expenses are recognized on a straight-line basis, unless the right-of-use asset has been impaired, over the reasonably certain lease term based on the total lease payments. They are included in operating expenses in the Consolidated Statements of Operations and Comprehensive Loss. For operating leases that reflect impairment, we will recognize the amortization of the right-of-use asset on a straight-line basis over the remaining lease term with rent expense still included in operating expenses in the Consolidated Statements of Operations and Comprehensive Loss. For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of lease assets and lease liabilities at the lease commencement date. We have elected the practical expedient to not separate lease and non-lease components. Our non-lease components are primarily related to property taxes and maintenance, which vary based on future outcomes, and thus differences to original estimates are recognized in rent expense when incurred.
Intellectual property	Capitalized intellectual property costs include those incurred with respect to both pending and granted patents filed in the United States. When patent applications are filed, the directly related capitalized costs are amortized on a straight-line basis over an estimated economic life of 20 years.
Property and equipment	Property and equipment is stated at cost less accumulated depreciation and impairment and depreciated using the straight-line method over the useful lives of the various asset classes. Laboratory and computer equipment and office furniture are depreciated over periods ranging from 3 to 10 years. Certain production equipment is depreciated by units of production method. Leasehold improvements are amortized over the term of the related leases, or the economic life of the improvements, whichever is shorter.
Impairment of long-lived assets	Long-lived assets, including equipment and intangible assets, namely the Company’s patents, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to profit or loss. Intangible assets with indefinite lives are tested for impairment annually and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired.
Revenue recognition	The Company recognizes revenue in accordance with ASC 606’s core principle by applying the following five steps: 1. Identify contracts with customers 2. Identify the performance obligations in the contracts 3. Determine the contract price 4. Allocate the contract price 5. Recognize revenue when/as performance obligations are satisfied Licensing revenue from intellectual property Our revenues from licenses that grant exclusive rights to use our intellectual property, which we consider functional IP, are recognized at a point in time following the transfer and use of our patented infusion technology DehydraTECH. Our licensees are also required to pay quarterly fixed non-refundable minimum performance fees which are recognized as revenue over the period to which they apply. Usage fees from intellectual property The Company may also earn sales-based or usage-based royalties from its licensing contracts. The Company recognizes usage fees in the period when our licensees recognize sales of end-products that incorporate our licensed technology. No sales-based usage fees were recognized for the years ended August 31, 2024 and 2023. Third Party Contracted Manufacturing The Company recognizes revenue with respect to contract manufacturing arrangements when the related performance obligations have been satisfied (i.e., when it has completed the related manufacturing work) and in accordance with the five steps described in the ASC 606. Contract Research and Development The Company recognizes revenue from contract research and development arrangements when the related performance obligations have been satisfied and in accordance with the five steps described in ASC 606. The related performance obligation typically entails preparation of customer-specific formulations (i.e., DehydraTECH paired with the customer’s active ingredient) that the customer then uses in comparison testing relative to its existing product(s). Revenue is recognized upon shipment of the formulation to the customer.
Cost of sales	Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. This includes third-party manufacturing and handling costs, direct costs of the raw material, inbound freight charges, warehousing costs, and applicable overhead expenses.
Research and development	Research and development costs are expensed as incurred. These expenditures are comprised of both in-house research programs and through third-party contracts including consultants, academic and non-profit institutions, contract manufacturing, and other expenses.
Intellectual property expenses	Non-capitalizable costs associated with intellectual property-related matters are expensed as incurred and included in general and administrative expenses within the Consolidated Statements of Operations and Comprehensive Loss.
Stock-based compensation	The Company accounts for its stock-based compensation awards whereby all stock-based grants are recognized as expenses in the Consolidated Statements of Operations and Comprehensive Loss based on the fair value at grant date subject to vesting dates and amortized over the related vesting period. The grant date fair value of each option award is estimated using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected term of the option, risk-free interest rates and expected dividend yields of the common stock.
Foreign currency translation	The Company’s reporting currency is the U.S. dollar. The Company has foreign operations whose functional currency is the local currency. Assets and liabilities are translated into U.S. dollars, the reporting currency, at the exchange rate on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the average rates of exchange prevailing during the reporting period. Foreign currency translation adjustments resulting from this process are reported as an element of other comprehensive income (loss) on the consolidated statements of operations and comprehensive loss. Transactions executed in different currencies are translated at spot rates and resulting foreign exchange transaction gains and losses are charged to income.
Loss per share	The calculation of loss per share uses the weighted average number of shares outstanding during the year. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as restricted stock, stock options, and warrants, which would result in the issuance of incremental shares of common stock. Diluted loss per share is equivalent to basic loss per share if the potential exercise of the equity-based financial instruments is anti-dilutive.
Income taxes	The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets to an amount whose realization is more likely than not.
Fair Value Measurements	When measuring fair value, the Company seeks to maximize the use of observable inputs and minimize the use of unobservable inputs. This establishes a fair value hierarchy based on the level of independent objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Inputs are prioritized into three levels used to measure fair value: · Level 1 - Quoted prices in active markets for identical assets or liabilities; · Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and · Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Company’s financial instruments consist primarily of cash, marketable securities, accounts receivable and payable, and accrued liabilities. The carrying amounts of instruments approximate their fair values due to their short maturities or quoted market prices. The Company’s headquarters and operations are located in Canada which results in exposure to market risks from fluctuations in foreign currency rates. The foreign currency exchange risk is the financial risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk as the impact of rate changes for USD/CAD dollars is not expected to be material. The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of August 31, 2024. Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 55,807 $ 55,807 $ - $ - $ 55,807 The following table provides a summary of financial instruments that are measured at fair value on a recurring basis as of August 31, 2023. Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 125,642 $ 125,642 $ - $ - $ 125,642
Credit risk and customer concentration	The Company places its cash with a high credit quality financial institution. Periodically, the Company may carry cash balances at such financial institution in excess of the federally insured limit of $250,000. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institution, that the credit risk with regard to these deposits is not significant. In the year ended August 31, 2024, two customers accounted for 99% of consolidated revenues, whereas for the year ended August 31,2023, four customers accounted for 95% of consolidated revenue. At fiscal year-end 2024, we had $84,000 in license fees receivable, compared to $24,635 as of August 31, 2023. The Company recognized bad debt expense of $7,760 and $0 for the years ended August 31, 2024 and August 31, 2023, respectively. As of August 31, 2024, the Company had $70,477 in sales tax receivable, compared to $102,051 as of August 31, 2023. The Company considers its credit risk to be low for such receivables.
Commitments and contingencies	The Company's policy is to record accruals for any loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. The Company, from time to time, may be subject to legal claims and proceedings related to matters arising in the ordinary course of business. Management has no knowledge of any such claim against the Company with, at minimum, a reasonable possibility that a material loss may be incurred.
Reclassifications	Certain amounts in the prior period have been reclassified to conform with current period presentation.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Aug. 31, 2024
Significant Accounting Policies
Schedule of fair value of financial instruments	Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 55,807 $ 55,807 $ - $ - $ 55,807 Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Marketable Securities $ 125,642 $ 125,642 $ - $ - $ 125,642

Accounts and Other Receivables

Accounts and Other Receivables (Tables)	12 Months Ended
	Aug. 31, 2024
Accounts and Other Receivables
Schedule of accounts receivables	August 31, August 31, 2024 2023 Territory license fees $ 84,000 $ 24,635 Sales tax 70,477 102,051 Long term receivable 63,575 48,559 Total Receivables $ 218,052 $ 175,245

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Aug. 31, 2024
Prepaid Expenses and Other Current Assets
Schedule of Prepaid Expenses	August 31, August 31, 2024 2023 Advertising & Conferences $ 204,894 $ 40,342 Research and Development 673,126 - Consulting - 331,811 Legal & Accounting Fees 45,600 36,795 License, Filing Fees, Dues 22,925 15,668 Office & Insurance 122,245 97,167 Capital Financing 119,027 25,000 Total Prepaid Expenses and Other Current Assets $ 1,187,817 $ 546,783

Intellectual Property, net (Tab

Intellectual Property, net (Tables)	12 Months Ended
	Aug. 31, 2024
Intellectual Property, net
Schedule of patents	August 31, August 31, 2024 2023 Balance – beginning $ 462,625 $ 488,462 Addition 145,591 135,862 Impairment (57,836 ) (106,761 ) Amortization (33,704 ) (54,938 ) Balance – ending $ 516,676 $ 462,625
Schedule of expected future amortization of patents	Years Ending December 31, 2025 $ 25,813 2026 25,813 2027 25,813 2028 25,813 2029 25,813 Thereafter $ 387,611 Total $ 516,676

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Aug. 31, 2024
Property and Equipment, net
Schedule of property, plant & equipment	Saturday, August 31, 2024 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (11,258 ) $ - $ (259,981 ) $ - Computers 70,781 (2,920 ) - (69,076 ) 1,705 Furniture fixtures equipment 31,126 (1,870 ) - (31,126 ) - Lab equipment 367,423 (26,400 ) 43,014 (157,433 ) 253,004 Total $ 729,311 $ (42,448 ) $ 43,014 $ (517,616 ) $ 254,709 August 31, 2023 Cost Period Amortization Additions Accumulated Amortization Net Balance Leasehold improvements $ 259,981 $ (54,037 ) $ - $ (248,723 ) $ 11,258 Computers 70,781 (4,732 ) - (66,156 ) 4,625 Furniture fixtures equipment 31,126 (6,417 ) - (29,257 ) 1,869 Lab equipment 333,675 (29,986 ) 33,748 (131,032 ) 236,391 Total $ 695,563 $ (95,172 ) $ 33,748 $ (475,168 ) $ 254,143

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	12 Months Ended
	Aug. 31, 2024
Accounts Payable and Accrued Liabilities
Schedule of accounts payable and accrued liabilities	August 31, August 31, 2024 2023 Accounts Payable Vendors payable $ 379,882 $ 225,038 Sales tax payable $ 8,528 $ 14,903 Accrued Liabilities Vendors payable $ 677,999 - Balance Ending $ 1,066,409 239,941

Revenues (Tables)

Revenues (Tables)	12 Months Ended
	Aug. 31, 2024
Revenues
Schedule of revenue	Year Ended August 31, 2024 2023 IP Licensing $ 457,990 $ 146,800 B2B 5,388 44,167 Other 900 35,241 Total Revenue $ 464,278 $ 226,208

Income Tax (Tables)

Income Tax (Tables)	12 Months Ended
	Aug. 31, 2024
Income Tax
Schedule of Income Tax	August 31 2024 August 31 2023 $ $ Loss before taxes (5,808,654 ) (6,712,525 ) Expected income tax recovery (1,255,377 ) (1,427,529 ) Non-deductible items (532 ) (831 ) Change in estimates 119,349 4,271 Effect of changes in foreign and long-term tax rates - Change in valuation allowance 1,138,779 1,432,305 Total income taxes 2,219 8,216
Schedule of Deferred tax assets	August 31 2024 August 31 2023 $ $ Non-capital losses 8,738,277 8,637,353 Marketable securities (14,051 ) (14,051 ) Stock based compensation 754,147 650,778 R&D 1,348,082 371,326 PPE and intangibles (95,179 ) (64,569 ) Total deferred tax assets 10,731,276 9,580,837 Valuation Allowance (10,731,276 ) (9,580,837 ) Net Deferred tax assets - -

Common Shares and Warrants (Tab

Common Shares and Warrants (Tables)	12 Months Ended
	Aug. 31, 2024
Common Shares and Warrants
Schedule for warrants	Number of Warrants Weighted Average Exercise Price $ Balance, August 31, 2022 2,421,983 8.04 Cancelled/expired (7,500 ) 24.00 Issued 2,106,000 0.95 Balance, August 31, 2023 4,520,483 4.71 Issued 7,093,208 2.76 Expired (300,000 ) 7.67 Exercised (5,382,042 ) 1.11 Balance, August 31, 2024 5,931,649 5.50
Summary of warrants outstanding	Number of Warrants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life in Years 60,798 36.00 0.20-0.24 317,190 10.50 0.68-0.69 16,667 9.00 0.54 1,719,828 6.58 1.38 483,750 0.95 3.70 314,287 2.31 4.47 2,917,032 4.75 4.47 102,097 5.94 4.47 5,931,649 5.50 3.25

Stock Options (Tables)

Stock Options (Tables)	12 Months Ended
	Aug. 31, 2024
Stock Options
Schedule of stock options activity	Grant Date Granted Quantity Exercise Price Contractual Life (years) 10/26/2023 85,000 $ 1.15 5 3/15/2024 200,000 $ 2.93 5 4/26/2024 151,500 $ 2.36 5 7/26/2024 48,000 $ 3.39 5 7/26/2024 12,000 $ 3.39 2 8/31/2024 200,000 $ 3.92 5 696,500 $ 2.91 4.95 Options Weighted Average Exercise Price Contractual Life (years) 41,200 $ 1.96 5 5,000 $ 2.73 5 3,400 $ 3.04 5 20,000 $ 0.87 5 69,600 $ 1.75 (Avg. Contractual Life) 5
Summary of continuity schedule of stock options	Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balance August 31, 2022 424,836 6.45 Cancelled/expired (47,500 ) 2.98 Granted 69,600 1.75 Balance August 31, 2023 446,936 $ 3.32 3.25 $ 3,600 Cancelled/expired (196,000 ) $ 2.94 4.27 Exercised (2,500 ) $ 1.15 4.16 Granted 696,500 $ 2.91 4.63 Balance August 31, 2024 (Outstanding) 944,936 3.11 3.64 971,959 Balance August 31, 2024 (Exercisable) 734,936 2.88 3.31 971,959
Schedule of fair value of options granted	August 31, 2024 August 31, 2023 Expected Volatility 92%-98 % 98%-119 % Risk Free interest rate 3.77%-5.03 % 0.78%-3.30 % Expected life 2.5-4.0 years 5.0 years Dividend Yield 0.00 % 0.00 % Estimated fair value per option $0.63-$2.57 $2.25-$5.10

Commitments, Significant Cont_2

Commitments, Significant Contracts and Contingencies (Tables)	12 Months Ended
	Aug. 31, 2024
Commitments, Significant Contracts and Contingencies
Schedule of operating lease liabilities	August 31, 2024 August 31, 2023 $ $ Right of use assets - operating leases 167,446 52,444 Remeasurement related to lease extension - 156,566 Amortization (32,603 ) (41,564 ) Total lease assets 134,843 167,446 Liabilities: 163,967 49,988 Remeasurement related to lease extension - 156,566 Lease payments (33,273 ) (44,814 ) Interest accretion 6,672 2,227 Total lease liabilities 137,366 163,967 Operating lease cost 134,843 167,446 Operating cash flows for lease (33,273 ) 44,814 Remaining lease term 4.21 Years 5.17 Years Discount rate 7.25 % 7.25 %
Schedule of maturities of operating lease liabilities	Fiscal Year Amount 2024 $ - 2025 37,094 2026 37,345 2027 38,641 2028 38,901 2029 8,104 Thereafter - Total lease payments 160,085 Less: imputed interest (22,719 ) Present value of operating lease liabilities 137,366 Less: current obligations under leases (28,047 ) Total $ 109,319

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Aug. 31, 2024
Segment Information
Schedule of profit or loss and total assets for each reportable segment	IP B2B Consolidated Year Ended August 31, 2024 Licensing Product R&D Corporate Total Revenue $ 457,990 $ 5,388 $ 900 $ - $ 464,278 Cost of goods sold (4,822 ) (4,822 ) Operating expenses (340 ) (1,124 ) (2,360,565 ) (3,850,557 ) (6,212,586 ) Other income/(expense) (55,524 ) (55,524 ) Segment loss $ 457,650 $ (558 ) $ (2,359,665 ) $ (3,906,081 ) $ (5,808,654 ) Total assets $ 164,152 $ 63,131 $ 497,603 $ 8,142,903 $ 8,867,789 IP B2B Consolidated Year Ended August 31, 2023 Licensing Product R&D Corporate Total Revenue $ 146,800 $ 44,167 $ 35,241 $ - $ 226,208 Cost of goods sold - (31,500 ) - - $ (31,500 ) Operating expenses (70,677 ) (282,709 ) (3,666,721 ) (2,708,623 ) $ (6,728,730 ) Other income/(expense) - - (178,503 ) $ (178,503 ) Segment loss $ 76,123 $ (270,042 ) $ (3,631,480 ) $ (2,887,126 ) $ (6,712,525 ) Total assets $ 103,336 $ 65,573 $ 187,532 $ 2,729,545 $ 3,083,986

Nature of Business (Detail Narr

Nature of Business (Detail Narrative) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Nov. 25, 2024	Aug. 31, 2024	Aug. 31, 2023
Nature of Business
Aggregate offering value		$ 10.3
Net loss attributable to shareholders		5.8	$ 6.7
Accumulated deficit		$ (51.6)
Additional proceed from direct offerings	$ 4.5

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Marketable securities	$ 55,807	$ 125,642
Marketable securities	55,807	125,642
Marketable securities, carrying value	55,807	125,642
Level 1 [Member]
Marketable securities	55,807	125,642
Level 2 [Member]
Marketable securities	0	0
Level 3 [Member]
Marketable securities	$ 0	$ 0

Significant Accounting Polici_5

Significant Accounting Policies (Detail Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Intellectual property life	20 years
Sales tax receivable	$ 70,477	$ 102,051
Licence fees receivable	84,000	24,635
Federally insured limit		250,000
Bad debt expense	$ 7,760	$ 0
Lexaria Nicotine L L C
Equity interest percentage	83.30%
Altria Ventures Inc
Equity interest percentage	16.70%
Minimum
Laboratory and computer equipment and office furniture depreciation year	3 years
Maximum
Laboratory and computer equipment and office furniture depreciation year	10 years

Estimates and Judgments (Detail

Estimates and Judgments (Detail Narrative)	12 Months Ended
	Aug. 31, 2024 USD ($)
Estimates and Judgments
Note receivable	$ 2,000,000
Interest income	14,117
Impairment loss	$ 57,836

Accounts and Other Receivable_2

Accounts and Other Receivables (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Account receivable	$ 218,052	$ 175,245
Territory license fee [Member]
Account receivable	84,000	24,635
Sales tax [Member]
Account receivable	70,477	102,051
Long term receivable [Member]
Account receivable	$ 63,575	$ 48,559

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Total Prepaid Expenses and Other Current Assets	$ 1,187,817	$ 546,783
Advertising & Conferences [Member]
Total Prepaid Expenses and Other Current Assets	204,894	40,342
Research and Development [Member]
Total Prepaid Expenses and Other Current Assets	673,126	0
Consulting [Member]
Total Prepaid Expenses and Other Current Assets	0	331,811
Legal & Accounting Fees [Member]
Total Prepaid Expenses and Other Current Assets	45,600	36,795
License, Filing Fees, Dues [Member]
Total Prepaid Expenses and Other Current Assets	22,925	15,668
Office & Insurance [Member]
Total Prepaid Expenses and Other Current Assets	122,245	97,167
Capital Financing [Member]
Total Prepaid Expenses and Other Current Assets	$ 119,027	$ 25,000

Intellectual Property net (Deta

Intellectual Property net (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Intellectual Property, net
Balance- beginning	$ 462,625	$ 488,462
Addition	145,591	135,862
Amortization	(33,704)	(54,938)
Impairment	(57,836)	(106,761)
Balance - ending	$ 516,676	$ 462,625

Intellectual Property net (De_2

Intellectual Property net (Details 1)	Aug. 31, 2024 USD ($)
Intellectual Property, net
2025	$ 25,813
2026	25,813
2027	25,813
2028	25,813
2029	25,813
Total	516,676
Thereafter	$ 387,611

Intellectual Property net (De_3

Intellectual Property net (Details Narrative)	12 Months Ended
	Aug. 31, 2024 USD ($)
Intellectual Property, net
Amortization expense	$ 33,704
Impairment loss from Intellectual Property	$ 57,836

Property Equipment net (Details

Property Equipment net (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Costs	$ 729,311	$ 695,563
Additions	43,014	33,748
Accumulated amortization	(517,616)	(475,168)
Balance-end of the period	254,709	254,143
Period Amortization [Member]
Accumulated amortization	(42,448)	(95,172)
Leasehold Improvements [Member]
Costs	259,981	259,981
Additions	0	0
Accumulated amortization	(259,981)	(248,723)
Balance-end of the period	0	11,258
Leasehold Improvements [Member] | Period Amortization [Member]
Accumulated amortization	(11,258)	(54,037)
Computer [Member]
Costs	70,781	70,781
Additions	0	0
Accumulated amortization	(69,076)	(66,156)
Balance-end of the period	1,705	4,625
Computer [Member] | Period Amortization [Member]
Accumulated amortization	(2,920)	(4,732)
Furniture Fixtures Equipment [Member]
Costs	31,126	31,126
Additions	0	0
Accumulated amortization	(31,126)	(29,257)
Balance-end of the period	0	1,869
Furniture Fixtures Equipment [Member] | Period Amortization [Member]
Accumulated amortization	(1,870)	(6,417)
Lab Equipment [Member]
Costs	367,423	333,675
Additions	43,014	33,748
Accumulated amortization	(157,433)	(131,032)
Balance-end of the period	253,004	236,391
Lab Equipment [Member] | Period Amortization [Member]
Accumulated amortization	$ (26,400)	$ (29,986)

Property Equipment net (Detai_2

Property Equipment net (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Property and Equipment, net
Amortization	$ 0	$ 4,651

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Accounts payable and accrued liabilities	$ 1,066,409	$ 239,941
Accrued Liabilities [Member]
Vendors payable	677,999
Accounts Payable [Member]
Vendors payable	379,882	225,038
Sales tax payable	$ 8,528	$ 14,903

Revenues (Details)

Revenues (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Income from operations	$ 464,278	$ 226,208
Other [Member]
Income from operations	900	35,241
IP Licensing [Member]
Income from operations	457,990	146,800
B2B [Member]
Income from operations	$ 5,388	$ 44,167

Revenues (Details Narrative)

Revenues (Details Narrative)	12 Months Ended
	Aug. 31, 2024 USD ($)
Revenues
Product revenues	$ 5,388
Licensing revenue	$ 457,990

Income Tax (Details)

Income Tax (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Income Tax
Loss before taxes	$ (5,808,654)	$ (6,712,525)
Expected income tax recovery	(1,255,377)	(1,427,529)
Non-deductible items	(532)	(831)
Change in estimates	119,349	4,271
Effect of changes in foreign and long-term tax rates		0
Change in valuation allowance	1,138,779	1,432,305
Total income taxes	$ 2,219	$ 8,216

Income Tax (Details 1)

Income Tax (Details 1) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Income Tax
Non-capital losses	$ 8,738,277	$ 8,637,353
Marketable securities	(14,051)	(14,051)
Stock based compensation	754,147	650,778
R&D	1,348,082	371,326
PPE and intangibles	(95,179)	(64,569)
Total deferred tax assets	10,731,276	9,580,837
Change in valuation allowance	(10,731,276)	(9,580,837)
Net Deferred tax assets	$ 0	$ 0

Income Tax (Details Narrative)

Income Tax (Details Narrative) $ in Millions	Aug. 31, 2024 USD ($)
Income Tax
Net operating loss carry-forwards	$ 44

Common Shares and Warrants (Det

Common Shares and Warrants (Details) - $ / shares	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Common Shares and Warrants
Number of Warrants, Beginning Balance	4,520,483	2,421,983
Number of Warrants, Cancelled/Expired	(300,000)	(7,500)
Number of Warrants, Issued	7,093,208	2,106,000
Number of Warrants, Exercised	(5,382,042)
Number of Warrants, Ending Balance	5,931,649	4,520,483
Weighted Average Exercise Price, Beginning Balance	$ 4.71	$ 8.04
Weighted Average Exercise Price, Cancelled/Expired	7.67	24
Weighted Average Exercise Price, Issued	2.76	0.95
Weighted Average Exercise Price, Exercised	1.11
Weighted Average Exercise Price, Ending Balances	$ 5.50	$ 4.71

Common Shares and Warrants (D_2

Common Shares and Warrants (Details 1) - $ / shares	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2022
Number of Warrants	5,931,649	4,520,483	2,421,983
Weighted Average Exercise Price	$ 5.50
Weighted Average Remaining Contractual Life	3 years 3 months
Warrants 7
Number of Warrants	2,917,032
Weighted Average Exercise Price	$ 4.75
Weighted Average Remaining Contractual Life	4 years 5 months 19 days
Warrants 8
Number of Warrants	102,097
Weighted Average Exercise Price	$ 5.94
Weighted Average Remaining Contractual Life	4 years 5 months 19 days
Warrants 1
Number of Warrants	60,798
Weighted Average Exercise Price	$ 36
Warrants 1 | Minimum
Weighted Average Remaining Contractual Life	2 months 12 days
Warrants 1 | Maximum
Weighted Average Remaining Contractual Life	2 months 26 days
Warrants 2
Number of Warrants	317,190
Weighted Average Exercise Price	$ 10.50
Warrants 2 | Minimum
Weighted Average Remaining Contractual Life	8 months 4 days
Warrants 2 | Maximum
Weighted Average Remaining Contractual Life	8 months 8 days
Warrants 3
Number of Warrants	16,667
Weighted Average Exercise Price	$ 9
Weighted Average Remaining Contractual Life	6 months 14 days
Warrants 4
Number of Warrants	1,719,828
Weighted Average Exercise Price	$ 6.58
Weighted Average Remaining Contractual Life	1 year 4 months 17 days
Warrants 5
Number of Warrants	483,750
Weighted Average Exercise Price	$ 0.95
Weighted Average Remaining Contractual Life	3 years 8 months 12 days
Warrants 6
Number of Warrants	314,287
Weighted Average Exercise Price	$ 2.31
Weighted Average Remaining Contractual Life	4 years 5 months 19 days

Common Shares and Warrants (D_3

Common Shares and Warrants (Detail Narrative) - USD ($)			1 Months Ended		12 Months Ended
	Oct. 03, 2023	May 11, 2023	Apr. 30, 2024	Feb. 16, 2024	Aug. 31, 2024	Aug. 31, 2023
Sale price per share						$ 0.95
Sale of common shares						34,652
Warrants expired					300,000
Public offering						114,456
Net proceeds from offering						$ 125,122
Placement Agent [Member]
Proceeds to direct offering					$ 3,000,000
Common shares to be purchase					54,546
Exercise price					$ 2.8875
Securities Purchase Agreement Other [Member]
Warrants exercised					1,618,330
Proceeds from issuance of common stock			$ 4,407,444		$ 73
Proceed from issuance of common stock additional			364,629
Placement agent fees and other offering expenses			$ 209,796
Common shares to be purchase					1,618,330
Purchase of Pre-funded warrants					729,058
Offering price					$ 0.97
Exercise price			$ 5.9375		$ 0.97
Purchase of common stock			2,917,032		889,272
Net proceeds					$ 1,250,000
New unregistered purchase of common stock			2,917,032
New unregistered purchase of common stock consideration price			$ 0.125
Securities Purchase Agreement [Member]
Warrants exercised					1,298,702
Pre-funded warrants exercised					113,702
Proceeds from issuance of common stock	$ 1,569,780	$ 1,541,137		$ 2,837,664
Proceeds from pre-funded warrants					$ 11
Stock issued during period, shares	$ 1,618,330	$ 1,622,250		$ 1,298,702
Common shares to be purchase				1,444,741	1,558,443
Purchase of Pre-funded warrants					113,702
Offering price					$ 2.31
Exercise price	$ 0.97	$ 0.95		$ 2.185	$ 2.185
Securities Purchase Agreement Two [Member]
Proceeds from issuance of common stock	$ 73			$ 11
Exercise price	$ 0.0001			$ 0.0001
Common shares pre-funded warrants issued	729,058			113,702
Fiscal 2023 Activity
Number of Warrants exercisable						2,106,000
Number of Warrants sold						2,106,000
Sale price per share						$ 0.95
Options repricing						7,500
Weighted Average Remaining Contractual Life						5 years
Net proceeds from offering						$ 1,600,397

Stock Options (Details)

Stock Options (Details) - $ / shares	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Quantity	696,500	69,600
Exercise price	$ 2.91	$ 1.75
Life (Years)	4 years 11 months 12 days	5 years
Stock Options 5
Quantity	12,000
Exercise price	$ 3.39
Life (Years)	2 years
Stock Options 6
Quantity	200,000
Exercise price	$ 3.92
Life (Years)	5 years
Stock Options 1
Quantity	85,000	41,200
Exercise price	$ 1.15	$ 1.96
Life (Years)	5 years	5 years
Stock Options 2
Quantity	200,000	5,000
Exercise price	$ 2.93	$ 2.73
Life (Years)	5 years	5 years
Stock Options 3
Quantity	151,500	3,400
Exercise price	$ 2.36	$ 3.04
Life (Years)	5 years	5 years
Stock Options 4
Quantity	48,000	20,000
Exercise price	$ 3.39	$ 0.87
Life (Years)	5 years	5 years

Stock Options (Details 1)

Stock Options (Details 1) - USD ($)		12 Months Ended
	Mar. 15, 2024	Aug. 31, 2024	Aug. 31, 2023
Stock Options
Beginning Balance, Outstanding		446,936	424,836
Expired/Cancelled		(196,000)	(47,500)
Granted	200,000	696,500	69,600
Exercised		(2,500)
Ending Balance, Outstanding		944,936	446,936
Ending Balance, Exercisable		734,936
Weighted average exercise price, Beginning Balance, Outstanding		$ 3.32	$ 6.45
Weighted average exercise price, Expired/Cancelled		2.94	2.98
Weighted average exercise price, Granted		2.91	1.75
Weighted average exercise price, Exercised		1.15
Weighted average exercise price, Beginning Balance, Outstanding		3.11	$ 3.32
Weighted average exercise price, exercisable		$ 2.88
Weighted Average Remaining Contractual Term, Outstanding (Years), beginning		3 years 3 months
Weighted Average Remaining Contractual Term, Outstanding (Years), Cancelled/expired		4 years 3 months 7 days
Weighted Average Remaining Contractual Term, Outstanding (Years), Exercised		4 years 1 month 28 days
Weighted Average Remaining Contractual Term, Outstanding (Years), Granted		4 years 7 months 17 days
Weighted Average Remaining Contractual Term, Outstanding (Years), ending		3 years 7 months 20 days
Weighted Average Remaining Contractual Term, Exercisable (Years)		3 years 3 months 21 days
Aggregate Intrinsic Value, Exercisable		$ 971,959
Aggregate Intrinsic Value, Outstanding		$ 971,959	$ 3,600

Stock Options (Details 2)

Stock Options (Details 2) - $ / shares	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Expected life		5 years
Dividend yield	0%	0%
Minimum
Expected life	2 years 6 months
Estimated fair value per option Maximum	$ 0.63	$ 2.25
Expected volatility Minimum	92%	98%
Risk-free interest rate Minimum	3.77%	0.78%
Maximum
Expected life	4 years
Estimated fair value per option Maximum	$ 2.57	$ 5.10
Expected volatility Minimum	98%	119%
Risk-free interest rate Minimum	5.03%	3.30%

Stock Options (Detail Narrative

Stock Options (Detail Narrative) - USD ($)		12 Months Ended
	Mar. 15, 2024	Aug. 31, 2024	Aug. 31, 2023
Number of shares granted	200,000	696,500	69,600
Number of shares cancelled	150,000
Number of shares vested	50,000
Description of incentives plan		The Company established an Equity Incentive Plan whereby our Board, pursuant to shareholder approved amendments, may grant up to 1,037,544 stock options to directors, officers, employees, and consultants with such number being increased to up to 10% of the issued share capital at the end of each calendar year, at the discretion of the board, pursuant to an evergreen formula
Fair value of options awarded		$ 1,267,732	$ 89,057
Stock based compensation expense		492,236	$ 170,382
Unrecognized non-cash compensation costs		$ 453,119
Non-vested stock options		39,117
Compensation expense for options repricing		$ 0
Common Stock Par Values
Number of stock options, granted		0
Stock Options
Exercise price repriced		$ 3.89	$ 3
Non-vested stock options		210,000
Options repricing			267,969
Unrecognized non-cash stock-based compensation expense		$ 533,619
Weighted Average Remaining Contractual Life		2 years 3 months 3 days	10 years
Stock Options | Minimum
Exercise price			$ 9.60
Stock Options | Maximum
Exercise price			$ 4.80

Commitments, Significant Cont_3

Commitments, Significant Contracts and Contingencies (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Commitments, Significant Contracts and Contingencies
Right of use assets - operating leases	$ 167,446	$ 52,444
Right of use assets - Remeasurement related to lease extension	0	156,566
Amortization	(32,603)	(41,564)
Total lease assets	134,843	167,446
Liabilities operating lease	163,967	49,988
Liabilities remeasurement related to lease extension	0	156,566
Lease payments	(33,273)	(44,814)
Interest accretion	6,672	2,227
Total lease liabilities	137,366	163,967
Operating lease cost	134,843	167,446
Operating cash flows for lease	$ (33,273)	$ 44,814
Remaining lease term	4 years 2 months 15 days	5 years 2 months 1 day
Discount Rate	7.25%	7.25%

Commitments, Significant Cont_4

Commitments, Significant Contracts and Contingencies (Details 1)	Aug. 31, 2024 USD ($)
Commitments, Significant Contracts and Contingencies
2024	$ 0
2025	37,094
2026	37,345
2027	38,641
2028	38,901
2029	8,104
Thereafter	0
Total lease payments	160,085
Less: imputed interest	(22,719)
Present value of operating lease liabilities	137,366
Less: current obligations under leases	(28,047)
Non-Current Portion	$ 109,319

Segment Information (Details)

Segment Information (Details) - USD ($)	12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Revenue	$ 464,278	$ 226,208
Cost of goods sold	(4,822)	(31,500)
Operating expense	(6,212,586)	(6,728,730)
Segment income (loss)	(5,808,654)	(6,712,525)
Other Income (Expenses)	(55,524)	(178,503)
Total assets	8,867,789	3,083,986
Total assets	8,867,789	3,083,986
R&D [Member]
Revenue	900	35,241
Cost of goods sold		0
Operating expense	(2,360,565)	(3,666,721)
Segment income (loss)	(2,359,665)	(3,631,480)
Other Income (Expenses)		0
Total assets	497,603	187,532
IP Licensing
Revenue	457,990	146,800
Cost of goods sold		0
Operating expense	(340)	(70,677)
Segment income (loss)	457,650	76,123
Total assets	164,152	103,336
Corporate
Revenue	0	0
Cost of goods sold		0
Operating expense	(3,850,557)	(2,708,623)
Segment income (loss)	(3,906,081)	(2,887,126)
Other Income (Expenses)	(55,524)	(178,503)
Total assets	8,142,903	2,729,545
B2B [Member]
Revenue	5,388	44,167
Cost of goods sold	(4,822)	(31,500)
Operating expense	(1,124)	(282,709)
Segment income (loss)	(558)	(270,042)
Other Income (Expenses)		0
Total assets	$ 63,131	$ 65,573

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)					1 Months Ended	12 Months Ended
	Nov. 05, 2024	Oct. 08, 2024	Sep. 04, 2024	Jul. 15, 2024	Oct. 16, 2024	Aug. 31, 2023
Common stock shares sold						114,456
Subsequent Event [Member]
Gross proceeds		$ 25,359
Stock options granted to employees	12,000
Exercise price	$ 3.17
Common stock shares sold		8,402
Subsequent Event [Member] | H.C. Wainwright & Co. LLC [Member]
Gross proceeds			$ 5,000,000
Net proceeds			$ 4,500,000
Description of warrant issuance					We also issued HCW warrants to purchase up to 57,190 shares at an exercise price of $3.825 per share
Issued share purchase warrants			4,551,019
Purchase common stock shares			4,551,019
Common stock shares sold			1,633,987
Percent of gross proceeds			7%
Reimbursed amount for expenses			$ 70,000
Closing fees			$ 15,950
Purchase price			$ 3.06
Exercise price			$ 3.06
Executive Management Agreement [Member]
Annual salary of CFO				$ 120,000
Description of salary of CFO				subject to annual increases of 1.25 x the annual inflation rate as determined by the US Federal Reserve Board, an option grant for the issuance of up to 50,000 common shares vested over three years, and annual performance milestone bonuses of up to 35% during the first year, 40% during the second year and thereafter up to 50% of the base salary. Should Mr. Shankman be terminated without cause, after an initial six months with the Company, he will be entitled to severance pay equal to two (2) months base salary, with such severance pay increasing by a month for each completed year of employment. Mr. Shankman will also be entitled to medical and dental benefits equal in value to up to $2,000 per month and four (4) weeks of paid vacation

Insider Trading Arrangements

Insider Trading Arrangements	Nov. 26, 2024
Insider Trading Arrangments [Line Item]
Rule 10b5-1 Arr Adopted [Flag]	false
Non Rule 10b5-1 Arrangment Adopted [Flag]	false
Rule 10b5-1 Arrangement Termindated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false