<div id="readability-page-1"><div>Lexaria Bioscience Corp., a biotechnology company specializing in enhancing the bioavailability of active pharmaceutical ingredients through its patented DehydraTECH drug delivery technology, has released its annual Form 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive biopharmaceutical industry. Financial Highlights <ul><li>Total Revenue: $0.71 million, increased by $0.24 million or 52% from the previous year, primarily due to licensing revenue growth.</li><li>Gross Profit: $0.70 million, reflecting a strong margin on increased revenue.</li><li>Net Loss: $11.91 million, increased by $6.10 million from the previous year, driven by higher research and development expenses.</li><li>Basic and diluted loss per share: $(0.66), reflecting the increased net loss and higher number of shares outstanding.</li></ul> Business Highlights <ul><li>DehydraTECH Technology: Lexaria focuses on enhancing the bioavailability of active pharmaceutical ingredients using its patented DehydraTECH drug delivery technology. This technology is applicable across various product formats, including pharmaceuticals, nutraceuticals, and consumer packaged goods, and is designed to improve the delivery and effectiveness of APIs.</li><li>Product Applications: DehydraTECH can be used with a wide range of active molecules, such as GLP-1 and GIP drugs, vitamins, pain medications, hormones, antivirals, nicotine, and cannabinoids. It is suitable for therapeutic indications like diabetes, weight loss, epilepsy, hypertension, and heart disease.</li><li>Intellectual Property: Lexaria has a robust patent portfolio with 56 patents granted worldwide, covering compositions, methods of use, and manufacturing processes related to DehydraTECH. The company continues to pursue additional patent applications to expand its intellectual property coverage.</li><li>Research and Development Focus: The company is heavily invested in R&amp;D, with a focus on DehydraTECH-enhanced GLP-1 and GIP drugs for diabetes and weight loss, as well as CBD for hypertension reduction. Significant milestones include human pilot studies and animal studies demonstrating the efficacy of DehydraTECH formulations.</li><li>Clinical Trials and Studies: Lexaria completed several human pilot studies and a 12-week chronic human clinical trial in Australia, investigating DehydraTECH-infused GLP-1, GIP, and CBD formulations. These studies aim to establish the safety, tolerability, and efficacy of DehydraTECH-enhanced products.</li><li>Future Outlook: Lexaria plans to continue its R&amp;D efforts, focusing on GLP-1/GIP drugs and CBD for hypertension. The company is also exploring potential collaborations and partnerships to advance its clinical development programs and commercialize DehydraTECH-enhanced products.</li><li>Licensing Strategy: Lexaria aims to license its DehydraTECH technology to industry participants to enhance the performance of their products. The company has several active licenses across different sectors, including pharmaceuticals, nutraceuticals, and nicotine products.</li><li>Regulatory Pathways: The company is pursuing a 505(b)(2) new drug application regulatory pathway for its DehydraTECH-CBD formulation for hypertension, which could enable a faster route to commercial approval compared to traditional pathways.</li><li>Competitive Landscape: Lexaria operates in a highly competitive biopharmaceutical industry, facing competition from major pharmaceutical companies and emerging biotechnology firms. The company believes its DehydraTECH technology offers unique advantages in terms of API delivery and product formulation.</li></ul> Strategic Initiatives <ul><li>Strategic Initiatives: Lexaria Bioscience Corp. is advancing its DehydraTECH technology through several R&amp;D activities, focusing on enhancing GLP-1 and GIP drugs, and exploring new applications in pharmaceuticals, foods, beverages, cosmetics, and nutraceuticals. The company is actively pursuing technology licensing opportunities to generate long-term revenue streams and has been granted six new patents in fiscal 2025, expanding its intellectual property portfolio.</li><li>Capital Management: During fiscal 2025, Lexaria raised approximately $6 million through registered direct offerings and ATM offerings. The company issued 2,000,000 shares of common stock and warrants in April 2025, and 1,633,987 shares in October 2024, with additional warrants issued. The company also terminated its ATM agreement in September 2025. As of August 31, 2025, Lexaria had 7,298,171 warrants outstanding. The company has not declared or paid any dividends and does not anticipate doing so in the near future.</li><li>Future Outlook: Lexaria anticipates a decrease in revenue from technology licensing in fiscal 2026 due to the expiration of a key license agreement. The company plans to continue investing in R&amp;D, focusing on DehydraTECH-powered drugs for diabetes, weight loss, and hypertension. Lexaria is exploring equity financing and strategic partnerships to support its operations and R&amp;D efforts, with a focus on securing additional funding to meet its financial obligations and continue as a going concern.</li></ul> Challenges and Risks <ul><li>Regulatory Risks: The company must navigate complex regulatory environments to obtain necessary approvals for its DehydraTECH-enhanced products. Delays or failures in obtaining regulatory approvals could adversely affect business prospects.</li><li>Intellectual Property Risks: Protecting intellectual property is critical, yet challenging, as patents may not be granted or could be invalidated, limiting the company's competitive edge.</li><li>Operational Risks: The company relies on third parties for R&amp;D and manufacturing, which introduces risks related to performance and compliance with protocols.</li><li>Market Risks: Intense competition may lead to competitors developing superior technologies, potentially rendering Lexaria's offerings obsolete.</li><li>Financial Risks: There is substantial doubt about the company's ability to continue as a going concern due to limited cash reserves and the need for additional financing.</li><li>Security Risks: The company is vulnerable to cybersecurity threats, which could lead to data breaches and harm its reputation.</li><li>Management's Discussion and Analysis: Management highlights the need for additional financing to support ongoing R&amp;D and operational activities. The company is exploring equity financing and strategic partnerships to address financial challenges. The expiration of a key licensing agreement with Premier poses a risk to future revenue streams, emphasizing the need for new licensing agreements.</li><li>Market Risk Disclosures: The company is exposed to market risks, including fluctuations in demand for its technology and potential changes in regulatory environments that could impact the commercialization of its products. The competitive landscape in the biotechnology sector poses a significant challenge, requiring continuous innovation and adaptation to maintain market relevance.</li></ul>SEC Filing: Lexaria Bioscience Corp. [ LEXX ] - 10-K - Nov. 26, 2025</div></div>

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Lexaria Bioscience Corp. released its SEC 10-K report, highlighting a 52% revenue increase to $0.71 million, driven by licensing growth. Despite a strong gross profit margin, the company faced a net loss of $11.91 million due to higher R&D expenses. Lexaria focuses on enhancing drug delivery with its DehydraTECH technology, holding 56 patents. Strategic initiatives include R&D on GLP-1/GIP drugs and CBD, licensing strategies, and capital management. Challenges include regulatory, IP, operational, market, and financial risks, with concerns about its ability to continue as a going concern.

Lexaria Bioscience Corp. SEC 10-K Report