Lexaria Bioscience Reports 40% Revenue Increase but Faces $9.2 Million Net Loss

Lexaria Bioscience Corp. reported its financial results for the nine months ending May 31, 2025, revealing a significant increase in revenue and ongoing operational challenges. The company generated $531,923 in revenue during this period, up from $380,278 in the same period last year, marking a 40% increase. This growth was primarily driven by higher licensing fees from its proprietary DehydraTECH technology, which accounted for $522,000 of the total revenue. However, Lexaria also reported a net loss of $9.2 million, compared to a loss of $3.6 million for the same period in 2024, reflecting a substantial increase in operational expenses.

The increase in losses was largely attributed to a significant rise in research and development (R&D) expenditures, which soared to $6.4 million from $1.4 million year-over-year. This increase was driven by the completion of manufacturing for investigational drug products and the conduct of clinical trials related to GLP-1 drugs. Additionally, consulting fees and salaries rose due to the transition of leadership roles and the engagement of new executives. General and administrative expenses also increased, influenced by foreign currency transaction losses and higher insurance premiums.

Operationally, Lexaria has made strides in its R&D initiatives, particularly in the area of GLP-1 and GIP drugs. The company completed several studies, including a human pilot study that demonstrated a 47% reduction in adverse events for its DehydraTECH-enhanced tirzepatide compared to the injected version. Furthermore, Lexaria is advancing its clinical studies in Australia, with participant enrollment completed for a 12-week chronic study involving DehydraTECH formulations. The company is actively seeking partnerships to further its research and development efforts.

As of May 31, 2025, Lexaria had cash and cash equivalents of approximately $4.6 million, which it plans to use to settle $1.5 million in current liabilities. Despite this, the company expressed substantial doubt about its ability to continue as a going concern within the next year, citing the need for additional capital to fund ongoing operations and R&D activities. Lexaria raised $6 million in net proceeds from securities sales during the nine-month period, but it acknowledged that its existing cash resources, combined with expected inflows from licensing agreements, may not be sufficient to meet its financial obligations.

Looking ahead, Lexaria anticipates continued operational losses as it invests in R&D and seeks to expand its market presence. The company is focused on optimizing its DehydraTECH formulations and exploring potential partnerships to enhance its financial stability. However, the uncertainty surrounding its ability to secure additional funding poses a significant risk to its future operations and growth prospects.