Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Nov. 05, 2019 | Feb. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Lexaria Bioscience Corp. | ||
Entity Central Index Key | 0001348362 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 78,787,134 | ||
Entity Public Float | $ 83,889,033 | ||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Current | |||
Cash and cash equivalents | $ 1,285,147 | $ 1,727,184 | $ 2,533,337 |
Marketable Securities (Note 21) | 64,214 | 10,151 | |
Accounts receivable (Note 7) | 273,145 | 265,751 | |
Inventory (Note 8) | 127,396 | 87,233 | |
Prepaid expenses and deposit (Note 19) | 68,927 | 193,732 | |
Total Current Assets | 1,818,829 | 2,284,051 | |
Capital assets, net | |||
Patent (Note 9) | 265,127 | 146,538 | |
Property & Equipment (Note 10) | 591,263 | 1,237 | |
Total Non-Current Assets | 856,390 | 147,775 | |
TOTAL ASSETS | 2,675,219 | 2,431,826 | |
Current | |||
Accounts payable and accrued liabilities (Note 11) | 136,411 | 35,785 | |
Due to a related party (Note 16) | 48,096 | 7,855 | |
Total Current Liabilities | 184,507 | 43,640 | |
TOTAL LIABILITIES | 184,507 | 43,640 | |
STOCKHOLDERS' EQUITY | |||
Share Capital (Note 13) Authorized: 220,000,000 common voting shares with a par value of $0.001 per share Issued and outstanding: 78,787,134 common shares at August 31, 2019 and 75,533,471 common shares at August 31, 2018 | 78,787 | 75,533 | |
Additional paid-in capital (Note 13, 14) | 26,172,453 | 22,095,682 | |
Accumulated Other Comprehensive Income | (14,247) | ||
Deficit | (23,868,202) | (19,768,782) | |
Equity attributable to shareholders of the Company | 2,383,038 | 2,388,186 | 2,767,831 |
Non-controlling Interest | 107,674 | ||
Total Stockholders' Equity | 2,490,712 | 2,388,186 | $ 2,767,831 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,675,219 | $ 2,431,826 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Aug. 31, 2019 | Aug. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 220,000,000 | 220,000,000 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares, issued | 78,787,134 | 75,533,471 |
Common stock, shares, outstanding | 78,787,134 | 75,533,471 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue (Note 15) | $ 222,610 | $ 433,287 |
Cost of Goods Sold | 22,893 | 25,185 |
Gross profit | 199,717 | 408,102 |
Expenses | ||
Accounting and audit | 77,388 | 85,553 |
Depreciation and amortization (Note 9, 10) | 60,550 | 2,307 |
Advertising and promotions | 515,360 | 489,058 |
Bad Debt | 75,000 | |
Consulting (Notes 13, 14, 16) | 1,444,735 | 5,332,398 |
Investor relations | 203,893 | 188 |
Legal and professional | 670,863 | 289,062 |
Office and miscellaneous | 297,209 | 217,655 |
Research and development | 555,730 | 492,864 |
Travel | 100,587 | 99,236 |
Wages & Salaries | 333,199 | |
Gain on disposal of assets | (3,998) | |
Unrealized Loss on marketable securities (Note 21) | 16,434 | |
Inventory write-off (Note 8) | 7,182 | 12,966 |
Total Operating Expense | 4,358,130 | 7,017,289 |
Net (loss) and comprehensive loss for the period | (4,158,413) | (6,609,187) |
Net (loss) and comprehensive loss attributable to: | ||
Common shareholders | (4,099,420) | (6,598,843) |
Non-Controlling Interest | $ (58,993) | $ (10,344) |
Basic and diluted (loss) per share (in dollars per share) | $ (0.05) | $ (0.09) |
Weighted average number of common shares outstanding | ||
Basic and diluted (in shares) | 77,792,263 | 70,960,416 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows used in operating activities | ||
Net loss and comprehensive loss | $ (4,158,413) | $ (6,609,187) |
Adjustments to reconcile net loss to net cash Used in operating activities: | ||
Stock based compensation | 626,692 | 2,602,239 |
Depreciation and amortization | 60,550 | 2,307 |
Inventory write-off (Note 8) | 7,182 | 12,966 |
Bad Debt Expense | 75,000 | |
Unrealized loss on marketable securities | 16,434 | |
Unrealized foreign exchange | 602 | |
Common shares issued for services | 234,500 | 781,056 |
Warrants issued for services | 52,817 | 1,063,270 |
Change in working capital | ||
Accounts receivable | (138,644) | (245,458) |
Inventory | (47,345) | (33,025) |
Prepaid expenses and deposits | 124,805 | (44,041) |
Accounts payable and accrued liabilities | 100,626 | 3,210 |
Due to related parties | 40,241 | (34,835) |
Deferred revenue | (17,083) | |
Net cash used in operating activities | (3,005,555) | (2,517,979) |
Cash flows used in investing activities | ||
Investment in Poviva | (70,000) | |
Patent | (122,982) | (85,399) |
Property & Equipment | (646,183) | |
Net cash used in investing activities | (769,165) | (155,399) |
Cash flows from financing activities | ||
Investment from NCI | 1,000,000 | |
Proceeds from issuance of equity | 2,332,683 | 1,867,224 |
Net cash from financing activities | 3,332,683 | 1,867,224 |
Decrease in cash and cash equivalents | (442,037) | (806,153) |
Cash and cash equivalents, beginning of year | 1,727,184 | 2,533,337 |
Cash and cash equivalents, end of year | 1,285,147 | 1,727,184 |
Supplemental information of cash flows: | ||
Income taxes paid in cash | 13,919 | |
Common shares issued to settle AP | 12,000 | |
Reclassification of NCI to additional paid in capital on acquisition | $ 833,333 | $ 318,820 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | DEFICIT | NCI | AOCI | Total |
Balance at Aug. 31, 2017 | $ 67,976 | $ 16,108,270 | $ (13,169,939) | $ (238,476) | $ 2,767,831 | |
Balance (Shares) at Aug. 31, 2017 | 67,975,761 | |||||
Non-controlling Interest | (318,820) | 248,820 | (70,000) | |||
Shares issued for services | $ 648 | 780,408 | 781,056 | |||
Shares issued for services (Shares) | 647,690 | |||||
Stock based compensation | 2,602,239 | 2,602,239 | ||||
Warrants issued for services | 1,063,270 | 1,063,270 | ||||
Exercise of stock options | $ 546 | 93,156 | $ 93,702 | |||
Exercise of stock options (Shares) | 545,875 | 545,875 | ||||
Exercise of warrants | $ 6,363 | 1,767,159 | $ 1,773,522 | |||
Exercise of warrants (Shares) | 6,364,145 | |||||
Net loss | (6,598,843) | (10,344) | (6,609,187) | |||
Other comprehensive income (loss) | $ (14,247) | (14,247) | ||||
Balance at Aug. 31, 2018 | $ 75,533 | 22,095,682 | (19,768,782) | (14,247) | 2,388,186 | |
Balance (Shares) at Aug. 31, 2018 | 75,533,471 | |||||
Shares issued for services | $ 250 | 234,250 | 234,500 | |||
Shares issued for services (Shares) | 250,000 | |||||
Stock based compensation | 626,692 | 626,692 | ||||
Warrants issued for services | 52,817 | 52,817 | ||||
Exercise of stock options | $ 430 | 65,820 | $ 66,250 | |||
Exercise of stock options (Shares) | 430,000 | 430,000 | ||||
Exercise of warrants | $ 1,627 | 794,496 | $ 796,123 | |||
Exercise of warrants (Shares) | 1,626,513 | |||||
Private Placement | $ 947 | 1,469,363 | 1,470,310 | |||
Private Placement (Shares) | 947,150 | |||||
Net loss | (4,099,420) | (4,158,413) | ||||
Non-controlling interest | (58,993) | (58,993) | ||||
Other comprehensive income (loss) | $ 14,247 | 14,247 | ||||
Subsidiary Investment | 833,333 | 166,667 | 1,000,000 | |||
Balance at Aug. 31, 2019 | $ 78,787 | $ 26,172,453 | $ (23,868,202) | $ 107,674 | $ 2,490,712 | |
Balance (Shares) at Aug. 31, 2019 | 78,787,134 |
Organization, Business and Goin
Organization, Business and Going Concern | 12 Months Ended |
Aug. 31, 2019 | |
Organization, Business And Going Concern [Abstract] | |
Organization, Business and Going Concern | 1. Organization, Business and Going Concern Lexaria Bioscience Corp. (“Lexaria”, or the “Company”) was formed on December 9, 2004 under the laws of the State of Nevada. In March of 2014, the Company began its entry into the bioscience and alternative health and wellness business and in May 2016, the Company commenced out-licensing its patented DehydraTECH™ technology (the “Technology”) for improved delivery of bioactive compounds that promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company has its office in Kelowna, BC, Canada. The Company’s consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States (US GAAP) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The recurring losses from operations and net capital deficiency raise substantial doubt about the Company’s ability to continue as a going concern. The Company requires additional funds to maintain its operations and developments. Management’s plans in this regard are to raise equity and debt financing as required, but there is no certainty that such financing will be available or that it will be available at acceptable terms. The outcome of these matters cannot be predicted at this time. |
Business Risk and Liquidity
Business Risk and Liquidity | 12 Months Ended |
Aug. 31, 2019 | |
Business Risk And Liquidity [Abstract] | |
Business Risk and Liquidity | 2. Business Risk and Liquidity The Company is subject to several categories of risk associated with its operating activities. The production and sale of alternative health products is an emerging industry in which business practices are not yet standardized and are subject to frequent scrutiny and evaluation by federal, state, provincial, and municipal authorities, academics, and media outlets, among others. Although we intend to develop our businesses in accordance with best ethical practices, we may suffer negative publicity if we, our partners, contractors, or customers are found to have engaged in any environmentally insensitive practices or other business practices that are viewed as unethical. Our operations may require licenses and permits from various governmental authorities. We believe that we will be able to obtain all necessary licenses and permits under applicable laws and regulations for our operations and believe we will be able to comply in all material respects with the terms of such licenses and permits. However, such licenses and permits are subject to change in various circumstances. There can be no guarantee that we will be able to obtain or maintain all necessary licenses and permits, and failing to obtain or retain required licenses could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the cultivation, processing, distribution, or utilization of Cannabis or Cannabis derived components. All of Lexaria’s consumer products utilize legally sourced Hemp and Hemp components in their production. Lexaria does have an ancillary involvement risk via out-licensing of its patented Technology to licensees that choose to utilize its Technology to manufacture products that contain locally or state approved but federally regulated and controlled contents. There can be no guarantee that changes in the regulatory framework and environment will not occur and such changes could have a materially adverse effect on the Company. Lexaria and its subsidiaries are not involved directly or indirectly in the production or sale of any products containing nicotine. Products containing nicotine have historically been involved in litigation in the USA. Lexaria’s corporate licensee may introduce products containing nicotine that utilize Lexaria’s technology to the US consumer market, which could therefore introduce third-party risks to Lexaria. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies a) Accounting Principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. All amounts, unless otherwise stated, are in United States dollars. b) Revenue Recognition Product Revenue Revenue from the sale of products is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured, which typically occurs upon shipment. The Company reports its sales net of the amount of actual sales returns. Sales tax collected from customers is excluded from net sales. Licensing Revenue from Intellectual Property We recognize revenue for License fees at a point in time following the transfer of our intellectual property, our patented lipid nutrient infusion technology DehydraTECH™ for infusing Active Pharmaceutical Ingredients, to the licensee, which typically occurs on delivery of documentation. Usage Fees from Intellectual Property We recognize revenue for Usage fees when usage of our DehydraTECH intellectual property occurs by licensees infusing an Active Pharmaceutical Ingredient into one or more of their product lines for sale. c) Inventory and Cost of Sales The Company’s inventory consists of finished goods, work in progress, and raw materials. In all classes, inventory is valued at the lower of cost or market. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities. d) Cash and Cash Equivalents Cash equivalents comprise certain highly liquid instruments with a maturity of three months or less when purchased. As of August 31, 2019, and August 31, 2018, the Company held cash only. e) Equipment Equipment is stated at cost less accumulated depreciation and impairment, and depreciated using the straight-line method over their useful lives or by units of production. f) Patents Capitalized patent costs represent legal costs incurred to establish patents. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and are expensed as incurred. Capitalized patent costs are amortized on a straight-line basis over the remaining life of the patent. The Company was granted its first patent on October 25, 2016, with a legal life of 20 years. Additional patent information is in Note 9. g) Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expenses in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the Board of Directors for their services on the Board of Directors, the Company estimates the grant date fair value of each option award 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 life of the option, risk-free interest rates and expected dividend yields of the common stock. Stock-based payments issued to non-employees are recorded at their fair values and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. For equity instruments granted to non-employees, the Company recognizes stock-based compensation expense on vesting. h) Loss Per Share The Company applies the guidance in ASC 260 Earnings Per Share. Loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share is equivalent to basic loss per share because the potential exercise of the equity-based financial instruments was anti-dilutive. i) Foreign Currency Translation The Company s operations are located in the United States of America and Canada, and it has offices in Canada. The Company maintains its accounting records in U.S. Dollars, as follows: At the transaction date, each asset, liability, revenue and expense that was acquired or incurred in a foreign currency is translated into U.S. dollars by using the exchange rate in effect at that date. At the period end, monetary assets and liabilities are translated at the exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in profit or loss. j) Financial Instruments ASC 820 Fair Value Measurements and Disclosures, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 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. ASC 820 prioritizes the inputs into three levels that may be 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, accounts payable and accrued liabilities, and due to related parties. The carrying amounts of cash, accounts and other receivable, accounts payable and accrued liabilities, and due to related parties approximate their fair values due to their short maturities or quoted market prices. The Company is located in Canada, which results in exposure to market risks from changes 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 Company does not hold a significant position in foreign currencies, such as the Canadian dollar, and the impact of a change in a few basis points for USD/CAD is not expected to be material. k) Income Taxes The Company applies the guidance in ASC 740, Income Taxes, which requires the Company to recognize 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. l) Impairment of Long-Lived Assets Long-lived assets, including equipment, and intangible assets, such as 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 recovered. 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 the 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. m) Comprehensive Income The Company applies ASC 220, Comprehensive Income, which establishes standards for reporting and presentation of comprehensive income, its components and accumulated balances. The Company discloses this information on its Statement of Stockholders Equity. Comprehensive income comprises equity changes except those transactions resulting from investments by owners and distributions to owners. n) Credit Risk and Receivable Concentration The Company places its cash with a high credit quality financial institution. As of August 31, 2019, the Company had approximately $1,285,147 in the bank (August 31, 2018: $1,727,184). As at August 31, 2019 we had $106,000 (2018 $199,375) in Intellectual Property Territory License fees receivable (Note 7) consisting of amounts due from three licensees (2018 three). These receivable amounts are based on contractual terms for payments that are payable within twelve months of signing the definitive agreements or routine IP Usage Fees. To date these licensees have performed all of their required obligations. The Company incurred $75,000 in bad debt in fiscal 2019. As at August 31, 2019, the Company had $161,418 (2018 - $61,176) in sales tax receivable (Note 6). The Company considers its credit risk to be low for such receivables. o) Commitments and Contingencies In accordance with ASC 450-20, Accounting for Contingencies, the Company records accruals for such 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. Historically, the Company has not experienced any material claims. p) Research and Development Research and development costs are expensed as incurred. |
Basis of Consolidation
Basis of Consolidation | 12 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | 4. Basis of Consolidation These consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries; Lexaria CanPharm ULC, PoViva Corp., Lexaria Hemp Corp., Kelowna Management Services Corp. and Lexaria Pharmaceutical Corp, and our subsidiary Lexaria Nicotine LLC. On January 15, 2019, the Company announced the initial investment of $1,000,000 from Altria Ventures Inc., an indirect wholly owned subsidiary of Altria Group, Inc., for a 16.667% equity interest along with certain other rights in Lexaria Nicotine LLC. All significant intercompany balances and transactions have been eliminated. |
Estimates and Judgments
Estimates and Judgments | 12 Months Ended |
Aug. 31, 2019 | |
Estimates And Judgments [Abstract] | |
Estimates and Judgments | 5. Estimates and Judgments The preparation of financial statements in conformity with U.S GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of the Company’s accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations. The Company reviews these estimates, judgments and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. 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: a) The Valuation of Deferred Tax Assets Judgement 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, deferred tax assets have not been recognized by Lexaria. b) Value of Stock Options and Warrants The Company provides compensation benefits to its employees, directors, officers, 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 is 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 life determination could have a material impact on the Company s profit and loss for the periods presented. All estimates used in the model are based on historical data which may not be representative of future results. |
Recent Accounting Guidance
Recent Accounting Guidance | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Guidance | 6. Recent Accounting Guidance In January 2016, FASB issued an ASU, Subtopic 82510, to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The Company adopted the standard September 1, 2018. The impact was not material and the $14,247 impact on the Company’s financial statements was included in income in the current period. In February 2016 FASB issued ASU No. 201602, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and the lessors. The new standard requires the lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. The classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on its consolidated financial statements. In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for Lexaria beginning September 1, 2020, with early adoption permitted. Application of the amendments is through a cumulative effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements. In February 2018, the FASB issued ASU No. 201802, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted by the U.S. federal government on December 22, 2017 (the “2017 Tax Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements and related disclosures but does not expect it to have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU No. 201807, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share Based Payment Accounting. This is a simplification that involves several aspects of accounting for nonemployee share-based payments resulting from expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The new standard will be effective for Lexaria for September 1, 2019. The Company does not expect it to have a material impact on its consolidated financial statements. |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Aug. 31, 2019 | |
Accounts and Notes Receivable, Net [Abstract] | |
Accounts and Other Receivables | 7. Accounts and Other Receivables August 31 August 31 2019 2018 $ $ Trade and deposits receivable 5,727 5,200 Territory License Fee receivable 106,000 199,375 Sales tax receivable 161,418 61,176 273,145 265,751 |
Inventory
Inventory | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 8. Inventory August 31 August 31 2019 2018 $ $ Raw materials 45,068 29,355 Work in progress - 9,752 Finished goods 82,328 48,126 127,396 87,233 During the year ended August 31, 2019, the Company wrote down $7,182 (2018 - $12,966) of inventory to reflect its net realisable value. |
Intellectual Property
Intellectual Property | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intellectual Property | 9. Intellectual Property On November 12, 2014, the Company signed an agreement with Poppy’s Teas LLC. whereby it acquired a 51% interest. Subsequent to signing the agreement, Poppy’s Teas LLC effected a name change to PoViva Tea LLC. The Company acquired the remaining 49% ownership interest in PoViva Tea, LLC in October 2017 via compensation of $70,000, a waiver on certain debts owed to Lexaria, and a 5%, 20-year royalty on net profits of ViPova Tea TM The following is a list of US capitalized patents held by the Company Issued Patent # Patent Issuance Date Patent Family US 9,474,725 B1 10/25/2016 Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof US 9,839,612 B2 12/12/2017 US 9,972,680 B2 05/15/2018 US 9,974,739 B2 05/22/2018 US 10,084,044 B2 09/25/2018 US 10,103,225 B2 10/16/2018 US 10,381,440 08/13/2019 US 10,374,036 08/06/2019 The Company also holds non-capitalized patents outside the US. A continuity schedule for patents is presented below: August 31 August 31 2019 2018 $ $ Balance – Beginning 146,538 62,827 Addition 122,982 85,399 Amortization* (4,393 ) (1,688 ) Balance – Ending 265,127 146,538 * The patents are amortized over their legal life of 20 years. |
Property & Equipment
Property & Equipment | 12 Months Ended |
Aug. 31, 2019 | |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | |
Property & Equipment | 10. Property & Equipment Cost Period Amortization Accumulated Amortization Net Balance August 31, 2018 $ $ $ $ Equipment 3,094 (619 ) (1,857 ) 1,237 3,094 (619 ) (1,857 ) 1,237 Cost Period Amortization Accumulated Amortization Net Balance August 31, 2019 $ $ $ $ Leasehold improvements 259,981 (33,342 ) (33,342 ) 226,638 Computers 63,964 (12,187 ) (12,187 ) 51,776 Furniture fixtures equipment 34,220 (4,205 ) (6,062 ) 28,159 Lab equipment 291,235 (6,546 ) (6,546 ) 284,689 649,400 (56,281 ) (58,137 ) 591,262 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Aug. 31, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities | 11. Accounts Payable and Accrued Liabilities August 31 August 31 2019 2018 $ $ Accounts Payable Trades Payable 31,463 14,378 Sales Tax Payable 63,616 1,869 Accrued Liabilities Trades Payable 41,332 19,538 Balance – Ending 136,411 35,785 |
Unearned Revenue
Unearned Revenue | 12 Months Ended |
Aug. 31, 2019 | |
Unearned Revenue [Abstract] | |
Unearned Revenue | 12. Unearned Revenue On May 14, 2016, the Company entered into a licensing agreement (the “Licensing Agreement”) with an arm’s length party (the “Licensee”) allowing the Licensee, for a two-year period, to utilize the Company’s Technology to create, test, manufacture, and sell marijuana-infused consumable and/or topical products, in the state of Colorado, with an option of extending the terms of the Licensing Agreement to Washington, Oregon, and California (the “Territorial License”). In addition to the granting of the license, the Company is required to provide support services to the Licensee in connection with the use of the Company’s Technology during the term of the Licensing Agreement. The Company determined that the provision of the support services were a separate deliverable under the licensing agreement. Accordingly, the Company recognized revenue on a pro-rated basis over the term of the Licensing agreement. The Company has since determined that the support services form an insignificant portion of the licensing contract as they are primarily completed prior to delivery of the technology and that delivery of the license is complete when the Technology is transferred to the Licensee. During the year ended August 31, 2019, the Company recognized $Nil (2018 $17,083) (Note 14), of unearned revenue. August 31 2019 $ August 31 2018 $ Balance – Beginning - 17,083 Earned revenue (Note 15) - (17,083 ) Balance – Ending - - |
Common Shares and Warrants
Common Shares and Warrants | 12 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Common Shares and Warrants | 13. Common Shares and Warrants Fiscal 2019 Activity During the year ended August 31, 2019 the Company closed a non-brokered private placement for 947,150 Units priced at $1.60 each. Each Unit consists of one common share and one Share purchase warrant. Each warrant shall entitle the holder to acquire one common share at a price of $2.25 per Share for a period of 24 months. The Company also issued 28,175 broker warrants. The broker warrants have a term of 24 months and are each exercisable into one common share of the Company at a price of $2.25. The fair value of these broker warrants was determined to be $16,095, which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. The company granted a total of 107,737 broker warrants with a value of $6,484 that were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. The company granted a total of 100,00 warrants pursuant to an agreement with a vendor valued at $52,817 that were recorded as an expense within investor relations. During the year ended August 31, 2018 the Company recognized $51,448 in consulting expense for warrants previously granted to a consultant upon vesting. Fiscal 2018 Activity On October 27, 2017 the Company extended the expiration date of warrants originally issued on January 9, 2017, with a one-year expiration date. The warrant quantity and exercise price remain unchanged, 500,000 warrants exercisable at $0.44, will now expire on January 9, 2019. There was a $Nil effect on the modification of the warrants. During the year ended August 31, 2018 the Company granted a total of 1,000,000 warrants with a fair value of $1,011,822 pursuant to consulting agreements signed during the year. The value of the warrants was recorded in consulting fees on the statement of operations. The company also granted a total of 35,913 warrants with a value of $21,646 which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil. During the year ended August 31, 2018 the Company recognized $51,448 in consulting expense for warrants previously granted to a consultant upon vesting. A summary of share issuance is presented relating to option and warrant exercises, agreement requirements and debt settlement is presented below: Type of Issuance Number of Shares Total Value Warrant exercise (1) 1,626,513 796,122 Option exercise 430,000 66,250 Private placement 947,150 1,515,440 Per agreements (2) 250,000 234,500 3,253,663 $ 2,612,312 (1) Includes 384,212 broker warrants exercised for gross proceeds of $191,742 (2) The Company awarded the restricted common shares as required by consulting contracts A continuity schedule for warrants is presented below: Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2017 8,844,506 0.29 Cancelled/Expired (230,000 ) 0.17 Exercised (6,364,145 ) 0.28 Issued 1,035,913 1.48 Balance August 31, 2018 3,286,274 0.72 Cancelled/Expired (17,498 ) 0.59 Exercised (1,626,513 ) 0.49 Issued 1,183,062 1.99 Balance August 31, 2019 2,825,325 1.38 The fair value of share purchase warrants granted as broker warrants, compensation units, and compensatory warrants, was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: August 31 2019 August 31 2018 Expected volatility 1% – 117% 100% – 154% Risk-free interest rate 2.31% – 2.87% 1.21% – 2.60% Expected life 1 day – 2 years 1.21 – 3 years Dividend yield 0.00% 0.00% Estimated fair value per warrant $Nil – $0.57 $0.40 – $1.48 A summary of warrants outstanding as of August 31, 2019 is presented below: # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 250,000 0.25 years 0.83 500,000 0.38 years 1.83 975,325 1.17 years 2.25 100,000 1.73 years 0.96 250,000 1.73 years 1.55 750,000 2.11 years 0.14 2,825,325 1.27 years 1.38 |
Stock Options
Stock Options | 12 Months Ended |
Aug. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | 14. Stock Options The Company has established its 2007 Equity Incentive Plan, whereby the board of directors may grant up to 412,500 stock options to eligible employees and directors, the 2010 Stock Option Plan whereby the board of directors may, from time to time, grant up to 1,512,500 stock options to officers and employees, and its 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 2,107,500 stock options to directors, officers, employees, and consultants, the Equity Incentive Plan whereby the board of directors may, from time to time, grant up to 7,838,713 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised no later than five years from the date of grant or such lesser period as determined by the Company’s board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant. The vesting terms of each grant are set by the board of directors. Fiscal 2019 Activity The Company granted in the period ending August 31, 2019: Quantity Exercise Price $ Life (Years) 390,000 (1) 1.27 5 240,000 (1) 1.06 5 30,000 (1) 1.16 5 350,000 0.99 5 440,000 (1) 0.99 5 48,000 (1) 0.96 5 100,000 0.81 5 450,000 (1) 0.81 5 2,048,000 1.00 (1) Fiscal 2018 Activity The Company granted in the period ending August 31, 2018, 200,000 stock options with an exercise price of $0.83 and an expiration date of December 1, 2022 to an officer of the Company, pursuant to an existing management contract and stock options with an exercise price of $1.53 to directors, officers, employees and consultants that enable the option holders to purchase up to 1,725,000 common shares of the Company. 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, 2017 3,320,875 0.15 Exercised (545,875 ) 0.17 Granted 2,025,000 1.49 Balance August 31, 2018 4,800,000 0.71 Expired/Cancelled (1,415,000 ) 0.66 Exercised (430,000 ) 0.15 Granted 2,048,000 1.00 Balance August 31, 2019 (Outstanding) 5,003,000 0.89 3.34 791,800 Balance August 31, 2019 (Exercisable) 3,961,000 0.90 3.03 752,300 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 2019 August 31 2018 Expected volatility 100% – 144% 127% – 131% Risk-free interest rate 1.42% – 2.89% 2.13% – 2.74% Expected life 5 years 5 years Dividend yield 0.00% 0.00% Estimated fair value per option $0.60 - $1.07 $0.70 – $1.73 |
Revenues
Revenues | 12 Months Ended |
Aug. 31, 2019 | |
Revenues [Abstract] | |
Revenues | 15. Revenues August 31 2019 $ August 31 2018 $ Product sales 24,282 16,967 Licensing revenue (Note 11) 198,000 415,183 Freight revenue 328 1,137 222,610 433,287 The Company recognized licensing revenue on a pro-rated basis over the term of the Licensing Agreement and additional licensing fees as they were earned. The Company has determined that the support services form an insignificant portion of the licensing contract as they are substantially completed prior to delivery of the DehydraTECH™ technology (the Technology) and that delivery of the license is complete when the Technology is transferred to the licensee. Additional licensing fees and royalties are recognized as they are earned. During the year ended August 31, 2019, the Company recognized $Nil of deferred revenue (Note 12) and $198,000 of additional Intellectual Property Licensing fees. There was a slight increase in product sales in the current year compared to the previous years as the Company was able to solve some payment processing issues later in the fiscal year. The additional Licensing fees consist of IP licensing fees for transfer of the Technology with the signing of definitive agreements for the DehydraTECH technology. The additional Licensing fees include payments due upon transfer of the Technology and installment payments that are receivable within 12 months (Note 7). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions Management, consulting and accounting services Cash $ % Non-Cash (2) $ % Aug 31 2019 Total $ Cash $ % Non-Cash (2) % Aug 31 2018 Total $ C.A.B Financial Services (1) 223,280 100 0 0 223,280 144,000 11 1,212,269 89 1,356,269 M&E Services Ltd. (1) 112,377 100 0 0 112,377 85,663 13 568,737 87 654,401 Docherty Management Limited (1) 195,740 100 0 0 195,740 140,471 11 1,148,152 89 1,288,622 Company controlled by a director 14,932 12 112,718 88 127,650 12,000 15 65,686 85 77,686 Directors 16,138 9 172,330 91 188,468 - 0 65,686 100 65,686 562,467 285,048 847,515 382,134 3,060,530 3,442,664 (1) (2) August 31, 2018 Common Shares Fair Value Cash Docherty Management (Note 13,16) (A) 345,250 $ 458,305 $ 164,361 CAB (Note 13,16) (B) 143,225 $ 192,195 $ 100,475 M&E Services Ltd (Note 13,16) 41,666 $ 34,166 - (A) (B) Due to related parties: As at August 31, 2019, $48,096 (August 31, 2018 - $7,855) was payable to related parties included in due to related parties. The related party transactions are recorded at the exchange amount established and agreed to between the related parties. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information The Company’s operations involve the development and usage, including licensing, of its proprietary nutrient infusion Technology. Lexaria is centrally managed and its chief operating decision makers, being the president and the CEO, use the consolidated and other financial information supplemented by revenue information by category of alternative health consumer products and technology licensing to make operational decisions and to assess the performance of the Company. The company has identified two reportable segments: Intellectual Property Licensing and Consumer Products. Licensing revenues are significantly concentrated on three licensees. IP Licensing Consumer Products Corporate Consolidated Total External Revenue $ 198,000 $ 24,610 $ - $ 222,610 CoGS $ - $ (22,893 ) $ - $ (22,893 ) Operating Expenses $ (1,211,733 ) $ (968,947 ) $ (2,177,450 ) $ (4,358,130 ) Segment Loss $ (1,013,733 ) $ (967,230 ) $ (2,177,450 ) $ (4,158,413 ) Total Assets $ 645,969 $ 127,396 $ 1,901,854 $ 2,675,219 |
Commitments, Significant Contra
Commitments, Significant Contracts and Contingencies | 12 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Significant Contracts and Contingencies | 18. Commitments, Significant Contracts and Contingencies Management and Service Agreements As at August 31, 2019, the Company is party to the following contractual commitments: Party Monthly Commitment Expiry Date C.A.B Financial Services (6) CAD $29,167 January 1, 2022 Docherty Management Ltd. (6) CAD $25,000 January 1, 2022 M&E Services Ltd. (1)(2) CAD $12,960 June 1, 2021 Corporate Development (3)(4) CAD $1,000 Month to Month Corporate Development (3)(4) CAD $8,000 Month to Month Investor relations and communications – Alex Blanchard Capital (1) CAD $7,500 Month to Month Office Management (7) CAD $10,000 August 15, 2022 Research & Development CAD $3,854 Month to Month Office Rent (5) CAD $4,823 November 15, 2023 Revenue Incentive Milestones (1) 100,000 common shares issuable upon the Company achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period for the first 12 months of the contract, plus a further 50,000 common shares issuable upon achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period, during the 13th - 24th months of the contract. If the Company achieves non-refundable revenues of $500,000 in any fiscal quarter, a further 200,000 common shares may be issuable during the first 12 months of the contract and 100,000 common shares during the 13th - 24th months of the contract. Intellectual Property Milestones (2) During the term of the agreement, for each provisional patent application substantively devised and successfully created, written, and filed with the U.S. Patent Office for the Company’s Technology, 250,000 restricted common shares of the Company will be issuable. Corporate Development Milestones (3) For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 100,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; a restricted common share award of 50,000 Company shares may be achieved; this clause is limited to one payment per customer during the 12-month period, but payable on each customer that meets these sales/licensing thresholds. (4) For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 200,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 100,000 Company shares; this clause is limited to one payment per fiscal quarter. Corporate Offices (5) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. Base rent is CDN$12.56 per square foot until November 14, 2019, CDN$12.86 per square foot until November 14, 2021 and CDN$13.21 per square foot until November 14, 2023 plus common area maintenance and taxes. Performance Incentives (6) A performance bonus equal to 50% of the annual compensation may be payable upon the completion of certain performance criteria as determined by the board of directors of Lexaria. Compensation equal to 2% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company’s approved stock option plans. (7) Compensation equal to 0.4% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company’s approved stock option plans. |
Prepaid Expenses
Prepaid Expenses | 12 Months Ended |
Aug. 31, 2019 | |
Prepaid Expense, Current [Abstract] | |
Prepaid Expenses | 19. Prepaid Expenses Prepaid expenses consist of the following at August 31, 2019 and August 31, 2018: August 31 2019 $ August 31 2018 $ Advertising & Conferences 39,143 137,654 Consulting Fees - 4,555 Office & Insurance 29,784 21,533 Legal Fees - 29,990 68,927 193,732 |
Income Tax
Income Tax | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 20. Income Tax 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, 2019 and 2018: August 31 2019 $ August 31 2018 $ Loss before taxes (4,158,413 ) (6,609,187 ) Expected income tax recovery (883,841 ) (1,322,068 ) Non-deductible items 8,544 2,724 Change in estimates 948 (54,057) Effect of changes in foreign and long-term tax rates - 1,816,659 Change in valuation allowance 874,349 (443,258 ) Total income taxes - - 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, 2019 and 2018 are comprised of the following: August 31 2019 $ August 31 2018 $ Non-capital losses 5,022,441 4,130,915 Marketable securities 2,300 1,789 Property plant and equipment - 24 Total unrecognized deferred tax assets 5,024,741 4,132,728 The Company has net operating loss carry-forwards of approximately $24,457,000 which may be carried forward to apply against future year income tax for U.S. tax purposes. Year Amount 2025 76,000 2026 508,000 2027 1,056,000 2028 720,000 2029 753,000 2030 552,000 2031 538,000 2032 252,000 2033 344,000 2034 3,257,000 2035 1,934,000 2036 1,150,000 2037 1,857,000 Indefinite 11,249,000 24,246,000 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Aug. 31, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | 21. Marketable Securities The components of Marketable Securities were as follows: Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2018 Common Stock 25,000 - (14,849 ) Total 25,000 - (14,849 ) 10,151 August 31, 2019 Common Stock 81,250 9,335 (12,124 ) Total 81,250 9,335 (26,973 ) 63,612 Unrealized losses from common stock are due to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events November 5, 2019 The Company pursuant to certain consulting agreements issued a total of 1,000,000 stock options at $0.55 per Share for a period of five years; and 225,000 warrants at $0.80 for a period of three years. November 13, 2019 Lexaria closed the first tranche of its previously announced private placement. 1,554,245 units were issued at $0.45 for a total of $699,410.25. Each unit consists of one common share and one warrant exercisable at $0.80 until November 13, 2020, thereafter at $1.20 until November 13, 2021. The Company paid $3,937.50 and issued 8,750 broker warrants. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Principles | a) Accounting Principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. All amounts, unless otherwise stated, are in United States dollars. |
Revenue Recognition | b) Revenue Recognition Product Revenue Revenue from the sale of products is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured, which typically occurs upon shipment. The Company reports its sales net of the amount of actual sales returns. Sales tax collected from customers is excluded from net sales. Licensing Revenue from Intellectual Property We recognize revenue for License fees at a point in time following the transfer of our intellectual property, our patented lipid nutrient infusion technology DehydraTECH™ for infusing Active Pharmaceutical Ingredients, to the licensee, which typically occurs on delivery of documentation. Usage Fees from Intellectual Property We recognize revenue for Usage fees when usage of our DehydraTECH intellectual property occurs by licensees infusing an Active Pharmaceutical Ingredient into one or more of their product lines for sale. |
Inventory and Cost of Sales | c) Inventory and Cost of Sales The Company’s inventory consists of finished goods, work in progress, and raw materials. In all classes, inventory is valued at the lower of cost or market. Cost is determined on a first-in, first-out basis. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities. |
Cash and Cash Equivalents | d) Cash and Cash Equivalents Cash equivalents comprise certain highly liquid instruments with a maturity of three months or less when purchased. As of August 31, 2019, and August 31, 2018, the Company held cash only. |
Equipment | e) Equipment Equipment is stated at cost less accumulated depreciation and impairment, and depreciated using the straight-line method over their useful lives or by units of production. |
Patents | f) Patents Capitalized patent costs represent legal costs incurred to establish patents. When patents reach a mature stage, any associated legal costs are comprised mostly of maintenance fees and are expensed as incurred. Capitalized patent costs are amortized on a straight-line basis over the remaining life of the patent. The Company was granted its first patent on October 25, 2016, with a legal life of 20 years. Additional patent information is in Note 9. |
Stock-Based Compensation | g) Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expenses in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the Board of Directors for their services on the Board of Directors, the Company estimates the grant date fair value of each option award 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 life of the option, risk-free interest rates and expected dividend yields of the common stock. Stock-based payments issued to non-employees are recorded at their fair values and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. For equity instruments granted to non-employees, the Company recognizes stock-based compensation expense on vesting. |
Loss Per Share | h) Loss Per Share The Company applies the guidance in ASC 260 Earnings Per Share. Loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share is equivalent to basic loss per share because the potential exercise of the equity-based financial instruments was anti-dilutive. |
Foreign Currency Translation | i) Foreign Currency Translation The Company s operations are located in the United States of America and Canada, and it has offices in Canada. The Company maintains its accounting records in U.S. Dollars, as follows: At the transaction date, each asset, liability, revenue and expense that was acquired or incurred in a foreign currency is translated into U.S. dollars by using the exchange rate in effect at that date. At the period end, monetary assets and liabilities are translated at the exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in profit or loss. |
Financial Instruments | j) Financial Instruments ASC 820 Fair Value Measurements and Disclosures, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 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. ASC 820 prioritizes the inputs into three levels that may be 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, accounts payable and accrued liabilities, and due to related parties. The carrying amounts of cash, accounts and other receivable, accounts payable and accrued liabilities, and due to related parties approximate their fair values due to their short maturities or quoted market prices. The Company is located in Canada, which results in exposure to market risks from changes 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 Company does not hold a significant position in foreign currencies, such as the Canadian dollar, and the impact of a change in a few basis points for USD/CAD is not expected to be material. |
Income Taxes | k) Income Taxes The Company applies the guidance in ASC 740, Income Taxes, which requires the Company to recognize 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. |
Impairment of Long-Lived Assets | l) Impairment of Long-Lived Assets Long-lived assets, including equipment, and intangible assets, such as 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 recovered. 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 the 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. |
Comprehensive Income | m) Comprehensive Income The Company applies ASC 220, Comprehensive Income, which establishes standards for reporting and presentation of comprehensive income, its components and accumulated balances. The Company discloses this information on its Statement of Stockholders Equity. Comprehensive income comprises equity changes except those transactions resulting from investments by owners and distributions to owners. |
Credit Risk and Receivable Concentration | n) Credit Risk and Receivable Concentration The Company places its cash with a high credit quality financial institution. As of August 31, 2019, the Company had approximately $1,285,147 in the bank (August 31, 2018: $1,727,184). As at August 31, 2019 we had $106,000 (2018 $199,375) in Intellectual Property Territory License fees receivable (Note 7) consisting of amounts due from three licensees (2018 three). These receivable amounts are based on contractual terms for payments that are payable within twelve months of signing the definitive agreements or routine IP Usage Fees. To date these licensees have performed all of their required obligations. The Company incurred $75,000 in bad debt in fiscal 2019. As at August 31, 2019, the Company had $161,418 (2018 - $61,176) in sales tax receivable (Note 6). The Company considers its credit risk to be low for such receivables. |
Commitments and Contingencies | o) Commitments and Contingencies In accordance with ASC 450-20, Accounting for Contingencies, the Company records accruals for such 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. Historically, the Company has not experienced any material claims. |
Research and Development | p) Research and Development Research and development costs are expensed as incurred. |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounts and Notes Receivable, Net [Abstract] | |
Schedule of accounts and other receivables | August 31 August 31 2019 2018 $ $ Trade and deposits receivable 5,727 5,200 Territory License Fee receivable 106,000 199,375 Sales tax receivable 161,418 61,176 273,145 265,751 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | August 31 August 31 2019 2018 $ $ Raw materials 45,068 29,355 Work in progress - 9,752 Finished goods 82,328 48,126 127,396 87,233 |
Intellectual Property (Tables)
Intellectual Property (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of patents | August 31 August 31 2019 2018 $ $ Balance – Beginning 146,538 62,827 Addition 122,982 85,399 Amortization* (4,393 ) (1,688 ) Balance – Ending 265,127 146,538 * The patents are amortized over their legal life of 20 years. |
Property & Equipment (Tables)
Property & Equipment (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | |
Schedule of property & equipment | Cost Period Amortization Accumulated Amortization Net Balance August 31, 2018 $ $ $ $ Equipment 3,094 (619 ) (1,857 ) 1,237 3,094 (619 ) (1,857 ) 1,237 Cost Period Amortization Accumulated Amortization Net Balance August 31, 2019 $ $ $ $ Leasehold improvements 259,981 (33,342 ) (33,342 ) 226,638 Computers 63,964 (12,187 ) (12,187 ) 51,776 Furniture fixtures equipment 34,220 (4,205 ) (6,062 ) 28,159 Lab equipment 291,235 (6,546 ) (6,546 ) 284,689 649,400 (56,281 ) (58,137 ) 591,262 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounts Payable And Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | August 31 August 31 2019 2018 $ $ Accounts Payable Trades Payable 31,463 14,378 Sales Tax Payable 63,616 1,869 Accrued Liabilities Trades Payable 41,332 19,538 Balance – Ending 136,411 35,785 |
Unearned Revenue (Tables)
Unearned Revenue (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Unearned Revenue [Abstract] | |
Schedule of unearned revenue | August 31 2019 $ August 31 2018 $ Balance – Beginning - 17,083 Earned revenue (Note 15) - (17,083 ) Balance – Ending - - |
Common Shares and Warrants (Tab
Common Shares and Warrants (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Schedule of option and warrant exercises | Type of Issuance Number of Shares Total Value Warrant exercise (1) 1,626,513 796,122 Option exercise 430,000 66,250 Private placement 947,150 1,515,440 Per agreements (2) 250,000 234,500 3,253,663 $ 2,612,312 (1) Includes 384,212 broker warrants exercised for gross proceeds of $191,742 (2) The Company awarded the restricted common shares as required by consulting contracts |
Schedule for warrant | Number of Warrants Weighted Average Exercise Price $ Balance August 31, 2017 8,844,506 0.29 Cancelled/Expired (230,000 ) 0.17 Exercised (6,364,145 ) 0.28 Issued 1,035,913 1.48 Balance August 31, 2018 3,286,274 0.72 Cancelled/Expired (17,498 ) 0.59 Exercised (1,626,513 ) 0.49 Issued 1,183,062 1.99 Balance August 31, 2019 2,825,325 1.38 |
Schedule of warrants granted as compensation warrants by using the Black-Scholes option pricing model | August 31 2019 August 31 2018 Expected volatility 1% – 117% 100% – 154% Risk-free interest rate 2.31% – 2.87% 1.21% – 2.60% Expected life 1 day – 2 years 1.21 – 3 years Dividend yield 0.00% 0.00% Estimated fair value per warrant $Nil – $0.57 $0.40 – $1.48 |
Schedule of warrants outstanding | # of Warrants Weighted Average Remaining Contractual Life Weighted Average Exercise Price $ 250,000 0.25 years 0.83 500,000 0.38 years 1.83 975,325 1.17 years 2.25 100,000 1.73 years 0.96 250,000 1.73 years 1.55 750,000 2.11 years 0.14 2,825,325 1.27 years 1.38 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of exercise price | Quantity Exercise Price $ Life (Years) 390,000 (1) 1.27 5 240,000 (1) 1.06 5 30,000 (1) 1.16 5 350,000 0.99 5 440,000 (1) 0.99 5 48,000 (1) 0.96 5 100,000 0.81 5 450,000 (1) 0.81 5 2,048,000 1.00 (1) |
Schedule for stock options | Options Weighted Average Exercise Price $ Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $ Balance August 31, 2017 3,320,875 0.15 Exercised (545,875 ) 0.17 Granted 2,025,000 1.49 Balance August 31, 2018 4,800,000 0.71 Expired/Cancelled (1,415,000 ) 0.66 Exercised (430,000 ) 0.15 Granted 2,048,000 1.00 Balance August 31, 2019 (Outstanding) 5,003,000 0.89 3.34 791,800 Balance August 31, 2019 (Exercisable) 3,961,000 0.90 3.03 752,300 |
Schedule of fair value of options granted using Black-Scholes option pricing model | August 31 2019 August 31 2018 Expected volatility 100% – 144% 127% – 131% Risk-free interest rate 1.42% – 2.89% 2.13% – 2.74% Expected life 5 years 5 years Dividend yield 0.00% 0.00% Estimated fair value per option $0.60 - $1.07 $0.70 – $1.73 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Revenues [Abstract] | |
Schedule of revenue | August 31 2019 $ August 31 2018 $ Product sales 24,282 16,967 Licensing revenue (Note 11) 198,000 415,183 Freight revenue 328 1,137 222,610 433,287 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Management, consulting and accounting services Cash $ % Non-Cash (2) $ % Aug 31 2019 Total $ Cash $ % Non-Cash (2) % Aug 31 2018 Total $ C.A.B Financial Services (1) 223,280 100 0 0 223,280 144,000 11 1,212,269 89 1,356,269 M&E Services Ltd. (1) 112,377 100 0 0 112,377 85,663 13 568,737 87 654,401 Docherty Management Limited (1) 195,740 100 0 0 195,740 140,471 11 1,148,152 89 1,288,622 Company controlled by a director 14,932 12 112,718 88 127,650 12,000 15 65,686 85 77,686 Directors 16,138 9 172,330 91 188,468 - 0 65,686 100 65,686 562,467 285,048 847,515 382,134 3,060,530 3,442,664 (1) (2) |
Schedule of other ownership interests | August 31, 2018 Common Shares Fair Value Cash Docherty Management (Note 13,16) (A) 345,250 $ 458,305 $ 164,361 CAB (Note 13,16) (B) 143,225 $ 192,195 $ 100,475 M&E Services Ltd (Note 13,16) 41,666 $ 34,166 - (A) (B) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of the profit or loss and total assets for each reportable segment | IP Licensing Consumer Products Corporate Consolidated Total External Revenue $ 198,000 $ 24,610 $ - $ 222,610 CoGS $ - $ (22,893 ) $ - $ (22,893 ) Operating Expenses $ (1,211,733 ) $ (968,947 ) $ (2,177,450 ) $ (4,358,130 ) Segment Loss $ (1,013,733 ) $ (967,230 ) $ (2,177,450 ) $ (4,158,413 ) Total Assets $ 645,969 $ 127,396 $ 1,901,854 $ 2,675,219 |
Commitments, Significant Cont_2
Commitments, Significant Contracts and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of management and service agreements | Party Monthly Commitment Expiry Date C.A.B Financial Services (6) CAD $29,167 January 1, 2022 Docherty Management Ltd. (6) CAD $25,000 January 1, 2022 M&E Services Ltd. (1)(2) CAD $12,960 June 1, 2021 Corporate Development (3)(4) CAD $1,000 Month to Month Corporate Development (3)(4) CAD $8,000 Month to Month Investor relations and communications – Alex Blanchard Capital (1) CAD $7,500 Month to Month Office Management (7) CAD $10,000 August 15, 2022 Research & Development CAD $3,854 Month to Month Office Rent (5) CAD $4,823 November 15, 2023 Revenue Incentive Milestones (1) 100,000 common shares issuable upon the Company achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period for the first 12 months of the contract, plus a further 50,000 common shares issuable upon achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period, during the 13th - 24th months of the contract. If the Company achieves non-refundable revenues of $500,000 in any fiscal quarter, a further 200,000 common shares may be issuable during the first 12 months of the contract and 100,000 common shares during the 13th - 24th months of the contract. Intellectual Property Milestones (2) During the term of the agreement, for each provisional patent application substantively devised and successfully created, written, and filed with the U.S. Patent Office for the Company’s Technology, 250,000 restricted common shares of the Company will be issuable. Corporate Development Milestones (3) For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 100,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; a restricted common share award of 50,000 Company shares may be achieved; this clause is limited to one payment per customer during the 12-month period, but payable on each customer that meets these sales/licensing thresholds. (4) For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 200,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 100,000 Company shares; this clause is limited to one payment per fiscal quarter. Corporate Offices (5) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. Base rent is CDN$12.56 per square foot until November 14, 2019, CDN$12.86 per square foot until November 14, 2021 and CDN$13.21 per square foot until November 14, 2023 plus common area maintenance and taxes. Performance Incentives (6) A performance bonus equal to 50% of the annual compensation may be payable upon the completion of certain performance criteria as determined by the board of directors of Lexaria. Compensation equal to 2% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company’s approved stock option plans. (7) Compensation equal to 0.4% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company’s approved stock option plans. |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Prepaid Expense, Current [Abstract] | |
Schedule of prepaid expenses | August 31 2019 $ August 31 2018 $ Advertising & Conferences 39,143 137,654 Consulting Fees - 4,555 Office & Insurance 29,784 21,533 Legal Fees - 29,990 68,927 193,732 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | August 31 2019 $ August 31 2018 $ Loss before taxes (4,158,413 ) (6,609,187 ) Expected income tax recovery (883,841 ) (1,322,068 ) Non-deductible items 8,544 2,724 Change in estimates 948 (54,057) Effect of changes in foreign and long-term tax rates - 1,816,659 Change in valuation allowance 874,349 (443,258 ) Total income taxes - - |
Schedule of deferred taxes assets and liabilities | August 31 2019 $ August 31 2018 $ Non-capital losses 5,022,441 4,130,915 Marketable securities 2,300 1,789 Property plant and equipment - 24 Total unrecognized deferred tax assets 5,024,741 4,132,728 |
Schedule of carryforwards net operating loss | Year Amount 2025 76,000 2026 508,000 2027 1,056,000 2028 720,000 2029 753,000 2030 552,000 2031 538,000 2032 252,000 2033 344,000 2034 3,257,000 2035 1,934,000 2036 1,150,000 2037 1,857,000 Indefinite 11,249,000 24,246,000 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities | Cost Basis $ Unrealized Gains $ Unrealized Losses $ Total $ August 31, 2018 Common Stock 25,000 - (14,849 ) Total 25,000 - (14,849 ) 10,151 August 31, 2019 Common Stock 81,250 9,335 (12,124 ) Total 81,250 9,335 (26,973 ) 63,612 |
Organization, Business and Go_2
Organization, Business and Going Concern (Detail Textuals) | 12 Months Ended |
Aug. 31, 2019 | |
Organization, Business And Going Concern [Abstract] | |
Date of incorporation | Dec. 9, 2004 |
State of incorporation | Nevada |
Significant Accounting Polici_2
Significant Accounting Policies (Detail Textuals) | 12 Months Ended | ||
Aug. 31, 2019USD ($)Licensees | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Accounting Policies [Line Items] | |||
Equipment, depreciation method | straight-line method | ||
Patent, legal life | 20 years | ||
Cash | $ 1,285,147 | $ 1,727,184 | $ 2,533,337 |
Territory License Fee receivable | 106,000 | 199,375 | |
Bad debt expense | 75,000 | ||
Sales tax receivable | $ 161,418 | $ 61,176 | |
Intellectual Property Territory License | |||
Accounting Policies [Line Items] | |||
Number of licensees | Licensees | 3 |
Basis of Consolidation (Detail
Basis of Consolidation (Detail Textuals) - Altria Ventures Inc. | Jan. 15, 2019USD ($) |
Initial investment | $ 1,000,000 |
Equity interest percentage | 16.667% |
Recent Accounting Guidance (Det
Recent Accounting Guidance (Detail Textuals) | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Estimation impact on financial statements | $ 14,247 |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Accounts and Notes Receivable, Net [Abstract] | ||
Trade and deposits receivable | $ 5,727 | $ 5,200 |
Territory License Fee receivable | 106,000 | 199,375 |
Sales tax receivable | 161,418 | 61,176 |
Accounts and other receivable | $ 273,145 | $ 265,751 |
Inventory (Details)
Inventory (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45,068 | $ 29,355 |
Work in progress | 0 | 9,752 |
Finished goods | 82,328 | 48,126 |
Inventory | $ 127,396 | $ 87,233 |
Inventory (Detail Textuals)
Inventory (Detail Textuals) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Inventory write-off (Note 8) | $ 7,182 | $ 12,966 |
Intellectual Property (Details)
Intellectual Property (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance - Beginning | $ 146,538 | $ 62,827 | |
Additions | 122,982 | 85,399 | |
Amortization | [1] | (4,393) | (1,688) |
Balance - Ending | $ 265,127 | $ 146,538 | |
[1] | The patents are amortized over their legal life of 20 years. |
Intellectual Property (Detail T
Intellectual Property (Detail Textuals) - USD ($) | 2 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Aug. 31, 2019 | Nov. 12, 2014 | |
Alternative Health Products [Line Items] | |||
Useful life | 20 years | ||
PoViva Tea, LLC | |||
Alternative Health Products [Line Items] | |||
Ownership interest | 49.00% | ||
Amount of compensation | $ 70,000 | ||
Royalty percentage | 5.00% | ||
Term of royalty contract | 20 years | ||
Poppy's Teas LLC | |||
Alternative Health Products [Line Items] | |||
Ownership interest | 51.00% |
Property & Equipment (Details)
Property & Equipment (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Cost | ||
Cost | $ 649,400 | $ 3,094 |
Less accumulated amortization | (58,137) | (1,857) |
Balance - Ending | 591,263 | 1,237 |
Period Amortization | ||
Cost | ||
Less accumulated amortization | (56,281) | (619) |
Equipment | ||
Cost | ||
Cost | 3,094 | |
Less accumulated amortization | (1,857) | |
Balance - Ending | 1,237 | |
Equipment | Period Amortization | ||
Cost | ||
Less accumulated amortization | $ (619) | |
Leasehold Improvements | ||
Cost | ||
Cost | 259,981 | |
Less accumulated amortization | (33,342) | |
Balance - Ending | 226,639 | |
Leasehold Improvements | Period Amortization | ||
Cost | ||
Less accumulated amortization | (33,342) | |
Computer Equipment | ||
Cost | ||
Cost | 63,964 | |
Less accumulated amortization | (12,187) | |
Balance - Ending | 51,777 | |
Computer Equipment | Period Amortization | ||
Cost | ||
Less accumulated amortization | (12,187) | |
Furniture Fixtures Equipment | ||
Cost | ||
Cost | 34,220 | |
Less accumulated amortization | (6,062) | |
Balance - Ending | 28,158 | |
Furniture Fixtures Equipment | Period Amortization | ||
Cost | ||
Less accumulated amortization | (4,205) | |
Lab Equipment | ||
Cost | ||
Cost | 291,235 | |
Less accumulated amortization | (6,546) | |
Balance - Ending | 284,689 | |
Lab Equipment | Period Amortization | ||
Cost | ||
Less accumulated amortization | $ (6,546) |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Accounts Payable And Accrued Liabilities [Line Items] | ||
Balance - Ending | $ 136,411 | $ 35,785 |
Accounts Payable | ||
Accounts Payable And Accrued Liabilities [Line Items] | ||
Trades Payable | 31,463 | 14,378 |
Sales Tax Payable | 63,616 | 1,869 |
Accrued Liabilities | ||
Accounts Payable And Accrued Liabilities [Line Items] | ||
Trades Payable | $ 41,332 | $ 19,538 |
Unearned Revenue (Details)
Unearned Revenue (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Unearned Revenue [Abstract] | ||
Balance - Beginning | $ 0 | $ 17,083 |
Earned revenue (Note 15) | 0 | (17,083) |
Balance - Ending | $ 0 | $ 0 |
Unearned Revenue (Detail Textua
Unearned Revenue (Detail Textuals) - USD ($) | May 14, 2016 | Aug. 31, 2019 | Aug. 31, 2018 |
Unearned Revenue [Abstract] | |||
Term of licensing agreement | 2 years | ||
Earned revenue | $ 0 | $ 17,083 |
Common Shares and Warrants (Det
Common Shares and Warrants (Details) - USD ($) | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | |||
Equity [Abstract] | ||||
Number of Shares Warrant Exercise | 1,626,513 | [1] | 6,364,145 | |
Total Value Warrant Exercise | [1] | $ 796,122 | ||
Number of Shares Option Exercise | 430,000 | 545,875 | ||
Total Value Option Exercise | $ 66,250 | $ 93,702 | ||
Number of Shares Private Placement | 947,150 | |||
Total Value Private Placement | $ 1,515,440 | |||
Number of Shares Per Agreement | [2] | 250,000 | ||
Total Value Per Agreement | [2] | $ 234,500 | ||
Number of Shares | 3,253,663 | |||
Total Value | $ 2,612,312 | |||
[1] | Includes 384,212 broker warrants exercised for gross proceeds of $191,742 | |||
[2] | The Company awarded the restricted common shares as required by consulting contracts |
Common Shares and Warrants (D_2
Common Shares and Warrants (Details 1) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Common Shares And Warrants [Roll Forward] | |||
Number of Warrants, Balance | 3,286,274 | 8,844,506 | |
Weighted Average Exercise Price, Balance | $ 0.72 | $ 0.29 | |
Number of Warrants, Cancelled/Expired | (17,498) | (230,000) | |
Weighted Average Exercise Price, Cancelled/Expired | $ 0.59 | $ 0.17 | |
Number of Warrants, Exercised | (1,626,513) | [1] | (6,364,145) |
Weighted Average Exercise Price, Exercised | $ 0.49 | $ 0.28 | |
Number of Warrants, Issued | 1,183,062 | 1,035,913 | |
Weighted Average Exercise Price, Issued | $ 1.99 | $ 1.48 | |
Number of Warrants, Balance | 2,825,325 | 3,286,274 | |
Weighted Average Exercise Price, Balance | $ 1.38 | $ 0.72 | |
[1] | Includes 384,212 broker warrants exercised for gross proceeds of $191,742 |
Common Shares and Warrants (D_3
Common Shares and Warrants (Details 2) - Warrant - $ / shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 1.00% | 100.00% |
Risk-free interest rate | 2.31% | 1.21% |
Expected life | 1 day | 1 year 2 months 16 days |
Estimated fair value per warrant | $ 0.40 | |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 117.00% | 154.00% |
Risk-free interest rate | 2.87% | 2.60% |
Expected life | 2 years | 3 years |
Estimated fair value per warrant | $ 0.57 | $ 1.48 |
Common Shares and Warrants (D_4
Common Shares and Warrants (Details 3) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Number of Warrants | 2,825,325 | 3,286,274 | 8,844,506 |
Weighted Average Remaining Contractual Life | 1 year 3 months 7 days | ||
Weighted Average Exercise Price | $ 1.38 | $ 0.44 | |
Warrants 1 | |||
Number of Warrants | 250,000 | ||
Weighted Average Remaining Contractual Life | 3 months | ||
Weighted Average Exercise Price | $ 0.83 | ||
Warrants 2 | |||
Number of Warrants | 500,000 | ||
Weighted Average Remaining Contractual Life | 4 months 17 days | ||
Weighted Average Exercise Price | $ 1.83 | ||
Warrants 3 | |||
Number of Warrants | 975,325 | ||
Weighted Average Remaining Contractual Life | 1 year 2 months 1 day | ||
Weighted Average Exercise Price | $ 2.25 | ||
Warrants 4 | |||
Number of Warrants | 100,000 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 23 days | ||
Weighted Average Exercise Price | $ 0.96 | ||
Warrants 5 | |||
Number of Warrants | 250,000 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 23 days | ||
Weighted Average Exercise Price | $ 1.55 | ||
Warrants 6 | |||
Number of Warrants | 750,000 | ||
Weighted Average Remaining Contractual Life | 2 years 1 month 10 days | ||
Weighted Average Exercise Price | $ 0.14 |
Common Shares and Warrants (D_5
Common Shares and Warrants (Detail Textuals) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Common Shares And Warrants [Line Items] | ||
Number of units sold in private placement | 947,150 | |
Price per share of private placement units sold | $ 1.60 | |
Exercise price of each whole compensation warrant exercisable | $ 2.25 | |
Number of common share under each unit | 1 | |
Each warrant entitles to purchase common share | 1 | |
Term of warrants | 24 months | |
Fair value of warrants issued as share issue cost | $ 21,646 | |
Number of warrants issued as share issue cost | 35,913 | |
Extended expiration date | 1 year | |
Number of warrants issued | 500,000 | |
Exercise price of warrants | $ 1.38 | $ 0.44 |
Consulting expense for warrants previously granted to consultant upon vesting | $ 51,448 | |
Number of warrant issued to broker | 384,212 | |
Proceeds for warrant exercises | $ 191,742 | |
Vendor agreement | ||
Common Shares And Warrants [Line Items] | ||
Number of warrants issued | 10,000 | |
Fair value of warrants issued | $ 52,817 | |
Consulting agreements | ||
Common Shares And Warrants [Line Items] | ||
Number of warrants issued | 1,000,000 | |
Fair value of warrants issued | $ 1,011,822 | |
Broker | ||
Common Shares And Warrants [Line Items] | ||
Exercise price of each whole compensation warrant exercisable | $ 2.25 | |
Term of warrants | 24 months | |
Number of brokers warrants exercisable | 28,175 | |
Fair value of warrants issued as share issue cost | $ 6,484 | |
Number of warrants issued | 107,737 | |
Fair value of warrants issued | $ 16,095 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Quantity | 2,048,000 | ||
Exercise price | $ 1 | $ 1.49 | |
Stock Options 1 | |||
Quantity | [1] | 390,000 | |
Exercise price | $ 1.27 | ||
Life (Years) | 5 years | ||
Stock Options 2 | |||
Quantity | [1] | 240,000 | |
Exercise price | $ 1.06 | ||
Life (Years) | 5 years | ||
Stock Options 3 | |||
Quantity | [1] | 30,000 | |
Exercise price | $ 1.16 | ||
Life (Years) | 5 years | ||
Stock Options 4 | |||
Quantity | 350,000 | ||
Exercise price | $ 0.99 | ||
Life (Years) | 5 years | ||
Stock Options 5 | |||
Quantity | [1] | 440,000 | |
Exercise price | $ 0.99 | ||
Life (Years) | 5 years | ||
Stock Options 6 | |||
Quantity | [1] | 48,000 | |
Exercise price | $ 0.96 | ||
Life (Years) | 5 years | ||
Stock Options 7 | |||
Quantity | 100,000 | ||
Exercise price | $ 0.81 | ||
Life (Years) | 5 years | ||
Stock Options 8 | |||
Quantity | [1] | 450,000 | |
Exercise price | $ 0.81 | ||
Life (Years) | 5 years | ||
[1] | Options granted vest over a period of three years |
Stock Options (Details 1)
Stock Options (Details 1) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Options | ||
Balance outstanding | 4,800,000 | 3,320,875 |
Expired | (1,415,000) | |
Exercised | (430,000) | (545,875) |
Granted | 2,048,000 | 2,025,000 |
Balance outstanding | 5,003,000 | 4,800,000 |
Balance, Exercisable | 3,961,000 | |
Weighted Average Exercise Price | ||
Balance outstanding | $ 0.71 | $ 0.15 |
Expired | 0.66 | |
Exercise Price | 0.15 | 0.17 |
Granted | 1 | 1.49 |
Balance outstanding | 0.89 | $ 0.71 |
Balance, Exercisable | $ 0.90 | |
Weighted Average Remaining Contractual Term, Outstanding | 3 years 4 months 2 days | |
Weighted Average Remaining Contractual Term, Exercisable | 3 years 11 days | |
Aggregate Intrinsic Value, Outstanding | $ 791,800 | |
Aggregate Intrinsic Value, Exercisable | $ 752,300 |
Stock Options (Details 2)
Stock Options (Details 2) - Black-Scholes option - $ / shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 5 years | 5 years |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 100.00% | 127.00% |
Risk-free interest rate | 1.42% | 2.13% |
Estimated fair value per option | $ 0.60 | $ 0.70 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 144.00% | 131.00% |
Risk-free interest rate | 2.89% | 2.74% |
Estimated fair value per option | $ 1.07 | $ 1.73 |
Stock Options (Detail Textuals)
Stock Options (Detail Textuals) - $ / shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price | $ 1 | $ 1.49 |
Term of expiration | 5 years | |
Term of options vesting | 3 years | |
Directors Officers Employees And Consultants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price | $ 1.53 | |
Maximum number of common shares purchased | 1,725,000 | |
Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for grant | 200,000 | |
Stock options expiration date | Dec. 1, 2022 | |
Exercise price | $ 0.83 | |
2007 Equity incentive plan | Employees And Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for grant | 412,500 | |
2007 Equity incentive plan | Directors Officers Employees And Consultants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for grant | 7,838,713 | |
2014 Stock Option Plan | Directors Officers Employees And Consultants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for grant | 2,107,500 | |
2010 Stock Option Plan | Officers And Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for grant | 1,512,500 |
Revenues (Details)
Revenues (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue [Line Items] | ||
Revenue | $ 222,610 | $ 433,287 |
Product sales | ||
Revenue [Line Items] | ||
Revenue | 24,282 | 16,967 |
Licensing revenue (Note 11) | ||
Revenue [Line Items] | ||
Revenue | 198,000 | 415,183 |
Freight revenue | ||
Revenue [Line Items] | ||
Revenue | $ 328 | $ 1,137 |
Revenues (Detail Textuals)
Revenues (Detail Textuals) | 12 Months Ended |
Aug. 31, 2018USD ($) | |
Revenues [Abstract] | |
Deferred revenue, revenue recognized | |
Revenue from additional intellectual property licensing fees | $ 198,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | |||
Related Party Transaction [Line Items] | ||||
Cash | $ 562,467 | $ 382,134 | ||
Non-Cash | 285,048 | 3,060,530 | [1] | |
Management, consulting and accounting services | $ 847,515 | $ 3,442,664 | ||
Percentage of cash | 0.00% | 0.00% | ||
Percentage of non cash | 0.00% | 0.00% | ||
C.A.B Financial Services Ltd. ("CAB") | ||||
Related Party Transaction [Line Items] | ||||
Cash | [2] | $ 223,280 | $ 144,000 | |
Non-Cash | [2] | 0 | 1,212,269 | [1] |
Management, consulting and accounting services | [2] | $ 223,280 | $ 1,356,269 | |
Percentage of cash | [2] | 100.00% | 11.00% | |
Percentage of non cash | [2] | 0.00% | 89.00% | |
M&E Services Ltd. ("M&E") | ||||
Related Party Transaction [Line Items] | ||||
Cash | [2] | $ 112,377 | $ 85,663 | |
Non-Cash | [2] | 0 | 568,737 | [1] |
Management, consulting and accounting services | [2] | $ 112,377 | $ 654,401 | |
Percentage of cash | [2] | 100.00% | 13.00% | |
Percentage of non cash | [2] | 0.00% | 87.00% | |
Docherty Management Limited ("Docherty Management") | ||||
Related Party Transaction [Line Items] | ||||
Cash | [2] | $ 195,740 | $ 140,471 | |
Non-Cash | [2] | 0 | 1,148,152 | [1] |
Management, consulting and accounting services | [2] | $ 195,740 | $ 1,288,622 | |
Percentage of cash | [2] | 100.00% | 11.00% | |
Percentage of non cash | [2] | 0.00% | 89.00% | |
Company controlled by a director Consulting | ||||
Related Party Transaction [Line Items] | ||||
Cash | $ 14,932 | $ 12,000 | ||
Non-Cash | 112,718 | 65,686 | [1] | |
Management, consulting and accounting services | $ 127,650 | $ 77,686 | ||
Percentage of cash | 12.00% | 15.00% | ||
Percentage of non cash | 88.00% | 85.00% | ||
Directors | ||||
Related Party Transaction [Line Items] | ||||
Cash | $ 16,138 | $ 0 | ||
Non-Cash | 172,330 | 65,686 | [1] | |
Management, consulting and accounting services | $ 188,468 | $ 65,686 | ||
Percentage of cash | 9.00% | 0.00% | ||
Percentage of non cash | 91.00% | 100.00% | ||
[1] | Stock Based Compensation (SBC) and Share Awards are included in the total value of the grants and awards included in expenses. In the year ended August 31, 2019 the Company granted no option or awards to officers and $285,048 awards to Directors included in Consulting expense. In the year ended August 31, 2018 the Company granted a total of 1,700,000 incentive stock options to officers and directors of the Company with a fair value of $2,111,028 and included in Consulting expense (Note 14). | |||
[2] | C.A.B. Financial Services is owned by the CEO of the Company, M&E Services Ltd. is owned by the CFO of the Company (as of June 1 2017), and Docherty Management Limited is owned by the President of the Company. |
Related Party Transactions (D_2
Related Party Transactions (Details 1) | 12 Months Ended | |
Aug. 31, 2018USD ($)shares | ||
Docherty Management Limited ("Docherty Management") | ||
Related Party Transaction [Line Items] | ||
Common Shares | shares | 345,250 | [1] |
Fair Value | $ 458,305 | [1] |
Cash | $ 164,361 | [1] |
C.A.B Financial Services Ltd. ("CAB") | ||
Related Party Transaction [Line Items] | ||
Common Shares | shares | 143,225 | [2] |
Fair Value | $ 192,195 | [2] |
Cash | $ 100,475 | [2] |
M&E Services Ltd. ("M&E") | ||
Related Party Transaction [Line Items] | ||
Common Shares | shares | 41,666 | |
Fair Value | $ 34,166 | |
Cash | $ 0 | |
[1] | Issued in lieu of issuance of 466,666 common shares, as mutually agreed to between the parties. | |
[2] | Issued in lieu of issuance of 216,670 common shares, as mutually agreed to between the parties. |
Related Party Transactions (D_3
Related Party Transactions (Detail Textuals) - USD ($) | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | |||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 48,096 | $ 7,855 | ||
Granted | 2,048,000 | 2,025,000 | ||
Non-Cash | $ 285,048 | $ 3,060,530 | [1] | |
Docherty Management Limited ("Docherty Management") | ||||
Related Party Transaction [Line Items] | ||||
Non-Cash | [2] | 0 | $ 1,148,152 | [1] |
Number of common shares issued | 466,666 | |||
C.A.B Financial Services Ltd. ("CAB") | ||||
Related Party Transaction [Line Items] | ||||
Non-Cash | [2] | 0 | $ 1,212,269 | [1] |
Number of common shares issued | 216,670 | |||
M&E Services Ltd. ("M&E") | ||||
Related Party Transaction [Line Items] | ||||
Non-Cash | [2] | $ 0 | $ 568,737 | [1] |
Officers and Directors | ||||
Related Party Transaction [Line Items] | ||||
Granted | 1,700,000 | |||
Non-Cash | $ 285,048 | |||
Fair value | $ 2,111,028 | |||
[1] | Stock Based Compensation (SBC) and Share Awards are included in the total value of the grants and awards included in expenses. In the year ended August 31, 2019 the Company granted no option or awards to officers and $285,048 awards to Directors included in Consulting expense. In the year ended August 31, 2018 the Company granted a total of 1,700,000 incentive stock options to officers and directors of the Company with a fair value of $2,111,028 and included in Consulting expense (Note 14). | |||
[2] | C.A.B. Financial Services is owned by the CEO of the Company, M&E Services Ltd. is owned by the CFO of the Company (as of June 1 2017), and Docherty Management Limited is owned by the President of the Company. |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
External Revenue | $ 222,610 | $ 433,287 |
CoGS | (22,893) | (25,185) |
Operating Expenses | (4,358,130) | (7,017,289) |
Segment Loss | (4,158,413) | (6,609,187) |
Total Assets | 2,675,219 | $ 2,431,826 |
IP Licensing | ||
External Revenue | 198,000 | |
CoGS | 0 | |
Operating Expenses | (1,211,733) | |
Segment Loss | (1,013,733) | |
Total Assets | 645,969 | |
Consumer Products | ||
External Revenue | 24,610 | |
CoGS | (22,893) | |
Operating Expenses | (968,947) | |
Segment Loss | (967,230) | |
Total Assets | 127,396 | |
Corporate | ||
External Revenue | 0 | |
CoGS | 0 | |
Operating Expenses | (2,177,450) | |
Segment Loss | (2,177,450) | |
Total Assets | $ 1,901,854 |
Segment Information (Detail Tex
Segment Information (Detail Textuals) | 12 Months Ended |
Aug. 31, 2019Reportable_Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Commitments, Significant Cont_3
Commitments, Significant Contracts and Contingencies (Details) | 12 Months Ended | |
Aug. 31, 2019CAD ($) | ||
C.A.B Financial Services | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 29,167 | [1] |
Expiry Date | January 1, 2022 | |
Docherty Management Ltd. | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 25,000 | [1] |
Expiry Date | January 1, 2022 | |
M&E Services Ltd. | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 12,960 | [2],[3] |
Expiry Date | June 1, 2021 | |
Corporate Development | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 1,000 | [4],[5] |
Expiry Date | Month to Month | |
Corporate Development | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 8,000 | [4],[5] |
Expiry Date | Month to Month | |
Investor relations and communications - Alex Blanchard Capital | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 7,500 | [2] |
Expiry Date | Month to Month | |
Office Management | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 10,000 | [6] |
Expiry Date | August 15, 2022 | |
Research & Development | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 3,854 | |
Expiry Date | Month to Month | |
Office Rent | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Monthly Commitment | $ 4,823 | [7] |
Expiry Date | November 15, 2023 | |
[1] | A performance bonus equal to 50% of the annual compensation may be payable upon the completion of certain performance criteria as determined by the board of directors of Lexaria. Compensation equal to 2% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company's approved stock option plans. | |
[2] | 100,000 common shares issuable upon the Company achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period for the first 12 months of the contract, plus a further 50,000 common shares issuable upon achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period, during the 13th - 24th months of the contract. If the Company achieves non-refundable revenues of $500,000 in any fiscal quarter, a further 200,000 common shares may be issuable during the first 12 months of the contract and 100,000 common shares during the 13th - 24th months of the contract. | |
[3] | During the term of the agreement, for each provisional patent application substantively devised and successfully created, written, and filed with the U.S. Patent Office for the Company's Technology, 250,000 restricted common shares of the Company will be issuable. | |
[4] | For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 100,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; a restricted common share award of 50,000 Company shares may be achieved; this clause is limited to one payment per customer during the 12-month period, but payable on each customer that meets these sales/licensing thresholds. | |
[5] | For new customers sourced by a Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 200,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 100,000 Company shares; this clause is limited to one payment per fiscal quarter. | |
[6] | Compensation equal to 0.4% of the consideration received by the Company from the sale of a subsidiary, excluding certain circumstances. Certain compensation to be paid upon a change of control excluding certain circumstances and participation in the Company's approved stock option plans. | |
[7] | Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. Base rent is CDN$12.56 per square foot until November 14, 2019, CDN$12.86 per square foot until November 14, 2021 and CDN$13.21 per square foot until November 14, 2023 plus common area maintenance and taxes. |
Commitments, Significant Cont_4
Commitments, Significant Contracts and Contingencies (Detail Textuals) - 12 months ended Aug. 31, 2019 | USD ($)shares | CAD ($)shares |
Commitments Significant Contracts And Contingencies [Line Items] | ||
Percentages of performance bonus annual compensation | 50.00% | 50.00% |
Percentages of consideration received from sale of subsidiary | 0.02 | 0.02 |
Intellectual Property Milestones | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 250,000 | 250,000 |
During first 12 months of the contract | Revenue Incentive Milestones | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 100,000 | 100,000 |
Non-refundable revenues threshold | $ | $ 200,000 | |
During first 12 months of the contract | Corporate Development Milestones 1 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 100,000 | 100,000 |
Non-refundable revenues threshold | $ | $ 200,000 | |
During first 12 months of the contract | Corporate Development Milestones 2 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 200,000 | 200,000 |
Non-refundable revenues threshold | $ | $ 500,000 | |
During the 13th to 24th months of the contract | Revenue Incentive Milestones | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 50,000 | 50,000 |
Non-refundable revenues threshold | $ | $ 200,000 | |
During the 13th to 24th months of the contract | Corporate Development Milestones 1 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 50,000 | 50,000 |
During the 13th to 24th months of the contract | Corporate Development Milestones 2 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 100,000 | 100,000 |
Non-refundable revenues threshold | $ | $ 500,000 | |
Any fiscal quarter during first 12 months of the contract | Revenue Incentive Milestones | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 200,000 | 200,000 |
Non-refundable revenues threshold | $ | $ 500,000 | |
Until December 1, 2018 | Office Management Milestones 1 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 75,000 | 75,000 |
Non-refundable revenues threshold | $ | $ 200,000 | |
Until December 1, 2018 | Office Management Milestones 2 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 150,000 | 150,000 |
Non-refundable revenues threshold | $ | $ 500,000 | |
From December 2, 2018, until December 1, 2019 | Office Management Milestones 1 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 40,000 | 40,000 |
Non-refundable revenues threshold | $ | $ 200,000 | |
From December 2, 2018, until December 1, 2019 | Office Management Milestones 2 | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 80,000 | 80,000 |
Non-refundable revenues threshold | $ | $ 500,000 | |
Until November 14, 2019 | Corporate Offices | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Base rent per square foot | $ | $ 12.56 | |
Until November 14, 2023 | Corporate Offices | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Base rent per square foot | $ | $ 13.21 | |
Any fiscal quarter during the 13th to 24th months of the contract | Revenue Incentive Milestones | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Shares issuable by meeting milestone | shares | 100,000 | 100,000 |
Until November 14, 2021 | Corporate Offices | ||
Commitments Significant Contracts And Contingencies [Line Items] | ||
Base rent per square foot | $ | $ 12.86 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Prepaid Expense, Current [Abstract] | ||
Advertising & Conferences | $ 39,143 | $ 137,654 |
Consulting Fees | 0 | 4,555 |
Office & Insurance | 29,784 | 21,533 |
Legal Fees | 0 | 29,990 |
Prepaid Expenses | $ 68,927 | $ 193,732 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Loss before taxes | $ (4,158,413) | $ (6,609,184) |
Expected income tax recovery | (883,841) | (1,322,068) |
Non-deductible items | 8,544 | 2,724 |
Change in estimates | 948 | (54,057) |
Effect of changes in foreign and long-term tax rates | 0 | 1,816,659 |
Change in valuation allowance | 874,349 | (443,258) |
Total income taxes | $ 0 | $ 0 |
Income Tax (Details 1)
Income Tax (Details 1) - USD ($) | Aug. 31, 2019 | Aug. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Non-capital losses | $ 5,022,441 | $ 4,130,915 |
Marketable securities | 2,300 | 1,789 |
Property plant and equipment | 0 | 24 |
Total unrecognized deferred tax assets | $ 5,024,741 | $ 4,132,728 |
Income Tax (Details 2)
Income Tax (Details 2) | Aug. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 24,246,000 |
2025 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 76,000 |
2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 508,000 |
2027 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,056,000 |
2028 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 720,000 |
2029 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 753,000 |
2030 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 552,000 |
2031 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 538,000 |
2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 252,000 |
2033 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 344,000 |
2034 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,257,000 |
2035 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,934,000 |
2036 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,150,000 |
2037 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 1,857,000 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 11,249,000 |
Income Tax (Detail Textuals)
Income Tax (Detail Textuals) | Aug. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 24,246,000 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Marketable Securities [Line Items] | ||
Cost Basis | $ 81,250 | $ 25,000 |
Unrealized Gains | 9,335 | 0 |
Unrealized Losses | (26,973) | (14,849) |
Total | 64,214 | 10,151 |
Common Stock | ||
Marketable Securities [Line Items] | ||
Cost Basis | 81,250 | 25,000 |
Unrealized Gains | 9,335 | 0 |
Unrealized Losses | $ (12,124) | $ (14,849) |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - USD ($) | 2 Months Ended | 12 Months Ended | ||
Nov. 13, 2019 | Nov. 05, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | |
Subsequent Event [Line Items] | ||||
Number of units sold in private placement | 947,150 | |||
Private placement of shares, net of issuance cost | $ 1,470,310 | |||
Price per share of private placement units sold | $ 1.60 | |||
Number of common share under each unit | 1 | |||
Each warrant entitles to purchase common share | 1 | |||
Term of warrants | 24 months | |||
Number of warrants issued | 500,000 | |||
Exercise price of warrants | $ 1.38 | $ 0.44 | ||
Number of warrant issued to broker | 384,212 | |||
Consulting agreements | ||||
Subsequent Event [Line Items] | ||||
Number of warrants issued | 1,000,000 | |||
Subsequent Events | ||||
Subsequent Event [Line Items] | ||||
Number of units sold in private placement | 1,554,245 | |||
Private placement of shares, net of issuance cost | $ 699,410.25 | |||
Price per share of private placement units sold | $ 0.45 | |||
Number of common share under each unit | 1 | |||
Each warrant entitles to purchase common share | 1 | |||
Number of warrant issued to broker | 8,750 | |||
Subsequent Events | November 13, 2020 | ||||
Subsequent Event [Line Items] | ||||
Exercise price of warrants | $ 0.80 | |||
Subsequent Events | November 13, 2021 | ||||
Subsequent Event [Line Items] | ||||
Exercise price of warrants | $ 1.20 | |||
Subsequent Events | Consulting agreements | ||||
Subsequent Event [Line Items] | ||||
Shares issued for services (Shares) | 1,000,000 | |||
Shares issued price per share | $ 0.55 | |||
Term of stock option issued | 5 years | |||
Term of warrants | 3 years | |||
Number of brokers warrants exercisable | 3,937.50 | |||
Number of warrants issued | 225,000 | |||
Exercise price of warrants | $ 0.80 |