lxrp_ex992.htm

EXHIBIT 99.2

LEXARIA BIOSCIENCE CORP.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

As Reported (a)

Pro Forma

August 31

Pro Forma

August 31

2020

Adjustments

Notes

2020

ASSETS

(Audited)

(Unaudited)

Current

Cash and cash equivalents

1,293,749

268,380

(1)

1,562,129

Marketable securities

19,321

383,400

(1)

402,721

Accounts receivable

313,925

278,400

(1),(2)

592,325

Other current assets

116,871

Prepaid expenses and deposit

182,095

Current assets from discontinued operations

105,250

(2)

105,250

Total Current Assets

1,925,961

2,961,391

Non-current assets, net

Intellectual property

292,000

Lease right of use

126,920

Long Term Receivable

383,400

(1)

383,400

Property & equipment

483,357

Total Non-Current Assets

902,277

1,285,677

TOTAL ASSETS

2,828,238

4,247,068

LIABILITIES

Current

Accounts payable and accrued liabilities

86,920

22,119

(1)

109,039

Deferred revenue

44,255

Due to related party

58,704

Lease current

36,038

Liabilities from discontinued operations

250

(2)

250

Total Current Liabilities

225,917

248,286

Long Term

Lease long term

89,393

Loan payable

30,670

Total Long Term Liabilities

120,063

TOTAL LIABILITIES

345,980

368,349

STOCKHOLDERS' EQUITY

Share Capital

90,044

Additional paid-in capital

30,237,355

Deficit

(27,802,198

)

1,396,461

(1)

(26,405,737

)

Equity attributable to shareholders of the Company

2,525,201

3,921,662

Non-Controlling Interest

(42,943

)

(42,943

)

Total Stockholders' Equity

2,482,258

3,878,719

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

2,828,238

4,247,068

(a) As reported in the Company's 10-K for the fiscal year ended August 31, 2020, as filed on October 15, 2020.

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LEXARIA BIOSCIENCE CORP.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

As Reported (b)

Pro Forma

August 31

Pro Forma

August 31

2019

Adjustments

Notes

2019

ASSETS

(Audited)

(Unaudited)

Current

Cash and cash equivalents

1,285,147

Marketable securities

64,214

Accounts receivable

273,145

(81,000

)

(2)

192,145

Other current assets

127,396

Prepaid expenses and deposit

68,927

Current assets from discontinued operations

81,000

(2)

81,000

Total Current Assets

1,818,829

Non-current assets, net

Intellectual property

265,127

Property & equipment

591,263

Total Non-Current Assets

856,390

TOTAL ASSETS

2,675,219

LIABILITIES

Current

Accounts payable and accrued liabilities

136,411

(320

)

(2)

136,091

Due to related party

48,096

Liabilities from discontinued operations

320

(2)

320

Total Current Liabilities

184,507

TOTAL LIABILITIES

184,507

STOCKHOLDERS' EQUITY

Share Capital

78,787

Additional paid-in capital

26,172,453

Deficit

(23,868,202

)

(23,868,202

)

Equity attributable to shareholders of the Company

2,383,038

Non-Controlling Interest

107,674

Total Stockholders' Equity

2,490,712

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

2,675,219

(b) As reported on the Company's 10-K for August 31, 2019 filed on November 14, 2019.

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LEXARIA BIOSCIENCE CORP.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. Dollars, except number of shares)

As Reported (a)

Pro Forma

August 31

Pro Forma

August 31

2020

Adjustments

Notes

2020

(Audited)

(Unaudited)

Revenue

384,543

(156,750

)

(2)

227,793

Cost of Goods Sold

99,378

Gross profit

285,165

128,415

Expenses

Accounting and audit

78,650

Depreciation and amortization

112,750

Advertising and promotions

204,277

(45,605

)

(2)

158,672

Bad debt

50,000

(25,000

)

(2)

25,000

Consulting

2,193,076

Investor relation

184,277

Legal and professional

371,844

Office and miscellaneous

292,880

12,978

(2)

305,858

Research and development

387,074

Travel

47,336

(672

)

(2)

46,664

Wages and salaries

401,283

Loss on disposal of marketable securities

18,198

Unrealized (gain)/loss on marketable securities

19,893

Inventory writeoff

8,240

4,369,778

4,311,479

Net loss from continuing operations

(4,084,613

)

(4,183,064

)

Discontinued operations

Income from operations disconinued

98,451

(2)

98,451

Gain on disposal

1,396,461

(1)

1,396,461

Gain on discontinued operations

1,494,912

Net loss and comprehensive loss for the period

(4,084,613

)

(2,688,152

)

Net loss and comprehensive loss attributable to:

Common shareholders

(3,933,996

)

(2,537,535

)

Non-controlling interest

(150,617

)

(150,617

)

Basic and diluted loss per share

Continuing operations

(0.05

)

(0.05

)

Discontinued

0.02

Total

(0.05

)

(0.03

)

Weighted average number of common shares outstanding

- Basic and diluted

83,201,271

(a) As reported in the Company's 10-K for the fiscal year ended August 31, 2020, as filed on October 15, 2020.

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LEXARIA BIOSCIENCE CORP.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. Dollars, except number of shares)

As Reported (b)

Pro Forma

August 31

Pro Forma

August 31

2019

Adjustments

Notes

2019

(Audited)

(Unaudited)

Revenue

222,610

(91,000

)

(2)

131,610

Cost of Goods Sold

22,893

Gross profit

199,717

108,717

Expenses

Accounting and audit

77,388

Depreciation and amortization

60,550

Advertising and promotions

515,360

(1,098

)

(2)

514,262

Bad debt

75,000

Consulting

1,444,735

Investor relation

203,893

Legal and professional

670,863

Office and miscellaneous

297,209

(14,226

)

(2)

282,983

Research and development

555,730

Travel

100,587

Wages and salaries

333,199

Loss on disposal of marketable securities

Unrealized (gain)/loss on marketable securities

16,434

Inventory writeoff

7,182

4,358,130

4,342,806

Net loss from continuing operations

(4,158,413

)

(4,234,089

)

Discontinued operations

Income from operations disconinued

75,676

(2)

75,676

Gain on disposal

Gain on discontinued operations

75,676

Net loss and comprehensive loss for the period

(4,158,413

)

(4,158,413

)

Net loss and comprehensive loss attributable to:

Common shareholders

(4,099,420

)

(4,099,420

)

Non-controlling interest

(58,993

)

(58,993

)

Basic and diluted loss per share

Continuing operations

(0.05

)

(0.05

)

Discontinued

Total

(0.05

)

(0.05

)

Weighted average number of common shares outstanding

- Basic and diluted

77,792,263

(b) As reported on the Company's 10-K for August 31, 2019 filed on November 14, 2019.

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LEXARIA BIOSCIENCE CORP.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

(1) Refers to the CanPharm Asset Sale, which occurred on November 18, 2020 and closed on December 9, 2020. As of the closing on December 9, 2020, the Company and CanPharm have no part or interest in those ongoing revenue streams from the license agreements. Pursuant to the CanPharm Asset Sale, CanPharm received CDN$350,000 in cash at closing. Additionally, Hill Street has agreed to issue to CanPharm CDN$1.5 million of Hill Street shares over 3 milestone tranches, of which 6,031,363 Hill Street Shares (valued at CDN$500,000) were issued to CanPharm at closing, and a CDN$2 million promissory note at closing included at its nominal value ($NIL) that bears interest at 10% per annum and is repayable in quarterly installments based on 5% of Hill Street’s gross revenues derived from products utilizing the intellectual property until fully paid.

(2) Adjustments identify the assets, liabilities, revenues and expenses for discontinued operations related to the assets sold in (1).

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