| Organization, Business and Going Concern |
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Organization, Business and Going Concern |
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Lexaria Biosciences Corp. (“Lexaria”, or the “Company”) Company was formed on December 9, 2004 under the laws of the State of Nevada as an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas properties in the United States and Canada. In March of 2014, the Company began its entry into the bioscience and alternative health and wellness business and discontinued its involvement in the oil and gas business in November 2014. In May 2016, the Company also commenced out-licensing its patented 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. |
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The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. 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 Company has a net loss attributable to its common shareholders of $6,598,843 for the year ended August 31, 2018 (2017: $1,869,277) and at August 31, 2017 had a deficit accumulated since its inception of $19,768,782 (2017: $13,169,939). The Company has a working capital balance of $2,240,411 as at August 31, 2018 (2017: $2,703,148). The recurring losses from operations and net capital deficiency raise substantial doubt about the Company’s ability to continue as a going concern.
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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. |
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