Lexaria Corp (LXRP) SEC Quarterly Report (10-Q) for Q2 2015

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2015

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number ____________________

Lexaria Corporation
(Exact name of registrant as specified in its charter)

Nevada	20-2000871
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

950 - 1130 West Pender Street, Vancouver, BC	V6E 4A4
(Address of principal executive offices)	(Zip Code)

604-602-1675
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
[X] YES [ ] NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act

Large accelerated filer [ ]		Accelerated filer [ ]
Non-accelerated filer [ ]		Smaller reporting company [ X ]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act
[ ] YES [X] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.
[ ] YES [ ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
39,932,984 common shares issued and outstanding as of July 11, 2015

PART 1 – FINANCIAL INFORMATION

Item 1. Financial Statements.

Our unaudited interim consolidated financial statements for the nine month period ended May 31, 2015 form part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

LEXARIA CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)

		May 31			August 31
		2015			2014
ASSETS
Current
Cash and cash equivalents	$	832,101		$	703,030
Accounts receivable		21,632			97,003
Inventory		79,344
Assets Held For Sale		-			1,400,000
Prepaid expenses and deposit		224,819			367,441
		1,157,896			2,567,474

Patent		40,955			-
Medical Marijuana Investments (Note 7)		-			67,662
		40,955			67,662
TOTAL ASSETS	$	1,198,851		$	2,635,136

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current
Accounts payable and accrued liabilities	$	60,835		$	93,553
Loan payable (Note 8)		-			776,936
Share Subscriptions Receivable		-			45,780
Due to a related party (Note 10)		1,769			1,769
Total Current Liabilities		62,604			918,038

TOTAL LIABILITIES		62,604			918,038

STOCKHOLDERS' EQUITY

Share Capital
Authorized: 200,000,000 common voting shares with a par value of $0.001 per share Issued and outstanding: 39,682,984 common shares at May 31, 2015 and 34,249,690 common shares at August 31, 2014		39,682			34,249

Additional paid-in capital		10,683,185			10,033,438
Shares to be returned		(500	)		(35,200	)
Deficit		(9,570,059	)		(8,315,389	)
Equity attributable to shareholders of the Company		1,152,308			1,717,098
Non-Controlling Interest		(16,061	)		-
Total Stockholders' Equity		1,136,247			1,717,098

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,198,851		$	2,635,136

The accompanying notes are an integral part of these consolidated financial statements.

F-1

LEXARIA CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)

	THREE MONTHS ENDED		NINE MONTHS ENDED
	May 31		May 31	May 31

	2015	2014	2015	2014
Revenue
Sales	7,187	-	10,070	-
Cost of Goods Sold
Cost of Goods Sold	9,691	-	11,743	-
Other	-	-	-	-
	9,691	-	11,743	-

Gross profit (loss)	(2,504)	-	(1,673)	-

Expenses
Accounting and audit	7,007	9,409	45,825	37,701
Insurance	1,479	1,803	4,551	5,108
Advertising and promotions	96,841	-	194,222	-
Bank charges and exchange (gain) loss	2,872	14,240	(3,111)	(38,273)
Stock Based Compensation	68,061	-	242,781	-
Consulting (note 11)	210,078	373,670	511,720	484,583
Fees and Dues	17,964	11,702	46,707	29,506
Interest expense from loan payable (note 6,8)	-	53,123	31,544	161,617
Investor relation	-	-	-
Legal and professional	5,397	6,144	41,575	6,988
Office and miscellaneous	8,735	7,040	19,785	8,218
Research and Development	107		48,386	-
Rent	25,137	13,937	79,099	31,092
Telephone	2,081	1,519	5,753	3,872
Taxes	-	-	3,578
Travel	55,081	35,093	70,936	47,451
MMJ expense	7,664		22,664	-
Write-off of oil and gas property	-		-	19,293
	508,504	527,680	1,366,015	797,156
(Loss) for the period before other income	(511,008)	(527,680)	(1,367,688)	(797,156)
Income (Loss) from discontinued operations	-	89,684	48,918	157,218

Net (loss) for the period	(511,008)	(437,996)	(1,318,770)	(639,938)
Net (loss) attributable to:
Common Shareholders	(467,506)		(1,254,670)
Non-Controlling Interest	(43,502)		(64,100)

Basic and diluted (loss) per share	(0.01)	(0.03)	(0.04)	(0.04)

Weighted average number of common shares outstanding
- Basic and diluted	35,543,199	16,431,452	34,870,866	16,431,452

The accompanying notes are an integral part of these consolidated financial statements.

F-2

LEXARIA CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)

		Nine Months Ended
		May 31			May 31

		2015			2014
Cash flows used in operating activities
Net (loss) from continued operations	$	(1,367,688	)	$	(797,156	)
Income (loss) from discontinued operations		48,918			157,218
Net (loss) for the period		(1,318,770	)		(639,938	)
Adjustments to reconcile net loss to net cash used in operating activities:
Consulting - Stock based compensation		196,998			-
Depletion		-			117,716
MMJ Joint Venture		222,662			-
Other non-cash items		48,039			(23,497	)
Change in operating assets and liabilities:
(Increase)/Decrease in accounts receivable		75,371			30,675
(Increase)/Decrease in inventory		(79,344	)		-
(Increase)/ Decrease in prepaid expenses and deposit		(32,376	)		(418,031	)
Increase in accounts payable and accrued liabilities		(32,718	)		(36,423	)
Net cash used in operating activities		(920,138	)		(969,498	)

Cash flows used in investing activities
Oil and gas property acquisition and exploration costs		-			80,042
Proceeds from sale of oil and gas property		721,806			-
Patent		(40,955	)		-
Net cash used in investing activities		680,851			80,042

Cash flows from financing activities
Payments of loan payable		(98,742	)		(403,150	)
Proceeds from private placement, convertible debt,		467,100			2,104,950
Net cash from financing Activities		368,358			1,701,800
Increase (Decrease) in cash and cash equivalents		129,071			812,3454
Cash and cash equivalents, beginning of year		703,030			65,542
Cash and cash equivalents, end of year	$	832,101		$	877,886
Supplemental information of cash flows:
Interest paid in cash	$	98,742		$	58,625
Income taxes paid in cash	$	-		$	-

The accompanying notes are an integral part of these consolidated financial statements.

F-3

LEXARIA CORP.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
(Expressed in U.S. Dollars)

	COMMON STOCK

					ADDITIONAL								TOTAL
					PAID-IN		SHARES TO						STOCKHOLDERS'
	SHARES		AMOUNT		CAPITAL		BE RETURNED		DEFICIT		NCI		EQUITY

Balance, October 31, 2013	16,431,452		16,432		7,140,148				(5,057,677	)			2,098,903
Shares issued for PP @ $0.06	500,000		500		29,500								30,000
Shares issued for services @ $0.10	1,500,000		1,500		178,500								180,000
Shares issued for services @ $0.40	150,000		150		62,850								63,000
Shares issued for services @ $0.60	20,833		21		12,479								12,500
Shares issued for PP @ $0.12	11,419,999		11,420		1,246,735								1,258,155
Shares issued for option exercise @ $0.35	50,000		50		17,450								17,500
Stock Options issued @ $0.60					26,112								26,112
Shares issued for debt conversion @$0.35	552,380		552		192,781								193,333
Shares issued per LOI @ $0.40	555,000		555		221,445								222,000
Shares issued per agreement @ $0.39	110,000		110		42,790								42,900
Shares issued per agreement @ $0.32	550,000		550		175,450								176,000
Stock Options issued @ $0.25					183,432								183,432
Shares issued for option exercise @ $0.10	50,000		50		4,950								5,000
Shares issued per agreement @ $0.30	55,000		55		16,445								16,500
Shares issued per agreement @ $0.26	880,000		880		263,120								264,000
Shares issued per LOI @ $0.30	91,662		92		27,408								27,500
Shares issued per agreement @ $0.16	82,031		82		13,043								13,125
Shares issued for PP @ $0.15	1,251,333		1,250		178,800								180,050
Comprehensive income (loss):
(Loss) for the period									(3,257,712	)			(3,257,712	)

Balance, August 31, 2014	34,249,690		34,249		10,033,438		(35,200	)	(8,315,389	)			1,717,098
Shares Cancelled	(110,000	)	(110	)	(35,090	)	35,200						-
Shares issued for PP @$0.15	305,200		305		45,475								45,780
Non-controlling Interest											(16,061	)	(16,061	)
Shares issued per agreement @$0.105	238,094		238		24,762								25,000
Stock Options issued @ $0.11 and $0.10					144,198								144,198
Shares issued for PP @$0.10	5,000,000		5,000		462,100								467,100
Stock Options issued @$0.10					52,802								52,802
Shares to be cancelled	-				(44,500	)	(500	)					(45,000	)
Comprehensive income (loss):									(1,254,670	)			(1,254,670	)
Balance, May 31, 2015	39,682,984		39,682		10,683,185		(500)		(9,570,059)		(16,061)		1,136,247

The accompanying notes are an integral part of these consolidated financial statements.

F-4