Artelo Biosciences, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Artelo Biosciences, Inc. has filed its 2023 annual report (10-K), detailing financial data, stock options, warrants, and subsequent events.</b>

AI Summary

ARTELO BIOSCIENCES, INC. (ARTL) filed a Annual Report (10-K) with the SEC on March 25, 2024. Artelo Biosciences, Inc. filed its annual report for the fiscal year ending December 31, 2023. The company was formerly known as Reactive Medical Inc. and Knight Knox Development Corp. The filing includes details on stock options and warrants as of December 31, 2023, 2022, and 2021. Subsequent events related to equity incentives are noted for January and February 2024. The report details right-of-use assets and lease information as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking ARTELO BIOSCIENCES, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Artelo Biosciences' financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The inclusion of details on stock options, warrants, and subsequent events offers insights into potential dilution, executive compensation, and recent corporate actions that could impact shareholder value.

Risk Assessment

Risk Level: medium — ARTELO BIOSCIENCES, INC. shows moderate risk based on this filing. The company's financial performance and operational status are detailed in the 10-K, but specific financial figures like revenue, net income, and debt are not readily available in this header data, making a full risk assessment difficult.

Analyst Insight

Review the full 10-K filing to understand Artelo Biosciences' financial performance, R&D pipeline, and any disclosed risks or strategic initiatives.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-25 — Filing Date (Filed as of date)
• 001-38951 — SEC File Number (SEC file number)
• 24776921 — Film Number (Film number)

Key Players & Entities

• ARTELO BIOSCIENCES, INC. (company) — Filer name
• REACTIVE MEDICAL INC. (company) — Former company name
• KNIGHT KNOX DEVELOPMENT CORP. (company) — Former company name
• 2023-12-31 (date) — Conformed period of report
• 2024-03-25 (date) — Filed as of date
• 2834 (industry_code) — Standard Industrial Classification
• NV (state) — State of incorporation
• 505 LOMAS SANTA FE, SUITE 160 (address) — Business address

FAQ

Industry Context

Artelo Biosciences operates in the pharmaceutical preparations industry, focusing on the development of novel therapeutics.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the annual filing of a Form 10-K.

What Investors Should Do

1. Analyze the full 10-K for detailed financial statements, including revenue, expenses, and cash flow.
2. Examine the 'Risk Factors' section for potential challenges and uncertainties facing Artelo Biosciences.
3. Review management's discussion and analysis (MD&A) for insights into the company's strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-25: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; comparison to prior filings would require access to those documents.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share ARTL The Nasdaq
• $1.99 — ne 30, 2023, was $ 5,629,634 based on a $1.99 average bid and asked price of such com
• $8.0 million — To date, SBU has received approximately $8.0 million in funding from the National Institutes
• $4.2 million — to develop these candidates including a $4.2 million grant in 2020 to advance research of FA
• $2 billion — al Cancer anorexia cachexia syndrome: >$2 billion ART26.12 – FABP5 inhibitor Chemothera
• $1 billion — anxiety disorders Pre-clinical CIPN: >$1 billion Prostate cancer: approximately $9 bill
• $9 billion — billion Prostate cancer: approximately $9 billion Breast cancer: approximately $18 billi
• $18 billion — 9 billion Breast cancer: approximately $18 billion Atopic Dermatitis: $10 billion PTSD:
• $10 billion — imately $18 billion Atopic Dermatitis: $10 billion PTSD: approximately $7 billion ART12.
• $7 billion — titis: $10 billion PTSD: approximately $7 billion ART12.11 – Synthetic CBD Cocrystal An
• $11 billion — ons Pre-clinical Anxiety disorders: >$11 billion PTSD: approximately $7 billion IBD:
• $100,000 — waiver by NEOMED of the cash payment of $100,000 that was due to NEOMED on October 1, 20

Filing Documents

• artl_10k.htm (10-K) — 1442KB
• artl_ex41.htm (EX-4.1) — 28KB
• artl_ex231.htm (EX-23.1) — 2KB
• artl_ex311.htm (EX-31.1) — 11KB
• artl_ex321.htm (EX-32.1) — 5KB
• artl_ex971.htm (EX-97.1) — 33KB
• 0001640334-24-000473.txt (&nbsp;) — 4728KB
• artelobio-20231231.xsd (EX-101.SCH) — 36KB
• artelobio-20231231_lab.xml (EX-101.LAB) — 238KB
• artelobio-20231231_cal.xml (EX-101.CAL) — 36KB
• artelobio-20231231_pre.xml (EX-101.PRE) — 196KB
• artelobio-20231231_def.xml (EX-101.DEF) — 108KB
• artl_10k_htm.xml (XML) — 583KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 19 ITEM 1B. UNRESOLVED STAFF COMMENTS 48 ITEM 1C. CYBERSECURITY 48 ITEM 2.

PROPERTIES

PROPERTIES 49 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 49 ITEM 4. MINE SAFETY DISCLOSURES 49 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 50 ITEM 6. [RESERVED] 51 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 51 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 57 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F-1 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 58 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 58 ITEM 9B. OTHER INFORMATION 58 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 58 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 59 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 69 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 76 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 79 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 80 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 81 ITEM 16. FORM 10-K SUMMARY 81

SIGNATURES

SIGNATURES 82 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements that are based on management's beliefs and assumptions and on information currently available to management. Some of the statements in the sections captioned "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," and elsewhere contain forward-looking statements. In some cases, you can identify these statements by terms such as "anticipate," "believe," "could," "estimate," "expects," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of these terms or other comparable expressions that convey uncertainty of future events or outcomes, although not all forward-looking statements contain these terms. Unless otherwise noted, all amounts are expressed in United States dollars ("USD") and "we", "us", "our" and the "Company" refer to Artelo Biosciences, Inc., including its subsidiaries unless otherwise indicated. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about: our plans to obtain funding for our operations, including funding necessary to complete our clinical trials, develop, manufacture and commercialize our product candidates; our ability to raise any current or future funding to meet our capital requirements; the expected timing of the initiation and completion of our clinical studies for our product candidates; the size and growth of the markets for our product candidates; our commercialization, marketing, and manufacturing capabilities and strategies; any impact of the global COVID19 pandemic, or responses to the pandemic, on our business, clinical trials or personnel; geopolitical

BUSINESS

ITEM 1. BUSINESS Corporate Overview We incorporated in the State of Nevada on May 2, 2011, and are presently based in the County of San Diego, California. We are a clinical stage biopharmaceutical company focused on the development and commercialization of therapeutics that target lipid-signaling pathways, including the endocannabinoid system (the "ECS"), a network of receptors and neurotransmitters that form a biochemical communication system throughout the body. Our product candidate pipeline broadly leverages leading scientific methodologies and balances risk across mechanism of action and stages of development. Our programs represent a comprehensive approach in utilizing the power and promise of lipid signaling to develop pharmaceuticals for patients with unmet healthcare needs. We are currently developing a dual cannabinoid (CB) agonist that targets both the CB 1 and CB 2 receptors. This synthetic small molecule program is a G protein-coupled receptor ("GPCR") designated ART27.13. We are developing ART27.13 as a potential treatment for anorexia associated with cancer in a Phase 1b/2a trial, titled the Cancer Appetite Recovery Study ("CAReS"). Our second program, ART26.12 is a small molecule and the lead product candidate from our chemical library of inhibitors of fatty acid binding proteins, notably Fatty Acid Binding Protein 5 ("FABP5"), undergoing pre-clinical research as a potential treatment for painful neuropathies. In addition, ART26.12 may have broad applications as a cancer therapeutic, a treatment for pain and inflammation, and potential use in anxiety-related disorders, including post-traumatic stress disorder. We are also developing our own invention ART12.11 (the "CBD cocrystal"). ART12.11 is our patented solid-state composition of cannabidiol ("CBD") and tetramethylpyrazine ("TMP"). TMP serves as the coformer in the CBD cocrystal. ART12.11 may be considered by the regulatory authorities as a fixed drug combination instead of a new chemical ent

View Full Filing

View this 10-K filing on SEC EDGAR