Report of Independent Registered Public Accounting Firm [Opinion on the Financial Statements](index=1&type=section&id=Opinion%20on%20the%20Financial%20Statements) The independent auditor issued an unqualified opinion on the financial statements, but noted a 'Going Concern' issue due to recurring losses and net capital deficiency - The auditor provided an unqualified opinion, stating the financial statements are fairly presented[4](index=4&type=chunk) - A 'Going Concern' issue was raised due to the Company's recurring losses from operations and net capital deficiency, creating substantial doubt about its ability to continue[5](index=5&type=chunk) - The auditor determined that there were no critical audit matters arising from the current period audit[10](index=10&type=chunk) Consolidated Financial Statements [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Artelo's total assets decreased dramatically to **$4.7 million** from **$13.0 million** in 2023, primarily due to the depletion of cash and marketable securities. Total liabilities saw a modest increase to **$1.8 million**. Consequently, total stockholders' equity plummeted from **$11.8 million** to **$2.9 million**, reflecting the significant net loss incurred during the year Consolidated Balance Sheets (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,338 | $2,815 | | Trading marketable securities | $0 | $7,611 | | Total Current Assets | $2,557 | $10,980 | | **Total Assets** | **$4,698** | **$13,043** | | **Liabilities & Equity** | | | | Total Current Liabilities | $1,772 | $1,291 | | **Total Liabilities** | **$1,841** | **$1,291** | | **Total Stockholders' Equity** | **$2,857** | **$11,752** | | **Total Liabilities and Stockholders' Equity** | **$4,698** | **$13,043** | [Consolidated Statements of Operations and Comprehensive Loss](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the year ended December 31, 2024, the company reported a net loss of **$9.8 million**, widening from a **$9.3 million** loss in 2023. The increased loss was primarily due to higher research and development expenses, which grew to **$6.0 million**. The company generated no revenue from operations Consolidated Statements of Operations (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | General and administrative | $4,115 | $4,234 | | Research and development | $5,993 | $5,696 | | **Total Operating Expenses** | **$10,108** | **$9,930** | | Loss from Operations | ($10,108) | ($9,930) | | **Net Loss** | **($9,826)** | **($9,289)** | | Basic and Diluted Loss per Common Share | ($18.30) | ($18.80) | [Consolidated Statements of Stockholders' Equity](index=3&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity declined significantly from **$11.8 million** at the end of 2023 to **$2.9 million** by the end of 2024. This **$8.9 million** decrease was driven by the **$9.8 million** net loss for the period, which was partially offset by **$0.8 million** in stock-based compensation and **$0.1 million** from the issuance of common shares Changes in Stockholders' Equity for the year ended Dec 31, 2024 (in thousands) | Description | Amount | | :--- | :--- | | Balance, December 31, 2023 | $11,752 | | Issuance of common shares | $112 | | Stock based compensation | $818 | | Net loss for the period | ($9,826) | | Other comprehensive income | $1 | | **Balance, December 31, 2024** | **$2,857** | [Consolidated Statements of Cash Flows](index=4&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company's cash and cash equivalents decreased by **$0.5 million** in 2024, ending the year at **$2.3 million**. A significant cash outflow of **$8.4 million** from operating activities was largely offset by a **$7.8 million** inflow from investing activities, primarily from the sale of marketable securities. Financing activities provided a small inflow of **$0.1 million** Consolidated Statements of Cash Flows (in thousands) | Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,350) | ($8,207) | | Net cash provided by investing activities | $7,769 | $3,507 | | Net cash provided by financing activities | $112 | $567 | | **Net change in cash and cash equivalents** | **($477)** | **($4,073)** | | Cash and cash equivalents - end of period | $2,338 | $2,815 | Notes to the Consolidated Financial Statements [NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS](index=4&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) Artelo Biosciences is a clinical-stage biopharmaceutical company developing therapeutics targeting lipid-signaling pathways. The note highlights a significant 'going concern' risk due to a history of losses, with a net loss of **$9.8 million** in 2024, and outlines management's funding plans - The company is a clinical-stage biopharmaceutical firm focused on developing therapeutics that modulate the endocannabinoid system (ECS)[25](index=25&type=chunk) - The company's history of losses and need for additional funding raise substantial doubt about its ability to continue as a going concern[28](index=28&type=chunk) - To fund operations, the company has a **$20 million** equity line agreement and a **$75 million** shelf registration statement on Form S-3[26](index=26&type=chunk)[27](index=27&type=chunk) [NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=5&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note details the company's accounting policies, including R&D tax credit recognition, the absence of marketable securities in 2024, and the exclusion of anti-dilutive securities from EPS calculations - R&D tax credits from the UK government are recognized as an offset to R&D expenses, totaling **$1,349 thousand** in 2024 and **$1,206 thousand** in 2023[33](index=33&type=chunk) - The balance of trading marketable securities decreased from **$7,611 thousand** at the end of 2023 to **$0** at the end of 2024[36](index=36&type=chunk) Anti-Dilutive Common Stock Equivalents Excluded from EPS | Security Type | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Stock options | 128,976 | 86,549 | | Warrants | 23,315 | 40,442 | | **Total** | **152,291** | **126,991** | [NOTE 3 – SEGMENT REPORTING](index=8&type=section&id=NOTE%203%20%E2%80%93%20SEGMENT%20REPORTING) The company operates as a single 'life science' segment, with performance evaluated by the CEO based on consolidated net loss and cash forecasts, and provides a breakdown of operating expenses - The Company operates as a single reporting segment: life science[53](index=53&type=chunk) Breakdown of Operating Expenses (in thousands) | Expense Category | 2024 | 2023 | | :--- | :--- | :--- | | **General and administrative** | | | | Employee and director compensation | $1,173 | $1,091 | | Professional fees | $1,133 | $1,101 | | **Total G&A** | **$4,115** | **$4,234** | | **Research and development** | | | | Professional fees | $5,169 | $4,531 | | R&D tax credits | ($1,349) | ($1,206) | | **Total R&D** | **$5,993** | **$5,696** | [NOTE 4 – RELATED PARTY TRANSACTIONS](index=9&type=section&id=NOTE%204%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) The company engaged in transactions with related parties, including entities owned or influenced by its Senior VP of European Operations and subsidiary directors, primarily for consulting and professional services - A company owned by the Senior VP, European Operations, provided consulting services totaling **$9 thousand** in 2024 and **$12 thousand** in 2023[59](index=59&type=chunk) - A company influenced by a subsidiary director provided professional services totaling **$100 thousand** in 2024 and **$135 thousand** in 2023[60](index=60&type=chunk) - A company controlled by a subsidiary director provided professional services totaling **$78 thousand** in 2024 and **$77 thousand** in 2023[61](index=61&type=chunk) [NOTE 5 - EQUITY](index=9&type=section&id=NOTE%205%20-%20EQUITY) This note details the company's equity activities, including the issuance of shares under its Equity Line, changes in outstanding warrants, and the granting and repricing of stock options in 2024 - In 2024, the Company issued **15,348** shares of Common Stock for aggregate proceeds of **$112 thousand** under its Equity Line agreement[65](index=65&type=chunk) Warrant Activity | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Outstanding Warrants | 23,315 | 40,442 | | Average Exercise Price | $67.50 | $294.29 | Stock Option Activity | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Options Granted | 42,427 | 34,344 | | Outstanding Options (End of Period) | 128,976 | 86,549 | - In February 2024, **81,372** options were repriced to **$9.30**, which was treated as a modification resulting in **$210 thousand** in additional compensation expense to be amortized[79](index=79&type=chunk) [NOTE 6 – INCOME TAXES](index=12&type=section&id=NOTE%206%20%E2%80%93%20INCOME%20TAXES) Artelo has not provided for income taxes due to its history of net operating losses, accumulating a **$27.4 million** NOL carryforward, against which a full valuation allowance has been established - The company has an aggregate net operating loss carryforward of **$27,433 thousand**, which will begin to expire in 2034[83](index=83&type=chunk) Net Deferred Tax Assets (in thousands) | Component | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net operating loss carryover | $5,678 | $5,135 | | Valuation allowance | ($5,678) | ($5,135) | | **Net deferred tax asset** | **$0** | **$0** | [NOTE 7– INTANGIBLE ASSET](index=12&type=section&id=NOTE%207%E2%80%93%20INTANGIBLE%20ASSET) The company holds an intangible asset valued at **$2.039 million** for the exclusive license to develop ART27.13, with no impairment recorded for 2024 or 2023 - The company has a capitalized intangible asset of **$2,039 thousand** for the exclusive license to develop and commercialize the compound ART27.13[85](index=85&type=chunk) - No impairment of the intangible asset was recorded at December 31, 2024, and 2023[38](index=38&type=chunk) [NOTE 8 - LEASE](index=12&type=section&id=NOTE%208%20-%20LEASE) This note details the company's operating leases for office space, including the extension of the U.S. lease through August 2027, resulting in total future minimum lease payments of **$115 thousand** - In March 2024, the company amended its U.S. office lease, extending the term to August 2027[87](index=87&type=chunk) Future Minimum Lease Payments (in thousands) | Year Ended Dec 31, | Total | | :--- | :--- | | 2025 | $42 | | 2026 | $43 | | 2027 | $30 | | **Total** | **$115** | [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=13&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company has financial commitments for R&D contracts contingent on milestones and operates without owned properties, laboratories, or manufacturing facilities, relying on leased office spaces - The Company has financial commitments for R&D contracts where payments are dependent on the progress and milestones achieved[96](index=96&type=chunk) - The company does not own any properties, laboratories, or manufacturing facilities and leases its executive office in California and an administrative office in the UK[96](index=96&type=chunk) [NOTE 10 – SUBSEQUENT EVENTS](index=13&type=section&id=NOTE%2010%20%E2%80%93%20SUBSEQUENT%20EVENTS) Following year-end, Artelo engaged in significant corporate and financing activities in 2025, including issuing **$900 thousand** in convertible notes, a 6:1 reverse stock split, a private placement, and granting stock options - On May 1, 2025, the Company issued at-market, unsecured convertible notes with gross proceeds of **$900 thousand**[92](index=92&type=chunk) - On June 13, 2025, the Company executed a **6:1** reverse stock split[93](index=93&type=chunk) - On June 26, 2025, the company closed a private placement for shares, pre-funded warrants, and common warrants[94](index=94&type=chunk) - In July 2025, the company granted options to purchase an aggregate of **98,866** shares to its CEO, employees, and consultants[95](index=95&type=chunk)[97](index=97&type=chunk)

Core Insights - Artelo Biosciences, Inc. presented preclinical data on its lead fatty acid binding protein 5 (FABP5) inhibitor, ART26.12, at the 35th Annual International Cannabinoid Research Society Symposium, demonstrating its potential to alleviate osteoarthritis (OA) pain [1][2][5] Company Overview - Artelo Biosciences is a clinical-stage pharmaceutical company focused on developing treatments that modulate lipid-signaling pathways for various conditions, including cancer, pain, and neurological disorders [7] - The company is advancing a portfolio of product candidates aimed at addressing significant unmet medical needs across multiple diseases [7] Product Development - ART26.12 is a first-in-class, non-opioid, non-steroidal analgesic drug candidate that has shown significant efficacy in alleviating OA pain in preclinical models [2][3] - The drug demonstrated comparable efficacy to naproxen, a commonly prescribed NSAID, without developing tolerance over a four-week chronic dosing period [3][5] - ART26.12's administration led to increased plasma levels of endocannabinoids 2-Arachidonoylglycerol (2-AG) and Oleoylethanolamide (OEA), which were positively correlated with pain relief [3] Safety Profile - ART26.12 may offer a safer alternative to NSAIDs, which are associated with gastrointestinal side effects in about one-third of patients and a five-fold increase in gastric ulcer complications [4] - The distinct pharmacological profile of ART26.12 suggests it could provide ongoing pain relief without the adverse effects commonly seen with NSAIDs [4][5] Research Collaboration - The research on ART26.12 was conducted in collaboration with Stony Brook University, highlighting the company's commitment to translational research [3][5] Market Context - Osteoarthritis affects approximately 606.9 million people globally, with over 32 million in the U.S., indicating a significant market opportunity for effective pain management solutions [9]

Core Viewpoint - Artelo Biosciences, Inc. has been upgraded from Hold to Buy by D. Boral Capital, with a price target of $20, highlighting its focus on Cachexia and chemotherapy-induced peripheral neuropathy (CIN) [1] Group 1: Drug Development and Pipeline - ART27.13, a Phase 2 asset, is a selective benzimadazole agonist acquired from AstraZeneca, showing potential to stimulate appetite and promote weight gain, which could improve the quality of life for cancer patients [1][2] - ART26.12, another asset licensed from the University of Stonybrook, appears to protect nerves from damage without compromising chemotherapy efficacy, with favorable results from its first-in-human study affirming its safety and pharmacokinetic profile [3] - New preclinical data on ART12.11, a Cannabidiol and Tetramethylpyrazine cocrystal drug candidate, was presented, indicating its potential for treating depression and anxiety, particularly in patients with cognitive dysfunction [4][6] Group 2: Efficacy and Market Position - ART12.11 demonstrated significant behavioral improvements in male rats under chronic stress, showing efficacy comparable to sertraline (Zoloft), a leading SSRI, while also reversing stress-induced memory deficits [6][7] - Artelo Biosciences stock increased by 14.66% to $16.42 following these developments, reflecting positive market sentiment [6]

Core Insights - Artelo Biosciences, Inc. presented new preclinical data on its drug candidate ART12.11, a cocrystal of Cannabidiol (CBD) and Tetramethylpyrazine (TMP), at the 35th Annual International Cannabinoid Research Society Symposium, indicating its potential as a next-generation antidepressant [1][2][3] Company Overview - Artelo Biosciences is a clinical-stage pharmaceutical company focused on developing treatments for various conditions, including cancer, pain, and neurological disorders, by modulating lipid-signaling pathways [1][9] - The company is advancing a portfolio of therapeutics aimed at addressing significant unmet medical needs across multiple diseases [9] Product Details - ART12.11 is a proprietary cocrystal composition that has shown better pharmacokinetics and efficacy compared to other forms of CBD in nonclinical studies [6][8] - The drug demonstrated robust antidepressant-like effects in a 28-day treatment regimen, significantly reversing behavioral impairments in stressed male rats, comparable to the leading SSRI sertraline [7] - ART12.11 not only restored mood-related behaviors but also reversed cognitive deficits associated with chronic stress, an area where sertraline was less effective [4][7] Research Findings - The preclinical studies indicated that ART12.11 improved depression-related behaviors and cognitive functions, positioning it as a differentiated candidate in the multi-billion-dollar antidepressant market [2][5][7] - The cocrystal's unique dual-action profile suggests it could meet critical needs in mental health by providing both mood-lifting and cognitive benefits [6][7] Intellectual Property - The US issued a composition of matter patent for ART12.11, enforceable until December 10, 2038, with additional patents granted or validated in 19 other countries [8]

Core Insights - Artelo Biosciences, Inc. has announced favorable results from its first-in-human study of ART26.12, a novel inhibitor of Fatty Acid Binding Protein 5 (FABP5), which shows promising safety and pharmacokinetic profiles [1][4][5] Company Overview - Artelo Biosciences is a clinical-stage pharmaceutical company focused on developing treatments that modulate lipid-signaling pathways for various conditions including cancer and pain [1][8] - The company is advancing a portfolio of therapeutics aimed at addressing significant unmet needs in multiple diseases and conditions [8] Product Development - ART26.12 is the first orally administered, selective, and peripherally restricted FABP5 inhibitor to enter human clinical evaluation, targeting chronic pain management [4][5] - The Phase 1 Single Ascending Dose (SAD) study enrolled 49 healthy volunteers to assess the safety, tolerability, and pharmacokinetics of ART26.12 [2][5] Market Opportunity - The chronic pain therapeutics market exceeded $97 billion globally in 2023 and is projected to surpass $159 billion by 2030, driven by increasing prevalence of conditions such as neuropathic pain and arthritis [5] - There is a significant gap in innovation for non-opioid therapies in the pain management market, which ART26.12 aims to fill with its unique mechanism of action [5] Safety and Efficacy Findings - All adverse events reported in the study were mild, transient, and self-resolving, with no drug-related adverse events observed [7] - The pharmacokinetic profile showed dose-dependent, linear absorption, indicating a predictable response to the drug [7] - A wide safety margin was observed between estimated therapeutic plasma concentrations and the highest exposure levels achieved, supporting potential titration for maximum efficacy [7] Future Development Plans - A Multiple Ascending Dose study is expected to commence in the fourth quarter of this year to further evaluate the safety, tolerability, and pharmacokinetics of ART26.12 with repeated dosing [5]

Core Viewpoint - Artelo Biosciences, Inc. has entered into a definitive securities purchase agreement for an At-the-Market private placement, aiming to raise approximately $1.425 million to support clinical data announcements and general corporate purposes [1][2]. Group 1: Securities Offering Details - Artelo will issue 136,844 shares of common stock and 93,179 pre-funded warrants, along with warrants to purchase 460,046 shares at $5.82 per share and 230,023 shares at $10.00 per share [2]. - The offering aims to provide sufficient capital for announcing clinical data regarding two phase 1 studies for ART26.12 and a phase 2 study readout from the CAReS trial for ART27.13 [2]. - The company plans to allocate $250,000 of the net proceeds to purchase the digital currency SOL, with the remainder for general corporate and working capital purposes [2]. Group 2: Company Overview - Artelo Biosciences is a clinical-stage pharmaceutical company focused on developing treatments that modulate lipid-signaling pathways for various conditions, including cancer, pain, and dermatological issues [4]. - The company is advancing a portfolio of product candidates aimed at addressing significant unmet medical needs across multiple diseases [4]. - Artelo is led by experienced biopharmaceutical executives and collaborates with respected researchers and technology experts to develop impactful therapies [4].

Core Viewpoint - Artelo Biosciences, Inc. has announced a 6-for-1 reverse stock split to increase the price per share to meet Nasdaq's minimum listing requirement of $1.00 per share, effective June 13, 2025 [1][2]. Company Overview - Artelo Biosciences, Inc. is a clinical-stage pharmaceutical company focused on developing treatments that modulate lipid-signaling pathways for various conditions including cancer, pain, and dermatological issues [3]. - The company is advancing a portfolio of product candidates aimed at addressing significant unmet medical needs across multiple diseases [3]. Reverse Stock Split Details - The reverse stock split will automatically convert every six shares of the company's common stock into one share, maintaining shareholders' pro-rata ownership [2]. - Post-split, approximately 546,667 shares of common stock will be issued and outstanding [2].

Core Insights - Artelo Biosciences, Inc. presented new data at the British Pain Conference, highlighting the therapeutic potential of Fatty Acid Binding Protein (FABP) inhibitors for treating osteoarthritis (OA) pain [1][2] - The lead FABP5 inhibitor, ART26.12, demonstrated analgesic effects comparable to naproxen in animal studies, with sustained effects over 28 days [4][3] - OA affects approximately 606.9 million people globally, with over 32 million in the U.S., leading to significant mobility loss and reduced quality of life [5] Company Overview - Artelo Biosciences is a clinical-stage pharmaceutical company focused on developing therapeutics that modulate lipid-signaling pathways for various conditions, including cancer, pain, and inflammation [7] - The company is advancing a portfolio of product candidates aimed at addressing unmet medical needs across multiple diseases [7] - ART26.12 is currently undergoing human trials, with initial clinical development targeting chemotherapy-induced peripheral neuropathy (CIPN) [6]

Core Insights - Artelo Biosciences, Inc. is focused on developing treatments for cancer, pain, and neuropsychiatric conditions through modulation of lipid-signaling pathways [1][5] - A recent publication highlights the therapeutic potential of Fatty Acid Binding Protein (FABP) inhibitors in treating mood and anxiety disorders, emphasizing the role of FABP5, FABP3, and FABP7 in neuroinflammatory signaling [2][3] Company Developments - Artelo's lead candidate, ART26.12, is a FABP5 inhibitor aimed at treating chemotherapy-induced peripheral neuropathy (CIPN) and is expected to report Phase 1 trial results in Q2 2025 [4] - The company has completed enrollment for a Phase 1 Single Ascending Dose study of ART26.12 with nearly 50 healthy volunteers, with data announcements anticipated this quarter [3][4] - Artelo's proprietary platform includes several backup and follow-on leads targeting FABP5 to elevate endogenous anandamide levels, which may provide anxiety-reducing and antidepressant effects without cognitive side effects [3][4] Research and Clinical Evidence - The peer-reviewed article co-authored by Doctor Steven Laviolette presents extensive preclinical evidence supporting the role of FABPs in the pathophysiology of anxiety and depression [2] - The findings suggest that inhibition of FABP5 can significantly elevate anandamide levels and modulate stress-related neurocircuits, indicating a promising avenue for neuropsychiatric treatment [3]

Drug Development - Artelo Biosciences is developing a dual cannabinoid agonist, ART27.13, for cancer-related anorexia, with Phase 1b enrollment completed in Q1 2023 and Phase 2a initiation in April 2023[91]. - The company received FDA clearance for ART26.12 in July 2024, with Phase 1 clinical trials for chemotherapy-induced peripheral neuropathy (CIPN) completed in April 2025[87][93]. - ART12.11, a proprietary cocrystal of CBD and TMP, is expected to have improved stability and bioavailability compared to non-cocrystal CBD compositions, with multiple potential indications being explored[94][95]. - Approximately 60% of advanced stage cancer patients are affected by cancer-related anorexia, highlighting the market need for ART27.13[90]. - ART26.12 has shown promising preclinical evidence in multiple pain models, prioritizing CIPN as the initial indication due to the lack of approved treatments[93]. - The company plans to develop ART12.11 for indications including PTSD, depression, epilepsy, and insomnia[95]. - The company has established a comprehensive approach to drug development, leveraging lipid signaling modulation pathways[86]. Intellectual Property - Artelo has secured two U.S. patents and multiple foreign patents for its CBD cocrystal composition, aiming for long-lasting market exclusivity[95]. Financial Performance - The company has not generated any revenue to date and may not do so in the near future[105]. - Total operating expenses for Q1 2025 were $2.4 million, a decrease of $0.2 million from $2.6 million in Q1 2024[108]. - The net loss for Q1 2025 was $2.4 million, compared to a net loss of $2.5 million in Q1 2024, reflecting a decrease of $0.1 million[108]. - Current assets decreased to $1.4 million as of March 31, 2025, from $2.6 million as of December 31, 2024[120]. - Current liabilities increased to $2.8 million as of March 31, 2025, from $1.8 million as of December 31, 2024[120]. - Cash used in operating activities for Q1 2025 was $1.6 million, down from $2.9 million in Q1 2024[122]. - The total working capital as of March 31, 2025, was negative $1.4 million, a decrease of $2.2 million from positive $0.8 million in 2024[119]. Capital and Funding - The company has issued a total of 425,344 shares under the Equity Line, generating aggregate proceeds of $679,000[111]. - The company filed a $75.0 million shelf registration statement effective for three years to provide flexibility for capital access[112]. - The company plans to pursue additional funding through equity or debt offerings to support ongoing operations[115]. Accounting and Reporting - Financial statements prepared in accordance with GAAP, requiring management estimates and assumptions[127]. - Actual results may differ from estimates due to inherent unpredictability and uncertainties[128]. - No new accounting standards adopted during the three months ended March 31, 2025[129]. - As a smaller reporting company, not required to provide detailed market risk disclosures[130]. - No off-balance sheet arrangements that materially affect financial condition or results of operations[126]. Management and Strategy - Artelo's management team has experience in developing and commercializing first-in-class therapeutics, with plans to retain rights for internal development[96]. - The company is actively pursuing collaborations in the biopharmaceutical industry to maximize shareholder value[96].