2017 Q2 Form 10-Q Financial Statement

#000114420417023801 Filed on May 02, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q3
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit $0.00 $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin $1.310M $1.490M $1.340M
YoY Change 1.55% 71.26% 15.52%
% of Gross Profit
Research & Development $534.6K $709.9K $440.0K
YoY Change 21.89% 83.78% 2.33%
% of Gross Profit
Depreciation & Amortization $358.00 $357.00
YoY Change
% of Gross Profit
Operating Expenses $1.841M $2.204M $1.780M
YoY Change 6.26% 75.67% 11.25%
Operating Profit -$1.841M -$2.204M
YoY Change 6.26% 75.67%
Interest Expense $0.00 $26.82K -$30.00K
YoY Change -100.0% -59.87% -107.32%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$1.780M -$1.870M -$1.820M
YoY Change 0.56% 49.6% 65.45%
Income Tax
% Of Pretax Income
Net Earnings -$1.776M -$1.869M -$1.820M
YoY Change 0.56% 49.19% 65.45%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$12.11K -$13.31K -$12.40K
COMMON SHARES
Basic Shares Outstanding 150.8M shares 138.6M shares 134.2M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.170M $7.230M $5.040M
YoY Change 7.3% 332.93% 27.27%
Cash & Equivalents $6.169M $7.230M $5.036M
Short-Term Investments
Other Short-Term Assets $150.0K $350.0K $110.0K
YoY Change -6.25% 288.89% 175.0%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $6.320M $7.576M $5.144M
YoY Change 7.12% 330.58% 28.51%
LONG-TERM ASSETS
Property, Plant & Equipment $3.458K $3.816K $0.00
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00
YoY Change
Total Long-Term Assets $3.458K $3.816K $0.00
YoY Change 503.8%
TOTAL ASSETS
Total Short-Term Assets $6.320M $7.576M $5.144M
Total Long-Term Assets $3.458K $3.816K $0.00
Total Assets $6.320M $7.579M $5.144M
YoY Change 7.12% 330.65% 28.51%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $210.0K $208.6K $374.9K
YoY Change -57.14% 49.02% 61.76%
Accrued Expenses $160.0K $150.0K $600.0K
YoY Change -15.79% -6.25% 140.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $900.0K
YoY Change -100.0% 91.49%
Total Short-Term Liabilities $370.3K $362.8K $1.879M
YoY Change -45.54% -9.31% 46.09%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $80.00K
YoY Change -100.0% -100.0% -91.75%
Other Long-Term Liabilities $2.570M $2.630M $30.00K
YoY Change 756.67% 874.07% -85.71%
Total Long-Term Liabilities $2.570M $2.635M $104.5K
YoY Change 100.78% 111.98% -91.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $370.3K $362.8K $1.879M
Total Long-Term Liabilities $2.570M $2.635M $104.5K
Total Liabilities $2.940M $2.997M $1.983M
YoY Change 50.0% 82.56% -19.47%
SHAREHOLDERS EQUITY
Retained Earnings -$24.99M -$21.71M
YoY Change 37.8% 38.11%
Common Stock $29.57M $24.88M
YoY Change 63.0% 44.1%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.380M $4.582M $3.161M
YoY Change
Total Liabilities & Shareholders Equity $6.320M $7.579M $5.144M
YoY Change 7.12% 330.65% 28.51%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q3
OPERATING ACTIVITIES
Net Income -$1.776M -$1.869M -$1.820M
YoY Change 0.56% 49.19% 65.45%
Depreciation, Depletion And Amortization $358.00 $357.00
YoY Change
Cash From Operating Activities -$980.0K -$2.030M -$1.090M
YoY Change -26.32% 70.59% -32.3%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -90.00K 5.480M 370.0K
YoY Change -101.66% 13600.0% -83.91%
NET CHANGE
Cash From Operating Activities -980.0K -2.030M -1.090M
Cash From Investing Activities 0.000 0.000
Cash From Financing Activities -90.00K 5.480M 370.0K
Net Change In Cash -1.070M 3.450M -720.0K
YoY Change -126.23% -400.0% -204.35%
FREE CASH FLOW
Cash From Operating Activities -$980.0K -$2.030M -$1.090M
Capital Expenditures $0.00 $0.00
Free Cash Flow -$980.0K -$2.030M
YoY Change

Facts In Submission

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CY2015Q1 us-gaap Debt Instrument Convertible Conversion Price1
DebtInstrumentConvertibleConversionPrice1
0.20
CY2016Q3 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
0 USD
CY2017Q1 us-gaap Derivative Fair Value Of Derivative Liability Amount Not Offset Against Collateral
DerivativeFairValueOfDerivativeLiabilityAmountNotOffsetAgainstCollateral
354988 USD
us-gaap Proceeds From Issuance Of Debt
ProceedsFromIssuanceOfDebt
395012 USD
CY2016Q3 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
0 USD
dei Document Type
DocumentType
10-Q
dei Amendment Flag
AmendmentFlag
false
dei Document Period End Date
DocumentPeriodEndDate
2017-03-31
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2017
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Registrant Name
EntityRegistrantName
Arch Therapeutics, Inc.
dei Entity Central Index Key
EntityCentralIndexKey
0001537561
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--09-30
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Trading Symbol
TradingSymbol
ARTH
CY2017Q2 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
150769042 shares
CY2017Q1 us-gaap Derivative Liabilities Noncurrent
DerivativeLiabilitiesNoncurrent
2634604 USD
CY2016Q3 us-gaap Derivative Liabilities Noncurrent
DerivativeLiabilitiesNoncurrent
0 USD
CY2017Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2016Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2017Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
300000000 shares
CY2016Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
300000000 shares
CY2017Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
150769042 shares
CY2016Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
136657075 shares
CY2017Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
150769042 shares
CY2016Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
136657075 shares
arth Proceeds From Issuance Of Common Stock And Warrants
ProceedsFromIssuanceOfCommonStockAndWarrants
0 USD
arth Proceeds From Issuance Of Common Stock And Warrants
ProceedsFromIssuanceOfCommonStockAndWarrants
6068686 USD
us-gaap Stock Issued1
StockIssued1
106666 USD
us-gaap Stock Issued1
StockIssued1
0 USD
arth Financing Cost On Issuance Of Common Stock And Warrants
FinancingCostOnIssuanceOfCommonStockAndWarrants
93687 USD
arth Financing Cost On Issuance Of Common Stock And Warrants
FinancingCostOnIssuanceOfCommonStockAndWarrants
0 USD
us-gaap Liabilities Assumed1
LiabilitiesAssumed1
2996110 USD
us-gaap Liabilities Assumed1
LiabilitiesAssumed1
0 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <u><font style="FONT-SIZE: 10pt">Use of Estimates</font></u></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 0.5in"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <u><font style="FONT-SIZE: 10pt">Concentration of Credit Risk</font></u></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash in bank deposits accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <i><font style="FONT-SIZE: 10pt">Derivative Liabilities</font></i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument, in accordance with FASB ASC Topic 815, Derivatives and Hedging. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company&#8217;s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities and other derivative financial instruments that require separate accounting as liabilities are recorded on the Company&#8217;s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3925 USD
CY2017Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
8218 USD
CY2017Q1 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
0 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
22100 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
5500 USD
CY2017Q1 us-gaap Derivative Liabilities
DerivativeLiabilities
2996110 USD
CY2017Q1 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2016Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2016Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
12379210 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
14504210 shares
CY2017Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
228000 USD
us-gaap Interest Paid
InterestPaid
361268 USD
us-gaap Interest Paid
InterestPaid
0 USD

Files In Submission

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0001144204-17-023801.txt Edgar Link pending
0001144204-17-023801-xbrl.zip Edgar Link pending
arth-20170331.xml Edgar Link completed
arth-20170331.xsd Edgar Link pending
arth-20170331_cal.xml Edgar Link unprocessable
arth-20170331_def.xml Edgar Link unprocessable
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