2020 Q4 Form 10-K Financial Statement

#000164033420002722 Filed on November 04, 2020

View on sec.gov

Income Statement

Concept 2020 Q4 2020 2019 Q3
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $840.0K $2.770M $720.0K
YoY Change 25.37% 30.66% 100.0%
% of Gross Profit
Research & Development $595.0K $1.919M $230.0K
YoY Change -11.19% 75.73% -30.3%
% of Gross Profit
Depreciation & Amortization $0.00 $500.00 $0.00
YoY Change -1.96%
% of Gross Profit
Operating Expenses $1.436M $4.686M $950.0K
YoY Change 7.16% 46.0% 37.68%
Operating Profit -$1.436M -$4.686M
YoY Change 46.0%
Interest Expense $0.00 $30.00K $110.0K
YoY Change -100.0% -97.03%
% of Operating Profit
Other Income/Expense, Net $1.000K $31.00K $0.00
YoY Change -97.01%
Pretax Income -$1.430M -$4.650M -$850.0K
YoY Change 9.16% 114.29% 23.19%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$1.435M -$4.655M -$850.0K
YoY Change 9.85% 114.3% 23.19%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$139.9K -$1.253M -$283.3K
COMMON SHARES
Basic Shares Outstanding 15.11M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q4 2020 2019 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.390M $2.140M $4.420M
YoY Change 119.29% -51.58% 1200.0%
Cash & Equivalents $5.783M $2.140M $4.424M
Short-Term Investments $3.436M
Other Short-Term Assets $110.0K $200.0K $10.00K
YoY Change 22.22% 1900.0% -75.0%
Inventory
Prepaid Expenses $111.1K $18.62K
Receivables
Other Receivables
Total Short-Term Assets $7.500M $2.340M $4.443M
YoY Change 113.68% -47.3% 1010.65%
LONG-TERM ASSETS
Property, Plant & Equipment $185.00 $0.00 $721.00
YoY Change -69.06%
Goodwill
YoY Change
Intangibles $2.039M
YoY Change
Long-Term Investments
YoY Change
Other Assets $189.0K
YoY Change
Total Long-Term Assets $2.040M $2.040M $2.040M
YoY Change 0.0% 0.0%
TOTAL ASSETS
Total Short-Term Assets $7.500M $2.340M $4.443M
Total Long-Term Assets $2.040M $2.040M $2.040M
Total Assets $9.540M $4.380M $6.483M
YoY Change 71.89% -32.41% 1520.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $470.0K $490.0K $639.4K
YoY Change -17.54% 40.0% 20.64%
Accrued Expenses $28.00K
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $490.0K $500.0K $1.022M
YoY Change -15.52% -50.98% 92.74%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $67.00K
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $490.0K $500.0K $1.022M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $490.0K $500.0K $1.020M
YoY Change -15.52% -50.98% 92.45%
SHAREHOLDERS EQUITY
Retained Earnings -$4.811M
YoY Change
Common Stock $15.11K $3.354K
YoY Change 341.1%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.435M $3.870M $5.460M
YoY Change
Total Liabilities & Shareholders Equity $9.540M $4.380M $6.483M
YoY Change 71.96% -32.41% 1520.68%

Cashflow Statement

Concept 2020 Q4 2020 2019 Q3
OPERATING ACTIVITIES
Net Income -$1.435M -$4.655M -$850.0K
YoY Change 9.85% 114.3% 23.19%
Depreciation, Depletion And Amortization $0.00 $500.00 $0.00
YoY Change -1.96%
Cash From Operating Activities -$1.320M -$4.347M -$1.060M
YoY Change 25.71% 55.66% 107.84%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$1.500M
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities -$3.439M
YoY Change
Cash From Investing Activities $0.00 $0.00 -$1.500M
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $6.579M $1.978M
YoY Change -76.39%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $6.579M $1.981M 6.700M
YoY Change -65890.0% -76.35% 1164.15%
NET CHANGE
Cash From Operating Activities -$1.320M -$4.347M -1.060M
Cash From Investing Activities $0.00 $0.00 -1.500M
Cash From Financing Activities $6.579M $1.981M 6.700M
Net Change In Cash $5.259M -$2.366M 4.140M
YoY Change -601.2% -157.93% 20600.0%
FREE CASH FLOW
Cash From Operating Activities -$1.320M -$4.347M -$1.060M
Capital Expenditures $0.00 -$1.500M
Free Cash Flow -$4.347M $440.0K
YoY Change 236.28% -186.27%

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<p style="MARGIN:0px;text-align:justify"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span><span><strong>NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS</strong></span></span></span></span></span></span></p><p style="MARGIN:0px">&#160;</p><p style="MARGIN:0px;text-align:justify"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span><span>ARTELO BIOSCIENCES, INC. (&#x201c;we&#x201d;, &#x201c;us&#x201d;, &#x201c;our&#x201d;, the &#x201c;Company&#x201d;) is a Nevada corporation incorporated on May 2, 2011 and based in San Diego County, California. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company&#x2019;s fiscal year end is August 31.</span></span></span></span></span></span></p><p style="MARGIN:0px">&#160;</p><p style="MARGIN:0px;text-align:justify"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span><span>The Company registered fully owned subsidiaries in Ireland, Trinity Reliant Ventures Limited, on November 11, 2016 and in the UK, Trinity Research &amp; Development Limited, on June 2, 2017. On January 8, 2020 Trinity Research and Development Limited changed its name to Artelo Biosciences Limited. The Company incorporated a fully owned subsidiary in Canada, Artelo Biosciences Corporation, on March 18, 2020. Operations in the subsidiaries have been consolidated in the financial statements.</span></span></span></span></span></span></p><p style="MARGIN:0px;text-align:justify">&#160;</p><div><div><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">We are a clinical stage biopharmaceutical company focused on developing and commercializing treatments intended to modulate the endocannabinoid system.</span></span></p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt">&#160;</p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><em>Liquidity</em></span></span></p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt">&#160;</p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The Company has incurred losses for the past several years and a net loss of $4.7 million during the year ended August 31, 2020. Subsequent to August 31, 2020, we completed a public offering for net proceeds of approximately $6.6 million, which substantially increased our cash and cash equivalents and improved our working capital position (Note 9). Consequently, our existing cash resources and cash received from the public offering are expected to provide sufficient funds to carry out our planned operations for 12 months from the date that our consolidated financial statements are issued.</span></span></p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt">&#160;</p><p style="margin:0px;font-family:times new roman;font-size:10pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Our continuation as a <span>going </span>concern<span style="background:white"> for a period beyond those 12 months will be dependent upon our ability to obtain adequate additional financing, as our operations are capital intensive, and future capital expenditures and additional working capital are expected. The Company's independent registered public accounting firm expressed in its report on the Company's financial statements for the year ended August 31, 2019 that there was substantial doubt about the Company's ability to continue as a going concern. Based on management's plans and the significant capital raised on October 14, 2020, that substantial doubt has been alleviated.</span></span></span></p><p style="margin:0px;text-align:justify;font-family:times new roman;font-size:10pt">&#160;</p></div></div><p style="MARGIN:0px;text-align:justify"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span><span><i>Reverse stock split</i></span></span></span></span></span></span></p><p style="MARGIN:0px;text-align:justify">&#160;</p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>The Company filed a Certificate of Change with the Secretary of State of Nevada, pursuant to which, effective on June 20, 2019, the Company effected a one-for-eight reverse split of its authorized and issued and outstanding common stock (the &#x201c;Reverse Stock Split&#x201d;). The number of authorized shares of common stock was reduced from 150,000,000 to 18,750,000. The Company&#x2019;s authorized Preferred Stock was reduced from 50,000,000 to 6,250,000. All share and per share information in these financial statements retroactively reflect this reverse stock split.</span></span></span></p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><em><span><span>Covid 19</span></span></em></span></span></p><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>As the COVID-19 pandemic is still evolving at this time and much of its impact remains unknown, the Company is not able to predict the impact it may have on the development of its product candidates and business. The severity of the COVID-19 pandemic could also negatively impact the Company&#x2019;s access to its existing supply chain by delaying the delivery of key raw materials used in its product candidates and therefore delay the delivery of such products for use in its clinical trials. Any of these results could have a material adverse impact to our business.</span></span></span></span></p>
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6600000 USD
CY2020 us-gaap Property Plant And Equipment Depreciation Methods
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straight-line method
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0 USD
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0 shares
CY2020 us-gaap Use Of Estimates
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7.51 USD
CY2020 us-gaap Concentration Risk Credit Risk
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CY2019 us-gaap Allocated Share Based Compensation Expense
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52000 USD
CY2020 artl Unamortized Stock Base Compensation
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CY2020 us-gaap Prior Period Reclassification Adjustment Description
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CY2020 us-gaap Allocated Share Based Compensation Expense
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42000 USD
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1 Warrant
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1 Warrant
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6.4575
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CY2020Q3 us-gaap Class Of Warrant Or Right Outstanding
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2334937 shares
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10.40 USD
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8.12 USD
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8.12 USD
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P4Y2M23D
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P4Y3M18D
CY2020 artl Warrants Weighted Average Life
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P3Y3M18D
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P4Y10M6D
CY2019 artl Number Of Warrant Forfeited
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0 USD
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0 USD
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0 USD
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0 USD
CY2019 artl Number Of Warrant Exercised
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0 shares
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0 shares
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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184000 shares
CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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74000 shares
CY2020Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2020 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P5Y
CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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1.55 pure
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.58 pure
CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
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0 pure
CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0167 pure
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0140 pure
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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50000 shares
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
234000 shares
CY2020Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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281834 shares
CY2018Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
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10.80
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3.88
CY2020Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
3.57
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CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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P9Y9M10D
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P8Y10M24D
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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2.01
CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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2.48
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P10Y
CY2020 artl Share Based Payment Stock Option Granted Weighted Average Remaining Life
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P10Y
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CY2020 us-gaap Stock Issued During Period Shares Stock Options Exercised
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CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
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0
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
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0
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CY2020 artl Share Based Payment Stock Option Forfeited Canceled Weighted Average Remaining Life
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3.57
CY2020Q3 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
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151505 shares
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3.92
CY2020Q3 us-gaap Operating Loss Carryforwards
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8559733 USD
CY2020Q3 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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1797544 USD
CY2019Q3 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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1058724 USD
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1797544 USD
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1058724 USD
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CY2019Q3 us-gaap Deferred Tax Assets Net
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