2023 Q1 Form 10-K Financial Statement

#000164033423000509 Filed on March 31, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.057M $1.750M $5.963M
YoY Change -28.68% 36.83% 184.22%
% of Gross Profit
Research & Development $1.235M $1.726M $4.324M
YoY Change 166.16% 35.59% 52.31%
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $2.292M $3.476M $10.29M
YoY Change 17.78% 36.21% 38.25%
Operating Profit -$2.292M -$10.29M
YoY Change 17.78% 38.25%
Interest Expense $124.0K $137.0K $5.000K
YoY Change -752.63% 4466.67% -16.67%
% of Operating Profit
Other Income/Expense, Net $124.0K $204.0K
YoY Change -752.63% 5000.0%
Pretax Income -$2.168M -$3.339M -$10.08M
YoY Change 10.33% 31.04% 149.89%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$2.168M -$3.339M -$10.08M
YoY Change 10.33% 31.04% 35.58%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$0.76 -$1.18 -$3.56
COMMON SHARES
Basic Shares Outstanding 2.856M shares 2.856M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.916M $8.383M $17.53M
YoY Change -67.85% -65.23% -27.29%
Cash & Equivalents $6.916M $6.888M $6.888M
Short-Term Investments $0.00 $1.495M $10.65M
Other Short-Term Assets $903.0K $789.0K $789.0K
YoY Change -16.23% 53.5% 59.07%
Inventory
Prepaid Expenses $903.0K $789.0K
Receivables
Other Receivables
Total Short-Term Assets $16.39M $18.32M $18.32M
YoY Change -33.36% -25.55% -25.55%
LONG-TERM ASSETS
Property, Plant & Equipment $50.00K $60.00K $60.00K
YoY Change -31.51% -27.71% -25.93%
Goodwill
YoY Change
Intangibles $2.039M $2.039M
YoY Change 0.0% 0.0%
Long-Term Investments $0.00 $0.00
YoY Change -100.0% -100.0%
Other Assets $3.000K $3.000K $3.000K
YoY Change 0.0% 0.0% 0.0%
Total Long-Term Assets $2.092M $2.102M $2.102M
YoY Change -1.09% -42.28% -42.28%
TOTAL ASSETS
Total Short-Term Assets $16.39M $18.32M $18.32M
Total Long-Term Assets $2.092M $2.102M $2.102M
Total Assets $18.48M $20.42M $20.42M
YoY Change -30.8% -27.71% -27.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $701.0K $905.0K $905.0K
YoY Change -12.38% 53.39% -7.18%
Accrued Expenses $37.00K $40.00K $40.00K
YoY Change 15.63% 29.03% 29.03%
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 $825.0K $998.0K $998.0K
YoY Change -5.71% -2.82% -2.82%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $15.00K $23.00K $23.00K
YoY Change -69.39% -61.02% -59.65%
Total Long-Term Liabilities $15.00K $23.00K $23.00K
YoY Change -69.39% -61.02% -59.65%
TOTAL LIABILITIES
Total Short-Term Liabilities $825.0K $998.0K $998.0K
Total Long-Term Liabilities $15.00K $23.00K $23.00K
Total Liabilities $840.0K $1.021M $1.021M
YoY Change -9.09% -5.81% -5.81%
SHAREHOLDERS EQUITY
Retained Earnings -$33.19M -$31.02M
YoY Change 44.91% 48.16%
Common Stock $3.000K $3.000K
YoY Change -92.86% -92.86%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $17.64M $19.40M $19.40M
YoY Change
Total Liabilities & Shareholders Equity $18.48M $20.42M $20.42M
YoY Change -30.8% -27.71% -27.71%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$2.168M -$3.339M -$10.08M
YoY Change 10.33% 31.04% 35.58%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$2.186M -$2.293M -$8.008M
YoY Change 6.48% 19.06% 30.4%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $2.199M $1.796M $2.958M
YoY Change 755.64% -120.23% -129.48%
Cash From Investing Activities $2.199M $1.796M $2.958M
YoY Change 755.64% -120.23% -186.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $0.00 134.0K $0.00
YoY Change -99.27% -100.0%
NET CHANGE
Cash From Operating Activities -$2.186M -2.293M -$8.008M
Cash From Investing Activities $2.199M 1.796M $2.958M
Cash From Financing Activities $0.00 134.0K $0.00
Net Change In Cash $28.00K -363.0K -$5.274M
YoY Change -101.55% -104.87% -216.37%
FREE CASH FLOW
Cash From Operating Activities -$2.186M -$2.293M -$8.008M
Capital Expenditures
Free Cash Flow
YoY Change

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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022 artl Initial Recognition Of The Right Of Use Asset And Lease Liability
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CY2021 artl Initial Recognition Of The Right Of Use Asset And Lease Liability
InitialRecognitionOfTheRightOfUseAssetAndLeaseLiability
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CY2022 us-gaap Available For Sale Debt Securities Gross Unrealized Loss
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CY2022 us-gaap Nature Of Operations
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">ARTELO BIOSCIENCES, INC. (“we”, “us”, “our”, the “Company”) 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’s fiscal year end is December 31.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">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 wholly owned subsidiary in Canada, Artelo Biosciences Corporation, on March 18, 2020. Operations in the subsidiaries have been consolidated in the financial statements.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company is a clinical stage biopharmaceutical company focused on developing and commercializing treatments intended to modulate the endocannabinoid system.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>Liquidity</em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company has incurred losses since inception and incurred a net loss of $10,083 during the year ended December 31, 2022. However, in November 2021, the Company completed an equity offering which generated net proceeds of $18,262. Additionally, in May 2022, the Company entered into a purchase agreement and a registration rights agreement (the “Equity Line”) with an institutional investor, providing for the sale of up to $20,000 worth of the Company’s common stock, over the thirty-six (36) month term of the purchase agreement. Under the terms and subject to the conditions of the purchase agreement, the Company has the right, but not the obligation, to sell to the institutional investor, and the institutional investor is obligated to purchase, up to $20,000 worth of shares of the Company’s Common Stock. As of December 31, 2022, there have been no sales under the Equity Line. The Company’s existing cash resources and the cash received from the November 2021 equity offering are expected to provide sufficient funds to carry out the Company’s planned operations into the second half of 2024. To continue operations beyond such time frame, the Company will be required to raise additional funds by completing additional equity or debt offerings or licensing our product candidates. There can be no assurance that the Company will be successful in acquiring additional funding, that the Company’s projections of its future working capital needs will prove accurate, or that any additional funding would be sufficient to continue operations in future years.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>Reverse stock split</em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On August 8, 2022, the Company, filed with the Secretary of State of the State of Nevada, a Certificate of Change, pursuant to Nevada Revised Statutes 78.209, to effect a one-for-fifteen (1-for-15) reverse stock split (the “Reverse Stock Split”) of the Company’s issued and outstanding Common Stock, par value $0.001 per share. The Reverse Stock Split was effective as of August 10, 2022.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As a result of the Reverse Stock Split, the number of authorized shares of Common Stock has been reduced from 750,000,000 to 50,000,000, while the number of authorized shares of the Company’s preferred stock has been reduced from 6,250,000 to 416,667.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>COVID-19</em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">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’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.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">All share and per share information in these financial statements retroactively reflect this Reverse Stock Split.</p>
CY2022 us-gaap Proceeds From Issuance Initial Public Offering
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18262000 usd
CY2022 us-gaap Stockholders Equity Reverse Stock Split
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1-for-15
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
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0.001
CY2022Q3 us-gaap Common Stock Shares Authorized
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CY2022Q4 us-gaap Common Stock Shares Authorized
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CY2022Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
6250000 shares
CY2022Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
416667 shares
CY2022 us-gaap Property Plant And Equipment Depreciation Methods
PropertyPlantAndEquipmentDepreciationMethods
straight-line method
CY2021Q4 us-gaap Marketable Securities Noncurrent
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11951000 usd
CY2021Q4 us-gaap Debt Securities Noncurrent
DebtSecuritiesNoncurrent
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CY2021Q4 us-gaap Investments Fair Value Disclosure
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13470000 usd
CY2022 us-gaap Use Of Estimates
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<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.</p>
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2022Q4 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
250000 usd
CY2022Q4 artl Amount In Excess Of Fdic Insurance Amount
AmountInExcessOfFdicInsuranceAmount
6388000 usd
CY2022Q4 us-gaap Marketable Securities Current
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9150000 usd
CY2021Q4 us-gaap Marketable Securities Current
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11951000 usd
CY2021Q3 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
3436000 usd
CY2022Q4 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
1495000 usd
CY2021Q4 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
1519000 usd
CY2021Q3 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
0 usd
CY2022Q4 us-gaap Marketable Securities Noncurrent
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9150000 usd
CY2022Q4 us-gaap Debt Securities Noncurrent
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CY2022Q4 us-gaap Investments Fair Value Disclosure
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CY2021Q3 us-gaap Marketable Securities Noncurrent
MarketableSecuritiesNoncurrent
3436000 usd
CY2022 artl Share Based Expenses
ShareBasedExpenses
2458000 usd
artl Share Based Expenses
ShareBasedExpenses
934000 usd
CY2021 artl Share Based Expenses
ShareBasedExpenses
1531000 usd
CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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486184000 shares
CY2022Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
416667 shares
CY2021Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
50000000 shares
CY2022Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2022Q2 artl Options Exercisable Description
OptionsExercisableDescription
Lincoln Park of up to $20,000 worth of the Company’s Common Stock, over the thirty-six (36) month term of the Lincoln Park Agreements. The Company issued to Lincoln Park 19,532 shares of its Common Stock as commitment shares in consideration for entering into the Lincoln Park Agreements and received no funds in exchange for such commitment shares, valued at $97. Upon initiation of the Lincoln Park Agreements, the Company recorded $381 as an expense within general and administrative expenses
CY2022 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
1184959 shares
CY2022Q4 artl Common Stock Average Price Per Share
CommonStockAveragePricePerShare
15.90
CY2022 us-gaap Proceeds From Fees Received
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18262 usd
CY2022 artl Number Of Purchase Common Stock Shares
NumberOfPurchaseCommonStockShares
674667 integer
CY2022 artl Number Of Warrant Granted
NumberOfWarrantGranted
674667000 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Shares Issued In Period
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25000000 shares
CY2018Q3 artl Options Exercisable Description
OptionsExercisableDescription
Options may be exercisable (“vest”) immediately or in increments based on time and/or performance criteria as determined by the administrator. The term of any option may not exceed 10 years (five years for any incentive stock option granted to a 10% stockholder), and unless otherwise determined by the administrator, each option must terminate no later than three months after the termination of the optionee’s employment (one year in the event of death or disability). Subject to a few minor exceptions, options may not be transferred other than by will or by the laws of descent and distribution.
CY2022Q4 us-gaap Operating Loss Carryforwards
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20559000 usd
CY2022Q4 artl Deferred Tax Asset Operating Loss Carryforwards
DeferredTaxAssetOperatingLossCarryforwards
4338000 usd
CY2021Q4 artl Deferred Tax Asset Operating Loss Carryforwards
DeferredTaxAssetOperatingLossCarryforwards
3343000 usd
CY2021Q3 artl Deferred Tax Asset Operating Loss Carryforwards
DeferredTaxAssetOperatingLossCarryforwards
3864000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
4338000 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3343000 usd
CY2021Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3864000 usd
CY2022Q4 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2021Q4 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2021Q3 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2022Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2039000 usd
CY2022 us-gaap Lessee Operating Lease Description
LesseeOperatingLeaseDescription
On April 19, 2022, the Company entered into a lease arrangement for office space with an annual rent of $13 (£11) and the term of the arrangement is from April 2022 through September 2023.
CY2021 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
5633000 usd
CY2021 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3784000 usd
CY2021 us-gaap Operating Expenses
OperatingExpenses
9417000 usd
CY2021 us-gaap Operating Income Loss
OperatingIncomeLoss
-9417000 usd
CY2021 us-gaap Interest And Other Income
InterestAndOtherIncome
2000 usd
CY2021 us-gaap Change In Unrealized Gain Loss On Fair Value Hedging Instruments1
ChangeInUnrealizedGainLossOnFairValueHedgingInstruments1
8000 usd
CY2021 artl Gain Loss From Change In Fair Value Of Derivative Liabilities
GainLossFromChangeInFairValueOfDerivativeLiabilities
0 usd
CY2021 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
10000 usd
CY2021 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0 usd
CY2021 us-gaap Available For Sale Debt Securities Gross Unrealized Loss
AvailableForSaleDebtSecuritiesGrossUnrealizedLoss
5000 usd
CY2021 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-54000 usd
CY2021 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-59000 usd
CY2021 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-9466000 usd
CY2021 artl Earnings Per Share Basics And Diluted
EarningsPerShareBasicsAndDiluted
-5.24
CY2021 artl Weighted Average Number Of Share Outstanding Basics And Diluted
WeightedAverageNumberOfShareOutstandingBasicsAndDiluted
1795000 shares

Files In Submission

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0001640334-23-000509-index-headers.html Edgar Link pending
0001640334-23-000509-index.html Edgar Link pending
0001640334-23-000509.txt Edgar Link pending
0001640334-23-000509-xbrl.zip Edgar Link pending
artl-20221231.xsd Edgar Link pending
artl_10k.htm Edgar Link pending
artl_231.htm Edgar Link pending
artl_ex311.htm Edgar Link pending
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