Artelo Biosciences Reports $8.7 Million Net Loss and Working Capital Deficit

Artelo Biosciences, Inc. reported a net loss of $8.7 million for the nine months ended September 30, 2025, compared to a loss of $6.0 million for the same period in 2024. The company's total operating expenses increased to $8.6 million from $6.3 million year-over-year, primarily driven by higher general and administrative costs, which rose to $4.1 million from $2.8 million, and research and development expenses, which increased to $4.5 million from $3.5 million. The increase in expenses was attributed to professional fees related to capital raising efforts and a decrease in research and development tax credits received from the UK government.

As of September 30, 2025, Artelo's current assets totaled $1.8 million, down from $2.6 million at the end of 2024, while current liabilities surged to $4.9 million from $1.8 million. This resulted in a working capital deficit of $3.0 million, a significant decline from a positive working capital of $785,000 at the end of the previous fiscal year. The increase in liabilities was largely due to deferred payments to vendors as part of a cash preservation strategy.

In terms of strategic developments, Artelo has been active in raising capital through various offerings. In May 2025, the company issued unsecured convertible notes with gross proceeds of $900,000, and in June, it completed a private placement of common stock that generated $1.4 million in net proceeds. Additionally, Artelo entered into an At-The-Market Offering Agreement in July 2025, allowing it to sell up to $6.5 million of common stock. During the third quarter, the company sold 50,858 shares under this agreement for net proceeds of $442,000.

Operationally, Artelo is focused on advancing its clinical programs, including the dual cannabinoid agonist ART27.13, which is currently in a Phase 1b/2a trial for cancer-related anorexia. The company has also received FDA clearance for its ART26.12 program, aimed at treating chemotherapy-induced peripheral neuropathy, and has completed enrollment for its Phase 1 clinical trial. As of September 30, 2025, Artelo had cash and cash equivalents of $1.7 million, down from $2.3 million at the end of 2024, indicating ongoing challenges in maintaining liquidity.

Looking ahead, Artelo acknowledges the need for additional funding to support its operations and clinical development activities. The company is actively pursuing various financing strategies but faces uncertainty regarding its ability to secure sufficient capital. The management has expressed concerns about the company's ability to continue as a going concern within the next year, emphasizing the importance of raising additional funds through equity or debt offerings to sustain its operations and development plans.