Artelo Biosciences Reports $2.4 Million Net Loss in Q1 2025, Seeks Additional Funding

Artelo Biosciences, Inc. reported a net loss of $2.4 million for the first quarter of 2025, a slight improvement from the $2.5 million loss recorded in the same period of 2024. The company's total operating expenses decreased to $2.4 million from $2.6 million year-over-year, primarily due to reduced general and administrative costs and a decrease in research and development expenses. General and administrative expenses fell to $995,000 from $1.1 million, while research and development expenses decreased to $1.4 million from $1.5 million. The basic and diluted loss per share improved to $(0.72) from $(0.78) in the prior year.

As of March 31, 2025, Artelo's total current assets were $1.4 million, down from $2.6 million at the end of 2024, largely due to cash outflows for operating activities. The company's cash and cash equivalents also declined significantly to $746,000 from $2.3 million. Current liabilities increased to $2.8 million from $1.8 million, reflecting a strategic decision to defer payments on certain obligations as part of a cash preservation strategy. Consequently, the company's working capital turned negative, standing at $(1.4 million) compared to a positive $785,000 at the end of the previous fiscal year.

In terms of operational developments, Artelo is advancing its clinical programs, including ART27.13, a dual cannabinoid agonist targeting cancer-related anorexia, and ART26.12, a FABP5 inhibitor aimed at treating chemotherapy-induced peripheral neuropathy. The company has completed patient enrollment for the Phase 1b portion of the Cancer Appetite Recovery Study (CAReS) and is progressing into the Phase 2a stage. As of May 2025, 18 clinical sites across five countries are open for enrollment, with approximately 40 participants expected to be enrolled in the first half of the year.

Looking ahead, Artelo plans to continue its research and development activities while seeking additional funding to support its operations. The company has established an equity line agreement allowing for the sale of up to $20 million in common stock over a three-year period, and it filed a $75 million shelf registration statement in July 2023 to facilitate future capital raises. However, the company acknowledges substantial doubt about its ability to continue as a going concern without securing additional funding, given its history of operating losses and the need for ongoing investment in its clinical programs.