Company: ARTL
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001640334-25-002022
Chunk: 20

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
 Forfeited/canceled  -   -   - Outstanding, September 30, 2025  227,842  $11.03   8.20              Exercisable options, September 30, 2025  73,112  $12.78   7.21 

 15Table of Contents

Valuation The Company utilizes the Black-Scholes model to value its stock options. During the nine months ended September 30, 2025, the Company utilized the following assumptions:   Nine Months Ended   September 30,    2025 Expected term  5.50 - 5.78 years  Expected average volatility 97 - 98 %Expected dividend yield  - Risk-free interest rate  3.87% During the nine months ended September 30, 2025, the Company granted 98,866 options, valued at $849 of which 41,493 options, valued at $356, were for related parties. As of September 30, 2025, $1,094 remains unamortized, of which $613 is for related parties. The intrinsic value of options outstanding as of September 30, 2025, and December 31, 2024, is $0 and $0, respectively.

NOTE 8– INTANGIBLE ASSET The Company has capitalized the costs associated with acquiring the exclusive worldwide license to develop and commercialize products comprising or containing the compound ART27.13 as an intangible asset at a value of $2,039 as of September 30, 2025, and December 31, 2024. The amount capitalized consisted of a $1,500 payment and the fair value of 681 shares of common stock of $539. During the nine months ended September 30, 2025, no additional costs met the criteria for capitalization as an intangible asset.

NOTE 9 - LEASE On May 12, 2021, the Company entered into a lease arrangement for office space in the U.S. with Beckman/Lomas LLC, an entity controlled by a close family member of a director. Effective June 1, 2022, the related party divested its interests in the property, and as such, the lease agreement no longer constitutes a related party transaction. On March 6, 2024, the Company entered into an