Company: ARTL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001640334-25-000335
Chunk: 812

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 6
Chunk 812
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   8.41 Granted  205,996   3.03   10.00 Exercised  -   -   - Forfeited/canceled  -   -   - Outstanding, December 31, 2023  519,105  $15.97   8.07 Granted  254,500   1.48   10.00 Exercised  -   -   - Forfeited/canceled  -   -   - Outstanding, December 31, 2024  773,605  $1.84   7.76              Exercisable options, December 31, 2024  11,085  $20.80   6.49    (1) During February 2024, 488,069 options were repriced to $1.55 and had their vesting schedules modified.  As per Accounting Standards Update 2021-07 Compensation – Stock Compensation (Topic 718) the changes were treated as modifications to the options and the incremental fair value was calculated resulting in $210 in additional expense to amortize over the updated vesting schedule of 1/3rd of the shares subject to the options will vest on the first anniversary and 1/36th of the shares subject to the option will vest each month thereafter.  The amendment date was February 28, 2024.

 F-13Table of Contents

 Valuation The Company utilizes the Black-Scholes model to value its stock options. The Company utilized the following assumptions:   Year ended  Year Ended    December 31,  December 31,   2024  2023 Expected term  3.08 - 6.08 years    5.50 - 6.25 years  Expected average volatility 87 - 110%  110 - 150% Expected dividend yield  -   - Risk-free interest rate 4.02 - 4.44%  3.43 - 4.15%  During the year ended December 31, 2024, the Company granted 254,500 options, valued at $307 of which 113,500 valued at $137 were for related parties. During the year ended December 31, 202