Company: ARTL
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001640334-25-001429
Chunk: 151

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 151
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 policy for future Board consideration; any expansion of the strategy (including, without limitation, staking or other yield-generating uses) will be presented to, and will require the express approval of, the Board before implementation.

 21Table of Contents

Current Parameters (as approved through the date of this filing)

 ·Asset. SOL only.    ·Source of funds. (i) $250,000 of proceeds from the June 2025 private placement offering of equity securities and (ii) all net cash proceeds from the $9.4 million August 2025 private placement offering.    ·Execution. Spot purchases for cash on U.S. venues that are registered or chartered, and subject to BSA/AML obligations. No leverage, margin, or derivatives are permitted.    ·Custody. The initial $250,000 in SOL acquired pursuant to the June 2025 private placement offering is held in custody with BitGo, a U.S.-regulated, qualified digital-asset custodian. Certain amounts of SOL acquired with proceeds from the August 2025 private placement offering, are held with CUBE, a U.S.-regulated, qualified digital-asset custodian that provides segregated, cold-storage accounts, multi-signature authorization, SOC-2 reporting, and a limited insurance program.    ·Private keys are maintained exclusively with BitGo and CUBE; we do not self-custody.    ·Use of SOL. Our holdings are maintained as a long-term, non-core treasury reserve asset. No SOL has been loaned, staked, pledged, or otherwise encumbered.    ·Reporting. Our holdings are measured at fair value pursuant to ASU 2023-08. Changes in fair value flow through net income each reporting period. The Audit Committee will receive reports covering holdings, valuation, counter-party exposure, and compliance with Board resolutions on a quarterly or more frequent basis.    ·Liquidity & Working-Capital Treatment. Although SOL is not treated as cash, cash equivalents, or a financial asset for Nasdaq continued-listing standards, the private placements described above increased shareholder equity. We will attempt to establish and maintain a separate reserve of liquid cash resources sufficient to fund at least twelve months of projected operating expenses to support ongoing biopharmaceutical development activities, without relying on the sale of digital assets. Seeking to maintain this twelve-month operating runway will support regulatory compliance, mitigate liquidity risk, and provide assurance to auditors and stakeholders that our core biopharmaceutical