[8-K] Artelo Biosciences, Inc. Reports Material Event

Rhea-AI Filing Summary

Artelo Biosciences, Inc. (ARTL) filed an 8-K on 11 July 2025 announcing two key items:

• Reverse stock split: A previously disclosed 1-for-6 reverse split became effective on 13 June 2025. Outstanding shares shrank from 3.28 million to roughly 546,667. Authorized common shares fell from 50 million to 8.33 million and authorized preferred shares from 416,667 to 69,444. Par value remains $0.001.
• Preliminary mid-year financial update (unaudited): Management estimates cash, cash equivalents and short-term investments of $2.1 million as of 30 June 2025. Working capital is expected to range between $(1.2) million and $(1.5) million.

The company reiterates a substantial-doubt going-concern warning first disclosed in its March 31 2025 10-Q (Note 1). MaloneBailey, LLP has not reviewed or audited the new estimates.

To reflect the share reclassification, Artelo is republishing audited FY 2023-2024 financial statements (Exhibit 99.1) and unaudited Q1 2025 financials (Exhibit 99.2).

While the reverse split may assist with Nasdaq listing compliance, the limited liquidity and negative working capital underline the firm’s challenged financial position.

Positive

• Reverse stock split completed, potentially safeguarding Nasdaq listing by increasing the per-share price.
• Authorized share reduction aligns with lower outstanding shares, limiting future dilution risk.
• Restated audited and interim financials improve transparency and comparability post-split.

Negative

• Working capital deficit of $(1.2)-$(1.5) million projected as of 30 June 2025.
• Substantial doubt about going concern status remains unresolved.
• Limited cash balance of $2.1 million signals a short operating runway and likely need for additional financing.

Insights

Senior Equity Analyst

TL;DR—Reverse split completed; cash slim, working capital negative; going-concern risk persists.

The 1-for-6 split reduces share count by roughly 83 %, a typical tactic to lift per-share price for Nasdaq compliance. However, such corporate actions often signal distress rather than strength. Preliminary figures show only $2.1 million in cash against a working-capital deficit that could reach $1.5 million, implying a short runway for R&D programs. Management’s continued going-concern warning confirms capital-raising needs in the near term, which could dilute shareholders despite the lower float. Republishing restated financials is procedurally sound but does not alter underlying fundamentals. Overall, the filing is modestly negative for equity holders because it underscores liquidity pressure without providing a concrete remediation plan.

Corporate Governance Specialist

TL;DR—Structural clean-up aids disclosure; financial risk remains high.

The board’s decision to cut authorized shares proportionally with the reverse split limits future dilution capacity and improves cap-table transparency, a shareholder-friendly governance move. Publishing updated historical statements post-split enhances comparability and meets SEC best practices. Nevertheless, persistent going-concern language and unaudited negative working capital overshadow governance positives. Investors should monitor forthcoming capital-raising actions and compliance with Nasdaq’s minimum-bid rules.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 11, 2025

ARTELO BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

Nevada		333-199213		33-1220924
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

505 Lomas Santa Fe, Suite 160 Solana Beach, CA USA		92075
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (858) 925-7049

___________________________________________

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		ARTL		The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

               Reference is made to the information contained in Item 8.01 to this Current Report on Form 8-K set forth below, which is incorporated herein by reference

Item 8.01 Other Information.

As previously disclosed, Artelo Biosciences, Inc., a Nevada corporation (the “Company”), completed a one-for-six (1-for-6) reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding common stock, par value $0.001 per share (the “Common Stock”), effective as of June 13, 2025.

As a result of the Reverse Split, each six (6) pre-split shares of Common Stock outstanding were automatically combined into one (1) new share of Common Stock, and the number of outstanding shares of Common Stock were reduced from 3,280,000 to approximately 546,667. The number of authorized shares of common stock were reduced from 50,000,000 to 8,333,333, while the number of authorized shares of preferred stock were reduced from 416,667 to 69,444. The Common Stock par value of $0.001 per share remained unchanged after the Reverse Split.

As a result of the Reverse Split, the Company is republishing certain financial information to account for the change in total par value due to the Reverse Split. The audited financial statements of the Company as of and for the fiscal years ended December 31, 2023 and 2024 are set forth in Exhibit 99.1 hereto and are incorporated herein by reference. The unaudited financial information of the Company for the quarter ended March 31, 2025 is set forth in Exhibit 99.2 hereto and is incorporated herein by reference.

On July 11, 2025, the Company provided an interim update regarding the preliminary estimated financial information below based on currently available information. It has been prepared by, and is the responsibility of, our management, and MaloneBailey, LLP, our independent registered public accounting firm, has not audited, reviewed, compiled or performed any procedures with respect to the preliminary estimated financial information provided below.

Our preliminary unaudited estimates as of June 30, 2025 for select financial metrics are as follows:

	·	Cash, cash equivalents and short-term investments as of June 30, 2025 is expected to be $2.1 million.
	·	Working capital as of June 30, 2025 is expected to be between $(1.2) million and $(1.5) million.

Please note that we believe substantial doubt remains about our ability to continue as a going concern. For more information, please see Note 1 in the Consolidated Interim Financial Statements of our most recent Form 10-Q for the period ending March 31, 2025 filed with the SEC on May 13, 2025.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.		Exhibit
99.1		Audited financial statements of Artelo Biosciences, Inc. as of and for the fiscal years ended December 31, 2023 and 2024.
99.2		Unaudited interim financial statements of Artelo Biosciences, Inc. as of and for the fiscal quarter ended March 31, 2025.
23.1		Consent Of Independent Registered Public Accounting Firm
104		Cover Page Interactive Data File (embedded within the XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ARTELO BIOSCIENCES, INC.
Date: July 11, 2025		/s/ Gregory D. Gorgas
		Gregory D. Gorgas
		President & Chief Executive Officer

3

FAQ

Why did Artelo Biosciences (ARTL) execute a 1-for-6 reverse stock split?

The split, effective 13 June 2025, reduced outstanding shares to about 546,667 and is expected to help maintain Nasdaq listing compliance.

How many shares are now authorized and outstanding after the ARTL reverse split?

Authorized common shares are 8.33 million; outstanding common shares are approximately 546,667.

What is Artelo Biosciences’ cash position as of 30 June 2025?

Management preliminarily estimates cash, cash equivalents and short-term investments at $2.1 million.

Does Artelo Biosciences still face a going-concern risk?

Yes. The company states substantial doubt about its ability to continue as a going concern, citing negative working capital.