ARTELO BIOSCIENCES, INC. Segments Disclosure
NOTE 3 – SEGMENT REPORTING
Operating segments are comprised of the components of an entity in which separate information is available for evaluation by the Company’s CODM, or group of decision makers, in determining how to allocate resources in evaluating performance. The Company consists of a single reporting segment: life science. The life science segment is comprised of the Company’s development of therapeutics that target lipid-signaling modulation pathways, including the ECS, a network of receptors and neurotransmitters that form a biochemical communication system throughout the body. The Company’s CODM is its chief executive officer.
The accounting policies of the life science segment are as described in the summary of significant accounting policies. The CODM evaluates the performance of the life science segment based on the Company’s net loss as reported on the income statement as consolidated net loss. The Company’s segment assets are reported on the balance sheet as its total consolidated assets.
The Company has not generated any revenue since its inception and expects to continue to incur losses into the foreseeable future as it continues to conduct research and development related activities through all stages of product development and clinical trials and subsequently seek approval from the respective regulatory authorities. The Company’s CODM utilizes cash forecast models to determine the Company’s investment in the life sciences segment. These models are reviewed regularly to monitor the Company’s operating results and performance and compared to the Company’s cash-based forecasts.
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| Year ended |
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| December 31, |
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| 2025 |
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| 2024 |
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General and administrative |
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Employee and director compensation |
| $ | 1,253 |
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| $ | 1,173 |
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Stock-based compensation |
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| 674 |
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| 501 |
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Professional fees |
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| 2,846 |
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| 1,133 |
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Other general and administrative (a) |
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| 1,208 |
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| 1,308 |
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Total general and administrative |
| $ | 5,981 |
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| $ | 4,115 |
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| Year ended |
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| December 31, |
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| 2025 |
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| 2024 |
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Research and development |
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Employee compensation |
| $ | 1,278 |
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| $ | 1,166 |
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Stock-based compensation |
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| 467 |
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| 317 |
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Professional fees |
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| 3,666 |
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| 5,169 |
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Research and development tax credits |
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| (704 | ) |
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| (1,349 | ) |
Other research and development (b) |
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| 716 |
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| 690 |
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Total research and development |
| $ | 5,423 |
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| $ | 5,993 |
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(a) | Consists of investor relations, travel and other office expenses. |
(b) | Consists of supplies and other items used in research and development activities. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.