Mon, Aug 19, 8:41 PM (148 days ago)
For the quarter ended June 30, 2024, Arch Therapeutics, Inc. reported a significant increase in revenue to $30,913, up from $13,293 in the same period last year, driven by the successful implementation of a dedicated reimbursement code. However, the company incurred a net loss of $5,654,681, a substantial rise from $1,823,107 in the prior year, primarily due to increased financing expenses related to warrant issuances totaling $3,961,276. Operating expenses rose slightly to $1,052,389, with research and development costs increasing due to higher payroll expenses. The company’s cash position deteriorated, with cash decreasing to $30,030 from $222,720 at the end of the previous fiscal year, and a working capital deficit grew to $12,567,080. The increase in liabilities, particularly from convertible notes payable, raised concerns about the company's ability to continue as a going concern. Arch Therapeutics anticipates needing significant additional financing to support ongoing operations and product development, facing potential dilution of existing shareholders if equity financing is pursued.