Arch Therapeutics, Inc.

CIK:0001537561|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 30,913	$ 13,293	$ 108,646	$ 36,207
Operating expenses:
Cost of revenues	21,079	18,529	66,240	54,882
Selling, general and administrative expenses	875,629	870,053	2,870,163	3,225,753
Research and development expenses	155,681	139,048	565,130	471,135
Total operating expenses	1,052,389	1,027,630	3,501,533	3,751,770
Loss from operations	(1,021,476)	(1,014,337)	(3,392,887)	(3,715,563)
Other (expense) income:
Interest expense	(671,929)	(808,770)	(2,451,309)	(1,968,274)
Financing expense	(3,961,276)		(3,961,276)
Gain on extinguishment of derivative liabilities				1,158,197
Total other expense, net	(4,633,205)	(808,770)	(6,412,585)	(810,077)
Net loss	(5,654,681)	(1,823,107)	(9,805,472)	(4,525,640)
Deemed dividends	(730,002)		(730,002)
Net loss attributable to common shareholders	$ (6,384,683)	$ (1,823,107)	$ (10,535,474)	$ (4,525,640)
Net loss per common share, basic	$ (1.44)	$ (1.42)	$ (2.32)	$ (3.58)
Net loss per common share, diluted	$ (1.44)	$ (1.42)	$ (2.32)	$ (3.58)
Weighted common shares, basic	4,444,364	1,279,967	4,550,264	1,265,340
Weighted common shares, diluted	4,444,364	1,279,967	4,550,264	1,265,340

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (9,805,472)	$ (4,525,640)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	1,585	1,316
Stock-based compensation	36,232	213,809
Fair value of warrants issued accounted as financing expense	3,961,276
Gain on extinguishment of derivative liabilities		(1,158,197)
Accretion of discount and debt issuance costs on convertible notes payable	1,852,588	1,480,121
Changes in operating asset and liabilities:
Inventory	44,228	31,910
Prepaid expenses and other current assets	322,041	345,869
Accounts payable	612,449	1,143,162
Accrued interest	560,922	488,153
Accrued expenses and other liabilities	(60,254)	(167,983)
Net cash used in operating activities	(2,474,405)	(2,147,480)
Cash flows from financing activities:
Repayment of insurance premium financing	(243,285)	(247,933)
Shareholder advances related to bridge financing		1,228,015
Proceeds from unsecured convertible notes	450,000	507,000
Proceeds from senior secured convertible notes	2,075,000
Net cash provided by financing activities	2,281,715	1,487,082
Net decrease in cash	(192,690)	(660,398)
Cash, beginning of period	222,720	746,940
Cash, end of period	30,030	86,542
Non-cash financing activities:
Exchange of Convertible notes payable, Series 2, unsecured and accrued interest into common stock	606,239
Relative fair value of warrants issued – convertible notes payable, unsecured	148,891
Deemed dividends on warrants upon trigger of down round provision	730,002
Exchange of Series G and Series H warrants for common stock		49,278
Issuance of restricted stock		3,019
Fair value of warrants issued - second close		256,439
Fair value of inducement shares issued – second close		25,840
Fair value of placement agent warrants – second close		28,093
Fair value of warrants issued – third close		137,252
Fair value of inducement shares issued – third close		15,656
Conversion of shareholder advance into unsecured convertible note		$ 488,000

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Current assets:
Cash	$ 30,030	$ 222,720
Inventory	1,320,276	1,364,504
Prepaid expenses and other current assets	40,824	362,866
Total current assets	1,391,130	1,950,090
Long-term assets:
Property and equipment, net	3,014	4,599
Other assets	3,500	3,500
Total long-term assets	6,514	8,099
Total assets	1,397,644	1,958,189
Current liabilities:
Accounts payable	2,916,655	2,304,207
Accrued expenses and other liabilities	407,242	467,496
Accrued interest	1,246,092	823,128
Total current liabilities	13,958,210	9,465,921
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding as of June 30, 2024 and September 30, 2023
Common stock, $0.001 par value, 350,000,000 authorized as of June 30, 2024 and September 30, 2023; 4,444,364 and 4,689,446 shares issued and outstanding as of June 30, 2024 and September 30, 2023	4,444	4,689
Additional paid-in capital	60,026,073	54,543,188
Accumulated deficit	(72,591,083)	(62,055,609)
Total stockholders’ deficit	(12,560,566)	(7,507,732)
Total liabilities and stockholders’ deficit	1,397,644	1,958,189
Insurance Premium Financing [Member]
Current liabilities:
Insurance premium financing		243,285
Senior Secured Convertible Notes [Member]
Current liabilities:
Convertible notes payable	6,701,720	3,519,103
Unsecured Convertible Notes [Member]
Current liabilities:
Convertible notes payable	2,686,501	1,658,702
Convertible Notes Payable Series 2 [Member]
Current liabilities:
Convertible notes payable		$ 450,000