Arch Therapeutics Inc (OTCBB:ARTH) submitted form 10-Q wherein it revealed that it didn’t generate any revenue in the quarter ended March 31, 2015. The revenue was zero in the comparable quarter, a year earlier.
Increase in G&A expenses
The general and administrative expenses came at $853,177 compared to $808,483 for the quarter ended March 31, 2014. The increase in G&A expenses can be attributed to higher legal costs linked to patents. Also, the stock-based compensation expenses saw a jump in an effort to attract and retain key employees. The management stated that G&A expenses are expected to rise due to new recruits and stock based compensation.
Increase in R&D expenses
Arch Therapeutics reported that R&D expenses in the quarter ended March 31, 2015 declined to $402,495 from $487,090 for the quarter ended March 31, 2014. The decline in R&D expense can be attributed to drop in stock based compensation, partially offset by a jump in pre-clinical consulting and development expenses. The management said that R&D expenses are anticipated to rise as a result of company’s plans to start additional clinical and preclinical trials as resources permit.
Arch Therapeutics previously expected that the first clinical study would be commenced during the first half of 2015. However, due to the coordination of activities with the planned associates and timing of completion, the company now expects the first study to begin in the third quarter of 2015. Arch Therapeutics reported that it is in development stage firm and have recorded no operating revenues to date. Also, there are no products with the company that have received marketing approval. As of now, Arch does not expect to generate any revenue in the foreseeable future.
In current trading session, the stock price of Arch Therapeutics Inc (OTCBB:ARTH) surged 1.22% to trade at $0.250. The market cap is $19.01 million.