Arch Therapeutics Inc (OTCMKTS:ARTH) submitted Form 10-Q wherein it stated that the company didn’t post any revenue in the quarter ended June 30,2016, and remained unchanged from the same quarter, a year earlier.
Arch Therapeutics reported that in the recent quarter, the G&A expenses amounted to over $1.294 million against $813,122 for the quarter ended June 30, 2015. The jump in general and administrative expense can be attributed to a surge in patent-related costs, stock based compensation and payroll and recruiting related expenses.
Arch Therapeutics reported that research and development expenses in the reported quarter amounted to $438,627 against $525,107 in 3Q2015. This decline in R&D expense can be attributed to a decline in stock based compensation partially offset by a jump in expenses linked with pre-clinical development costs and quality management system advisory and consulting related expenses.
The future ahead
R&D costs are projected to increase as the company intends to expand clinical studies and clinical programs. In last December, the management confirmed that they had obtained approval from a regulatory body in Western Europe to commence a human clinical study. It will evaluate the performance and safety of AC5 in humans. The first enrollment was treated in 1Q2016 and in June, Arc Therapeutics reported that they have completed subject enrollment in this trial.
Other income in 3Q2016 was $(33,104), a decline of $598,948 over other income for the quarter closed June 30, 2015. This drop in other income can be attributed to a change in derivative liabilities adjustments, which amounted to $700,170 during FY2016 as compared to FY2015, offset by a decline in interest expense. The management said that other income in 3Q2016 can be mainly attributed to interest expense.
In the last trading session, the stock price of Arch Therapeutics opened around $0.62 and was recorded trading flat at $0.630.
Iddriven Inc (OTCMKTS:IDDR) Heading Lower In The market
Iddriven Inc (OTCMKTS:IDDR) is heading lower in the market even on a decrease in short interest for the month of July and CEO, Arend Verweij, forecasting robust growth for the current year. The stock has registered an impressive run in recent weeks but the upside momentum seems to be easing by the day.
It appears the street has already factored in news that the company is developing robust sales and marketing infrastructure to fuel sales growth. Iddriven is also looking to expand its business empire at the back of strategic collaborations with the likes of Zeva and PATECCO.
Given the recent turmoil in the stock market, that has seen the stock edge lower; the management team will have to come up with something if they are to bolster the company’s sentiments on the street. This could involve reiterating Iddriven Inc (OTCMKTS:IDDR) prospects especially in Europe where the company is planning to score some points with its Identity and Access Management software solution.