Artelo Biosciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

3 Months Ended

Mar. 31, 2024

NOTE 6 - LEASE

On May 12, 2021, the Company entered into a lease arrangement for office space with Beckman/Lomas LLC, an entity controlled by a close family member of a director. Effective June 1, 2022, the related party divested its interests in the property, and as such, the lease agreement no longer constitutes a related party transaction. On March 6, 2024, the Company entered into an amended agreement with the landlord to extend the lease commencing in September 2024 and effective until August 2027.

On April 19, 2022, the Company entered into a 2nd lease arrangement for office space with an annual rent of $13 (£11) with the term of April 2022 through September 2023.

The following summarizes right-of use asset and lease information about the Company’s operating lease as of March 31, 2024:

	Three months ended
	March 31,
	2024			2023

Lease cost
Operating lease cost	$	8		$	11

Other information
Cash paid for operating cash flows from operating leases	$	8		$	11
Right-of-use assets obtained in exchange for new operating lease liability	$	111		$	-

Weighted-average remaining lease term — operating leases (year)		3.33			1.36
Weighted-average discount rate — operating leases		7.50	%		2.99	%

Future minimum lease payments under the operating lease liability have non-cancellable lease payments at March 31, 2024, as follows:

	Total
Year Ended December 31,
2024	$	29
2025		42
2026		43
2027		30
Thereafter		-
		144
Less: Imputed interest		(17	)
Operating lease liabilities		127

Operating lease liability - current		31
Operating lease liability - non-current	$	96