Arch Therapeutics Inc (ARTH)

[Ziptrader0]

Several issues are at play in the background: Having read the patent license agreement between M.I.T. and Dr. Norchi, which Arch posted in an 8k SEC filing in 2013, it appears to me that if Arch doesn't get a 510(k) refiled in a timely manner, they could be in violation of the agreement which has milestones as of Jan 1, 2018 and Jan 1, 2019. The agreement was signed in 2011 so Norchi is pushing up against long term deadlines. This I think is likely why he is now saying he wants to get clearance for a wound dressing device and later on apply for hemostatis, taking the path of least resistance. If the 510(K) re-submission fails and Norchi has to file a de Novo or PMA, then I believe he will be unable to meet the licensee agreement milestones, as they are then facing a two year delay at best. This may not be the end of the story for Arch, as it could be possible for M.I.T. and Arch to negotiate an amendment, but as investors we should be aware of the uncertainties looming. Also in the conference Norchi stated he would be raising funds later this year, but was unclear as to how this would be done . Until we have more certainty about all of this, I can see how difficult it is to know how to value the stock. The SP could take a temporary bounce here from being oversold or it could lose more value if.39 is breached, I believe from my reading of the chart and current L2.