Arch Therapeutics Inc (ARTH)

[Polyphemus]

Facts are Facts. From the 10Q filed earlier this week:

Total expenses for 1Q19 were down 25% ($506,479) from 1Q18. 75% of the decline ($385,700) was in R&D. G&A (mostly salaries + consultants) was down, but is 58+% of total expenditures. R&D seems to be in 2nd place.

Spending indicates that a development of a surgical hemostat - a Class III device that would take another $5-$8MM to execute prior to commercialization, even with building on existing data - is not imminent. Note that ARTH is not issuing this guidance, only Ladenberg is doing so.

New devices would require a profitable, cash positive success with the wound dressing product. FDA 510(k) was in December 2018. Waiting.