Why did Artelo's operating profit drop sharply in Q4 2024?

Artelo Biosciences experienced a significant drop in operating profit in Q4 2024, with a reported operating income of -$3.81 million. This decline can be attributed to several factors:

|code|Ticker|Name|Date|Operating Income|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|ARTL|ARTL.O|Artelo Biosciences|2023 Q4|-3240000||186|
|ARTL|ARTL.O|Artelo Biosciences|2024 Q1|-2589000||186|
|ARTL|ARTL.O|Artelo Biosciences|2024 Q2|-2512000||186|
|ARTL|ARTL.O|Artelo Biosciences|2024 Q3|-1195000||186|

1. **Decrease in Research and Development Expenses**: The reduction in operating expenses, which amounted to $1,195,000 for the quarter, was primarily driven by a decrease in research and development expenses. This decrease was influenced by UK tax credits, which benefited the company's financials.
2. **General and Administrative Expenses**: The company's general and administrative expenses decreased from $1,029,000 in the previous year to $870,000. This reduction in stock-based compensation costs contributed to the overall decrease in operating expenses.

In summary, the drop in Artelo's operating profit in Q4 2024 can be attributed to a combination of decreased research and development expenses and general and administrative expenses.