Alpha Cognition Reports Q1 2024 Results and Corporate Update

Alpha Cognition Inc., a biopharmaceutical company headquartered in Vancouver, British Columbia, aims to develop groundbreaking treatments for neurodegenerative disorders. Recently, the company announced its financial performance for the first quarter of 2024 and provided an update on its corporate activities.

Chief Executive Officer Michael McFadden highlighted the company's ongoing efforts with the U.S. Food and Drug Administration (FDA) concerning ALPHA-1062, a treatment for mild-to-moderate Alzheimer’s disease. The FDA is currently reviewing ALPHA-1062, and the company is preparing for its potential commercialization. The Prescription Drug User Fee Act (PDUFA) date for this medication is set for the end of July 2024. If approved, ALPHA-1062 could become a unique treatment option for Alzheimer’s patients.

During the first quarter of 2024, Alpha Cognition successfully completed a private placement memorandum (PPM) financing of $8.45 million. This included a 30% overallotment, with a final closing amount of $3.7 million in January. The company also made significant progress with the New Drug Application (NDA) review process for ALPHA-1062, which has a PDUFA date of July 27, 2024.

In collaboration with the Seattle Institute for Biomedical and Clinical Research, Alpha Cognition continued a pre-clinical study to evaluate the effects of ALPHA-1062 administered intranasally. The study aims to determine its ability to mitigate behavioral and functional deficits as well as brain-wide neuropathology following blast injuries compared to placebo treatments.

Manufacturing stability for all doses of ALPHA-1062 has been achieved for up to 18 months. Additionally, the company has been preparing for its entry into the Long-Term Care (LTC) market segment. Research indicates that the market for acetylcholinesterase inhibitors in the U.S. LTC sector is substantial, accounting for 36% of the over 11 million prescriptions filled annually. Both patients and practitioners have expressed dissatisfaction with current treatments, presenting an opportunity for ALPHA-1062.

Financially, Alpha Cognition reported research and development (R&D) expenses of $0.9 million for the quarter ending March 31, 2024, a decrease from $1.1 million in the same period of 2023. The reduction is primarily attributed to lower NDA and commercial manufacturing costs related to the FDA filing for ALPHA-1062 in September 2023.

General and administrative (G&A) expenses, excluding non-cash items, rose to $3.2 million for the three months ending March 31, 2024, up from $0.7 million in the same quarter of the previous year. This increase was largely due to consulting fees, including $2.3 million for shares issued under a consulting agreement with Spartan Capital, as well as higher management and professional fees.

On August 31, 2023, the company changed its functional currency from CAD to USD, necessitating a revaluation of warrants with CAD exercise prices. This revaluation led to a derivative liability of $1,133,161 as of March 31, 2024, and a loss of $619,989 for the quarter.

Share-based compensation expenses increased to $0.3 million for the three months ending March 31, 2024, compared to $0.2 million for the same period in 2023. The company also recorded a foreign exchange loss of $15,000, in contrast to a gain of $28,000 in the first quarter of 2023.

The comprehensive net loss for the first quarter of 2024 was $5.0 million, or $0.03 per share, compared to a net loss of $1.9 million, or $0.02 per share, for the same period in 2023. As of March 31, 2024, Alpha Cognition had $2.4 million in cash and cash equivalents, including $0.2 million in restricted cash.

Effective April 1, 2024, Alpha Cognition and NLS amended their promissory note agreement, increasing the interest rate from 5.5% to 7% and extending the maturity date from July 2024 to July 2025. An amount of $300,000 is now due by the end of 2024, with the remaining balance due at maturity.

As of March 31, 2024, Alpha Cognition had 149,925,536 shares of common stock outstanding. The company remains focused on developing ALPHA-1062 to provide new treatment options for Alzheimer’s disease patients.