Alpha Cognition Inc. (ACI), a biopharmaceutical company focused on treatments for neurodegenerative diseases, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s cash and cash equivalents increased to $3.67 million from $1.40 million at the end of 2023, contributing to a total asset rise to $5.03 million, up from $2.45 million. The increase in common shares issued and outstanding from 4.73 million to 6.03 million resulted in a corresponding rise in common shares value from $39.76 million to $49.15 million.

For the three months ended September 30, 2024, Alpha Cognition reported total operating expenses of $2.49 million, a decrease from $2.77 million in the same period of 2023. The net operating loss for the quarter improved to $(2.49 million) from $(2.77 million) year-over-year. However, for the nine months ended September 30, 2024, total operating expenses rose to $9.32 million, compared to $7.52 million in 2023, reflecting a 24% increase. The net loss for the nine-month period was $(8.98 million), slightly higher than $(8.03 million) in the previous year.

The company experienced a notable increase in grant income, reporting $333,462 for the nine months ended September 30, 2024, compared to just $32,757 in 2023. This increase was attributed to a $750,000 research and development grant awarded in June 2023 for a pre-clinical study on ALPHA-1062. Additionally, total other income for the nine months was $342,384, a significant improvement from $(512,214) in the prior year.

Alpha Cognition's accumulated deficit grew to $(70.63 million) as of September 30, 2024, up from $(61.65 million) at the end of 2023. The company has not generated any revenue from operations to date and continues to rely on external financing to meet its obligations. As of the reporting date, current liabilities totaled $3.01 million.

Strategically, the company received FDA approval for ZUNVEYL (formerly ALPHA-1062) on July 29, 2024, and plans to launch the product in Q1 2025. The wholesale acquisition cost for ZUNVEYL is set at $649 per month. Following the approval, Alpha Cognition completed a public offering on November 13, 2024, raising approximately $50 million, which is expected to support ongoing operating costs and the commercialization of ZUNVEYL.

The company has implemented cost-cutting measures since Q3 2022, including reducing headcount and prioritizing spending on critical development projects. Despite the increase in operating expenses, management believes that existing cash reserves will be sufficient to fund operations for at least the next 12 months, although additional capital may be required to support commercialization efforts.