Alzamend Neuro Reports Improved Financials, Reduced Losses, and Doubts Over Going Concern

Alzamend Neuro, Inc., a clinical-stage biopharmaceutical company focused on developing treatments for Alzheimer's disease and related conditions, reported significant financial developments in its recent 10-Q filing for the quarter ended July 31, 2024. The company has not generated any product revenue to date, and its operations have been primarily financed through debt and equity sales.

As of July 31, 2024, Alzamend reported cash of $1.2 million, a substantial increase from $376,048 as of April 30, 2024. Total current assets rose to $1.4 million from $455,242 in the previous quarter, while total assets increased to $1.67 million from $631,588. Total liabilities decreased to $2.88 million from $3.23 million, resulting in a reduced stockholders' deficit of $1.21 million compared to $2.59 million in the prior quarter.

For the three months ended July 31, 2024, Alzamend reported total operating expenses of $962,405, a significant decrease of 73% from $3.53 million in the same period of 2023. The loss from operations improved to $(962,405) from $(3.53 million) year-over-year. The net loss for the quarter was $(974,411), down 72% from $(3.53 million) in the prior year, with basic and diluted net loss per share improving to $(1.25) from $(5.38).

Research and development expenses also saw a notable decline, falling to $207,000 from $2.4 million in the same quarter of 2023. This reduction is attributed to minimal clinical trial activities, with clinical trial fees dropping to nil from $1.2 million in the previous year. General and administrative expenses decreased to $756,000 from $1.2 million, while salaries and benefits increased slightly to $228,000 from $153,000 due to a reversal of bonus accrual.

The company has been actively raising capital, with net proceeds from the issuance of preferred stock totaling $1.96 million for the quarter. This included sales of Series A and Series B Convertible Preferred Stock, which are crucial for funding ongoing clinical trials and operations. However, management expressed substantial doubt about the company's ability to continue as a going concern for at least one year, citing insufficient cash to fund operations.

Alzamend's strategic focus remains on advancing its lead product candidates, AL001 and ALZN002, with plans to initiate clinical trials in 2025. The company has also engaged Massachusetts General Hospital as the contract research organization for upcoming trials. Despite the financial challenges, Alzamend continues to pursue its goal of developing innovative treatments for Alzheimer's and related disorders.