Alpha Cognition Reports Third Quarter of Fiscal 2021 Results

Rhea-AI Summary

Alpha Cognition Inc. (TSX-V: ACOG, OTCQB: ACOGF) announced its Q3-2021 financial results, reporting a net loss of $4.3M, or $(0.09) per share, up from a $1.5M loss in Q3-2020. Research and development expenses increased to $2.1M, while general and administrative expenses rose to $340k. The company ended the quarter with $5.6M in cash. Alpha Cognition is advancing clinical programs for ALPHA-1062 and ALPHA-0602, focusing on neurodegenerative disorders. CEO Michael McFadden stated the company is well-positioned with a $10.7M funding raise for R&D into 2022.

Positive

• Cash and cash equivalents at $5.6M, consistent with prior quarter.
• Successful $10.7M funding raise in October, enabling continued R&D.
• Upcoming top-line results for ALPHA-1062 pivotal trial expected in Q2-2022.

Negative

• Net loss increased to $4.3M from $1.5M in Q3-2020.
• R&D expenses rose significantly, indicating higher operational costs.

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Alpha Cognition Inc. (TSX-V: ACOG) (OTCQB:ACOGF) (“Alpha Cognition”, or the “Company”), a biopharmaceutical company committed to developing novel therapies with the potential to transform the lives of people with debilitating neurodegenerative disorders, is pleased to announce that it has reported its Third Quarter financial results of fiscal 2021.

Select Financial Information for Q3-2021:

(for the period ended September 30, 2021)

• Research and development expenses were $2.1M for the three months ended September 30, 2021 ($1.1M Q3-2020).
• General and administrative, including Management and Professional fees, Travel, and Other G&A, were $340k for the three months ended September 30, 2021 ($202k Q3-2020).
• Net loss was $4.3M (including non-cash expenses), or $(0.09) per share, for the three months ended June 30, 2021 ($1.5M net loss and $0.03 per share, Q3-2020).
• Cash and cash equivalents were $5.6M ($5.6M Q2-2020), which included the receipt of $6.1M for the exercise of warrants ($Nil Q3-2020).
• Shares outstanding were 44,893,927 shares of common stock outstanding.

The Company completed its Q3 with $5.6M in cash and cash equivalents, and continues to execute its lean operational model, managing OpEx at $3.1M for the quarter ($1.5M Q3-2020) (this includes non-cash related expenses), which is consistent with prior quarters. Operational expenses and program development are in-line with expectations previously articulated to investors.

The company has managed expenses in Q3 consistent with the prior quarter, while continuing to advance its commercialization activities for ALPHA-1062, clinical trial program development for ALPHA-1062 for mild to moderate Alzheimer’s and Traumatic Brain Injury; and progressing the ALPHA-0602 program for ALS. The company also formed its scientific advisory board during the quarter, a panel of the top neurology experts in the US, which will advise the company regarding scientific programs and clinical trials.

Michael McFadden, the Company’s CEO, commented: “With the successful raise in October of $10.7M US, the company is positioned to continue its R&D activities well into 2022. We are on track to deliver top line results of the ALPHA-1062 pivotal trial in Q2-2022, and the company will deliver top-line results from our TBI and Progranulin programs in Q1-2022.”

About Alpha Cognition Inc.

Alpha Cognition Inc. is a clinical stage, biopharmaceutical company dedicated to developing treatments for under-served neurodegenerative diseases, such as Alzheimer's Dementia and Amyotrophic Lateral Sclerosis (ALS).

ALPHA-1062 is a patented new chemical entity that has demonstrated safety and improved tolerability in human clinical trials. It is being developed as a new generation acetylcholinesterase inhibitor for the treatment of Alzheimer's disease, with minimal gastrointestinal side effects and novel routes of administration. ALPHA-1062's active metabolites are differentiated from donepezil and rivastigmine in that they may sensitize neuronal nicotinic receptors, most notably the alpha-7 subtype, which is known to have a positive effect on cognition. ALPHA-1062 is also being developed in combination with memantine to treat moderate to severe Alzheimer's dementia and in a nasal spray formulation to treat traumatic brain injury.

ALPHA-0602 (Progranulin) is expressed in several cell types in the central nervous system and in peripheral tissues, regulates cell survival and certain inflammatory processes, and plays a major role in regulating lysosomal function and microglial responses to disease. Its use for the treatment of neurodegenerative diseases has been patented by the Company and granted an Orphan Drug Designation.

Neither TSX Venture Exchange (the “TSX-V”), OTC Markets Group, nor the TSX-V’s Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release is not, and under no circumstances is to be construed as, an advertisement or a public offering of securities. No securities commission or similar authority in Canada or in any other jurisdiction has reviewed or in any way passed upon this news release or the merits of the securities described herein and any representation to the contrary is an offence.

This news release includes forward-looking statements within the meaning of applicable securities laws. Except for statements of historical fact, any information contained in this news release may be a forward-looking statement that reflects the Company’s current views about future events and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements can be identified by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “target,” “seek,” “contemplate,” “continue” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward-looking statements in this news release include statements regarding the Company’s business strategy, market size, potential growth opportunities, capital requirements, clinical development activities, the timing and results of clinical trials, regulatory submissions, potential regulatory approval and commercialization of the technology. Although the Company believes that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. The Company cannot assure that the actual results will be consistent with these forward-looking statements as a result of known and unknown risks, uncertainties, assumptions and other factors. These risks, uncertainties, assumptions and other factors include those associated with clinical studies and manufacturing, as well as development and commercialization of the Company’s products; the need for additional financing to maintain operations; risks posed by the economic and political environments in which the Company operates and intends to operate; market instability due to the COVID-19 pandemic; the potential for losses arising from the expansion of operations into new markets; increased competition; assumptions regarding market trends and the expected demand and desires for the Company’s products and proposed products; reliance on industry manufacturers, suppliers and key personnel; the failure to adequately protect intellectual property; a failure to adequately manage future growth; adverse market conditions; and failure to satisfy ongoing regulatory requirements or obtain regulatory approvals. These forward-looking statements speak only as of the date of this news release and, other than as required by applicable securities laws, the Company undertakes no obligation to revise or update any forward-looking statements, even if new information becomes available in the future.

This news release may also contain estimates and other statistical, market and industry data from independent parties or made by the Company relating to our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We cannot guarantee the accuracy and completeness of information from third party sources.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211130005165/en/

Bristol Investor Relations

Stefan Eftychiou

905 326 1888 ext 6

stefan@bristolir.com

https://www.alphacognition.com/

Source: Alpha Cognition Inc.

FAQ

What is Alpha Cognition's financial performance for Q3-2021?

Alpha Cognition reported a net loss of $4.3M for Q3-2021, up from $1.5M in the same quarter last year.

How much cash did Alpha Cognition have at the end of Q3-2021?

Alpha Cognition reported $5.6M in cash and cash equivalents at the end of Q3-2021.

What are the upcoming milestones for Alpha Cognition?

Alpha Cognition expects to deliver top-line results for ALPHA-1062 in Q2-2022 and for TBI and Progranulin programs in Q1-2022.

How did Alpha Cognition's expenses change in Q3-2021?

Research and development expenses rose to $2.1M in Q3-2021, up from $1.1M in Q3-2020.