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AC

Alpha Cognition Inc. (ACOGF)·Q2 2024 Earnings Summary

Executive Summary

  • Alpha Cognition reported Q2 2024 net loss of $2.12M and diluted EPS of $(0.01); year-over-year loss improved from $(2.82M) and EPS $(0.03) .
  • FDA approved ZUNVEYL (benzgalantamine) on July 29, 2024, a potential commercial catalyst, with launch preparation focused on the U.S. long-term care market segment .
  • Operating expense discipline contributed to sequential improvement vs Q1 2024, aided by a gain on revaluation of warrant derivative liabilities in Q2; however, cash and cash equivalents were $1.19M at quarter-end, highlighting funding risk pre-launch .
  • No formal Q2 2024 guidance and no Wall Street consensus estimates were available via S&P Global; estimate comparisons are not included.

What Went Well and What Went Wrong

What Went Well

  • FDA approval for ZUNVEYL provides a clear commercialization path and validates the clinical/regulatory case: “The FDA approval of ZUNVEYL represents an important breakthrough for patients with Alzheimer’s disease… we will focus attention on preparing for the commercial launch” — CEO Michael McFadden .
  • Sequential improvement in net loss from Q1 to Q2 ($(5.0)M to $(2.12)M), reflecting lower quarterly operating expenses and a $187,056 gain on revaluation of derivative liabilities .
  • Strategic LTC focus supported by market research (36% of U.S. AChEI prescriptions from LTC), positioning ZUNVEYL for adoption where tolerability is paramount .

What Went Wrong

  • Cash and cash equivalents of $1.19M at June 30, 2024 underscore balance sheet fragility prior to funding rounds later in 2024/2025 .
  • General & Administrative expenses remained elevated vs prior-year quarter (Q2 G&A excluding non-cash $1.2M vs $0.6M), driven notably by consulting/share issuance costs, including Spartan Capital agreement effects over 1H 2024 .
  • No Q2 earnings call transcript found and no formal guidance ranges provided, limiting visibility into near-term trajectory and operational cadence [ListDocuments: none for earnings-call-transcript 2024-06-01 to 2024-09-30] .

Financial Results

Summary Financials vs Prior Periods

MetricQ2 2023Q1 2024Q2 2024
Net Loss ($USD Millions)$2.82 $5.00 $2.12
Diluted EPS ($USD)$(0.03) $(0.03) $(0.01)
Total Operating Expenses ($USD Millions)$2.73 N/A$2.42
Other Income (Expense), Net ($USD Millions)$(0.09) N/A$0.31
Cash and Cash Equivalents ($USD Millions, quarter-end)$1.50 (FY 2023 YE reference) $2.40 (as of March 31, 2024) $1.19

Notes: Q1 2024 detail sourced from Alpha Cognition’s Q1 MD&A; Q2 2023 and Q2 2024 from the Q2 2024 8-K Exhibit 99.1.

Operating Expense Detail (YoY)

MetricQ2 2023Q2 2024
Research & Development ($USD Millions)$1.30 $0.90
G&A (excl. non-cash) ($USD Millions)$0.60 $1.20
Share-based Compensation in G&A ($USD Millions)$0.80 $0.20

EPS and Share Count

MetricQ2 2023Q2 2024
Diluted EPS ($USD)$(0.03) $(0.01)
Weighted Avg Shares (Basic & Diluted)94.60M 150.23M

No revenue was reported in Q2 2024; the P&L is primarily operating expenses and other income/expense (grant income, other income, derivative liability revaluation) .

Guidance Changes

No formal numerical guidance ranges were provided for Q2 2024 in the press release/8-K. The company highlighted focus on commercialization preparation and LTC market entry post-FDA approval; no revenue, margin, OpEx, tax, or segment guidance ranges were issued .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024 / FY 2025None None Maintained (no guidance)
OpExFY 2024 / FY 2025None None Maintained (no guidance)
MarginsFY 2024 / FY 2025None None Maintained (no guidance)

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available. Themes are drawn from company communications across prior quarters and Q2 PR.

TopicPrevious Mentions (Q4 2023)Previous Mentions (Q1 2024)Current Period (Q2 2024)Trend
Regulatory/ApprovalNDA accepted; PDUFA July 27, 2024 Awaiting PDUFA; pre-commercial planning FDA approval of ZUNVEYL on July 29, 2024 Positive inflection
Commercial Strategy (LTC)Plan to launch in LTC post-approval Continued commercial readiness Advancing commercialization preparations; LTC represents ~36% of AChEI scripts Building momentum
R&D/GrantsR&D lower YoY; pipeline focus Q1 grant income recognized Q2 grant income/expenses; ongoing intranasal ALPHA-1062 mTBI blast study Ongoing execution
IP/LegalPatent portfolio updates in FY 2023 PR —ZUNVEYL positioning as novel prodrug with dual MOA Strengthening positioning

Management Commentary

  • “The FDA approval of ZUNVEYL represents an important breakthrough for patients with Alzheimer’s disease… Over the coming months, we will focus attention on preparing for the commercial launch of ZUNVEYL and bringing this innovative treatment to patients.” — Michael McFadden, CEO .
  • “The acetylcholinesterase inhibitor prescription market in the U.S. from the LTC market is large, representing 36% of the over 11 million prescriptions… characterized by both patient and practitioner dissatisfaction.” — Company statement on LTC strategy .
  • “During the first quarter of 2024, 9,420,050 warrants were re-priced from CAD to USD… resulted in $3,942,575 of the derivative liability being reclassified to equity… revalued the derivative liability to $946,105 and recorded a gain on revaluation of $187,056 for the three months ended June 30, 2024.” — Capital structure mechanics .

Q&A Highlights

No Q2 2024 earnings call transcript was found in the document index, and no transcript was available via our search; thus, no Q&A highlights are included [ListDocuments: none for earnings-call-transcript 2024-06-01 to 2024-09-30].

Estimates Context

  • No S&P Global/Capital IQ consensus estimates were available for ACOGF for Q2 2024; therefore, comparisons to Street estimates are not included.
  • Company disclosures did not reference consensus or guidance; investors should monitor upcoming filings and Q4 2024 / FY 2024 communications for evolving coverage .

Guidance Changes

See the Guidance Changes section above; no numerical guidance ranges were provided for Q2 2024 .

Prior Quarter Context (for trajectory)

  • Q1 2024: Comprehensive net loss of $5.0M; EPS $(0.03); cash $2.4M; notable consulting/share issuance expense and derivative liability effects drove losses .
  • Q4 2023: Comprehensive net loss of $5.8M; cash $1.5M YE; NDA acceptance announced, paving the path to Q3 2024 approval .

KPIs and Balance Sheet

KPI / Balance SheetQ2 2023Q2 2024
Cash & Equivalents ($USD Millions)—$1.19
Working Capital (Deficiency) ($USD Millions)—$(0.06)
Total Assets ($USD Millions)—$2.08
Total Long-Term Liabilities ($USD Millions)—$1.90

Note: Q2 2023 cash not provided in Q2 2024 exhibit; FY 2023 YE cash was $1.5M .

Key Takeaways for Investors

  • FDA approval of ZUNVEYL is a material de-risking event and the primary near-term catalyst; commercialization focus in LTC is strategically aligned with tolerability needs in that channel .
  • Sequential P&L improvement (Q1 to Q2) reflects reduced quarterly losses and derivative liability gains; sustainability depends on launch execution and funding .
  • Liquidity was constrained at Q2 2024 ($1.19M cash), necessitating capital actions (which the company pursued later in 2024/2025); monitor cash runway and dilution risk .
  • No Street estimates available; stock reaction will hinge on commercialization metrics (prescriptions, LTC penetration, payer access) rather than earnings beats/misses.
  • Watch for post-approval IP and label differentiation messaging around tolerability (GI profile, insomnia) to drive adoption vs legacy galantamine and other AChEIs .
  • Pipeline optionality (intranasal ALPHA-1062 for mTBI with grant-backed preclinical work) adds long-term value but near-term valuation is dominated by ZUNVEYL launch milestones .
  • Near-term trading: sensitivity to funding/partnership announcements and early launch datapoints; medium-term thesis: LTC uptake curve, reimbursement traction, and margin structure as commercial operations scale .