Executive Summary

Q2 FY2025 (three months ended Oct 31, 2024) remained pre‑revenue; net loss available to common shares was $1.42M with EPS of $(0.40). Operating expenses fell sharply year over year as R&D normalized with minimal trial activity .
Liquidity improved: cash rose to $4.09M, stockholders’ equity swung positive to $3.75M, supported by preferred financings and ATM sales; Alzamend regained Nasdaq compliance in October, reducing listing risk .
Clinical execution advanced: five Phase II “Lithium in Brain” trials set for 2025 with Massachusetts General Hospital; first patient enrolled/dosed for the healthy‑volunteer study and QMENTA AI imaging partnership executed; topline data targeted before year‑end 2025 .
Risks remain: going‑concern uncertainty, continued capital needs, and outstanding internal control material weaknesses; ALZN002 trial remains delayed pending a new CRO .
Near‑term catalysts: topline data for the healthy‑volunteer Phase II by year‑end 2025 and ongoing financing cadence; no Wall Street consensus was available via S&P Global for formal beat/miss comparison (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Balance sheet inflection: cash $4.09M and equity $3.75M vs deficit prior year; management emphasized financial prudence enabling upcoming trials. “These financing transactions have allowed us to greatly improve our financial situation…” — CEO Stephan Jackman .
Clinical momentum: partnership with Massachusetts General Hospital as CRO for five Phase II trials; first patient enrolled/dosed in healthy volunteers; QMENTA AI platform engaged to manage imaging data workflow .
Listing stability: formal notice of regaining compliance with Nasdaq’s equity rule, removing near‑term delisting overhang and supporting investor confidence .

What Went Wrong

No revenue and continued losses: Q2 net loss available to common shares $1.42M; company remains pre‑revenue with ongoing cash burn and a going‑concern warning .
Trial delays in ALZN002: prior CRO terminated in Feb 2024; process to engage a new CRO has taken longer than expected due to complexity and industry capacity constraints .
Internal controls: material weaknesses persist in accounting resources and IT access/change management; remediation underway but not yet effective .

Financial Results

Quarter-over-Quarter (Sequential) and Year-over-Year

Metric	Q2 FY2024 (3M ended Oct 31, 2023)	Q1 FY2025 (3M ended Jul 31, 2024)	Q2 FY2025 (3M ended Oct 31, 2024)
Revenues ($USD)	$0	$0	$0
Research & Development ($)	$1,996,783	$206,571	$311,088
General & Administrative ($)	$904,939	$755,834	$1,046,980
Total Operating Expenses ($)	$2,901,722	$962,405	$1,358,068
Net Loss ($)	$(2,906,033)	$(974,411)	$(1,361,563)
Net Loss to Common ($)	$(2,906,033)	$(974,411)	$(1,415,214)
EPS (Basic/Diluted) ($)	$(4.43)	$(1.25)	$(0.40)

Drivers:

R&D down YoY due to minimal clinical activities; Q2 spend reflects initial setup costs for Phase II imaging study with MGH .
G&A up sequentially from Q1 to Q2 on marketing programs and CEO bonus; professional fees mix shifted; insurance lower YoY .

KPIs and Balance Sheet

KPI	Q1 FY2025 (Jul 31, 2024)	Q2 FY2025 (Oct 31, 2024)
Cash ($)	$1,193,950	$4,093,073
Stockholders’ Equity ($)	$(1,212,319)	$3,752,968
Total Liabilities ($)	$2,882,171	$1,254,750
Working Capital ($)	$(1.5)M (deficit)	$3.5M
Cash Used in Ops (YTD) ($)	$(1,055,742) 3M	$(4,455,843) 6M
Shares Outstanding (EOP)	861,332	5,231,254

Note: Equity and share count shifts reflect conversions of preferred stock to common and ATM issuances .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Phase II healthy-volunteer AL001 topline	CY2025	Initiate Phase II in 2025	Topline data expected before year-end 2025	Clarified timeline (maintained schedule; added topline timing)
Five Phase II “Lithium in Brain” trials (ALZ, BD, MDD, PTSD + healthy)	CY2025	Plan to initiate trials in 2025 with MGH	First patient enrolled/dosed in healthy volunteers; trials proceeding with MGH and AI imaging support via QMENTA	Execution progress (raised confidence)
Listing status	Ongoing	At risk of delisting; compliance plan in place	Regained Nasdaq equity-rule compliance; listing continued	Improved
Financial metrics (Revenue/Margins/Tax/OpEx guidance)	FY/Qtr	None provided	None provided	N/A

Earnings Call Themes & Trends

No Q2 FY2025 earnings call transcript was available; themes are derived from filings and press releases.

Topic	Previous Mentions (Q1 FY2025, Q2 FY2024)	Current Period (Q2 FY2025)	Trend
Clinical execution (AL001 Phase II with MGH)	Plan to initiate trials in 2025; MTD confirmed; INDs cleared for BD/MDD/PTSD	First healthy volunteer enrolled/dosed; coil finalized; topline expected by YE2025	Positive momentum
AI/technology in imaging	None	QMENTA AI platform engaged for imaging analytics and workflow	New capability added
Financing/liquidity	Preferred & ATM financings; working capital deficit	Equity positive; cash improved; financing cadence continued	Improving
Listing compliance	Non‑compliance risk under Nasdaq rules	Regained Nasdaq compliance	De‑risked
Regulatory/ALZN002 CRO	CRO terminated; searching replacement	Process to engage new CRO continues; slower than expected	Ongoing constraint
Internal controls	Material weaknesses disclosed	Material weaknesses persist; remediation in progress	Unchanged

Management Commentary

“These financing transactions have allowed us to greatly improve our financial situation… provides us with the capital in preparation of the upcoming clinical trials to be initiated in 2025.” — CEO Stephan Jackman (Q2 FY2025 press release) .
“The dosing of the first patient in our first Phase II trial of AL001 is another significant step forward… We expect to announce topline data from this study before the end of 2025.” — CEO Stephan Jackman (May 29, 2025) .
“We are pleased to announce the enrollment of the first patient… with topline data anticipated by the end of the year.” — CEO Stephan Jackman (May 19, 2025) .
“We are very pleased to announce that Alzamend has regained compliance with Nasdaq’s listing standards… We remain focused on moving forward with our five phase II clinical trials of AL001…” — CEO Stephan Jackman (Oct 15, 2024) .

Q&A Highlights

No Q2 FY2025 earnings call transcript was available; no Q&A to report [ListDocuments returned none].

Estimates Context

Wall Street consensus (EPS and revenue) via S&P Global was unavailable for ALZN at the time of analysis, so no beat/miss comparison could be made. Values retrieved from S&P Global were unavailable due to access limitations; consequently, estimate-based comparisons are omitted.

Key Takeaways for Investors

Liquidity and listing de‑risked: equity positive, cash $4.09M, and Nasdaq compliance regained; lowers near‑term structural risk and supports ongoing financing access .
Clinical catalysts lining up: first patient enrolled/dosed for Phase II healthy‑volunteer study; topline by YE2025 could be a major stock catalyst, particularly if brain lithium delivery advantages are demonstrated vs lithium carbonate .
R&D spend likely to ramp from Q2 setup levels as Phase II activities broaden in 2025; monitor quarterly opex trajectory and burn vs available capital and financing cadence .
ALZN002 remains a swing factor: re‑engagement of a new CRO is critical to re‑start program progress; delays continue to be a risk .
Internal controls remediation should be tracked; resolution could improve reporting quality and investor confidence .
With no sell‑side consensus available, price moves may hinge on execution headlines (trial milestones, financings) rather than beats/misses; trading opportunities around trial news flow and financing tranches are likely .

Appendix: Prior Quarter Reference

Q1 FY2025 (three months ended Jul 31, 2024): net loss $(0.97)M; EPS $(1.25); opex $0.96M; cash $1.19M; working capital deficit; plans to initiate Phase II trials in 2025; preferred financings executed .
Q2 FY2025 compared favorably YoY: opex down ~53%, net loss improved vs Q2 FY2024; sequentially, opex and net loss rose modestly vs Q1 as trial setup and marketing spend increased .

Sources: SEC 8‑K (Q2 FY2025 results & clinical updates) ; 10‑Q (Q2 FY2025 financials) ; 10‑Q (Q1 FY2025 financials) ; Press releases (MGH partnership and trial plan) ; Phase IIA full data set ; Regained Nasdaq compliance ; Healthy volunteer enrollment/dosing/topline timing ; QMENTA AI imaging partnership .

Alzamend Neuro, Inc. (ALZN)·Q2 2025 Earnings Summary