Alpha Cognition Announces Fourth Quarter and Full Year 2022 Results and Provides Corporate Update
VANCOUVER, B.C., March 08, 2023. 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, today reported financial results for the fourth quarter and full year ended December 31, 2022 and provided a corporate update.
"The Company is focused on its NDA filing for ALPHA-1062 for mild to moderate Alzheimer’s disease. If approved, ALPHA-1062 would the first next-generation oral therapy approved for mild-to-moderate Alzheimer’s disease (AD) in over a decade. There is a significant unmet need for more tolerable agents in the AD space. Additionally, the Company continues to manage its cash judiciously to extend runway while continuing to explore partnerships and other opportunities." said Michael McFadden, the Company’s Chief Executive Officer.
Recent Company Developments
The company has initiated work to submit an NDA for ALPHA-1062 in mild to moderate Alzheimer’s disease to the FDA in June/July 2023.
Company is preparing for a pre-IND meeting with FDA regarding ALPHA-1062 Intranasal program for TBI, this meeting is expected to occur during the second quarter of 2023.
On February 16, 2023, the Company closed the first tranche of the February 2022 PP by issuing 16,795,221 units of the Company at a price of CAD$0.255 per unit, for gross proceeds of CAD$4,282,781. The Company also announced as of February 16, 2023, it had also entered into subscription agreements towards a second tranche closing for an additional 6.48 million shares or CAD$1.65 million under the Offering. The second tranche is expected to close early March 2023.
On March 6, 2023, the Company and Neurodyn Life Sciences Inc. agree to an amendment to the promissory note pursuant to which the interest rate was increased from 2% to 5.5% and the maturity date was extended from December 31, 2022 to July 15, 2024. The amended agreement is effective March 1, 2023 and requires monthly interest only payments until maturity. In addition, the amendment now incorporates both Alpha Cognition Inc. and Alpha Cognition Canada Inc. under the Memogain Technology Agreement and added clarity to certain terms and definitions under the license agreement.
Financial Highlights for Fourth Quarter and Full Year of 2022
(Expressed in United States Dollars)
- Research and development (R&D) expenses were $2.4 million for the three months ended December 31, 2022, and $8.8 million for the year ended December 31, 2022, compared to $2.7 million and $8.0 million in the same periods in 2021, respectively. R&D expenses for the year ended December 31, 2022 increased over the prior year primarily due to the additional costs associated with advancing ALPHA-1062 and ALPHA-0602 clinical and preclinical studies.
- General and administrative (G&A), excluding non-cash expenses relating to accretion, amortization, depreciation, and share-based compensation, were $0.8 million for the three months ended December 31, 2022, and $3.4 million for the full year ended December 31, 2022, compared to from $1.0 million and $2.6 million in the same periods of 2021 respectively. The increase for the full year ended December 31, 2022 in G&A expenses was primarily related to management fees and salaries, consulting and professional fees, and other G&A expenses offset somewhat by lower expenses in investor relation, marketing, and registrar and filing fees. The overall G&A increase year over year was due to supporting the advancement or our clinical trails and growth in our corporate operations.
- The Company recorded a gain on revaluation derivative liability for the three months ended December 31, 2022 of $0.2 million and $1.8 million for the full year ended December 31, 2022, compared to a gain of $1.1 million and loss of $6.1 million in the same periods of 2021 respectively. The Company performs a revaluation each reporting period for the derivative liability relating to the convertible debentures and the recognition of a derivative liability on the transfer of warrants with an exercise price in USD from Alpha Cognition Canada to Alpha Cognition Inc. pursuant to the transaction whereby Alpha Cognition Canada was acquired by and became a wholly owned subsidiary of Alpha Cognition Inc.
- The Company incurred nil in listing expenses in the three and full year ended December 31, 2022, compared to nil and $1.4 million in the same period of 2021 respectively, the 2021 expenses were related to the Company’s Q1 2021 public listing and reverse acquisition transaction.
- Share-based compensation under general and administrative was $0.2 million for the three months ended December 31, 2022 and $1.2 million for the full year ended December 31, 2022, compared to $0.6 million and $1.0 million in the same periods of 2021, respectably. The full year increase was primarily due to the increase in size of the management team in support of the Company growth.
- The Company incurred foreign exchange loss of $0.9 million in the three months ended December 31, 2022 and $0.3 million for the full year ended December 31, 2022, compared to $0.0 million and $0.0 million in the same periods of 2021, respectably.
- The fourth quarter of 2022 net loss was $3.2 million, or a net loss of $0.05 per share, and for the full year ended December 31, 2022, net loss was $12.1 million, or a net loss of $0.18 per share, compared to the forth quarter of 2021 net loss of $3.2 million, or a net loss of $0.06 per share, and for the full year ended December 31, 2021, a net loss of $19.6 million, or a net loss of $0.37 per share.
- Cash and cash equivalents at December 31, 2022 were $2.1 million.
- Shares of common stock outstanding at December 31, 2022 were 61,023,450.
About Alpha Cognition Inc.
Alpha Cognition Inc. is a clinical stage, biopharmaceutical company dedicated to developing treatments for patients suffering from neurodegenerative diseases, such as Alzheimer's disease and Amyotrophic Lateral Sclerosis (ALS), for which there are limited treatment options.
ALPHA-1062, is a patented new chemical entity being developed as a new generation acetylcholinesterase inhibitor for the treatment of Alzheimer's disease, with expected minimal gastrointestinal side effects. ALPHA-1062's active metabolite is differentiated from donepezil and rivastigmine in that it binds 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 as an intranasal formulation for traumatic brain injury.
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