Cognition Therapeutics, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024

Press release · 05/07 12:33

Cognition Therapeutics, Inc. has reported a decrease in cash and cash equivalents, with a net loss of $10.8 million for the quarter ended March 31, 2024. The company’s total assets have also decreased, while total liabilities have increased. The financial report highlights the company’s ongoing efforts to develop treatments for neurodegenerative diseases and the challenges they face in the competitive pharmaceutical industry.

Overview

Cognition Therapeutics is a clinical-stage biopharmaceutical company developing treatments for age-related degenerative brain diseases like Alzheimer’s. They currently have no approved treatments and have incurred significant losses since they started in 2007, totaling $150.3 million as of March 2024. They have funded operations mostly through government grants and selling stock. They plan to continue spending significantly on research as they advance their lead candidate CT1812 through clinical trials.

COVID-19 Impact

The COVID-19 pandemic has disrupted clinical trials globally. Cognition has made adjustments to ensure safety and minimize risks, but further changes may be needed, which could delay development. Economic impacts could also reduce their ability to raise funding.

Revenue and Expenses

Cognition has no revenue yet and spends mainly on research and development (R&D) expenses to develop CT1812. These costs will increase as trials progress and they expand the pipeline. General and administrative (G&A) costs support operations.

Financial Results, Q1 2024 vs. Q1 2023

Category	Q1 2024	Q1 2023	Change
R&D Expenses	$10.6 million	$5.4 million	Increased $5.1 million due to more clinical trial activity
G&A Expenses	$3.5 million	$3.5 million	No significant change
Grant Income	$4.9 million	$3.4 million	Increased due to higher clinical trial costs
Net Loss	$9.2 million	$6.2 million	Loss increased due to higher R&D costs

Cash Position

Cognition had $34.7 million in cash at March 2024, raised from stock offerings, government grants, and other sources. They estimate this can fund operations through Q2 2025. They will likely need more funding to complete trials and launch CT1812.

Future Outlook

Cognition expects R&D costs to continue increasing substantially as trials progress. They will need significant additional funding in the future, likely through public or private stock offerings. Clinical and regulatory outcomes will determine future commercial potential.