Alpha Cognition Inc (ACOG) AI Stock Analysis

• Market Cap: $124.36M
• Dividend Yield: N/A
• Average Volume (3M): 87.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: 52.52%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Financial - Conglomerates
• EPS (TTM): -0.08
• Shares Outstanding: 21,742,104
• 10 Day Avg. Volume: 111,240
• 30 Day Avg. Volume: 87,535
• PEG Ratio: 0.06
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.49
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 12.83
• Enterprise Value/Ebitda: -3.74
• 1Y Price Target: $18.00
• Price Target Upside: 214.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $6.00 ▲(4.90% Upside)

The score is primarily held back by weak financial performance (large losses and ongoing cash burn) despite strong revenue growth and a debt-free balance sheet. Earnings-call details add support due to accelerating product traction, extended runway, and reduced expense guidance, but technicals are mixed (short-term rebound vs. longer-term downtrend) and valuation lacks dividend support while losses persist.

Positive Factors

Revenue Growth & Gross Margin

Sharp TTM revenue growth combined with a ~75% gross margin signals improving product-market fit and efficient direct cost structure. If sustained, high gross margins provide leverage to absorb SG&A and R&D, enabling durable operating leverage as volumes scale and commercialization matures.

Debt-Free Balance Sheet

A zero-debt capital structure with meaningful equity and asset cushions materially lowers solvency and interest-rate risk, giving management flexibility to fund R&D and commercial expansion. This financial flexibility extends runway and strategic optionality without immediate leverage constraints.

Commercial Traction in Long-Term Care

Rapid expansion into nearly 3,000 unique homes with 70% repeat ordering demonstrates durable institutional adoption and retention among prescribers. Repeat institutional demand supports a predictable revenue base, aids scale economics, and strengthens negotiating position with payers and distributors over time.

Negative Factors

Negative Cash Flow / Burn

Material negative operating and free cash flows indicate the business is not self-financing and depends on external capital. Continued burn increases dilution and funding risk, constrains discretionary investments in trials and commercialization, and heightens vulnerability to tighter capital markets or execution setbacks.

Large Operating Losses & Negative Returns

Very deep net losses and substantially negative ROE show current operations destroy shareholder capital rather than generate returns. Without clear, sustained revenue scale or structural cost reductions, restoring profitability will take time and execution, keeping long-term returns uncertain for investors.

Limited Payer Coverage

Restricted payer coverage is a structural barrier to broad patient access and revenue scaling. Even with clinical signals and institutional repeat orders, limited reimbursement necessitates prolonged payer negotiations and resource allocation, potentially capping uptake and prolonging funding dependence.

Alpha Cognition Inc Business Overview & Revenue Model

Company Description

Alpha Cognition Inc., a clinical stage biopharmaceutical company, engages in the development of treatments for Alzheimer's disease and amyotrophic lateral sclerosis (ALS). The company offers ZUNVEYL (benzgalantamine) for the treatment of mild-to-moderate Alzheimer's disease and mild traumatic brain injury. It also develops ALPHA-0602, a gene therapy for the treatment of ALS; and ALPHA-0702 and ALPHA-0802, a granulin epithelin motifs for the treatment of neurodegenerative diseases. The company was formerly known as Crystal Bridge Enterprises Inc. and changed its name to Alpha Cognition Inc. in March 2021. Alpha Cognition Inc. was founded in 2000 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Alpha Cognition Inc generates revenue through the development and commercialization of its therapeutic products. The company primarily makes money by advancing its drug candidates through clinical trials and eventually bringing them to market, either independently or through strategic partnerships and collaborations with larger pharmaceutical companies. These partnerships may involve licensing agreements, where Alpha Cognition receives upfront payments, milestone payments based on the achievement of certain development and regulatory goals, and royalties on future sales of the approved products. Additionally, the company may also receive funding from grants or research collaborations aimed at fostering innovation in the neurodegenerative disease space. The successful commercialization of its drug candidates is crucial to the company's revenue generation and growth.

Alpha Cognition Inc Financial Statement Overview

Summary

Alpha Cognition Inc.'s financials depict a company in a typical biotechnology development stage, with no revenue and significant cash consumption for operations. The financial health relies heavily on external financing, raising concerns about sustainability and the need for successful product commercialization. While the cash position is strong due to recent financing, the lack of revenue and increasing losses highlight significant risks.

Income Statement

Alpha Cognition Inc. has consistently reported no revenue over the past five years, indicating a lack of commercialized products or services. The net losses have widened over time, with a significant negative EBIT and EBITDA, reflecting high operating expenses relative to non-existent revenue. This suggests substantial financial pressure and highlights the company's reliance on external funding to support its operations.

Balance Sheet

The company shows a strong cash position with cash and short-term investments significantly exceeding total debt, leading to a negative net debt. However, the equity position has fluctuated, with negative stockholders' equity in some years, indicating potential liquidity concerns and financial instability. The low debt-to-equity ratio in recent years is positive but primarily due to negative equity, which is not favorable for long-term financial health.

Cash Flow

Operating cash flows are negative, reflecting ongoing losses and cash burn typical of biotechnology firms in early stages. However, the company has managed to raise substantial financing, improving its cash position. The absence of positive free cash flow growth underscores the challenges in achieving operational sustainability without continued external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.43M	0.00	0.00	0.00	0.00	0.00
Gross Profit	5.43M	0.00	0.00	0.00	0.00	0.00
EBITDA	-18.62M	-14.37M	-13.62M	-11.85M	-18.93M	-4.93M
Net Income	-19.47M	-14.64M	-13.77M	-12.11M	-19.55M	-5.78M
Balance Sheet
Total Assets	46.30M	50.74M	2.45M	2.95M	12.88M	8.44M
Cash, Cash Equivalents and Short-Term Investments	35.40M	48.55M	1.49M	2.08M	11.30M	5.93M
Total Debt	0.00	911.46K	1.22M	1.21M	1.08M	3.22M
Total Liabilities	12.39M	9.27M	7.16M	4.27M	3.85M	8.42M
Stockholders Equity	33.91M	41.46M	-4.71M	-1.32M	9.03M	16.01K
Cash Flow
Free Cash Flow	-15.98M	-7.78M	-8.73M	-9.25M	-9.94M	-5.45M
Operating Cash Flow	-15.83M	-7.76M	-8.73M	-9.24M	-9.88M	-5.44M
Investing Cash Flow	-173.58K	-26.70K	0.00	-4.88K	459.38K	-9.24K
Financing Cash Flow	47.66M	54.85M	8.16M	24.79K	14.88M	5.88M

Alpha Cognition Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACOG, the sentiment is Negative. The current price of 5.72 is below the 20-day moving average (MA) of 6.13, below the 50-day MA of 5.99, and below the 200-day MA of 7.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACOG.

Alpha Cognition Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACOG	56 Neutral	$124.36M	-4.19	-125.65%	―	―	52.52%
NVCT	54 Neutral	$217.21M	-6.43	-158.88%	―	―	-16.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SGMO	49 Neutral	$135.07M	-0.91	-480.02%	―	-37.13%	40.47%
LUCD	47 Neutral	$158.63M	-1.35	-331.24%	―	5.01%	20.76%
CGTX	44 Neutral	$128.88M	-3.07	-109.73%	―	―	50.39%
ELTX	43 Neutral	$144.29M	-2.43	―	―	―	17.36%