Alpha Cognition Inc (ACOG) AI Stock Analysis

• Market Cap: $122.90M
• Dividend Yield: N/A
• Average Volume (3M): 110.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: 53.49%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Financial - Conglomerates
• EPS (TTM): -0.65
• Shares Outstanding: 20,902,103
• 10 Day Avg. Volume: 118,269
• 30 Day Avg. Volume: 110,534
• 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: 0.90
• Enterprise Value/Revenue: 23.99
• Enterprise Value/Gross Profit: 34.65
• Enterprise Value/Ebitda: -7.29
• 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: 38 Underperform
• Price Target: ―

Alpha Cognition Inc. faces significant financial challenges with no revenue and increasing losses, heavily relying on external funding. While technical indicators are mixed, the recent earnings call provided a positive outlook with strategic initiatives in place. However, the negative valuation metrics and high operational risks weigh heavily on the stock's overall assessment.

Positive Factors

Strong Cash Position

A strong cash position provides Alpha Cognition with the financial flexibility to support ongoing R&D and commercialization efforts, crucial for a biotech firm in the development stage.

Intellectual Property Expansion

Extending patent protection enhances Alpha Cognition's competitive advantage, ensuring market exclusivity and potentially higher future revenue streams.

Strategic Partnerships

Partnerships with established firms like CMS Pharmaceuticals can accelerate market entry and expand geographical reach, crucial for long-term growth and revenue diversification.

Negative Factors

No Revenue Generation

The absence of revenue highlights the company's reliance on external funding and underscores the risk associated with its unproven commercial strategy.

Increasing Operating Losses

Rising operating losses indicate growing financial pressure, which could strain resources and delay reaching profitability, impacting long-term viability.

High Cash Burn Rate

A high cash burn rate necessitates continuous external funding, posing a risk to sustainability if capital markets become less favorable.

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	4.59M	0.00	0.00	0.00	0.00	0.00
Gross Profit	3.18M	-81.22K	0.00	0.00	0.00	0.00
EBITDA	-15.09M	-14.45M	-13.62M	-11.85M	-18.93M	-4.93M
Net Income	-20.01M	-14.64M	-13.77M	-12.11M	-19.55M	-5.78M
Balance Sheet
Total Assets	45.12M	50.74M	2.45M	2.95M	12.88M	8.44M
Cash, Cash Equivalents and Short-Term Investments	39.41M	48.55M	1.40M	2.08M	11.30M	5.93M
Total Debt	0.00	911.46K	1.22M	1.21M	1.08M	3.22M
Total Liabilities	13.23M	9.27M	7.16M	4.27M	3.85M	8.42M
Stockholders Equity	31.90M	41.46M	-4.71M	-1.32M	9.03M	16.01K
Cash Flow
Free Cash Flow	-12.14M	-7.78M	-8.73M	-9.25M	-9.94M	-5.45M
Operating Cash Flow	-12.07M	-7.76M	-8.73M	-9.24M	-9.88M	-5.44M
Investing Cash Flow	-98.29K	-26.70K	0.00	-4.88K	459.38K	-9.24K
Financing Cash Flow	50.43M	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: Positive
• STOCH: Neutral

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 6.54, below the 50-day MA of 7.52, and below the 200-day MA of 7.48, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 29.97 is Positive, neither overbought nor oversold. The STOCH value of 33.38 is Neutral, 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUCD	48 Neutral	$149.58M	―	-463.56%	―	14.74%	14.63%
NVCT	48 Neutral	$144.72M	―	-158.88%	―	―	-16.26%
SGMO	45 Neutral	$165.97M	―	-480.02%	―	-37.13%	40.47%
CGTX	41 Neutral	$138.51M	-2.39	-109.73%	―	―	50.39%
ACOG	38 Underperform	$122.90M	―	-131.23%	―	―	53.49%
ELTX	30 Underperform	$149.50M	-2.19	-9999.00%	―	―	-4.60%