Alzamend Neuro Reports 53% Decrease in Quarterly Net Loss, Advances Clinical Trials

Alzamend Neuro, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending October 31, 2024. The company recorded a net loss of $1.4 million for the three months ended October 31, 2024, a 53% decrease from the $2.9 million loss reported in the same period last year. For the six months ending October 31, 2024, the net loss was $2.4 million, down 64% from $6.4 million in the prior year. The reduction in losses is attributed to a substantial decrease in research and development expenses, which fell by 84% to $311,088 for the quarter, compared to $2 million in the previous year.

The company’s total operating expenses for the quarter were $1.4 million, a 53% decline from $2.9 million in the prior year. This decrease was primarily driven by reduced research and development costs, which were significantly lower due to fewer clinical trial activities. General and administrative expenses increased by 16% to $1 million, largely due to higher salaries and marketing fees. Alzamend did not generate any revenue during the quarter, consistent with its ongoing clinical-stage development focus.

In terms of strategic developments, Alzamend has made notable progress in its clinical trials. The company is advancing its two primary product candidates, AL001 and ALZN002, aimed at treating Alzheimer’s disease and other neuropsychiatric disorders. The company has partnered with Massachusetts General Hospital to conduct five clinical trials for AL001, which is designed to deliver lithium in a novel formulation. Additionally, Alzamend has engaged in financing activities, raising $8.3 million through the sale of Series A Convertible Preferred Stock and common stock during the six months ended October 31, 2024.

Operationally, Alzamend reported a significant increase in cash reserves, ending the quarter with $4.1 million in cash, compared to $376,048 at the end of the previous fiscal period. The company’s working capital stood at $3.5 million, and stockholders’ equity improved to $3.8 million from a deficit of $2.6 million. The total number of shares outstanding as of December 10, 2024, was 5,432,797, reflecting the impact of recent equity financing activities.

Looking ahead, Alzamend anticipates continuing to incur losses as it focuses on advancing its clinical development programs. The company has expressed concerns regarding its ability to sustain operations without additional capital, emphasizing the need for further financing to support its research and development efforts. Management remains optimistic about the potential of its product candidates and is actively pursuing opportunities to raise the necessary funds to continue its operations and clinical trials.