Alzamend Neuro Reports 55% Reduction in Operating Expenses and Net Loss for Fiscal Year Ending April 30, 2025

Alzamend Neuro, Inc. reported a significant reduction in its operating expenses for the fiscal year ending April 30, 2025, with total operating expenses decreasing by 55% to $4.5 million, down from $9.9 million in the previous year. The company’s net loss also narrowed to $4.5 million from $9.9 million, reflecting a 55% improvement. This reduction was primarily driven by a substantial decrease in research and development expenses, which fell by 78% to $1.4 million, compared to $6.5 million in the prior year. The decrease in research and development costs was attributed to lower professional and clinical trial fees as the company streamlined its operations.

In terms of strategic developments, Alzamend has made progress in its clinical trials for its lead product candidates, AL001 and ALZN002. The company completed its Phase IIA clinical trial for AL001 in March 2023 and reported positive topline data in June 2023. AL001 is an ionic cocrystal of lithium aimed at treating Alzheimer’s disease, bipolar disorder, major depressive disorder, and post-traumatic stress disorder. The company has also initiated a partnership with Massachusetts General Hospital to conduct five Phase II imaging clinical trials to assess lithium levels in the brain. Meanwhile, the development of ALZN002, an immunotherapy vaccine for Alzheimer’s, is ongoing, with a Phase I/IIA clinical trial initiated in April 2023.

Alzamend's financial position remains precarious, with cash and cash equivalents totaling $3.9 million as of April 30, 2025. The company has indicated that this amount is insufficient to fund its operations for the next twelve months, necessitating additional capital to support ongoing clinical trials and operational needs. The company has previously raised funds through the sale of convertible preferred stock and at-the-market offerings, but it will need to secure further financing to continue its development activities.

The company currently has a limited operating history and no source of near-term revenue, which raises concerns about its ability to achieve profitability. Alzamend has acknowledged the need for substantial additional funding to complete the development and commercialization of its product candidates. The filing also highlighted a material weakness in internal controls over financial reporting, which the company is working to remediate. Looking ahead, Alzamend anticipates that it will continue to incur losses until it can successfully commercialize its product candidates, which may take several years.