Cognition Therapeutics Q3 2024 Update

TL;DR

CGTX Q3 assets $32.1M, liabilities $4.0M. Equity financing continues.

AI Summary

Cognition Therapeutics Inc. filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $32,165,478 and total liabilities of $4,080,609. The filing details various financing activities, including an "At Market" offering and an "Equity Line Financing" during the reporting period and prior quarters.

Why It Matters

This filing provides insight into Cognition Therapeutics' financial health and ongoing funding strategies, crucial for investors assessing the company's ability to fund its research and development efforts.

Risk Assessment

Risk Level: medium — The company is in the biotechnology sector, which is inherently high-risk due to the long and uncertain drug development process and regulatory hurdles.

Key Numbers

• $32.1M — Total Assets (As of September 30, 2024)
• $4.0M — Total Liabilities (As of September 30, 2024)

Key Players & Entities

• COGNITION THERAPEUTICS INC (company) — Filer
• 2024-09-30 (date) — Period of Report
• $32,165,478 (dollar_amount) — Total Assets
• $4,080,609 (dollar_amount) — Total Liabilities
• 2024-07-01 (date) — Start of Q3 2024
• 2024-09-30 (date) — End of Q3 2024

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CGTX The Nasdaq Stock Mar

Filing Documents

• cgtx-20240930x10q.htm (10-Q) — 1337KB
• cgtx-20240930xex31d1.htm (EX-31.1) — 16KB
• cgtx-20240930xex31d2.htm (EX-31.2) — 17KB
• cgtx-20240930xex32d1.htm (EX-32.1) — 10KB
• cgtx-20240930xex32d2.htm (EX-32.2) — 10KB
• 0001558370-24-015436.txt ( ) — 5392KB
• cgtx-20240930.xsd (EX-101.SCH) — 34KB
• cgtx-20240930_cal.xml (EX-101.CAL) — 38KB
• cgtx-20240930_def.xml (EX-101.DEF) — 137KB
• cgtx-20240930_lab.xml (EX-101.LAB) — 354KB
• cgtx-20240930_pre.xml (EX-101.PRE) — 259KB
• cgtx-20240930x10q_htm.xml (XML) — 768KB

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited) 7 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited) 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34 Part II. Other Information 35 Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 3. Defaults Upon Senior Securities 36 Item 4. Mine Safety Disclosures 36 Item 5. Other Information 36 Item 6. Exhibits 37

Signatures

Signatures 38 2 Table of Contents Cautionary Note on Forward-Looking Statements This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements concerning our business, operations and financial performance, as well as our plans, objectives and expectations for our business operations and financial performance and condition. All statements other than statements of historical or current facts included in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "design," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "positioned," "potential," "predict," "seek," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. In addition, statements that "we believe" or similar statements reflect our beliefs and opinions on the relevant subject. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in, or implied by these, forward-looking statements and therefore, you should not unduly rely on such statements, including, but not limited to: our ability to raise additional capital to fund our operations and continue the development of our current and future product candidates; our ability to continue as a going concern for the next twelve months; our ability to maintain the listing of our common stock on the Nasdaq Global Market; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; the clinical nature of our business and our ability to successfully and in a timely manner advance our current and future product candidates through our ongoing and future clinical trials, preclinic

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements COGNITION THERAPEUTICS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share amounts) As of September 30, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 22,011 $ 29,922 Grant receivables 3,369 1,281 Prepaid expenses and other current assets 1,450 3,019 Total current assets 26,830 34,222 Property and equipment, net 207 284 Right-of-use assets, operating leases 542 657 Total assets $ 27,579 $ 35,163 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,895 $ 3,695 Accrued expenses 9,505 4,055 Deferred grant income, current 1,117 1,701 Operating lease liabilities, current 188 174 Other current liabilities — 544 Total current liabilities 12,705 10,169 Operating lease liabilities, non-current 392 520 Total liabilities 13,097 10,689 Commitments and contingencies (Note 6) Stockholders' equity: Preferred stock, $ 0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value, 250,000,000 shares authorized; 40,806,092 and 32,165,478 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 41 32 Additional paid-in capital 181,759 165,826 Accumulated deficit ( 167,318 ) ( 141,189 ) Accumulated other comprehensive loss — ( 195 ) Total stockholders' equity 14,482 24,474 Total liabilities and stockholders' equity $ 27,579 $ 35,163 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents COGNITION THERAPEUTICS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (in thousands, except share and per share amounts) 1. Description of Business and Financial Condition Cognition Therapeutics, Inc. (the "Company") was incorporated as a Delaware corporation on August 21, 2007. The Company is a biopharmaceutical company developing disease modifying therapies targeting age-related degenerative diseases and disorders of the central nervous system ("CNS") and retina. The Company's pipeline candidates were discovered using proprietary biology and chemistry platforms designed to identify novel drug targets and disease-modifying therapies that address dysregulated pathways specifically associated with neurodegenerative diseases. The Company was founded on the unique combination of biological expertise around these targets, including proprietary assays that emphasize functional responses, and proprietary medicinal chemistry intended to produce novel, high-quality small-molecule drug candidates. In January 2024, the Company ceased operations at Cognition Therapeutics PTY LTD, a wholly owned subsidiary (the "Subsidiary") and completed its liquidation of the Subsidiary (the "Liquidation"). In accordance with the Liquidation, the Company removed the AOCI balance associated with the currency translation adjustments and recorded a loss on liquidation of the Subsidiary in accumulated deficit. On December 23, 2022, the Company filed a Registration Statement on Form S-3 (File No. 333-268992) (the "Shelf") with the Securities and Exchange Commission ("SEC") in relation to the registration of common stock, preferred stock, debt securities, warrants, subscription rights, and/or units of any combination thereof of up to $ 200,000 in aggregate. The Shelf was declared effective on January 3, 2023 by the SEC. The Company also simultaneously entered into a sales agreement with Cantor Fitzgerald & Co. and B. Riley Securities, Inc. (the "Sales Agents") providing for the offering, issuance and sa

View Full Filing

View this 10-Q filing on SEC EDGAR