As of December 31, 2021, cash and equivalents totaled $11.3 million. This amount compares to a $5.9 million at the end of December 2020. In terms of debt, Alpha Cognition carries a promissory note issued in March 2015 to Neurodyn Life Sciences for the acquisition of Alpha-1062 held on the balance sheet at $1.1 million. Cash used in operations for 2021 was ($9.9) million compared with cash used of ($14.7) million in 2020. Financing cash flows totaled $14.9 million, bolstered by funds generated by share issuances and warrant exercises, partially offset by share issuance costs and interest paid on promissory notes.

Alpha-1062 is being investigated in mild traumatic brain injury and is at a preclinical stage of development. According to the Management of Concussion and Mild Traumatic Brain Injury 2020 data, three million individuals are affected by this condition in the United States annually. In contrast to the oral form administered for AD, Alpha-1062 for mTBI will be administered using a nasal spray. A mammal model is being investigated to determine neurobehavioral and cognitive improvement of drug treatment, as compared to injured without treatment and uninjured cohorts in a three-arm study. In December, results of the neurobehavioral and cognitive improvement were released and demonstrated a statistically significant improvement in treated animals over their untreated counterparts. Furthermore, results for treated injured animals obtained results equal with uninjured animals in four of five neuro-behavioral primary endpoints. Additional histology work was discussed in a press release and analyst call and will be presented at an upcoming conference. Results showed a dramatic benefit from Alpha-1062 where sufficient brain tissue was saved in treated animals compared with vehicle. All IND-necessary studies have been completed and next steps are to meet with the FDA which is expected to occur in the latter part of 2Q:22. If the IND is cleared by the FDA, the mTBI program could advance immediately to a Phase II study.

On March 29, 2022, Alpha Cognition announced positive preclinical data for its progranulin program designated Alpha-0602 for the treatment of ALS. The study evaluating Alpha-0602 demonstrated "abundant" progranulin expression in motor neurons and decreased motor neuron cell death when observed in in vitro models. When evaluating in vivo models response to Alpha-0602, the candidate reversed the motor neuron toxicity resulting from suboptimal levels of TDP-43 and Fused-In-Sarcoma (FUS). In an ALS mouse model, Alpha-0602 was delivered using an adeno-associated virus (AAV) vector, was successfully transduced into the central nervous system (CNS) cells and was successful in increasing the cerebrospinal fluid (CSF) levels of progranulin. During the treatment period, the mice gained weight throughout the 10-week study in contrast to the untreated animals which did not. Study investigators employ weight gain as a proxy for therapeutic benefit of Alpha-0602.

On April 12, 2022, Alpha Cognition filed a press release stating that it had replaced its contract Chief Financial Officer Jeremy Wright with permanent CFO Don Kalkofen. Mr. Kalkofen was previously CFO of Protagonist Therapeutics (NASDAQ:PTGX). He received his B.A. in accounting from Washington State University and is a CPA and Certified Global Management accountant. The press release went on to announce that Michael McFadden, the company's CEO, was appointed to the Board of Directors.

On March 7^th, 2022, we initiated coverage on Alpha Cognition. In the report we provide a review of AD, its prevalence, death rate relative to other common diseases and economic impact. We then shift towards other aspects of the disease including its etiology, diagnosis and the mechanism behind neurotransmission which are key to understanding galantamine's mechanism of action. A review of other products approved for AD is provided including several in development. Alpha Cognition's 505(b)(2) pathway to approval is also described. Following this background, we introduce Alpha-1062, providing the history behind the drug, its mechanism of action, most common side effects and observed benefits as promulgated in a broad spectrum of clinical research. Our report then moves on to a short description of the other programs in the company's portfolio. The following sections discuss Alpha Cognition's intellectual property rights and patents and provide a financial and operational review of the company including upcoming milestones and introduce management. Risks to the company are highlighted along with a summary of peers and competitors and their market size. We complete our review with a detailed discussion of our assumptions behind the company's valuation.

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