Breaking Down Alzamend Neuro, Inc. (ALZN) Financial Health: Key Insights for Investors

Are you keeping a close watch on Alzamend Neuro, Inc. (ALZN) and wondering about its financial stability? As of October 31, 2024, the company reported a stockholder equity of $3.8 million, a significant turnaround from a stockholder deficit of $2.6 million on April 30, 2024. But what does this mean for its capacity to fund ongoing clinical trials and research? With $4.1 million in cash and total liabilities of $1.3 million by the end of October 2024, compared to $0.4 million and $3.2 million respectively six months prior, can Alzamend maintain this momentum as it aims to initiate five Phase II trials in 2025? Let's delve into the key financial insights that every investor should consider.

Alzamend Neuro, Inc. (ALZN) Revenue Analysis

As a company focused on early-stage pharmaceutical development, Alzamend Neuro, Inc. currently does not generate revenue from product sales. Its financial activities primarily revolve around research and development expenses, as well as general and administrative costs, typical for a biotechnology company in its pre-commercialization phase.

For detailed insights into Alzamend Neuro, Inc.'s financial health, you can refer to this analysis: Breaking Down Alzamend Neuro, Inc. (ALZN) Financial Health: Key Insights for Investors.

Given its developmental stage, understanding the company's revenue streams involves examining potential future revenue sources, which are contingent upon successful clinical trials, regulatory approvals, and eventual commercialization of its drug candidates. Currently, Alzamend Neuro relies on funding through:

• Equity financing: Issuing common stock or other equity instruments to raise capital.
• Debt financing: Taking on loans or issuing bonds.
• Potential partnerships: Collaborating with other pharmaceutical companies for research, development, and commercialization, which could lead to milestone payments or royalties in the future.
• Grants and government funding: Securing grants from governmental or non-profit organizations to support specific research projects.

Since Alzamend Neuro is in the development stage, year-over-year revenue growth rate analysis is not applicable, as there is no consistent revenue stream to measure. Instead, investors monitor the company's cash burn rate (the rate at which it spends its cash reserves) and the runway (how long it can sustain operations with its current funding). These metrics are crucial for assessing the company's ability to continue funding its research and development activities.

As a pre-revenue company, Alzamend Neuro does not have different business segments contributing to overall revenue. The company's focus is entirely on research and development. The absence of current revenue necessitates a strong emphasis on effective cost management and strategic allocation of resources to advance its pipeline of drug candidates.

Changes in potential revenue streams for Alzamend Neuro would primarily be linked to significant advancements in its clinical trials or the establishment of strategic partnerships. For instance, positive Phase 2 clinical trial results for one of its lead compounds could attract interest from larger pharmaceutical companies, potentially leading to a licensing agreement or acquisition. Conversely, failure to meet clinical endpoints or delays in the development timeline could negatively impact the company's prospects and ability to secure future funding.

Alzamend Neuro, Inc. (ALZN) Profitability Metrics

Assessing the financial health of Alzamend Neuro, Inc. (ALZN) requires a detailed look into its profitability metrics. Profitability measures how well a company generates profit from its revenues and invested capital. For Alzamend Neuro, a clinical-stage biopharmaceutical company, these metrics provide insights into its operational efficiency and financial sustainability.

Here's an overview of key profitability aspects:

• Gross Profit: Gross profit is calculated by deducting the cost of goods sold (COGS) from the total revenue. For Alzamend Neuro, the gross profit has been -$51,000 as of 2024.
• Operating Income: In 2024, Alzamend Neuro's operating income was -$9,938,000.
• Net Income: The company's net income for the year 2024 was -$9,948,000. However, there was a growth in net income from a loss of $14.88 million to a smaller loss of $9.95 million.

Alzamend Neuro's gross profit from 2020 to 2024 can be seen in the table below:

Alzamend Neuro has shown efforts in cost management and resource allocation, contributing to financial resilience. Key financial highlights from the second quarter of 2025 include:

• Net cash provided by financing activities of $8.3 million for the six months ended October 31, 2024.
• Stockholder equity of $3.8 million at October 31, 2024, compared to a stockholder deficit of $2.6 million at April 30, 2024.
• Cash of $4.1 million at October 31, 2024, compared to $0.4 million at April 30, 2024.
• Total liabilities of $1.3 million at October 31, 2024, compared to $3.2 million at April 30, 2024.

In the first quarter of 2025, the company reported a net loss of $1.0 million, which is down 26.6% from the previous quarter. For the fiscal year 2024, the annual earnings were reported as -$9.9 million, reflecting a -33.1% growth.

Alzamend Neuro's Mission Statement, Vision, & Core Values of Alzamend Neuro, Inc. (ALZN).reflects their strategic focus on fiscal prudence and effective capital management.

Alzamend Neuro, Inc. (ALZN) Debt vs. Equity Structure

Understanding how Alzamend Neuro, Inc. (ALZN) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing.

As of the fiscal year ended September 30, 2024, Alzamend Neuro, Inc. (ALZN) reported the following debt situation:

• Short-term debt: $0.
• Long-term debt: $0.

This indicates that Alzamend Neuro, Inc. (ALZN) held no short-term or long-term debt as of September 30, 2024. This can be a sign of financial stability. The absence of debt means the company isn't burdened by interest payments or principal repayments, allowing it to allocate more resources to research and development or other operational needs.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. It is calculated by dividing a company’s total liabilities by its shareholder equity. As of September 30, 2024, Alzamend Neuro, Inc. (ALZN) has a debt-to-equity ratio of 0. The debt-to-equity ratio is calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity = $1,769,447 / $14,394,422 = 0.123

Alzamend Neuro, Inc. (ALZN) primarily relies on equity funding. As of September 30, 2024, the company reported total stockholders' equity of $14,394,422. This equity base supports the company's operations and research initiatives.

Here's a summary of Alzamend Neuro, Inc. (ALZN)'s capital structure as of September 30, 2024:

Recent activities, such as stock offerings and warrant exercises, reflect the company's strategy to raise capital through equity rather than debt. These activities dilute existing shareholders but provide the company with the necessary funds to advance its clinical programs and support operations.

To gain more insights into the investors of Alzamend Neuro, Inc. (ALZN), consider reading: Exploring Alzamend Neuro, Inc. (ALZN) Investor Profile: Who’s Buying and Why?

Alzamend Neuro, Inc. (ALZN) Liquidity and Solvency

Here's an analysis of Alzamend Neuro, Inc.'s liquidity position, incorporating the latest available financial data.

Assessing Alzamend Neuro, Inc.'s Liquidity

To assess the company’s liquidity, several key metrics and financial statements need to be examined. These include current and quick ratios, working capital trends, and cash flow statements.

• Cash and Cash Equivalents: As of October 31, 2024, Alzamend's cash and cash equivalents stood at $4.1 million.
• Working Capital: The company's working capital as of the same date was $3.5 million.

Current and Quick Ratios

While specific current and quick ratios were not available in the search results, the provided data allows for a general assessment of Alzamend Neuro, Inc.'s short-term liquidity.

• A healthy current ratio (Current Assets / Current Liabilities) is typically above 1.0, indicating that a company has more current assets than current liabilities.
• The quick ratio ((Current Assets - Inventory) / Current Liabilities) provides a more conservative view by excluding inventory, which may not be easily converted to cash.

Without the specific values for current assets and current liabilities, it's challenging to calculate these ratios directly. However, the reported working capital of $3.5 million suggests a positive, but potentially tight, short-term financial position.

Analysis of Working Capital Trends

Working capital is a measure of a company's short-term liquidity and operational efficiency. It is calculated as Current Assets minus Current Liabilities. Here's what's been happening with Alzamend's working capital:

• Alzamend's cash and cash equivalents as of October 31, 2024, were $4.1 million, with a working capital of $3.5 million.

Cash Flow Statements Overview

An overview of cash flow statements provides insights into how Alzamend Neuro, Inc. generates and uses cash. Key areas to consider include operating, investing, and financing activities.

• Operating Activities: For the nine months ended January 31, 2025, net cash used in operating activities was $5.9 million. This was primarily composed of a net loss of $3.4 million and a decrease in net operating assets and liabilities of $2.8 million, which was partially offset by non-cash charges of $300,000.
• Financing Activities: During the six months ended October 31, 2024, net cash provided by financing activities was $8.3 million, which was obtained through the issuance of Series A Convertible Preferred Stock and common stock sales under an At-the-Market Offering. For the nine months ended January 31, 2025, net cash from financing activities amounted to $8,951,568.

Potential Liquidity Concerns and Strengths

Based on the available information, Alzamend Neuro, Inc. faces both potential liquidity concerns and strengths:

• Concerns:
• Alzamend acknowledges substantial doubt about its ability to continue as a going concern, citing the need for additional capital to fund operations and clinical development activities.
• The company has been experiencing net losses, with a net loss of $1.4 million for the three months ended October 31, 2024.
• Cash used in operating activities was $5.9 million for the nine months ended January 31, 2025, indicating a continuous need for external funding.
• Strengths:
• Alzamend has been proactive in securing financing through the issuance of preferred stock and common stock sales, raising $8.3 million during the six months ended October 31, 2024.
• The company has strengthened its financial foundation, with stockholder equity of $3.8 million as of October 31, 2024, compared to a stockholder deficit of $2.6 million at April 30, 2024.
• Total liabilities have decreased from $3.2 million at April 30, 2024, to $1.3 million at October 31, 2024.

For more detailed insights, you can refer to: Breaking Down Alzamend Neuro, Inc. (ALZN) Financial Health: Key Insights for Investors

Alzamend Neuro, Inc. (ALZN) Valuation Analysis

Determining whether Alzamend Neuro, Inc. (ALZN) is overvalued or undervalued requires analyzing various financial metrics and market data. Key ratios, stock price trends, and analyst opinions provide a comprehensive view of the company's valuation.

Here's an analysis based on available information:

• Price-to-Earnings (P/E) Ratio: Alzamend Neuro currently has a negative P/E ratio because the company is not profitable. A negative P/E ratio generally indicates that the company has negative earnings or net losses.
• Price-to-Book (P/B) Ratio: As of April 2025, Alzamend Neuro's Price-to-Book (P/B) Ratio is approximately 1.9x. This ratio is calculated by dividing the company's market cap ($6.45 million) by its book value ($3.45 million). Compared to its peers, Alzamend Neuro's P/B ratio is high, with the peer average being 0.6x.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Alzamend Neuro's Enterprise Value to EBITDA ratio is -0.7x.

These valuation metrics suggest challenges in traditional valuation due to current losses and limited revenue.

To gain more insights into the company's financials, consider reviewing the Mission Statement, Vision, & Core Values of Alzamend Neuro, Inc. (ALZN).

The closing share price for Alzamend Neuro (ALZN) stock was $0.77 as of April 11, 2025, a 0.36% decrease from the previous day. Over the past year, ALZN is down 91.44%.

Here's a look at the stock price trends:

• Last 30 Days: Up 14.51%.
• Last 12 Months: Down 91.44%.
• 52-Week Range: The stock has traded between $0.64 and $15.06 over the past 52 weeks.

This indicates significant volatility and a downward trend over the past year.

Alzamend Neuro does not currently pay dividends. Therefore, the dividend yield is 0%.

Here's a summary of dividend information:

• Current Dividend Yield: 0.00%.
• Dividend History: Alzamend Neuro has never paid dividends.

Given that the company is focused on research and development, it is not currently distributing profits as dividends.

Based on the ratings of 2 Wall Street analysts, Alzamend Neuro has a consensus rating of 'Moderate Buy'.

Here’s a detailed breakdown of analyst recommendations:

• Strong Buy: 100% of analysts
• Average Price Target: $20.00.
• The average one-year price target for Alzamend Neuro, Inc. is $20.40.

Alzamend Neuro, Inc. (ALZN) Risk Factors

Alzamend Neuro, Inc. (ALZN) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market forces, including industry competition, regulatory changes, and overall market conditions. Understanding these factors is crucial for investors assessing the long-term viability of Alzamend Neuro, Inc. (ALZN).

Here's an overview of some key risks:

• Industry Competition: The biotechnology industry is intensely competitive. Alzamend Neuro, Inc. (ALZN) competes with other companies, including major pharmaceutical firms, that have far greater resources. These competitors may develop and market products that are more effective or less expensive than those being developed by Alzamend Neuro, Inc. (ALZN).
• Regulatory Changes: The development, testing, manufacturing, and marketing of Alzamend Neuro, Inc. (ALZN)'s products are subject to extensive regulation by governmental authorities in the United States and other countries. Changes in these regulations could increase the costs of product development and marketing, which could prevent Alzamend Neuro, Inc. (ALZN) from successfully commercializing its products.
• Market Conditions: Economic downturns or instability in financial markets can impact Alzamend Neuro, Inc. (ALZN)'s ability to raise capital and the willingness of investors to fund biotechnology companies. These conditions can affect the company’s strategic plans and timelines for product development.

Operational, financial, and strategic risks are often detailed in the company's filings. These risks can include:

• Clinical Trial Risks: The success of Alzamend Neuro, Inc. (ALZN) depends heavily on the outcomes of its clinical trials. Unfavorable or inconclusive results can delay or halt the development process, leading to significant financial losses.
• Financing Risks: As a development-stage company, Alzamend Neuro, Inc. (ALZN) requires substantial capital to fund its operations. The inability to secure additional funding through equity offerings, debt financing, or other sources could force the company to delay, reduce, or eliminate its product development programs.
• Intellectual Property Risks: Protecting its intellectual property is critical for Alzamend Neuro, Inc. (ALZN). Challenges to its patent rights or the failure to obtain and maintain adequate patent protection could limit its ability to commercialize its products and maintain a competitive advantage.

Mitigation strategies and plans, if available, may include:

• Diversification of Pipeline: Developing multiple product candidates to reduce the risk associated with the failure of any single product.
• Strategic Partnerships: Collaborating with other companies to share development costs and risks.
• Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies to anticipate and address potential challenges.

For further insights into Alzamend Neuro, Inc. (ALZN)'s mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of Alzamend Neuro, Inc. (ALZN).

Alzamend Neuro, Inc. (ALZN) Growth Opportunities

Alzamend Neuro, Inc. (ALZN) is a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of neurodegenerative diseases and psychiatric disorders. Evaluating its future growth prospects requires an understanding of its pipeline, market dynamics, and strategic initiatives.

Key growth drivers for Alzamend Neuro, Inc. (ALZN) include:

• Product Innovations: The company's pipeline focuses on treatments for Alzheimer's disease, bipolar disorder, and other neurodegenerative conditions.
• Market Expansions: Successful clinical trials and regulatory approvals could lead to significant market expansion opportunities.
• Strategic Partnerships: Collaborations with other pharmaceutical companies or research institutions could accelerate development and commercialization efforts.

While specific future revenue growth projections and earnings estimates for Alzamend Neuro, Inc. (ALZN) are not readily available, several factors can influence its potential growth trajectory:

Alzamend Neuro, Inc. (ALZN) is banking on strategic initiatives to propel future growth:

• AL001: This is a patented ionic cocrystal technology of lithium orotate.
• AL002: This is a potential treatment for Alzheimer's disease; it is an immunotherapy designed to modify the progression of the disease.

These initiatives are aimed at addressing unmet needs in the treatment of neurodegenerative diseases and psychiatric disorders.

Alzamend Neuro, Inc. (ALZN) possesses certain competitive advantages that could position it for growth:

• Novel Technologies: The company's patented technologies and unique formulations may offer advantages over existing treatments.
• Experienced Management Team: A strong leadership team with experience in drug development and commercialization can increase the likelihood of success.
• Focus on Unmet Needs: By targeting diseases with limited treatment options, Alzamend Neuro, Inc. (ALZN) can capture a significant market share if its products are approved.

For additional insights into Alzamend Neuro, Inc. (ALZN)'s financial health, you can refer to: Breaking Down Alzamend Neuro, Inc. (ALZN) Financial Health: Key Insights for Investors