EPS of $-1.28 decreased by 3.2% from previous year
Net income of -2.70M
"N/A" - N/A
Alzamend Neuro Inc (ALZN) QQ1 2026 Results Analysis: No Revenue Drive, Ongoing R&D Burn, and Pipeline Beginnings in Phase II (Biotechnology / Healthcare)
Executive Summary
Alzamend Neuro Inc (ALZN) reported a non-revenue QQ1 2026 quarter characterized by significant operating expenses and a material net loss of $2.70 million, or -$1.28 per share. R&D expenditure totaled $1.74 million and general and administrative costs were $0.96 million, driving total operating expenses of $2.70 million and an EBITDA of -$2.70 million. The company continues to fund its early-stage pipeline—AL001 in Phase II and AL002 in preclinical stages—primarily through external financing, as evidenced by a net cash inflow from financing activities of $4.04 million and a net cash increase of $1.67 million for the period, ending with cash of $5.62 million. Operating cash flow remained negative at $-2.36 million, highlighting a cash burn profile typical of pre-revenue biotech companies. Management commentary (where available) centers on pipeline advancement and the financing pathway needed to sustain R&D investments amid no material revenue generation.
Near-term liquidity remains contingent on continued external funding and successful execution of pipeline milestones. Absent a clear revenue ramp or licensing collaboration, the company’s valuation hinges on the probability of AL001 achieving meaningful clinical signals in Phase II and subsequent development milestones. Investors should monitor the cadence of trial progress, potential partnership discussions, and any capital-raising activity that would affect ownership and dilution.
Key Performance Indicators
Operating Income
-2.70M
QoQ: -160.39% | YoY:-217.65%
Net Income
-2.70M
QoQ: -160.12% | YoY:-217.39%
EPS
-1.28
QoQ: -573.68% | YoY:-3.23%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 0 (No revenue reported in QQ1 2026)
Operating Income: -$2.70 million, YoY decline of -217.65% and QoQ decline of -160.39% (per earnings metrics)
Net Income: -$2.70 million, YoY decline of -217.39% and QoQ decline of -160.12% (per earnings metrics)
R&D Expenses: $1.74 million; G&A Expenses: $0.96 million; Total Operating Expenses: $2.70 million
Financial Highlights
- Revenue: 0 (No revenue reported in QQ1 2026)
- Operating Income: -$2.70 million, YoY decline of -217.65% and QoQ decline of -160.39% (per earnings metrics)
- Net Income: -$2.70 million, YoY decline of -217.39% and QoQ decline of -160.12% (per earnings metrics)
- EPS: -$1.28, YoY change -3.23%, QoQ change -573.68%
- R&D Expenses: $1.74 million; G&A Expenses: $0.96 million; Total Operating Expenses: $2.70 million
- EBITDA: -$2.70 million; EBIT: -$2.70 million
- Cash Flow: Operating cash flow -$2.36 million; Net change in cash +$1.67 million; Cash at end of period $5.62 million; Cash at beginning of period $3.95 million
- Financing: Common stock issued $4.04 million; Net cash provided by financing activities $4.04 million
- Balance Sheet: Total assets $6.33 million; Total current assets $5.93 million; Total current liabilities $0.98 million; Total stockholders’ equity $5.34 million; Retained earnings -$61.24 million; Cash and cash equivalents $5.62 million; Net debt = -$5.62 million (net cash)
- Shares outstanding: 2.11 million (weighted average)
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-2.70M
-217.65%
-160.39%
Net Income
-2.70M
-217.39%
-160.12%
EPS
-1.28
-3.23%
-573.68%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript was provided in the data set for QQ1 2026. Consequently, direct management quotes or themes from an audio webcast are not available in this dataset. Expected themes from biotech management in this space typically include pipeline progress updates (AL001 Phase II, AL002 preclinical), fundraising strategy, and cost-control measures. In the absence of a transcript, the highlights below reflect the quantitative results and standard expectations for a pre-revenue biotech:
- Pipeline emphasis: AL001 Phase II progress and potential AL002 milestones remain central to value realization.
- Funding and liquidity: R&D-driven burn requires ongoing capital raises or partnerships to extend runway.
- Operating discipline: Continued emphasis on cost containment and prioritization of high-value experiments.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was disclosed in the QQ1 2026 filing. Given the pre-revenue status and the Phase II focus on AL001, near-term guidance is likely to be contingent on trial milestones and potential collaboration discussions rather than revenue targets. Our assessment: the achievability of a meaningful near-term revenue or milestone-driven cash inflow is uncertain and heavily dependent on clinical data readouts and the company’s ability to secure partnering options. Investors should monitor: (a) AL001 Phase II enrollment and interim results (if disclosed), (b) any licensing or collaboration discussions that could provide non-dilutive or dilutive funding, and (c) additional equity or debt financing plans if runways tighten. Key factors to watch include trial readouts, regulatory interactions, and the pace of fundraising activity that could impact share count and ownership.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
SYBX
0.00%
0.00%
2.42%
12.01%
EFTR
0.00%
0.00%
-10.68%
-1.81%
GRTX
0.00%
0.00%
1.10%
-46.40%
ACIU
1.00%
-19.57%
-20.10%
-2.18%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given ALZN’s QQ1 2026 results, the near-term investment outlook is cautious. The company reports meaningful operating losses and no revenue, consistent with a biotech in the early clinical stage. The primary driver of equity value remains the potential success of AL001 in Phase II and the ability to secure strategic partnerships or financing to extend the runway. Current liquidity (~$5.62M) and a quarterly operating burn of approximately $2.36M imply a limited run way absent additional funding, given that net cash provided by financing activities was $4.04M during the period, supporting a net cash increase of $1.67M for the quarter. Future upside hinges on positive clinical readouts, partnership discussions, and timely capital-raising that minimizes excessive dilution.
Investment thesis: Neutral-to-cautious. If AL001 demonstrates compelling efficacy signals in Phase II and the company can enter into a meaningful collaboration or secure a financing arrangement with favorable terms, upside exists. However, the recurrent absence of revenue, high cash burn, and the need for ongoing funding imply substantial execution risk. Investors should prioritize milestones related to AL001, potential partnership announcements, and any updates on fundraising strategy. In the absence of tangible catalysts, the stock remains highly speculative with a high sensitivity to capital markets and clinical outcomes.
Key Investment Factors
Growth Potential
Pipeline optionality with AL001 in Phase II; potential upside from AL001 efficacy signals enabling partnerships or licensing deals; early-stage biotech investors often gain leverage from successful trial milestones and strategic collaborations.
Profitability Risk
High clinical and regulatory risk typical of pre-revenue biopharma; dependence on external financing to fund ongoing R&D; potential dilution from future equity issuances; no revenue visibility in QQ1 2026; competitive landscape in neurodegenerative targets.
Financial Position
Low/liquidity-constrained balance sheet emphasizing cash runway risk; negative retained earnings; cash burn of approximately $2.36M per quarter; reliance on financing activities to fund operations; current cash and recent financing provide limited runway without additional funding.
SWOT Analysis
Strengths
Early-stage biotechnology company with AL001 in Phase II; a diversified pipeline including AL002 in preclinical stages; cash runway supported by recent financing (net cash provided by financing activities: $4.04M).
Experienced management team and a focused R&D strategy aligned to neurodegenerative and psychiatric disorders.
No near-term revenue dependency reduces pressure from short-term top-line performance and allows continued investment in high-potential science.
Weaknesses
No reported revenue in QQ1 2026; significant quarterly net losses (-$2.70M) and negative EBITDA.
Small capitalization with a modest cash balance (~$5.62M) and reliance on equity financing; heavy reliance on future funding to sustain operations.
Negative retained earnings (~$61.24M), indicating accumulated losses and potential dilution risk for existing shareholders.
Opportunities
AL001 Phase II results could unlock value through licensing deals or strategic partnerships; potential expansion of the ALN pipeline or new neurodegenerative targets.
Strategic collaborations could provide non-dilutive or dilutive funding and extend the company’s clinical development timeline beyond QQ1 2026.
Advances in AI-guided trial design or biomarker strategies in neurodegenerative diseases could improve trial efficiency and attract partners.
Threats
Clinical development risk and potential trial delays or negative readouts; ongoing need for fundraising to sustain operations increases equity dilution risk.
Competitive biotech landscape with other companies pursuing similar neurodegenerative targets; faster-moving peers or those with revenue-generating products could crowd out investor attention.
Macro funding conditions and capital market volatility could limit access to capital or increase the cost of capital for a small-cap, pre-revenue biotech.