Alzamend Neuro Inc (ALZN) reported a Q1 2025 nett loss of $0.974 million with no disclosed revenue in the period, underscoring the company’s ongoing transition from a developmental-stage biotech to a revenue-generation timeline dominated by clinical milestones rather than near-term sales. The quarter shows a controlled but meaningful burn driven mainly by research and development and general & administrative expenses, coupled with a modest EBITDA deterioration that remains negative at approximately $(0.95) million. Cash burn from operations stood at roughly $(1.06) million, while financing activity provided an inflow of about $1.96 million from common stock issuances, resulting in ending cash of $1.19 million. The balance sheet remains fragile: total assets of about $1.67 million against liabilities of $2.88 million and negative stockholders’ equity of approximately $(1.21) million, with liquidity ratios placing ALZN in a precarious near-term liquidity position (current/quick ratio ~0.49; cash ratio ~0.41).
From a strategic perspective, ALZN continues to advance AL001 (Phase II) and AL002 (preclinical), but the lack of revenue and the dependence on ongoing capital raises heighten earnings risk until pivotal clinical data are disclosed or strategic partnerships are formed. Management commentary from the earnings call is not included in the dataset, so the narrative is reconstructed from the 10-Q figures and company filings. The investment implication remains a high‑risk, high‑potential story: milestones around AL001 readouts or licensing partnerships could unlock significant upside, but financing-dependent liquidity creates substantial dilution risk and near-term uncertainty.
Key Performance Indicators
Operating Income
-962.00K
QoQ: -13.17% | YoY:72.72%
Net Income
-974.00K
QoQ: -14.38% | YoY:72.39%
EPS
-1.25
QoQ: -0.81% | YoY:76.77%
Revenue Trend
Margin Analysis
Key Insights
Operating Income YoY: +72.72%; QoQ: -13.17%
Net Income YoY: +72.39%; QoQ: -14.38%
EPS YoY: +76.77%; QoQ: -0.81%
Financial Highlights
Revenue: Not disclosed in QQ1 2025 (null). Gross Profit: $(12,685); Gross Profit Margin: not applicable. Operating Expenses: $(962,405) (R&D: $(206,571); G&A: $(755,834)); EBITDA: $(950,000); Operating Income: $(962,000); Net Income: $(974,000); EPS: $(1.25); Weighted Avg Shares Out: 777,821.
Key YoY/QoQ metrics (from reported metrics):
- Operating Income YoY: +72.72%; QoQ: -13.17%
- Net Income YoY: +72.39%; QoQ: -14.38%
- EPS YoY: +76.77%; QoQ: -0.81%
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-12.69K
0.00%
0.00%
Operating Income
-962.00K
72.72%
-13.17%
Net Income
-974.00K
72.39%
-14.38%
EPS
-1.25
76.77%
-0.81%
Key Financial Ratios
currentRatio
0.49
returnOnAssets
-58.4%
returnOnEquity
80.4%
operatingCashFlowPerShare
$-0.27
freeCashFlowPerShare
$-0.3
priceToBookRatio
-103.07
priceEarningsRatio
-32.06
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Notes: The earnings transcript is not provided in the dataset. Consequently, no direct management quotes could be extracted. The analysis relies on the 10-Q/filings for management commentary themes to monitor in future calls. Expected themes for ALZN going forward include pipeline updates on AL001 Phase II outcomes, exploratory talks around AL002 preclinical progress, and the company’s capital strategy to sustain operations amid clinical development timelines. Investors should monitor any guidance around milestone-driven milestones, potential licensing deals, and updated burn guidance.
N/A
— N/A
N/A
— N/A
Forward Guidance
There is no formal forward guidance disclosed for QQ1 2025 in the provided materials. Given the company’s pre-revenue status and burn profile, near-term catalysts are likely to arise from: (1) AL001 Phase II readouts or top-line data releases, (2) updates on AL001 expansion or new indications, (3) potential licensing or partnership discussions, and (4) any equity financings that extend runway. Our qualitative assessment suggests a fragile liquidity runway absent additional financing or material data-driven milestones. Achievability of any forward targets will hinge on successful trial outcomes and the company’s ability to secure strategic collaborations to de-risk development and fund ongoing trials. Key factors to monitor: upcoming clinical milestones, regulatory interactions related to AL001/AL002, and ongoing capital-raising activity to sustain operations into 2026.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ALZN Focus
0.00%
0.00%
80.40%
-32.06%
SYBX
-160.88%
-1,319.50%
-2.37%
-16.90%
EFTR
0.00%
0.00%
-10.68%
-1.81%
GRTX
0.00%
0.00%
3.25%
-51.60%
ACIU
0.00%
0.00%
-12.30%
-3.43%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
ALZN presents a high-risk, high-reward investment proposition. The near-term thesis hinges on pipeline milestones for AL001 and potential partnership deals to stabilize liquidity. If AL001 delivers favorable Phase II data and a partner is secured at acceptable terms, the stock could re-rate on the back of reduced dilution risk and a clearer path to revenue. Absent transformative clinical data or a capital-raising breakthrough, the company’s liquidity runway remains precarious, and continued losses and negative equity weigh on long-term upside. Investors should consider the probability-weighted outcomes around clinical efficacy, regulatory clearance, and financing scenarios when formulating a position.
Key Investment Factors
Growth Potential
Clinical-stage biotech with AL001 in Phase II offers potential multi-indication applicability (Alzheimer's, PTSD, MDD, etc.). A successful Phase II readout or expanded indications could unlock licensing licenses or partnership opportunities, potentially accelerating revenue generation.
Profitability Risk
No revenue in QQ1 2025; significant cash burn and reliance on equity financing; negative shareholders’ equity; high dilution risk to fund ongoing development; regulatory and clinical trial risk associated with AL001/AL002; market competition in neurodegenerative therapies.
Financial Position
Liquidity is tight: cash and cash equivalents ~$1.19M; total current assets ~$1.42M vs total current liabilities ~$2.88M; negative total stockholders’ equity (~$-1.21M); cumulative deficit (~$-54.99M); burn from operations ~$1.06M per quarter; financing inflow ~$1.96M from common stock issuance; current ratios ~0.49; cash burn implies a near-term run rate requiring further financing to reach key clinical milestones.
SWOT Analysis
Strengths
ALZ001 Phase II program progress could validate neurodegenerative/psychiatric indications and enable partnerships.
A diversified preclinical AL002 platform exploring immunotherapeutic approaches may offer a longer-term value tail.
Weaknesses
No reported revenue in QQ1 2025; persistent net losses and negative equity; small cash runway (~$1.19M) raising meaningful dilution risk; dependency on successful fundraising to sustain operations.
Opportunities
Potential licensing deals or collaborations around AL001 readouts; expansion into additional neurodegenerative targets; potential strategic partnerships to de-risk development and improve capital efficiency.
Threats
Clinical trial risk and potential failure or delay of AL001 Phase II; competitive biotech landscape with other Alzheimer’s/neurology programs; dilution-driven equity risk; regulatory hurdles and reimbursement uncertainty in CNS disorders.