CGTXHIGH SIGNALFINANCIAL10-K

CGTX removed going concern language while significantly strengthening its balance sheet through what appears to be a substantial equity raise that increased outstanding shares by 44% and boosted cash reserves.

The removal of "substantial doubt about our ability to continue as a going concern" language combined with the 44% increase in outstanding shares (from 62M to 89M shares) indicates CGTX completed a significant equity financing that has materially improved its financial position. The company appears to have successfully addressed its liquidity concerns and extended its operational runway.

Comparing 2026-03-26 vs 2025-03-20View on EDGAR →
FINANCIAL ANALYSIS

CGTX's financials show a dramatic turnaround driven by what appears to be a successful equity raise, with stockholders' equity surging 83% to $34.3M and cash increasing 47% to $36.8M despite ongoing operations. The company improved its cash burn rate with operating cash flow improving 14% to -$24.6M and net losses decreasing 31% to -$23.5M, suggesting better expense management. Combined with the removal of going concern language, these metrics indicate CGTX has successfully strengthened its balance sheet and extended its operational runway, though dilution from the 44% share count increase will impact existing shareholders.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-97.3%
$147K→$4K

Capex reduced 97.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Stockholders Equity
Balance Sheet
+82.8%
$18.8M→$34.3M

Equity base grew 82.8% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+62.4%
$29.6M→$48.0M

Current assets grew 62.4% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+60.1%
$30.2M→$48.4M

Asset base grew 60.1% — expansion through organic growth, acquisitions, or capital deployment.

Cash & Equivalents
Balance Sheet
+47.2%
$25.0M→$36.8M

Cash position surged 47.2% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
+30.9%
-$34.0M→-$23.5M

Net income grew 30.9% — bottom-line growth signals improving overall business health.

Current Liabilities
Balance Sheet
+25%
$11.1M→$13.9M

Current liabilities rose 25% — increased short-term obligations, watch current ratio.

Total Liabilities
Balance Sheet
+22.9%
$11.5M→$14.1M

Liabilities increased 22.9% — monitor debt-to-equity ratio and interest coverage.

Operating Cash Flow
Cash Flow
+13.6%
-$28.5M→-$24.6M

Operating cash flow grew 13.6% — strong conversion of earnings to cash, healthy business fundamentals.

Operating Income
P&L
+11.4%
-$54.0M→-$47.8M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

LANGUAGE CHANGES
NEW — 2026-03-26
PRIOR — 2025-03-20
ADDED
The number of outstanding shares of the Registrant s Common Stock as of March 20, 2026, was 89,353,773 .
The Company s initial focus was on the development of zervimesine for the treatment of AD.
Top-line results from the Company s Phase 2 COG0201 (SHINE) study of zervimesine in mild-to-moderate AD were reported in 2024.
As of October 15, 2025, approximately 782 subjects have received zervimesine in our clinical trials, including people with AD, DLB and dry age-related macular degeneration, or AMD.
Based on proteomic evidence generated from the Company s clinical programs in Alzheimer s disease and supported by in vitro findings, the company initiated the Phase 2 COG2201 (MAGNIFY) clinical study of zervimesine for the treatment of geographic atrophy secondary to dry AMD.
Based on favorable results from the AD and DLB programs, and a desire to conserve company resources, the MAGNIFY study was voluntarily concluded in January 2025 after approximately 100 participants were enrolled.
Based on the FDA s feedback and the strength of its Phase 2 results, the company plans to develop zervimesine for DLB psychosis.
Cognition is planning to meet with the FDA Division of Psychiatry to discuss a DLB psychosis program and align on study design.
In December 2025, the last participant was enrolled in the COG0203 (START) Phase 2 study of zervimesine in patients with MCI and early-stage AD.
Topline results are expected after all participants have completed 18 months of treatment.
REMOVED
The number of outstanding shares of the Registrant s Common Stock as of March 17, 2025, was 61,972,946 .
presidential administration, inflation, tariffs, or uncertainty caused by political violence and unrest, including ongoing global and regional conflicts; developments relating to our competitors and our industry; and other risk and uncertainties, including those described in Item 1A Risk Factors in this Annual Report.
There is substantial doubt about our ability to continue as a going concern.
Concentration of our capital stock ownership with our directors and their affiliated entities and our executive officers will limit stockholders abilities to influence certain corporate matters.
The company s initial focus has been on the development of zervimesine for the treatment of Alzheimer s disease.
Enrollment has concluded in the company s Phase 2 COG0201 (SHINE) study of zervimesine in mild-to-moderate AD.
As of October 15, 2024, approximately 477 subjects have received zervimesine in our clinical trials, including people with AD, DLB and dry AMD.
Recent Developments In 2024, we reported top-line results from both the Phase 2 COG0201 (SHINE) clinical trial, which evaluated zervimesine in 153 adults with mild-to-moderate (MMSE 18-26) AD, and the Phase 2 COG1201 (SHIMMER) clinical trial in 130 adults with mild-to-moderate DLB.
Top-line SHINE results were presented in July 2024 at the Alzheimer s Association International Conference (AAIC) and additional data from a biomarker-defined population of AD patients from the SHINE study were presented in October 2024 at the Clinical Trials on Alzheimer s Disease (CTAD) conference.
Top-line results were presented during an investor webinar in December 2024.
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