# EDGAR Filing Document

**Accession Number:** 0001655923
**File Stem:** 0001213900-25-076600
**Filing Date:** 2025-8
**Character Count:** 148958
**Document Hash:** 1e33eff7531ca3a9c465562b36fe5b03
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-076600.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001213900-25-076600

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 81

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Alpha Cognition Inc.
- **CENTRAL INDEX KEY:** 0001655923
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42403
- **FILM NUMBER:** 251218546

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 1200-750 W PENDER ST
- **CITY:** VANCOUVER
- **NON US STATE TERRITORY:** BRITISH COLUMBIA
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6C 2T8
- **BUSINESS PHONE:** (858) 344-4375

**MAIL ADDRESS:**
- **STREET 1:** 20073 FIDDLERS GREEN
- **CITY:** FRISCO
- **STATE:** TX
- **ZIP:** 75036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Neurodyn Cognition Inc.
- **DATE OF NAME CHANGE:** 20151016

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission file number: 001-42403**

**Alpha Cognition Inc.**

(Exact Name of Registrant as Specified in its Charter)

---

| | |
|:---|:---|
| **British Columbia** | **N/A** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| **1452 Hughes Rd. Ste. 200** |  |
| **Grapevine, Texas** | **76051** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**(858) 344-4375**

(Registrant's Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act: None

<u>Title of each class:</u> <u>Trading Symbol</u> <u>Name of each exchange on which registered:</u> <br> Common Shares, no par value ACOG The Nasdaq Stock Market LLC

Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☒ <br> Smaller Reporting Company ☒ Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date: 16,160,787 common shares, without par value, outstanding as of August 14, 2025.

**ALPHA COGNITION INC.**

**FORM 10-Q**

**For the Quarter Ended June 30, 2025**

**INDEX**

---

| | |
|:---|:---|
|  | **Page** |
| [**PART I – FINANCIAL INFORMATION**](#a_001) |  |
| [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](#a_002) | 1 |
| [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_003) | 27 |
| [ITEM 3. – QUANTIATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#a_004) | 37 |
| [ITEM 4. CONTROLS AND PROCEDURES](#a_005) | 37 |
| [**PART II – OTHER INFORMATION**](#a_006) |  |
| [ITEM 1. LEGAL PROCEEDINGS](#a_007) | 38 |
| [ITEM 1A. RISK FACTORS](#a_008) | 38 |
| [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](#a_009) | 38 |
| [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](#a_010) | 38 |
| [ITEM 4. MINE SAFETY DISCLOSURE](#a_011) | 38 |
| [ITEM 5. OTHER INFORMATION](#a_012) | 38 |
| [ITEM 6. EXHIBITS](#a_013) | 39 |
| &nbsp;&nbsp;&nbsp;[**SIGNATURES**](#a_014) | 40 |

---

i

**ALPHA COGNITION INC.**

**CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS**

**PART I**

**ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.**

**ALPHA COGNITION INC.**

**CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**December 31,**<br>**2024** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $39405210 | $48546210 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 58400 | 17872 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 1813696 | - |
| &nbsp;&nbsp;&nbsp;Inventory | 875852 | 615133 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2495049 | 1071963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 44648207 | 50251178 |
| Other assets | - | 45714 |
| Equipment, net | 72539 | 27077 |
| Intangible assets, net | 402196 | 412969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**45122942** | $**50736938** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $2807822 | $2439289 |
| &nbsp;&nbsp;&nbsp;Current portion of promissory note - related party | - | 911463 |
| &nbsp;&nbsp;&nbsp;Deferred income | 231836 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 3039658 | 3350752 |
| Deferred income | 154550 | - |
| Warrant liabilities | 9844567 | 5820358 |
| Other long-term liabilities | 187851 | 102783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 13226626 | 9273893 |
| **Stockholders' equity** |  |  |
| Common shares, no par value, unlimited shares authorized, 16,023,119 and 16,019,787 shares issued and outstanding as of June 30, 2025, and December 31, 2024, respectively | 99154053 | 99128230 |
| Class B preferred shares, no par value, unlimited shares authorized, 316,655 shares issued and outstanding as of June 30, 2025, and December 31, 2024 | 62 | 62 |
| Additional paid-in capital | 21627035 | 18724092 |
| Accumulated other comprehensive loss | (104301) | (104301) |
| Accumulated deficit | (88780533) | (76285038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 31896316 | 41463045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**45122942** | $**50736938** |

---

The accompanying notes to the consolidated financial statements are an integral part of these statements.

**ALPHA COGNITION INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> Three Months Ended<br> June 30,** | **For the<br> Three Months Ended<br> June 30,** | **For the <br> Six Months Ended<br> June 30,** | **For the <br> Six Months Ended<br> June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product, net | $1576411 | $- | $1923340 | - |
| &nbsp;&nbsp;&nbsp;Licensing | 81276 | - | 2663001 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1657687 | - | 4586341 | - |
| **Costs and Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of product sales, excluding amortization of intangible asset | 440979 | - | 467520 | - |
| &nbsp;&nbsp;&nbsp;Cost of licensing revenue | 93118 | - | 903118 | - |
| &nbsp;&nbsp;&nbsp;Amortization of intangible asset | 5386 | 19760 | 10773 | 40354 |
| &nbsp;&nbsp;&nbsp;Research and development | 317120 | 967200 | 724631 | 1883916 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 6538085 | 1434251 | 11903732 | 4908459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total costs and expenses** | 7394688 | 2421211 | 14009774 | 6832729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Loss before other income (expenses)** | (5737001) | (2421211) | (9423433) | (6832729) |
| **Other income (expenses)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange (loss) gain | (5530) | (6862) | (6487) | (21491) |
| &nbsp;&nbsp;&nbsp;Interest income | 425026 | 2160 | 895702 | 14230 |
| &nbsp;&nbsp;&nbsp;Grant income | - | 138561 | 71095 | 272340 |
| &nbsp;&nbsp;&nbsp;Interest expense | 644 | (15216) | (8163) | (23474) |
| &nbsp;&nbsp;&nbsp;Impairment of intangible assets | - | - | - | (39166) |
| &nbsp;&nbsp;&nbsp;Gain (loss) of warrant liabilities | (5172091) | 187056 | (4024209) | (432933) |
| &nbsp;&nbsp;&nbsp;Provision for loan losses | - | - | - | (55000) |
| &nbsp;&nbsp;&nbsp;**Total other income (expenses)** | (4751951) | 305699 | (3072062) | (285494) |
| **Net loss and comprehensive loss** | (10488952) | (2115512) | (12495495) | (7118223) |
| **Net loss per share, basic and diluted** | $**(0.65)** | **(0.35)** | **(0.78)** | **(1.21)** |
| **Weighted-average shares used to compute net loss per share, basic and diluted** | **16020702** | **6009373** | **16020015** | **5877006** |

---

The accompanying notes to the consolidated financial statements are an integral part of these statements.

**ALPHA COGNITION INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)**

**(UNAUDITED)**

**For the Three and Six Months Ended June 30, 2025 and 2024**

For the three months ended June 30, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Preferred Shares** | **Preferred Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional**<br>**Paid-In**<br>**Capital** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** |<br>**Accumulated**<br>**Deficit** |<br><br>**Total** |
| **Balance, March 31, 2025** | **16019787** | $**99128230** | **316655** | $**62** | $**20079465** | $**(104301)** | $**(78291581)** | $**40811875** |
| &nbsp;&nbsp;&nbsp;Warrants exercised | 3332 | 25823 | - | - | - | - | - | 25823 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  | - |  | - | 1547570 | - | - | 1547570 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | (10488952) | (10488952) |
| **Balance, June 30, 2025** | **16023119** | $**99154053** | **316655** | $**62** | $**21627035** | $**(104301)** | $**(88780533)** | $**31896316** |

---

For the three months ended June 30, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Preferred Shares** | **Preferred Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional**<br>**Paid-In**<br>**Capital** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** |<br>**Accumulated**<br>**Deficit** |<br><br>**Total** |
| **Balance, March 31, 2024** | **5997016** | $**49108265** | **316655** | $**62** | $**18182009** | $**(104301)** | $**(66650884)** | $**535151** |
| &nbsp;&nbsp;&nbsp;Options exercised | 7200 | 91431 | - | - | (89631) | - | - | 1800 |
| &nbsp;&nbsp;&nbsp; Warrants exercised | 16000 | 160000 | - | - | - | - | - | 160000 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  | - |  | - | 375327 | - | - | 375327 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | (2115512) | (2115512) |
| &nbsp;&nbsp;&nbsp;**Balance, June 30, 2024** | **6020216** | $**49359696** | **316655** | $**62** | $**18467705** | $**(104301)** | $**(68766396)** | $**(1043234)** |

---

**ALPHA COGNITION INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)**

**(UNAUDITED)**

**For the Three and Six Months Ended June 30, 2025 and 2024**

For the six months ended June 30, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Preferred Shares** | **Preferred Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional**<br>**Paid-In**<br>**Capital** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** |<br>**Accumulated**<br>**Deficit** |<br><br>**Total** |
| **Balance, December 31, 2024** | **16019787** | $**99128230** | **316655** | $**62** | $**18724092** | $**(104301)** | $**(76285038)** | $**41463045** |
| &nbsp;&nbsp;&nbsp;Warrants exercised | 3332 | 25823 | - | - | - | - | - | 25823 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  | - |  | - | 2902943 | - | - | 2902943 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | (12495495) | (12495495) |
| **Balance, June 30, 2025** | **16023119** | $**99154053** | **316655** | $**62** | $**21627035** | $**(104301)** | $**(88780533)** | $**31896316** |

---

For the six months ended June 30, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Preferred Shares** | **Preferred Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional**<br>**Paid-In**<br>**Capital** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** |<br>**Accumulated**<br>**Deficit** |<br><br>**Total** |
| **Balance, December 31, 2023** | **4728355** | $**39760287** | **316655** | $**62** | $**17288430** | $**(104301)** | $**(61648173)** | $**(4703695)** |
| &nbsp;&nbsp;&nbsp;Units issued for cash | 678630 | 3732469 | - | - | - | - | - | 3732469 |
| &nbsp;&nbsp;&nbsp;Shares issued for services | 413445 | 2273949 |  |  |  |  |  | 2273949 |
| &nbsp;&nbsp;&nbsp;Share issuance costs | 168886 | (987988) | - | - | 582245 | - | - | (405743) |
| &nbsp;&nbsp;&nbsp;Options exercised | 14900 | 128182 | - | - | (126382) | - | - | 1800 |
| &nbsp;&nbsp;&nbsp;Warrants exercised | 16000 | 160000 | - | - | - | - | - | 160000 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  | - |  | - | 723412 | - | - | 723412 |
| &nbsp;&nbsp;&nbsp;Reallocation of derivative liability on re-pricing of warrants from CAD to USD exercise price |  | 4292797 |  | - | - | - | - | 4292797 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | (7118223) | (7118223) |
| **Balance, June 30, 2024** | **6020216** | $**49359696** | **316655** | $**62** | $**18467705** | $**(104301)** | $**(68766396)** | $**(1043234)** |

---

The accompanying notes to the consolidated financial statements are an integral part of these statements.

**ALPHA COGNITION INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the<br> Six Months Ended<br> June 30,** | **For the<br> Six Months Ended<br> June 30,** |
|  | **2025** | **2024** |
| **Cash flows provided by (used in) operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(12495495) | $(7118223) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 18896 | 40828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenditures for government grant | 63051 | (66423) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest income, related party | - | 2550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on warrant liabilities | 4024209 | 432933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of bonus rights liability | 85068 | (37360) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for loan losses | - | 55000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of intangible assets | - | 39166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reallocation of equipment to commercial operations | 18000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2902943 | 723412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for services | - | 2273949 |
| &nbsp;&nbsp;&nbsp;Changes in non-cash operating working capital items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (1813696) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (260719) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1457016) | (67766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 368533 | (151880) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income | 362450 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities** | (8183776) | (3873814) |
| **Cash flows (used in) investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of equipment | (71585) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) investing activities** | (71585) | - |
| **Cash flows provided by (used in) financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Units issued for cash | - | 3732469 |
| &nbsp;&nbsp;&nbsp;Exercise of options | - | 1800 |
| &nbsp;&nbsp;&nbsp;Exercise of warrants | 25823 | 160000 |
| &nbsp;&nbsp;&nbsp;Repayment of promissory notes | (911463) | - |
| &nbsp;&nbsp;&nbsp;Proceeds received from restricted government grant | 174675 | 290825 |
| &nbsp;&nbsp;&nbsp;Amounts paid from restricted government grant funds | (134146) | (205917) |
| &nbsp;&nbsp;&nbsp;Share issuance costs | - | (405753) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | (845111) | 3573424 |
| **Change in cash and cash equivalents during the period** | (9100472) | (300390) |
| **Cash and cash equivalents, beginning of period** | 48564082 | 1494573 |
| **Cash and cash equivalents, end of period** | $**39463610** | $**1194183** |
| **Cash and cash equivalents consists of:** |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | $39405210 | $1018862 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 58400 | 175321 |
|  | $**39463610** | $**1194183** |

---

The accompanying notes to the consolidated financial statements are an integral part of these statements.

**ALPHA COGNITION INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the<br> Six Months Ended<br> June 30,** | **For the<br> Six Months Ended<br> June 30,** |
|  | **2025** | **2024** |
| **Supplemental Disclosure** |  |  |
| Cash paid for interest | $**4894** | $**37754** |
| **Supplemental non-cash disclosures** |  |  |
| Reallocation of fair value of share options upon exercise | $**-**  | $**126832** |
| Reclassification of derivative liability for warrants re-priced from CAD to USD exercise price | $**-**  | $**3942575** |
| Common shares issued for share issuance costs | $**-**  | $**928874** |
| Warrants issued for share issuance costs | $**-**  | $**582245** |
| Common shares issued for services | $**-**  | $**2273949** |

---

The accompanying notes to the consolidated financial statements are an integral part of these statements.

**NOTE 1 – NATURE OF OPERATIONS** 

Alpha Cognition Inc. ("ACI" or the "Company") is a commercial stage, biopharmaceutical company dedicated to developing treatments for patients suffering from neurodegenerative diseases, such as Alzheimer's Disease and Cognitive Impairment with Traumatic Brain Injury ("TBI"), for which there are limited or no treatment options. The registered and records office of the Company is 1200 – 750 West Pender Street, Vancouver, BC, V6C 2T8. As of November 12, 2024, the Company's common shares commenced trading on the NASDAQ stock exchange under the symbol "ACOG". The Company's common shares traded on the Canadian Securities Exchange ("CSE") under the symbol "ACOG" from May 1, 2023, to December 17, 2024, on which date they were voluntarily delisted. Previously the Company's shares were traded on the TSX Venture Exchange ("TSX-V") until April 28, 2023, when the Company had them voluntarily delisted. The Company's shares also traded on the Over-The-Counter Markets ("OTC") under the trading symbol "ACOGF" until they were listed on the NASDAQ.

On July 29, 2024, the Company was granted approval by the U.S. Food and Drug Administration ("FDA") for the commercialization of ZUNVEYL, previously known as ALPHA-1062, for the treatment of mild-to-moderate Alzheimer's disease.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation*** – The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and are consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 31, 2024.

As permitted by SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted. In the opinion of management, all normal and recurring adjustments considered necessary for the fair presentation of the financial statements have been included. Revenues, expenses, assets, and liabilities can vary during each quarter of the year, therefore, the results and trends in these interim financial statements may not be representative of those for the full year.

The information included in this Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024

***Principles of Consolidation* –** These unaudited condensed interim consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Alpha Cognition Canada Inc. ("ACI Canada") and ACI Canada's wholly owned subsidiary Alpha Cognition USA Inc. ("ACI USA").

All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated upon consolidation.

***Functional and Reporting Currency* –** The functional currency of the Company and its subsidiaries is USD, being the currency of the primary economic environment in which each entity operates. The Company's reporting currency is the USD.

***Use of Estimates and Assumptions* –** The preparation of these unaudited condensed interim consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and disclosure of contingent liabilities as of the date of the unaudited condensed interim consolidated financial statements and the reported amounts of expenses during the reporting period. On an ongoing basis, management evaluates its estimates, to ensure that those estimates effectively reflect changes in the Company's business and new information as it becomes available. Management bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to forecasted amounts and future events. Actual results could differ materially from these estimates under different assumptions or conditions.

***Revenue Recognition***

Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The Company applies the following five-step revenue recognition model in accordance with ASC Topic 606, Revenue from Contracts with Customers, to determine revenue:

&nbsp;&nbsp;&nbsp;&nbsp;i) identify the contract with a customer;

ii) identify the performance obligations in the contract;

iii) determine the transaction price;

iv) allocate the transaction price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;v) recognize revenue when (or as) the Company satisfies a performance obligation.

*<u>Product Sales, Net</u>*

 

Products are primarily sold to distributors and wholesalers. The Company's contractual performance obligations are generally limited to the transfer of control of the product to the customer. For Zunveyl tablets provided to distributors, revenue is recognized at the point in time when control of the goods transfers to the distributor. The Company's contracts typically stipulate F.O.B. (Free on Board) destination terms. Consequently, revenue is recognized when the drugs are delivered to the distributor's location or any destination designated by the distributor for drop-shipment. This arrangement is not a consignment arrangement, and therefore, the Company recognizes revenue upon the delivery of goods to the distributor. The Company's payment terms to customers range from 60 to 96 days; payment terms differ by customer and by product.

*<u>Items Deducted from Gross Product Sales</u>*

 

Revenue is reduced at the time of recognition for expected chargebacks, product returns, recalls, and consideration payable to customers, collectively referred to as gross-to-net (GTN) adjustments. Chargebacks, product returns, and recalls are based on agreed-upon contractual terms. Consideration payable to customers comprises distributor fees. These service fees for distribution services are calculated as a percentage of monthly product sales based on the Wholesale Acquisition Cost (WAC). These fees are paid to wholesale distributors for services such as access to inventory and sales data to pharmacies, inventory management, accounts receivable administration, and return and chargeback administration. These services are integral activities within the distribution chain with the distributor customer, specifically related to Alpha Cognition's sales of Zunveyl, and are not considered distinct from the Company's promise to sell Zunveyl through the distribution channel to end customers. Consequently, these fees are recognized as a reduction of revenue.

Variable consideration will be re-evaluated at least on a quarterly basis, and we will continue to re-evaluate variable consideration on an ongoing basis. The amount of variable consideration can vary from period to period due to fluctuations in chargebacks, product returns, recalls, and consideration payable to customers, or other similar items.

*<u>Licensing Revenue</u>*

 

At contract inception, the Company identifies the goods or services promised in the contract and assesses whether each is distinct for the purpose of identifying performance obligations. A promised good or service is distinct if (1) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer; and (2) the Company's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. In licensing arrangements, the Company considers factors such as the collaboration partner's capabilities and the availability of required expertise in the marketplace. The intended benefit of the contract is also considered in determining whether a promised good or service is separately identifiable. If a good or service is not distinct, it is combined with other promised goods or services until a distinct bundle is identified.

Arrangements that include rights to additional goods or services that are exercisable at a customer's discretion are generally considered options. The Company evaluates whether such options provide a material right to the customer. If so, they are treated as separate performance obligations.

The transaction price is then determined and allocated to the identified performance obligations in proportion to their standalone selling prices ("SSP"). SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. Judgment is required in estimating SSP, and the Company considers market conditions, entity-specific factors, and estimated costs in making this determination.

If the consideration includes a variable amount, the Company estimates the amount to which it expects to be entitled using either the expected value or the most likely amount method, depending on which better predicts the outcome. The estimated amount is included in the transaction price only to the extent it is probable that a significant reversal of cumulative revenue will not occur when the uncertainty is resolved. The Company re-evaluates estimates and constraints at each reporting date and adjusts the transaction price accordingly, recording any changes on a cumulative catch-up basis.

For arrangements that include development or regulatory milestone payments, the Company evaluates whether achieving the milestone is probable and recognizes revenue only if a significant reversal is not expected. Regulatory milestones that are outside the control of either party are generally excluded from the transaction price until achieved.

For licenses of intellectual property that include sales-based royalties or milestones, and when the license is the predominant item to which the royalties relate, the Company recognizes royalty revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied, consistent with the sales-based royalty exception.

Revenue is recognized when the Company satisfies a performance obligation, either at a point in time or over time. The amount of revenue recognized is based on the portion of the transaction price allocated to each performance obligation in accordance with its relative SSP. For obligations satisfied over time, revenue is recognized using an input or output method, depending on which most accurately depicts the transfer of control to the customer.

***Accounts Receivable*** - The majority of our accounts receivable arise from product sales and primarily represent amounts due from our wholesale and other third-party distributors standard payment terms that generally require payment within 30 to 96 days.

We provide reserves against accounts receivable for estimated losses that may result from a customer's inability to pay. Amounts determined to be uncollectible are charged or written-off against the reserve.

***Inventory*** – The Company values its inventories at the lower of cost or estimated net realizable value. The Company determines the cost of its inventories, which includes amounts related to materials and manufacturing overhead, on a first-in, first-out basis. The Company classifies inventory as long-term when consumption or sale of the inventory is expected beyond its normal operating cycle of twelve months. The Company performs an assessment of the recoverability of capitalized inventory during each reporting period, and it writes down any excess and obsolete inventories to their estimated realizable value in the period in which the impairment is first identified. Such impairment charges, should they occur, are recorded within cost of sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required which would be recorded as cost of sales in the consolidated statements of operations.

The Company capitalizes inventory costs associated with the Company's products after regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. Inventory acquired prior to receipt of regulatory approval of a product candidate is expensed as research and development expense as incurred. The Company began to capitalize inventory costs upon receipt of regulatory approval in July 2024. Raw materials consist of materials, including active pharmaceutical ingredients, to be consumed in production of inventory related to FDA approved products.

***Royalty Cost of Sales*** – The Company makes royalty payments to third parties under license or purchase agreements associated with the acquisition of intellectual property. These royalty payments are calculated as a percentage of the net product sales and licensing fee in the period the corresponding sales occur. Royalty expenses are recognized as incurred and recorded as a component of cost of sales in the consolidated statements of operations and comprehensive loss.

***Share-Based Compensation* –** The Company accounts for share-based compensation in accordance with ASC 718, *Compensation – Share-Based Compensation,* which requires compensation cost for the grant-date fair value of share-based awards to be recognized over the requisite service period. The Company accounts for forfeitures when they occur. The fair value of share-based awards, granted or modified, is determined on the grant date (or modification or acquisition dates, if applicable) at fair value, using the Black-Scholes option pricing model. This model is affected by the Company's share price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the Company's expected share price volatility over the terms of the awards, and actual and projected employee share option exercise behaviors. The Company records share-based compensation expense for service-based share options on an accelerated attributions method over the requisite service period. The Company records share-based compensation expense for performance-based share options on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable to be satisfied.

The fair value of options is determined using the Black-Scholes option pricing model which incorporates all market vesting conditions. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest.

***Liability-Based Awards*** – Bonus right awards that include cash settlement features are accounted for as liability-based awards in accordance with ASC 718, *Compensation – Share Based Compensation*. The fair value of the bonus right awards is estimated using a Black-Scholes option-pricing model and is revalued on each reporting date, based on the probability of the expected awards to vest, until settlement. Changes in the estimated fair value of the bonus right awards are recognized within general and administrative expense in the unaudited condensed interim consolidated statement of operations and comprehensive loss over the vesting period. Key assumptions in the calculation of the fair value of the bonus right awards include expected volatility, risk-free interest rate, expected life, and fair value per award.

***Convertible Debentures and Conversion Feature Liability*** *–* The Company's debt instruments contain a host liability and an embedded conversion feature. The Company uses the guidance under FASB ASC Topic 815 *Derivatives and Hedging* ("ASC 815") to determine if the embedded conversion feature must be bifurcated and separately accounted for as a derivative under ASC 815. It also determines whether any embedded conversion features requiring bifurcation qualify for any scope exceptions contained within ASC 815. Generally, contracts issued or held by a reporting entity that are both (i) indexed to its own shares, and (ii) classified in stockholders' equity, would not be considered a derivative for the purposes of applying ASC 815. Any embedded conversion features that do not meet the scope exception noted above are classified as derivative liabilities, initially measured at fair value, and remeasured at fair value each reporting period with change in fair value recognized in the consolidated statements of operations and comprehensive loss. Any embedded conversion features that meet the scope exception under ASC 815 are initially recorded at their relative fair value in paid-in-capital and are not remeasured at fair value in future periods.

Any embedded conversion features that do not meet the scope exception under ASC 815 are initially recorded at their fair value and the residual amount of the proceeds received is allocated to the convertible debentures. The host debt instrument is accounted for in accordance with guidance applicable to non-convertible debt under FASB ASC Topic 470 *Debt* ("ASC 470") and is accreted to its face value over the term of the debt with accretion expense and periodic interest expense recorded in the consolidated statements of operations and comprehensive loss.

The Company uses the Monte Carlo Simulation method to determine the fair value of the conversion feature liability and warrant liability. This requires the input of subjective assumptions including the following:

*Risk-Free Interest Rate –* The risk-free interest rate is the continuously compounded, term matching based on the U.S. Treasury zero coupon rate from the valuation date.

*Expected Life* – The Company's expected term represents the period that the Company's convertible debentures are issued and are expected to be outstanding or the remaining contractual life of the conversion period and is determined using the simplified method (based on the mid-point between the vesting date and the end of the contractual term).

*Expected Volatility –* The Company's expected volatility was estimated based on the average volatility for comparable publicly traded biopharmaceutical companies over a period equal to the expected term of the awards.

Probability – The probability is based on management's best estimate of based on the relevant information available.

Changes in the input assumptions can materially affect the fair value estimate and the Company's earnings (loss) and equity.

***Derivative liability*** – The Company recognizes and measures derivative financial instruments in according with ASC 815, *Derivatives and Hedging*, which requires that all derivative instruments be recognized on the balance sheet at fair value. Derivative instruments are classified as either assets or liabilities.

The Company uses the Black-Scholes option pricing model to determine the fair value of the warrant liability, share-based options, and stand-alone share purchase warrants issued as noted above. This model requires the input of subjective assumptions including the following:

*Risk-Free Interest Rate –* The risk-free interest rate is based on the U.S. Treasury zero coupon bond issues in effect at the time of grant for periods corresponding with the expected term of option.

*Dividend Yield –* The Company has never paid dividends on its common shares and has no plans to pay dividends on its common shares. Therefore, the Company used an expected dividend yield of zero.

*Expected Life* – The Company's expected term represents the period that the Company's options granted are expected to be outstanding or the remaining contractual life of the conversion period and is determined using the simplified method (based on the mid-point between the vesting date and the end of the contractual term).

*Expected Volatility –* The Company's expected volatility was estimated based on the average volatility for comparable publicly traded biopharmaceutical companies over a period equal to the expected term of the awards.

Changes in the input assumptions can materially affect the fair value estimate and the Company's earnings (loss) and equity.

***Fair Value Measurements -*** FASB ASC 820 – *Fair Value Measurements and Disclosures* defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements. In accordance with ASC 820, we have categorized our financial assets and liabilities based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy as set forth below. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded in the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

 

*Level 1* – Financial instruments whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which we have the ability to access at the measurement date.

*Level 2* – Financial instruments whose values are based on quoted market prices in markets where trading occurs *infrequently* or whose values are based on quoted prices of instruments with similar attributes in active markets.

*Level 3* – Financial instruments whose values are based on prices or valuation techniques that require inputs that are *both* unobservable and significant to the overall fair value measurement. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the instrument.

The Company's financial instruments consist of cash, restricted cash, accounts receivable, other current assets, accounts payable, promissory note, warrant liabilities, and other long-term liabilities. The fair values of accounts receivable, other current assets, accounts payable, and promissory note approximate their carrying values either due to their current nature or current market rates for similar instruments.

Cash is measured at fair value on a recurring basis using level 1 inputs. Other long-term liabilities consisting of the bonus rights liability and warrant liabilities are measured at fair value on a recurring basis using level 3 inputs. As of June 30, 2025 and December 31, 2024, the fair value of the bonus rights liability was $187,851 and $102,783, respectively. As of June 30, 2025 and December 30, 2024, the fair value of the warrant liabilities was $9,844,567 and $5,820,358, respectively.

***New Accounting Pronouncements*** *–* 

In December 2023, FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements in Income Tax Disclosures,* which is to enhance the transparency and decision usefulness of income tax disclosures. This amendment requires public companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, under the amendment entities are required to disclose the amount of income taxes paid disaggregated by federal, state and foreign taxes, as well as disaggregated by material individual jurisdictions. Finally, the amendment requires entities to disclose income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state and foreign. The new rules are effective for annual periods beginning after December 15, 2024. We will adopt this standard on a prospective basis as allowed by the standard. The adoption of this standard is not expected to have a material impact on our financial statements.

In November 2024, FASB issued ASU 2024-03, *Income Statement (Subtopic 220-40): Reporting Comprehensive Income – Expense Disaggregation Disclosures.* This standard requires disclosure in the notes to the financial statements, at each interim and annual reporting period, of specified information about certain costs and expense including purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. This standard also requires a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated, as well as disclosure of the total amount of selling expenses, and, in annual reporting periods, an entity's definition of selling expenses. These new rules are effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently evaluating the potential impact that this new standard will have on our consolidated financial statements and related disclosures.

**NOTE 3 – R&D GRANT**

On June 5, 2023, the Company was awarded a $750,000 research and development grant from the Army Medical Research and Material Command for a pre-clinical study on the use of the ALPHA-1062 Intranasal to reduce blast mTBI (mild Traumatic Brain Injury) induced functional deficit and brain abnormalities ("R&D Grant"). The R&D Grant is issued in collaboration with the Seattle Institute of Biomedical and Clinical Research and endorsed by the Department of Defense. Funds received from the R&D grant are restricted and to be used solely as outlined in the grant. The R&D grant funding will expire for use on September 30, 2028.

Per the R&D Grant, budget expenses are expected to include cost to carry out the clinical trials including personnel costs, materials and supplies, animal housing, publications, and travel costs. The Company classifies any cash received from the R&D Grant that has not yet been used to pay ongoing R&D grant expenditures as restricted cash, as the proceeds from the grant are to be designated for the specified grant research.

Activity related to the R&D grant was as follows for the six months ended June 30, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Six Months Ended** | **For the<br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Cash received | $174675 | $290825 |
| Grant income recognized | $71095 | $272340 |

---

As of June 30, 2025, and December 31, 2024, the Company's balance sheet accounts included the following related to the R&D Grant:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, <br> 2024** |
| Restricted cash | $58400 | $17872 |
| Deferred income (receivable) | $23936 | $(79643) |

---

**NOTE 4 – INVENTORY**

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | **December 31, <br> 2024** |
| Raw materials | $- | $- |
| Work in progress | - | 615133 |
| Finished goods | 875852 | - |
| &nbsp;&nbsp;&nbsp;**Total** | $**875852** | $**615133** |

---

As of June 30, 2025, and prior there to, raw materials were acquired to be used in the development process and expensed as incurred as they had no alternative future use.

During the six months ended, June 30, 2025, the Company recognized cost of sales of $67,919, (2024: $nil) in the condensed interim consolidated statement of operations and comprehensive loss.

**NOTE 5 – BALANCE SHEET COMPONENTS**

***Prepaid Expenses and Other Current Assets***

Prepaid expenses and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Other receivables | $140272 | $253426 |
| Prepaid insurance and other expenses | 2292953 | 795141 |
| Prepaid legal expenses | 61824 | 23396 |
| &nbsp;&nbsp;&nbsp;**Prepaid expenses and other assets** | $**2495049** | $**1071963** |

---

***Accounts payable and accrued liabilities***

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Accounts payable | $752334 | $872676 |
| Other accrued liabilities | 805761 | 643063 |
| Accrued payroll and bonuses | 1249727 | 923550 |
| &nbsp;&nbsp;&nbsp;**Accounts payable and accrued liabilities** | $**2807822** | $**2439289** |

---

**NOTE 6 – INTANGIBLE ASSETS**

Intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **June 30, 2025** | **Gross<br> Amount** | **Accumulated<br> Amortization** | **Net <br> Balance** | **Weighted<br> Average<br> Remaining<br> Useful Life** |
| Licenses | $1185633 | $783437 | $402196 | 18.67 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Gross<br> Amount** | **Accumulated<br> Amortization** | **Net <br> Balance** | **Weighted<br> Average<br> Remaining<br> Useful Life** |
| Licenses | $1185633 | $772664 | $412969 | 5.17 |

---

On January 25, 2025, the Company was granted a new patent titled "Coated Tablets for pH-Dependent Release of Benzgalantamine" from the United States Patent and Trademark Office (USPTO) until 2044. As a result of the granted patent, management reviewed the estimated useful life of the license related to this patent, and determined the remaining useful life should be extended from 5 years to 19 years.

*<u>Change in Useful Life of Intangible Asset</u>*

 

The Company completed a review of the estimated useful life of its intangible asset after a patent application, related to the Memogain License, was granted in January 2025. The patent term was extended to February 2044. Management determined that the estimated useful life of the license should be extended for an additional 14 years. Effective January 1, 2025, the Company extended the estimated remaining useful life of the license from 5 years to 19 years.

This change in estimates has been applied prospectively in accordance with ASC 250, Accounting Changes and Error Corrections. As a result of this change, amortization expense decreased by approximately $28,700 for the six months ended June 30, 2025, compared to the prior amortization schedule.

Amortization expense for the six months ended June 30, 2025 and 2024, was $10,773 and $40,354, respectively. During the three months ended June 30, 2025, and 2024, the Company reported an impairment of intangible assets of $nil and $39,166, respectively, from the impairment of one license.

The following table outlines the estimated future annual amortization expense related to intangible assets as of June 30, 2025:

---

| | |
|:---|:---|
| **Year Ending December 31,** | |
| 2025 | $10774 |
| 2026 | 21546 |
| 2027 | 21546 |
| 2028 | 21546 |
| 2029 | 21546 |
| Thereafter | 305238 |
| &nbsp;&nbsp;&nbsp;**Total** | $**402196** |

---

**NOTE 7 – PROMISSORY NOTE**

In March 2015, the Company issued a promissory note of $1,400,000 to Neurodyn Life Sciences Inc ("NLS"), a related party through a common director, for the acquisition of the ALPHA-1062 Technology.

Effective April 1, 2024, the Company and NLS agreed to another amendment to the promissory note pursuant to which the interest rate was increased from 5.5% to 7% and the maturity date was extended from July 15, 2024, to July 15, 2025. Additionally, $300,000 was to be paid on or by December 31, 2024 (paid), with the remaining principal balance due at maturity with certain events triggering the balance to be repayable on demand. Such events include (1) being in breach of the Memogain License Agreements (Note 13); (2) failure to make payments when due; (3) entering into a technology license or merger and acquisition transaction having a value in excess of USD $40,000,000; and (4) completing a financing, excluding any initial NASDAQ uplisting, having a value in excess of USD $40,000,000. The balance was repaid in full on January 29, 2025.

As of June 30, 2025, and December 31, 2024, the principal balance outstanding on the promissory note was $nil and $911,463, respectively. During the six months ended June 30, 2025, and 2024, the Company recorded interest expense and amortization of the premium, included in accretion expense, of $4,894 and $37,754, respectively.

**NOTE 8 – CONVERTIBLE DEBENTURES AND CONVERSION FEATURE LIABILITY**

On September 24, 2024, the Company entered into Securities Purchase Agreements ("SPAs") with various third-party lenders for the issuance of convertible debentures ("Debentures") and warrants to purchase 430,805 common shares of the Company at an exercise price of $10.55 per share until September 24, 2029 ("Initial Debenture Warrants") for $4,545,000.

The Debentures bore interest at 10% per annum, computed on the basis of a 360-day year and twelve 30-day months, and are due and payable with accrued interest thereon on September 24, 2026 ("Maturity Date"). Upon the occurrence of a Qualified Offering, being an offering of the Company's securities for at least $10 million in aggregate gross proceeds in coordination with the simultaneous uplisting of the Company's common shares onto a United States national securities exchange, the Debentures would automatically convert into the securities, including warrants, on the same terms as are applicable in the Qualified Offering at the lower of (i) the Conversion Price or (ii) the per security offering price in the Qualified Offering.

Upon closing of a Qualified Offering, each Initial Debenture Warrant holder was entitled to receive an additional 50% of warrants ("Additional Debenture Warrant") with identical terms as the Initial Debenture Warrants.

On November 13, 2024, the convertible notes automatically converted pursuant to their terms into 801,413 Common Shares at a conversion price of $5.75 being the public offering price per share in the public offering. Additionally, the Company issued an additional 215,421 warrants exercisable to acquire 215,421 Common Shares at an exercise price of $7.19 per share and the exercise price of the Company's existing 430,805 warrants issued in connection with the offering of the convertible notes was repriced from $10.55 per share to $7.19 per share.

**NOTE 9 – OTHER LONG-TERM LIABILITIES** 

The Company adopted a cash bonus policy pursuant to which it may grant bonus rights to certain eligible participants, which include employees, officers, or consultants of the Company, that are payable in cash. These bonus rights are subject to certain vesting provisions and are revalued at each reporting date with the change being included in management fees and salaries on the Company's consolidated statements of operations and comprehensive loss.

During the year ended December 31, 2022, Officers of the Company were granted the ability to earn up to 370,448 bonus rights entitling them to a cash bonus equal to an amount by which the fair market value of one common share of the Company (calculated as the 30-day Volume Weighted Average Price ("VWAP") per common share) exceeds $39.50 multiplied by the number of bonus rights vested. The bonus rights will be earned in tranches based on the price of the Company's common share exceeding certain thresholds.

On April 16, 2024, the Company amended the bonus rights agreements to extend the vesting date from April 15, 2024, through the earlier of April 28, 2027, a change of control, or attainment of the business value threshold with respect to any tranche. Additionally, the grant price was reduced from $39.50 to $29.75. As of June 30, 2025, and December 31, 2024, the Officers had earned 95,071 bonus rights.

As of June 30, 2025, and December 31, 2024, the Company recognized a bonus right liability of $187,851 and $102,783, respectively, to recognize the proportionate unvested bonus rights. Total compensation expense (recovery) for the bonus rights recognized within general and administrative expenses for the six months ended June 30, 2025, and 2024, was $82,598 and $(23,371), respectively. Total compensation expense (recovery) for the bonus rights recognized within research and development expenses for the six months ended June 30, 2025, and 2024, was $2,470 and $(13,989), respectively. As of June 30, 2025, and December 31, 2024, there was $240,706 and $264,043 of unrecognized compensation expense related to the bonus right awards, respectively.

In accordance with ASC 718, *Share-Based Payments,* the bonus right awards are considered liability-based awards and are revalued at each reporting date. The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the bonus rights liability as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | **December 31,<br> 2024** |
| Risk-free interest rate | 3.72% | 4.25% |
| Expected life (in years) | 1.84 | 2.33 |
| Volatility | 140.89% | 166.95% |
| Weighted average fair value per bonus right | $4.33 | $3.30 |

---

**NOTE 10 – STOCKHOLDERS' EQUITY**

***Authorized Share Capital***

The Company is authorized to issue the following share capital:

● Unlimited common voting shares without par value ("Common Share")

● Unlimited Class A restricted voting shares without par value ("Restricted Share")

● Unlimited Class B Preferred Series A voting shares without par value, convertible on a 1:1 basis into Common Share ("Class B Preferred Share")

***Issued Share Capital***

During the six months ended June 30, 2025, the Company issued 3,332 Common Shares for the exercise of 3,332 warrants at a price of $7.75 per share for total proceeds of $25,823. The Company did not issue any Restricted Shares or Class B Preferred Shares.

***Warrants***

 ****

During the six months ended June 30, 2025, the Company did not issue any warrants.

The schedule of activity for the warrants is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Number of<br> Warrants** | **Weighted<br> Average<br> Exercise<br> Price (as<br> converted)** | **Remaining<br> Contractual<br> Term<br> (Years)** |
| **Balance, December 31, 2024** | **3635962** | $**7.37** | **3.30** |
| Exercised | (3332) | 7.75 |  |
| **Balance, June 30, 2025** | **3632630** | $**7.40** | **2.80** |

---

A summary of the warrants outstanding and exercisable as of June 30, 2025, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Warrants Outstanding** | **Exercise Price** | **Exercise Price** | **Expiry Date** |
| 129861 | $— | 7.75 | August 31, 2026 |
| 35064 | $— | 7.75 | October 16, 2026 |
| 101000 | $— | 7.75 | November 8, 2026 |
| 394572 | $— | 7.75 | December 22, 2026 |
| 720123 | $— | 7.75 | January 19, 2027 |
| 585609 | $— | 7.23 | February 16, 2028 |
| 86200 | $— | 7.15 (CAD$9.75) | February 16, 2028 |
| 28796 | $— | 7.15 (CAD$9.75) | March 15, 2028 |
| 262287 | $— | 7.08 | March 15, 2028 |
| 430805 | $— | 7.19 | September 24, 2029 |
| 642892 | $— | 7.18 | November 8, 2029 |
| 215421 | $— | 7.19 | November 13, 2029 |
| **3632630** |  |  |  |

---

 ****

***Warrants Liabilities***

a) On August 31, 2023, the Company's functional currency changed to the USD from the CAD; as such, the Company recorded a derivative liability on the warrants outstanding with CAD exercises prices. This derivative liability is being revalued at each reporting period.

As of June 30, 2025, and December 31, 2024, the Company revalued the derivative liability to $792,893 and $503,129, respectively, and recorded a loss on revaluation of $289,764 for the six months ended June 30, 2025 (six months ended June 30, 2024 – loss of $432,933).

---

| | |
|:---|:---|
| **Balance as of December 31, 2024** | $**503129** |
| Revaluation of derivative liability | 289764 |
| **Balance as of June 30, 2025** | $**792893** |

---

A summary of warrants not issued for services with CAD exercise prices outstanding and exercisable as of June 30, 2025, is as follows:

---

| | | |
|:---|:---|:---|
| **Warrants Outstanding** | **Exercise Price** | **Expiry Date** |
| 86200 | $7.15 (CAD$9.75) | February 16, 2028 |
| 15810 | $7.15 (CAD$9.75) | March 15, 2028 |
| **102010** |  |  |

---

The following weighted average assumptions were used in the Black-Scholes option-pricing model for the re-valuations as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Market price of public stock | $9.33 | $5.89 |
| Risk-free interest rate | 3.68% | 4.27% |
| Dividend yield | - | - |
| Expected life (in years) | 2.64 | 3.14 |
| Volatility | 157% | 158% |
| Weighted average fair value per warrant | $7.77 | $4.93 |

---

b) On September 24, 2024, the Company entered into SPAs with various third-party
lenders for the issuance of the 430,805 Initial Debenture Warrants and 215,421 Additional Debenture Warrants.

The Initial Debenture Warrants were exercisable at a price of $10.55 per share until September 24, 2029. Upon closing of a Qualified Offering, each Initial Debenture Warrant holder received Additional Warrants with identical terms as the Initial Debenture Warrants.

The fundamental transaction clause in the warrant agreement stipulates that the expected volatility is determined as the greater of 100% and the 30-day volatility, as calculated from the HVT function on Bloomberg. Under ASC 815 (Derivatives and Hedging), an instrument must be classified as equity if it passes the "fixed-for-fixed" indexation test, meaning both the exercise price and the number of shares to be issued must be fixed at issuance. In this case, the volatility input is predetermined and fixed in the agreement "an expected volatility equal to the greater of 100% and the 30 day volatility from the "HVT" function on Bloomberg", and is therefore not indexed to the Company's stock. As a result, the Initial and Additional Debenture Warrants fail the "fixed-for-fixed" test and are classified as derivative liabilities in accordance with ASC 815.

As of June 30, 2025, the Company revalued the derivative liabilities to $4,514,619 (December 31, 2024 - $2,646,843) and recorded a loss on revaluation of $1,867,776 and $nil for the six months ended June 30, 2025, and 2024, respectively.

A summary of the Initial and Additional Debenture Warrants issued and outstanding as of June 30, 2025, is as follows:

---

| | | |
|:---|:---|:---|
| **Warrants Outstanding** | **Exercise Price** | **Expiry Date** |
| 430805 | $7.19 | &nbsp;&nbsp;September 24, 2029 |
| 215421 | $7.19 | &nbsp;&nbsp;November 13, 2029 |
| **646226** |  |  |

---

The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluation for the Initial and Additional Debenture Warrant as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | **December 31, <br> 2024** |
| Market price of public stock | $9.33 | $5.89 |
| Risk-free interest rate | 3.74% | 4.38% |
| Dividend yield | - | - |
| Expected life (in years) | 4.28 | 4.73 |
| Volatility | 97% | 94% |
| Weighted average fair value per warrant | $6.99 | $4.10 |

---

c) Agent Warrants issued in connection with the public offering.

Upon completion of the public offering, the Company issued 608,696 agent warrants and an additional 34,196 agent warrants for the over-allotment. In the warrant agreement it included the fundamental transaction clause that stipulates that the expected volatility is determined as the greater of 100% and the 30-day volatility, as calculated from the HVT function on Bloomberg. Under ASC 815 (Derivatives and Hedging), an instrument must be classified as equity if it passes the "fixed-for-fixed" indexation test, meaning both the exercise price and the number of shares to be issued must be fixed at issuance. In this case, the volatility input is predetermined and fixed in the agreement "an expected volatility equal to the greater of 100% and the 30 day volatility from the "HVT" function on Bloomberg", and is therefore not indexed to the Company's stock. As a result, the agent warrants fail the "fixed-for-fixed" test and are classified as derivative liabilities in accordance with ASC 815.

As at June 30, 2025, the Company revalued the derivative liabilities to $4,537,055 (December 31, 2024 - $2,670,386) and recorded a loss on revaluation of $1,866,669 and $nil for the six months ended June 30, 2025, and 2024, respectively.

A summary of the agent warrants issued and outstanding as of June 30, 2025, is as follows:

---

| | | |
|:---|:---|:---|
| **Warrants Outstanding** | **Exercise Price** | **Expiry Date** |
| 642892 | $7.18 | &nbsp;&nbsp;November 9, 2029 |

---

The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluations as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Market price of public stock | $9.33 | $5.89 |
| Risk-free interest rate | 3.74% | 4.38% |
| Dividend yield | - | - |
| Expected life (in years) | 4.36 | 4.86 |
| Volatility | 98% | 95% |
| Weighted average fair value per warrant | $7.06 | $4.15 |

---

***Equity Incentive Plan***

 ****

The Company's 2025 Stock and Incentive Plan (the "2025 Incentive Plan") for its employees, officers, consultants, advisors and non-employee Directors was approved by the stockholders on June 19, 2025. The 2025 Incentive Plan is to provide equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, or other stock-based awards. The total number of Common Shares reserved under the 2025 Incentive Plan is 2,000,000, which does not include the options outstanding in prior existing Share Option Plans. As of June 30, 2025, no awards have been granted from the 2025 Incentive Plan.

***Share Options***

<u>Common Share Options</u>

The Company's 2023 Share Option Plan (the "2023 Option Plan") for its officers, directors, employees and consultants was approved by stockholders on June 27, 2023. Pursuant to the 2023 Option Plan, the Company may grant non-transferable share options totaling in aggregate up to 20% of the Company's issued and outstanding Common Shares and Restricted Shares, exercisable for a period of up to ten years from the date of grant, and at an exercise price that will not be lower than the greater of the last closing price for the Common Shares as quoted on the CSE: (i) on the trading day prior to the date of grant; and (ii) the date of grant. All options granted pursuant to the 2023 Option Plan will be subject to such vesting requirements as may be imposed by the Board. In the event of a Change of Control, as defined in the 2023 Option Plan, all unvested options will vest immediately. Upon approval of the 2025 Incentive Plan on June 19, 2025, the Company closed the 2023 Option Plan to new grants. The options outstanding under the 2023 Option Plan are not included in the maximum number of share options available for grant pursuant to the 2025 Incentive Plan and are not subject to the terms of the 2025 Incentive Plan; as such, the 2023 Options will continue to be governed by the 2023 Option Plan.

The 2022 Option Plan was previously adopted by the board and approved by stockholders on July 19, 2022, pursuant to which incentive share options were granted to certain directors, officers, employees and consultants (the "2022 Option Plan"). Under the 2022 Option Plan, the Company could grant non-transferable share options totaling in aggregate up to 10% of the Company's issued and outstanding Common Shares, exercisable for a period of up to ten years from the date of grant, and at an exercise price which is not less than that permitted by the TSX-V. In connection with listing of the Common Shares on the CSE, the Company adopted the 2023 Option Plan and determined that the 2022 Option Plan be closed to new grants. The options outstanding under the 2022 Option Plan, issued prior to the adoption of the 2023 Option Plan ("2022 Options") are not included in the maximum number of share options available for grant pursuant to the 2023 Option Plan and are not subject to the terms of the 2023 Option Plan; as such, the 2022 Options will continue to be governed by the 2022 Option Plan.

The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the Common Share options issued:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Risk-free interest rate | 4.31% | 4.34% |
| Expected life (in years) | 10 | 10 |
| Volatility | 82% | 82% |
| Weighted average fair value per option | $4.87 | $5.58 |

---

The following table summarizes the total amount of share-based compensation expense related to service conditions for Common Share options during the three and six months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> Three Months Ended** | **For the<br> Three Months Ended** | **For the <br> Six Months Ended** | **For the <br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Research and development | $38756 | $65694 | $71835 | $153541 |
| General and administrative | 1508814 | 193629 | 2831108 | 453867 |
| &nbsp;&nbsp;&nbsp;**Total share-based compensation** | $**1547570** | $**259323** | $**2902943** | $**607408** |

---

As of June 30, 2025, there was an unrecognized share-based compensation expense relating to service conditions for common share options of $3,922,040.

Common share option activity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** | **Aggregate<br> Intrinsic<br> Value<sup>(1)</sup>** |
| **Balance, December 31, 2024** | **888529** | $**4.58** | **8.36** | $**1159843** |
| Granted | **1213097** | **5.86** |  |  |
| **Balance, June 30, 2025** | **2101696** | **5.39** | **8.58** | **8344263** |
| **Options exercisable, June 30, 2025** | **901168** | $**4.82** | **7.35** | $**4072379** |

---

***(1)*** The aggregate intrinsic values were calculated as the difference between the exercise price of the options and the closing price of the Company's common share. The calculation excludes options with an exercise price higher than the closing price of the Company's share on the reporting date.

A summary of the Common Share options outstanding at June 30, 2025, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Options<br> Outstanding** | **Options<br> Exercisable** | **Exercise Price** | **Exercise Price** | **Expiry Date** |
| 7300 | 7300 | 5.13 | (CAD$7.00) | September 30, 2025 |
| 82367 | 82367 | 4.03 | (CAD$5.50) | September 30, 2025 |
| 1566 | 1566 | $10.00 |  | June 1, 2029 |
| 1566 | 1566 | $10.00 |  | July 22, 2030 |
| 104000 | 104000 | $5.13 | (CAD$7.00) | August 3, 2031 |
| 37600 | 37600 | $5.13 | (CAD$7.00) | December 20, 2031 |
| 8600 | 8600 | $5.13 | (CAD$7.00) | February 14, 2032 |
| 18000 | 18000 | $5.13 | (CAD$7.00) | May 31, 2032 |
| 477600 | 386185 | $4.03 | (CAD$5.50) | June 8, 2033 |
| 32000 | 5334 | $11.00 | (CAD$15.00) | October 21, 2034 |
| 84000 | 14002 | $6.01 | (CAD$8.20) | November 26, 2034 |
| 34000 | 5668 | $5.03 |  | December 24, 2034 |
| 10000 | 834 | 6.00 |  | January 14, 2035 |
| 52500 | 4380 | 5.80 |  | February 12, 2035 |
| 1005822 | 215678 | 5.93 |  | February 25, 2035 |
| 8000 | 666 | 5.75 |  | March 4, 2035 |
| 89200 | 7422 | 5.55 |  | March 20, 2035 |
| 12000 | - | 5.08 |  | April 2, 2035 |
| 35575 | - | 4.83 |  | April 7, 2035 |
| **2101696** | 901168 |  |  |  |

---

<u>ACI Canada Legacy Performance Options</u>

The Company retained ACI Canada's share option plan whereby ACI Canada could grant share options to directors, officers, employees and consultants enabling them to acquire common shares. Options granted had a maximum term of ten years and the board of directors determined the vesting requirements. From time to time, the Company granted performance-based share options to management and consultants. These options vest based on the Company's achievement of certain performance goals and operational metrics, as applicable, subject to continuous employment by each recipient.

The following table summarizes the total amount of share-based compensation expense related to performance conditions for ACI Canada legacy performance options during the three and six months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> Three Months Ended** | **For the<br> Three Months Ended** | **For the<br> Six Months Ended** | **For the<br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Research and development | $- | $116004 | $- | 116004 |
| **Total share-based compensation** | $**-**  | $**116004** | $**-**  | $**116004** |

---

As of June 30, 2025, and December 31, 2024, there was no unrecognized share-based compensation expense relating to service condition awards.

The following table summarizes ACI Canada legacy performance option activity for the Company:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** | **Aggregate<br> Intrinsic<br> Value<sup>(1)</sup>** |
| **Balance, December 31, 2024** | **265642** | **0.22** | **3.48** | **1506321** |
| **Balance, June 30, 2025** | **265642** | **0.22** | **2.98** | **2420129** |
| **Options exercisable, June 30, 2025** | **258362** | $**0.22** | **2.96** | $**2354027** |

---

***(1)*** The aggregate intrinsic values were calculated as the difference between the exercise price of the options and the closing price of the Company's common share. The calculation excludes options with an exercise price higher than the closing price of the Company's shares on the reporting date

A summary of the ACI Canada legacy performance options outstanding at June 30, 2025, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Options Outstanding** | **Options Exercisable** | **Exercise Price** | **Expiry Date** |
| 36000 | 36000 | $0.025 | February 1, 2026 |
| 27642 | 27642 | $0.25 | December 31, 2027 |
| 122000 | 121120 | $0.25 | September 1, 2028 |
| 80000 | 73600 | $0.25 | June 1, 2029 |
| **265642** | **258362** |  |  |

---

**NOTE 11 – CMS LICENSE AND COLLABORATION AGREEMENT**

On January 8, 2025 (the "Effective Date"), the Company entered into a License, Collaboration and Distribution Agreement (the "CMS License Agreement") with CMS International Development and Management Limited ("CMS"), pursuant to which the Company granted CMS an exclusive, transferable, sub-licensable, and royalty-bearing license to develop, register, manufacture, import, export, and commercialize ZUNVEYL (the "Product") in the Asia-Pacific region (excluding Japan), Australia, and New Zealand (the "Territory"). ZUNVEYL is a next generation acetylcholinesterase inhibitor approved in the US for the treatment of mild-to-moderate Alzheimer's disease.

Under the terms of the CMS License Agreement, the Company received a one-time, non-refundable, non-creditable upfront payment of $3.0 million in January 2025 and is eligible to receive up to $11.0 million in development and regulatory milestone payments, as well as up to $30.0 million in sales milestone payments. In addition, CMS is obligated to pay annual royalties of 9% on net sales within the defined royalty term.

The CMS License Agreement remains in effect for an initial term of 20 years from the Effective Date and will automatically renew for additional five-year terms unless either party provides notice of non-renewal at least six months prior to the expiration of the then-current term.

The total transaction price at inception was determined to consist of the $3.0 million upfront payment. The Company identified two distinct performance obligations: (1) the license to the Company's pharmaceutical intellectual property, and (2) certain regulatory, technical, and clinical assistance to be provided by the Company and the Joint Steering Committee, which includes representatives from both the Company and CMS, through the expected commercialization of the Product. The upfront payment of $3 million was allocated to the identified performance obligations based on their relative standalone selling prices (SSPs). The SSP for the license was determined using the residual method due to the highly variable nature of similar license transactions, while the SSP for services was based on estimated costs plus a margin.

 ***License of Intellectual Property***

 ****

The license to the Company's intellectual property represents a distinct performance obligation. The license was transferred to CMS on the Effective Date to satisfy this performance obligation. The Company allocated $2,525,900 of the total transaction price to the license and recognized the corresponding revenue in the first quarter of 2025.

***Regulatory, Technical, and Clinical Assistance***

 ****

The Company's promise to provide supporting services, whether directly or in participation with the Joint Steering Committee, to CMS is expected to be primarily fulfilled during the early stages of the contract through commercialization of the Product. These services represent a distinct performance obligation and will be recognized over time as the services are rendered. Based on estimated effort and project timelines, $223,300 of revenue was allocated to be recognized ratably over the first year 2025, with $192,500 expected to be recognized in 2026 and $58,300 in 2027. As of June 30, 2025, the Company recognized $111,650 of revenue related to these services.

***Development and Regulatory Milestone Payments***

 ****

The potential development and regulatory milestone payments are contingent upon the occurrence of certain milestones as defined in the CMS License Agreement. These payments have been fully constrained until the Company concludes that achievement of the milestone is probable and that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods. As such, they have been excluded from the transaction price. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of each milestone and any related constraint and, if necessary, adjust its estimate of the overall transaction price. The updated transaction price will be allocated to the two identified performance obligations based on estimated SSP. As of June 30, 2025, the Company has not recognized any revenue associated with the development and regulatory milestones.

***Sales Milestone Payments and Royalties***

 ****

Any consideration related to sales milestones or royalties will be recognized if and when the related sales occur as such amounts are determined to relate predominantly to the license granted to CMS. Accordingly, this consideration has been excluded from the transaction price. No allocation to performance obligations will be performed, as both the license and related assistance are expected to be satisfied by the time sales milestones and royalties are earned. No sales milestone or royalty revenue was recognized as of June 30, 2025.

As of June 30, 2025, no amounts were due from CMS, and no receivables or contract assets had been recorded in relation to the CMS License Agreement.

**NOTE 12 – RELATED PARTY TRANSACTIONS AND BALANCES**

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel include the Company's executive officers and members of its Board of Directors.

In February 2021, the Company signed a consulting agreement with Michael McFadden, CEO of the Company, requiring an annual base compensation of $500,000. A new employment agreement was signed in March 2022 which included in the agreement is a provision for termination payment without just cause of:

&nbsp;&nbsp;&nbsp;&nbsp;a) Severance payments for a period of twelve months with the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Months 1 through 6: 100% of annual base salary;

ii) Months 7 through 9: 50% of annual base salary; and

iii) Months 10 through 12: 25% of annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;b) Bonus severance equal to the average of bonuses paid of the two most recent full fiscal years prior to termination plus the bonus that would have been paid in the fiscal year of termination.

Also included in the agreement is a provision for termination payment due to a change of control, the CEO will receive:

&nbsp;&nbsp;&nbsp;&nbsp;a) a cash payment equal to the annual base salary;

&nbsp;&nbsp;&nbsp;&nbsp;b) a full bonus payable in cash immediately, irrespective of whether targets have been met; and

&nbsp;&nbsp;&nbsp;&nbsp;c) continuation of healthcare benefits for twelve months from date of change of control event.

On February 18, 2025, the Company increased Mr. McFadden's annual base compensation to $625,000.

In April 2022, Mr. McFadden was granted the ability to earn up to 327,830 bonus rights of which 65,566 bonus rights had been earned as of June 30, 2025 (Note 9). The value of these bonus rights was determined to be $134,958 and $74,587 as of June 30, 2025, and December 31, 2024, respectively, and is included in other liabilities.

In May 2021, the Company hired Lauren D'Angelo as the Company's Chief Commercial Officer. In 2023 Ms. D'Angelo was promoted to Chief Operating Officer of the Company. The employment agreement signed in May 2021 with Ms. D'Angelo requires an annual base compensation currently at $420,000 and includes a provision for a termination payment due to a change of control as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a) a cash payment equal to the annual base salary;

&nbsp;&nbsp;&nbsp;&nbsp;b) a full bonus payable in cash immediately, irrespective of whether targets have been met; and

&nbsp;&nbsp;&nbsp;&nbsp;c) continuation of healthcare benefits for twelve months from date of change of control event.

On February 18, 2025, the Company increased Ms. D'Angelo's annual base compensation to $500,000.

In May 2022, Ms. D'Angelo was granted the ability to earn up to 42,618 bonus rights of which 29,505 bonus rights had been earned as of June 30, 2025 (Note 9). The value of these bonus rights was determined to be $52,893 and $28,196 as of June 30, 2025, and December 31, 2024, respectively, and is included in other liabilities.

As of June 30, 2025, and December 31, 2024, $397,644 and $799,941, respectively, is owing to directors and officers of the Company and has been included in accounts payable and accrued liabilities. These balances are in relation to fees and management compensation and are non-interest bearing, unsecured and due on demand.

As of June 30, 2025, and December 31, 2024, the Company owed NLS $nil and $911,463 respectively. During the six months ended June 30, 2025, and 2024, the Company recorded interest expense and amortization of the premium, included in accretion expense, of $4,894 and $37,754, respectively (Note 7).

Summary of key management personnel compensation:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Six Months Ended** | **For the<br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Management fees and salaries in research and development | $41680 | $372786 |
| Management fees and salaries in selling, general and administrative expenses | 1233828 | 725279 |
| Share-based compensation in research and development | 34434 | 264722 |
| Share-based compensation in selling, general and administrative expenses | 1261617 | 453868 |
| **Total related party transactions** | $**2571559** | $**1816655** |

---

**NOTE 13 – COMMITMENTS AND CONTINGENCIES** 

***ALPHA-1062 Technology***

In March 2015, the Company entered into the Memogain Technology License Agreement ("License Agreement") with NLS for the exclusive right and license to further develop and exploit the ALPHA-1062, formerly Memogain, Technology. The License Agreement set out the consideration as follows:

● The Company assumed all of NLS's obligations under the Memogain Asset Purchase Agreement which consisted of cumulative total payments to Galantos Pharma GmbH of $11,742,000 (EUR 10,000,000), the cumulative total may be increased to $17,613,000 (EUR 15,000,000) subject to certain provisions, involving sub-licensing the ALPHA-1062 technology and Company the receiving an upfront out-licensing payment of no less than $9,394,000 (EUR 8,000,000). Royalty payments, are determined as follows (collectively the "Galantos Royalty Payments"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 3% of the net sales revenue received by the Company from the sale of any products relating to the ALPHA-1062 Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 10% of any sublicensing revenue; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 25% of an upfront payment or milestone payment paid by a sub-licensee to the Company;

● Upon completion of the Galantos Royalty Payments, a royalty payment to NLS of 1% of the revenue received from the ALPHA-1062 Technology by the Company over $100 million per annum; and

● The issuance of a promissory note of $1,400,000 to NLS (Note 7).

The expiration date is twenty years from the Commencement Date (March 15, 2035) or the expiration of the last patent obtained (existing patents extend through 2044) pursuant, whichever event shall last occur, unless earlier terminated pursuant to bankruptcy or insolvency of the licensee; court order against the licensee; or a winding up, liquidation or termination of the existence of the licensee occurs.

As of June 30, 2025, the Company has recognized royalty fees of $797,389, of which $755,944 has been paid.

On January 1, 2016, the Company assumed NLS's obligations under a Royalty Agreement with Galantos Consulting dated August 31, 2013, which consist of cumulative total payments to Galantos Consulting of $2,348,000 (EUR 2,000,000), the cumulative total may be increased to $3,523,000 (EUR 3,000,000) subject to certain provisions, which is to be paid as follows (collectively the "Galantos Consulting Payments"):

● 1% of the net sales revenue received by the Company from the sale of any products relating to the ALPHA-1062 Technology;

● 2% of any sublicensing revenue; and

● 2% of an upfront payment or milestone payment paid by a sub-licensee to the Company.

The termination date is set as the date at which no further payments of any nature are due.

As of June 30, 2025, the Company has recognized royalty fees of $75,994, of which $63,601 has been paid.

***ALPHA-0602 Technology***

In November 2020, the Company entered into a license agreement with NLS for the world-wide exclusive right to the Progranulin ("ALPHA-0602") Technology. In accordance with the agreement, the Company will pay the following:

● $50,000 to NLS before January 15, 2021 (paid);

● a royalty of 1.5% of the commercial sales, capped at $2,000,000, to NLS;

● 10% of any Upfront Payments the Company may receive in the future in excess of $2,000,000.

The ALPHA-0602 Technology license agreement shall terminate 11 years (November 3, 2031) from the Commencement Date, expiration of the last patents, or when full payment has been made, whichever shall first occur.

The total amount payable to NLS under this agreement shall not exceed $2,000,000. Regarding the ALPHA-0602 technology the Company paid $50,000 in January 2021 as per the license agreement. No payments have been made to date under the above NLS world-wide exclusive rights for the royalties or Upfront Payments the Company may receive.

During the year ended December 31, 2024, the Company decided to discontinue development of the ALPHA-0602 technology.

***Spartan Capital Securities, LLC Agreement***

On May 30, 2023, the Company agreed to enter into an ongoing consulting services agreement (the "Spartan Consulting Agreement") for a three-year term with Spartan Capital Securities, LLC ("Spartan"). The services include advising and assisting on potential business development transactions, strategic introductions, assisting management with enhancing corporate and stockholder value, and capital raising advice.

***Legal Proceedings***

During the normal course of business, the Company may become involved in legal claims that may or may not be covered by insurance. Management does not believe that any such claims would have a material impact on the Company's unaudited condensed interim consolidated financial statements.

**NOTE 14 – NET LOSS PER SHARE**

Net loss per common share has been computed on the basis of the weighted-average number of common shares outstanding during the three and six months ended June 30, 2025, and 2024. As the Company was in a loss position for the three and six months ended June 30, 2025, and 2024, basic net loss per share was the same as diluted net loss per share for the periods presented.

The following table sets forth the computation of (loss) earnings per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br> Three Months Ended** | **For the <br> Three Months Ended** | **For the <br> Six Months Ended** | **For the <br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** | **June 30,<br> 2025** | **June 30,<br> 2024** |
| **Numerator** | | | | |
| &nbsp;&nbsp;&nbsp;Net loss – basic and diluted | $(10488952) | $(2115512) | $(12495495) | $(7118223) |
| **Denominator** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average shares used to compute net loss per share, basic and diluted | 16020702 | 6009373 | 16020015 | 5877006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss per share – basic and diluted** | $**(0.65)** | $**(0.35)** | $**(0.78)** | $**(1.21)** |

---

The following potentially dilutive common shares related to outstanding securities for the six months ended June 30, 2025, and 2024 were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive for the period, see below:

---

| | | |
|:---|:---|:---|
|  | **For the <br> Six Months Ended** | **For the <br> Six Months Ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Warrants | 3632630 | 2453315 |
| Common Share options | 2101696 | 815975 |
| ACI Canada legacy performance options | 265642 | 265642 |
| &nbsp;&nbsp;&nbsp;**Total anti-dilutive features** | **5999968** | **3534932** |

---

**NOTE 15 – SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;a) Subsequent to June 30, 2025, the Company granted the following
Common Shares options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) 6,400 Common Shares options to employees of the Company with
an exercise price of $11.24 per share for a period of ten years from date of grant. The options will vest over three years, with
one-third vesting on the first anniversary and then on a quarterly basis for the next two years.

ii) 3,200 Common Shares options to employees of the Company with an exercise price of $9.11 per share for a period of ten years from date of grant. The options will vest over three years, with one-third vesting on the first anniversary and then on a quarterly basis for the next two years.

&nbsp;&nbsp;&nbsp;&nbsp;b) On July 23, 2025, the Company issued 9,090 Common Shares
for the exercise of 9,090 warrants at a price of $7.75 per share for total proceeds of $70,448.

&nbsp;&nbsp;&nbsp;&nbsp;c) On August 6, 2025, the Company issued 128,578 Common Shares
for the exercise of 128,578 warrants at a price of $7.18 per share for total proceeds of $923,190.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements and the accompanying notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024, as previously filed with the Commission. This discussion and analysis contains forward-looking statements and forward-looking information that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements and information as a result of many factors. See section heading "Special Note Regarding Forward-Looking Statements."*

**Overview**

The Company is a commercial stage biopharmaceutical company dedicated to developing treatments for patients suffering from neurodegenerative diseases, such as Alzheimer's disease ("Alzheimer's disease" or "AD"), for which there are limited or no treatment options. The Company focuses on the commercial manufacturing and commercial sales of ZUNVEYL oral tablet formulation. The Company's commercial program for ZUNVEYL is primarily focused on its a long-term care commercial team that can focus on providing key points of differentiation, exploiting key issues with existing AChEI treatments, and franchising potential additional indications and new products.

The Company launched ZUNVEYL on March 17, 2025, and targets the largest volume nursing homes specializing in Alzheimer's Disease, leveraging an account-based sales team with demonstrated success in LTC, positioning ZUNVEYL with Medicare payors, and developing strategic and clinical partnerships with consultant pharmacists and long-term care pharmacies. Alpha Cognition has set the Wholesale Acquisition Cost (WAC) for its latest therapeutic product at $749 per month. This pricing reflects the company's commitment to balancing patient access with the value of innovative healthcare solutions. By establishing a competitive WAC price, Alpha Cognition aims to enhance affordability and ensure patients can benefit from our advanced treatment options. Patients' out-of-pocket cost for treatment with ZUNVEYL will depend on their length of treatment and their insurance. The Company has three additional pre-clinical development programs: ZUNVEYL in combination with memantine for the treatment of moderate-to-severe Alzheimer's disease, ALPHA-1062 sublingual formulation, ALPHA-1062 intranasal ("ALPHA-1062IN") formulation for the treatment of cognitive impairment with mild traumatic brain injury (mTBI; otherwise known as concussion) and ALPHA-0602, ALPHA-0702 & ALPHA-0802, also referred to as 'Progranulin' and 'Progranulin GEM's', for the treatment of neurodegenerative diseases including amyotrophic lateral sclerosis, otherwise known as ALS or Lou Gehrig's disease and spinal muscular atrophy (SMA).

ZUNVEYL, is a patented new innovative product being positioned as a next generation acetylcholinesterase inhibitor for the treatment of Alzheimer's disease, with expected minimal gastrointestinal side effects. ZUNVEYL's active metabolite is differentiated from donepezil and rivastigmine in that it binds neuronal nicotinic receptors, most notably the alpha-7 subtype, which is known to have a positive effect on cognition. ZUNVEYL is in pre-clinical development in combination with memantine to treat moderate to severe Alzheimer's disease, in pre-clinical development with sublingual formulation for patients suffering from dysphagia, and ALPHA-1062IN is intended to be out-licensed for pre-clinical development to study an intranasal formulation for cognitive impairment with mTBI.

Our other pre-clinical stage assets include ALPHA-0602, ALPHA-0702 & ALPHA-0802 (Progranulin and Progranulin GEM's), which are expressed in several cell types in the central nervous system and in peripheral tissues, promotes cell survival, regulates certain inflammatory processes, and play a significant role in regulating lysosomal function and microglial responses to disease. Its intended use for the treatment of neurodegenerative diseases has been patented by the Company and ALPHA-0602 has been granted an Orphan Drug Designation for the treatment of ALS by the FDA. Orphan Drug Designation was provided for ALPHA-0602 by the Office of Orphan Drug Products, FDA on February 2020 based on the Federal Food Drug, and Cosmetic Act, whereby the ALPHA-0602 met the criteria designated in Section 526 of such Act. For a further description see the section entitled "*Business — Government Regulation — Orphan Drug Designation*". The Orphan Drug Designation allows for exclusivity provisions provided the drug is approved first for indication: treatment of amyotrophic lateral sclerosis ALPHA-0702 and ALPHA-0802 are Granulin Epithelin Motifs, ("GEMs"), derived from full length progranulin which have therapeutic potential across multiple neurodegenerative diseases. GEMs have been shown to be important in regulating cell growth, survival, repair, and inflammation. ALPHA-0702 and ALPHA-0802 are designed to deliver this with potentially lower toxicity, and greater therapeutic effect. As the assets are pre-clinical assets and do not add material value to the Company, the Company will not develop these assets further and instead will seek to out-license the assets to interested third parties. Given the early stage of discussion with third parties, the Company cannot assess value to a license agreement.

The Company is the parent company of Alpha Cognition Canada Inc. ("Alpha Canada" or "ACI Canada") which is the parent company of Alpha Cognition USA Inc. ("ACI USA"). As of May 1, 2023, the Company's common shares commenced trading on the CSE under the symbol "ACOG", previously the Company's shares were traded on the TSX-V until April 28, 2023, when the Company had them delisted. As of November 12, 2024, the Company's common shares commenced trading on The Nasdaq Capital Market under the symbol "ACOG". The Company's shares were voluntarily delisted from the CSE on December 17, 2024.

**Operations**

As of June 30, 2025, the Company had a deficit of $88,780,533 (December 31, 2024 – $76,285,038) which has been primarily financed by equity. The Company had $39,463,610 in cash and cash equivalents, including restricted cash, and $3,039,658 in current liabilities (of which $34,464 is payable from the Company's available restricted cash balance) as of June 30, 2025. The Company's continuing operations, as intended, are highly dependent upon its ability to obtain additional funding and eventually generate cash flows. Management is of the opinion that it does have sufficient working capital to fully meet the Company's liabilities and commitments as outlined and planned in the following discussion. Management is of the opinion it will need to raise additional capital to cover upcoming planned Research and Development ("R&D"), commercialization of ZUNVEYL and operating costs. Possible sources of such capital may come from private placements and public offerings of the Company's common shares and funds received from the exercise of warrants and share options. Additionally, the Company will also consider funding that may arise through partnership activities, including royalties, and debt. There is a risk that additional financing will not be available on a timely basis, on terms acceptable, or at all to the Company.

The Company is also contemplating raising capital by pursuing both dilutive and non-dilutive strategic sources of capital to fully execute its commercialization and operating plans following receipt of the NDA approval for ZUNVEYL from the FDA. Any additional capital is expected to further support our planned costs to begin commercial activities including launching U.S. sales of ZUNVEYL in AD

**Reverse Stock Split**

On November 5, 2024, we completed a reverse stock split of our common shares with a stock split ratio of 1-for-25 ("Reverse Stock Split").

Except as otherwise indicated, all references to our common shares, share data, per share data and related information depict the effect of the Reverse Stock Split as if it had occurred at the beginning of the earliest period presented. The Reverse Stock Split combined each twenty five shares of our outstanding common shares into one common share, without any change in the par value per share which will remain no par value, and the Reverse Stock Split correspondingly adjusted, among other things, the number of common shares issuable upon exercise of outstanding options and warrants and the exercise price of such options and warrants and shares issuable upon conversion of preferred stock and other convertible securities. No fractional shares were or will be issued in connection with the Reverse Stock Split, and any fractional shares resulting from the Reverse Stock Split were rounded to the nearest whole share.

**Components of our Results of Operations**

***Research and development***

 ****

Research and development expenses represent costs incurred to conduct research, such as the discovery and development of our product candidates. We recognize all research and development costs as they are incurred unless there is an alternative future use in other research and development projects or otherwise.

Research and development expenses consists primarily of the following:

● costs related to production of clinical supplies and non-clinical materials, including fees paid to contract manufacturers.

● employee-related expenses, which include salaries, benefits, and stock-based compensation.

● other expenses including travel and consulting services.

***General and administrative expenses***

 ****

General and administrative expenses costs consist of personnel costs, other outside professional services including legal, human resources, audit and accounting services, consulting and pre-commercialization expenses, including selling and marketing costs as well attendance to various conferences. Personnel costs consist of salaries, benefits, and share-based compensation. We expect to continue to incur expenses to support our continued operations as a public company, including expenses related to existing and future compliance with rules and regulations of the stock exchanges on which our securities are now traded, insurance expenses, investor relations, audit fees, professional services and general overhead and administrative costs.

 ****

***Foreign exchange gain (loss)***

The foreign exchange gain (loss) amount consists of changes in the value of the Canadian Dollar compared to the U.S. Dollar throughout the year.

**Results of Operations**

***Comparison of the Three Months ended June 30, 2025 and 2024***

 **

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br> Three Months Ended<br> June 30,** | **For the <br> Three Months Ended<br> June 30,** | | |
|  | **2025** | **2024** | **Dollar**<br>**Change** | **Percentage**<br>**Change** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product sales, net | $1576411 | $- | $1576411 | 100% |
| &nbsp;&nbsp;&nbsp;Licensing revenue | 81276 | - | 81276 | 100 |
| **Total revenue** | 1657687 | - | 1657687 | 100 |
| **Cost and Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of product sales, excluding amortization of intangible asset | 440979 |  | 440979 | 100 |
| &nbsp;&nbsp;&nbsp;License royalty cost of sales | 93118 |  | 93118 | 100 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 5386 | 19760 | (14374) | (73) |
| &nbsp;&nbsp;&nbsp;Research and development | 317120 | 967200 | (650080) | (67) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 6538085 | 1434251 | 5103834 | 356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total costs and expenses** | 7394688 | 2421211 | 4973477 | 205 |
| &nbsp;&nbsp;&nbsp;**Loss before other income (expenses)** | (5737001) | (2421211) | (3315790) | 137 |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange (loss) gain | (5530) | (6862) | 1332 | (19) |
| &nbsp;&nbsp;&nbsp;Interest income | 425026 | 2160 | 422866 | 19577 |
| &nbsp;&nbsp;&nbsp;Grant income |  | 138561 | (138561) | (100) |
| &nbsp;&nbsp;&nbsp;Interest expense | 644 | (15216) | 15860 | (104) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on warrant liabilities | (5172091) | 187056 | (5359147) | (2865) |
| &nbsp;&nbsp;&nbsp;**Total other income (expense)** | (4751951) | 305699 | (5057650) | (1654) |
| &nbsp;&nbsp;&nbsp;**Net loss and comprehensive loss** | $(10488952) | $(2115512) | (8373440) | 396 |
| **Net loss per share, basic and diluted** | $(0.65) | $(0.35) | $(0.30) | 86 |
| **Weighted-average shares used to compute net loss per share, basic and diluted** | 16020702 | 6009373 | 10011329 | 167% |

---

***Comparison of the Six Months ended June 30, 2025 and 2024***

 ****

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br> Six Months Ended<br> June 30,** | **For the <br> Six Months Ended<br> June 30,** | | |
|  | **2025** | **2024** | **Dollar**<br>**Change** | **Percentage**<br>**Change** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product sales, net | $1923340 | $- | $1923340 | 100% |
| &nbsp;&nbsp;&nbsp;Licensing revenue | 2663001 | - | 2663001 | 100 |
| **Total revenue** | 4586341 | - | 4586341 | 100 |
| **Cost and Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of product sales, excluding amortization of intangible asset | 467520 |  | 467520 | 100 |
| &nbsp;&nbsp;&nbsp;License royalty cost of sales | 903118 |  | 903118 | 100 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 10773 | 40354 | (29581) | (73) |
| &nbsp;&nbsp;&nbsp;Research and development | 724631 | 1883916 | (1159285) | (62) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 11903732 | 4908459 | 6995273 | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total costs and expenses** | 14009774 | 6832729 | 7177045 | 105 |
| &nbsp;&nbsp;&nbsp;**Loss before other income (expenses)** | (9423433) | (6832729) | (2590704) | 38 |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange (loss) gain | (6487) | (21491) | 15004 | (70) |
| &nbsp;&nbsp;&nbsp;Interest income | 895702 | 14230 | 881472 | 6194 |
| &nbsp;&nbsp;&nbsp;Grant income | 71095 | 272340 | (201245) | (74) |
| &nbsp;&nbsp;&nbsp;Interest expense | (8163) | (23474) | 15311 | (65) |
| &nbsp;&nbsp;&nbsp;Impairment of intangible assets |  | (39166) | 39166 | (100) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on warrant liabilities | (4024209) | (432933) | (3591276) | 830 |
| &nbsp;&nbsp;&nbsp;Provision for loan losses | - | (55000) | 55000 | (100) |
| &nbsp;&nbsp;&nbsp;**Total other income (expense)** | (3072062) | (285494) | (2786568) | 976 |
| &nbsp;&nbsp;&nbsp;**Net loss and comprehensive loss** | $(12495495) | $(7118223) | (5377272) | 76 |
| **Net loss per share, basic and diluted** | $(0.78) | $(1.21) | $0.43 | (36) |
| **Weighted-average shares used to compute net loss per share, basic and diluted** | 16020015 | 5877006 | 10143009 | 173% |

---

***Research and development expenses***

 

***Comparison of Research and Development for the Three Months ended June 30, 2025 and 2024***

Research and development expenses decreased by $650,080, or 67%, from $967,200 for the three months ended June 30, 2024, to $317,120 for the three months ended June 30, 2025. The decrease is primarily due to lower product development costs of approximately $175,000, and less time allocated to management and employees, which resulted in lower management fees and salaries, share-based compensation and employees of approximately $358,000. The Company reduced time in research and development after the FDA approval in July 2024.

***Comparison of Research and Development for the Six Months ended June 30, 2025 and 2024***

Research and development expenses decreased by $1,159,285, or 62%, from $1,883,916 for the six months ended June 30, 2024, to $724,631 for the six months ended June 30, 2025. The decrease is primarily due to lower product development costs of approximately $424,000, and less time allocated to management and employees, which resulted in lower management fees and salaries, share-based compensation and employees of approximately $602,000. The Company reduced time in research and development after the FDA approval in July 2024.

***General and administrative expenses***

***Comparison of General and Administrative Expenses for the Three Months ended June 30, 2025 and 2024***

General and administrative expenses increased by $5,103,834 or 356%, from $1,434,251 for the three months ended June 30, 2024, to $6,538,085, for the three months ended June 30, 2025. Commercial operations, consulting fees, management fees and salaries, employee costs and other general and administrative costs increased by approximately $3,691,000, in support of the Company's expansion in commercial operations and launch of ZUNVEYL. Share-based compensation increased by approximately $1,315,000 primarily due to the grant options issued during the six months ended June 30, 2025.

***Comparison of General and Administrative Expenses for the Six Months ended June 30, 2025 and 2024***

General and administrative expenses increased by $6,995,273 or 346%, from $4,908,459 for the six months ended June 30, 2024, to $11,903,732, for the six months ended June 30, 2025. Commercial operations, management fees and salaries, employee costs, marketing and other general and administrative costs increased by approximately $6,186,000, in support of the Company's expansion in commercial operations and launch of ZUNVEYL. Share-based compensation increased by approximately $2,377,000 primarily due to the grant options issued during the six months ended June 30, 2025. Consulting fees decreased by approximately $1,657,000 due to reduction in services for raising capital.

***Interest Income***

Interest income consists of interest earned on the Company's cash.

Interest income increased $422,866 or 19,577% from $2,160 for the three months ended June 30, 2024, to $425,026 for the three months ended June 30, 2025. Interest income increased $881,472 or 6,194% from $14,230 for the six months ended June 30, 2024, to $895,702 for the six months ended June 30, 2025.

***Grant Income***

The Company received grant revenue from the Army Medical Research and Material Command on June 5, 2023, for a pre-clinical study on the use of the ALPHA-1062 Intranasal to reduce blast of mTBI induced functional deficit and brain abnormalities. During the three months ended June 30, 2025, and 2024, the Company recorded grant income of $nil and $138,561, respectively. During the six months ended June 30, 2025, and 2024, the Company recorded grant income of $71,095 and $272,340, respectively.

***Change in Fair Value of Derivatives***

The Company uses the Black-Scholes Option Pricing Model to determine the fair value of stock options, standalone share purchase warrants issued and derivative liability. This model requires the input of subjective assumptions including expected share price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect the fair value estimate and the Company's earnings (loss) and equity reserves.

The loss of $5,172,091 for the three months ended June 30, 2025, for the fair value of the warrant liabilities was a net change of $5,359,147, or 2,865%, compared to a gain of $187,056 for the three months ended June 30, 2024. The loss of $4,024,209 for the six months ended June 30, 2025, for the fair value of the warrant liabilities was a net change of $3,591,276, or 830%, compared to a loss of $432,933 for the six months ended June 30, 2024. The change was primarily due to the additional derivatives from the conversion of the convertible debentures and US IPO in November 2024 and the fluctuation in the Company's stock price.

 **

**Liquidity and Capital Resources**

 

***Sources of Liquidity***

The Company does not have operating revenue to finance its existing obligations and therefore must continue to rely on external financing to generate capital to maintain its capacity to meet working capital requirements. The Company has relied on debt and equity raises to finance its operating activities since incorporation. The Company expects to continue to rely on debt and the issuance of shares, and possibly other non-dilutive financing options to finance its ongoing operations and plans for commercialization of ZUNVEYL. However, there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company.

 ****

***Future Funding Requirements***

We expect our expenses to increase substantially in connection with our ongoing activities, particularly as we continue the commercialization of ZUNVEYL, following the FDA's approval in July 2024 and potentially seek to discover and develop additional product candidates, conduct our ongoing and planned clinical trials and preclinical studies, continue our R&D activities, utilize third parties to manufacture ZUNVEYL, hire additional personnel, expand and protect our intellectual property, and incur additional costs associated with being a public company.

Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses, and prepaid expenses. The timing and amount of our funding requirements will depend on many factors, including:

● the initiation, type, number, scope, progress, expansions, results, costs and timing of clinical trials and preclinical studies of ZUNVEYL and any future product candidates we may choose to pursue, including the costs of modification to clinical development plans based on feedback that we may receive from regulatory authorities and any third-party products used as combination agents in our clinical trials;

● the costs, timing and outcome of regulatory meetings and reviews of ZUNVEYL or any future product candidates, including requirements of regulatory authorities in any additional jurisdictions in which we may seek approval for ZUNVEYL and any future product candidates;

● the costs of obtaining, maintaining, enforcing and protecting our patents and other intellectual property and proprietary rights;

● our efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal control over financial reporting;

● the costs associated with hiring additional personnel and consultants as our business grows, including additional executive officers and clinical development, regulatory, CMC quality and commercial personnel;

● the costs and timing of establishing or securing sales and marketing capabilities of any future product candidate approval;

● our ability to achieve sufficient market acceptance, coverage, and adequate reimbursement from third-party payors and adequate market share and revenue for any approved products;

● our ability and strategic decision to develop future product candidates other than ZUNVEYL, and the timing of such development, if any;

● patients' willingness to pay out-of-pocket for any approved products in the absence of coverage and/or adequate reimbursement from third-party payors;

● the terms and timing of establishing and maintaining collaborations, licenses and other similar arrangements; and

● costs associated with any products or technologies that we may in-license or acquire.

Based upon our current operating plan, we estimate that our existing cash, cash equivalents and marketable securities as of the date of this filing, will be sufficient to fund our projected base ongoing operating expenses, the initial costs to prepare for commercialization of ZUNVEYL in AD, planned CMC costs, ongoing operating costs and capital expenditures through at least the next 24 months. We expect to look to raise additional capital to continue to further advance our commercialization plans and ongoing operating costs. However, we have based our estimates on assumptions that may prove to be wrong, and our operating plan may change as a result of many factors currently unknown to us. In addition, we could utilize our available capital resources sooner than we expected. The Company is also contemplating raising additional capital by pursuing both dilutive and non-dilutive strategic sources of capital; to fully execute its commercial and operating plans following receipt of the NDA approval for ZUNVEYL from the FDA. Any additional capital would further support our planned costs to begin commercial activities including launching U.S. sales of ZUNVEYL in AD.

We have no other committed sources of capital. Until such time, if ever, we can generate substantial product revenue, we expect to finance our operations through equity offerings, debt financings, or other capital sources, including current or potential future collaborations, licenses, royalties and other similar arrangements. We do not know what the terms of these future financings will be and whether they will be acceptable to the us or not and, therefore, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. To the extent we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions, engaging in acquisition, merger or collaboration transactions, selling or licensing our assets, making capital expenditures, redeeming our stock, making certain investments or declaring dividends. If we raise additional funds through collaborations or license agreements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves, or even cease operations.

*Recent capital raising activities*

On September 24, 2024, the Company announced the closing of a $4.545 million bridge financing through the issuance of convertible notes and warrants led by existing investors and select new investors comprised of institutional funds and high-net-worth accredited investors.

● The notes are convertible into common shares of the Company at a conversion price of $10.55 per share. The notes were set to mature on September 24, 2026, had an aggregate face value of $4.545 million and bears interest at a rate of 10% per annum paid in common shares of the Company at the conversion price, subject to certain limitations. The notes were subject to mandatory conversion into common shares of the Company in conjunction with the closing of an offering of securities of the Company for at least $10 million in aggregate gross proceeds in coordination with the simultaneous uplisting of the common shares of the Company onto a United States national securities exchange (a "Qualified Offering"). Such conversion was completed into the securities offered in such Qualified Offering at the lower of (i) the conversion price in effect at such time and (ii) the offering price of the securities in the Qualified Offering. The notes were unsecured and rank senior to the Company's other indebtedness.

● The notes were sold along with warrants to purchase common shares of the Company at an exercise price of $10.55 for a five-year term. Each investor received warrants sufficient to purchase such number of common shares equal to the principal amount of notes such investor purchased divided by the conversion price of the notes. Each investor will receive an additional 50% of warrants with identical terms upon the closing of a Qualified Offering, as described above. The exercise price of the warrants is subject to adjustment upon the completion of a Qualified Offering to the lower of (i) the then existing exercise price, (ii) the exercise price of any common share purchase warrants issued in the Qualified Offering or (iii) if no common share purchase warrants are issued in the Qualified Offering, the closing price of the common shares on the Canadian Securities Exchange (as converted into U.S. dollars) immediately prior to the pricing news release of the Qualified Offering.

On November 13, 2024, the Company completed a public offering of common shares by issuing 8,695,653 common shares at a public offering price of $5.75 per share for gross proceeds of approximately $50 million. In connection with the US public offering, the Company's Common Shares began trading on The Nasdaq Capital Market on November 12, 2024.

The completion of the public offering of common shares was a "Qualified Offering" under the Company's convertible notes, which automatically converted into 801,413 common shares at closing of the public offering at a price of $5.75 per share, being the public offering price in the Qualified Offering. The amount converted consisted of the converted principal amount of convertible notes and interest through November 13, 2024.

Additionally, as a result of the closing of the Qualified Offering, the Company issued an additional 215,418 warrants exercisable to acquire 215,421 Common Shares with an exercise price of $7.19 per share and the exercise price of the Company's existing 430,835 warrants issued in connection with the offering of the convertible notes was repriced from $10.55 per share to $7.19 per share.

On December 12, 2024, the underwriter of the Company's underwritten U.S. public offering partially exercised its over-allotment option to purchase an additional 488,506 common shares at the public offering price of $5.75 per share for additional gross proceeds of $2.8 million.

***Financing Activities***

**Cash Flows**

The following table provides information regarding our cash flows for the six months ended June 30, 2025, and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br> Six Months Ended <br> June 30,** | **For the <br> Six Months Ended <br> June 30,** | | |
|  | **2025** | **2024** | **Dollar**<br>**Change** | **Percentage**<br>**Change** |
| **Consolidated Statement of Cash Flows Data** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash used in operating activities | $(8183776) | $(3873814) | $(4309962) | 111% |
| &nbsp;&nbsp;&nbsp;Cash used in investing activities | $(71585) | $- | $(71585) | 100% |
| &nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | $(845111) | $3573424 | $(4418535) | (124)% |
| &nbsp;&nbsp;&nbsp;Share-based compensation | $2902943 | $723412 | $2179531 | 301% |

---

***Cash provided by/(used in) operating activities***

Cash used in operating activities increased by $4,309,962 to $8,183,776 for the six months ended June 30, 2025, from $3,873,814 for the comparative period. The change in cash flows from operating activities represents the effect on cash flows from net losses adjusted for items not affecting cash, principally amortization and depreciation, accrued expenditures for government grant, share-based compensation, impairment of intangible assets, provision for loan losses, shares issued for services, and the changes in the value of conversion feature liability, warrant liabilities, and bonus rights liability, in addition to net changes in non-cash balances related to working capital items.

 **

***Cash used in investing activities***

 **

Cash used in investing activities increased by $71,585 to $71,585 for the six months ended June 30, 2025, from $nil compared to the comparative period. During the six months ended June 30, 2025, investing activities consisted of acquiring equipment due expansion of commercial activity.

 ****

***Cash provided by/(used in) financing activities***

Cash provided by financing activities for the six months ended June 30, 2025, decreased by $4,418,535 compared to the comparative period. During the six months ended June 30, 2025, financing activities was primarily due to the principal repayment of the promissory note of $911,463 and receiving $174,675 in government grant proceeds offset by $134,146 of related grant expenses. During the six months ended June 30, 2024, financing activities primarily consisted of raising proceeds of $3,732,469 from units issued for cash, proceeds of $160,000 from the exercise of warrants and receiving $290,825 in government grant proceeds offset by $205,917 of related expenses.

**Contractual Obligations and Other Commitments**

In the normal course of business, we enter into agreements with contract service providers to assist in the performance of R&D and clinical and commercial manufacturing activities. We currently have two license agreements, ALPHA-1062 technology and ALPHA-602 technology, which are outlined below. We expect to enter into additional clinical development, contract research, clinical and commercial manufacturing, supplier, and collaborative research agreements in the future, which may require upfront payments and long-term commitments of capital resources.

 ****

See "Note 13 – Commitments and Contingencies" of the accompanying financial statements for a discussion of our contractual obligations and long-term commitments.

 ****

**Critical Accounting Estimates**

Our management's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with US GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated financial statements and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates.

 ****

***Use of Estimates and Assumptions***

There have been no significant changes to our critical accounting estimates since December 31, 2024. For a description of our critical accounting estimates and significant judgments used in the preparation of our condensed consolidated financial statements, refer to Note 2 to our Condensed Consolidated Financial Statements included in this Quarterly Report, as well as Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report and Note 2 to our audited Consolidated Financial Statements contained in our 2024 Annual Report.

**Emerging Growth Company Status and Smaller Reporting Company Status**

We are an emerging growth company, as defined in the JOBS Act. The JOBS Act permits an emerging growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards. We have elected to avail ourselves of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we can adopt the new or revised standard at the time private companies adopt the new or revised standard and may do so until such time that we either (i) irrevocably elect to opt out of such extended transition period or (ii) no longer qualify as an emerging growth company. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies. We will continue to remain an emerging growth company until the earliest of the following: (1) the last day of the fiscal year following the fifth anniversary of the date of the effectiveness of the Registration Statement on Form S-1 of which this prospectus form a part; (2) the last day of the fiscal year in which our total annual gross revenue is equal to or more than $1.235 billion; (3) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (4) the date on which we are deemed to be a large accelerated filer under the rules of the SEC.

We are also a smaller reporting company as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

**ITEM 4. CONTROLS AND PROCEDURES.**

**Disclosure Controls and Procedures**

At the end of the period covered by this quarterly report on Form 10-Q for the six months ended June 30, 2025, an evaluation was carried out under the supervision of and with the participation of our management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act). Based on that evaluation, the CEO and the CFO have concluded that as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective in ensuring that: (i) information required to be disclosed by us in reports that we file or submit to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for accurate and timely decisions regarding required disclosure.

**Changes in Internal Control over Financial Reporting**

There has been no change in our internal control over financial reporting during the six months ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II**

**ITEM 1. LEGAL PROCEEDINGS.**

From time to time, we are involved in various legal proceedings arising from the normal course of business activities. We are not currently a party to any material legal proceedings. However, from time to time, we may become involved in other litigation or legal proceedings relating to claims arising from the ordinary course of business.

**ITEM 1A. RISK FACTORS.**

There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

None.

**Repurchase of Equity Securities**

During the six months ended June 30, 2025, the Company did not repurchase any of its equity securities.

**Use of Proceeds**

On November 13, 2024, the Company completed a public offering of common shares by issuing 8,695,653 common shares at a public offering price of $5.75 per share for gross proceeds of approximately $50 million and net proceeds, after deducting discounts and commissions and estimated offering expenses payable by us, of approximately $46.15 million. The initial public offering was completed pursuant to the Company's registration statement on Form S-1 (333-280196) which was brought effective by the SEC on November 8, 2024, registering 8,695,653 common shares and pre-funded warrants to purchase up to 8,695,653 common shares to gross aggregated proceeds of $50 million. No pre-funded warrants were sold in the offering. Titan Partners Group acted as the managing underwriter for the offering. In connection with the offering, the Company paid Titan Partners Group an underwriting discount of approximately $3 million and a non-accountable expense allowance of $500,000. We also paid Spartan Capital Partners, LLC an investment banking fee of $500,000. We paid an aggregate total of approximately $350,000 in other expenses, including expense reimbursement to Titan Partners Group, legal and accounting fees, transfer agent fees and printing costs.

Consistent with the Company's described use of proceeds in its registration statement, to date the Company has spent approximately $5.59 million of its net proceeds to begin our efforts toward our commercialization and launch of ZUNVEYL formerly known as ALPHA-1062 in Alzheimer's disease; approximately $1.33 million for continued commercial CMC activities (chemistry, manufacturing, and controls); approximately $0.91 million on repayment of outstanding loan and approximately $4.02 million for working capital and general corporate purposes. As of June 30, 2025, the Company has approximately $34.3 million of the net proceeds remaining in the bank.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

None.

**ITEM 4. MINE SAFETY DISCLOSURE.**

Not applicable.

**ITEM 5. OTHER INFORMATION.**

(a) None.

(b) None.

(c) During the quarter ended June 30, 2025, none of our directors or officers adopted, modified, or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

**ITEM 6. EXHIBITS.** 

 ****

The following exhibits are filed as part of this report:

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| | |
|:---|:---|
| **Exhibit <br> Number** | **Description** |
| 3.1 | [Notice of Articles, previously filed as Exhibit 3.1 to the Company's Form S-1 filed with the SEC on June 14, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024037413/ea020125504ex3-1_alphacog.htm) |
| 3.2 | [Articles, previously filed as Exhibit 3.1 to the Company's Form 8-K filed with the SEC on October 3, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024085098/ea021664701ex3-1_alpha.htm) |
| 4.1 | [Specimen common share certificate, previously filed as Exhibit 4.1 to the Company's Form S-1 filed with the SEC on June 14, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024037413/ea020125504ex4-1_alphacog.htm) |
| 42 | [Escrow Agreement by and between the Company, Computershare Investor Services Inc. and certain stockholders of the Company dated March 18, 2021, previously filed as Exhibit 4.2 to the Company's Form S-1 filed with the SEC on June 14, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024037413/ea020125504ex4-2_alphacog.htm) |
| 4.3 | [Form of Warrant issued September 24, 2024, previously filed as Exhibit 10.3 to the Company's Form 8-K filed with the SEC on September 25, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024081586/ea021557601ex10-3_alpha.htm) |
| 4.4 | [Form of Convertible Note issued September 24, 2024, previously filed as Exhibit 10.2 to the Company's Form 8-K filed with the SEC on September 25, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024081586/ea021557601ex10-2_alpha.htm) |
| 4.5 | [Form of Pre-Funded Warrant, previously filed as Exhibit 4.5 to the Company's Form S-1/A filed with the SEC on October 25, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024090875/ea020729606ex4-5_alpha.htm) |
| 4.6 | [Form of Underwriters Warrant, previously filed as Exhibit 4.6 to the Company's Form S-1/A filed with the SEC on October 25, 2024 and incorporated herein by reference (File No. 333-280196)](https://www.sec.gov/Archives/edgar/data/1655923/000121390024090875/ea020729606ex4-6_alpha.htm) |
| 31.1\* | [Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended](ea025049701ex31-1_alpha.htm) |
| 31.2\* | [Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended](ea025049701ex31-2_alpha.htm) |
| 32.1\* | [Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea025049701ex32-1_alpha.htm) |
| 32.2\* | [Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea025049701ex32-2_alpha.htm) |
| 101.INS<sup>(1)</sup> | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH<sup>(1)</sup> | XBRL Taxonomy Extension – Schema |
| 101.CAL<sup>(1)</sup> | XBRL Taxonomy Extension – Calculations |
| 101.DEF<sup>(1)</sup> | XBRL Taxonomy Extension – Definitions |
| 101.LAB<sup>(1)</sup> | XBRL Taxonomy Extension – Labels |
| 101.PRE<sup>(1)</sup> | XBRL Taxonomy Extension – Presentations |
| 104 | Cover Page Interactive Data File––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |

---

\* Filed herewith

(1) Submitted electronically herewith. Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Income (Loss) for the six months ended June 30, 2025 and 2024, (ii) Condensed Consolidated Balance Sheets at June 30, 2025 and December 31, 2024, (iii) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024, and (iv) Notes to Condensed Consolidated Financial Statements.

**SIGNATURES**

Pursuant to the requirements of the *Securities Exchange Act of 1934*, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ALPHA COGNITION INC.** <br> (Registrant) | **ALPHA COGNITION INC.** <br> (Registrant) |
| Dated: August 14, 2025 | By: | /s/ *Michael McFadden* |
|  |  | Michael McFadden, |
|  |  | Chief Executive Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael McFadden, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Alpha Cognition Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| /s/ Michael McFadden |
| Michael McFadden |
| Chief Executive Officer |

---

(Principal Executive Officer)

## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Henry Du, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Alpha Cognition Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| /s/ Henry Du |
| Henry Du |
| Interim Chief Financial Officer |

---

(Principal Financial and Accounting Officer)

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Alpha Cognition Inc. (the "Company") on Form 10-Q for the quarterly period ended June 30, 2025, as filed with the United States Securities and Exchange Commission on the date hereof (the "Report"), I, Michael McFadden, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents,
in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2025

---

| |
|:---|
| /s/ Michael McFadden |
| Michael McFadden |
| Chief Executive Officer |

---

(Principal Executive Officer)

## Exhibit 32.2

**Exhibit 32.2**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Alpha Cognition Inc. (the "Company") on Form 10-Q for the quarterly period ended June 30, 2025, as filed with the United States Securities and Exchange Commission on the date hereof (the "Report"), I, Henry Du, Interim Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents,
in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2025

---

| |
|:---|
| /s/ Henry Du |
| Henry Du |
| Interim Chief Financial Officer |

---

(Principal Financial and Accounting Officer)