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Cognition Therapeutics Inc

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Cognition Therapeutics Inc AI Insights

Informational only. Not investment advice.
As of 2026-06-02

Snapshot

  • Zero revenue (TTM) with 32.5M R&D spend — pure clinical-stage burn. Cash of 31.1M vs -20.3M FCF gives ~18 months runway.[Free Cash Flow]
  • Market cap 120.8M at 4.0x P/B (TTM) on 29.9M tangible book — priced entirely on pipeline optionality, not assets.[Price-to-Book Ratio]
  • Debt/equity of 0.02 (TTM) with only 465K total debt — balance sheet is clean but shrinking at 20M/yr.[Debt-to-Equity]

Watch Triggers

  • Cash and Equivalents: Falls below 20MBelow 20M = <12 months runway at current burn, forcing emergency dilutive raise at weak terms
  • Issuance of Capital Stock: Any non-zero value appearsSignals dilution timing and magnitude — size relative to market cap determines shareholder impact
  • Research and Development: Drops below 25M annualized or spikes above 40MDrop signals trial wind-down (bearish); spike signals late-stage advancement (bullish but accelerates burn)

Bull Case

EV of 90.2M implies market assigns only ~59M to pipeline after netting 31.1M cash — a cheap option on clinical success in neuroscience, where peak sales multiples are typically 5-10x.

Enterprise ValueCash and EquivalentsResearch and Development

Near-zero debt (465K, D/E 0.02 TTM) and 29.8M working capital provide clean balance sheet flexibility for partnership deals without lender constraints.

Debt-to-EquityWorking CapitalTotal Debt

Bear Case

At -20.3M FCF (TTM) with 31.1M cash, runway is ~18 months. Dilutive equity raise is near-certain — current shareholders face 30-50%+ dilution based on prior biotech patterns.

Free Cash FlowCash and EquivalentsIssuance of Capital Stock

4.0x P/B (TTM) on a shrinking book value (ROE -92.8%) means the premium erodes quarterly. Any trial setback collapses valuation toward cash per share (~$0.35).

Price-to-Book RatioReturn on EquityBook Value Per Share

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
35%

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Forward Thesis

Cash runway exhausted by late 2027 forces dilutive raise or partnership within 12-18 months

1-3yhigh
  • 31.1M cash vs -20.3M annual FCF burn rate (TTM)
  • No capital stock issuance in latest period signals timing pressure
  • R&D of 32.5M (TTM) exceeds total cash reserves trajectory
Cash declined from 37.0M to 31.2M in latest periodFCF TTM of -20.3M with zero revenueIssuance of Capital Stock is 0 in current period

Binary clinical outcome: pipeline success reprices equity multiples higher; failure risks near-zero

1-3ymed
  • 120.8M market cap on zero revenue is 100% pipeline bet
  • EV of 90.2M net of cash implies ~59M pipeline value
  • R&D intensity at 32.5M/yr signals active late-stage programs
EV 90.2M vs tangible book 29.9M (TTM)R&D 32.5M is ~90% of total assets (36.1M)Zero revenue TTM confirms pre-commercial stage

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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