Financial Performance - As of June 30, 2022, the company had an accumulated deficit of $103.6 million and incurred a net loss of $5.8 million for the three months ended June 30, 2022[76]. - The net loss for the three months ended June 30, 2022, was $5.8 million, compared to a net loss of $1.5 million in the same period of 2021, indicating an increase in loss of 253.7%[89]. - Research and development expenses increased to $9.1 million for the three months ended June 30, 2022, up from $4.9 million in the same period of 2021, representing an increase of 85.7%[88]. - General and administrative expenses rose to $3.1 million for the three months ended June 30, 2022, compared to $1.1 million for the same period in 2021, marking an increase of 181.8%[91]. - Total operating expenses for the three months ended June 30, 2022, were $12.2 million, up from $6.0 million in the same period of 2021, reflecting a 103.9% increase[89]. - Research and development expenses for the six months ended June 30, 2022, totaled $15.6 million, up from $9.3 million for the same period in 2021, a 67.6% increase[97]. - General and administrative expenses for the six months ended June 30, 2022, were $6.0 million, compared to $2.2 million for the same period in 2021, an increase of 172.7%[100]. - Grant income for the three months ended June 30, 2022, was $6.4 million, compared to $4.6 million for the same period in 2021, an increase of 38.8%[92]. - Grant income for the six months ended June 30, 2022, was $12.3 million, compared to $9.3 million for the same period in 2021, reflecting a 32.2% increase[101]. Funding and Grants - The company has received approximately $168.9 million in cumulative grant awards, primarily from the National Institute on Aging (NIA), to fund clinical trials[76]. - The company has been awarded grants that extend through May 31, 2025, with specific funding amounts including approximately $81.0 million for a Phase 2 study of CT1812 in early-stage Alzheimer's disease[86]. - The company anticipates needing to raise additional funding in the future to support ongoing and future product development, including commercialization efforts[108]. - The company may face challenges in obtaining additional NIA grants or raising capital, which could adversely affect its business[110]. Cash and Liquidity - The company had cash and cash equivalents of $45.8 million as of June 30, 2022[76]. - As of June 30, 2022, the company had $45.8 million in cash and cash equivalents and has not generated positive cash flows from operations[107]. - Net cash used in operating activities for the six months ended June 30, 2022 was $8.3 million, primarily due to a net loss of $9.6 million[113]. - Net cash used in investing activities for the six months ended June 30, 2022 was $0.1 million related to fixed asset purchases[114]. Operational Challenges - The ongoing COVID-19 pandemic has adversely affected patient enrollment in clinical trials, potentially impacting the company's operations[79]. - The company expects to incur significant and increasing expenses and net losses for the foreseeable future as it advances product candidates through clinical development[78]. - The company anticipates substantial increases in general and administrative expenses due to operating as a public company[85]. Corporate Structure and Compliance - The company completed its IPO on October 13, 2021, issuing 3,768,116 shares at a public offering price of $12.00 per share, resulting in net proceeds of approximately $44.2 million[78]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards until certain conditions are met[124]. - The company will remain an emerging growth company until it achieves at least $1.07 billion in annual revenue or the market value of its common stock exceeds $700 million[124]. - There were no changes in internal control over financial reporting during the quarter ended June 30, 2022, that materially affected the internal control[127]. - The management evaluated the effectiveness of disclosure controls and procedures and concluded they were effective as of the end of the reporting period[126]. - The company does not expect its disclosure controls to prevent all errors and fraud due to inherent limitations in control systems[126]. Other Financial Information - Interest expense, net decreased to less than $0.1 million for the three months ended June 30, 2022, down from $0.4 million in the same period of 2021, a reduction of 75%[94]. - The company maintained a full valuation allowance against all deferred tax assets as of June 30, 2022, indicating no expectation of realizing future tax benefits[88]. - The total unrecognized compensation expense related to unvested time-based vesting awards was $9.0 million as of June 30, 2022, expected to be recognized over approximately 2.5 years[123]. - The company has entered into an operating lease for office and laboratory facilities with future minimum lease payments totaling $703,000[116].

Table of Contents 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 March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40886 Cognition Therapeutics, Inc. (Exact name of registrant as specified in its charter) Delaware 13-4365359 ...

Cognition Therapeutics, Inc. (NASDAQ:CGTX) Q4 2021 Earnings Call March 30, 2022 8:00 AM ET Company Participants Daniel Kontoh-Boateng - Investor Relations Lisa Ricciardi - President and Chief Executive Officer Jim O'Brien - Chief Financial Officer Tony Caggiano - Chief Medical Officer and Head of R&D Conference Call Participants Mayank Mamtani - B. Riley Securities Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcrip ...

Financial Performance - The company incurred net losses of $11.7 million and $7.8 million for the years ended December 31, 2021, and 2020, respectively, with an accumulated deficit of $94.0 million as of December 31, 2021[250]. - As of December 31, 2021, the company had $54.7 million in cash and cash equivalents and has not generated positive cash flows from operations[261]. - The company anticipates that the net proceeds from its IPO, along with existing cash and non-dilutive grants, will fund operations into the second half of 2023[261]. - The company may need to raise substantial additional capital to complete the development and commercialization of CT1812 and other product candidates[262]. - The company expects to incur significant expenses and operating losses over the next several years as it conducts ongoing and planned clinical trials for CT1812 and seeks regulatory approval for various age-related diseases[251]. Clinical Development and Regulatory Approval - The company currently has no products approved for sale, with its lead product candidate, CT1812, in early stages of clinical development[290]. - The success of the company is heavily dependent on the successful development, regulatory approval, and commercialization of CT1812, which may take many years[291]. - The FDA may require additional clinical trials for CT1812, which could delay the approval process and limit its market potential[295]. - The company has not yet completed Phase 2 clinical trials and lacks a history of commercializing products, making it challenging for investors to evaluate its business success[255]. - The company may face substantial costs and delays if required to conduct additional clinical trials beyond current plans[310]. Impact of COVID-19 - The ongoing COVID-19 pandemic has caused delays in patient enrollment and retention in clinical trials, impacting the progress of product candidates[276]. - The company has experienced disruptions in clinical trial operations due to COVID-19, including difficulties in recruiting clinical site investigators and staff[277]. - The economic impact of COVID-19 may reduce the company's ability to access capital, negatively affecting liquidity and financial position[287]. - Adjustments to clinical trial protocols have been made to enable remote visits, but these may affect data integrity and trial progress[284]. - The company is unable to predict the duration of patient enrollment delays, which could adversely affect ongoing or future clinical trials[282]. Intellectual Property Risks - The company relies on a combination of patents and trade secrets to protect its intellectual property, but faces challenges in obtaining and maintaining sufficient patent protection for its product candidates[390]. - There is a risk that the company's patent applications may fail to issue or provide meaningful exclusivity, which could hinder collaboration opportunities and commercialization of future products[395]. - The company’s commercial success is partly dependent on avoiding infringement of third-party intellectual property rights, with potential litigation posing significant financial and operational risks[427]. - The company cannot guarantee that its patent searches are complete, which may lead to unrecognized third-party patents that could impact product development and commercialization[431]. - The company may struggle to protect its intellectual property rights globally, as filing and defending patents can be prohibitively expensive, allowing competitors to exploit its technologies in jurisdictions without patent protection[444]. Cybersecurity and Compliance - The company experienced a phishing scheme in November 2021, resulting in a loss of approximately $0.5 million in corporate funds, which was later recovered through cyber-security insurance[377]. - The company has established various security measures to safeguard its information technology systems, but remains vulnerable to cyber-attacks and data breaches, which could lead to significant costs for investigation and remediation[376]. - Compliance with U.S. and foreign data protection laws, such as HIPAA and GDPR, may impose additional obligations and increase compliance costs, potentially affecting the company's operations and financial results[384][383]. - The company has implemented control enhancements following the phishing incident to prevent future occurrences, but acknowledges the ongoing risk of cyber threats[377]. - The potential for regulatory scrutiny and litigation exists if the company experiences a data breach or fails to comply with privacy laws, which could materially affect its financial condition[379]. Market and Competitive Landscape - The company is focused on developing product candidates for age-related degenerative diseases and disorders of the CNS and retina, prioritizing resource allocation among its programs[269]. - Competition with other clinical trials in the same therapeutic areas may reduce the number and types of patients available for the company's trials, potentially increasing costs and delaying outcomes[314]. - The approval process for product candidates varies by country, and failure to obtain international approvals could limit market opportunities[352]. - The company may explore strategic collaborations to broaden its platform but faces significant competition and uncertainty in forming such partnerships[370]. - The company may consider acquisitions to enhance capabilities and expand markets, but risks include integration challenges and unanticipated costs[372].

Table of Contents 2500 Westchester Ave. Purchase, NY 10577 (Address of Principal Executive Offices) (412) 481-2210 (Registrant's telephone number) 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 September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Comm ...