CervoMed Inc.（納斯達克代碼：CRVO）剛提交截至2026年3月31日的第一季度10-Q報告，以下是重點摘要：

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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, 2026

 

 
  
 
 ☐

 
 
 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: 001-37942 

 

 

CervoMed Inc. 

(Exact name of registrant as specified in its charter)

 

 
 
 Delaware

 
 
 30-0645032

 
 

 
 
 (State or other jurisdiction of incorporation or organization)

 
 
 (I.R.S. Employer Identification No.)

 
 

 

 
 
 20 Park Plaza, Suite 424

 
  
 

 
 
 Boston, Massachusetts

 
 
 02116

 
 

 
 
 (Address of principal executive offices)

 
 
 (Zip Code)

 
 

 

(617) 744-4400 

(Registrant’s telephone number including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 
 
 Title of each class

 
 
 Trading Symbol(s)

 
 
 Name of each exchange on which registered

 
 

 
 
 Common Stock, par value $0.001 per share

 
 
 CRVO

 
 
 NASDAQ Capital Market

 
 

 

Indicate by check mark whether the registrant: (1) has 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, smaller reporting company, or an emerging growth company. See the 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 ☒

 
 
 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 Act).  Yes ☐   No ☒

 

The number of shares of common stock outstanding at May [6], 2026 was [9,258,719] shares.

 

 

 

 

  

 

CervoMed Inc. 

 
  
  
 
 Page No.

 
 

 
 
 Part I

 
 
 PART I – FINANCIAL INFORMATION

 
 
 1

 
 

 
  
  
  
 

 
 
 Item 1:

 
 
 ITEM 1.     FINANCIAL STATEMENTS 

 
 
 1

 
 

 
  
  
  
 

 
 
 Item 2:

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

 
 
 18

 
 

 
  
  
  
 

 
 
 Item 3:

 
 
 ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

 
 
 25

 
 

 
  
  
  
 

 
 
 Item 4:

 
 
 ITEM 4.     CONTROLS AND PROCEDURES 

 
 
 25

 
 

 
  
  
  
 

 
 
 Part II

 
 
 PART II – OTHER INFORMATION 

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 1:

 
 
 ITEM 1.     LEGAL PROCEEDINGS  

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 1A:

 
 
 ITEM 1A.  RISK FACTORS 

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 2:

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

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 3:

 
 
 ITEM 3.     DEFAULTS UPON SENIOR SECURITIES 

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 4:

 
 
 ITEM 4.     MINE SAFETY DISCLOSURES

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 5:

 
 
 ITEM 5.     OTHER INFORMATION 

 
 
 26

 
 

 
  
  
  
 

 
 
 Item 6:

 
 
 ITEM 6.     EXHIBITS

 
 
 27

 
 

 
  
  
  
 

 
 
 Signatures

 
  
 

 

i

 

  

 

INTRODUCTORY NOTES

 

Note Regarding Company References and Other Defined Terms

 

Unless the context otherwise requires, all references in this Quarterly Report to (i) “CervoMed,” the “Company,” “we,” “our,” or “us,” refer to the business of CervoMed Inc. for all dates and periods subsequent to (and including) August 16, 2023 and to the business of EIP, our wholly-owned subsidiary and the accounting acquirer in the Merger, for all dates and periods prior to August 16, 2023 and (ii) “common stock” refer to our common stock, par value $0.001 per share.

 

We have also used several other defined terms in this Quarterly Report, many of which are explained or defined below:

 

 
 
 Term

 
 
 Definition

 
 

 
 
 2015 Equity Plan

 
 
 CervoMed Inc. 2015 Equity Incentive Plan, as amended

 
 

 
 
 2018 Plan

 
 
 CervoMed Inc. 2018 Employee, Director and Consultant Equity Incentive Plan, as amended

 
 

 
 
 2025 Equity Plan

 
 
 CervoMed Inc. 2025 Equity Incentive Plan

 
 

 
 
 401(k) Plan

 
 
 CervoMed Inc. 401(k) Defined Contribution Plan

 
 

 
 
 AD

 
 
 Alzheimer’s Disease

 
 

 
 ALS
 amyotrophic lateral sclerosis
 

 
 
 Annual Report

 
 
 our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026

 
 

 
 
 ASC

 
 
 Accounting Standard Codification of the FASB

 
 

 
 
 ASU

 
 
 Accounting Standards Update

 
 

 
 
 Board

 
 
 our board of directors

 
 

 
 
 CDMO

 
 
 contract development and manufacturing organization

 
 

 
 
 CMC

 
 
 chemistry, manufacturing and controls

 
 

 
 
 CODM

 
 
 chief operating decision maker

 
 

 
 
 CRO

 
 
 contract research organization

 
 

 
 
 DLB

 
 
 dementia with Lewy bodies

 
 

 
 
 DLB without AD co-pathology

 
 
 DLB without concomitant AD-related pathology. May also be referred to as "pure" DLB.

 
 

 
 
 EIP

 
 
 EIP Pharma, Inc., a Delaware corporation and our wholly-owned subsidiary

 
 

 
 
 Exchange Act

 
 
 Securities Exchange Act of 1934, as amended

 
 

 
 
 FASB

 
 
 Financial Accounting Standards Board

 
 

 
 
 FDA

 
 
 U.S. Food and Drug Administration

 
 

 
 
 FTD

 
 
 frontotemporal disorders

 
 

 
 
 IT

 
 
 information technology

 
 

 
 
 Merger

 
 
 the merger of Dawn Merger Sub Inc. with and into EIP, with EIP surviving as a wholly-owned subsidiary of the Company, completed on August 16, 2023, pursuant to the Merger Agreement

 
 

 
 
 Merger Agreement

 
 
 the Agreement and Plan of Merger, dated March 30, 2023, by and among Diffusion Pharmaceuticals Inc., Dawn Merger Sub Inc., and EIP

 
 

 
 
 Nasdaq

 
 
 the Nasdaq Stock Market LLC

 
 

 
 
 nfvPPA

 
 
 non-fluent variant primary progressive aphasia

 
 

 
 
 NIA

 
 
 the National Institute on Aging of the National Institutes of Health

 
 

 
 
 NIA Grant

 
 
 the $21.3 million grant awarded to us by the NIA to support the RewinD-LB Trial, $21.0 million of which was awarded in January 2023 and an additional $0.3 million of which was awarded in August 2024

 
 

 
 
 p38α

 
 
 p38 mitogen-activated protein kinase alpha

 
 

 
 
 Pre-Funded Warrants

 
 
 the pre-funded warrants each to purchase one share of common stock at a purchase price of $0.001 per share issued in connection with the 2024 Private Placement

 
 

 
 
 Quarterly Report

 
 
 this Quarterly Report on Form 10-Q

 
 

 

ii

 

 

 
 
 RAS

 
 
 recovery after stroke

 
 

 
 
 Regulation S-K

 
 
 Regulation S-K promulgated under the Securities Act

 
 

 
 
 RewinD-LB Trial

 
 
 our Phase 2b clinical trial evaluating neflamapimod for the treatment of patients with DLB, from which we announced final results in October 2025

 
 

 
 
 ROU

 
 
 right-of-use

 
 

 
 
 Sales Agreement

 
 
 Sales Agreement, dated May 12, 2025, by and between the Company and Leerink Partners LLC

 
 

 
 
 SEC

 
 
 U.S. Securities and Exchange Commission

 
 

 
 
 Securities Act

 
 
 Securities Act of 1933, as amended

 
 

 
 
 Series A Warrants

 
 
 the warrants to purchase an aggregate of 2,532,285 shares of common stock at a purchase price of $39.24 per share issued in connection with our private placement of an aggregate of 2,532,285 units, each consisting of (i) (A) one share of common stock or (B) one Pre-Funded Warrant in lieu thereof and (ii) one Series A Warrant, for aggregate gross proceeds of up to approximately $149.4 million, completed on April 1, 2024

 
 

 
 
 US

 
 
 United States of America

 
 

 
 
 US GAAP

 
 
 US generally accepted accounting principles

 
 

 
 
 Vertex

 
 
 Vertex Pharmaceuticals Incorporated

 
 

 
 
 Vertex Agreement

 
 
 the Option and License Agreement, dated as of August 27, 2012, by and between EIP Pharma LLC and Vertex, as amended

 
 

 

Note Regarding Forward-Looking Statements

 

This Quarterly Report (including, for purposes of this Note Regarding Forward-Looking Statements, any information or documents incorporated herein by reference) includes express and implied forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on the economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition, liquidity, and prospects may differ materially from the forward-looking statements contained in this Quarterly Report. In addition, even if our results of operations, financial condition, liquidity, and prospects are consistent with the forward-looking statements contained in this Quarterly Report, they may not be predictive of actual results or reflect unanticipated developments in future periods.

 

Forward-looking statements appear in a number of places throughout this Quarterly Report. We may, in some cases, use terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “aims,” “seeks,” “intends,” “may,” “might,” “could,” “will,” “should,” “approximately,” “potential,” “target,” “project,” “contemplate,” “predict,” “forecast,” “continue,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements also include statements regarding our intentions, beliefs, projections, outlook, analyses or expectations concerning, among other things:

 

 
  
 
 ●

 
 
 our cash balances, our ability to obtain additional financing in the future, and our ability to continue as a going concern;

 
 

 
  
 
 ●

 
 
 the success and timing of our ongoing and planned clinical trials and nonclinical studies, including our ability to enroll participants in our studies at anticipated rates, our ability to manufacture an adequate amount of drug supply for our studies, and changes to our drug candidates' formulations;

 
 

 
  
 
 ●

 
 
 obtaining and maintaining intellectual property protection for our current or future product candidates and our proprietary technology;

 
 

 
  
 
 ●

 
 
 the performance of third parties, including CROs, CDMOs, manufacturers, suppliers, and outside consultants, to whom we outsource certain operations, staff and other functions;

 
 

 
  
 
 ●

 
 
 our ability to obtain and maintain regulatory approval of our current or future product candidates and, if approved, our products, including the labeling under any approval we may obtain;

 
 

 
  
 
 ●

 
 
 our plans and ability to develop and commercialize our current or future product candidates and the outcomes of our research and development activities;

 
 

 
  
 
 ●

 
 
 our estimates regarding expenses, future revenues, capital requirements, and needs for additional financing;

 
 

 
  
 
 ●

 
 
 our future obligations under the Vertex Agreement;

 
 

 
  
 
 ●

 
 
 our failure to recruit or retain key scientific or management personnel or to retain our executive officers;

 
 

 

iii

 

 

 
  
 
 ●

 
 
 the accuracy of our estimates of the size and characteristics of the potential markets for our current or future product candidates, the rate and degree of market acceptance of any of our current or future product candidates that may be approved in the future, and our ability to serve those markets;

 
 

 
  
 
 ●

 
 
 the success of products that are, or may become, available which also target the potential markets for our current or future product candidates;

 
 

 
  
 
 ●

 
 
 our ability to operate our business without infringing the intellectual property rights of others and the potential for others to infringe upon our intellectual property rights;

 
 

 
  
 
 ●

 
 
 any significant breakdown, infiltration, or interruption of our IT systems and infrastructure;

 
 

 
  
 
 ●

 
 
 recently enacted and future legislation related to the healthcare system;

 
 

 
  
 
 ●

 
 
 other regulatory developments in the US, European Union, and other foreign jurisdictions;

 
 

 
  
 
 ●

 
 
 our ability to satisfy the continued listing requirements of the Nasdaq or any other exchange on which our securities may trade in the future;

 
 

 
  
 
 ●

 
 
 uncertainties related to general economic, political, business, industry, and market conditions; and

 
 

 
  
 
 ●

 
 
 other risks and uncertainties, including those discussed under the heading "Risk Factors" herein and in our other public filings.

 
 

 

As a result of these and other factors, known and unknown, actual results could differ materially from our intentions, beliefs, projections, outlook, analyses, or expectations expressed in any forward-looking statements in this Quarterly Report. Accordingly, we cannot assure you that the forward-looking statements contained in this Quarterly Report will prove to be accurate or that any such inaccuracy will not be material. You should also understand that it is not possible to predict or identify all such factors, and you should not consider any such list to be a complete set of all potential risks or uncertainties. In light of the foregoing and the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

Any forward-looking statements that we make in this Quarterly Report speak only as of the date of such statement, and, except as required by applicable law or by the rules and regulations of the SEC, we undertake no obligation to update such statements to reflect events or circumstances after the date of this Quarterly Report or to reflect the occurrence of unanticipated events. Comparisons of current and any prior period results are not intended to express any ongoing or future trends or indications of future performance, unless explicitly expressed as such, and should only be viewed as historical data.

 

Note Regarding Trademarks, Trade Names, and Service Marks

 

This Quarterly Report includes trademarks, trade names, and service marks owned by us or other companies. All trademarks, service marks and trade names included in this Quarterly Report are the property of their respective owners. To the extent any such terms appear without the trade name, trademark, or service mark notice, such presentation is for convenience only and should not be construed as being used in a descriptive or generic sense.

 

iv

 

 

 

 

PART I – FINANCIAL INFORMATION

 

 

 
 
 ITEM 1.

 
 
 FINANCIAL STATEMENTS

 
 

 

CervoMed Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 

 
  
  
 
 March 31, 

 2026

 
  
  
 
 December 31,

 2025

 
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
 

 
 
 Current assets:

 
  
  
  
  
  
  
  
  
 

 
 
 Cash and cash equivalents

 
  
 $
 7,941,751
  
  
 $
 8,235,469
  
 

 
 
 Marketable securities

 
  
  
 4,982,230
  
  
  
 12,628,970
  
 

 
 
 Prepaid expenses and other current assets

 
  
  
 1,695,341
  
  
  
 1,267,005
  
 

 
 
 Deferred offering costs

 
  
  
 493,596
  
  
  
 320,581
  
 

 
 
 Grant receivable

 
  
  
 —
  
  
  
 426,993
  
 

 
 
 Total current assets

 
  
  
 15,112,918
  
  
  
 22,879,018
  
 

 
 
 Total assets

 
  
 $
 15,112,918
  
  
 $
 22,879,018
  
 

 
 
 Liabilities and Stockholders’ Equity

 
  
  
  
  
  
  
  
  
 

 
 
 Current liabilities:

 
  
  
  
  
  
  
  
  
 

 
 
 Accounts payable

 
  
 $
 2,272,497
  
  
 $
 1,454,118
  
 

 
 
 Accrued expenses and other current liabilities

 
  
  
 2,224,706
  
  
  
 3,201,999
  
 

 
 
 Total liabilities

 
  
  
 4,497,203
  
  
  
 4,656,117
  
 

 
 
 Commitments and Contingencies (Note 8)

 
  
  
 
 
 
  
  
  
 
 
 
  
 

 
 
 Stockholders’ Equity:

 
  
  
  
  
  
  
  
  
 

 
 Series A preferred stock $0.001 par value: 30,000,000 authorized at March 31, 2026 and December 31, 2025, 0 shares issued and outstanding at March 31, 2026 and December 31, 2025
  
  
 —
  
  
  
 —
  
 

 
 
 Common stock, $0.001 par value: 1,000,000,000 shares authorized at March 31, 2026 and December 31, 2025: 9,258,719 and 9,252,719 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

 
  
  
 9,258
  
  
  
 9,252
  
 

 
 
 Additional paid-in capital

 
  
  
 116,268,674
  
  
  
 115,905,684
  
 

 
 
 Accumulated other comprehensive (loss) income

 
  
  
 (208
 )
  
  
 5,816
  
 

 
 
 Accumulated deficit

 
  
  
 (105,662,009
 )
  
  
 (97,697,851
 )
 

 
 
 Total stockholders' equity

 
  
  
 10,615,715
  
  
  
 18,222,901
  
 

 
 
 Total liabilities and stockholders' equity

 
  
 $
 15,112,918
  
  
 $
 22,879,018
  
 

 

See accompanying notes to unaudited condensed consolidated interim financial statements

 

1

 

 

 

CervoMed Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

 

 
  
  
 
 Three Months Ended

 March 31,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Grant revenue

 
  
 $
 —
  
  
 $
 1,917,491
  
 

 
 
 Operating expenses:

 
  
  
  
  
  
  
  
  
 

 
 
 Research and development

 
  
  
 5,135,419
  
  
  
 4,837,798
  
 

 
 
 General and administrative

 
  
  
 2,975,105
  
  
  
 2,382,577
  
 

 
 
 Total operating expenses

 
  
  
 8,110,524
  
  
  
 7,220,375
  
 

 
 
 Loss from operations

 
  
  
 (8,110,524
 )
  
  
 (5,302,884
 )
 

 
 
 Other income (expense):

 
  
  
  
  
  
  
  
  
 

 
 
 Other expense

 
  
  
 (1,021
 )
  
  
 (135
 )
 

 
 
 Interest income

 
  
  
 147,387
  
  
  
 408,985
  
 

 
 
 Total other income, net

 
  
  
 146,366
  
  
  
 408,850
  
 

 
 
 Net loss

 
  
 $
 (7,964,158
 )
  
 $
 (4,894,034
 )
 

 
 
 Per share information:

 
  
  
  
  
  
  
  
  
 

 
 
 Net loss per share of common stock, basic and diluted

 
  
 $
 (0.86
 )
  
 $
 (0.56
 )
 

 
 
 Weighted average shares outstanding, basic and diluted

 
  
  
 9,258,319
  
  
  
 8,702,719
  
 

 
 
 Net loss:

 
  
  
  
  
  
  
  
  
 

 
 
 Net unrealized loss on marketable securities

 
  
  
 (6,024
 )
  
  
 (34,974
 )
 

 
 
 Total comprehensive loss

 
  
 $
 (7,970,182
 )
  
 $
 (4,929,008
 )
 

 

See accompanying notes to unaudited condensed consolidated interim financial statements

 

2

 

 

 

CervoMed Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

 

 
  
  
 
 Three Month Period Ended March 31, 2026

 
  
 

 
  
  
 
 Common Stock

 
  
  
 
 Additional

 Paid-in

 
  
  
 
 Accumulated 

 other 

 comprehensive

 
  
  
 
 Accumulated

 
  
  
 
 Total

 Stockholders'

 
  
 

 
  
  
 
 Shares

 
  
  
 
 Amount

 
  
  
 Capital 
  
  
 (loss) income
  
  
 Deficit
  
  
 Equity
  
 

 
 
 Balance at December 31, 2025

 
  
  
 9,252,719
  
  
 $
 9,252
  
  
 $
 115,905,684
  
  
 $
 5,816
  
  
 $
 (97,697,851
 )
  
 $
 18,222,901
  
 

 
 
 Unrealized loss on marketable securities

 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (6,024
 )
  
  
 —
  
  
  
 (6,024
 )
 

 
 
 Stock-based compensation expense

 
  
  
 —
  
  
  
 —
  
  
  
 349,196
  
  
  
 —
  
  
  
 —
  
  
  
 349,196
  
 

 
 
 Exercise of stock options

 
  
  
 6,000
  
  
  
 6
  
  
  
 13,794
  
  
  
 —
  
  
  
 —
  
  
  
 13,800
  
 

 
 
 Net loss

 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (7,964,158
 )
  
  
 (7,964,158
 )
 

 
 
 Balance at March 31, 2026

 
  
  
 9,258,719
  
  
 $
 9,258
  
  
 $
 116,268,674
  
  
 $
 (208
 )
  
 $
 (105,662,009
 )
  
 $
 10,615,715
  
 

 

 
  
  
 
 Three Month Period Ended March 31, 2025

 
  
 

 
  
  
 
 Common Stock

 
  
  
 
 Additional

 Paid-in

 
  
  
 
 Accumulated other comprehensive 

 
  
  
 
 Accumulated

 
  
  
 
 Total

 Stockholders'

 
  
 

 
  
  
 
 Shares

 
  
  
 
 Amount

 
  
  
 Capital
  
  
 (loss) income
  
  
 Deficit
  
  
 Equity
  
 

 
 
 Balance at December 31, 2024

 
  
  
 8,702,719
  
  
 $
 8,702
  
  
 $
 109,868,913
  
  
 $
 56,197
  
  
 $
 (70,731,484
 )
  
 $
 39,202,328
  
 

 
 
 Unrealized gain on marketable securities

 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (34,974
 )
  
  
 —
  
  
  
 (34,974
 )
 

 
 
 Stock-based compensation expense

 
  
  
 —
  
  
  
 —
  
  
  
 361,167
  
  
  
 —
  
  
  
 —
  
  
  
 361,167
  
 

 
 
 Net loss

 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (4,894,034
 )
  
  
 (4,894,034
 )
 

 
 
 Balance at March 31, 2025

 
  
  
 8,702,719
  
  
 $
 8,702
  
  
 $
 110,230,080
  
  
 $
 21,223
  
  
 $
 (75,625,518
 )
  
 $
 34,634,487
  
 

 

See accompanying notes to unaudited condensed consolidated interim financial statements

 

3

 

 

 

CervoMed Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 
  
  
 
 Three Months Ended March 31,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Cash flows from operating activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Net loss

 
  
 $
 (7,964,158
 )
  
 $
 (4,894,034
 )
 

 
 
 Adjustments to reconcile net loss to net cash used in operating activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Accretion of discount on marketable securities, net

 
  
  
 (70,104
 )
  
  
 (251,828
 )
 

 
 
 Stock-based compensation expense

 
  
  
 349,196
  
  
  
 361,167
  
 

 
 
 Changes in operating assets and liabilities:

 
  
  
  
  
  
  
  
  
 

 
 
 Prepaid expenses and other assets

 
  
  
 (428,336
 )
  
  
 201,613
  
 

 
 
 Accounts payable

 
  
  
 765,364
  
  
  
 349,158
  
 

 
 
 Accrued expenses and other current liabilities

 
  
  
 (1,097,293
 )
  
  
 (285,439
 )
 

 
 
 Grant receivable

 
  
  
 426,993
  
  
  
 625,004
  
 

 
 
 Net cash used in operating activities

 
  
  
 (8,018,338
 )
  
  
 (3,894,359
 )
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Cash flows from investing activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Purchase of marketable securities

 
  
  
 (989,180
 )
  
  
 (7,103,423
 )
 

 
 
 Maturities of marketable securities

 
  
  
 8,700,000
  
  
  
 12,500,000
  
 

 
 
 Net cash provided by investing activities

 
  
  
 7,710,820
  
  
  
 5,396,577
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Cash flows from financing activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Proceeds from the exercise of stock options

 
  
  
 13,800
  
  
  
 —
  
 

 
 
 Net cash provided by financing activities

 
  
  
 13,800
  
  
  
 —
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Net (decrease) increase in cash and cash equivalents

 
  
  
 (293,718
 )
  
  
 1,502,218
  
 

 
 
 Cash and cash equivalents at beginning of period

 
  
  
 8,235,469
  
  
  
 8,999,496
  
 

 
 
 Cash and cash equivalents at end of period

 
  
 $
 7,941,751
  
  
 $
 10,501,714
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Supplemental disclosure of non-cash investing and financing activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Deferred offering costs in accrued expenses

 
  
 $
 120,000
  
  
 $
 —
  
 

 
 
 Deferred offering costs in accounts payable

 
  
 $
 53,015
  
  
 $
 —
  
 

 
 
 Unrealized loss on marketable securities

 
  
 $
 (6,024
 )
  
 $
 (34,974
 )
 

 

 

See accompanying notes to unaudited condensed consolidated interim financial statements

 

 

 

4

 

CervoMed Inc.

Notes To Unaudited Condensed Consolidated Interim Financial Statements

 

 

1. The Company and Description of Business

 

The Company is a corporation organized under the laws of the state of Delaware and headquartered in Boston, Massachusetts. The Company is a clinical-stage biotechnology company developing treatments for age-related brain disorders. Its lead drug candidate, neflamapimod, is an oral, small molecule targeting critical disease processes underlying degenerative disorders of the brain by inhibiting a key enzyme involved in neuroinflammation and neurodegeneration. The Company recently completed its RewinD-LB Trial, a Phase 2b study of neflamapimod in patients with DLB funded primarily by a $21.3 million grant from the NIA.

 

 

2. Liquidity and Capital Resources

 

Liquidity and Capital Resources 

 

The Company has $12.9 million of cash, cash equivalents, and marketable securities as of March 31, 2026, has generated negative cash flows from operations and had an accumulated deficit of $105.7 million as of March 31, 2026. The Company expects to continue to generate operating losses for the foreseeable future. The Company’s future viability is dependent on its ability to raise additional capital to finance its operations and pursue its business strategies. There can be no assurances that additional funding will be available on terms acceptable to the Company, or at all. These conditions cause substantial doubt regarding the Company’s ability to continue as a going concern.

 

The Company will continue to require additional financing to advance its current product candidates through clinical development, to develop, acquire or in-license other potential product candidates and to fund operations for the foreseeable future. The Company intends to continue to seek funds through equity offerings, debt financings or other capital sources, including grants, potential collaborations, licenses and other similar arrangements. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed, on favorable terms, or at all. If the Company does raise additional capital through public or private equity offerings, the ownership interest of its existing stockholders will be diluted, and the terms of such securities may include liquidation or other preferences that adversely affect the Company's stockholders’ rights. If the Company raises additional capital through a debt financing, it may be subject to covenants limiting or restricting the Company's ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Any failure to raise capital as and when needed could have a negative impact on the Company's financial condition and on its ability to pursue its business plans and strategies. If the Company is unable to raise sufficient capital when needed, it may need to delay, reduce or terminate planned activities to reduce costs, including development or commercialization activities for neflamapimod. The Company might also be required to seek funds through arrangements with third parties that require it to relinquish certain of its rights to neflamapimod or otherwise agree to terms unfavorable to the Company.

 

Accordingly, substantial doubt about the Company’s ability to continue as a going concern is not alleviated. Based on its current operating plan, the Company does not believe its existing cash, cash equivalents and marketable securities on hand of $12.9 million as of March 31, 2026 will enable the Company to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance of these unaudited condensed consolidated interim financial statements.

 

The accompanying unaudited condensed consolidated interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited condensed consolidated interim financial statements do not include any adjustments that might result from the outcome of the uncertainty described in this Note 2.

 

Risks and Uncertainties

 

The Company is subject to certain additional risks and uncertainties as well, and any one or more of these factors could materially affect the Company’s financial condition, future operations and liquidity needs. Many of these risks and uncertainties are outside of the Company’s control, including internal and external factors that may affect the success or failure of the Company’s research and development efforts, the length of time and cost of developing and commercializing the Company’s current or future product candidates, whether and when any such product candidates become approved drugs, and how significant a drug’s market share will be, if approved, among others.

 

5

 

CervoMed Inc.

Notes To Unaudited Condensed Consolidated Interim Financial Statements

  

 

3. Summary of Significant Accounting Policies

 

Basis of presentation 

 

The unaudited condensed consolidated interim financial statements have been prepared in conformity with US GAAP as defined by the FASB.

 

Unaudited condensed consolidated interim financial statements

 

The accompanying unaudited condensed consolidated interim financial statements have been prepared by the Company in accordance with US GAAP for interim information and pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2025, filed as part of the Company's Annual Report.

 

These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and, in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the financial information for the interim periods. However, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year.

 

Consolidation

 

The unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

 

Use of estimates

 

The preparation of unaudited condensed consolidated interim financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, grant revenue, expenses, and related disclosures. On an ongoing basis, the Company’s management evaluates its estimates, including estimates related to money market accounts, clinical trial accruals, stock-based compensation expense, grant revenue, and expenses during the reporting period. The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ significantly from those estimates or assumptions.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, and marketable securities. The Company maintains deposits in financial institutions in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk as the Company’s deposits are held at financial institutions that management believes to be of high credit quality, and the Company has not experienced any losses on these deposits. Management also believes that the Company is not exposed to significant credit risk as it relates to marketable securities because the Company invests in US government securities, commercial paper, and corporate debt securities.

 

Cash and Cash Equivalents

 

The Company considers all highly-liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents. Cash equivalents, which consist of amounts invested in money market funds and commercial paper, are stated at fair value. There are de minimis unrealized losses on the money market funds for the three months ended March 31, 2026, and year ended December 31, 2025.

 

6

 

CervoMed Inc.

Notes To Unaudited Condensed Consolidated Interim Financial Statements

 

Marketable Securities

 

The Company classifies its marketable securities as available-for-sale, which include commercial paper, US government debt securities, and corporate debt securities with original maturities of greater than 90 days from date of purchase. These securities are carried at fair value, with unrealized gains and losses reported on the condensed consolidated statement of operations and comprehensive loss and accumulated other comprehensive (loss) income within stockholders’ equity until realized. Purchase discounts are accreted using the effective interest method over the term of the related security and such accretion is included in interest income on the accompanying condensed consolidated statements of operations and comprehensive loss.

 

The Company evaluates its investments in marketable securities for impairment at each reporting period when the fair value is below amortized cost. If the Company intends to sell the security, or it is more likely than not the Company will be required to sell the security before recovery of amortized cost, the entire impairment is included in earnings. The Company did not record any impairment on marketable securities during the three months ended March 31, 2026, and 2025. There was no allowance for credit losses as of March 31, 2026, or December 31, 2025.

 

Equity Issuance Costs

 

The Company capitalizes costs directly associated with equity financings as deferred offering costs on its consolidated balance sheet. These costs remain capitalized until such financings are consummated, at which time such costs are recorded against the gross proceeds from the applicable financing. With respect to financings conducted on an ongoing basis, such as at-the-market offerings, costs are recognized ratably as funds are received in proportion to the aggregate offering amount. If a financing is abandoned, any remaining deferred offering costs are expensed.

 

As of March 31, 2026, and December 31, 2025, there were $0.5 million and $0.3 million of deferred offering costs, respectively, related primarily, in each case, to the Sales Agreement.

 

Fair Value of Financial Instruments

 

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

 

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

 

Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

 

Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

 

Leases

 

The Company accounts for leases in accordance with ASC Topic 842, Leases, which requires a lessee to recognize an ROU asset and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and expense recognition in the statement of operations and comprehensive loss as well as the reduction of the ROU asset. The standard provides a number of optional practical expedients in transition. The Company has elected to apply (i) the practical expedient, which allows us to not separate lease and non-lease components, for new leases and (ii) the short-term lease exemption for all leases with an original term of less than 12 months, for purposes of applying the recognition and measurements requirements in the standard.

 

7

 

CervoMed Inc.

Notes To Unaudited Condensed Consolidated Interim Financial Statements

 

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company’s control over the use of the identified asset(s), if applicable. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of future lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incrementa