Alzamend Neuro, Inc. (ALZN) is a clinical-stage biopharmaceutical company with zero revenue and a balance sheet that offers near-zero recovery to equity under a liquidation scenario. As of January 31, 2026, total assets are $4.0 million, of which $2.7 million is cash (100% recoverable), $1.0 million is prepaid expenses (primarily prepaid clinical trial fees of $872K and prepaid D&O insurance of $101K — both of which carry near-zero liquidation value as they are service-based prepayments with no transferable cash surrender), and $343K is net PP&E (recoverable at 50-70%, implying $170-240K). Total reported liabilities are $1.86 million, consisting entirely of accounts payable and accrued liabilities. Applying liquidation haircuts: cash $2.7M recoverable, prepaid clinical/insurance ~$0, PP&E ~$0.2M — gross liquidation asset pool approximately $2.9 million against $1.86 million in face-value liabilities, leaving a thin nominal equity recovery of approximately $1.0-1.1 million. Stated book equity is $2.2 million; the delta reflects the prepaid write-down. This is not a going-concern company that would yield positive enterprise value in liquidation — the recovery is entirely a function of the cash balance. The company's two drug candidates (AL001 and ALZN002) are licensed IP through the University of South Florida; neither has been separately tagged in XBRL as a capitalized intangible asset, consistent with the company's policy of expensing license-related and R&D costs as incurred. Under the liquidation lens, these licenses carry $0 recovery. Compared to the prior period (October 31, 2025), cash has declined from approximately $4.4 million to $2.7 million — a $1.7 million reduction in roughly one quarter — driven by $5.3 million in YTD operating cash burn against only $4.0 million in financing proceeds (Series C Convertible Preferred Stock). The Series B and Series C preferred stock series were fully converted and eliminated during this fiscal year-to-date period; as of January 31, 2026, there is no preferred equity outstanding on the balance sheet. Contingent milestone obligations to the University of South Florida licensor include $1.25 million (AL001 Phase III first patient) and $10 million (FDA NDA approval) for original AL001, plus $2 million and $16 million for additional AL001 indications, plus $50K, $500K, $1M, and $10M for ALZN002 — none of these are accrued liabilities as milestones are unmet. Filing discloses substantial going-concern doubt with management acknowledging cash is insufficient to fund operations for one year post-issuance. A $3.0 million ATM facility was established post-period on March 6, 2026 as a subsequent event. Unremedianted material weakness in internal controls over financial reporting persists.
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