Why did CGTX's EPS remain flat throughout 2024?

Cognition Therapeutics' (CGTX) EPS remained flat throughout 2024 due to a combination of factors that balanced each other, resulting in no significant change in the company's earnings per share. 1. **Research and Development Expenses**: CGTX's research and development (R&D) expenses increased from $8.497 million in Q1 2023 to $11.577 million in Q1 2024, and reached $22.130 million by Q2 2024. This indicates a higher investment in drug development, which could be expected to impact the bottom line. 2. **Grant Income**: The company received significant grant income, with $7.7 million in Q3 2023 and $4.3 million in Q3 2024. This fluctuation in grant income, along with other sources of funding, helps offset the costs of R&D and other expenses. 3. **No Revenue Recognition**: CGTX did not report any revenue for several quarters, including Q1 2024. The absence of revenue recognition during these periods would have contributed to the flat EPS, as there is no top-line growth to offset the increasing R&D costs. 4. **Financial Management**: The company's financial management strategies, including the allocation of resources and cost control measures, likely played a role in maintaining a relatively stable EPS despite the R&D investments. In summary, the flat EPS of CGTX throughout 2024 can be attributed to the balance between increasing R&D expenses, grant income fluctuations, and the absence of revenue recognition, which together maintained a stable earnings per share despite the costs associated with drug development.