Ovid Therapeutics Inc.

08/13/2025 | Press release | Distributed by Public on 08/13/2025 06:04

Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following information should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q and the audited financial information and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on March 11, 2025. In addition to historical financial information, the following discussion contains forward-looking statements based upon our current plans, expectations and beliefs that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events may differ materially from those described in or implied by these forward-looking statements as a result of many factors, including those set forth under the section titled "Risk Factors" in Part II, Item 1A. You should carefully read the "Risk Factors" section of this Quarterly Report on Form 10-Q to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the section entitled "Special Note Regarding Forward-Looking Statements."
Overview
We are a biopharmaceutical company dedicated to developing small molecule medicines for brain conditions with significant unmet need. Our approach to achieve this goal is scientifically driven, patient focused, and coupled with an integrated and disciplined approach to research, clinical development and business development. Our team has significant experience with and understanding of epilepsies and other neurological conditions, and we continue to gain insight into the ways the different molecular mechanisms and pathways underlying these disorders impact the symptoms patients experience. We have developed a differentiated pipeline of drug candidates containing three novel mechanisms of action ("MoAs") to target seizures and believe we are the only company that holds a portfolio of direct activators of potassium-chloride cotransporter 2 ("KCC2"). Two of our programs are in clinical trials, and a third is expected to begin a clinical trial in the second quarter of 2026. We are initially pursuing therapeutic drug candidates for epilepsy and psychosis in Parkinson's disease and Lewy body dementia. If successfully developed and marketed to treat these conditions, we intend to explore these drug candidates for broader neurologic indications. Our cohesive focus in brain conditions with significant unmet need reinforces our belief that we can develop and produce multiple novel medicines, scale our infrastructure, positively impact patients' lives and create long-term stockholder value.
Since our inception in April 2014, we have devoted substantially all of our efforts to organizing and planning our business, building our management and technical team, acquiring and developing assets and raising capital.
During the six month periods ended June 30, 2025 and 2024, we generated $6.4 million and $0.3 million of royalty and licensing revenue, respectively. We have otherwise primarily funded our business through the sale of our capital stock and through various licensing and collaboration agreements. Through June 30, 2025, we have raised net proceeds of $275.4 million from the sale of our preferred and common stock. As of June 30, 2025, we had $38.3 million in cash, cash equivalents and marketable securities and an accumulated deficit of $319.2 million.
We expect to continue to incur significant expenses and operating losses for at least the next several years. Our net losses may fluctuate significantly from period to period, depending on the timing of our planned clinical trials and expenditures on our other research and development and commercial development activities. We expect our expenses will increase substantially over time as we:
•continue the ongoing and planned preclinical and clinical development of our drug candidates;
•build a portfolio of drug candidates through the development, acquisition or in-license of drugs, drug candidates or technologies;
•initiate preclinical studies and clinical trials for any additional drug candidates that we may pursue in the future;
•seek marketing approvals for our current and future drug candidates that successfully complete clinical trials;
•establish a sales, marketing and distribution infrastructure to commercialize any drug candidate for which we may obtain marketing approval;
•develop, maintain, expand and protect our intellectual property portfolio;
•implement operational, financial and management systems; and
•attract, hire and retain additional administrative, clinical, regulatory, manufacturing, commercial and scientific personnel.
The following chart sets forth the status and mechanism of action of our drug candidates:
Significant Risks and Uncertainties
The global economic slowdown, the overall disruption of global healthcare systems and other risks and uncertainties associated with public health crises and global geopolitical tensions, like tensions between China and Taiwan and the ongoing wars involving Ukraine and Israel, may have a material adverse effect on our business, financial condition, results of operations and growth prospects. The resulting fluctuations in inflation rates may materially affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of our clinical trial materials and supplies, interest rates and overhead costs may adversely affect our operating results. Relatively high interest rates also present a recent challenge impacting the U.S. economy and could make it more difficult for us to obtain traditional financing on acceptable terms, if at all, in the future. Furthermore, economic conditions have produced downward pressure on share prices. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if inflation rates remain relatively high or begin to rise again) on our operating costs, including our labor costs and research and development costs, due to supply chain constraints, global geopolitical tensions as a result of tensions between China and Taiwan and the ongoing wars involving Ukraine and Israel, worsening global macroeconomic conditions and employee availability and wage increases, which may result in additional stress on our working capital resources. Moreover, there is great uncertainty with respect to potential changes in trade regulations, ongoing changes to U.S. and international tariffs and other trade restrictions and trade barriers, renegotiation of international trade agreements or further escalation of trade tensions, sanctions and export controls which also increase volatility in the global economy.
In addition, we are subject to other challenges and risks specific to our business and our ability to execute on our strategy, as well as risks and uncertainties common to companies in the pharmaceutical industry with development and commercial operations, including, without limitation, risks and uncertainties associated with: identifying, acquiring or in-licensing products or product candidates; obtaining regulatory approval of product candidates; pharmaceutical product development and the inherent uncertainty of clinical success; the challenges of protecting and enhancing our intellectual property rights; and complying with applicable regulatory requirements.
Going Concern
As of June 30, 2025, we had $38.3 million in cash, cash equivalents and marketable securities. We have incurred operating losses for most periods since inception and our accumulated deficit as of June 30, 2025 was $319.2 million. We expect that our existing cash, cash equivalents and marketable securities will not be sufficient to fund our projected operating expenses and capital expenditure requirements through at least 12 months from the date our condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q were available to be issued. These conditions raise substantial doubt regarding our ability to continue as a going concern. We are currently evaluating strategic alternatives, including additional financing or other strategic options, such as partnerships or collaborations, strategic alliances, licensing agreements or a combination of any such transactions, which may require us to relinquish rights to certain drug candidates that we might otherwise seek to develop or commercialize independently. If additional capital is not available to us on a timely basis, or at all, we may need to reduce operating expenses or will be required to delay, reduce
the scope of, or eliminate additional research and development programs. For additional information, see "-Liquidity and Capital Resources" below.
Financial Operations Overview
Revenue
We have generated revenue under various licensing and collaboration agreements. We have not generated any revenue from commercial drug sales, and we do not expect to generate any further revenue unless or until we obtain regulatory approval and commercialize one or more of our current or future drug candidates. In the future, we may also seek to generate revenue from a combination of research and development payments, license fees and other upfront or milestone payments.
Research and Development Expenses
Research and development expenses consist primarily of costs incurred for our research activities, including our product discovery efforts and the development of our product candidates, which include, among other things:
•employee-related expenses, including salaries, benefits and stock-based compensation expense;
•fees paid to consultants for services directly related to our drug development and regulatory efforts;
•expenses incurred under agreements with contract research organizations, as well as contract manufacturing organizations and consultants that conduct preclinical studies and clinical trials;
•costs associated with preclinical activities and development activities;
•costs associated with technology and intellectual property licenses;
•milestone payments and other costs and payments under licensing agreements, research agreements and collaboration agreements; and
•depreciation expense for assets used in research and development activities.
Costs incurred in connection with research and development activities are expensed as incurred. Costs for certain development activities, such as clinical trials, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations or other information provided to us by our vendors.
Research and development activities are and will continue to be central to our business model. We expect our research and development expenses to increase for the foreseeable future as we advance our current and future drug candidates through preclinical studies and clinical trials. The process of conducting preclinical studies and clinical trials necessary to obtain regulatory approval is costly and time-consuming. It is difficult to determine with certainty the duration and costs of any preclinical study or clinical trial that we may conduct. The duration, costs and timing of clinical trial programs and development of our current and future drug candidates will depend on a variety of factors that include, but are not limited to, the following:
•number of clinical trials required for approval and any requirement for extension trials;
•per patient trial costs;
•number of patients who participate in the clinical trials;
•number of sites included in the clinical trials;
•countries in which the clinical trial is conducted;
•length of time required to enroll eligible patients;
•number of doses that patients receive;
•drop-out or discontinuation rates of patients;
•potential additional safety monitoring or other studies requested by regulatory agencies;
•duration of patient follow-up; and
•efficacy and safety profile of the drug candidates.
In addition, the probability of success for any of our current or future drug candidates will depend on numerous factors, including competition, manufacturing capability and commercial viability. We will determine which programs to
pursue and how much to fund each program in response to the scientific and clinical success of each drug candidate, as well as an assessment of each drug candidate's commercial potential.
General and Administrative Expenses
General and administrative expenses consist primarily of employee-related expenses, including salaries, benefits and stock-based compensation expense, related to our executive, finance, legal, business development and support functions. Other general and administrative expenses include costs associated with operating as a public company, travel expenses, conferences, and professional fees for auditing, tax and legal services.
Other Income (Expense), net
Other income (expense), net primarily consists of interest income and accretion of discount on investments in marketable securities, unrealized gains (losses) on long-term equity investments and unrealized gain due to a fraudulent funds transfer recovery.
Results of Operations
Comparison of the Three Months Ended June 30, 2025 and 2024
The following table summarizes the results of our operations for the periods indicated:
(in thousands) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Change $
Revenue:
License and other revenue $ 6,272 $ 169 $ 6,103
Total revenue 6,272 169 6,103
Operating expenses:
Research and development 6,465 12,582 (6,117)
General and administrative 4,880 8,104 (3,224)
Total operating expenses 11,345 20,686 (9,341)
(Loss) income from operations (5,073) (20,517) 15,444
Other income (expense), net 389 29,038 (28,649)
(Loss) income before provision for income taxes (4,684) 8,521 (13,205)
Provision for income taxes - - -
Net (loss) income $ (4,684) $ 8,521 $ (13,205)
Revenue
Revenue of $6.3 million and $0.2 million was recorded in the three months ended June 30, 2025 and 2024, respectively, which related to $6.3 million in revenue recorded from the Marinus License Agreement, as amended, and quarterly royalties on net sales pursuant to the Marinus License Agreement for the same period in 2024.
Research and Development Expenses
(in thousands) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Change $
Preclinical and clinical development expenses $ 4,089 $ 7,955 $ (3,866)
Payroll and payroll-related expenses 1,803 3,898 (2,095)
Other expenses 573 729 (156)
Total research and development $ 6,465 $ 12,582 $ (6,117)
During the three months ended June 30, 2025, research and development expenses were $6.5 million, compared to $12.6 million for the same period in 2024, representing a decrease of $6.1 million. Program research and development expenses declined by $3.9 million, primarily due to the pause of the OV888 (GV101) program. Payroll and payroll-related expenses declined by $2.1 million due to reduced headcount in the three months ended June 30, 2025 relative to the same period in 2024 primarily due to the organizational restructuring executed during the second quarter of 2024.
General and Administrative Expenses
(in thousands) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Change $
Payroll and payroll-related expenses $ 2,248 $ 4,836 $ (2,588)
Legal and professional fees 1,278 2,140 (862)
General office expenses 1,354 1,128 226
Total general and administrative $ 4,880 $ 8,104 $ (3,224)
General and administrative expenses were $4.9 million and $8.1 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in general and administrative expenses is primarily due to the organizational restructuring executed during the second quarter of 2024, inclusive of payroll and payroll-related expenses as well as other cost reductions.
Other Income (Expense), net
Other income (expense), net, for the three months ended June 30, 2025 and 2024 were gains of $0.4 million and $29.0 million, respectively. During the three months ended June 30, 2024 a gain of $29.0 million was recorded due to an adjustment to the royalty monetization liability under the Company's royalty monetization agreement with Ligand Pharmaceuticals Incorporated ("Ligand Agreement"). Other items reflected in other income (expense), net, in both periods were primarily interest income and accretion on U.S. treasury investments.
Comparison of the Six Months Ended June 30, 2025 and 2024
The following table summarizes the results of our operations for the periods indicated:
Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Change $
(in thousands)
Revenue:
License and other revenue $ 6,402 $ 317 $ 6,085
Total revenue 6,402 317 6,085
Operating expenses:
Research and development 13,123 22,984 (9,861)
General and administrative 10,902 15,267 (4,365)
Total operating expenses 24,025 38,251 (14,226)
Loss from operations (17,623) (37,934) 20,311
Other income (expense), net 2,704 34,760 (32,056)
Loss before provision for income taxes (14,919) (3,174) (11,745)
Provision for income taxes - - -
Net loss $ (14,919) $ (3,174) $ (11,745)
Revenue
Revenue of $6.4 million was generated in the six months ended June 30, 2025, compared to revenue of $0.3 million recognized for the same period in 2024. Revenue consisted of revenue recorded from the Marinus License Agreement, as amended, and quarterly royalties on net sales pursuant to the Marinus License Agreement in the six month period ended June 30, 2025, and quarterly royalties on net sales pursuant to the Marinus License Agreement for the same period in 2024.
Research and Development Expenses
Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Change $
(in thousands)
Preclinical and clinical development expenses $ 8,333 $ 14,656 $ (6,323)
Payroll and payroll-related expenses 3,639 6,835 (3,196)
Other expenses 1,151 1,493 (342)
Total research and development $ 13,123 $ 22,984 $ (9,861)
During the six months ended June 30, 2025, research and development expenses were $13.1 million compared to $23.0 million for the same period in 2024. The decrease of $9.9 million is primarily due to the pause of the OV888 (GV101) program, cost increases associated with the organizational restructuring announced in June 2024, and a reduction in overall average headcount between the six month periods ended June 30, 2024 and 2025. Payroll and payroll related costs of the organizational restructuring of $1.7 million were recognized during the six months ended June 30, 2024 and paid over an extended period.
General and Administrative Expenses
Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Change $
(in thousands)
Payroll and payroll-related expenses $ 5,378 $ 8,728 $ (3,350)
Legal and professional fees 2,729 3,813 (1,084)
General office expenses 2,795 2,726 69
Total general and administrative $ 10,902 $ 15,267 $ (4,365)
General and administrative expenses were $10.9 million for the six months ended June 30, 2025 compared to $15.3 million for the same period in 2024. The decrease of $4.4 million was primarily due to cost increases associated with the organizational restructuring announced in June 2024, reduced average headcount in 2025 and the realization of cost reduction strategies initiated since June 30, 2024. Costs of the organizational restructuring of $2.0 million were recognized during the six months ended June 30, 2024 and were paid over an extended period.
Other Income (Expense), net
Other income (expense), net for the six months ended June 30, 2025 was $2.7 million compared to $34.8 million for the same period in 2024. The decrease of $32.1 million was primarily due to other income of $29.0 million that was recognized in June 2024 relating to an adjustment to the royalty monetization liability under the Ligand Agreement. The remainder of the increase resulted from unrealized gain (loss) on long-term equity investments and interest earned and accretion of discount on marketable securities, and an unrealized gain due to the recovery of a fraudulent funds transfer.
Liquidity and Capital Resources
Overview
As of June 30, 2025, we had total cash, cash equivalents and marketable securities of $38.3 million. Our cash, cash equivalents and marketable securities as of June 30, 2025 will not be sufficient to fund our projected operating expenses and capital expenditure requirements for at least 12 months from the date our condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q were available to be issued. We are currently evaluating strategic alternatives, including additional financings or other options, such as partnerships or collaborations, strategic alliances, licensing agreements or a combination of any such transactions.
Similar to other development-stage biotechnology companies, we have generated limited revenue, which has been through various license and collaboration agreements, and have financed our operations primarily through the sale of equity securities. We have historically incurred losses and experienced negative operating cash flows for most periods since our inception and anticipate that we will incur losses and experience negative operating cash flows in the future. We recorded net loss of $4.7 million and net income of $8.5 million for the three months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, we had an accumulated deficit of $319.2 million and working capital of $33.2 million.
Future Funding Requirements
Our primary uses of capital are, and we expect will continue to be, compensation and related expenses, third-party clinical research and development services, clinical costs, legal and other regulatory expenses and general overhead costs. We have based our estimates on assumptions that may prove to be incorrect, and we could use our capital resources sooner than we currently expect. Additionally, the process of testing drug candidates in clinical trials is costly, and the timing of progress in these trials is uncertain. We cannot estimate the actual amounts necessary to successfully complete the development and commercialization of our product candidates or whether, or when, we may achieve profitability.
As of June 30, 2025, we had no long-term debt and no material non-cancelable purchase commitments with service providers, as we have generally contracted on a cancellable, purchase order basis. We cannot estimate whether we will receive or the timing of any potential contingent payments upon the achievement by us of clinical, regulatory and commercial events, as applicable. In addition, we cannot estimate the timing of any potential royalty payments that we may be required to make under license agreements we have entered into with various entities pursuant to which we have in-licensed certain intellectual property as contractual obligations or commitments, including agreements with AstraZeneca and Northwestern. Pursuant to these license agreements, we have agreed to make milestone payments up to an aggregate of $279.3 million upon the achievement of certain development, regulatory and sales milestones. We excluded these contingent payments from the condensed consolidated financial statements, given that the timing, probability, and amount, if any, of such payments cannot be reasonably estimated at this time.
In September 2021, we entered into a 10-year lease agreement for our corporate headquarters in New York, New York. The lease provides for monthly rental payments over the lease term. The base rent under the lease is currently $2.3 million per year. Payment obligations under the lease agreement include $2.3 million in the 12 months subsequent to June 30, 2025 and $18.1 million over the remaining term of the agreement. For additional information see Note 5 to our condensed consolidated financial statements under the heading "Leases."
We have no products approved for commercial sale and have not generated any revenue from product sales to date. Until such time, if ever, as we can generate substantial product revenues, we expect to finance our cash needs through a combination of equity offerings, debt financings and additional funding from license and collaboration arrangements. Except for any obligations of our collaborators to reimburse us for research and development expenses or to make milestone or royalty payments under our agreements with them, we will not have any committed external source of liquidity. To the extent that we raise additional capital through future equity offerings or debt financings, ownership interests may be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt and equity financings, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. There can be no assurance that such financings will be obtained on terms acceptable to us, if at all.
Additionally, while the long-term economic impact of geopolitical tensions, including tensions between China and Taiwan and the ongoing wars involving Ukraine and Israel, is difficult to assess or predict, each of these events has caused significant disruptions to the global financial markets and contributed to a general global economic slowdown. Furthermore, inflation rates have increased recently to levels not seen in decades, which may also be impacted by the implementation of tariffs by the United States and other countries. Moreover, there is great uncertainty with respect to potential changes in trade regulations, tariffs, sanctions and export controls which also increase volatility in the global economy. In addition, the U.S. Federal Reserve has raised interest rates in the past in response to concerns about inflation. Relatively high interest rates and fluctuations in inflation, especially if coupled with a significant change in government spending and volatility in financial markets, may further increase economic uncertainty and heighten these risks. If the disruptions and slowdown deepen or persist, we may not be able to access additional capital on favorable terms, or at all, which could in the future negatively affect our ability to pursue our business strategy.
If we raise additional funds through collaborations, strategic alliances or licensing agreements with third parties for one or more of our current or future drug candidates, we may be required to relinquish valuable rights to our technologies, future revenue streams, research programs or drug candidates or to grant licenses on terms that may not be favorable to us. Our failure to raise capital as and when needed would have a material adverse effect on our financial condition and our ability to pursue our business strategy. We may be required to take additional actions beyond the cost preservation measures initiated to address our liquidity needs, including exploring other strategic options, continuing to further reduce operating expense or delaying, reducing the scope of, discontinuing or altering our research and development activities. See "Risk Factors" for additional risks associated with our capital requirements.
At-the-Market Offering Program
In November 2023, we filed a shelf registration statement on Form S-3 (Registration No. 333-275307) (the "S-3 Registration Statement") that allows us to sell up to an aggregate of $250.0 million of our common stock, preferred stock,
debt securities and/or warrants, which includes a prospectus covering the issuance and sale of up to $75.0 million of common stock pursuant to an at-the-market ("ATM") offering program. During the three months ended June 30, 2025, we did not have any sales pursuant to our ATM program.
As of the date of this Quarterly Report on Form 10-Q, our public float was less than $75.0 million. As a result, we are subject to the limitations of General Instruction I.B.6 to Form S-3 until such time as our public float exceeds $75.0 million, which means we only have the capacity to sell shares up to one-third of our public float under the S-3 Registration Statement, including the ATM program, in any twelve-month period. We will remain constrained by the limitations of General Instruction I.B.6 to Form S-3 until such time as our public float exceeds $75.0 million, at which time the number of securities we may sell under a Form S-3 registration statement will no longer be limited by limitations of General Instruction I.B.6 to Form S-3.
Cash Flows
The following table summarizes our cash flows for the periods indicated:
(in thousands) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024
Net cash (used in) provided by:
Operating activities $ (15,054) $ (30,941)
Investing activities 17,155 33,010
Financing activities 13 584
Net increase in cash, cash equivalents and restricted cash $ 2,114 $ 2,653
Net Cash Used In Operating Activities
Net cash used in operating activities was $15.1 million for the six months ended June 30, 2025, which consisted primarily of net loss of $14.9 million with a reduction of $2.4 million of accounts payable and accrued expenses offset by $2.5 million of noncash stock-based compensation expense. Net cash used in operating activities was $30.9 million for the six months ended June 30, 2024, which primarily consisted of net loss of $3.2 million, $29.0 million unrealized gain on fair value adjustment of the royalty monetization liability, $3.4 million of unrealized gain on long term equity investments, increase in accounts payable and accrued expenses of $2.6 million, and $3.7 million of noncash stock-based compensation expense.
Net Cash Provided By Investing Activities
Net cash provided by investing activities was $17.2 million and $33.0 million for the six months ended June 30, 2025 and 2024, respectively, which was primarily due to the maturity of marketable securities during the periods.
Net Cash Provided By Financing Activities
Net cash provided by financing activities during the six months ended June 30, 2025 and 2024 resulted solely from proceeds from the exercise of stock options and purchases under the employee stock purchase plan.
Smaller Reporting Company Status and a Non-Accelerated Filer
We are a smaller reporting company as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as (i) our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.
As a smaller reporting company, we are permitted to comply with scaled-back disclosure obligations in our SEC filings compared to other issuers, including with respect to disclosure obligations regarding executive compensation in our periodic reports and proxy statements. We have elected to adopt the accommodations available to smaller reporting companies, including but not limited to:
•reduced disclosure obligations regarding our executive compensation arrangements; and
•being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure.
Additionally, as a non-accelerated filer, we may continue to take advantage of the exception from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended.
Critical Accounting Policies and Estimates
Our management's discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the revenue and expenses incurred during the reported periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to accrued expenses and stock-based compensation. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Changes in estimates are reflected in reported results for the period in which they become known. Actual results may differ from these estimates under different assumptions or conditions.
During the three and six months ended June 30, 2025, there were no material changes to our critical accounting policies as reported for the year ended December 31, 2024 as part of our Annual Report on Form 10-K, which was filed with the SEC on March 11, 2025. In addition, see Note 2 of our condensed consolidated financial statements under the heading "Recent Accounting Pronouncements" for new accounting pronouncements or changes to the accounting pronouncements during the three and six months ended June 30, 2025.
Ovid Therapeutics Inc. published this content on August 13, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on August 13, 2025 at 12:05 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]