SEGMENT REPORTING

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280),” which requires companies to enhance disclosure of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker, extend certain annual disclosures to interim periods, and permits more than one measure of segment profit or loss to be reported under certain conditions. The amendments are effective for the Company in years beginning after December 15, 2023, and interim periods within years beginning after December 15, 2024.

The Company has determined that it operates as one segment focused on developing medicines for brain conditions with significant unmet need. The Company’s pre-commercial development drug candidates have similar economic and other characteristics, including all being in the small-molecule therapeutic class that share target markets, development pathways, and regulatory environments. The Chief Operating Decision Maker (“CODM”) is the Chairman and CEO, who reviews profit and loss information on a consolidated basis to assess performance and make operating and planning decisions, including resource allocations among active programs. The determination of the single segment is consistent with the information provided to the CEO. As the Company’s operations are comprised of a single reporting segment, the segment assets are reflected on the accompanying consolidated balance sheet as “total assets”. Segment asset information is not used by the CODM to allocate resources.

The following tables summarize the Company’s segment information as presented to the CEO and as required in ASU 2023-07 for the periods indicated:

	For the Three Months Ended March 31,
(in thousands)	2025		2024
Revenue	$	130	$	148
Payroll and payroll-related expenses	1,837		2,937
Direct program expenses
OV350/KCC2 library	2,778		1,778
OV888 (GV101)	339		2,840
OV329	859		1,239
Gensaic projects	—		521
Other programs	268		318
Total direct program expenses	4,244		6,697
Other research and development expenses	578		763
Total research and development expenses	6,659		10,397
Payroll and payroll-related expenses	3,130		3,891
Legal and professional fees	1,451		1,673
General office expenses	1,440		1,604
Total general and administrative expenses	6,021		7,168
Total operating expenses	12,680		17,565
Operating loss	(12,550)		(17,417)
Other (income) expense	(2,315)		(5,723)
Net loss	$	(10,235)	$	(11,694)

Other research and development expenses include general office expenses allocated to research and development, including costs related to rent and depreciation of leasehold improvements, and nonclinical contract labor. Other income/expense includes a gain on fraudulent funds transfer, unrealized net gain on equity investments and interest/accretion income on securities.

Other significant segment information includes:

	For the Three Months Ended March 31,
(in thousands)	2025	2024
Stock-based compensation expense	1,284	1,968
Interest/accretion income on securities	491	1,327
Severance expense	435	—
Gain on recovery of fraudulent funds transfer	1,800	—
Unrealized net gain on equity investments	—	4,394
Depreciation and amortization	141	136