Ovid Therapeutics Inc.OVID

Ovid Therapeutics Inc. Leases Disclosure

10-KFiled Mar 18, 20262 min read
LEASES
In September 2021, the Company entered into a 10-year lease agreement for its corporate headquarters, with a term commencing in March 2022, for approximately 19,000 square feet of office space at Hudson Commons in New York, NY (“Hudson Commons Lease”). The lease provides for monthly rental payments over the lease term. The base rent under the lease is currently $2.3 million per year. Rent payments commenced ten months following the commencement of the lease, or January 2023, and continue for ten years following the rent commencement date. The Company issued a letter of credit in the amount of $1.9 million in association with the execution of the lease agreement; the letter of credit is characterized as restricted cash on the Company’s consolidated balance sheets.
The Hudson Commons Lease has a remaining lease term of approximately eight years and includes a single renewal option for an additional five years. The Company did not include the renewal option in the lease term when calculating the lease liability as the Company is not reasonably certain that it will exercise the renewal option. The present value of the lease payments is calculated using an incremental borrowing rate of 7.02%. Lease expense is included in general and administrative and research and development expenses in the consolidated statements of operations.
ROU asset and lease liabilities related to the Company’s operating lease are as follows:
(in thousands)December 31,
2025		December 31,
2024
ROU asset, net$11,610 $12,797 
Current lease liability$1,433 $1,336 
Long-term lease liability$11,986 $13,419 
The components of operating lease cost for the year ended December 31, 2025 and 2024 were as follows:
(in thousands)December 31,
2025		December 31,
2024
Operating lease cost$2,167 $2,167 
Variable lease cost— — 
Short-term lease cost— — 
Future minimum commitments under the non-cancelable operating lease are as follows:
(in thousands)
2026$2,316 
20272,316 
20282,469 
20292,469 
20302,469 
Thereafter4,939 
$16,978 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 11, 2025
2023Mar 8, 2024
2022Mar 13, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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