SEGMENT REPORTING
The Company has determined that it operates as one segment focused on developing medicines for brain disorders 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 Chief Executive Officer (“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 CODM. 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 CODM for the periods indicated:
For the Year Ended December 31,
(in thousands)20252024
Revenue$7,252 $566 
Payroll and payroll-related expenses7,765 9,889 
Direct program expenses
KCC2 library8,567 8,785 
OV3295,744 4,485 
OV888 (GV101)(224)8,212 
Gensaic projects— 1,493 
Other programs1,639 990 
Total direct program expenses15,726 23,965 
Other research and development expenses2,091 2,913 
Total research and development expenses25,582 36,767 
Payroll and payroll-related expenses10,043 13,835 
Legal and professional fees8,280 6,573 
General office expenses5,786 5,275 
Total general and administrative expenses24,110 25,684 
Total operating expenses49,691 62,451 
Operating loss(42,439)(61,885)
Other (income) expense, net
25,026 35,452 
Net loss$(17,414)$(26,433)

The program expense for OV888 is negative for the period ended December 31, 2025 because the Company recognized a contra-expense upon settlement of the amounts due to its collaboration partner and on reversal of an immaterial accrual estimate on final determination of amounts owed.
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 decrease in fair value of royalty monetization liability, gain/loss on fraudulent funds transfer, unrealized net gain on equity investments and interest/accretion income on securities.
Other significant segment information includes:
For the Year Ended December 31,
(in thousands)20252024
Decrease in fair value of royalty monetization liability$— $30,000 
Stock-based compensation expense4,807 6,276 
Interest/accretion income on securities2,026 3,915 
Severance expense882 3,508 
Gain from recovery of fraudulent funds transfer
1,800 — 
Loss on fraudulent funds transfer— 1,800 
Unrealized net gain on equity investments21,052 3,337 
Depreciation and amortization273 613 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 11, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.