Ovid Therapeutics (OVID) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenue for the three months ended June 30, 2024, was $169,000, an increase of 125$75,000 in the same period in 2023[93]. - For the six months ended June 30, 2024, total revenue was $317,000, up from$141,000 in the same period in 2023, representing a 125% increase[99]. - Other income for the three months ended June 30, 2024, was $29.0 million, significantly up from$1.8 million in the same period in 2023, marking an increase of $27.2 million[97]. - Net income for the three months ended June 30, 2024, was$8.5 million, a turnaround from a net loss of $12.4 million in the same period in 2023[102]. Expenses and Losses - The company expects to incur significant expenses and operating losses for at least the next several years due to ongoing clinical trials and research activities[82]. - Research and development expenses are expected to increase as the company advances its drug candidates through preclinical studies and clinical trials[89]. - Research and development expenses rose to$12.6 million for the three months ended June 30, 2024, compared to $6.0 million in 2023, reflecting an increase of$6.6 million[94]. - Research and development expenses for the six months ended June 30, 2024, totaled $23.0 million, compared to$12.6 million in 2023, an increase of $10.4 million[99]. - Total operating expenses for the three months ended June 30, 2024, were$20.7 million, compared to $14.2 million in 2023, an increase of$6.4 million[94]. - General and administrative expenses for the six months ended June 30, 2024, were $15.3 million, down from$16.6 million in 2023, a decrease of $1.3 million[100]. Cash and Funding - As of June 30, 2024, the company had$77.0 million in cash, cash equivalents, and marketable securities, with an accumulated deficit of $281.0 million[82]. - As of June 30, 2024, the company had total cash, cash equivalents, and marketable securities of$77.0 million, expected to fund operations for at least the next 12 months[102]. - The company has raised net proceeds of $275.4 million from the sale of its capital stock as of June 30, 2024[82]. - The company has$250.0 million available under its S-3 Registration Statement, including $75.0 million available through an at-the-market offering program[105]. - Net cash used in operating activities was$30.9 million for the six months ended June 30, 2024, compared to $23.8 million for the same period in 2023[108]. - Net cash provided by investing activities was$33.0 million for the six months ended June 30, 2024, down from $50.3 million in 2023, primarily due to the maturity of marketable securities[109]. Organizational Changes - The company reduced its workforce by 17 people, approximately 43$3.7 million in charges related to the organizational restructuring, including severance and benefits[85]. - The company expects to complete the majority of its organizational restructuring and related cash payments by the second quarter of 2025[104]. - The company may incur additional charges or cash expenditures due to unanticipated events related to the organizational restructuring[104]. Product Development - The company is developing a portfolio of direct activators of KCC2 for potential treatment of seizures and other neurological indications, with regulatory filings anticipated in the second half of 2024[83]. - The company announced plans to initiate a signal-finding trial for OV888/GV101 in the second half of 2024 following positive topline data from a Phase 1 study[83]. - The company has not generated any revenue from commercial drug sales and does not expect to until regulatory approval is obtained[87]. - The company has no products approved for commercial sale and has not generated any revenue from product sales to date[104]. Market Risks - Increased inflation rates may lead to higher operating costs and affect the company's operating budgets[104]. - The company’s primary exposure to market risk is interest rate sensitivity, with an immediate 100 basis point change in interest rates not expected to materially affect the fair market value of its cash equivalents and marketable securities[114]. - The company is classified as a smaller reporting company, allowing it to take advantage of scaled disclosures in SEC filings[111].