v3.26.3
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2026
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Segment Information

Segment Information

The Company operates as a single reportable segment in the development of novel therapies for the treatment of neuropsychiatric diseases, including schizophrenia. The Company has not generated revenues since inception. The Company’s

chief operating decision maker (“CODM”) is its Chief Executive Officer (“CEO”). The CODM reviews the Company’s performance on an aggregate basis, thus the segment’s loss is the Company’s net loss, as reported on the accompanying condensed statements of operations, and the segment’s assets are the Company’s total assets, as reported on the accompanying condensed balance sheets. Significant expenses provided to the CODM include research and development and general and administrative expenses, as reported on the accompanying condensed statements of operations.

The following table presents the significant segment expenses regularly provided to the CODM and a reconciliation to net loss (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

$

10,982

 

 

$

2,827

 

 

$

28,211

 

 

$

8,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

 

 

 

 

 

 

 

 

 

 

 

Schizophrenia programs

 

 

36,394

 

 

 

25

 

 

 

73,635

 

 

 

512

 

Bipolar depression programs

 

 

2,753

 

 

 

57

 

 

 

8,425

 

 

 

57

 

Formulation and CMC

 

 

2,995

 

 

 

1,044

 

 

 

8,300

 

 

 

2,717

 

Preclinical and other direct expenses

 

 

4,029

 

 

 

6

 

 

 

6,017

 

 

 

123

 

Total direct research and development expenses

 

 

46,171

 

 

 

1,132

 

 

 

96,377

 

 

 

3,409

 

Personnel-related

 

 

4,720

 

 

 

837

 

 

 

12,054

 

 

 

3,154

 

Consulting and other

 

 

625

 

 

 

450

 

 

 

1,876

 

 

 

1,698

 

Total indirect and unallocated research and development expenses

 

 

5,345

 

 

 

1,287

 

 

 

13,930

 

 

 

4,852

 

Total research and development expenses

 

 

51,516

 

 

 

2,419

 

 

 

110,307

 

 

 

8,261

 

Total operating loss

 

 

(62,498

)

 

 

(5,246

)

 

 

(138,518

)

 

 

(16,534

)

Non-operating income

 

 

3,432

 

 

 

1,690

 

 

 

8,795

 

 

 

2,801

 

Net loss

 

$

(59,066

)

 

$

(3,556

)

 

$

(129,723

)

 

$

(13,733

)

The CODM uses information primarily to evaluate the Company’s performance and allocate resources. This includes reviewing key financial metrics such as budget versus actual expenditures and assessing overall cash flow and liquidity to ensure the continuity of operations. This approach allows the CODM to monitor the Company's performance and make strategic adjustments as needed to support its operational and financial goals.

The Company’s operations and all long-lived assets are located in the United States.
Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which requires enhanced income tax disclosures, including a tabular rate reconciliation using specified categories with disaggregated information for significant reconciling items that meet a quantitative threshold, and disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. As the Company has elected the extended transition period available to emerging growth companies under the JOBS Act, the guidance is effective for the Company for fiscal years beginning after December 15, 2025, and the Company expects to adopt ASU 2023-09 for its fiscal year ending December 31, 2026. Early adoption is permitted. As the standard impacts disclosure requirements only and does not affect recognition or measurement, the Company does not expect adoption to have a material impact on its financial position or results of operations but does expect expanded income tax disclosures upon adoption.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to provide disaggregated disclosures of certain income statement expense line items on an annual and interim basis, including the amounts of employee compensation, depreciation, amortization and depletion, and other specified cost categories included in each relevant expense caption. The guidance applies only to public business entities and is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early

adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements which reorganizes and clarifies the interim disclosure requirements in ASC 270 to improve usability and clarify when interim reporting guidance applies. The ASU also introduces a disclosure principle requiring entities to describe events occurring after the end of the most recent annual reporting period that have a material impact on the interim period. The standard does not change the fundamental nature or quantity of interim disclosures required under GAAP. For public business entities, the guidance is effective for interim periods within fiscal years beginning after December 15, 2027. For all other entities, the guidance is effective for interim periods within fiscal years beginning after December 15, 2028. As the Company has elected the extended transition period available to emerging growth companies under the JOBS Act, the Company expects to adopt this guidance for interim periods within fiscal years beginning after December 15, 2028. Early adoption is permitted. The Company does not expect adoption to have a material impact on its financial statements or disclosures.
Short-term Investments

The Company accounts for short-term investments held as “available-for-sale” in accordance with ASC 320, Investments-Debt Securities. The Company classifies these investments as current assets and carries them at fair value and accrued interest on short-term investments is included within short-term investments on the condensed balance sheets.

The fair value of the Company's short-term investments classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.
Certificate of Deposit

Certificate of Deposit

The Company’s certificates of deposit are Level 2 instruments. The fair value of Level 2 instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs may include interest rate curves, foreign exchange rates, and credit ratings.