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KPIsSections19
Income flow
| Revenue — GREEN | $733,000 | -88.6% YoY |
|---|---|---|
| Net income — GREEN | -$32.0M | -114.5% YoY |
| Net margin — GREEN | -4365.1% | |
| Operating margin — RED | -4576.0% |
Red flags5 red2 orange
Liquidity5
RED
Negative operating cash flow
operating_cf_burnThe company is burning cash from operations — sustainability depends on financing.
RED
Net margin -4365.1%
net_margin_sharply_negativeNet income margin below -5% — profitability materially negative vs revenue.
RED
Cash conversion (CFO/Rev) -4296.5%
cash_conversion_weakCFO/Revenue below 0 — operating model not generating cash despite revenue.
RED
Cash runway ~0.4 years
cash_runway_lowAt current burn rate, cash covers less than 2 years — may require near-term financing.
ORANGE
Accumulated deficit / equity 169%
accumulated_deficit_highAccumulated deficit exceeds equity book value — balance sheet technically impaired.
Dilution · capital1
RED
SBC/Revenue 337.9%
sbc_revenue_highStock-based compensation exceeds 25% of revenue — materially dilutive.
Concentration1
ORANGE
R&D/Revenue 2883.6%
rd_intensity_highR&D exceeds 40% of revenue — sustainable only if growth trajectory justifies the investment.
Income Statement
| Metric | Value | Flag |
|---|---|---|
| EPS (diluted) | $-0.19 | GREEN |
| Net Income | -$32.0M | GREEN |
| Net Margin | -4365.1% | GREEN |
| Operating Margin | -4576.0% | RED |
| R&D % Revenue | 2883.6% | GREEN |
| Revenue | $733,000 | GREEN |
| Revenue (quarter) | $733,000 | GREEN |
Balance Sheet
| Metric | Value | Flag |
|---|---|---|
| Broad Liquidity | $117.2M | GREEN |
| Cash | $11.3M | GREEN |
| Current Ratio | 12.39 | GREEN |
| Total Assets | $232.0M | GREEN |
| Total Equity | $209.9M | GREEN |
Cash Flow
| Metric | Value | Flag |
|---|---|---|
| Cash Conversion (CFO/Rev) | -42.96 | GREEN |
| Operating CF | -$31.5M | GREEN |
| SBC % Revenue | 337.9% | GREEN |
Sections in this filing
MD&A
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following information should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q and the audited financial information and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”) on March 18, 2026. In addition to historical financial information, the following discussion contains forward-looking statements based upon our current plans, expectations and beliefs that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events may differ materially from those described in or implied by these forward-looking statements as a result of many factors, including those set forth under the section titled “Risk Factors” in Part II, Item 1A. You should carefully read the “Risk Factors” section of this Quarterly Report on Form 10-Q to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the section entitled “Special Note Regarding Forward-Looking Statements.” Overview We are a biopharmaceutical company dedicated to pioneering better, gentler medicines for the brain. Our company discovers and develops differentiated small molecule medicines for neurological and neuropsychiatric disorders with significant unmet need. Our approach to achieve this goal is scientifically driven, patient focused, and coupled with an integrated and disciplined approach to research, clinical development and business development. Our team has significant experience with and understanding of epilepsies and other neurological conditions, and we continue to gain insight into the ways the different molecular mechanisms and pathways underlying these disorders impact the symptoms patients experience. We have developed a differentiated pipeline of drug candidates containing novel mechanisms of action (“MoAs”) to target seizures and other central nervous system conditions and believe we are the only company that holds a portfolio of direct activators of potassium-chloride cotransporter 2 (“KCC2”). Two of our programs are currently in clinical trials, and others are p