Opus Genetics, Inc.
For the period ended Dec 31, 2025. Filed Mar 12, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 12, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Opus Genetics, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Opus Genetics, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, changes in series A preferred stock and stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.
| Valuation of liability-classified warrants | |
| Description of the Matter | As discussed in Note 7 to the financial statements, the Company has issued warrants to purchase shares of its common stock in connection with financing activities. The Company accounts for certain warrants as liabilities on the balance sheet that are measured at fair value at inception and each reporting period thereafter. The Company's warrant liability as of December 31, 2025 totaled $25.9 million, and expense of $11.5 million was recognized in the statement of operations during the year ended December 31, 2025 for changes in the fair value of these warrants. The fair value of these warrants was estimated using a Monte Carlo valuation methodology. Auditing the fair value of the warrant liability was challenging due to the judgmental nature of selecting an appropriate valuation model and the model’s significant assumptions. These assumptions are highly subjective and require the evaluation of possible future events. |
|---|---|
| How We Addressed the Matter in Our Audit | To test the estimated fair value of the warrants, our audit procedures included, among others, assessing the Company's use of the Monte Carlo methodology and evaluating the significant assumptions used in the model. Our testing of the significant assumptions included performing inquiries with Company executives and members of the Board of Directors, assessing other available evidence from internal and external sources, and performing sensitivity analyses on the assumptions. We involved our valuation specialists to assist in our evaluation of Company’s model, valuation methodology, and underlying calculation. |
/s/Ernst & Young LLP
We have served as the Company’s auditor since 2018.
Detroit, Michigan
March 12, 2026
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.