(3) SEGMENT REPORTING

The Company manages its operations as a single operating segment. The Company’s CODM uses consolidated, single-segment financial information for the purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods.

The CODM assesses performance and decides how to allocate resources based on the Company’s consolidated net loss, including key components of research and development costs and general and administrative costs. These measures are used to monitor budget versus actual results and to evaluate the performance of the segment.

The CODM reviews cash, cash equivalents and investments as a measure of segment assets. As of December 31, 2025 and 2024, the Company’s cash, cash equivalents and investments were $48.3 million and $131.3 million, respectively.

The following table presents the significant segment expenses for the years ended December 31, 2025, 2024 and 2023 (in thousands):

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Research and development expenses:

 

 

 

 

 

 

 

 

 

Clinical and development costs

 

$

44,418

 

 

$

61,868

 

 

$

99,362

 

Preclinical costs

 

 

2,105

 

 

 

6,717

 

 

 

3,682

 

Personnel and related costs

 

 

17,037

 

 

 

23,085

 

 

 

19,407

 

Stock-based compensation expense

 

 

6,205

 

 

 

18,490

 

 

 

14,665

 

Other research costs

 

 

7,231

 

 

 

6,213

 

 

 

4,679

 

Total research and development expenses

 

 

76,996

 

 

 

116,373

 

 

 

141,795

 

General and administrative expenses:

 

 

 

 

 

 

 

 

 

Personnel and related costs

 

 

8,672

 

 

 

7,619

 

 

 

7,100

 

Stock-based compensation expense

 

 

6,374

 

 

 

8,603

 

 

 

11,608

 

Other general and administrative costs

 

 

8,804

 

 

 

9,872

 

 

 

9,775

 

Total general and administrative expenses

 

 

23,850

 

 

 

26,094

 

 

 

28,483

 

Impairment charge:

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

 

3,175

 

 

 

 

 

 

 

Total impairment charge

 

 

3,175

 

 

 

 

 

 

 

Loss from operations

 

 

(104,021

)

 

 

(142,467

)

 

 

(170,278

)

Interest income

 

 

3,964

 

 

 

9,366

 

 

 

10,649

 

Interest expense

 

 

(1,602

)

 

 

(1,729

)

 

 

(1,565

)

Other income (expense), net

 

 

(36

)

 

 

(20

)

 

 

389

 

Net loss

 

$

(101,695

)

 

$

(134,850

)

 

$

(160,805

)

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 6, 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.