Segments
The Company’s operations are managed and reported to its President and CEO, the Company’s Chief Operating Decision Maker (“CODM”), on a consolidated basis. The Company is a clinical-stage biopharmaceutical company advancing psychiatry through its proprietary Precision Psychiatry Platform, which leverages advanced data science and neurobiology to develop personalized treatments. The CODM assesses performance and allocates resources based on the Company’s consolidated net loss, as the integrated approach to neurobiologically driven drug development requires the CODM to manage and evaluate the results of the business in a consolidated manner to drive efficiencies and develop uniform strategies. Accordingly, key components and processes of the Company’s operations are managed centrally, including clinical studies and personnel. Asset information is not used by the CODM to allocate resources. Under this organizational and reporting structure, the Company has one reportable segment.
As a single reportable segment entity, the Company’s segment performance measure is consolidated net loss. Certain significant segment expenses below loss from operations are presented in the Company’s consolidated statements of operations and are therefore not presented below. Additional disaggregated significant segment expenses on a functional basis, that are not separately presented on the Company’s consolidated statements of operations, are presented below (in thousands):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Personnel expenses excluding stock-based compensation | $ | 21,319 | | | $ | 20,851 | |
| Stock-based compensation | 8,108 | | | 7,631 | |
| Direct external program expenses: | | | |
| ALTO-100 | 5,871 | | | 7,371 | |
| ALTO-300 | 4,469 | | | 6,410 | |
| ALTO-101 | 4,978 | | | 2,798 | |
| ALTO-203 | 1,620 | | | 3,672 | |
| ALTO-207 | 1,599 | | | — | |
Other research and development (a) | 7,534 | | | 7,810 | |
Other general and administrative (b) | 10,866 | | | 12,067 | |
| Loss from operations | $ | 66,364 | | | $ | 68,610 | |
(a) Other research and development expenses primarily consists of license fees, facility charges, third party consultant costs, early research costs related to other product candidates, and other unallocated costs.
(b) Other general and administrative costs include professional fees, insurance, consultant fees and facility charges.
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.