Arcturus Therapeutics Holdings Inc. Segments Disclosure
NOTE 12. Segment Information
The Company operates in one business segment, which includes all activities related to the discovery, development and commercialization of messenger RNA medicines. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”). The Company’s CODM is its , who reviews and evaluates consolidated net (loss) income for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods. The CODM does not evaluate the operating segment using asset or liability information.
The following table presents information about reported segment revenues, segment loss and income, and significant segment expenses:
|
|
For the Year Ended December 31, |
|
|||||||||
(in thousands) |
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
Revenues |
|
$ |
152,310 |
|
|
$ |
166,799 |
|
|
$ |
205,999 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Research and development: |
|
|
|
|
|
|
|
|
|
|||
LUNAR-COVID |
|
|
70,464 |
|
|
|
81,262 |
|
|
|
65,136 |
|
LUNAR-OTC |
|
|
9,509 |
|
|
|
9,315 |
|
|
|
8,898 |
|
BARDA |
|
|
7,807 |
|
|
|
5,465 |
|
|
|
95 |
|
LUNAR-CF, net |
|
|
17,227 |
|
|
|
14,666 |
|
|
|
6,931 |
|
Early-stage programs |
|
|
16,096 |
|
|
|
12,460 |
|
|
|
9,681 |
|
Discovery technologies |
|
|
6,278 |
|
|
|
6,405 |
|
|
|
6,082 |
|
Payroll and benefits |
|
|
57,474 |
|
|
|
50,924 |
|
|
|
42,466 |
|
Facilities and equipment |
|
|
10,301 |
|
|
|
11,636 |
|
|
|
8,462 |
|
Total research and development |
|
|
195,156 |
|
|
|
192,133 |
|
|
|
147,751 |
|
General and administrative |
|
|
52,823 |
|
|
|
52,871 |
|
|
|
46,071 |
|
Other (1) |
|
|
(14,728 |
) |
|
|
(48,480 |
) |
|
|
2,828 |
|
Net (loss) income |
|
$ |
(80,941 |
) |
|
$ |
(29,725 |
) |
|
$ |
9,349 |
|
(1) Primarily includes interest income and expense, foreign currency gains and losses, and income taxes. The year ended December 31, 2023 includes a $34.0 million gain on debt extinguishment related to forgiveness of the Singapore Loan.
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.