ArriVent BioPharma, Inc. Segments Disclosure
(12) Segment Information
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. The Company has one reportable segment: life science. The life science segment is engaged in identifying, licensing and globalizing top biopharma innovations from around the world to deliver important medicines to patients. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.
The accounting policies of the life science segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the life science segment based on net loss, which is reported on the statement of operations and comprehensive loss. The measure of segment assets is reported on the balance sheet as total assets. All of the Company’s assets are located in the United States.
To date, the Company has not generated any product revenue. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval.
As such, the CODM uses cash forecast models in deciding how to invest into the life science segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment, establishing cash forecast models and to optimize the distribution of resources across functions, therapeutic areas and research and development programs.
The table below summarizes the significant expense categories regularly provided to the CODM for the years ended December 31, 2025 and 2024:
Year Ended December 31, | ||||||
(in thousands) | | 2025 | | 2024 | ||
Operating expenses: | ||||||
Research and development: Firmonertinib (excluding personnel-related and other internal costs): | ||||||
FURTHER | $ | 9,838 | $ | 12,272 | ||
FURVENT | 48,741 | 34,135 | ||||
FAVOUR | 397 | 272 | ||||
Other Firmonertinib costs | 8,634 | 4,187 | ||||
Total Firmonertinib | 67,610 | 50,865 | ||||
Research and development: Early-stage programs | 55,470 | 10,940 | ||||
Research and development: Personnel-related and other internal costs | 30,271 | 17,199 | ||||
General and administrative: Personnel-related costs | 15,404 | 8,153 | ||||
General and administrative: Other costs | 8,779 | 7,151 | ||||
Other segment items (a) | (11,226) | (13,820) | ||||
Net loss | $ | (166,308) | $ | (80,488) | ||
| (a) | Other segment items is comprised of interest and investment income. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 3, 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.