16. Segment Data

The Company defines its segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker, or CODM, to analyze financial performance, make decisions, and allocate resources. The Company’s CODM is John Evans, its Chief Executive Officer. The Company manages its operations as a single operating and reportable segment and the measure of segment profit or loss is consolidated net income (loss). The CODM uses net income (loss) in the budget and forecasting process and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources.

The internal reporting of significant segment expenses is based on the functional classification. External expenses include costs from external manufacturing, clinical and research organizations, supply chain and logistics costs, consultants, and other vendors. Employee related expenses include, employee salaries and benefits costs, employee meal, travel and entertainment spend, along with payroll related taxes and other similar items. These functional costs exclude stock-based compensation, facility and information technology costs, depreciation and amortization, and other segment items.

The table below provides information about the Company’s segment, including significant expenses, other segment items, certain other segment expenses, and a reconciliation to net income (loss):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

License and collaboration revenue

 

$

139,743

 

 

$

63,518

 

 

$

377,709

 

Research and development expenses

 

 

 

 

 

 

 

 

 

External research and development expenses*

 

 

142,695

 

 

 

115,189

 

 

 

155,063

 

Employee related expenses*

 

 

117,366

 

 

 

98,796

 

 

 

109,878

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

External general and administrative expenses*

 

 

28,319

 

 

 

25,115

 

 

 

40,016

 

Employee related expenses*

 

 

43,124

 

 

 

34,822

 

 

 

31,305

 

Facility and information technology related expenses*

 

 

59,093

 

 

 

55,911

 

 

 

53,804

 

Depreciation and amortization

 

 

22,294

 

 

 

21,925

 

 

 

20,012

 

Stock-based compensation

 

 

94,244

 

 

 

120,662

 

 

 

98,647

 

Interest and other income

 

 

(43,733

)

 

 

(49,094

)

 

 

(46,676

)

Income tax expense

 

 

 

 

 

39

 

 

 

1,366

 

Other segment items

 

 

(243,667

)

 

 

16,895

 

 

 

46,821

 

Net income (loss)

 

$

(79,992

)

 

$

(376,742

)

 

$

(132,527

)

* Denotes significant segment expense

Other Segment Items includes:

Change in fair value of derivative liabilities
Change in fair value of non-controlling equity investments
Change in fair value of contingent consideration liabilities
Gain on sale of equity method investment
Milestone expense
License and Sublicenses fees
In-process research and development 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.