17. Segment Reporting
The Company has one reportable segment relating to the research and development of its research programs, CR-001, CR-002, and CR-003. The Company’s CODM, its Chief Executive Officer, manages the Company’s operations on a company-wide basis for the allocation of resources and the assessment of performance. The Company’s measure of segment profit or loss used to assess performance and allocate resources is net loss and comprehensive loss. Although the Company’s financial reporting package that is reviewed and approved by the CODM disaggregates significant expenses such as program-level external research and development costs, personnel costs, including share-based compensation expense, and professional and consulting fees, all decisions made by the CODM are based upon reviewing operating metrics and performance indications at the Company-wide level. The CODM uses net loss to evaluate loss generated from the Company’s business activities in deciding how to allocate company resources and monitoring budget versus actual results. Assets are also managed on a Company-wide basis.
The table below is a summary of the segment loss, including significant segment expenses (in thousands):
| | | | | | | | | | | |
| Twelve Months Ended
December 31, 2025 | | Period from September 19, 2024 (Inception) Through December 31, 2024 |
| License revenue | $ | 10,844 | | | $ | — | |
| Less: | | | |
| CR-001 external research and development costs | 25,547 | | | 6,610 | |
| CR-002 external research and development costs | 8,636 | | | 751 | |
Discovery external research and development costs(1) | 1,952 | | | — | |
| Personnel costs | 31,022 | | | 1,214 | |
Milestone and license fees(2) | 84,710 | | | 6,400 | |
Professional and other fees(3) | 11,609 | | | 2,216 | |
| Other expense (income) | (690) | | | 676 | |
| Provision for income taxes | 2,000 | | | — | |
| Net loss and comprehensive loss | $ | (153,942) | | | $ | (17,867) | |
_________________________
(1)Discovery external research and discovery costs include costs associated with candidate discovery activities.
(2)Milestone and license fees for the twelve months ended December 31, 2025 includes the license fee for CR-003 related to the SKB105 License Agreement.
(3)Profession and other fees includes professional fees, consulting fees, office and facilities expense, and miscellaneous other expense.
For the year ended December 31, 2025, all of the Company’s revenues were earned from a license agreement with a single customer located in China. As of December 31, 2025, all of the Company’s long-lived assets are located in the United States.
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.