Note 14. Segments

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker (the CODM). The Company views its operations and manages its business as one operating and reportable segment, focused on developing therapeutics for patients with immune-mediated diseases. The Company’s CODM is its chief executive officer.

Segment profit or loss is measured as net loss presented in the consolidated statements of operations and comprehensive loss. For the purpose of evaluating segment performance and allocating resources, the CODM reviews the Company’s financial information on a consolidated basis together with certain operating metrics and evaluates net loss against comparable prior periods and the Company’s annual operating plan. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.

In addition to the significant expense categories included within net loss presented on the consolidated statements of operations and comprehensive loss, the following table sets forth disaggregated research and development expenses (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Direct research and development expenses:

 

 

 

 

 

 

Budoprutug

 

$

25,045

 

 

$

5,982

 

CLYM1161

 

 

11,964

 

 

 

 

Legacy programs2

 

 

107

 

 

 

201

 

Unallocated research and development expenses:

 

 

 

 

 

 

Personnel-related (including stock-based compensation)

 

 

8,232

 

 

 

7,990

 

Other research and development expenses

 

 

1,365

 

 

 

163

 

Total research and development expenses

 

$

46,713

 

 

$

14,336

 

 

1 Includes the upfront payment and the associated direct transaction costs incurred in connection with the Mabworks Agreement for the year ended December 31, 2025.

2 Includes direct expenses related to the Company's legacy product candidates ETX-123 and ETX-155.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 25, 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.