Edgewise Therapeutics, Inc. Segments Disclosure
NOTE 11 SEGMENT REPORTING
The Company has one reportable segment focused on the discovery, development, and manufacture of drug products for the treatment of various muscular disorders. Our determination that we operate as a single segment is consistent with the financial information regularly reviewed by the chief operating decision maker (CODM) for purposes of evaluating performance, allocating resources, and planning and forecasting for future periods. Our business activities are managed on a consolidated basis based on net loss that is also reported on the Statement of Operations and Comprehensive Loss as Net Loss. The Company’s CODM is the President and Chief Executive Officer (CEO). The measure of segment assets is reported on the balance sheet as total assets.
Substantially all of the Company’s assets are used to support the research, manufacture, and development of drug products for the treatment of muscular disorders; clinical and research data are key drivers in deciding how to allocate resources. The CEO uses net loss and significant segment expenses to monitor budget versus actual results and make decisions on whether to invest in internal or external resources to support the Company’s research and development programs, as well as determine if additional funding is needed for the Company’s research efforts.
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Operating expenses: |
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Contracted research expense | $ | 87,987 | $ | 80,214 | $ | 57,497 | |||
Personnel expense | 47,606 | 35,797 | 24,604 | ||||||
Stock-based compensation expense | 34,752 | 24,712 | 17,556 | ||||||
Other segment expense(a) | 18,977 | 16,040 | 13,149 | ||||||
Depreciation | 2,084 | 2,069 | 1,551 | ||||||
Segment net loss | (191,406) | (158,832) | (114,357) | ||||||
Reconciliation of net loss | |||||||||
Interest income | 23,611 | 25,019 | 14,194 | ||||||
Net Loss | $ | (167,795) | $ | (133,813) | $ | (100,163) | |||
a Other segment expense included in Segment net loss includes contracted administrative expenses, intellectual property fees, software costs, occupancy & equipment costs, and other overhead expenses.
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.