FATE THERAPEUTICS INC Segments Disclosure
11. Segment Reporting
The Company has one reportable segment relating to its operations. The segment derives its current revenues from research and development collaborations.
The Company’s Chief Operating Decision Maker (the CODM), its Chief Executive Officer, manages the Company’s operations on an integrated basis for the purposes of allocating resources. When evaluating the Company’s financial performance, the CODM reviews total revenues, total expenses and expenses by certain categories and makes decisions using this information.
The table below is a summary of the segment profit or loss, including significant segment expenses (in thousands):
|
|
Years Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
$ |
6,646 |
|
|
$ |
13,631 |
|
|
Less: |
|
|
|
|
|
|
||
Personnel costs |
|
|
44,002 |
|
|
|
43,684 |
|
Clinical programs |
|
|
24,397 |
|
|
|
25,818 |
|
Research activities |
|
|
6,888 |
|
|
|
14,692 |
|
Facilities costs |
|
|
23,174 |
|
|
|
26,648 |
|
Other segment expenses (1) |
|
|
55,889 |
|
|
|
113,065 |
|
Total operating expenses |
|
|
154,350 |
|
|
|
223,907 |
|
Loss from operations |
|
|
(147,704 |
) |
|
|
(210,276 |
) |
Other income (expense): |
|
|
|
|
|
|
||
Interest income |
|
|
11,052 |
|
|
|
17,288 |
|
Change in fair value of stock price appreciation milestones |
|
|
244 |
|
|
|
819 |
|
Other income |
|
|
93 |
|
|
|
5,907 |
|
Total other income |
|
|
11,389 |
|
|
|
24,014 |
|
Net loss |
|
$ |
(136,315 |
) |
|
$ |
(186,262 |
) |
(1) Other segment expenses include stock compensation expense, depreciation, legal fees, general & administrative expenses, and corporate 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.