Iterum Therapeutics plc Segments Disclosure
(12) Segment Reporting
In accordance with FASB ASC Topic 280, Segment Reporting, the Company has determined that it operates as a business segment, which is the development and commercialization of innovative treatments for drug resistant bacterial infections. The financial results of the Company’s operations are managed and reported to the and Chief Financial Officer (CFO), who together are considered the Company’s chief operating decision maker (CODM), on a consolidated basis. The CODM assesses performance and allocates resources based on the Company’s consolidated statements of operations and key components and processes of the Company’s operations are managed centrally. Segment asset information is not used by the CODM to allocate resources.
As a single reportable segment entity, the Company’s segment performance measure is net income / (loss) attributable to shareholders. Significant segment expenses, as provided to the CODM, are presented below.
|
Years Ended December 31, |
|
|||||||||
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
Segment cost of sales (a) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Segment research and development (b) (c) (d) |
|
(10,247 |
) |
|
|
(37,842 |
) |
|
|
(14,456 |
) |
Segment general and administration (c) (d) |
|
(7,789 |
) |
|
|
(7,092 |
) |
|
|
(9,369 |
) |
Share-based compensation expense (see Note 14) |
|
(376 |
) |
|
|
(784 |
) |
|
|
(4,758 |
) |
Depreciation and amortization |
|
(284 |
) |
|
|
(1,750 |
) |
|
|
(1,800 |
) |
Operating loss |
$ |
(18,696 |
) |
|
$ |
(47,468 |
) |
|
$ |
(30,383 |
) |
Interest Expense, Net
|
Years Ended December 31, |
|
|||||||||
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
Interest income |
$ |
789 |
|
|
$ |
1,722 |
|
|
$ |
819 |
|
Interest expense |
|
(3,311 |
) |
|
|
(3,150 |
) |
|
|
(3,180 |
) |
Interest expense, net |
$ |
(2,522 |
) |
|
$ |
(1,428 |
) |
|
$ |
(2,361 |
) |
Long-Lived Assets
The distribution of long-lived assets by geographical area was as follows:
Long lived assets |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Ireland |
|
$ |
19,759 |
|
|
$ |
342 |
|
U.S. |
|
|
15 |
|
|
|
287 |
|
Total |
|
$ |
19,774 |
|
|
$ |
629 |
|
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.