15. Segment Data

The Company has two reportable segments: animal health and human health. The animal health segment is focused on developing and commercializing prescription and non-prescription products for companion and production animals. The human health segment is focused on developing and commercializing human products and the ongoing commercialization of Mytesi, which the US FDA approves for the symptomatic relief of non-infectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. The Company has not disclosed revenue by geographic location as its revenues are distributed across multiple regions without significant concentration in any single area.

The accounting policies used in the segment reporting are the same as those described in the summary significant accounting policies (Note 2). The Company’s CODM is the chief financial officer. The CODM primarily

utilizes segment's net comprehensive profit or loss as the key indicator in assessing the segment's performance and allocating resources.

The Company's reportable segments' net revenues and net loss for the years ended December 31, 2024 and 2023 consisted of the following:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2024

 

 

 

Human Health

 

 

Animal Health

 

 

Total

 

External revenue

 

$

 

11,374

 

 

$

 

315

 

 

$

 

11,689

 

Less: Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

1,900

 

 

 

 

55

 

 

 

 

1,955

 

Research and development

 

 

 

13,949

 

 

 

 

2,590

 

 

 

 

16,539

 

Sales and marketing

 

 

 

7,381

 

 

 

 

311

 

 

 

 

7,692

 

General and administrative

 

 

 

8,949

 

 

 

 

9,307

 

 

 

 

18,256

 

Interest

 

 

 

113

 

 

 

 

227

 

 

 

 

340

 

Other segment items*

 

 

 

(383

)

 

 

 

8,231

 

 

 

 

7,848

 

Segment expenses

 

 

 

31,909

 

 

 

 

20,721

 

 

 

 

52,630

 

Segment net comprehensive loss

 

$

 

(20,535

)

 

$

 

(20,406

)

 

$

 

(40,941

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items**

 

 

 

 

 

 

 

 

 

 

 

1,907

 

Consolidated net comprehensive loss

 

 

 

 

 

 

 

 

 

$

 

(39,034

)

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2023

 

 

 

Human Health

 

 

Animal Health

 

 

Total

 

External revenue

 

$

 

9,588

 

 

$

 

173

 

 

$

 

9,761

 

Less: Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

1,978

 

 

 

 

59

 

 

 

 

2,037

 

Research and development

 

 

 

15,968

 

 

 

 

2,577

 

 

 

 

18,545

 

Sales and marketing

 

 

 

6,174

 

 

 

 

300

 

 

 

 

6,474

 

General and administrative

 

 

 

9,211

 

 

 

 

9,681

 

 

 

 

18,892

 

Interest

 

 

 

50

 

 

 

 

6,378

 

 

 

 

6,428

 

Other segment items*

 

 

 

(183

)

 

 

 

1,391

 

 

 

 

1,208

 

Segment expenses

 

 

 

33,198

 

 

 

 

20,386

 

 

 

 

53,584

 

Segment net comprehensive loss

 

$

 

(23,610

)

 

$

 

(20,213

)

 

$

 

(43,823

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items**

 

 

 

 

 

 

 

 

 

 

 

1,953

 

Consolidated net comprehensive loss

 

 

 

 

 

 

 

 

 

$

 

(41,870

)

 

* Other segment items for each reportable segment include:

Human Health - realized gain/loss on foreign exchange transactions, change in fair value of warrants, gain/loss on debt extinguishment, and share in net income or loss in joint venture.
Animal Health - realized and unrealized gain/loss on foreign exchange transactions.

** Adjustments and reconciling items include intercompany elimination entries

The Company’s reportable segments assets consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

(in thousands)

 

 

 

 

 

 

 

Segment assets

 

 

 

 

 

 

 

Human Health

 

$

 

44,117

 

 

$

 

42,289

 

Animal Health

 

 

 

174,803

 

 

 

 

153,190

 

Total

 

$

 

218,920

 

 

$

 

195,479

 

 

For the years ended December 31, 2024 and 2023, the Company’s operations were divided into two geographical locations, Europe and the US. The carrying value of fixed assets in Europe totaled $230,000 and $193,000, respectively, pertaining to a right-of-use asset for the Napo Therapeutics lease office. In the US, the carrying value of fixed assets totaled $19.6 million and $21.6 million, respectively, composed of property, plant, and equipment, right-of-use assets, and intangible assets.

 

The reconciliation of segments assets to the consolidated assets is as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

(in thousands)

 

 

 

 

 

 

 

Total assets for reportable segments

 

$

 

218,920

 

 

$

 

195,479

 

Less: Investment in subsidiary

 

 

 

(29,232

)

 

 

 

(29,232

)

Less: Intercompany loan

 

 

 

(136,263

)

 

 

 

(115,484

)

Consolidated Totals

 

$

 

53,425

 

 

$

 

50,763

 

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.