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, 2025 and 2024 consisted of the following:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2025

 

 

 

Human Health

 

 

Animal Health

 

 

Total

 

External revenue

 

$

 

11,158

 

 

$

 

353

 

 

$

 

11,511

 

Less: Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

3,733

 

 

 

 

41

 

 

 

 

3,774

 

Research and development

 

 

 

22,370

 

 

 

 

2,596

 

 

 

 

24,966

 

Sales and marketing

 

 

 

8,856

 

 

 

 

379

 

 

 

 

9,235

 

General and administrative

 

 

 

8,999

 

 

 

 

11,649

 

 

 

 

20,648

 

Impairment loss on indefinite-lived intangible assets

 

 

 

800

 

 

 

 

 

 

 

 

800

 

Interest

 

 

 

114

 

 

 

 

(47

)

 

 

 

67

 

Other segment items*

 

 

 

1,123

 

 

 

 

7,349

 

 

 

 

8,472

 

Segment expenses

 

 

 

45,995

 

 

 

 

21,967

 

 

 

 

67,962

 

Segment net comprehensive loss

 

$

 

(34,837

)

 

$

 

(21,614

)

 

$

 

(56,451

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items**

 

 

 

 

 

 

 

 

 

 

 

2,043

 

Consolidated net comprehensive loss

 

 

 

 

 

 

 

 

 

$

 

(54,408

)

 

 

 

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

 

 

 

13,952

 

 

 

 

2,590

 

 

 

 

16,542

 

Sales and marketing

 

 

 

7,381

 

 

 

 

311

 

 

 

 

7,692

 

General and administrative

 

 

 

8,949

 

 

 

 

9,307

 

 

 

 

18,256

 

Interest

 

 

 

113

 

 

 

 

118

 

 

 

 

231

 

Other segment items*

 

 

 

(386

)

 

 

 

8,340

 

 

 

 

7,954

 

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

)

 

* 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,

 

 

 

2025

 

 

2024

 

Segment assets

 

 

 

 

 

 

 

Human Health

 

$

 

28,321

 

 

$

 

44,117

 

Animal Health

 

 

 

185,511

 

 

 

 

174,803

 

Total

 

$

 

213,832

 

 

$

 

218,920

 

 

For the years ended December 31, 2025 and 2024, the Company’s operations were divided into two geographical locations, Europe and the US. The carrying value of long-term assets in Europe totaled approximately $87,000 and $230,000, respectively, pertaining to a right-of-use asset for the Napo Therapeutics office and vehicle lease. In the US, the carrying value of long-term assets totaled approximately $18.2 million and $19.6 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,

 

(in thousands)

 

2025

 

 

2024

 

Total assets for reportable segments

 

$

 

213,832

 

 

$

 

218,920

 

Less: Investment in subsidiary

 

 

 

(29,231

)

 

 

 

(29,232

)

Less: Intercompany loan

 

 

 

(146,278

)

 

 

 

(136,263

)

Consolidated Totals

 

$

 

38,323

 

 

$

 

53,425

 

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Historical Timeline

Fiscal YearFiled
2025Apr 7, 2026Showing above
2024Mar 31, 2025
2023Apr 1, 2024
2022Mar 24, 2023
2021Mar 11, 2022
2020Mar 31, 2021
2019Apr 3, 2020
2018Apr 10, 2019

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.