MUSTANG BIO, INC. Segments Disclosure
Note 12 – Segment Information
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. The Company views its operations and manages its business in one reportable segment, which reflects the research and development of potential cures for difficult-to-treat cancers and autoimmune diseases. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The primary financial measure by which the CODM evaluates the business is net loss. The CODM uses net loss to monitor budget versus actual results to assess performance of the segment.
The table below summarizes the significant segment expenses reported to the CODM for the years ended December 31, 2024 and 2023:
For the year ended December 31, | ||||||
2024 | 2023 | |||||
Operating expenses: | ||||||
MB-106 program costs | $ | 516 | $ | 4,727 | ||
MB-109 program costs | 487 | 1,140 | ||||
All other program costs | (641) | 548 | ||||
Research and development - stock-based compensation | (650) | 132 | ||||
Research and development - other costs (1) | 7,845 | 33,966 | ||||
Research and development - licenses acquired | 861 | 527 | ||||
General and administrative - stock-based compensation | 201 | 435 | ||||
General and administrative - other costs (2) | 3,934 | 9,251 | ||||
Segment operating loss | $ | 12,553 | $ | 50,726 | ||
Reconciliation to net loss | ||||||
Asset impairment | (3,692) | - | ||||
Gain on sale of property and equipment | - | 1,466 | ||||
Other income (expense), net | 314 | 917 | ||||
Interest income (expense), net | 179 | (3,259) | ||||
Net Loss | $ | (15,752) | $ | (51,602) | ||
| (1) | Includes expenses primarily related to the repurchase of equipment from uBriGene and termination of existing manufacturing and service agreements with uBriGene, lab supplies and software licenses and subscriptions. |
| (2) | Includes expenses primarily related to outside service costs, business insurance and board of director fees. |
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.