Nkarta, Inc. Segments Disclosure
13. Segment Reporting
The Company operates as a reporting segment, focused on the research and development of cell therapies for patients with autoimmune diseases. The Company's measure of segment profit or loss is net loss. The , as the CODM, manages and allocates resources to the operations of the Company on a total company basis. The Company monitors its cash, cash equivalents, and investments as reported on the Company's Balance Sheets to determine funding for its research and development. The measure of segment assets is reported as total assets on the Company’s balance sheet.
As the Company is not yet generating revenue, the CODM evaluates its performance based on progress in pre-clinical and clinical research objectives. Along with the Company’s Statement of Operations and Comprehensive Loss, the CODM regularly reviews budgeted and forecasted expenses to assess liquidity requirements and allocate cash accordingly.
The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company's single reporting segment.
A reconciliation to the net loss for the years ended December 31, 2025 and 2024 is included at the bottom of the table below.
|
|
December 31, |
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|
|
2025 |
|
|
2024 |
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||
Segment expenses: |
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|
|
|
|
|
||
Personnel related expenses, excluding share-based compensation(1) |
|
$ |
39,762 |
|
|
$ |
41,129 |
|
Facilities expenses |
|
|
18,884 |
|
|
|
19,403 |
|
Direct external development program expenses |
|
|
23,302 |
|
|
|
21,431 |
|
Other segment expenses(2) |
|
|
21,506 |
|
|
|
20,348 |
|
Total segment expenses: |
|
|
103,454 |
|
|
|
102,311 |
|
Segment loss |
|
|
(103,454 |
) |
|
|
(102,311 |
) |
|
|
|
|
|
|
|
||
Reconciling items: |
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|
|
|
|
|
||
Depreciation and amortization |
|
|
(9,193 |
) |
|
|
(9,152 |
) |
Share-based compensation |
|
|
(8,559 |
) |
|
|
(16,731 |
) |
Impairment of ROU asset |
|
|
(791 |
) |
|
|
|
|
Interest income |
|
|
15,494 |
|
|
|
19,317 |
|
Other income, net |
|
|
2,419 |
|
|
|
87 |
|
Net loss |
|
$ |
(104,084 |
) |
|
$ |
(108,790 |
) |
(1) Personnel related expenses include $4.9 million of severance and other benefits expense for the year ended December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
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.