NextCure, Inc. Segments Disclosure
14. Segment Information
We operate our business in one operating segment, which also represents one reportable segment: life sciences. The life sciences segment focuses on advancing innovative medicines that treat cancer patients that do not respond to, or that have disease progression on, current therapies, through the use of differentiated mechanisms of actions including antibody-drug conjugates (“ADCs”), antibodies and proteins. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.
The accounting policies of the life sciences segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the life science segment based on net loss, which is reported on the statements of operations and comprehensive net loss as net loss. The measure of segment assets is reported on the balance sheet as total assets.
To date, the Company has not generated any product revenue. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval.
As such, the CODM uses cash forecast models in deciding how to invest into the life sciences segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment and in establishing management’s compensation, along with cash forecast models.
The tables below summarize the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2024 and 2023:
(in thousands) | December 31, | December 31, | ||||
2024 |
| 2023 | ||||
Research and development expenses | ||||||
Employee costs | $ | 13,252 | $ | 16,684 | ||
Clinical product candidates | 13,562 | 16,194 | ||||
Nonclinical product candidates | 9,182 | 8,658 | ||||
Depreciation and amortization | 2,792 | 3,593 | ||||
Other R&D (1) | 2,700 | 2,802 | ||||
Total R&D | $ | 41,488 | $ | 47,931 | ||
General and administrative expenses | ||||||
Employee costs | $ | 8,400 | $ | 10,912 | ||
Professional services | 4,449 | 5,067 | ||||
Insurance | 1,281 | 2,001 | ||||
Other G&A (2) | 1,588 | 1,726 | ||||
Total G&A | $ | 15,718 | $ | 19,706 | ||
| (1) | Other R&D consists of facilities related expenses and office expenses. |
| (2) | Other G&A consists of facilities related expenses, depreciation, office expenses and taxes and fees. |
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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.