16. Segment Information

The Company offers a comprehensive portfolio of regenerative medicine products. The Company organizes its products into two product categories, AWC and SSM, which serve two adjacent markets. Many of the Company’s products are clinically interchangeable and certain products are categorized as both AWC and SSM products. The Company’s products all contain regenerative medicine technologies and have the same customers and target market, require similar raw materials and commercial infrastructure, and exist within the same regulatory environment.

The Company’s CODM is the Chief Executive Officer. The CODM reviews consolidated gross profit and operating results to assess the overall performance of the Company, and make decisions to allocate resources among the consolidated entity. The CODM uses both gross profit and net income for the consolidated entity in the annual budget and forecasting process, and considers budget-to-actual variances in gross profit and operating expenses on a quarterly basis when making decisions about the allocation of operating and capital resources to each predominant business activity (research and development, capital expenditure, and employee headcount and compensation).

Prior period segment expense amounts have been recast to reflect the method for allocating expenses to segments in the current period.

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net product revenue

 

$

563,030

 

 

$

482,043

 

 

$

433,140

 

Grant income

 

 

1,139

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

137,522

 

 

 

115,741

 

 

 

106,481

 

Clinical expense

 

 

17,697

 

 

 

23,614

 

 

 

19,377

 

Sales and marketing

 

 

214,575

 

 

 

203,298

 

 

 

180,541

 

General and administrative

 

 

108,338

 

 

 

87,812

 

 

 

84,295

 

Other segment items (a)

 

 

49,005

 

 

 

50,717

 

 

 

37,501

 

Segment net income

 

 

37,032

 

 

 

861

 

 

 

4,945

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment net income:

 

 

 

 

 

 

 

 

 

Reconciling items

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

37,032

 

 

$

861

 

 

$

4,945

 

 

(a) Other segment items include: research and development related salary, payroll taxes and benefits, research and development related rent and other facilities expense, research and development related depreciation and amortization, write-down to fair value for asset held for sale, impairment of property and construction, write-down of capitalized internal-use software costs, other income (expense), net, and income tax expense (benefit).

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 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.