14. Segment Reporting

Operating segments are defined as components of an enterprise which engages in business activities from which it may recognize revenues and incur expenses about which separate discrete information is available for evaluation by the chief operating decision maker, or CODM, in deciding how to allocate resources and in assessing performance. The Company operates in a single reportable segment, developing and advancing genetic medicines designed to target critical underlying pathology of neurodegenerative diseases.

The accounting policies of the single segment are the same as those described in the summary of significant accounting policies. The Company’s CODM is its chief executive officer.

The measure of segment assets is reported on the balance sheet as total assets. All assets are located within the United States.

The CODM uses net loss as reported on our statement of operations to assess the Company’s performance. Our CODM also uses cash forecast in deciding where to invest or expand operations within the business. In these cash forecasts, research and development expenses and general and administrative expenses exclude certain non-cash items such as share based compensation and depreciation and amortization expenses.

The following table summarizes significant segment expenses:

December 31, 

(in thousands)

2024

    

2023

Research and development

Wages, benefits and other payroll

$

12,265

$

16,762

Third-party costs

22,691

36,304

Share-based compensation

2,529

5,554

Depreciation and amortization

2,694

2,799

Total research and development expenses

40,179

61,419

General and administrative

Wages, benefits and other payroll

9,255

11,606

Third-party costs

12,055

12,352

Amended Catalent agreements expense

11,333

Share-based compensation

3,291

5,367

Depreciation and amortization

387

922

Total general and administrative expenses

24,988

41,580

Impairment of long-lived assets

5,233

5,390

Loss from operations

70,400

108,389

Other (income) expense, net

(5,633)

(6,327)

Net loss

$

64,767

$

102,062

The components of Other (income) expense, net are futher described in note 3 to the financial statements.

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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.