Protalix BioTherapeutics, Inc. Segments Disclosure
NOTE 13 – SEGMENT INFORMATION
| a. | The Company operates in Israel as a operating segment. The Company’s President and Chief Executive Officer is the chief operating decision maker (the “CODM”). The CODM makes decisions on resource allocation, assesses performance of the business and monitors budget versus actual results on a consolidated basis. For additional information see Note 14. |
| b. | Segment information: |
Year Ended December 31, | |||||||||
(U.S. dollars in thousands) | | 2023 | | 2024 | | 2025 | |||
Revenues from customers |
| $ | 65,494 |
| $ | 53,399 |
| $ | 52,744 |
Less: | |||||||||
Employee salaries and related expenses |
| 24,075 |
| 21,780 |
| 24,722 | |||
Sub-contractors expense |
| 14,008 |
| 8,682 |
| 12,275 | |||
Interest expense |
| 3,180 |
| 1,062 |
| - | |||
Interest income | (1,286) | (1,299) | (1,083) | ||||||
Depreciation | 1,191 | 1,304 | 1,465 | ||||||
Other segment expenses* | 15,760 | 17,716 | 20,973 | ||||||
Income (loss) before taxes on income | 8,566 | 4,154 | (5,608) | ||||||
Taxes on income | 254 | 1,222 | 996 | ||||||
Segment net income (loss) | $ | 8,312 | $ | 2,932 | $ | (6,604) | |||
* Other expenses included in net income (loss) includes raw materials, rent and utilities and others.
| c. | The following table summarizes the Company’s disaggregation of revenues: |
Year Ended December 31, | |||||||||
(U.S. dollars in thousands) | 2023 | | 2024 | 2025 | |||||
Gaucher disease: | |||||||||
Pfizer (Ireland) | $ | 12,522 | $ | 12,617 | $ | 18,227 | |||
Fiocruz (Brazil) | $ | 10,401 | $ | 11,031 | $ | 11,062 | |||
Fabry disease: | |||||||||
Chiesi (Italy) | $ | 17,495 | $ | 29,333 | $ | 22,513 | |||
Total revenues from selling goods | $ | 40,418 | $ | 52,981 | $ | 51,802 | |||
Revenues from license and R&D services | $ | 25,076 | $ | 418 | $ | 942 | |||
| d. | Long lived assets are located in Israel. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 17, 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.