SEGMENT INFORMATION
The Company has determined that it operates in two segments, which represent (i) the sale, promotion and commercialization of approved commercial products (the “Commercial Operations” segment), and (ii) research and development activities (the “Research and Development Operations” segment).
•The Commercial Operations segment consists of the Company’s commercial product portfolio.
•The Research and Development Operations segment consists of (i) activities related to developing a novel and proprietary class of NaV blockers that target the body’s peripheral nervous system; and (ii) supportive activities to expand the NITRICIL nitric oxide-based technology.
The Commercial Operations segment includes activities related to the commercialization of ZELSUVMI (berdazimer topical gel, 10.3%), the Company’s FDA-approved product for the treatment of molluscum contagiosum, and associated sales, marketing, distribution, and post-marketing activities. Net revenues attributed to this segment are derived from product sales in the United States following the July 1, 2025 Merger with LNHC.
The Research and Development Operations segment is primarily responsible for the NaV1.7 pain-modulation program and other preclinical candidates. This segment may also include activities associated with the Company’s license and collaboration arrangements, including the license with Sato covering development and commercialization of ZELSUVMI (SB206) in Japan.
Costs associated with product development are recorded within the Research and Development Operations segment. There are no significant inter-segment sales, and there is no inter-segment allocation of non-operating income, expenses, or income taxes. Mr. Plesha, the Company’s Chief Executive Officer, is CODM.
Segment revenue, net and comprehensive loss and total assets were as follows:
| | | | | | | | | | | | | | | | | |
| | | | | Year Ended December 31, 2025 | | Year Ended December 31, 2024 |
| Revenue | | | | | | | |
| Commercial operations | | | | | $ | 16,206 | | | $ | — | |
| Research and Development operations | | | | | 589 | | | — | |
| Total revenue | | | | | $ | 16,795 | | | $ | — | |
| | | | | | | |
| Net loss | | | | | | | |
| Commercial operations | | | | | $ | (37,263) | | | $ | — | |
| Research and Development operations | | | | | (6,056) | | | (7,955) | |
| Net loss and comprehensive loss | | | | | $ | (43,319) | | | $ | (7,955) | |
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Assets | | | |
| Commercial operations | $ | 129,292 | | | $ | — | |
| Research and Development operations | 1,105 | | | 1,369 | |
| Total assets | $ | 130,397 | | | $ | 1,369 | |
The net revenues attributed to the Commercial Operations segment are derived from the sale of the Company’s commercial product, and the net revenues attributed to the Research and Development Operations segment are derived from the
arrangement with the Company’s licensing partner in Japan. Total assets by reporting segment are not reviewed by the CODM when evaluating the reporting segments’ performance, however, the Commercial Operations segment includes the acquired assets associated with the LNHC acquisition and changes in such assets, while the Research and Development Operations segment is comprised of the assets associated with the historical business of the Company.
Substantially all revenue was derived from product sales or from licensing agreements originating in the United States. All of the Company’s long-lived assets are maintained in the United States.