15. Segment Reporting

 

The Company has one reportable and one operating segment and conducts its business activities primarily in North America and on a consolidated basis. The Company’s singular focus is developing treatments through gene therapy and other means for patients with neuromuscular and cardiac diseases. All of the Company’s tangible assets are held in the United States.

The accounting policies of the Company are the same as those described in the summary of significant accounting policies.

The Company’s chief operating decision maker (“CODM”) is its chief executive officer. The CODM assesses performance for the Company and decides how to allocate resources based on net loss as reported on the consolidated statements of operations. The annual budgeting process is the primary mechanism used to make these decisions. The financial information also helps in making performance assessments using budgeted versus actual results.

The following table presents segment expenses, other segment items, and segment net loss for the periods presented:

 

 

 

Year Ended
December 31,

 

 

 

2025

 

 

2024

 

Segment expenses:

 

 

 

 

 

 

SGT-003

 

 

58,340

 

 

 

15,197

 

SGT-501

 

 

9,641

 

 

 

17,223

 

External R&D other

 

 

10,649

 

 

 

10,580

 

Internal R&D expense(1)

 

 

29,335

 

 

 

21,705

 

External G&A expense

 

 

19,469

 

 

 

20,122

 

Internal G&A expense(1)

 

 

13,956

 

 

 

12,223

 

Other segment items(2)

 

 

37,816

 

 

 

32,678

 

Other income, net

 

 

(4,881

)

 

 

(5,031

)

Consolidated net loss

 

 

(174,325

)

 

 

(124,697

)

 

(1)

Internal expenses consisted primarily of payroll and related costs, temporary services, and travel and entertainment.

(2)

Other segment items primarily included other program costs, equity-based compensation expense, and depreciation and amortization expense.

 

The measure of segment assets is reported on the balance sheet as total consolidated assets.

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 6, 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.