Note 12. Segment Reporting

The Company has one operating and reporting segment focused on the development and commercialization of its sole therapeutic product, VYKAT XR. The Company’s chief operating decision maker (CODM) is the chief executive officer who reviews product revenue, net and cash operating expenses on a consolidated basis to make decisions about allocating resources and assessing performance for the entire Company. The CODM does not review assets at a level or category different than the amounts disclosed in the consolidated balance sheet.

The following table presents selected financial information with respect to the Company's single operating segment for the years ended December 31, 2025, 2024 and 2023 (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Product revenue, net

 

$

190,405

 

 

$

-

 

 

$

-

 

Net income (loss)

 

 

20,890

 

 

 

(175,850

)

 

 

(38,988

)

Less total other income, net

 

 

11,476

 

 

 

11,821

 

 

 

2,396

 

Operating income (loss)

 

 

9,414

 

 

 

(187,671

)

 

 

(41,384

)

Total operating expenses

 

 

180,991

 

 

 

187,671

 

 

 

41,384

 

Less non-cash expenses

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

(2,017

)

 

 

(1,987

)

 

 

(1,958

)

Non-cash lease expense

 

 

(607

)

 

 

(444

)

 

 

(321

)

Change in fair value of contingent consideration

 

 

(5,536

)

 

 

(3,242

)

 

 

(2,714

)

Stock-based compensation

 

 

(45,846

)

 

 

(99,958

)

 

 

(5,945

)

Cash operating expenses

 

$

126,985

 

 

$

82,040

 

 

$

30,446

 

 

 

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 28, 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.