Terns Pharmaceuticals, Inc. Segments Disclosure
The Company has one reportable segment, the consolidated entity’s operations, relating to the research and development of its portfolio of small-molecule product candidates to address serious diseases.
The Company’s chief operating decision maker (the CODM), its chief executive officer, manages the Company’s operations as a single segment for the purposes of assessing performance and making operating decisions. When evaluating the Company’s financial position, the CODM reviews, as presented on a consolidated basis, cash, cash equivalents and marketable securities, total assets, cash flows from operating activities, research and development expenses by program, personnel and other, general and administrative expenses and net loss.
Cash, cash equivalents and marketable securities and total assets are presented on the Company’s Consolidated Balance Sheets. Cash flows from operating activities are presented on the Company’s Consolidated Statements of Cash Flows.
Consolidated segment loss, including segment expenses reviewed by the CODM, include the following:
|
|
Year Ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Research and development expenses |
|
|
|
|
|
|
||
External expenses by program: |
|
|
|
|
|
|
||
TERN-701 |
|
$ |
25,385 |
|
|
$ |
15,757 |
|
TERN-601 |
|
|
20,437 |
|
|
|
15,486 |
|
Other programs |
|
|
7,208 |
|
|
|
11,885 |
|
Total external expenses |
|
|
53,030 |
|
|
|
43,128 |
|
Unallocated internal expenses: |
|
|
|
|
|
|
||
Personnel-related expenses |
|
|
23,881 |
|
|
|
25,732 |
|
Other expenses |
|
|
978 |
|
|
|
1,252 |
|
Total research and development expenses |
|
|
77,889 |
|
|
|
70,112 |
|
General and administrative |
|
|
32,235 |
|
|
|
31,759 |
|
Total operating expenses |
|
|
110,124 |
|
|
|
101,871 |
|
Loss from operations |
|
|
(110,124 |
) |
|
|
(101,871 |
) |
Other income: |
|
|
|
|
|
|
||
Interest income |
|
|
14,591 |
|
|
|
13,289 |
|
Other expense, net |
|
|
(93 |
) |
|
|
(11 |
) |
Total other income, net |
|
|
14,498 |
|
|
|
13,278 |
|
Loss before income taxes |
|
|
(95,626 |
) |
|
|
(88,593 |
) |
Income tax expense |
|
|
(581 |
) |
|
|
(260 |
) |
Net loss |
|
$ |
(96,207 |
) |
|
$ |
(88,853 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 20, 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.