EXAGEN INC.XGN

EXAGEN INC. Segments Disclosure

10-KFiled Mar 10, 20262 min read
Segment Reporting
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker (CODM) in making decisions regarding resource allocation and assessing performance. The Company views its operations as, and manages its business in, one operating segment focused on the design, development and commercialization of testing products which allow for the differential diagnosis, prognosis and monitoring of complex rheumatic, autoimmune and autoimmune-related disease. Segment revenue is primarily derived from the sale of the Company’s testing products, most of which is attributable to its AVISE® CTD test.
The Company’s CODM is its Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on revenue and net loss as reported on the statements of operations, after taking into account the Company’s strategic priorities, its cash balance and its expected use of cash. The CODM considers budget/forecast versus actual results on a quarterly basis when making decisions about the allocation of resources. The measure of segment assets is reported on the balance sheet as total assets and were $58.0 million and $44.7 million for the years ended December 31, 2025 and 2024, respectively.
Segment revenue and net loss, including significant segment expenses regularly provided to the CODM are as follows (in thousands):
 Year Ended December 31,
 20252024
 
Revenue$66,575 $55,641 
Costs of revenue27,776 22,529 
Gross margin38,799 33,112 
Segment operating expenses:
Employee expense31,959 27,753 
Outside services4,728 4,253 
Facilities related3,737 3,674 
Travel & entertainment3,130 2,440 
Stock compensation1,921 1,604 
Depreciation and amortization1,068 1,041 
Other1
6,326 5,983 
Total segment operating expenses52,869 46,748 
Loss from operations(14,070)(13,636)
Interest expense(4,318)(2,234)
Loss on extinguishment of debt(295)— 
Change in fair value of warrant liability(1,506)— 
Interest income289 767 
Loss before income taxes(19,900)(15,103)
Income tax expense(51)(12)
Segment net loss$(19,951)$(15,115)
1 Other segment items included in Segment net loss include insurance expenses, trade show and conference expenses, fulfillment expenses, board compensation, clinical trial expenses, collaboration expenses and bank fees, among others.

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 11, 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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&ELeasesDebtCommitmentsStock CompensationNew Standards