Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 12 – SEGMENT INFORMATION

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the Chief Operating Decision Maker (“CODM”), or decision making group, in deciding how to allocate resources in assessing performance. The Company is a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases and has one reportable segment. The Company’s CODM is the chief executive officer.

 

The accounting policies of the clinical-stage biopharmaceutical segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the commercial-stage biopharmaceutical segment based on net loss, which is reported on the consolidated statements of operations and comprehensive loss as consolidated net loss. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. Expenditures for additions to long-lived assets, which include purchases of property and equipment, are included in total consolidated assets reviewed by the chief operating decision maker and are reported on the consolidated statements of cash flows.

 

To date, the Company has not generated any product revenue. The Company will continue to incur significant expenses and operating losses until ZEVAKSYN™ can provide sufficient revenue for the Company to be profitable. As such, the CODM uses cash forecast models in deciding how to invest into the commercial-stage biopharmaceutical segment. Such cash forecast models are reviewed to make decisions about allocating resources and assessing the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used to make decisions about allocating resources, assessing the performance of the segment and in establishing management’s compensation, along with cash forecast models.

 

 

The table below summarizes the significant expense categories regularly reviewed by the CODM:

 

SCHEDULE OF SIGNIFICANT EXPENSE CATEGORIES

             
    For the three months ended March 31,  
    2025     2024  
             
License and other revenues   $ —     $ —  
                 
Research and development costs                
Salaries & related costs   $ 4,681     $ 3,555  
Non-cash stock-based compensation     670       346  
Other research and development costs (a)     4,590       3,306  
Total research and development costs   $ 9,941     $ 7,207  
                 
General and administrative costs                
Salaries & related costs   $ 3,653     $ 2,262  
Non-cash stock-based compensation     2,031       1,200  
Pre-commercial preparation costs     1,207       1,351  
Other general and administrative costs (b)     2,895       2,310  
Total general and administrative costs   $ 9,786     $ 7,123  
                 
Other segment items (c)     (7,698 )     17,248  
Net loss   $ (12,029 )   $ (31,578 )

 

(a) Other research and development expenses include, but are not limited to lab supplies, preclinical and development costs, clinical trial costs, preclinical manufacturing and manufacturing facility costs, costs associated with regulatory approvals, depreciation on lab supplies and manufacturing facilities, and consultant-related expenses.
(b) Other general and administrative expenses primarily consist of office facility costs, public reporting company related costs, professional fees (e.g., legal expenses) and other general operating expenses not otherwise included in research and development expenses.
(c) Other segment items includes royalties, interest income, interest expense, change in fair value of warrant and derivative liabilities and other income.