| Schedule of Segment Information |
18. Segment Information
The Company’s reportable segments for operating income (loss) for the years ending December 31, 2024 and 2023 consist of the following:
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Year Ended December 31, 2024 |
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Journey |
|
Avenue |
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Checkpoint |
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Mustang |
|
Fortress1 |
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Consolidated |
Product revenue, net |
|
$ |
55,134 |
|
$ |
— |
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$ |
— |
|
$ |
— |
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$ |
— |
|
$ |
55,134 |
Collaboration revenue |
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— |
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— |
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— |
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— |
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1,500 |
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|
1,500 |
Revenue - related party |
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— |
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— |
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41 |
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— |
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— |
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41 |
Other revenue |
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1,000 |
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— |
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— |
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— |
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— |
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|
1,000 |
Net revenue |
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56,134 |
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— |
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41 |
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— |
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1,500 |
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57,675 |
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Cost of goods - (excluding amortization of acquired intangible assets) |
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20,879 |
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— |
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— |
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— |
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— |
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20,879 |
Amortization of acquired intangible assets |
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3,424 |
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— |
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— |
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— |
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— |
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3,424 |
Research and development |
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9,857 |
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6,645 |
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36,152 |
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8,418 |
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(4,443) |
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56,629 |
Research and development - licenses acquired |
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— |
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— |
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— |
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— |
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252 |
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252 |
Selling, general and administrative |
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40,204 |
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4,638 |
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20,063 |
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4,135 |
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18,691 |
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87,731 |
Loss recovery |
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(4,553) |
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— |
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— |
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— |
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— |
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(4,553) |
Asset impairment |
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— |
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— |
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— |
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3,692 |
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— |
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3,692 |
Total operating expenses |
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69,811 |
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11,283 |
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56,215 |
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16,245 |
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14,500 |
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168,054 |
Loss from operations |
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(13,677) |
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(11,283) |
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(56,174) |
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(16,245) |
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(13,000) |
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(110,379) |
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Interest Income |
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757 |
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176 |
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11 |
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184 |
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1,555 |
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2,683 |
Interest expense and financing fee |
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(2,700) |
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— |
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— |
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(5) |
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(10,822) |
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(13,527) |
(Gain) loss on common stock warrant liabilities |
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1,125 |
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(589) |
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(73) |
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— |
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(1,101) |
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(638) |
Other income (expense) |
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(116) |
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— |
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(4) |
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314 |
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1,124 |
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1,318 |
Total other income (expense) |
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(934) |
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(413) |
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(66) |
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493 |
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(9,244) |
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(10,164) |
Loss before income tax expense |
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(14,611) |
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(11,696) |
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(56,240) |
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(15,752) |
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(22,244) |
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(120,543) |
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Income tax expense benefit |
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61 |
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— |
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— |
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— |
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251 |
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|
312 |
Segment net loss |
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$ |
(14,672) |
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$ |
(11,696) |
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$ |
(56,240) |
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$ |
(15,752) |
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$ |
(22,495) |
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$ |
(120,855) |
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Net loss attributable to NCI |
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74,858 |
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Net loss attributable to Fortress |
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$ |
(45,997) |
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Intersegment activity2: |
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Research and development |
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$ |
— |
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$ |
329 |
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$ |
7,638 |
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$ |
861 |
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$ |
(8,828) |
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$ |
— |
Selling, general and administrative |
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$ |
— |
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$ |
331 |
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$ |
1,495 |
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$ |
579 |
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$ |
(2,405) |
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$ |
— |
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Other Significant Items: |
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Depreciation expense |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
671 |
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$ |
369 |
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$ |
1,040 |
Additions to intangible assets |
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$ |
15,000 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
15,000 |
Segment Assets |
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$ |
80,241 |
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$ |
2,672 |
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$ |
7,471 |
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$ |
9,308 |
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$ |
44,531 |
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$ |
144,223 |
Stock-based compensation - research & development |
|
$ |
508 |
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$ |
269 |
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$ |
5,248 |
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$ |
(650) |
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$ |
1,746 |
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$ |
7,121 |
Stock-based compensation - Selling, general and administrative |
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$ |
5,590 |
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$ |
967 |
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$ |
10,004 |
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$ |
200 |
|
$ |
8,737 |
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$ |
25,498 |
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 2: |
Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
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Year Ended December 31, 2023 |
|
Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
59,662 |
|
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
59,662 |
Collaboration revenue |
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|
— |
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— |
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— |
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|
— |
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|
5,229 |
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|
5,229 |
Revenue - related party |
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|
— |
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|
— |
|
|
103 |
|
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— |
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— |
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|
103 |
Other revenue |
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19,519 |
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— |
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— |
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— |
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— |
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19,519 |
Net revenue |
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79,181 |
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— |
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|
103 |
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— |
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5,229 |
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84,513 |
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Cost of goods - (excluding amortization of acquired intangible assets) |
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22,893 |
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— |
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— |
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— |
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— |
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22,893 |
Amortization of acquired intangible assets |
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|
3,767 |
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— |
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— |
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— |
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— |
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|
3,767 |
Research and development |
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7,541 |
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6,131 |
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43,566 |
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40,513 |
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3,996 |
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101,747 |
Research and development - licenses acquired |
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— |
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4,230 |
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— |
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|
527 |
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(433) |
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|
4,324 |
Selling, general and administrative |
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43,910 |
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4,179 |
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8,685 |
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8,220 |
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25,987 |
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|
90,981 |
Asset impairment |
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3,143 |
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— |
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— |
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— |
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— |
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3,143 |
Total operating expenses |
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81,254 |
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14,540 |
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52,251 |
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49,260 |
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29,550 |
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226,855 |
Loss from operations |
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(2,073) |
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(14,540) |
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(52,148) |
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(49,260) |
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(24,321) |
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(142,342) |
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Interest Income |
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322 |
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|
126 |
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|
84 |
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|
850 |
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1,621 |
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3,003 |
Interest expense and financing fee |
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(1,698) |
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(332) |
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— |
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(4,109) |
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(9,176) |
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(15,315) |
Gain (loss) on common stock warrant liabilities |
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— |
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|
4,258 |
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|
217 |
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— |
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(51) |
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4,424 |
Other (Income) expense |
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(183) |
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— |
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— |
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|
917 |
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(4,137) |
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(3,403) |
Total other (Income) expense |
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(1,559) |
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|
4,052 |
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|
301 |
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(2,342) |
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(11,743) |
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(11,291) |
Loss before income tax expense |
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(3,632) |
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(10,488) |
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(51,847) |
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(51,602) |
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(36,064) |
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(153,633) |
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Income tax (expense) benefit |
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|
221 |
|
|
— |
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— |
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— |
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|
300 |
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|
521 |
Segment net loss |
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$ |
(3,853) |
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$ |
(10,488) |
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$ |
(51,847) |
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$ |
(51,602) |
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$ |
(36,364) |
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$ |
(154,154) |
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Net loss attributable to NCI |
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93,517 |
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Net loss attributable to Fortress |
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$ |
(60,637) |
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Intersegment Activity2: |
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Research and development |
|
$ |
— |
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$ |
521 |
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$ |
3,419 |
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$ |
250 |
|
$ |
(4,190) |
|
$ |
— |
Research and development - licenses acquired |
|
$ |
— |
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$ |
— |
|
$ |
— |
|
$ |
477 |
|
$ |
(477) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
422 |
|
$ |
1,452 |
|
$ |
364 |
|
$ |
(2,239) |
|
$ |
— |
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Other Significant Items: |
|
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|
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|
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Depreciation expense |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,860 |
|
$ |
370 |
|
$ |
2,230 |
Segment assets |
|
$ |
76,849 |
|
$ |
1,850 |
|
$ |
5,378 |
|
$ |
17,742 |
|
$ |
65,707 |
|
$ |
167,526 |
Stock-based compensation - research & development |
|
$ |
110 |
|
$ |
199 |
|
$ |
1,169 |
|
$ |
132 |
|
$ |
1,624 |
|
$ |
3,234 |
Stock-based compensation - Selling, general and administrative |
|
$ |
2,496 |
|
$ |
707 |
|
$ |
1,728 |
|
$ |
436 |
|
$ |
8,428 |
|
$ |
13,795 |
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress: Aevitas (until April 2023), Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 2: |
Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
|