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

12. Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company operates as a single reporting segment, focused on discovering, developing and delivering brain health medicines. The Company’s measure of segment profit or loss is net loss. The CODM is the chief executive officer. The CODM manages and allocates resources to the operations of the Company on a total company basis. Managing and allocating resources on a consolidated basis enables the CODM to assess the overall level of resources available and how to best deploy these resources across functions, therapeutic areas and research and development projects that are in line with the Company’s long-term company-wide strategic goals. Consistent with this decision-making process, the CODM uses consolidated financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The CODM also uses net loss in competitive analysis by benchmarking to the Company’s peer group. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment. All the Company’s long-lived assets are held in the United States and all the Company’s revenues are derived from the United States.

The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company’s single reporting segment. A reconciliation to the consolidated net loss for the three months ended March 31, 2025 and 2024 is included at the bottom of the table below.

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Revenues

 

$

14,063

 

 

$

7,902

 

Cost of revenues

 

 

655

 

 

 

1,269

 

Program expenses (1)

 

 

 

 

 

 

     zuranolone (ZURZUVAE)

 

 

12,010

 

 

 

5,257

 

     SAGE-319

 

 

1,667

 

 

 

953

 

     SAGE-324

 

 

(837

)

 

 

3,831

 

     dalzanemdor

 

 

(30

)

 

 

23,668

 

     Other research and development programs

 

 

3,505

 

 

 

9,456

 

Non-program expenses (2)

 

 

19,258

 

 

 

22,131

 

People and staff augmentation

 

 

37,851

 

 

 

45,910

 

Restructuring

 

 

513

 

 

 

(597

)

Other segment items (3)

 

 

1,685

 

 

 

4,507

 

Net loss

 

$

(62,214

)

 

$

(108,483

)

 

 

 

 

 

 

 

(1) Includes external research and development, and selling, general and administrative expenses.

 

(2) Includes information technology, infrastructure, facilities, legal, commercial data and systems, chemistry platform,

 

          intellectual property, and other general and administrative expense.

 

(3) Includes stock-based compensation expense, interest income, and other (income) expense.