Note 9. Segment Reporting The Company operates and manages its business as one reportable and operating segment, which is the business of developing small molecule drugs to treat patients with metabolic diseases. The Company’s interim chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. All long-lived assets are maintained in, and all losses are attributable to, the United States of America. The following table presents reportable segment profit and loss, including significant expense categories, attributable to our reportable segment for the periods indicated (in thousands):
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|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
External costs: |
|
|
|
|
|
|
Clinical research organization expenses |
|
|
|
|
|
|
COVALENT - 101 |
|
$ |
— |
|
|
$ |
1,001 |
|
COVALENT - 102 |
|
|
— |
|
|
|
614 |
|
COVALENT - 103 |
|
|
298 |
|
|
|
739 |
|
COVALENT - 111 |
|
|
— |
|
|
|
2,242 |
|
COVALENT - 112 |
|
|
— |
|
|
|
502 |
|
COVALENT - 211 |
|
|
743 |
|
|
|
— |
|
COVALENT - 212 |
|
|
562 |
|
|
|
— |
|
GLP - 131 |
|
|
1,425 |
|
|
|
— |
|
Other clinical related expenses |
|
|
784 |
|
|
|
2,487 |
|
Preclinical activities related expenses |
|
|
69 |
|
|
|
1,956 |
|
Expenses related to manufacturing of
clinical and research material |
|
|
819 |
|
|
|
848 |
|
Other external costs |
|
|
682 |
|
|
|
2,572 |
|
Internal costs: |
|
|
|
|
|
|
Personnel-related expenses (including
stock-based compensation) |
|
|
3,364 |
|
|
|
7,827 |
|
Facilities and other allocated expenses |
|
|
374 |
|
|
|
2,109 |
|
Total research and development expenses |
|
$ |
9,120 |
|
|
$ |
22,897 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
External costs |
|
$ |
1,141 |
|
|
$ |
2,266 |
|
Internal costs: |
|
|
|
|
|
|
Personnel-related expenses (including
stock-based compensation) |
|
|
2,211 |
|
|
|
4,090 |
|
Facilities and other allocated expenses |
|
|
302 |
|
|
|
459 |
|
Total general and administrative expenses |
|
$ |
3,654 |
|
|
$ |
6,815 |
|
Reconciliation of segment loss from operations to net loss (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
Loss from operations of reportable segments |
|
$ |
(12,774 |
) |
|
$ |
(29,712 |
) |
Change in fair value of common warrant liability |
|
|
(581 |
) |
|
|
— |
|
Gain on sale of property and equipment |
|
|
510 |
|
|
|
— |
|
Interest and other income, net |
|
|
430 |
|
|
|
450 |
|
Net loss |
|
$ |
(12,415 |
) |
|
$ |
(29,262 |
) |
|