| Segment Information |
16. Segment Information The Company’s reportable segments for operating income (loss) for the three months ended March 31, 2026 and 2025 consist of the following ($ in thousands): | | | | | | | | | | | | | | | | Three Months Ended March 31, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Product revenue, net | | $ | 15,921 | | $ | — | | $ | — | | $ | — | | $ | 15,921 | Other revenue | | | 40 | | | — | | | — | | | 77 | | | 117 | Net revenue | | | 15,961 | | | — | | | — | | | 77 | | | 16,038 | | | | | | | | | | | | | | | | | Cost of goods - (excluding amortization of acquired intangible assets) | | | 6,218 | | | — | | | — | | | — | | | 6,218 | Amortization of acquired intangible assets | | | 1,126 | | | — | | | — | | | — | | | 1,126 | Research and development | | | — | | | 200 | | | 178 | | | 162 | | | 540 | Selling, general and administrative | | | 10,109 | | | 514 | | | 880 | | | 4,390 | | | 15,893 | Total operating expenses | | | 17,453 | | | 714 | | | 1,058 | | | 4,552 | | | 23,777 | Loss from operations | | | (1,492) | | | (714) | | | (1,058) | | | (4,475) | | | (7,739) | | | | | | | | | | | | | | | | | Interest income | | | 157 | | | 18 | | | 103 | | | 292 | | | 570 | Interest expense and financing fee | | | (892) | | | — | | | — | | | (2,476) | | | (3,368) | Gain on sale of priority review voucher, net of expenses | | | — | | | — | | | — | | | 158,873 | | | 158,873 | Change in fair value of partner company derivative liability | | | — | | | — | | | — | | | (7,085) | | | (7,085) | Gain (loss) on common stock warrant liabilities | | | — | | | 1 | | | — | | | — | | | 1 | Other income (expense) | | | (3) | | | — | | | — | | | 1,045 | | | 1,042 | Total other income (expense) | | | (738) | | | 19 | | | 103 | | | 150,649 | | | 150,033 | Income (loss) before income tax expense | | | (2,230) | | | (695) | | | (955) | | | 146,174 | | | 142,294 | | | | | | | | | | | | | | | | | Income tax expense | | | — | | | — | | | — | | | 5,132 | | | 5,132 | Segment net income (loss) | | $ | (2,230) | | $ | (695) | | $ | (955) | | $ | 141,042 | | $ | 137,162 | Attributable to non-controlling interests | | | | | | | | | | | | | | | (26,789) | Net income attributable to Fortress | | | | | | | | | | | | | | $ | 110,373 |
| | | | | | | | | | | | | | | | Three Months Ended March 31, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Intersegment activity2: | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 63 | | $ | 63 | | $ | (126) | | $ | — | Selling, general and administrative | | $ | — | | $ | 63 | | $ | 63 | | $ | (126) | | $ | — | Other Significant Items: | | | | | | | | | | | | | | | | Change in fair value of equity method investment accounted for at fair value within other income | | $ | — | | $ | — | | $ | — | | $ | 1,046 | | $ | 1,046 | Segment assets | | $ | 91,534 | | $ | 2,468 | | $ | 16,582 | | $ | 246,290 | | $ | 356,874 | Stock-based compensation - Research & development | | $ | — | | $ | 14 | | $ | — | | $ | 9 | | $ | 23 | Stock-based compensation - Selling, general and administrative | | $ | 989 | | $ | 47 | | $ | 22 | | $ | 675 | | $ | 1,733 |
Note 1: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
Note 2: | Segment activity consists of MSA fees paid by the subsidiaries to Fortress (see Note 15). |
| | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2025 | | Journey | | Avenue | | Checkpoint | | Mustang | | Fortress1 | | Consolidated | Product revenue, net | | $ | 13,139 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 13,139 | | | | | | | | | | | | | | | | | | | | Cost of goods - (excluding amortization of acquired intangible assets) | | | 4,790 | | | — | | | — | | | — | | | — | | | 4,790 | Amortization of acquired intangible assets | | | 1,065 | | | — | | | — | | | — | | | — | | | 1,065 | Research and development | | | 39 | | | 411 | | | 3,788 | | | (964) | | | 664 | | | 3,938 | Selling, general and administrative | | | 10,569 | | | 1,494 | | | 7,361 | | | 1,217 | | | 5,022 | | | 25,663 | Total operating expenses | | | 16,463 | | | 1,905 | | | 11,149 | | | 253 | | | 5,686 | | | 35,456 | Loss from operations | | | (3,324) | | | (1,905) | | | (11,149) | | | (253) | | | (5,686) | | | (22,317) | | | | | | | | | | | | | | | | | | | | Interest income | | | 149 | | | 32 | | | 1 | | | 100 | | | 208 | | | 490 | Interest expense and financing fee | | | (891) | | | — | | | — | | | — | | | (1,914) | | | (2,805) | Gain (loss) on common stock warrant liabilities | | | — | | | 15 | | | (62) | | | — | | | — | | | (47) | Other expense | | | (7) | | | — | | | (2) | | | — | | | (3) | | | (12) | Total other income (expense) | | | (749) | | | 47 | | | (63) | | | 100 | | | (1,709) | | | (2,374) | Segment net loss | | $ | (4,073) | | $ | (1,858) | | $ | (11,212) | | $ | (153) | | $ | (7,395) | | $ | (24,691) | Attributable to non-controlling interests | | | | | | | | | | | | | | | | | | 14,107 | Net loss attributable to Fortress | | | | | | | | | | | | | | | | | $ | (10,584) |
| | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2025 | | Journey | | Avenue | | Checkpoint | | Mustang | | Fortress1 | | Consolidated | Intersegment activity2: | | | | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 63 | | $ | — | | $ | 63 | | $ | (125) | | $ | — | Selling, general and administrative | | $ | — | | $ | 117 | | $ | 178 | | $ | 279 | | $ | (573) | | $ | — | Other Significant Items: | | | | | | | | | | | | | | | | | | | Segment assets | | $ | 84,963 | | $ | 3,593 | | $ | 34,165 | | $ | 14,909 | | $ | 40,440 | | $ | 178,071 | Stock-based compensation - Research & development | | $ | — | | $ | 40 | | $ | 689 | | $ | (11) | | $ | 625 | | $ | 1,343 | Stock-based compensation - Selling, general and administrative | | $ | 1,323 | | $ | 145 | | $ | 1,267 | | $ | 50 | | $ | 2,161 | | $ | 4,946 |
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations. Note 2: | Segment activity consists of MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
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