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Note 18 - Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

18.

Segment Information

 

Valion Bio is developing biologics that activate the immune pathways to protect and restore tissue in conditions driven by radiation, disease, and immune dysregulation. As of December 10, 2025, the Company also operates a contract development and manufacturing organization (or "CDMO") through the Company's wholly owned subsidiary, Velocity Bioworks, Inc., (or "VBI"). The CDMO provides development services to Valion to support the manufacturing of Entolimod, the Company's lead product candidate. The Company manages its business activities as two operating segments, the biopharma business and the CDMO business. Valion's Chief Executive Officer is the Chief Operating Decision Maker ("CODM"). The CODM utilizes the Company's long-term plan, which includes product development roadmaps and long term financial models, as key input to resource allocation. The CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results using factors such as operating expenses, loss from operations and net loss.

 

Prior to December 2025, we operated as a single operating segment. For the three months ended March 31, 2026, we have two reportable segments; Biopharma and the CDMO. Our Biopharma segment is engaged in the development and commercialization of our pharmaceutical product candidates and is operated from our corporate headquarters in San Antonio, Texas. Our CDMO segment offers contract development and manufacturing services to Valion and external customers. The manufacturing site is located in San Antonio, Texas. The Company's two reportable business segments are managed separately based on the differences in their operations. The Company evaluates performance of its segments based on the contribution to operating income (loss) of the respective segments.

 

Financial information by business segment is set forth below (in thousands):

 

  As of March 31, 2026 As of December 31, 2025 
  

Biopharma

  

CDMO

  

Consolidated

  

Biopharma

  

CDMO

  

Consolidated

 

Cash and cash equivalents

 $6,937  $278  $7,215  $12,277  $368  $12,645 

Prepaid expenses and other current assets

  233   454   687   156   190   346 

Property and equipment, net

  30   12,614   12,644   34   12,607   12,641 

Deferred offering costs

  555   —   555   136   —   136 

Licensed technology, net

  2,993   —   2,993   2,243   —   2,243 

Operating lease right-of-use assets, net

  —   10,086   10,086   —   —   — 

Goodwill

  —   3,457   3,457   —   3,457   3,457 

Restricted cash

  368   —   368   —   —   — 

Other assets

  126   84   210   124   —   124 

Total consolidated assets of continuing operations

 $11,242  $26,973  $38,215  $14,970  $16,622  $31,592 

 

   

Three Months Ended March 31, 2026

   Three Months Ended March 31, 2025 
  

Biopharma

  

CDMO

  

Consolidated

  

Biopharma

  

CDMO

  

Consolidated

 

Operating Expenses

                        

Research and development

 $857  $997  $1,854  $335  $—  $335 

Selling, general and administrative

  2,054   1,726   3,780   1,042   —   1,042 

Total operating expenses

  2,911   2,723   5,634   1,377   —   1,377 

Other expense (income)

                        

Change in fair value of derivative liability

  33   —   33   —   —   — 

Interest income

  24   —   24   4   —   4 

Interest expense

  (648)  —   (648)  —   —   — 

Net other (expense) income

  (591)  —   (591)  4   —   4 

Net loss from operations before discontinued operations

 $(3,502) $(2,723) $(6,225) $(1,373) $—  $(1,373)

 

All of the Company's assets are located in the United States.