v3.26.1
Segment Data
 3 Months Ended
Mar. 31, 2026
Segment Data  
Segment Data

14. Segment Data

The Company has two reportable segments: animal health and human health. The animal health segment is focused on developing and commercializing prescription and non-prescription products for companion and production animals. The human health segment is focused on developing and commercializing human products and the ongoing commercialization of Mytesi, which the US FDA approves for the symptomatic relief of non-infectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. The Company has not disclosed revenue by geographic location as its revenues are distributed across multiple regions without significant concentration in any single area.

The accounting policies used in the segment reporting are the same as those described in the summary significant accounting policies (Note 2). The Company’s CODM is the chief financial officer. The CODM primarily utilizes segment's net comprehensive profit or loss as the key indicator in assessing the segment's performance and allocating resources.

The Company's reportable segments' net revenues and net loss for the three months ended March 31, 2026 and 2025, consisted of the following:

 

 

 

Three Months Ended

 

(in thousands)

 

March 31, 2026

 

 

 

(unaudited)

 

 

 

Human Health

 

 

Animal Health

 

 

Total

 

External revenue

 

$

 

19,927

 

 

$

 

345

 

 

$

 

20,272

 

Less: Segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

987

 

 

 

 

171

 

 

 

 

1,158

 

Research and development

 

 

 

3,169

 

 

 

 

754

 

 

 

 

3,923

 

Sales and marketing

 

 

 

704

 

 

 

 

192

 

 

 

 

896

 

General and administrative

 

 

 

1,971

 

 

 

 

2,642

 

 

 

 

4,613

 

Interest

 

 

 

187

 

 

 

 

512

 

 

 

 

699

 

Other segment items*

 

 

 

1,044

 

 

 

 

342

 

 

 

 

1,386

 

Segment expenses

 

 

 

8,062

 

 

 

 

4,613

 

 

 

 

12,675

 

Segment net comprehensive income (loss)

 

$

 

11,865

 

 

$

 

(4,268

)

 

$

 

7,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items**

 

 

 

 

 

 

 

 

 

 

 

668

 

Consolidated net comprehensive loss

 

 

 

 

 

 

 

 

 

$

 

8,265

 

 

 

 

Three Months Ended

(in thousands)

 

March 31, 2025

 

 

(unaudited)

 

 

Human Health

 

Animal Health

 

Total

External revenue

 

$

2,138

 

$

76

 

$

2,214

Less: Segment expenses

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

505

 

 

10

 

 

515

Research and development

 

 

3,113

 

 

612

 

 

3,725

Sales and marketing

 

 

2,396

 

 

97

 

 

2,493

General and administrative

 

 

2,004

 

 

3,338

 

 

5,342

Interest

 

 

—

 

 

—

 

 

—

Other segment items*

 

 

311

 

 

1,176

 

 

1,487

Segment expenses

 

 

8,329

 

 

5,233

 

 

13,562

Segment net comprehensive loss

 

$

(6,191)

 

$

(5,157)

 

$

(11,348)

 

 

 

 

 

 

 

 

 

 

Reconciliation of net comprehensive loss

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items**

 

 

 

 

 

 

 

 

490

Consolidated net comprehensive loss

 

 

 

 

 

 

 

$

(10,858)

*Other segment items for each reportable segment include:

•
Human Health - realized gain/loss on foreign exchange transactions, change in fair value of warrants, gain/loss on debt extinguishment and share in net income or loss in joint venture.
•
Animal Health - realized and unrealized gain/loss on foreign exchange transactions.

**Adjustments and reconciling items include intercompany elimination entries

The Company's reportable segments assets consisted of the following:

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

(in thousands)

 

(unaudited)

 

 

 

 

 

Segment assets

 

 

 

 

 

 

 

Human Health

 

$

 

30,692

 

 

$

 

28,321

 

Animal Health

 

 

 

173,466

 

 

 

 

185,511

 

Total

 

$

 

204,158

 

 

$

 

213,832

 

For the three months ended March 31, 2026 and 2025, the Company’s operations were divided into two geographical locations, Europe and the US. The carrying value of long-term assets in Europe totaled approximately $157,000 and $87,000 as of March 31, 2026 and December 31, 2025, respectively. This pertains to a right-of-use asset for the Napo Therapeutics office and vehicle lease. In the US, the carrying value of long-term assets totaled approximately $16.9 million and $17 .4 million as of March 31, 2026 and December 31, 2025, respectively. This is composed of property, plant, and equipment, right-of-use assets, and intangible assets.

The reconciliation of segments assets to the consolidated assets is as follows:

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

(in thousands)

 

(unaudited)

 

 

 

 

 

Total assets for reportable segments

 

$

 

204,158

 

 

$

 

213,832

 

Less: Investment in subsidiary

 

 

 

(29,231

)

 

 

 

(29,231

)

Less: Intercompany loan

 

 

 

(137,493

)

 

 

 

(146,278

)

Consolidated Totals

 

$

 

37,434

 

 

$

 

38,323