| Segment Information |
12. Segment Information The Company operates and reports as one reportable segment, which focuses on identifying and developing innovative therapies to address significant unmet needs for immuno-inflammatory diseases. The segment earns revenue through the licensing of the Company’s intellectual property and the provision of laboratory services. All customers and revenue pertaining to the reportable segment are based in the United States. When evaluating the Company’s financial performance, the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, regularly reviews consolidated segment loss, total expense, and direct expenses by project. The CODM allocates resources based on the Company’s available cash resources and forecasted expenditures on a consolidated basis. Segment asset information regularly provided to the CODM is consistent with that reported on the consolidated balance sheet with particular emphasis on the Company’s available liquidity, including its cash, cash equivalents and marketable securities balances. The following table presents the significant segment expenses and other segment items regularly reviewed by the CODM for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (In thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Contract research | | $ | 356 | | $ | 442 | | $ | 893 | | $ | 887 | Licensing revenue | | | 1,273 | | | 1,335 | | | 2,732 | | | 2,345 | Total revenue | | | 1,629 | | | 1,777 | | | 3,625 | | | 3,232 | Cost of revenue | | | 218 | | | 515 | | | 613 | | | 1,021 | Research and development: | | | | | | | | | | | | | Bosakitug | | | 3,335 | | | 2,847 | | | 6,476 | | | 6,231 | ATI-052 | | | 4,899 | | | 1,418 | | | 8,080 | | | 2,037 | Modzatinib | | | 370 | | | 1,118 | | | 861 | | | 2,926 | ATI-9494 | | | 3,056 | | | 871 | | | 5,281 | | | 1,549 | Discovery | | | 1,972 | | | 749 | | | 3,411 | | | 1,417 | Total research and development project expense(1) | | | 13,632 | | | 7,003 | | | 24,109 | | | 14,160 | Personnel | | | 3,036 | | | 2,984 | | | 6,317 | | | 5,911 | Other research and development(2) | | | 1,398 | | | 1,462 | | | 3,297 | | | 2,962 | Total research and development | | | 18,066 | | | 11,449 | | | 33,723 | | | 23,033 | General and administrative(3) | | | 6,048 | | | 5,386 | | | 12,791 | | | 11,525 | Licensing | | | 1,235 | | | 1,335 | | | 2,628 | | | 2,345 | Revaluation of contingent consideration | | | 300 | | | 1,500 | | | 300 | | | 1,800 | Segment operating loss | | $ | (24,238) | | $ | (18,408) | | $ | (46,430) | | $ | (36,492) | Other income | | | 2,733 | | | 2,979 | | | 5,101 | | | 5,978 | Segment loss before income taxes | | $ | (21,505) | | $ | (15,429) | | $ | (41,329) | | $ | (30,514) |
| (1) | Research and development expenses primarily consist of direct costs incurred to specific programs, including costs to conduct clinical trials and to manufacture clinical drug supply. |
| (2) | Other research and development expenses primarily consist of indirect costs incurred in support of overall research and development activities and non-specific programs, including activities that benefit multiple programs, as well as stock-based compensation. |
| (3) | General and administrative expenses consist principally of salaries and related costs, including stock-based compensation, for personnel in executive, administrative, finance and legal functions, as well as facility-related costs, professional fees, business development costs, insurance costs, and travel expenses. |
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