v3.26.1
Segment Information
6 Months Ended
Jun. 30, 2026
Segment Information  
Segment Information

15.Segment Information

The Company manages its operations on a consolidated basis as a single reportable segment focused on the research and development of immunology-based therapies. The accounting policies of the single reportable segment are identical to those described in Note 1, Nature of Business, to these unaudited condensed consolidated financial statements. When evaluating the Company’s financial performance, the Company’s chief operating decision-maker (the “CODM”), its Chief Executive Officer regularly reviews consolidated net loss, total expense and direct expenses by program and compared to budget. The CODM allocates resources based on the Company’s available cash resources, and forecasted expenditures on a consolidated basis, as well as an assessment of the probability of success of its research and development activities on a program basis. Segment asset information regularly provided to the CODM is consistent with that reported on the consolidated balance sheets with particular emphasis on the Company’s available liquidity, including its cash, cash equivalents and investment balances. Revenue is primarily attributed to individual countries based on the entity owning the license. During the three and six months ended June 30, 2026, the Company recognized $1.0 million of revenue, which was attributed to Zenas HK. During the three months ended June 30, 2025, the Company did not recognize any revenue and for the six months ended June 30, 2025, the Company recognized $10.0 million of revenue which was attributed to Zenas HK.

The following table presents certain financial data for the Company’s reportable segment for the three and six months ended June 30, 2026 and 2025 (in thousands):

For the three months ended
June 30,

For the six months ended
June 30,

2026

2025

2026

2025

Revenue

$

1,000

$

$

1,000

$

10,000

Less:

Direct research and development expenses:1

Obexelimab

29,394

29,894

61,154

53,254

Orelabrutinib

11,206

21,307

Other programs (ZB002, ZB004, ZB014, ZB021 & ZB022)

1,458

400

2,026

736

Partnered regional programs (ZB001 & ZB005)

(24)

(137)

(24)

(37)

Unallocated research and development2

17,018

10,757

31,932

20,295

General and administrative3

10,988

8,204

21,800

16,814

Acquired in-process research and development4

30,000

30,000

Stock-based compensation

8,619

6,045

17,814

11,431

Other segment items4

3,797

(2,940)

7,434

(6,697)

Segment net loss

$

(111,456)

$

(52,223)

$

(192,443)

$

(85,796)

1 Direct research and development expenses primarily consist of direct costs incurred to specific program research and development activities, including costs to conduct clinical trials and to manufacture clinical drug supply.

2 Unallocated 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, such as personnel costs for employees involved in research and development activities, excluding stock-based compensation, as well as contract services not allocated to specific programs.

3 General and administrative expenses primarily consist of professional fees, depreciation expense, facilities expenses as well as all other personnel costs, excluding stock-based compensation.

4 Acquired -in- process research and development expenses consist of milestones achieved pursuant to the Xencor and InnoCare license agreements, for additional details see Note 8, License Agreements to these condensed consolidated financial statements.

5 Other segment items consist of other (income) expense, net, and income tax (benefit) provision. Other (income) expense, net consists of interest income, interest expense related to the royalty obligation, the senior secured term loan and convertible senior note as well as realized and unrealized gains and losses on foreign currency transactions.