| Segment Information |
16. Segment Information The Company’s reportable segments for operating income (loss) for the three and six months ended June 30, 2026 and 2025 consist of the following ($ in thousands): | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Product revenue, net | | $ | 17,839 | | $ | — | | $ | — | | $ | — | | $ | 17,839 | Other revenue | | | 671 | | | — | | | — | | | 208 | | | 879 | Net revenue | | | 18,510 | | | — | | | — | | | 208 | | | 18,718 | | | | | | | | | | | | | | | | | Cost of goods | | | 6,143 | | | — | | | — | | | — | | | 6,143 | Intangible assets amortization | | | 969 | | | — | | | — | | | — | | | 969 | Research and development | | | 54 | | | 247 | | | 224 | | | 280 | | | 805 | Selling, general and administrative | | | 10,888 | | | 460 | | | 946 | | | 8,513 | | | 20,807 | Total operating expenses | | | 18,054 | | | 707 | | | 1,170 | | | 8,793 | | | 28,724 | Income (loss) from operations | | | 456 | | | (707) | | | (1,170) | | | (8,585) | | | (10,006) | | | | | | | | | | | | | | | | | Interest income | | | 154 | | | 17 | | | 98 | | | 1,312 | | | 1,581 | Interest expense and financing fee | | | (906) | | | — | | | — | | | (570) | | | (1,476) | Gain from deconsolidation of subsidiary | | | — | | | — | | | — | | | 82 | | | 82 | Other income (expense) | | | (1) | | | — | | | — | | | 10,742 | | | 10,741 | Total other income (expense) | | | (753) | | | 17 | | | 98 | | | 11,566 | | | 10,928 | Income (loss) before income tax expense | | | (297) | | | (690) | | | (1,072) | | | 2,981 | | | 922 | | | | | | | | | | | | | | | | | Income tax expense | | | 15 | | | — | | | — | | | 305 | | | 320 | Segment net income (loss) | | $ | (312) | | $ | (690) | | $ | (1,072) | | $ | 2,676 | | $ | 602 | Attributable to non-controlling interests | | | | | | | | | | | | | | | (1,070) | Net loss attributable to Fortress | | | | | | | | | | | | | | $ | (468) |
Note 1: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
| | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Intersegment activity2: | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 63 | | $ | 63 | | $ | (125) | | $ | — | Selling, general and administrative | | $ | — | | $ | 63 | | $ | 63 | | $ | (125) | | $ | — | | | | | | | | | | | | | | | | | Other Significant Items: | | | | | | | | | | | | | | | | Change in fair value of equity method investment accounted for at fair value within other income | | $ | — | | $ | — | | $ | — | | $ | 10,745 | | $ | 10,745 | Segment assets | | $ | 98,356 | | $ | 1,976 | | $ | 15,613 | | $ | 200,770 | | $ | 316,715 | Stock-based compensation - Research & development | | $ | — | | $ | 15 | | $ | — | | $ | 20 | | $ | 35 | Stock-based compensation - Selling, general and administrative | | $ | 1,437 | | $ | 46 | | $ | 21 | | $ | 1,339 | | $ | 2,843 |
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 June 30, 2025 | | Journey | | Avenue | | Checkpoint1 | | Mustang | | Fortress2 | | Consolidated | Product revenue, net | | $ | 15,009 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 15,009 | Other revenue | | | — | | | 1,404 | | | — | | | — | | | — | | | 1,404 | Net revenue | | | 15,009 | | | 1,404 | | | — | | | — | | | — | | | 16,413 | | | | | | | | | | | | | | | | | | | | Cost of goods | | | 4,939 | | | — | | | — | | | — | | | — | | | 4,939 | Intangible assets amortization | | | 1,064 | | | — | | | — | | | — | | | — | | | 1,064 | Research and development | | | — | | | 192 | | | 6,986 | | | 98 | | | 850 | | | 8,126 | Selling, general and administrative | | | 11,942 | | | 915 | | | 19,902 | | | 787 | | | 5,211 | | | 38,757 | Total operating expenses | | | 17,945 | | | 1,107 | | | 26,888 | | | 885 | | | 6,061 | | | 52,886 | Income (loss) from operations | | | (2,936) | | | 297 | | | (26,888) | | | (885) | | | (6,061) | | | (36,473) | | | | | | | | | | | | | | | | | | | | Interest income | | | 138 | | | 31 | | | 89 | | | 123 | | | 241 | | | 622 | Interest expense and financing fee | | | (937) | | | — | | | — | | | — | | | (1,581) | | | (2,518) | Gain (loss) on common stock warrant liabilities | | | — | | | 1 | | | (46) | | | — | | | (305) | | | (350) | Gain from deconsolidation of subsidiary | | | — | | | — | | | — | | | — | | | 27,127 | | | 27,127 | Other expense | | | (61) | | | — | | | (1) | | | — | | | — | | | (62) | Total other income (expense) | | | (860) | | | 32 | | | 42 | | | 123 | | | 25,482 | | | 24,819 | Segment net income (loss) | | $ | (3,796) | | $ | 329 | | $ | (26,846) | | $ | (762) | | $ | 19,421 | | $ | (11,654) | Net loss attributable to NCI | | | | | | | | | | | | | | | | | | 27,140 | Net income attributable to Fortress | | | | | | | | | | | | | | | | | $ | 15,486 |
Note 1: | Checkpoint results for two months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
| | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Journey | | Avenue | | Checkpoint1 | | Mustang | | Fortress2 | | Consolidated | Intersegment activity3: | | | | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 63 | | $ | — | | $ | 63 | | $ | (125) | | $ | — | Selling, general and administrative | | $ | — | | $ | 63 | | $ | 83 | | $ | 63 | | $ | (208) | | $ | — | | | | | | | | | | | | | | | | | | | | Other Significant Items: | | | | | | | | | | | | | | | | | | | Segment assets | | $ | 81,158 | | $ | 4,161 | | $ | — | | $ | 13,046 | | $ | 61,529 | | $ | 159,895 | Stock-based compensation - Research & development | | $ | — | | $ | 31 | | $ | 4,093 | | $ | — | | $ | 627 | | $ | 4,751 | Stock-based compensation - Selling, general and administrative | | $ | 1,336 | | $ | 144 | | $ | 8,048 | | $ | 45 | | $ | 2,469 | | $ | 12,042 |
Note 1: | Checkpoint results for two months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
Note 3: | Segment activity consists of MSA fees paid by the subsidiaries to Fortress (see Note 15). |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Product revenue, net | | $ | 33,760 | | $ | — | | $ | — | | $ | — | | $ | 33,760 | Other revenue | | | 711 | | | — | | | — | | | 285 | | | 996 | Net revenue | | | 34,471 | | | — | | | — | | | 285 | | | 34,756 | | | | | | | | | | | | | | | | | Cost of goods - (excluding amortization of acquired intangible assets) | | | 12,361 | | | — | | | — | | | — | | | 12,361 | Amortization of acquired intangible assets | | | 2,095 | | | — | | | — | | | — | | | 2,095 | Research and development | | | 54 | | | 447 | | | 402 | | | 442 | | | 1,345 | Selling, general and administrative | | | 20,997 | | | 974 | | | 1,826 | | | 12,902 | | | 36,699 | Total operating expenses | | | 35,507 | | | 1,421 | | | 2,228 | | | 13,344 | | | 52,500 | Loss from operations | | | (1,036) | | | (1,421) | | | (2,228) | | | (13,059) | | | (17,744) | | | | | | | | | | | | | | | | | Interest income | | | 311 | | | 35 | | | 201 | | | 1,604 | | | 2,151 | Interest expense and financing fee | | | (1,798) | | | — | | | — | | | (3,047) | | | (4,845) | 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 | Gain from deconsolidation of subsidiary | | | — | | | — | | | — | | | 82 | | | 82 | Other income (expense) | | | (4) | | | — | | | — | | | 11,787 | | | 11,783 | Total other income (expense) | | | (1,491) | | | 36 | | | 201 | | | 162,214 | | | 160,960 | Income (loss) before income tax expense | | | (2,527) | | | (1,385) | | | (2,027) | | | 149,155 | | | 143,216 | | | | | | | | | | | | | | | | | Income tax expense | | | 15 | | | — | | | — | | | 5,437 | | | 5,452 | Segment net income (loss) | | $ | (2,542) | | $ | (1,385) | | $ | (2,027) | | $ | 143,718 | | $ | 137,764 | Attributable to non-controlling interests | | | | | | | | | | | | | | | (27,859) | Net income attributable to Fortress | | | | | | | | | | | | | | $ | 109,905 |
Note 1: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Journey | | Avenue | | Mustang | | Fortress1 | | Consolidated | Intersegment activity2: | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 125 | | $ | 125 | | $ | (250) | | $ | — | Selling, general and administrative | | $ | — | | $ | 125 | | $ | 125 | | $ | (250) | | $ | — | Other Significant Items: | | | | | | | | | | | | | | | | Change in fair value of equity method investment accounted for at fair value within other income | | $ | — | | $ | — | | $ | — | | $ | 11,791 | | $ | 11,791 | Segment assets | | $ | 98,356 | | $ | 1,976 | | $ | 15,613 | | $ | 200,770 | | $ | 316,715 | Stock-based compensation - Research & development | | $ | — | | $ | 29 | | $ | — | | $ | 31 | | $ | 60 | Stock-based compensation - Selling, general and administrative | | $ | 2,426 | | $ | 93 | | $ | 43 | | $ | 2,012 | | $ | 4,574 |
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). |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Journey | | Avenue | | Checkpoint1 | | Mustang | | Fortress2 | | Consolidated | Product revenue, net | | $ | 28,148 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 28,148 | Other revenue | | | — | | | 1,404 | | | — | | | — | | | — | | | 1,404 | Net revenue | | | 28,148 | | | 1,404 | | | — | | | — | | | — | | | 29,552 | | | | | | | | | | | | | | | | | | | | Cost of goods | | | 9,729 | | | — | | | — | | | — | | | — | | | 9,729 | Intangible assets amortization | | | 2,129 | | | — | | | — | | | — | | | — | | | 2,129 | Research and development | | | 39 | | | 603 | | | 10,775 | | | (866) | | | 1,509 | | | 12,060 | Selling, general and administrative | | | 22,511 | | | 2,408 | | | 27,263 | | | 2,004 | | | 10,238 | | | 64,424 | Total operating expenses | | | 34,408 | | | 3,011 | | | 38,038 | | | 1,138 | | | 11,747 | | | 88,342 | Loss from operations | | | (6,260) | | | (1,607) | | | (38,038) | | | (1,138) | | | (11,747) | | | (58,790) | | | | | | | | | | | | | | | | | | | | Interest income | | | 287 | | | 62 | | | 90 | | | 223 | | | 450 | | | 1,112 | Interest expense and financing fee | | | (1,828) | | | — | | | — | | | — | | | (3,496) | | | (5,324) | Gain (loss) on common stock warrant liabilities | | | — | | | 16 | | | (108) | | | — | | | (305) | | | (397) | Gain from deconsolidation of subsidiary | | | — | | | — | | | — | | | — | | | 27,127 | | | 27,127 | Other expense | | | (68) | | | — | | | (3) | | | — | | | (2) | | | (73) | Total other income (expense) | | | (1,609) | | | 78 | | | (21) | | | 223 | | | 23,774 | | | 22,445 | Segment net income (loss) | | $ | (7,869) | | $ | (1,529) | | $ | (38,059) | | $ | (915) | | $ | 12,027 | | $ | (36,345) | Net loss attributable to NCI | | | | | | | | | | | | | | | | | | 41,247 | Net income attributable to Fortress | | | | | | | | | | | | | | | | | $ | 4,902 |
Note 1: | Checkpoint results for five months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Journey | | Avenue | | Checkpoint1 | | Mustang | | Fortress2 | | Consolidated | Intersegment activity3: | | | | | | | | | | | | | | | | | | | Research and development | | $ | — | | $ | 125 | | $ | — | | $ | 125 | | $ | (250) | | $ | — | Selling, general and administrative | | $ | — | | $ | 179 | | $ | 261 | | $ | 341 | | $ | (573) | | $ | — | Other Significant Items: | | | | | | | | | | | | | | | | | | | Segment assets | | $ | 81,158 | | $ | 4,161 | | $ | — | | $ | 13,046 | | $ | 61,529 | | $ | 159,895 | Stock-based compensation - Research & development | | $ | — | | $ | 71 | | $ | 4,782 | | $ | (11) | | $ | 1,251 | | $ | 6,093 | Stock-based compensation - Selling, general and administrative | | $ | 2,659 | | $ | 289 | | $ | 9,315 | | $ | 94 | | $ | 4,632 | | $ | 16,989 |
Note 1: | Checkpoint results for five months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: | Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations. |
Note 3: | Segment activity consists of MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
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