| Segment Reporting |
Note 10 — Segment Reporting We operate in one business segment which focuses on applying our expertise to develop novel drug candidates. Our business offerings have similar economics and other characteristics, including the nature of products and manufacturing processes, types of customers, distribution methods and regulatory environment. We are comprehensively managed as one business segment by our Chief Executive Officer, who is our chief operating decision maker (CODM). The CODM assesses the performance of the Company and decides how to allocate resources based upon net loss that is also reported within the Condensed Consolidated Statements of Operations. The measure of segment assets that is reviewed by the CODM is reported within the Condensed Consolidated Balance Sheet as total assets. The following is a summary of the significant expense categories and consolidated net loss details provided to the CODM (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Revenue: |
|
$ |
10,131 |
|
|
$ |
11,175 |
|
|
$ |
20,992 |
|
|
$ |
21,635 |
|
Operating costs and expenses: |
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|
|
|
|
|
|
|
|
|
|
|
Clinical development, contract manufacturing and other third party costs |
|
|
|
|
|
|
|
|
|
|
|
|
Rezpegaldesleukin (IL-2 receptor agonist/regulatory T cell agent) |
|
|
22,389 |
|
|
|
12,930 |
|
|
|
43,125 |
|
|
|
26,733 |
|
Tumor necrosis factor receptor type II (TNFR2) program |
|
|
735 |
|
|
|
3,775 |
|
|
|
1,533 |
|
|
|
6,244 |
|
Discovery research and other programs |
|
|
436 |
|
|
|
2,374 |
|
|
|
332 |
|
|
|
4,044 |
|
Total clinical development, contract manufacturing and other third party costs |
|
|
23,560 |
|
|
|
19,079 |
|
|
|
44,990 |
|
|
|
37,021 |
|
Employee costs (a) |
|
|
14,962 |
|
|
|
10,920 |
|
|
|
28,640 |
|
|
|
22,894 |
|
Facilities costs |
|
|
2,790 |
|
|
|
2,968 |
|
|
|
5,623 |
|
|
|
6,326 |
|
Other operating costs (b) |
|
|
7,095 |
|
|
|
10,324 |
|
|
|
14,797 |
|
|
|
27,584 |
|
Other segment expenses |
|
|
4,065 |
|
|
|
4,114 |
|
|
|
8,337 |
|
|
|
8,575 |
|
Total operating costs and expenses |
|
|
52,472 |
|
|
|
47,405 |
|
|
|
102,387 |
|
|
|
102,400 |
|
Loss from operations |
|
|
(42,341 |
) |
|
|
(36,230 |
) |
|
|
(81,395 |
) |
|
|
(80,765 |
) |
Non-operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest expense on liability related to sale of future royalties |
|
|
(7,206 |
) |
|
|
(5,394 |
) |
|
|
(15,148 |
) |
|
|
(10,368 |
) |
Interest income |
|
|
9,346 |
|
|
|
1,969 |
|
|
|
13,588 |
|
|
|
4,843 |
|
Other income (expense), net |
|
|
(100 |
) |
|
|
260 |
|
|
|
(436 |
) |
|
|
526 |
|
Total non-operating income (expense), net |
|
|
2,040 |
|
|
|
(3,165 |
) |
|
|
(1,996 |
) |
|
|
(4,999 |
) |
Loss before provision for income taxes and equity method investment |
|
|
(40,301 |
) |
|
|
(39,395 |
) |
|
|
(83,391 |
) |
|
|
(85,764 |
) |
Provision for income taxes |
|
|
2 |
|
|
|
(188 |
) |
|
|
66 |
|
|
|
(136 |
) |
Loss before equity method investment |
|
|
(40,303 |
) |
|
|
(39,207 |
) |
|
|
(83,457 |
) |
|
|
(85,628 |
) |
Loss from equity method investment |
|
|
(319 |
) |
|
|
(2,386 |
) |
|
|
(2,069 |
) |
|
|
(6,847 |
) |
Net loss |
|
$ |
(40,622 |
) |
|
$ |
(41,593 |
) |
|
$ |
(85,526 |
) |
|
$ |
(92,475 |
) |
Other segment expense items included within net loss include the following (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Contract termination costs |
|
$ |
578 |
|
|
$ |
447 |
|
|
$ |
1,374 |
|
|
$ |
616 |
|
Stock-based compensation |
|
|
3,365 |
|
|
|
3,486 |
|
|
|
6,720 |
|
|
|
7,384 |
|
Depreciation and amortization expense |
|
|
122 |
|
|
|
181 |
|
|
|
243 |
|
|
|
575 |
|
Total other segment expenses |
|
$ |
4,065 |
|
|
$ |
4,114 |
|
|
$ |
8,337 |
|
|
$ |
8,575 |
|
a)Includes compensation and benefits for our employees and costs for our contractors and temporary workers. b)Includes legal and patent expenses, information technology infrastructure and other costs, professional accounting, insurance, travel and entertainment and other third party services and expenses. |