Quarterly report [Sections 13 or 15(d)]

Segment and Geographic Information

v3.25.2
Segment and Geographic Information
6 Months Ended
Jun. 30, 2025
Segment and Geographic Information  
Segment and Geographic Information

14. Segment and Geographic Information

Segment Information

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Company has determined that it operates in one operating segment and the CODM regularly reviews information and business activities on a consolidated basis to allocate resources and assess performance. Segment income and revenues consist of income from purchased receivables through RPAs, AAAs, and CPPAs, revenue from the licenses of intellectual property and related milestone and royalties, and revenue from the sale of future revenue streams. The Company derives income and revenues primarily from the U.S., Europe, and the Asia Pacific. The CODM uses net income (loss) reported in the condensed consolidated statements of operations to evaluate income (loss) generated from segment assets (return on assets) in deciding whether to invest into the Company’s consolidated operations, such as to broaden its royalty portfolios or to repurchase its common stock. The measure of segment assets is reported on the balance sheet as total consolidated assets. Consolidated net income (loss) is used to monitor budget versus actual results. The Company does not have intra-entity sales or transfers (other than as was necessary to secure the VABYSMO royalty backed loan from Blue Owl).

The table below presents segment information for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

2025

2024

Income and revenues

$

13,129

$

11,086

$

29,041

$

12,576

Business development and deal related costs

(1,817)

(741)

(2,873)

(1,418)

Other segment items:

Research and development expenses

(69)

(1,161)

(1,362)

(1,194)

Depreciation of property and equipment

(3)

(3)

(6)

(5)

Other general and administrative expenses(1)

(5,982)

(10,260)

(13,069)

(18,042)

Credit losses on purchased receivables

(9,000)

(9,000)

Amortization of intangible assets

(655)

(1,199)

Gain on the acquisition of Kinnate

19,316

19,316

Change in fair value of embedded derivative related to RPA

8,100

8,100

Change in fair value of derivatives related to Castle Creek

5

5

Interest expense

(3,236)

(3,402)

(6,703)

(6,953)

Other income, net

7,819

2,050

7,724

4,010

Segment and consolidated net income

$

9,191

$

15,985

$

11,558

$

7,390

(1)Other general and administrative expenses for the three and six months ended June 30, 2025 included general and administrative expenses of $7.8 million and $15.9 million, respectively, net of business development and deal related costs and depreciation of property and equipment.

 

 

Geographic Information

Income and revenue attributed to the following geographic regions based on the location of the partners and licensees was as follows (in thousands):

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2025

    

2024

2025

    

2024

United States

$

7,371

$

6,523

$

13,466

$

8,013

Switzerland

5,758

11,575

Europe

4,563

4,563

Asia Pacific

 

 

 

4,000

 

Total

$

13,129

$

11,086

$

29,041

$

12,576

The Company’s property and equipment is held in the U.S.