Quarterly report [Sections 13 or 15(d)]

Segment and Geographic Information

v3.26.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2026
Segment and Geographic Information  
Segment and Geographic Information

15. 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., Switzerland, 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 months ended March 31, 2026 and 2025 (in thousands):

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​

​

​

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Three Months Ended March 31, 

​

  ​ ​ ​ ​

2026

  ​ ​ ​ ​

2025

Income and revenues

​

$

12,318

​

$

15,912

Business development and deal related costs

​

​

(818)

​

​

(1,055)

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​

​

​

​

​

​

Other segment items:

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​

​

​

​

​

Research and development expenses

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​

(49)

​

​

(1,293)

Depreciation of property and equipment

​

​

(3)

​

​

(3)

Other general and administrative expenses(1)

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​

(11,036)

​

​

(7,088)

Gain on lease termination

​

​

27

​

​

—

Amortization of intangible assets

​

​

(892)

​

​

(544)

Gains on acquisitions

​

​

3,545

​

​

—

Change in fair value of derivatives related to Castle Creek

​

​

12

​

​

—

Interest expense

​

​

(3,359)

​

​

(3,467)

Other income (expense), net

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​

4,721

​

​

(95)

Income tax expense

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​

(1)

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​

—

Segment and consolidated net income

​

$

4,465

​

$

2,367

​

(1) Other general and administrative expenses for the three months ended March 31, 2026 and 2025 included general and administrative expenses of $11.9 million and $8.1 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):

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Three Months Ended March 31, 

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  ​ ​ ​ ​

2026

  ​ ​ ​ ​

2025

United States

​

$

5,622

​

$

6,095

Switzerland

​

​

6,696

​

​

5,817

Asia Pacific

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—

​

 

4,000

Total

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$

12,318

​

$

15,912

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