Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 9. Segment Information

Selected financial and descriptive information is required to be provided about reportable operating segments, considering a “management approach” concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Company for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the Company’s internal organization, focusing on financial information that the Company’s chief executive officer uses to make decisions about the Company’s operating matters.

As described in Note 1, the Company has determined it has two reportable segments: Finance Receivables and Pharmaceutical Development, and each are individually managed and provide separate services. Revenues by segment represent revenues earned on the services offered within each segment. The Company does not report assets by reportable segment, nor does the Company report results by geographic region, as these metrics are not used by the Company’s chief executive officer in assessing performance or allocating resources to the segments.

Segment performance is evaluated based on several factors, including income (loss) from continuing operations before income taxes. Management uses this measure of net income (loss) to evaluate segment performance because the Company believes this measure is indicative of performance trends and the overall earnings potential of each segment.

The following tables present financial information for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended September 30, 2022
	Finance Receivables		Pharmaceutical Development and Other		Holding Company and Other			Consolidated
Revenue	$	8,502	$	5,111	$	—		$	13,613
Other revenue		—		—		1			1
Interest expense		82		—		—			82
Manufacturing, research and development		—		1,792		—			1,792
Depreciation and amortization expense		—		632		2			634
General and administrative		115		843		3,391			4,349
Other income, net		1,801		—		—			1,801
Income tax expense		—		—		1,942			1,942
Net income (loss)		10,106		1,844		(5,334	)		6,616

	Three Months Ended September 30, 2021
	Finance Receivables		Pharmaceutical Development and Other			Holding Company and Other			Consolidated
Revenue	$	9,373	$	187		$	—		$	9,560
Interest expense		53		—			—			53
Manufacturing, research and development		—		2,487			—			2,487
Depreciation and amortization expense		—		810			2			812
General and administrative		90		999			2,491			3,580
Other income, net		128		—			—			128
Income tax expense		—		—			513			513
Net income (loss)		9,358		(4,109	)		(3,006	)		2,243

	Nine Months Ended September 30, 2022
	Finance Receivables		Pharmaceutical Development and Other			Holding Company and Other			Consolidated
Revenue	$	25,745	$	5,461		$	—		$	31,206
Other revenue		—		480			1			481
Interest expense		242		—			—			242
Manufacturing, research and development		—		5,173			—			5,173
Depreciation and amortization expense		—		1,961			3			1,964
General and administrative		219		2,783			7,525			10,527
Other income, net		89		—			—			89
Income tax expense		—		—			3,211			3,211
Net income (loss)		25,373		(3,976	)		(10,738	)		10,659

	Nine Months Ended September 30, 2021
	Finance Receivables		Pharmaceutical Development and Other			Holding Company and Other			Consolidated
Revenue	$	29,857	$	10,846		$	—		$	40,703
Other revenue		—		496			—			496
Interest expense		292		—			—			292
Manufacturing, research and development		—		5,577			—			5,577
Depreciation and amortization expense		—		3,300			5			3,305
Change in fair value of acquisition-related contingent consideration		—		(147	)		—			(147	)
General and administrative		2,034		3,088			4,703			9,825
Other income, net		2,235		—			—			2,235
Income tax expense		—		—			4,980			4,980
Net income (loss)		29,766		(476	)		(9,688	)		19,602

Included in Holding Company and Other are the expenses of the parent holding company and certain other enterprise-wide overhead costs, including public company costs and non-Enteris corporate employees, which have been included for purposes of reconciling to the consolidated amounts.