11. Business Segment, Geographic, and Concentration Risk Information

The Company has three operating segments, which are organized based mainly on the nature of the business activities performed and regulatory environments in which they operate. The Company also considers the types of products from which the reportable segments derive their revenue (only applicable to two reportable segments). Each operating segment has a segment manager who is held accountable for operations and has discrete financial information that is regularly reviewed by the Company’s chief operating decision-maker. The Company’s operating segments are as follows:

Oncology Innovation Platform—This operating segment performs research and development on certain of the Company’s proprietary drugs, from the preclinical development of its chemical compounds, to the execution and analysis of its several clinical trials. This segment focuses specifically on the Orascovery oral absorption platform, the Src Kinase inhibitors, and the transmucosal drug delivery system. This segment performs research in the United States, Taiwan, Hong Kong, and mainland China.

Global Supply Chain Platform—This operating segment includes Athenex Pharma Solutions and Polymed. Athenex Pharma Solutions is a contract manufacturing company that provides small to mid-scale Current Good Manufacturing Practices (“cGMP”) manufacturing of clinical and commercial products for pharmaceutical and biotech companies. Athenex Pharma Solutions also performs microbiological and analytical testing for raw material and formulated products and has expanded and begun to manufacture and sell pharmaceutical products under 503B regulations set forth by the U.S. Food and Drug Administration (“FDA”). Polymed markets and sells active pharmaceutical ingredient (“API”) and medical devices in North America, Europe, and Asia from its locations in Texas and China. Polymed also develops new compounds, processing techniques, and manufactures API at Taihao, a cGMP facility in Chongqing, China.

Commercial Platform—This operating segment includes Athenex Pharmaceutical Division, which focuses on the manufacturing, distribution, and sales of specialty pharmaceuticals. This segment provides services and products to external customers based mainly in the United States.

The Company’s Oncology Innovation Platform segment operates and holds long-lived assets located in the United States, Taiwan, Hong Kong, and mainland China. The Global Supply Chain Platform segment operates and holds long-lived assets located in the United States and China. The Commercial Platform segment operates and holds long-lived assets located in the United States. For geographic segment reporting, product sales have been attributed to countries based on the location of the customer.

Segment information is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net (loss) income attributable to Athenex, Inc.:
Oncology Innovation Platform	$	(37,639	)	$	(22,558	)	$	(65,985	)	$	(83,836	)
Global Supply Chain Platform		(6,089	)		(1,564	)		(16,780	)		(4,693	)
Commercial Platform		(2,443	)		848			(7,562	)		(14,358	)
Total consolidated net loss attributable to Athenex, Inc.	$	(46,171	)	$	(23,274	)	$	(90,327	)	$	(102,887	)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Total revenue:
Oncology Innovation Platform	$	5,117		$	205		$	30,532		$	1,208
Global Supply Chain Platform		7,092			8,601			17,991			19,407
Commercial Platform		7,315			7,378			23,006			9,274
Total revenue for reportable segments		19,524			16,184			71,529			29,889
Intersegment revenue		(1,096	)		(2,190	)		(3,700	)		(6,719	)
Total consolidated revenue	$	18,428		$	13,994		$	67,829		$	23,170

Intersegment revenue eliminated in the above table reflects sales from the Global Supply Chain Platform to the Oncology Innovation Platform.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Total revenue by product group:
API sales	$	3,690	$	5,345	$	9,538	$	10,369
Medical device sales		1,322		562		2,342		1,128
Contract manufacturing revenue		17		250		412		934
Commercial product sales		8,280		7,505		25,092		9,547
License fees		5,000		—		30,000		500
Consulting revenue		96		60		278		256
Grant revenue		23		272		167		436
Total consolidated revenue	$	18,428	$	13,994	$	67,829	$	23,170

Intersegment revenue is recorded by the selling segment when it is realized or realizable and all revenue recognition criteria are met. Upon consolidation, all intersegment revenue and related cost of sales are eliminated from the selling segment’s ledger.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Total depreciation and amortization:
Oncology Innovation Platform	$	174	$	130	$	505	$	342
Global Supply Chain Platform		490		548		1,185		1,569
Commercial Platform		245		243		734		674
Total consolidated depreciation and amortization	$	909	$	921	$	2,424	$	2,585

	September 30,		December 31,
	2018		2017
Total assets:
Oncology Innovation Platform	$	164,480	$	65,966
Global Supply Chain Platform		51,327		51,128
Commercial Platform		28,660		23,319
Total consolidated assets	$	244,467	$	140,413

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Total revenue:
United States	$	9,559	$	8,114	$	27,405	$	11,056
Spain		5,000		—		30,000		—
India		259		3,015		1,701		5,275
Austria		2,227		964		5,102		2,682
China		306		1,038		1,917		2,267
Other foreign countries		1,077		863		1,704		1,890
Total consolidated revenue	$	18,428	$	13,994	$	67,829	$	23,170

	September 30,		December 31,
	2018		2017
Total property and equipment, net:
United States	$	6,458	$	5,305
China		4,716		4,346
Total consolidated property and equipment, net	$	11,174	$	9,651

Customer revenue and accounts receivable concentration amounted to the following for the identified periods. These customers relate to the Commercial Platform segment and the Global Supply Chain Platform segment.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Percentage of total revenue by customer:
Customer A		27	%		—	%		44	%		—	%
Customer B		13	%		5	%		9	%		4	%
Customer C		12	%		16	%		13	%		11	%
Customer D		11	%		5	%		8	%		3	%
Customer E		10	%		7	%		6	%		11	%
Customer F		1	%		18	%		2	%		20	%

	September 30,			December 31,
	2018			2017
Percentage of total accounts receivable by customer:
Customer A		27	%		18	%
Customer B		20	%		10	%
Customer C		13	%		6	%
Customer D		10	%		4	%
Customer E		—	%		26	%
Customer F		—	%		13	%