Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segments

Segments

The Company's CODM assesses the operating performance of and allocates resources for several operating segments using Segment Adjusted EBITDA. Management believes this financial metric is a key indicator of operating results since it excludes noncash revenues and expenses that are not reflective of the underlying business performance of an individual enterprise. The Company defines Segment Adjusted EBITDA as net income (loss) before (i) interest expense and interest income, (ii) income tax expense or benefit, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) loss on settlement agreements where noncash consideration is paid, (vi) adjustments for accrued bonuses paid in equity awards, (vii) gain or loss on disposals of assets, (viii) loss on impairment of goodwill and other noncurrent assets, (ix) equity in net income loss of affiliates, and (x) recognition of previously deferred revenue associated with upfront and milestone payments as well as cash outflows from capital expenditures and investments in affiliates, but includes proceeds from the sale of assets in the period sold. Segment Adjusted EBITDA excludes the gain or loss on disposals of assets and include proceeds from the sale of assets in the period sold.

Because the Company uses Segment Adjusted EBITDA as its primary measure of segment performance, it has included this measure in its discussion of segment operating results. The Company has also disclosed revenues from external customers and intersegment revenues for each reportable segment. The CODM does not use total assets by segment to evaluate segment performance or allocate resources, and accordingly, these amounts are not required to be disclosed. 

For the three and six months ended June 30, 2024, the Company's reportable segments were (i) Biopharmaceuticals and (ii) Exemplar. These identified reportable segments met the quantitative thresholds to be reported separately for the six months ended June 30, 2024. See Note 1 for a description of Biopharmaceuticals and Exemplar.

Segment Adjusted EBITDA by reportable segment was as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2024		2023		2024		2023
Biopharmaceuticals	$	(27,574)	$	(17,254)	$	(51,394)	$	(38,597)
Exemplar	(483)		(83)		(683)		38
Segment Adjusted EBITDA for reportable segments	$	(28,057)	$	(17,337)	$	(52,077)	$	(38,559)

The table below reconciles Segment Adjusted EBITDA for reportable segments to consolidated net loss before income taxes:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2024		2023		2024		2023
Segment Adjusted EBITDA for reportable segments	$	(28,057)	$	(17,337)	$	(52,077)	$	(38,559)
Remove cash paid for capital expenditures, net of proceeds from sale of assets	2,326		101		6,674		255
Interest Income	319		828		927		1,461
Other expenses:
Interest expense	(2)		(136)		(4)		(460)
Depreciation and amortization	(1,596)		(1,693)		(3,191)		(3,404)
Gain on disposals of assets	—		40		3		40
Impairment losses	(34,545)		—		(34,545)		—
Stock-based compensation expense	(1,964)		(2,188)		(4,545)		(5,320)
Adjustment related to accrued bonuses paid in equity awards	3,039		—		3,039		3,360
Shares issue for payment of services	—		—		(528)		(545)
Other	(1)		1		(1)		(1)
Consolidated loss before income taxes	$	(60,481)	$	(20,384)	$	(84,248)	$	(43,173)

Revenues from external customers in the Exemplar segment consisted of $717 and $1,767 for the three months ended June 30, 2024 and 2023, respectively, and $1,782 and $3,618 for the six months ended June 30, 2024 and 2023, respectively.

Total segment revenues from reportable segments equal total consolidated revenues on the condensed consolidated statements of operations.

For the three months ended June 30, 2024 and 2023, 74.8% and 73.3%, respectively, of total consolidated revenue was attributable to four customers in 2024 and four customer in 2023 in the Exemplar segment. For the six months ended June 30, 2024 and 2023 65.5% and 78.0%, respectively, of total consolidated revenue was attributed to four customers in 2024 and four in 2023, in the Exemplar segment.

As of June 30, 2024 and December 31, 2023, the Company had $0 and $1,958, respectively, of long-lived assets in foreign countries. There were no revenues derived in foreign countries for any periods presented.