15. Segment Information

The Company has two reportable segments, dermatology therapeutics and contract research. The dermatology therapeutics segment is focused on identifying, developing and commercializing innovative therapies to address significant unmet needs for immuno-inflammatory and dermatological diseases. The Company currently markets and sells two drugs, ESKATA and RHOFADE. ESKATA is a proprietary formulation of high-concentration hydrogen peroxide topical solution that the Company is commercializing as an office-based prescription treatment for raised SKs, a common non-malignant skin tumor. RHOFADE is a topical treatment for persistent facial erythema, or redness, associated with rosacea in adults. The Company sells ESKATA and RHOFADE to a limited number of wholesalers in the United States. These wholesalers subsequently resell the Company’s products to pharmacies and health care providers. The contract research segment earns revenue from the provision of laboratory services to clients through Confluence, the Company’s wholly-owned subsidiary. Contract research revenue is generally evidenced by contracts with clients which are on an agreed upon fixed-price, fee-for-service basis. Corporate and other includes general and administrative expenses as well as eliminations of intercompany transactions. The Company does not report balance sheet information by segment since it is not reviewed by the chief operating decision maker, and all of the Company’s tangible assets are held in the United States.

The Company’s results of operations by segment for the three months ended March 31, 2019 and 2018 are summarized in the tables below:



	Dermatology		Contract		Corporate		Total
Quarter Ended March 31, 2019	Therapeutics		Research		and Other		Company
Revenue, net	$	3,778	$	5,190	$	(3,927)	$	5,041
Cost of revenue (excludes amortization)		1,570		5,037		(3,830)		2,777
Research and development		20,016		—		(97)		19,919
Sales and marketing		9,810		18		—		9,828
General and administrative		—		513		7,680		8,193
Amortization of definite-lived intangible		1,659		—		—		1,659
Loss from operations	$	(27,618)	$	(378)	$	(7,680)	$	(37,335)


	Dermatology		Contract		Corporate		Total
Quarter Ended March 31, 2018	Therapeutics		Research		and Other		Company
Revenue, net	$	—	$	2,502	$	(1,384)	$	1,118
Cost of revenue		—		2,120		(1,153)		967
Research and development		13,606		—		—		13,606
Sales and marketing		11,221		12		—		11,233
General and administrative		—		472		5,788		6,260
Loss from operations	$	(24,827)	$	(102)	$	(6,019)	$	(30,948)

Intersegment Revenue

Revenue for the contract research segment included $3,927 and $1,384 for services performed on behalf of the dermatology therapeutics segment for the three months ended March 31, 2019 and 2018, respectively. All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.