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 RHOFADE, which is a topical treatment for persistent facial erythema, or redness, associated with rosacea in adults. The Company sells RHOFADE to a limited number of wholesalers in the United States. These wholesalers subsequently resell RHOFADE to pharmacies and health care providers. The Company sold and marketed ESKATA in the United States during the six months ended June 30, 2019 and 2018 and subsequently discontinued sales and marketing of ESKATA in August 2019. ESKATA is a proprietary formulation of high-concentration hydrogen peroxide topical solution that the Company was marketing as an office-based prescription treatment for raised SKs.

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 and six months ended June 30, 2019 and 2018 are summarized in the tables below:


	Dermatology		Contract		Corporate		Total
Three Months Ended June 30, 2019	Therapeutics		Research		and Other		Company
Revenue, net	$	4,979	$	3,807	$	(2,921)	$	5,865
Cost of revenue (excludes amortization)		1,709		3,819		(2,825)		2,703
Research and development		17,718		—		(96)		17,622
Sales and marketing		7,164		13		—		7,177
General and administrative		—		600		7,390		7,990
Goodwill impairment		18,504		—		—		18,504
Amortization of definite-lived intangible		1,660		—		—		1,660
Loss from operations	$	(41,776)	$	(625)	$	(7,390)	$	(49,791)


	Dermatology		Contract		Corporate		Total
Three Months Ended June 30, 2018	Therapeutics		Research		and Other		Company
Revenue, net	$	2,533	$	3,053	$	(1,910)	$	3,676
Cost of revenue		152		2,621		(1,592)		1,181
Research and development		13,984		—		—		13,984
Sales and marketing		12,360		8		—		12,368
General and administrative		—		521		7,600		8,121
Loss from operations	$	(23,963)	$	(97)	$	(7,918)	$	(31,978)

	Dermatology		Contract		Corporate		Total
Six Months Ended June 30, 2019	Therapeutics		Research		and Other		Company
Revenue, net	$	8,757	$	8,995	$	(6,846)	$	10,906
Cost of revenue (excludes amortization)		3,279		8,856		(6,655)		5,480
Research and development		37,732		—		(191)		37,541
Sales and marketing		16,976		32		—		17,008
General and administrative		—		1,113		15,067		16,180
Goodwill impairment		18,504		—		—		18,504
Amortization of definite-lived intangible		3,319		—		—		3,319
Loss from operations	$	(71,053)	$	(1,006)	$	(15,067)	$	(87,126)


	Dermatology		Contract		Corporate		Total
Six Months Ended June 30, 2018	Therapeutics		Research		and Other		Company
Revenue, net	$	2,533	$	5,554	$	(3,293)	$	4,794
Cost of revenue		152		4,740		(2,744)		2,148
Research and development		27,590		—		—		27,590
Sales and marketing		23,581		20		—		23,601
General and administrative		—		992		13,389		14,381
Loss from operations	$	(48,790)	$	(198)	$	(13,938)	$	(62,926)

Intersegment Revenue

Revenue for the contract research segment included $2,921 and $1,910 for services performed on behalf of the dermatology therapeutics segment for the three months ended June 30, 2019 and 2018, respectively, and $6,846 and $3,293 for the six months ended June 30, 2019 and 2018, respectively. All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.