Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information

Segment Information

16. Segment Information

The Company has two reportable segments, therapeutics and contract research.  The therapeutics segment is focused on identifying and developing innovative therapies to address significant unmet needs for immuno-inflammatory diseases.  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, 2020 and 2019 are summarized in the tables below:

			Contract		Corporate		Total
Three Months Ended June 30, 2020	Therapeutics		Research		and Other		Company
Total revenue	$	193	$	3,657	$	(1,804)	$	2,046
Cost of revenue		—		3,082		(1,693)		1,389
Research and development		6,577		—		(111)		6,466
General and administrative		—		688		4,884		5,572
Loss from operations	$	(6,384)	$	(113)	$	(4,884)	$	(11,381)
Loss from discontinued operations	$	(27)	$	—	$	—	$	(27)
			Contract		Corporate		Total
Three Months Ended June 30, 2019	Therapeutics		Research		and Other		Company
Total revenue	$	—	$	3,807	$	(2,921)	$	886
Cost of revenue		—		3,819		(2,825)		994
Research and development		17,615		—		(96)		17,519
General and administrative		359		613		6,497		7,469
Goodwill impairment		18,504		—		—		18,504
Loss from operations	$	(36,478)	$	(625)	$	(6,497)	$	(43,600)
Loss from discontinued operations	$	(5,298)	$	—	$	(893)	$	(6,191)
			Contract		Corporate		Total
Six Months Ended June 30, 2020	Therapeutics		Research		and Other		Company
Total revenue	$	411	$	7,064	$	(4,022)	$	3,453
Cost of revenue		—		6,468		(3,810)		2,658
Research and development		16,121		—		(212)		15,909
General and administrative		—		1,440		10,333		11,773
Loss from operations	$	(15,710)	$	(844)	$	(10,333)	$	(26,887)
Loss from discontinued operations	$	(284)	$	—	$	(1)	$	(285)
			Contract		Corporate		Total
Six Months Ended June 30, 2019	Therapeutics		Research		and Other		Company
Total revenue	$	—	$	8,995	$	(6,846)	$	2,149
Cost of revenue		—		8,856		(6,655)		2,201
Research and development		37,352		—		(191)		37,161
General and administrative		477		1,145		13,304		14,926
Goodwill impairment		18,504		—		—		18,504
Loss from operations	$	(56,333)	$	(1,006)	$	(13,304)	$	(70,643)
Loss from discontinued operations	$	(14,720)	$	—	$	(1,763)	$	(16,483)

Intersegment Revenue

Revenue for the contract research segment included $4,022 and $6,846 for services performed on behalf of the therapeutics segment for the six months ended June 30, 2020 and 2019, respectively.  All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.