Segment Information

12 Months Ended

Dec. 31, 2024

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 and earns revenue through licensing of the Company’s intellectual property. The contract research segment earns revenue from the provision of laboratory services.

All intersegment revenue has been eliminated in the Company’s consolidated statement of operations. All customers and revenue pertaining to the Company’s segments are based in the United States and all assets are held in the United States. The Company does not report asset information by segment because it is not regularly provided to the Company’s chief executive officer, who is the Company’s CODM.

Since inception, the Company has incurred net losses and has an accumulated deficit of $902.9 million as of December 31, 2024. As such, the CODM uses segment loss from operations for each segment in assessing segment performance by comparing the results of each segment to forecast.  All intercompany activity is eliminated in the intersegment elimination column in the tables below.

A reconciliation of operating loss to total consolidated loss before income taxes, for the years ended December 31, 2024 and 2023 is as follows:

(In thousands)			Contract		Intersegment
Year Ended December 31, 2024	Therapeutics		Research		Elimination		Total
Revenue from external customers	$	16,179	$	2,541	$	—	$	18,720
Intercompany revenue		—		13,416		(13,416)		—
Cost of revenue		—		15,349		(12,557)		2,792
Bosakitug		299		—		—		299
ATI-2138		4,209		—		—		4,209
ATI-052		1,895		—		—		1,895
Lepzacitinib		1,300		—		—		1,300
Zunsemetinib		4,496		—		—		4,496
Discovery		5,775		—		—		5,775
Total Research and development project spend		17,974		—		—		17,974
Personnel		11,446		—		—		11,446
Other research and development expense(1)		5,025		—		—		5,025
Total research and development		34,445		—		(859)		33,586
General and administrative		—		4,035		—		4,035
Licensing		12,666		—		—		12,666
Revaluation of contingent consideration		2,500		—		—		2,500
In-process research and development		86,905		—		—		86,905
Segment operating loss	$	(120,337)	$	(3,427)	$	—	$	(123,764)
Non-segment general and administrative								18,168
Other income								9,867
Loss before income taxes								(132,065)
(In thousands)			Contract		Intersegment
Year Ended December 31, 2023	Therapeutics		Research		Elimination		Total
Revenue from external customers	$	28,214	$	3,035	$	—	$	31,249
Intercompany revenue		—		16,543		(16,543)		—
Cost of revenue		—		18,960		(15,537)		3,423
Bosakitug		—		—		—		—
ATI-2138		12,143		—		—		12,143
ATI-052		—		—		—		—
Lepzacitinib		12,129		—		—		12,129
Zunsemetinib		36,461		—		—		36,461
Discovery		6,881		—		—		6,881
Total Research and development project spend		67,614		—		—		67,614
Personnel		18,977		—		—		18,977
Other research and development expense(1)		12,799		—		—		12,799
Total research and development		99,390		—		(1,006)		98,384
General and administrative		—		4,561		—		4,561
Licensing		14,658		—		—		14,658
Revaluation of contingent consideration		(26,900)		—		—		(26,900)
In-process research and development		6,629		—		—		6,629
Segment operating loss	$	(65,563)	$	(3,943)	$	—	$	(69,506)
Non-segment general and administrative								27,851
Other income								8,509
Loss before income taxes								(88,848)
(1) Other segment items for the Therapeutics segment consist primarily of the following research and development expenses; stock-based compensation, depreciation and amortization, regulatory.