Segment Information

3 Months Ended

Mar. 31, 2025

Segment Information

Segment Information

14. 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 condensed consolidated statement of operations and comprehensive loss. 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 chief operating decision maker (“CODM”).

Since inception, the Company has incurred net losses and has an accumulated deficit of $917.9 million as of March 31, 2025. 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 three months ended March 31, 2025 and 2024 is as follows:

(In thousands)			Contract		Intersegment
Three Months Ended March 31, 2025	Therapeutics		Research		Elimination		Total
Revenue from external customers	$	1,010	$	445	$	—	$	1,455
Intercompany revenue		—		3,435		(3,435)		—
Cost of revenue		—		3,717		(3,211)		506
Research and development:
Bosakitug		3,384		—		—		3,384
ATI-2138		1,808		—		—		1,808
ATI-052		619		—		—		619
Zunsemetinib		111		—		—		111
Discovery		1,346		—		—		1,346
Total Research and development project spend		7,268		—		—		7,268
Personnel		2,927		—		—		2,927
Other research and development expense(1)		1,613		—		—		1,613
Total research and development		11,808		—		(224)		11,584
General and administrative		—		900		—		900
Licensing		1,010		—		—		1,010
Revaluation of contingent consideration		300		—		—		300
Segment operating loss	$	(12,108)	$	(737)	$	—	$	(12,845)
Non-segment general and administrative								5,239
Other income								2,999
Loss before income taxes							$	(15,085)

(1) Other segment items for the Therapeutics segment consist primarily of the following research and development expenses: stock-based compensation, depreciation and amortization, and regulatory.

(In thousands)			Contract		Intersegment
Three Months Ended March 31, 2024	Therapeutics		Research		Elimination		Total
Revenue from external customers	$	1,741	$	657	$	—	$	2,398
Intercompany revenue		—		3,665		(3,665)		—
Cost of revenue		—		4,241		(3,432)		809
Research and development:
ATI-2138		63		—		—		63
Lepzacitinib		1,073		—		—		1,073
Zunsemetinib		2,023		—		—		2,023
Discovery		1,540		—		—		1,540
Total Research and development project spend		4,699		—		—		4,699
Personnel		4,702		—		—		4,702
Other research and development expense(1)		677		—		—		677
Total research and development		10,078		—		(233)		9,845
General and administrative		—		1,108		—		1,108
Licensing		1,031		—		—		1,031
Revaluation of contingent consideration		2,800		—		—		2,800
Segment operating loss	$	(12,168)	$	(1,027)	$	—	$	(13,195)
Non-segment general and administrative								5,736
Other income								1,990
Loss before income taxes							$	(16,941)

(1) Other segment items for the Therapeutics segment consist primarily of the following research and development expenses: stock-based compensation, depreciation and amortization, and regulatory.