Note 18 - Segment Information

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Segment Reporting [Text Block]

18. Segment Information

Valion Bio is developing biologics that activate the immune pathways to protect and restore tissue in conditions driven by radiation, disease, and immune dysregulation. As of December 10, 2025, the Company also operates a contract development and manufacturing organization (or "CDMO") through the Company's wholly owned subsidiary, Velocity Bioworks, Inc., (or "VBI"). The CDMO provides development services to Valion to support the manufacturing of Entolimod, the Company's lead product candidate. The Company manages its business activities as two operating segments, the biopharma business and the CDMO business. Valion's Chief Executive Officer is the Chief Operating Decision Maker ("CODM"). The CODM utilizes the Company's long-term plan, which includes product development roadmaps and long term financial models, as key input to resource allocation. The CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results using factors such as operating expenses, loss from operations and net loss.

Prior to December 2025, we operated as a single operating segment. For the three months ended June 30, 2026, we have two reportable segments; Biopharma and the CDMO. Our Biopharma segment is engaged in the development and commercialization of our pharmaceutical product candidates and is operated from our corporate headquarters in San Antonio, Texas. Our CDMO segment offers contract development and manufacturing services to Valion and external customers. The manufacturing site is located in San Antonio, Texas. The Company's two reportable business segments are managed separately based on the differences in their operations. The Company evaluates performance of its segments based on the contribution to operating income (loss) of the respective segments.

Financial information by business segment is set forth below (in thousands):

	As of June 30, 2026						As of December 31, 2025
	Biopharma		CDMO		Consolidated		Biopharma		CDMO		Consolidated
Cash and cash equivalents	$	1,991	$	117	$	2,108	$	12,277	$	368	$	12,645
Inventory, net		750	$	—	$	750		—	$	—	$	—
Prepaid expenses and other current assets		78		446		524		156		190		346
Property and equipment, net		26		12,317		12,343		34		12,607		12,641
Deferred offering costs		631		—		631		136		—		136
Licensed technology, net		2,243		—		2,243		2,243		—		2,243
Operating lease right-of-use assets, net		—		9,835		9,835		—		—		—
Goodwill		—		3,457		3,457		—		3,457		3,457
Restricted cash		368		—		368		—		—		—
Other assets		130		84		214		124		—		124
Total consolidated assets of continuing operations	$	6,217	$	26,256	$	32,473	$	14,970	$	16,622	$	31,592

	Three Months Ended June30, 2026									Three Months Ended June 30, 2025
	Biopharma			CDMO			Consolidated			Biopharma			CDMO		Consolidated
Operating Expenses
Research and development	$	1,544		$	1,160		$	2,704		$	655		$	—	$	655
Selling, general and administrative		1,431			2,289			3,720			1,023			—		1,023
Total operating expenses		2,975			3,449			6,424			1,678			—		1,678
Other expense (income)
Change in fair value of derivative liability		47			—			47			—			—		—
Interest income		11			—			11			3			—		3
Interest expense		(691	)		—			(691	)		—			—		—
Net other (expense) income		(633	)		—			(633	)		3			—		3
Net loss from operations before discontinued operations	$	(3,608	)	$	(3,449	)	$	(7,057	)	$	(1,675	)	$	—	$	(1,675	)
	Six Months Ended June 30, 2026									Six Months Ended June 30, 2025
	Biopharma			CDMO			Consolidated			Biopharma			CDMO		Consolidated
Operating Expenses
Research and development	$	2,401		$	2,157		$	4,558		$	990		$	—	$	990
Selling, general and administrative		3,485			4,015			7,500			2,065			—		2,065
Total operating expenses		5,886			6,172			12,058			3,055			—		3,055
Other expense (income)
Change in fair value of derivative liability		80			—			80			—			—		—
Interest income		35			—			35			7			—		7
Interest expense		(1,339	)		—			(1,339	)		—			—		—
Net other (expense) income		(1,224	)		—			(1,224	)		7			—		7
Net loss from operations before discontinued operations	$	(7,110	)	$	(6,172	)	$	(13,282	)	$	(3,048	)	$	—	$	(3,048	)

All of the Company's assets are located in the United States.