Segment Data

9 Months Ended

Sep. 30, 2024

Segment Data

Segment Data

14. Segment Data

The Company has two reportable segments: animal health and human health. The animal health segment is focused on developing and commercializing prescription and non-prescription products for companion and production animals. The human health segment is focused on developing and commercializing human products and the ongoing commercialization of Mytesi, which the U.S. FDA approves for the symptomatic relief of non-infectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. The Company has not disclosed revenue by geographic location as its revenues are distributed across multiple regions without significant concentration in any single area.

The accounting policies used in the segment reporting are the same as those described in the summary significant accounting policies (Note 2). The Company’s CODM is the chief financial officer. The CODM primarily utilizes segment's net comprehensive profit or loss as the key indicator in assessing the segment's performance and allocating resources.

The Company's reportable segments net revenues and net loss for the three and nine months ended September 30, 2024 and 2023, consisted of the following:

	Nine Months Ended									Nine Months Ended
	September 30, 2024									September 30, 2023
(in thousands)	(unaudited)									(unaudited)
	Human Health			Animal Health			Total			Human Health			Animal Health			Total
External revenue	$	7,954		$	226		$	8,180		$	7,335		$	126		$	7,461
Less: Segment expenses
Cost of revenue		1,356			42			1,398			1,306			44			1,350
Research and development		10,000			2,011			12,011			13,052			2,074			15,126
Sales and marketing		4,768			209			4,977			4,697			232			4,929
General and administrative		6,700			7,222			13,922			6,809			7,397			14,206
Interest		87			338			425			25			6,132			6,157
Other segment items*		354			5,697			6,051			168			(373	)		(205	)
Segment expenses		23,265			15,519			38,784			26,057			15,506			41,563
Segment net comprehensive loss	$	(15,311	)	$	(15,293	)	$	(30,604	)	$	(18,722	)	$	(15,380	)	$	(34,102	)
Reconciliation of net comprehensive loss
Adjustments and reconciling items**								1,547									1,378
Consolidated net comprehensive loss							$	(29,057	)							$	(32,724	)

	Three Months Ended									Three Months Ended
	September 30, 2024									September 30, 2023
(in thousands)	(unaudited)									(unaudited)
	Human Health			Animal Health			Total			Human Health			Animal Health			Total
External revenue	$	3,014		$	94		$	3,108		$	2,782		$	31		$	2,813
Less: Segment expenses
Cost of revenue		527			14			541			501			13			514
Research and development		3,599			446			4,045			5,436			641			6,077
Sales and marketing		1,946			64			2,010			1,401			71			1,472
General and administrative		2,288			1,983			4,271			1,997			2,013			4,010
Interest		32			(163	)		(131	)		24			500			524
Other segment items*		117			3,141			3,258			118			(1,448	)		(1,330	)
Segment expenses		8,509			5,485			13,994			9,477			1,790			11,267
Segment net comprehensive loss	$	(5,495	)	$	(5,391	)	$	(10,886	)	$	(6,695	)	$	(1,759	)	$	(8,454	)
Reconciliation of net comprehensive loss
Adjustments and reconciling items**								701									467
Consolidated net comprehensive loss							$	(10,185	)							$	(7,987	)

*Other segment items for each reportable segment include:

•Human Health - realized gain/loss on foreign exchange transactions, change in fair value of warrants, gain/loss on debt extinguishment and share in net income or loss in joint venture.

•Animal Health - realized and unrealized gain/loss on foreign exchange transactions.

**Adjustments and reconciling items include intercompany elimination entries

The Company's reportable segments assets consisted of the following:

	September 30,		December 31,
	2024		2023
(in thousands)	(unaudited)
Segment assets
Human Health	$	44,193	$	42,289
Animal Health		174,466		153,190
Total	$	218,659	$	195,479

The reconciliation of segments assets to the consolidated assets is as follows:

	September 30,			December 31,
	2024			2023
(in thousands)	(unaudited)
Total assets for reportable segments	$	218,659		$	195,479
Less: Investment in subsidiary		(29,232	)		(29,232	)
Less: Intercompany loan		(130,961	)		(115,484	)
Consolidated Totals	$	58,466		$	50,763