| Schedule of Segment Information |
The Company’s reportable segments for operating income (loss) for the three months ended March 31, 2026 and 2025 consist of the following ($ in thousands):
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Three Months Ended March 31, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
15,921 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,921 |
Other revenue |
|
|
40 |
|
|
— |
|
|
— |
|
|
77 |
|
|
117 |
Net revenue |
|
|
15,961 |
|
|
— |
|
|
— |
|
|
77 |
|
|
16,038 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
6,218 |
|
|
— |
|
|
— |
|
|
— |
|
|
6,218 |
Amortization of acquired intangible assets |
|
|
1,126 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,126 |
Research and development |
|
|
— |
|
|
200 |
|
|
178 |
|
|
162 |
|
|
540 |
Selling, general and administrative |
|
|
10,109 |
|
|
514 |
|
|
880 |
|
|
4,390 |
|
|
15,893 |
Total operating expenses |
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|
17,453 |
|
|
714 |
|
|
1,058 |
|
|
4,552 |
|
|
23,777 |
Loss from operations |
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|
(1,492) |
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(714) |
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|
(1,058) |
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|
(4,475) |
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(7,739) |
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|
|
|
|
|
|
|
Interest income |
|
|
157 |
|
|
18 |
|
|
103 |
|
|
292 |
|
|
570 |
Interest expense and financing fee |
|
|
(892) |
|
|
— |
|
|
— |
|
|
(2,476) |
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|
(3,368) |
Gain on sale of priority review voucher, net of expenses |
|
|
— |
|
|
— |
|
|
— |
|
|
158,873 |
|
|
158,873 |
Change in fair value of partner company derivative liability |
|
|
— |
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|
— |
|
|
— |
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|
(7,085) |
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|
(7,085) |
Gain (loss) on common stock warrant liabilities |
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|
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
Other income (expense) |
|
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(3) |
|
|
— |
|
|
— |
|
|
1,045 |
|
|
1,042 |
Total other income (expense) |
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(738) |
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|
19 |
|
|
103 |
|
|
150,649 |
|
|
150,033 |
Income (loss) before income tax expense |
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(2,230) |
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(695) |
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(955) |
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|
146,174 |
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|
142,294 |
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|
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Income tax expense |
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|
— |
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— |
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— |
|
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5,132 |
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|
5,132 |
Segment net income (loss) |
|
$ |
(2,230) |
|
$ |
(695) |
|
$ |
(955) |
|
$ |
141,042 |
|
$ |
137,162 |
Attributable to non-controlling interests |
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|
|
|
|
|
|
|
|
|
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|
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(26,789) |
Net income attributable to Fortress |
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|
|
|
|
|
|
|
|
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|
|
$ |
110,373 |
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|
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|
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Three Months Ended March 31, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
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Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(126) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(126) |
|
$ |
— |
Other Significant Items: |
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Change in fair value of equity method investment accounted for at fair value within other income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,046 |
|
$ |
1,046 |
Segment assets |
|
$ |
91,534 |
|
$ |
2,468 |
|
$ |
16,582 |
|
$ |
246,290 |
|
$ |
356,874 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
14 |
|
$ |
— |
|
$ |
9 |
|
$ |
23 |
Stock-based compensation - Selling, general and administrative |
|
$ |
989 |
|
$ |
47 |
|
$ |
22 |
|
$ |
675 |
|
$ |
1,733 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
Note 2: |
Segment activity consists of MSA fees paid by the subsidiaries to Fortress (see Note 15). |
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Three Months Ended March 31, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
13,139 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
13,139 |
|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
4,790 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,790 |
Amortization of acquired intangible assets |
|
|
1,065 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,065 |
Research and development |
|
|
39 |
|
|
411 |
|
|
3,788 |
|
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(964) |
|
|
664 |
|
|
3,938 |
Selling, general and administrative |
|
|
10,569 |
|
|
1,494 |
|
|
7,361 |
|
|
1,217 |
|
|
5,022 |
|
|
25,663 |
Total operating expenses |
|
|
16,463 |
|
|
1,905 |
|
|
11,149 |
|
|
253 |
|
|
5,686 |
|
|
35,456 |
Loss from operations |
|
|
(3,324) |
|
|
(1,905) |
|
|
(11,149) |
|
|
(253) |
|
|
(5,686) |
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|
(22,317) |
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|
|
Interest income |
|
|
149 |
|
|
32 |
|
|
1 |
|
|
100 |
|
|
208 |
|
|
490 |
Interest expense and financing fee |
|
|
(891) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,914) |
|
|
(2,805) |
Gain (loss) on common stock warrant liabilities |
|
|
— |
|
|
15 |
|
|
(62) |
|
|
— |
|
|
— |
|
|
(47) |
Other expense |
|
|
(7) |
|
|
— |
|
|
(2) |
|
|
— |
|
|
(3) |
|
|
(12) |
Total other income (expense) |
|
|
(749) |
|
|
47 |
|
|
(63) |
|
|
100 |
|
|
(1,709) |
|
|
(2,374) |
Segment net loss |
|
$ |
(4,073) |
|
$ |
(1,858) |
|
$ |
(11,212) |
|
$ |
(153) |
|
$ |
(7,395) |
|
$ |
(24,691) |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,107 |
Net loss attributable to Fortress |
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|
$ |
(10,584) |
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|
Three Months Ended March 31, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
— |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
117 |
|
$ |
178 |
|
$ |
279 |
|
$ |
(573) |
|
$ |
— |
Other Significant Items: |
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|
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|
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|
|
|
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Segment assets |
|
$ |
84,963 |
|
$ |
3,593 |
|
$ |
34,165 |
|
$ |
14,909 |
|
$ |
40,440 |
|
$ |
178,071 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
40 |
|
$ |
689 |
|
$ |
(11) |
|
$ |
625 |
|
$ |
1,343 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,323 |
|
$ |
145 |
|
$ |
1,267 |
|
$ |
50 |
|
$ |
2,161 |
|
$ |
4,946 |
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 2: |
Segment activity consists of MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
|