| Schedule of segment information |
The Company’s reportable segments for operating income (loss) for the three and nine months ended September 30, 2026 and 2025 consist of the following ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
18,925 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
18,925 |
Other revenue |
|
|
42 |
|
|
— |
|
|
— |
|
|
192 |
|
|
234 |
Net revenue |
|
|
18,967 |
|
|
— |
|
|
— |
|
|
192 |
|
|
19,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
5,884 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,884 |
Intangible assets amortization |
|
|
969 |
|
|
— |
|
|
— |
|
|
— |
|
|
969 |
Research and development |
|
|
51 |
|
|
212 |
|
|
208 |
|
|
1,207 |
|
|
1,678 |
Selling, general and administrative |
|
|
12,593 |
|
|
492 |
|
|
850 |
|
|
3,886 |
|
|
17,821 |
Total operating expenses |
|
|
19,497 |
|
|
704 |
|
|
1,058 |
|
|
5,093 |
|
|
26,352 |
Income (loss) from operations |
|
|
(530) |
|
|
(704) |
|
|
(1,058) |
|
|
(4,901) |
|
|
(7,193) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
140 |
|
|
13 |
|
|
94 |
|
|
1,048 |
|
|
1,295 |
Interest expense and financing fee |
|
|
(919) |
|
|
— |
|
|
— |
|
|
(1,579) |
|
|
(2,498) |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
104 |
|
|
104 |
Other expense |
|
|
(6) |
|
|
— |
|
|
— |
|
|
(12) |
|
|
(18) |
Total other income (expense) |
|
|
(785) |
|
|
13 |
|
|
94 |
|
|
(439) |
|
|
(1,117) |
Loss before income tax expense |
|
|
(1,315) |
|
|
(691) |
|
|
(964) |
|
|
(5,340) |
|
|
(8,310) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit |
|
|
— |
|
|
— |
|
|
— |
|
|
(56) |
|
|
(56) |
Segment net loss |
|
$ |
(1,315) |
|
$ |
(691) |
|
$ |
(964) |
|
$ |
(5,284) |
|
$ |
(8,254) |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,409 |
Net loss attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(5,845) |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including AcqCorpLXII, Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
103,846 |
|
$ |
1,530 |
|
$ |
14,683 |
|
$ |
160,155 |
|
$ |
280,215 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
9 |
|
$ |
— |
|
$ |
22 |
|
$ |
31 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,333 |
|
$ |
38 |
|
$ |
2 |
|
$ |
745 |
|
$ |
2,118 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including AcqCorpLXII, 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). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
17,025 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
17,025 |
Other revenue |
|
|
606 |
|
|
— |
|
|
— |
|
|
|
|
|
606 |
Net revenue |
|
|
17,631 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
5,755 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,755 |
Intangible assets amortization |
|
|
1,064 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,064 |
Research and development |
|
|
287 |
|
|
177 |
|
|
(333) |
|
|
77 |
|
|
208 |
Selling, general and administrative |
|
|
12,054 |
|
|
547 |
|
|
957 |
|
|
3,857 |
|
|
17,415 |
Total operating expenses |
|
|
19,160 |
|
|
724 |
|
|
624 |
|
|
3,934 |
|
|
24,442 |
Loss from operations |
|
|
(1,529) |
|
|
(724) |
|
|
(624) |
|
|
(3,934) |
|
|
(6,811) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
154 |
|
|
34 |
|
|
156 |
|
|
392 |
|
|
736 |
Interest expense and financing fee |
|
|
(937) |
|
|
— |
|
|
— |
|
|
(1,805) |
|
|
(2,742) |
Loss on common stock warrant liabilities |
|
|
— |
|
|
(2) |
|
|
— |
|
|
— |
|
|
(2) |
Other income (expense) |
|
|
(3) |
|
|
— |
|
|
— |
|
|
17,675 |
|
|
17,672 |
Total other income (expense) |
|
|
(786) |
|
|
32 |
|
|
156 |
|
|
16,262 |
|
|
15,664 |
Income (loss) before income tax expense |
|
|
(2,315) |
|
|
(692) |
|
|
(468) |
|
|
12,328 |
|
|
8,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
26 |
|
|
26 |
Segment net income (loss) |
|
$ |
(2,315) |
|
$ |
(692) |
|
$ |
(468) |
|
$ |
12,302 |
|
$ |
8,827 |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,977) |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,850 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
242 |
|
$ |
(304) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity method investment held by Urica |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,075 |
|
$ |
15,075 |
Segment assets |
|
$ |
85,191 |
|
$ |
3,725 |
|
$ |
19,361 |
|
$ |
73,131 |
|
$ |
181,407 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
31 |
|
$ |
1 |
|
$ |
120 |
|
$ |
152 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,854 |
|
$ |
132 |
|
$ |
22 |
|
$ |
1,037 |
|
$ |
3,045 |
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 fees paid by the subsidiaries to Fortress (see Note 15). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
52,685 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
52,685 |
Other revenue |
|
|
753 |
|
|
— |
|
|
— |
|
|
476 |
|
|
1,229 |
Net revenue |
|
|
53,438 |
|
|
— |
|
|
— |
|
|
476 |
|
|
53,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
18,245 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,245 |
Amortization of acquired intangible assets |
|
|
3,064 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,064 |
Research and development |
|
|
105 |
|
|
659 |
|
|
610 |
|
|
1,649 |
|
|
3,023 |
Selling, general and administrative |
|
|
33,590 |
|
|
1,466 |
|
|
2,676 |
|
|
16,787 |
|
|
54,519 |
Total operating expenses |
|
|
55,004 |
|
|
2,125 |
|
|
3,286 |
|
|
18,436 |
|
|
78,851 |
Loss from operations |
|
|
(1,566) |
|
|
(2,125) |
|
|
(3,286) |
|
|
(17,960) |
|
|
(24,937) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
451 |
|
|
48 |
|
|
295 |
|
|
2,652 |
|
|
3,446 |
Interest expense and financing fee |
|
|
(2,717) |
|
|
— |
|
|
— |
|
|
(4,625) |
|
|
(7,342) |
Gain on sale of priority review voucher, net of expenses |
|
|
— |
|
|
— |
|
|
— |
|
|
158,873 |
|
|
158,873 |
Change in fair value of partner company derivative liability |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,085) |
|
|
(7,085) |
Gain on common stock warrant liabilities |
|
|
— |
|
|
1 |
|
|
— |
|
|
|
|
|
1 |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
186 |
|
|
186 |
Other income (expense) |
|
|
(10) |
|
|
— |
|
|
— |
|
|
11,774 |
|
|
11,764 |
Total other income (expense) |
|
|
(2,276) |
|
|
49 |
|
|
295 |
|
|
161,775 |
|
|
159,843 |
Income (loss) before income tax expense |
|
|
(3,842) |
|
|
(2,076) |
|
|
(2,991) |
|
|
143,815 |
|
|
134,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
15 |
|
|
— |
|
|
— |
|
|
5,380 |
|
|
5,395 |
Segment net income (loss) |
|
$ |
(3,857) |
|
$ |
(2,076) |
|
$ |
(2,991) |
|
$ |
138,435 |
|
$ |
129,511 |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(25,451) |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
104,060 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including AcqCorpLXII, Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
188 |
|
$ |
188 |
|
$ |
(375) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
188 |
|
$ |
188 |
|
$ |
(375) |
|
$ |
— |
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity method investment held by Urica |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
11,791 |
|
$ |
11,791 |
Segment assets |
|
$ |
103,846 |
|
$ |
1,530 |
|
$ |
14,683 |
|
$ |
160,155 |
|
$ |
280,215 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
38 |
|
$ |
— |
|
$ |
51 |
|
$ |
89 |
Stock-based compensation - Selling, general and administrative |
|
$ |
3,759 |
|
$ |
131 |
|
$ |
45 |
|
$ |
2,758 |
|
$ |
6,693 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including AcqCorpLXII, 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). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Product revenue, net |
|
$ |
45,173 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
45,173 |
Other revenue |
|
|
606 |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,010 |
Net revenue |
|
|
45,779 |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
47,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
15,484 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
15,484 |
Intangible assets amortization |
|
|
3,193 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,193 |
Research and development |
|
|
326 |
|
|
780 |
|
|
10,775 |
|
|
(1,199) |
|
|
1,586 |
|
|
12,268 |
Selling, general and administrative |
|
|
34,505 |
|
|
2,955 |
|
|
27,263 |
|
|
2,961 |
|
|
13,986 |
|
|
81,670 |
Total operating expenses |
|
|
53,508 |
|
|
3,735 |
|
|
38,038 |
|
|
1,762 |
|
|
15,572 |
|
|
112,615 |
Loss from operations |
|
|
(7,729) |
|
|
(2,331) |
|
|
(38,038) |
|
|
(1,762) |
|
|
(15,572) |
|
|
(65,432) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
441 |
|
|
96 |
|
|
90 |
|
|
379 |
|
|
842 |
|
|
1,848 |
Interest expense and financing fee |
|
|
(2,765) |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,300) |
|
|
(8,065) |
Gain (loss) on common stock warrant liabilities |
|
|
— |
|
|
14 |
|
|
(108) |
|
|
— |
|
|
(305) |
|
|
(399) |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
27,127 |
|
|
27,127 |
Other income (expense) |
|
|
(71) |
|
|
— |
|
|
(3) |
|
|
— |
|
|
17,673 |
|
|
17,599 |
Total other income (expense) |
|
|
(2,395) |
|
|
110 |
|
|
(21) |
|
|
379 |
|
|
40,037 |
|
|
38,110 |
Income (loss) before income tax expense |
|
|
(10,124) |
|
|
(2,221) |
|
|
(38,059) |
|
|
(1,383) |
|
|
24,465 |
|
|
(27,322) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
60 |
|
|
— |
|
|
— |
|
|
— |
|
|
136 |
|
|
196 |
Segment net income (loss) |
|
$ |
(10,184) |
|
$ |
(2,221) |
|
$ |
(38,059) |
|
$ |
(1,383) |
|
$ |
24,329 |
|
$ |
(27,518) |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,270 |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: |
Checkpoint results for five months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Intersegment activity3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
188 |
|
$ |
— |
|
$ |
125 |
|
$ |
(313) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
242 |
|
$ |
261 |
|
$ |
519 |
|
$ |
(1,022) |
|
$ |
— |
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity method investment held by Urica |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,075 |
|
$ |
15,075 |
Segment assets |
|
$ |
85,191 |
|
$ |
3,725 |
|
$ |
— |
|
$ |
19,361 |
|
$ |
73,131 |
|
$ |
181,407 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
102 |
|
$ |
4,782 |
|
$ |
(10) |
|
$ |
1,371 |
|
$ |
6,245 |
Stock-based compensation - Selling, general and administrative |
|
$ |
4,513 |
|
$ |
421 |
|
$ |
9,315 |
|
$ |
116 |
|
$ |
5,670 |
|
$ |
20,035 |
Note 1: |
Checkpoint results for five months ended May 31, 2025 due to deconsolidation as a result of acquisition by Sun Pharma (see Note 3). |
Note 2: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations. |
Note 3: |
Segment activity consists of MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
|