| Schedule of Segment Information |
The Company’s reportable segments for operating income (loss) for the years ending December 31, 2025 and 2024 consist of the following:
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Year Ended December 31, 2025 |
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Journey |
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Avenue |
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Checkpoint1 |
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Mustang |
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Fortress2 |
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Consolidated |
Product revenue, net |
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$ |
61,239 |
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$ |
— |
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$ |
— |
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$ |
— |
|
$ |
— |
|
$ |
61,239 |
Other revenue |
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619 |
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|
1,404 |
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— |
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— |
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— |
|
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2,023 |
Net revenue |
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61,858 |
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1,404 |
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— |
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— |
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— |
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63,262 |
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Cost of goods - (excluding amortization of acquired intangible assets) |
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20,924 |
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— |
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— |
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— |
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— |
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20,924 |
Amortization of acquired intangible assets |
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4,258 |
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— |
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— |
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— |
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— |
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4,258 |
Research and development |
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480 |
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1,037 |
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10,775 |
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(1,516) |
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1,125 |
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11,901 |
Selling, general and administrative |
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44,368 |
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3,450 |
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27,263 |
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3,948 |
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17,371 |
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96,400 |
Total operating expenses |
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70,030 |
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4,487 |
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38,038 |
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2,432 |
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18,496 |
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133,483 |
Loss from operations |
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(8,172) |
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(3,083) |
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(38,038) |
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(2,432) |
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(18,496) |
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(70,221) |
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Interest income |
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589 |
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121 |
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90 |
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511 |
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1,174 |
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2,485 |
Interest expense and financing fee |
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(3,698) |
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— |
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— |
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— |
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(6,408) |
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(10,106) |
Gain (loss) on common stock warrant liabilities |
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— |
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15 |
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(108) |
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— |
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(305) |
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(398) |
Gain from deconsolidation of subsidiary |
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— |
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— |
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— |
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— |
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27,127 |
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27,127 |
Other expense |
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(90) |
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— |
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(3) |
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— |
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17,671 |
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17,578 |
Total other income (expense) |
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(3,199) |
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136 |
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(21) |
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511 |
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39,259 |
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36,686 |
Income (loss) before income tax expense |
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(11,371) |
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(2,947) |
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(38,059) |
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(1,921) |
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20,763 |
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(33,535) |
Income tax expense (benefit) |
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60 |
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— |
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— |
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— |
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(680) |
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(620) |
Segment net income (loss) |
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$ |
(11,431) |
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$ |
(2,947) |
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$ |
(38,059) |
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$ |
(1,921) |
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$ |
21,443 |
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$ |
(32,915) |
Attributable to non-controlling interests |
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39,730 |
Net income attributable to Fortress |
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$ |
6,815 |
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Intersegment activity3: |
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Research and development |
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$ |
— |
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$ |
326 |
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$ |
— |
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$ |
523 |
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$ |
(849) |
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$ |
— |
Selling, general and administrative |
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$ |
— |
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$ |
304 |
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$ |
261 |
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$ |
644 |
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$ |
(1,209) |
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$ |
— |
Other Significant Items: |
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Change in fair value of equity method investment accounted for at fair value within other income |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
15,075 |
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$ |
15,075 |
Segment assets |
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$ |
94,589 |
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$ |
2,931 |
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$ |
— |
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$ |
17,593 |
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$ |
70,435 |
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$ |
185,548 |
Stock-based compensation - Research & development |
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$ |
— |
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$ |
124 |
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$ |
4,782 |
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$ |
(10) |
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$ |
1,371 |
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$ |
6,267 |
Stock-based compensation - Selling, general and administrative |
|
$ |
6,288 |
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$ |
541 |
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$ |
9,315 |
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$ |
139 |
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$ |
6,189 |
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$ |
22,472 |
Note 1: Checkpoint results through May 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: |
Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
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Year Ended December 31, 2024 |
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Journey |
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Avenue |
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Checkpoint |
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Mustang |
|
Fortress1 |
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Consolidated |
Product revenue, net |
|
$ |
55,134 |
|
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
55,134 |
Collaboration revenue |
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— |
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— |
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— |
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— |
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1,500 |
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1,500 |
Revenue - related party |
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— |
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— |
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41 |
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— |
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— |
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41 |
Other revenue |
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1,000 |
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— |
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— |
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— |
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— |
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|
1,000 |
Net revenue |
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56,134 |
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— |
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41 |
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— |
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1,500 |
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57,675 |
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Cost of goods - (excluding amortization of acquired intangible assets) |
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20,879 |
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— |
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— |
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— |
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— |
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20,879 |
Amortization of acquired intangible assets |
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3,424 |
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— |
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— |
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— |
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— |
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3,424 |
Research and development |
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9,857 |
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6,645 |
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36,152 |
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8,418 |
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(4,443) |
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56,629 |
Research and development - licenses acquired |
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— |
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— |
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— |
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— |
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|
252 |
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|
252 |
Selling, general and administrative |
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40,204 |
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4,638 |
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20,063 |
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4,135 |
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18,691 |
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87,731 |
Loss recovery |
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(4,553) |
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— |
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— |
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— |
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— |
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(4,553) |
Asset impairment |
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— |
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— |
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— |
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3,692 |
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— |
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3,692 |
Total operating expenses |
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69,811 |
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11,283 |
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56,215 |
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16,245 |
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14,500 |
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168,054 |
Loss from operations |
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(13,677) |
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(11,283) |
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(56,174) |
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(16,245) |
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(13,000) |
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(110,379) |
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Interest income |
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|
757 |
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|
176 |
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11 |
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|
184 |
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1,555 |
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2,683 |
Interest expense and financing fee |
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(2,700) |
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— |
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— |
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(5) |
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(10,822) |
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(13,527) |
Gain (loss) on common stock warrant liabilities |
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1,125 |
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(589) |
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(73) |
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— |
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(1,101) |
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(638) |
Other income (expense) |
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(116) |
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— |
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(4) |
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|
314 |
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1,124 |
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1,318 |
Total other income (expense) |
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(934) |
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(413) |
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(66) |
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|
493 |
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(9,244) |
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(10,164) |
Loss before income tax expense |
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(14,611) |
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(11,696) |
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(56,240) |
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(15,752) |
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(22,244) |
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(120,543) |
Income tax expense |
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61 |
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— |
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— |
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— |
|
|
251 |
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|
312 |
Segment net loss |
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$ |
(14,672) |
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$ |
(11,696) |
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$ |
(56,240) |
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$ |
(15,752) |
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$ |
(22,495) |
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$ |
(120,855) |
Attributable to non-controlling interests |
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74,858 |
Net loss attributable to Fortress |
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$ |
(45,997) |
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Intersegment activity2: |
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Research and development |
|
$ |
— |
|
$ |
329 |
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$ |
7,638 |
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$ |
861 |
|
$ |
(8,828) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
331 |
|
$ |
1,495 |
|
$ |
579 |
|
$ |
(2,405) |
|
$ |
— |
Other Significant Items: |
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Depreciation expense |
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$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
671 |
|
$ |
369 |
|
$ |
1,040 |
Additions to intangible assets |
|
$ |
15,000 |
|
$ |
— |
|
$ |
— |
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$ |
— |
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$ |
— |
|
$ |
15,000 |
Segment assets |
|
$ |
80,241 |
|
$ |
2,672 |
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$ |
7,471 |
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$ |
9,308 |
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$ |
44,531 |
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$ |
144,223 |
Stock-based compensation - Research & development |
|
$ |
508 |
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$ |
269 |
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$ |
5,248 |
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$ |
(650) |
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$ |
1,746 |
|
$ |
7,121 |
Stock-based compensation - Selling, general and administrative |
|
$ |
5,590 |
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$ |
967 |
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$ |
10,004 |
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$ |
200 |
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$ |
8,737 |
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$ |
25,498 |
Note 1: Includes Fortress and private subsidiaries primarily funded by Fortress: Cellvation, Cyprium, Helocyte, Oncogenuity and Urica; and intercompany eliminations.
Note 2: |
Intersegment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress, see Note 16. |
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