| Segment Information |
16. Segment Information
The Company’s reportable segments for operating income (loss) for the three and nine months ended September 30, 2025 and 2024 consist of the following ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
242 |
|
$ |
(304) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2024 |
|
Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
14,629 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
14,629 |
Revenue - related party |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Net revenue |
|
|
14,629 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
14,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
|
|
4,471 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,471 |
Intangible assets amortization |
|
|
814 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
814 |
Research and development |
|
|
842 |
|
|
2,327 |
|
|
6,366 |
|
|
57 |
|
|
(146) |
|
|
9,446 |
Selling, general and administrative |
|
|
11,396 |
|
|
829 |
|
|
3,358 |
|
|
1,400 |
|
|
5,010 |
|
|
21,993 |
Total operating expenses |
|
|
17,523 |
|
|
3,156 |
|
|
9,724 |
|
|
1,457 |
|
|
4,864 |
|
|
36,724 |
Loss from operations |
|
|
(2,894) |
|
|
(3,156) |
|
|
(9,724) |
|
|
(1,457) |
|
|
(4,864) |
|
|
(22,095) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
188 |
|
|
51 |
|
|
2 |
|
|
48 |
|
|
300 |
|
|
589 |
Interest expense and financing fee |
|
|
(758) |
|
|
— |
|
|
— |
|
|
(1) |
|
|
(5,450) |
|
|
(6,209) |
Gain on common stock warrant liabilities |
|
|
— |
|
|
18 |
|
|
— |
|
|
— |
|
|
1 |
|
|
19 |
Other income (expense) |
|
|
1,074 |
|
|
— |
|
|
(3) |
|
|
— |
|
|
— |
|
|
1,071 |
Total other income (expense) |
|
|
504 |
|
|
69 |
|
|
(1) |
|
|
47 |
|
|
(5,149) |
|
|
(4,530) |
Loss before income tax expense |
|
|
(2,390) |
|
|
(3,087) |
|
|
(9,725) |
|
|
(1,410) |
|
|
(10,013) |
|
|
(26,625) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
69 |
|
|
69 |
Segment net loss |
|
$ |
(2,390) |
|
$ |
(3,087) |
|
$ |
(9,725) |
|
$ |
(1,410) |
|
$ |
(10,082) |
|
$ |
(26,694) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(12,867) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
— |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Research and development - licenses acquired |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
125 |
|
$ |
242 |
|
$ |
(429) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
64,044 |
|
|
2,625 |
|
|
5,179 |
|
|
7,193 |
|
|
48,044 |
|
$ |
127,085 |
Stock-based compensation - Research & development |
|
$ |
150 |
|
$ |
89 |
|
$ |
543 |
|
$ |
(10) |
|
$ |
444 |
|
$ |
1,216 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,490 |
|
$ |
242 |
|
$ |
1,068 |
|
$ |
52 |
|
$ |
2,505 |
|
$ |
5,357 |
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 PIK Dividends and MSA and equity 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 |
|
|
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 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment activity3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
188 |
|
$ |
— |
|
$ |
125 |
|
$ |
(313) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
242 |
|
$ |
261 |
|
$ |
519 |
|
$ |
(1,022) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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: |
Segment activity consists of PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress (see Note 15). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
|
Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
42,514 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
42,514 |
Revenue - related party |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
|
— |
|
|
41 |
Net revenue |
|
|
42,514 |
|
|
— |
|
|
41 |
|
|
— |
|
|
— |
|
|
42,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
|
|
16,199 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16,199 |
Intangible assets amortization |
|
|
2,443 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,443 |
Research and development |
|
|
9,639 |
|
|
6,080 |
|
|
19,343 |
|
|
8,221 |
|
|
3,658 |
|
|
46,941 |
Selling, general and administrative |
|
|
30,144 |
|
|
3,607 |
|
|
8,043 |
|
|
4,358 |
|
|
14,715 |
|
|
60,867 |
Asset impairment |
|
|
— |
|
|
— |
|
|
— |
|
|
2,649 |
|
|
— |
|
|
2,649 |
Total operating expenses |
|
|
58,425 |
|
|
9,687 |
|
|
27,386 |
|
|
15,228 |
|
|
18,373 |
|
|
129,099 |
Loss from operations |
|
|
(15,911) |
|
|
(9,687) |
|
|
(27,345) |
|
|
(15,228) |
|
|
(18,373) |
|
|
(86,544) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
566 |
|
|
152 |
|
|
9 |
|
|
314 |
|
|
1,116 |
|
|
2,157 |
Interest expense and financing fee |
|
|
(1,869) |
|
|
— |
|
|
— |
|
|
118 |
|
|
(9,182) |
|
|
(10,933) |
Gain (loss) on common stock warrant liabilities |
|
|
— |
|
|
(759) |
|
|
— |
|
|
— |
|
|
181 |
|
|
(578) |
Other income (expense) |
|
|
1,021 |
|
|
157 |
|
|
(4) |
|
|
(4) |
|
|
164 |
|
|
1,334 |
Total other income (expense) |
|
|
(282) |
|
|
(450) |
|
|
5 |
|
|
428 |
|
|
(7,721) |
|
|
(8,020) |
Loss before income tax expense |
|
|
(16,193) |
|
|
(10,137) |
|
|
(27,340) |
|
|
(14,800) |
|
|
(26,094) |
|
|
(94,564) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax refund |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(24) |
|
|
(24) |
Segment net loss |
|
$ |
(16,193) |
|
$ |
(10,137) |
|
$ |
(27,340) |
|
$ |
(14,800) |
|
$ |
(26,070) |
|
$ |
(94,540) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(39,232) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
188 |
|
$ |
— |
|
$ |
188 |
|
$ |
(376) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
372 |
|
$ |
1,090 |
|
$ |
379 |
|
$ |
(1,841) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
64,044 |
|
$ |
2,625 |
|
$ |
5,179 |
|
$ |
7,193 |
|
$ |
48,044 |
|
$ |
127,085 |
Stock-based compensation - Research & development |
|
$ |
466 |
|
$ |
179 |
|
$ |
1,629 |
|
$ |
(650) |
|
$ |
1,319 |
|
$ |
2,943 |
Stock-based compensation - Selling, general and administrative |
|
$ |
4,254 |
|
$ |
535 |
|
$ |
1,862 |
|
$ |
150 |
|
$ |
6,685 |
|
$ |
13,486 |
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 PIK Dividends and MSA and equity fees paid by the subsidiaries to Fortress (see Note 15).
|