| Segment Information |
16. 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 |
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Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
15,921 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,921 |
Other revenue |
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|
40 |
|
|
— |
|
|
— |
|
|
77 |
|
|
117 |
Net revenue |
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15,961 |
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— |
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— |
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|
77 |
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|
16,038 |
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|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
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6,218 |
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|
— |
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|
— |
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— |
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|
6,218 |
Amortization of acquired intangible assets |
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1,126 |
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— |
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— |
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— |
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1,126 |
Research and development |
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— |
|
|
200 |
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|
178 |
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162 |
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|
540 |
Selling, general and administrative |
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10,109 |
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|
514 |
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|
880 |
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4,390 |
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15,893 |
Total operating expenses |
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17,453 |
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|
714 |
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1,058 |
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4,552 |
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|
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 |
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|
157 |
|
|
18 |
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|
103 |
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|
292 |
|
|
570 |
Interest expense and financing fee |
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(892) |
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— |
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— |
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(2,476) |
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(3,368) |
Gain on sale of priority review voucher, net of expenses |
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— |
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— |
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— |
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158,873 |
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158,873 |
Change in fair value of partner company derivative liability |
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— |
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— |
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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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— |
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1 |
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— |
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— |
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|
1 |
Other income (expense) |
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(3) |
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— |
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— |
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1,045 |
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|
1,042 |
Total other income (expense) |
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(738) |
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19 |
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|
103 |
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150,649 |
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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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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) |
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$ |
(2,230) |
|
$ |
(695) |
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$ |
(955) |
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$ |
141,042 |
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$ |
137,162 |
Attributable to non-controlling interests |
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(26,789) |
Net income attributable to Fortress |
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$ |
110,373 |
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Three Months Ended March 31, 2026 |
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Journey |
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Avenue |
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Mustang |
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Fortress1 |
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Consolidated |
Intersegment activity2: |
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Research and development |
|
$ |
— |
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$ |
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 |
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$ |
— |
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$ |
— |
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$ |
— |
|
$ |
1,046 |
|
$ |
1,046 |
Segment assets |
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$ |
91,534 |
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$ |
2,468 |
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$ |
16,582 |
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$ |
246,290 |
|
$ |
356,874 |
Stock-based compensation - Research & development |
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$ |
— |
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$ |
14 |
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$ |
— |
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$ |
9 |
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$ |
23 |
Stock-based compensation - Selling, general and administrative |
|
$ |
989 |
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$ |
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 |
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Journey |
|
Avenue |
|
Checkpoint |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
13,139 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
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$ |
— |
|
$ |
13,139 |
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Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
4,790 |
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— |
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— |
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— |
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— |
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|
4,790 |
Amortization of acquired intangible assets |
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1,065 |
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— |
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— |
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— |
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— |
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|
1,065 |
Research and development |
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|
39 |
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|
411 |
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3,788 |
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(964) |
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|
664 |
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|
3,938 |
Selling, general and administrative |
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10,569 |
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1,494 |
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7,361 |
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1,217 |
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5,022 |
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|
25,663 |
Total operating expenses |
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16,463 |
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|
1,905 |
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11,149 |
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|
253 |
|
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5,686 |
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|
35,456 |
Loss from operations |
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(3,324) |
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(1,905) |
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(11,149) |
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(253) |
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(5,686) |
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(22,317) |
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Interest income |
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|
149 |
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|
32 |
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|
1 |
|
|
100 |
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|
208 |
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|
490 |
Interest expense and financing fee |
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(891) |
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|
— |
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— |
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— |
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(1,914) |
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(2,805) |
Gain (loss) on common stock warrant liabilities |
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|
— |
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|
15 |
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(62) |
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— |
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— |
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(47) |
Other expense |
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(7) |
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— |
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(2) |
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— |
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(3) |
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(12) |
Total other income (expense) |
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(749) |
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|
47 |
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(63) |
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|
100 |
|
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(1,709) |
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(2,374) |
Segment net loss |
|
$ |
(4,073) |
|
$ |
(1,858) |
|
$ |
(11,212) |
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$ |
(153) |
|
$ |
(7,395) |
|
$ |
(24,691) |
Attributable to non-controlling interests |
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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: |
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Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
— |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
117 |
|
$ |
178 |
|
$ |
279 |
|
$ |
(573) |
|
$ |
— |
Other Significant Items: |
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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). |
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