| Segment Information |
16. Segment Information
The Company’s reportable segments for operating income (loss) for the three and six months ended June 30, 2026 and 2025 consist of the following ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
17,839 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
17,839 |
Other revenue |
|
|
671 |
|
|
— |
|
|
— |
|
|
208 |
|
|
879 |
Net revenue |
|
|
18,510 |
|
|
— |
|
|
— |
|
|
208 |
|
|
18,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
|
|
6,143 |
|
|
— |
|
|
— |
|
|
— |
|
|
6,143 |
Intangible assets amortization |
|
|
969 |
|
|
— |
|
|
— |
|
|
— |
|
|
969 |
Research and development |
|
|
54 |
|
|
247 |
|
|
224 |
|
|
280 |
|
|
805 |
Selling, general and administrative |
|
|
10,888 |
|
|
460 |
|
|
946 |
|
|
8,513 |
|
|
20,807 |
Total operating expenses |
|
|
18,054 |
|
|
707 |
|
|
1,170 |
|
|
8,793 |
|
|
28,724 |
Income (loss) from operations |
|
|
456 |
|
|
(707) |
|
|
(1,170) |
|
|
(8,585) |
|
|
(10,006) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
154 |
|
|
17 |
|
|
98 |
|
|
1,312 |
|
|
1,581 |
Interest expense and financing fee |
|
|
(906) |
|
|
— |
|
|
— |
|
|
(570) |
|
|
(1,476) |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
82 |
|
|
82 |
Other income (expense) |
|
|
(1) |
|
|
— |
|
|
— |
|
|
10,742 |
|
|
10,741 |
Total other income (expense) |
|
|
(753) |
|
|
17 |
|
|
98 |
|
|
11,566 |
|
|
10,928 |
Income (loss) before income tax expense |
|
|
(297) |
|
|
(690) |
|
|
(1,072) |
|
|
2,981 |
|
|
922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
15 |
|
|
— |
|
|
— |
|
|
305 |
|
|
320 |
Segment net income (loss) |
|
$ |
(312) |
|
$ |
(690) |
|
$ |
(1,072) |
|
$ |
2,676 |
|
$ |
602 |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,070) |
Net loss attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(468) |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity method investment accounted for at fair value within other income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
10,745 |
|
$ |
10,745 |
Segment assets |
|
$ |
98,356 |
|
$ |
1,976 |
|
$ |
15,613 |
|
$ |
200,770 |
|
$ |
316,715 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
15 |
|
$ |
— |
|
$ |
20 |
|
$ |
35 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,437 |
|
$ |
46 |
|
$ |
21 |
|
$ |
1,339 |
|
$ |
2,843 |
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). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Product revenue, net |
|
$ |
15,009 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,009 |
Other revenue |
|
|
— |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,404 |
Net revenue |
|
|
15,009 |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
16,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
|
|
4,939 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,939 |
Intangible assets amortization |
|
|
1,064 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,064 |
Research and development |
|
|
— |
|
|
192 |
|
|
6,986 |
|
|
98 |
|
|
850 |
|
|
8,126 |
Selling, general and administrative |
|
|
11,942 |
|
|
915 |
|
|
19,902 |
|
|
787 |
|
|
5,211 |
|
|
38,757 |
Total operating expenses |
|
|
17,945 |
|
|
1,107 |
|
|
26,888 |
|
|
885 |
|
|
6,061 |
|
|
52,886 |
Income (loss) from operations |
|
|
(2,936) |
|
|
297 |
|
|
(26,888) |
|
|
(885) |
|
|
(6,061) |
|
|
(36,473) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
138 |
|
|
31 |
|
|
89 |
|
|
123 |
|
|
241 |
|
|
622 |
Interest expense and financing fee |
|
|
(937) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,581) |
|
|
(2,518) |
Gain (loss) on common stock warrant liabilities |
|
|
— |
|
|
1 |
|
|
(46) |
|
|
— |
|
|
(305) |
|
|
(350) |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
27,127 |
|
|
27,127 |
Other expense |
|
|
(61) |
|
|
— |
|
|
(1) |
|
|
— |
|
|
— |
|
|
(62) |
Total other income (expense) |
|
|
(860) |
|
|
32 |
|
|
42 |
|
|
123 |
|
|
25,482 |
|
|
24,819 |
Segment net income (loss) |
|
$ |
(3,796) |
|
$ |
329 |
|
$ |
(26,846) |
|
$ |
(762) |
|
$ |
19,421 |
|
$ |
(11,654) |
Net loss attributable to NCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,140 |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,486 |
Note 1: |
Checkpoint results for two 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, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Intersegment activity3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
63 |
|
$ |
— |
|
$ |
63 |
|
$ |
(125) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
63 |
|
$ |
83 |
|
$ |
63 |
|
$ |
(208) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
81,158 |
|
$ |
4,161 |
|
$ |
— |
|
$ |
13,046 |
|
$ |
61,529 |
|
$ |
159,895 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
31 |
|
$ |
4,093 |
|
$ |
— |
|
$ |
627 |
|
$ |
4,751 |
Stock-based compensation - Selling, general and administrative |
|
$ |
1,336 |
|
$ |
144 |
|
$ |
8,048 |
|
$ |
45 |
|
$ |
2,469 |
|
$ |
12,042 |
Note 1: |
Checkpoint results for two 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, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
Note 3: |
Segment activity consists of MSA fees paid by the subsidiaries to Fortress (see Note 15). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Product revenue, net |
|
$ |
33,760 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
33,760 |
Other revenue |
|
|
711 |
|
|
— |
|
|
— |
|
|
285 |
|
|
996 |
Net revenue |
|
|
34,471 |
|
|
— |
|
|
— |
|
|
285 |
|
|
34,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods - (excluding amortization of acquired intangible assets) |
|
|
12,361 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,361 |
Amortization of acquired intangible assets |
|
|
2,095 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,095 |
Research and development |
|
|
54 |
|
|
447 |
|
|
402 |
|
|
442 |
|
|
1,345 |
Selling, general and administrative |
|
|
20,997 |
|
|
974 |
|
|
1,826 |
|
|
12,902 |
|
|
36,699 |
Total operating expenses |
|
|
35,507 |
|
|
1,421 |
|
|
2,228 |
|
|
13,344 |
|
|
52,500 |
Loss from operations |
|
|
(1,036) |
|
|
(1,421) |
|
|
(2,228) |
|
|
(13,059) |
|
|
(17,744) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
311 |
|
|
35 |
|
|
201 |
|
|
1,604 |
|
|
2,151 |
Interest expense and financing fee |
|
|
(1,798) |
|
|
— |
|
|
— |
|
|
(3,047) |
|
|
(4,845) |
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 (loss) on common stock warrant liabilities |
|
|
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
82 |
|
|
82 |
Other income (expense) |
|
|
(4) |
|
|
— |
|
|
— |
|
|
11,787 |
|
|
11,783 |
Total other income (expense) |
|
|
(1,491) |
|
|
36 |
|
|
201 |
|
|
162,214 |
|
|
160,960 |
Income (loss) before income tax expense |
|
|
(2,527) |
|
|
(1,385) |
|
|
(2,027) |
|
|
149,155 |
|
|
143,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
15 |
|
|
— |
|
|
— |
|
|
5,437 |
|
|
5,452 |
Segment net income (loss) |
|
$ |
(2,542) |
|
$ |
(1,385) |
|
$ |
(2,027) |
|
$ |
143,718 |
|
$ |
137,764 |
Attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27,859) |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
109,905 |
Note 1: |
Includes Fortress and private subsidiaries primarily funded by Fortress, including Cellvation, Cyprium, Helocyte, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
Journey |
|
Avenue |
|
Mustang |
|
Fortress1 |
|
Consolidated |
Intersegment activity2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
125 |
|
$ |
125 |
|
$ |
(250) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
125 |
|
$ |
125 |
|
$ |
(250) |
|
$ |
— |
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of equity method investment accounted for at fair value within other income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
11,791 |
|
$ |
11,791 |
Segment assets |
|
$ |
98,356 |
|
$ |
1,976 |
|
$ |
15,613 |
|
$ |
200,770 |
|
$ |
316,715 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
29 |
|
$ |
— |
|
$ |
31 |
|
$ |
60 |
Stock-based compensation - Selling, general and administrative |
|
$ |
2,426 |
|
$ |
93 |
|
$ |
43 |
|
$ |
2,012 |
|
$ |
4,574 |
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). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Product revenue, net |
|
$ |
28,148 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
28,148 |
Other revenue |
|
|
— |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,404 |
Net revenue |
|
|
28,148 |
|
|
1,404 |
|
|
— |
|
|
— |
|
|
— |
|
|
29,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
|
|
9,729 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,729 |
Intangible assets amortization |
|
|
2,129 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,129 |
Research and development |
|
|
39 |
|
|
603 |
|
|
10,775 |
|
|
(866) |
|
|
1,509 |
|
|
12,060 |
Selling, general and administrative |
|
|
22,511 |
|
|
2,408 |
|
|
27,263 |
|
|
2,004 |
|
|
10,238 |
|
|
64,424 |
Total operating expenses |
|
|
34,408 |
|
|
3,011 |
|
|
38,038 |
|
|
1,138 |
|
|
11,747 |
|
|
88,342 |
Loss from operations |
|
|
(6,260) |
|
|
(1,607) |
|
|
(38,038) |
|
|
(1,138) |
|
|
(11,747) |
|
|
(58,790) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
287 |
|
|
62 |
|
|
90 |
|
|
223 |
|
|
450 |
|
|
1,112 |
Interest expense and financing fee |
|
|
(1,828) |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,496) |
|
|
(5,324) |
Gain (loss) on common stock warrant liabilities |
|
|
— |
|
|
16 |
|
|
(108) |
|
|
— |
|
|
(305) |
|
|
(397) |
Gain from deconsolidation of subsidiary |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
27,127 |
|
|
27,127 |
Other expense |
|
|
(68) |
|
|
— |
|
|
(3) |
|
|
— |
|
|
(2) |
|
|
(73) |
Total other income (expense) |
|
|
(1,609) |
|
|
78 |
|
|
(21) |
|
|
223 |
|
|
23,774 |
|
|
22,445 |
Segment net income (loss) |
|
$ |
(7,869) |
|
$ |
(1,529) |
|
$ |
(38,059) |
|
$ |
(915) |
|
$ |
12,027 |
|
$ |
(36,345) |
Net loss attributable to NCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,247 |
Net income attributable to Fortress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,902 |
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, LemmaTx, Oncogenuity and Urica; and intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
Journey |
|
Avenue |
|
Checkpoint1 |
|
Mustang |
|
Fortress2 |
|
Consolidated |
Intersegment activity3: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
— |
|
$ |
125 |
|
$ |
— |
|
$ |
125 |
|
$ |
(250) |
|
$ |
— |
Selling, general and administrative |
|
$ |
— |
|
$ |
179 |
|
$ |
261 |
|
$ |
341 |
|
$ |
(573) |
|
$ |
— |
Other Significant Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
81,158 |
|
$ |
4,161 |
|
$ |
— |
|
$ |
13,046 |
|
$ |
61,529 |
|
$ |
159,895 |
Stock-based compensation - Research & development |
|
$ |
— |
|
$ |
71 |
|
$ |
4,782 |
|
$ |
(11) |
|
$ |
1,251 |
|
$ |
6,093 |
Stock-based compensation - Selling, general and administrative |
|
$ |
2,659 |
|
$ |
289 |
|
$ |
9,315 |
|
$ |
94 |
|
$ |
4,632 |
|
$ |
16,989 |
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). |
|