Segment Reporting

3 Months Ended

Mar. 31, 2025

Note 10. Segment Reporting

Operating segments are components of an enterprise for which separate financial information is available and which are evaluated by a company’s CODM in deciding how to allocate resources and to assess performance.

The Company operates and manages its business as one operating segment, which primarily focuses on the discovery and development of innovative medicines in areas of unmet medical need. The Company’s Chief Executive Officer serves as the Company’s CODM and manages and allocates resources to the operations of the Company on an entity-wide basis. Managing and allocating resources on an entity-wide basis enables the CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development projects based on unmet medical need, scientific data, probability of technical and regulatory successful development, market potential and other considerations, and, as necessary, reallocate resources among our internal research and development portfolio and external opportunities to best support the long-term growth of our business. The Company’s CODM reviews financial information on an aggregate basis for the purpose of allocating resources and evaluating financial performance, including segment net (loss) income, which is also reported on the condensed consolidated statement of operations as consolidated net (loss) income.

Segment information is as follows (dollars in thousands):


	Three Months Ended
	March 31,
	2025		2024

Revenue	$	28,321	$	254,953
Discovery department expense ⁽¹⁾		(2,583)		(2,608)
Development department expense⁽¹⁾		(14,069)		(14,825)
General and administrative expenses ⁽¹⁾		(5,535)		(9,924)
Employee wages and benefits - discovery		(2,127)		(1,654)
Employee wages and benefits - development		(5,684)		(6,592)
Employee wages and benefits - general and administrative		(3,831)		(3,689)
Stock-based compensation expense		(13,802)		(9,352)
Other segment items ⁽²⁾		82		(19)
Interest income		7,573		4,376
Income tax expense		—		(3,326)
Segment (loss) profit	$	(11,655)	$	207,340
Reconciliation of (loss) profit
Adjustments and reconciling items	$	—	$	—
Consolidated net (loss) income	$	(11,655)	$	207,340

⁽¹⁾Amounts exclude employee wages and benefits, stock-based compensation and expense allocations.

⁽²⁾Other segment items include foreign currency related income (expense) and other miscellaneous income (expense).

The accounting policies of the Company’s operating segment are the same as those described in Note 2. Summary of Significant Accounting Policies. The measure of segment assets is reported as total assets on the Company’s condensed consolidated balance sheets for the periods presented.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Protagonist Therapeutics, Inc 10-Q