v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 10. Segment Information

The Company is comprised of one reportable segment, the Company operations. As of September 30, 2025, the Company operations segment has not generated any product revenue since inception, as it does not yet have approved products for sale. However, the Company operations segment anticipates future revenue generation upon the successful development and commercialization of product candidates either independently or through partnerships.

The Company expects to primarily generate revenue in North America, with its long-lived assets also concentrated in this region, and manages its business activities on a consolidated basis. Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker (CODM), which is the Company’s Chief Executive Officer (CEO). The CODM views the Company’s operations as a single operating segment which is the business of discovering and developing products for individuals with serious and rare skin diseases.

The Company’s significant segment expenses that are regularly provided to the CODM are related to:

•
Research and Development Expenses: These expenses include costs incurred in conducting research and development activities for the specific clinical trials including facilities costs, license fee and other costs incurred in connection with preclinical research and development activities. Research and development also encompass non-program specific costs such as salaries and stock-based compensation costs, third party consulting fees, and other related costs.
•
General and Administrative Expenses: These expenses include costs associated with the overall administration and management of the Company, including salaries and benefits for administrative personnel, professional service fees (e.g., accounting and legal services) and other office expenses.

The CODM assesses performance for the Company operations segment and decides how to allocate resources based on net income or loss that is also reported on the income statement as consolidated net income or loss and the measure of segment assets as reported on the balance sheet as total consolidated assets. Net income or loss is used to monitor budget versus actual results as well as to assess the general performance of the segment in a given period.

The following table reconciles segment direct profit or loss to the Company’s consolidated results:

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(in thousands)

2025

 

 

2024

 

 

2025

 

 

2024

 

Research and development:

 

 

 

 

 

 

 

 

 

 

 

QTORIN rapamycin for microcystic LM

$

1,103

 

 

$

651

 

 

$

3,492

 

 

$

1,078

 

QTORIN rapamycin for microcystic LM - Government grant income

 

(53

)

 

 

(14

)

 

 

(392

)

 

 

(14

)

QTORIN rapamycin for cutaneous VM

 

827

 

 

 

73

 

 

 

1,527

 

 

 

73

 

QTORIN CMC

 

2,265

 

 

 

847

 

 

 

4,554

 

 

 

1,000

 

Non-program specific and unallocated research and development expenses:

 

 

 

 

 

 

 

 

 

 

 

Salaries and stock-based compensation

 

1,658

 

 

 

1,021

 

 

 

4,481

 

 

 

2,373

 

Consultants

 

414

 

 

 

355

 

 

 

1,046

 

 

 

705

 

Other

 

314

 

 

 

249

 

 

 

1,012

 

 

 

393

 

Total research and development

$

6,528

 

 

$

3,182

 

 

$

15,720

 

 

$

5,608

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

Salaries and stock-based compensation

$

2,151

 

 

$

682

 

 

$

5,348

 

 

$

1,439

 

Consultants

 

587

 

 

 

908

 

 

 

2,497

 

 

 

2,186

 

Other

 

911

 

 

 

290

 

 

 

3,733

 

 

 

496

 

Total general and administrative

$

3,649

 

 

$

1,880

 

 

$

11,578

 

 

$

4,121

 

Loss from operations

$

(10,177

)

 

$

(5,062

)

 

$

(27,298

)

 

$

(9,729

)