Segments | Segments The Company's CODM assesses the operating performance of and allocates resources for several operating segments using Segment Adjusted EBITDA. Management believes this financial metric is a key indicator of operating results since it excludes noncash revenues and expenses that are not reflective of the underlying business performance of an individual enterprise. The Company defines Segment Adjusted EBITDA as net income (loss) before (i) interest expense, (ii) income tax expense or benefit, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) loss on settlement agreements where noncash consideration is paid, (vi) adjustments for accrued bonuses paid in equity awards, (vii) gain or loss on disposals of assets, (viii) loss on impairment of goodwill and other noncurrent assets, (ix) equity in net loss of affiliates, and (x) recognition of previously deferred revenue associated with upfront and milestone payments as well as cash outflows from capital expenditures and investments in affiliates, but includes proceeds from the sale of assets in the period sold. During the nine months ended September 30, 2021, the Company modified the definition of Segment Adjusted EBITDA to exclude the gain or loss on disposals of assets and include proceeds from the sale of assets in the period sold. Segment Adjusted EBITDA for the three and nine months ended September 30, 2020 was restated to reflect this change. Because the Company uses Segment Adjusted EBITDA as its primary measure of segment performance, it has included this measure in its discussion of segment operating results. The Company has also disclosed revenues from external customers and intersegment revenues for each reportable segment. Corporate expenses are not allocated to the segments and are managed at a consolidated level. The CODM does not use total assets by segment to evaluate segment performance or allocate resources, and accordingly, these amounts are not required to be disclosed. The Company's segment presentation excludes amounts related to the businesses included in the Transactions and the operations of MBP Titan which are reported as discontinued operations (Note 3). For the three and nine months ended September 30, 2021, the Company's reportable segments were (i) Biopharmaceuticals, (ii) Exemplar, and (iii) Trans Ova. These identified reportable segments met the quantitative thresholds to be reported separately for the nine months ended September 30, 2021. See Note 2 for a description of Biopharmaceuticals. See Note 1 for a description of Exemplar and Trans Ova. Segment Adjusted EBITDA by reportable segment was as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Biopharmaceuticals $ (12,661) $ (8,761) $ (34,055) $ (26,106) Exemplar 1,617 1,654 5,312 2,511 Trans Ova (2,552) (251) 15,881 7,417 Segment Adjusted EBITDA for reportable segments $ (13,596) $ (7,358) $ (12,862) $ (16,178) The table below reconciles Segment Adjusted EBITDA for reportable segments to consolidated net loss from continuing operations before income taxes: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Segment Adjusted EBITDA for reportable segments $ (13,596) $ (7,358) $ (12,862) $ (16,178) Remove cash paid for capital expenditures, net of proceeds from sale of assets, and cash paid for investments in affiliates 1,962 244 3,360 3,395 Add recognition of previously deferred revenue associated with upfront and milestone payments 1,163 7,132 1,849 25,178 Other expenses: Interest expense (4,799) (4,646) (14,005) (13,830) Depreciation and amortization (3,399) (3,786) (10,442) (11,364) Loss on disposals of assets (318) (615) (553) (1,593) Impairment losses — (920) (543) (920) Stock-based compensation expense (2,490) (4,628) (11,462) (15,249) Adjustment related to accrued bonuses paid in equity awards — — — 2,833 Equity in net loss of affiliates — (523) (3) (1,125) Other (5) 4 (19) 16 Unallocated corporate costs (7,166) (10,452) (25,412) (29,102) Eliminations (1,237) (2,038) (1,812) (6,282) Consolidated net loss from continuing operations before income taxes $ (29,885) $ (27,586) $ (71,904) $ (64,221) Revenues by reportable segment were as follows: Three Months Ended September 30, 2021 Biopharmaceuticals Exemplar Trans Ova Total Revenues from external customers $ 129 $ 3,204 $ 18,228 $ 21,561 Intersegment revenues 1,141 — 126 1,267 Total segment revenues $ 1,270 $ 3,204 $ 18,354 $ 22,828 Three Months Ended September 30, 2020 Biopharmaceuticals Exemplar Trans Ova Total Revenues from external customers $ 5,381 $ 2,974 $ 15,228 $ 23,583 Intersegment revenues 1,919 — 55 1,974 Total segment revenues $ 7,300 $ 2,974 $ 15,283 $ 25,557 Nine Months Ended September 30, 2021 Biopharmaceuticals Exemplar Trans Ova Total Revenues from external customers $ 723 $ 9,860 $ 69,069 $ 79,652 Intersegment revenues 1,469 — 324 1,793 Total segment revenues $ 2,192 $ 9,860 $ 69,393 $ 81,445 Nine Months Ended September 30, 2020 Biopharmaceuticals Exemplar Trans Ova Total Revenues from external customers $ 20,703 $ 7,230 $ 55,858 $ 83,791 Intersegment revenues 5,521 — 254 5,775 Total segment revenues $ 26,224 $ 7,230 $ 56,112 $ 89,566 The table below reconciles total segment revenues from reportable segments to total consolidated revenues: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total segment revenues from reportable segments $ 22,828 $ 25,557 $ 81,445 $ 89,566 Other revenues — — — 54 Elimination of intersegment revenues (1,267) (1,974) (1,793) (5,775) Total consolidated revenues $ 21,561 $ 23,583 $ 79,652 $ 83,845 As of September 30, 2021 and December 31, 2020, the Company had $4,869 and $5,908, respectively, of long-lived assets in foreign countries. The Company recognized revenues derived in foreign countries totaling $93 and $118 for the three months ended September 30, 2021 and 2020, respectively, and $443 and $481 for the nine months ended September 30, 2021 and 2020, respectively. |