Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION AND CONCENTRATIONS

v3.26.3
SEGMENT INFORMATION AND CONCENTRATIONS
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND CONCENTRATIONS

NOTE 6 – SEGMENT INFORMATION AND CONCENTRATIONS

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company considers its chief executive officer to be the Company’s CODM. The CODM manages the Company’s operations and allocates resources based on the Company’s consolidated results; therefore, the Company operates as one segment.

 

The accounting policies of the Company’s single operating and reportable segment are the same as those described in the summary of significant accounting policies. The Company’s method for measuring segment profitability includes net income (loss), which the CODM uses to assess performance and make decisions for resource allocation, consistent with the measurement principles for net income (loss) as reported on the Company’s consolidated statements of operations. The significant segment expenses regularly provided to the CODM are consistent with the operating expenses reported on the Company's condensed consolidated statements of operations. Research and development expenses are provided on a more disaggregated basis, as shown below. Other segment items consist of contract income, loss on extinguishment of debt, interest income, net, and other income (expense), net as presented on the condensed consolidated statements of operations. 

 

Information about significant segment expenses regularly provided to the CODM is as follows (in thousands):

                   
    Three Months Ended September 30,  
    (in thousands)  
    2026     2025     Change  
Research and development expenses:                        
Direct expenses – TNX-102 SL   $ 3,122     $ 33     $ 3,089  
Direct expenses – TNX-801     414       636       (222 )
Direct expenses – TNX-1500     2,601       1,887       714  
Direct expenses – TNX-1900     376       405       (29 )
Direct expenses – TNX-4200     1,039       306       733  
Direct expenses – TNX-4800     9,640       45       9,595  
Direct expenses – Other programs     796       168       628  
Internal staffing, overhead and other     7,836       5,809       2,027  
Total research & development   $ 25,824     $ 9,289     $ 16,535  

                   
    Nine Months Ended September 30,  
    (in thousands)  
    2026     2025     Change  
Research and development expenses:                        
Direct expenses – TNX-102 SL   $ 8,124     $ 2,530     $ 5,594  
Direct expenses – TNX-801     3,689       1,049       2,640  
Direct expenses – TNX-1500     7,508       3,271       4,237  
Direct expenses – TNX-1900     2,122       741       1,381  
Direct expenses – TNX-4200     1,621       730       891  
Direct expenses – TNX-4800     12,240       1,295       10,945  
Direct expenses – Other programs     3,733       1,823       1,910  
Internal staffing, overhead and other     24,417       16,106       8,311  
Total research & development   $ 63,454     $ 27,545     $ 35,909  

 

Our direct research and development expenses consist principally of external costs for clinical, nonclinical and manufacturing activities, such as fees paid to contractors, consultants and contract research organizations in connection with our development work. Included in “Internal Staffing, Overhead and Other” are overhead, supplies, research and development employee costs (including stock option expenses), travel, and regulatory and legal costs.

 

The Company had three products that accounted for $17.2 million and $37.7 million, respectively, representing 100% of total revenues during the three and nine months ended September 30, 2026. The Company had two products that accounted for $3.3 million and $7.7 million, respectively, representing 100% of total revenues during the three and nine months ended September 30, 2025.

 

As of September 30, 2026, accounts receivable from three customers accounted for 37%, 25%, and 24% of accounts receivable. As of December 31, 2025, accounts receivable from three customers accounted for 34%, 29%, and 28% of total accounts receivable.

 

For the three months ended September 30, 2026, revenues from three customers accounted for 29%, 24%, and 23% of net product revenues. For the three months ended September 30, 2025, revenues from five customers accounted for 25%, 24%, 22%, 19% and 11% of net product revenues. For the nine months ended September 30, 2026, revenues from three customers accounted for 29%, 26%, and 21% of net product revenues. For the nine months ended September 30, 2025, revenues from five customers accounted for 23%, 22%, 21%, 20% and 13% of net product revenues.