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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

The Company operates and manages its business as one reportable segment and one operating segment, which is the business of discovering, developing and commercializing therapies derived from or incorporating genome-editing technology. The Company's chief operating decision maker, or CODM, is the chief executive officer. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net loss that is also reported on the consolidated statements of operations.

The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. All material long-lived assets are located in the United States. Long-lived assets consist of property and equipment, net, and operating lease right-of-use assets.

The CODM uses consolidated net loss to evaluate the Company's spend and monitor budget versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing resource allocation across the organization.

Factors used in determining the reportable segment include the nature of the Company's operating activities, the organizational and reporting structure and the type of information reviewed by the CODM to allocate resources and evaluate financial performance. The accounting policies of the segment are the same as those described in Note 2 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K.

The following table presents reportable segment profit and loss, including significant expense categories, attributable to the Company's reportable segment for the periods presented:

 

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue1:

 

 

 

 

 

 

 

 

 

Collaboration revenue

 

$

35,000

 

 

$

370,000

 

 

$

436

 

Grant revenue

 

 

2,314

 

 

 

1,206

 

 

 

762

 

Less2:

 

 

 

 

 

 

 

 

 

Research and development expense3

 

 

262,427

 

 

 

330,121

 

 

 

397,067

 

General and administrative expense4

 

 

25,453

 

 

 

32,589

 

 

 

45,012

 

Collaboration expense, net

 

 

110,250

 

 

 

130,250

 

 

 

110,250

 

Stock-based compensation expense

 

 

86,567

 

 

 

81,028

 

 

 

97,947

 

Depreciation expense

 

 

19,183

 

 

 

19,756

 

 

 

24,083

 

Other income, net5

 

 

(103,901

)

 

 

(71,816

)

 

 

(22,661

)

Provision (benefit) for income taxes

 

 

3,587

 

 

 

2,888

 

 

 

(325

)

Segment net income

 

 

(366,252

)

 

 

(153,610

)

 

 

(650,175

)

Reconciliation of profit or loss:

 

 

 

 

 

 

 

 

 

Adjustments or reconciling items

 

 

—

 

 

 

—

 

 

 

—

 

Consolidated net loss

 

 

(366,252

)

 

 

(153,610

)

 

 

(650,175

)

 

(1) Collaboration revenue for the years ended December 31, 2024, 2023 and 2022 is related to our license agreements and collaborations with Vertex, as further described in Note 8 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K. Collaboration revenue is attributed to the CRISPR Therapeutics AG entity, which is domiciled in Switzerland.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3) Research and development expense for the years ended December 31, 2024, 2023 and 2022 is net of $47.9 million, $46.4 million, and $54.0 million of stock-based compensation expense, respectively, and $10.3 million, $10.9 million, and $10.6 million of depreciation expense, respectively. For the year ended December 31, 2024, the Company recorded a non-cash adjustment of $4.8 million related to an option expiration which was recognized as a benefit to research and development expense.

(4) General and administrative expense for the years ended December 31, 2024, 2023 and 2022 is net of $38.6 million, $34.7 million, and $44.0 million of stock-based compensation expense, respectively, and $8.9 million, $8.9 million, and $13.5 million of depreciation expense, respectively.

(5) Other income, net, consists primarily of interest income on investments, as further described in Note 3 of the notes to the consolidated financial statements included in this Annual Report on Form 10-K. For the years ended December 31, 2024, 2023 and 2022, the Company recognized interest income of $104.3 million, $76.4 million, and $23.3 million, respectively.