XML 36 R24.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Business Segment Information
 12 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segment Information

Note 16. Business Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. The Company's operating segments were identified in fiscal 2024 and did not impact prior periods. The Company's operating segments are as follows:

Research & Development

The research and development (“R&D”) segment consists of the Company's drug development efforts. The Company's current clinical focus is in advancing FXR314 in IBD, including UC and CD. The Company plans to start a Phase 2a clinical trial in UC in the calendar year 2024. The Company released Phase 2 data for FXR314 for the treatment of MASH in April 2024 that are supportive of

ongoing development, and believes FXR314 has a commercial opportunity in MASH, most likely in combination therapy. The Company is exploring the potential for combination therapies using FXR314 and currently approved mechanisms in preclinical animal studies and its IBD disease models.

The Company's second focus is building high fidelity, 3D tissues that recapitulate key aspects of human disease. The Company uses its proprietary technology to build functional 3D human tissues that mimic key aspects of native human tissue composition, architecture, function and disease. The Company believes these attributes can enable critical complex, multicellular disease models that can be used to develop clinically effective drugs across multiple therapeutic areas.

As with the clinical development program, the Company is initially focusing on the intestine and has ongoing 3D tissue development efforts in human tissue models of UC and CD. The Company uses these models to identify new molecular targets responsible for driving the disease and to explore the mechanism of action of known drugs including FXR314 and related molecules. The Company intends to initiate drug discovery programs around these new validated targets to identify drug candidates for partnering and/or internal clinical development.

Mosaic Cell Sciences

The Mosaic Cell Sciences segment, which began operations in February 2024, consists of our Mosaic Cell Sciences division (“Mosaic”) which will serve as a key source of certain of the primary human cells that the Company utilizes in its research and development efforts. The Company believes Mosaic can help optimize its supply chain, reduce operating expenses related to cell sourcing and procurement, and ensure that the cellular raw materials it uses are of the highest quality and are derived from tissues that are ethically sourced in full compliance with state and federal guidelines. The Company intends for Mosaic to provide the Company with qualified human cells for use in its clinical research and development programs. In addition to supplying the Company with primary human cells, the Company intends for Mosaic to offer human cells for sale to life science customers, both directly and through distribution partners, which the Company expects to offset costs and over time become a profit center that offsets overall R&D spending by the Company.

Business Segment Information

The Company's R&D segment generates royalty revenue related to its IP. The R&D segment's identifiable assets are its fixed assets. The Company expects that the Mosaic segment will generate future product revenue as part of its core operations, and its identifiable assets are its fixed assets and inventory. Other Company assets are comprised of all other assets that are not distinctly identifiable to a segment, which are presented on the Company's Consolidated Balance Sheets as of March 31, 2024.

R&D segment revenues consisted of the following (in thousands):

 

Year Ended

 

 

Year Ended

 

 

March 31, 2024

 

 

March 31, 2023

 

R&D

 

 

 

 

 

Royalty revenue

$

109

 

 

$

370

 

Mosaic

 

 

 

 

 

Product revenue

 

—

 

 

 

—

 

Total segment revenue

$

109

 

 

$

370

 

Total company revenue

$

109

 

 

$

370

 

 

Operating segment expenses consisted of the following (in thousands):

 

Year Ended

 

 

Year Ended

 

 

March 31, 2024

 

 

March 31, 2023

 

R&D

$

4,404

 

 

$

8,885

 

Mosaic

 

1,094

 

 

 

—

 

Total segment operating expenses

$

5,498

 

 

$

8,885

 

Selling, general, and administrative expenses

 

9,697

 

 

 

9,216

 

Total company operating expenses

$

15,195

 

 

$

18,101

 

 

Operating segment assets consisted of the following (in thousands):

 

March 31, 2024

 

 

March 31, 2023

 

R&D

 

 

 

 

 

Fixed assets, net

$

423

 

 

$

902

 

Mosaic

 

 

 

 

 

Fixed assets, net

 

183

 

 

 

—

 

Inventory

 

297

 

 

 

—

 

Total segment assets

$

903

 

 

$

902

 

Other company assets

 

5,446

 

 

 

19,411

 

Total company assets

$

6,349

 

 

$

20,313