Company: CNTB
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001835268-25-000052
Chunk: 24

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 as of June 30, 2025 or December 31, 2024. The disclosures regarding uncertain tax positions included in our 2024 Annual Report continue to be accurate for the three and six months ended June 30, 2025.On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law, introducing significant U.S. tax changes. Key provisions of the OBBBA include changes to bonus depreciation, capitalized research and development expenditures and interest deductibility. The Company does not expect the OBBBA to have a material impact on its effective tax rate or consolidated financial statements.

12. Segment Reporting

The Company operates in one operating segment: treatment of respiratory diseases. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Chief Operating Decision-Maker (the “CODM”), our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. The CODM utilizes the Company’s consolidated financial forecast, which includes product development roadmaps, as a key input to resource allocation. The CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results using our operating expenses, cash burn and cash runway.The following table provides significant segment expenses, other segment items, reported segment net loss and a reconciliation of segment net loss to the Company’s total consolidated net loss for the three and six months ended June 30, 2025 and 2024 (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024License and collaboration revenue$48 $24,116 $48 $24,116 Research and development expense(8,773)(5,348)(15,406)(14,011)General and administrative expense(4,699)(5,122)(9,513)(9,092)Other income, net580 1,231 1,809 5,201 Income tax expense(55)(30)(109)(60)Segment net loss (income)(12,899)14,847 (23,171)6,154 Reconciliation of loss (income):Adjustments and reconciling items— — — — Consolidated net (loss) income$(12,899)$14,847 $(23,171)$6,154 The Company’s long-lived tangible assets, as well as the Company’s ROU lease assets recognized on the Cond