Note 17 – Industry Segments



The Company currently operates in two reporting segments: Sexual Health Business and Research and Development. The Sexual Health Business segment consists of the Company’s commercial products: FC2 and PREBOOST®. Historically, this segment was referred to as the Commercial segment. The Research and Development segment consists of multiple drug products under clinical development. The Company’s Sexual Health Business segment will include future revenues for TADFYN®. Costs associated with the development of TADFYN® are currently included in the Research and Development segment. There are no significant inter-segment sales. We evaluate the performance of each segment based on operating profit or loss. There is no inter-segment allocation of non-operating expenses and income taxes. Our chief operating decision-maker (CODM) is Mitchell S. Steiner, M.D., our Chairman, President and Chief Executive Officer. 



The Company’s operating income (loss) by segment is as follows:







All of our net revenues, which are primarily derived from the sale of FC2, are attributed to our Sexual Health Business reporting segment. See Note 4 for additional information regarding our net revenues. Costs related to the office located in London, England are fully dedicated to FC2 and are presented as a component of the Sexual Health Business segment. Drug commercialization costs, which were previously included in the Commercial segment, are now included in the Research and Development segment to reflect the changes to the Company’s internal organization, and prior period results have been reclassified to conform to the current period presentation. The impairment of intangible assets and depreciation and amortization related to long-lived assets that are not utilized in the production of FC2 are not reported as part of the reporting segments or reviewed by the CODM. These amounts are included in Corporate in the reconciliations above. Total assets are not presented by reporting segment as they are not reviewed by the CODM when evaluating the reporting segments’ performance.