14. Segment Information The Company has two reportable segments, dermatology therapeutics and contract research. The dermatology therapeutics segment is focused on identifying, developing and commercializing innovative therapies to address significant unmet needs in medical and aesthetic dermatology and immunology. The Companys lead drug, ESKATA, is a proprietary formulation of high-concentration hydrogen peroxide topical solution that the Company is commercializing as an office-based prescription treatment for raised SKs, a common non-malignant skin tumor, and which is distributed by a wholesaler. The contract research segment earns revenue from the provision of laboratory services to clients through Confluence, the Companys wholly-owned subsidiary. Laboratory service revenue is generally evidenced by contracts with clients which are on an agreed upon fixed-price, fee-for-service basis. Corporate and other includes general and administrative expenses as well as eliminations of intercompany transactions. The Company does not report balance sheet information by segment since it is not reviewed by the chief operating decision maker, and all of the Companys tangible assets are held in the United States. The Companys results of operations by segment for the three and nine months ended September 30, 2018 and 2017 are summarized in the tables below: Dermatology Contract Corporate Total Three Months Ended September 30, 2018 Therapeutics Research and Other Company Revenue, net $ 510 $ 3,225 $ (2,107) $ 1,628 Cost of revenue 126 2,823 (1,756) 1,193 Research and development 15,931   15,931 Sales and marketing 11,366 14  11,380 General and administrative  566 6,008 6,574 Loss from operations $ (26,913) $ (178) $ (6,359) $ (33,450) Dermatology Contract Corporate Total Three Months Ended September 30, 2017 Therapeutics Research and Other Company Revenue, net $  $ 1,212 $ (528) $ 684 Cost of revenue  893 (440) 453 Research and development 10,864   10,864 Sales and marketing 3,555 2  3,557 General and administrative 72 196 4,298 4,566 Loss from operations $ (14,491) $ 121 $ (4,386) $ (18,756) Dermatology Contract Corporate Total Nine Months Ended September 30, 2018 Therapeutics Research and Other Company Revenue, net $ 3,043 $ 8,779 $ (5,400) $ 6,422 Cost of revenue 278 7,564 (4,501) 3,341 Research and development 43,472   43,472 Sales and marketing 34,996 34  35,030 General and administrative  1,557 19,398 20,955 Loss from operations $ (75,703) $ (376) $ (20,297) $ (96,376) Dermatology Contract Corporate Total Nine Months Ended September 30, 2017 Therapeutics Research and Other Company Revenue, net $  $ 1,212 $ (528) $ 684 Cost of revenue  893 (440) 453 Research and development 26,601   26,601 Sales and marketing 7,181 2  7,183 General and administrative 223 195 13,010 13,428 Loss from operations $ (34,005) $ 122 $ (13,098) $ (46,981) Foreign Subsidiary The Companys wholly-owned subsidiary, ATIL, was formed and operates in the United Kingdom. ATIL is utilized for research and development, regulatory and administrative functions and had $38 and $175 of net assets, composed principally of cash, as of September 30, 2018 and December 31, 2017, respectively. Intersegment Revenue Revenue for the contract research segment includes $2,107 and $528 for services performed on behalf of the dermatology therapeutics segment for the three months ended September 30, 2018 and 2017, respectively, and $5,400 and $528 for services performed on behalf of the dermatology therapeutics segment for the nine months ended September 30, 2018 and 2017, respectively. All intersegment revenue has been eliminated in the Companys condensed consolidated statement of operations.