NOTE 9 : SEGMENT REPORTING The Company has developed a genome editing platform and performed related research for human therapeutic and agricultural applications. The Companys Chief Operating Decision Maker (CODM) evaluates the Companys financial performance based on two reportable segments: Therapeutics and Food. The Therapeutics segment is focused on the development of products in the field of immuno-oncology and of novel products outside immuno-oncology to treat human diseases. The Food segment is focused on applying ARCUS to develop food and nutrition products through collaboration agreements with consumer-facing companies. The CODM reviews segment performance and allocates resources based upon segment revenue and segment operating loss of the Therapeutics and Food reportable segments. Segment operating loss is derived by deducting operational cash expenditures, net, from GAAP revenue. Operational cash expenditures are cash disbursements made that are directly attributable to the reportable segment (including directly attributable research and development and property, equipment, and software expenditures). For the nine months ended September 30, 2018, the Company allocated centralized research and development expenditures for early stage research, nuclease development and the purchase of general laboratory supplies to the Therapeutics and Food segments based on headcount. In January 2019, the Food segment moved into a new leased facility at Research Triangle Park, North Carolina. The Company has determined that the Food segment is no longer deriving benefit from the Companys centralized research and development expenditures, thus all these expenditures are allocated to the Therapeutics segment for the nine months ended September 30, 2019. The reportable segment and centralized research and development operational cash expenditures include cash disbursements for compensation, laboratory supplies, purchases of property, equipment, and software and procuring services from CROs, CMOs, and research organizations. Certain cost items are not allocated to the Companys reportable segments. These cost items primarily consist of compensation and general operational expenses associated with the Companys executive, business development, finance, operations, human resources and legal functions. The Company does not allocate non-cash income statement amounts to its reportable segments, such as share based compensation, depreciation and amortization, intangible asset impairment charges, non-cash interest expense and losses on the disposal of assets. When reconciling segment operating loss to consolidated loss from operations, the Company makes an adjustment to convert the cash expenditures to the accrual basis to reflect GAAP. All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is the financial information with respect to the Companys reportable segments: Three Months Ended September 30, (in thousands) 2019 2018 Revenue: Therapeutics $ 4,719 $ 2,115 Food 146 426 Total segment revenue 4,865 2,541 Segment operational cash expenditures: Therapeutics $ 14,290 $ 11,727 Food 1,942 857 Total segment operational cash expenditures 16,232 12,584 Allocation of centralized research and development operational cash expenditures: Therapeutics $ 4,081 $ 2,387 Food  597 Total allocation of centralized research and development operational cash expenditures 4,081 2,984 Segment operating loss: Therapeutics $ (13,652 ) $ (11,999 ) Food (1,796 ) (1,028 ) Total segment operating loss (15,448 ) (13,027 ) Adjustments to reconcile segment operating loss to consolidated loss from operations: Corporate general and administrative cash expenditures $ (6,581 ) $ (3,719 ) Interest income received (1,236 ) (691 ) Depreciation and amortization (1,401 ) (584 ) Share-based compensation (2,491 ) (292 ) Changes in prepaid expenses, accounts payable and accrued expenses 5,179 7,866 Total consolidated loss from operations $ (21,978 ) $ (10,447 ) Nine Months Ended September 30, (in thousands) 2019 2018 Revenue: Therapeutics $ 14,357 $ 5,009 Food 1,359 934 Total segment revenue 15,716 5,943 Segment operational cash expenditures: Therapeutics $ 42,072 $ 25,903 Food 6,126 2,590 Total segment operational cash expenditures 48,198 28,493 Allocation of centralized research and development operational cash expenditures: Therapeutics $ 10,952 $ 6,329 Food  1,830 Total allocation of centralized research and development operational cash expenditures 10,952 8,159 Segment operating loss: Therapeutics $ (38,667 ) $ (27,223 ) Food (4,767 ) (3,486 ) Total segment operating loss (43,434 ) (30,709 ) Adjustments to reconcile segment operating loss to consolidated loss from operations: Corporate general and administrative cash expenditures $ (24,726 ) $ (8,397 ) Interest income received (3,322 ) (1,213 ) Depreciation and amortization (3,508 ) (1,555 ) Share-based compensation (6,319 ) (697 ) Loss on disposal of assets (22 ) (8 ) Changes in prepaid expenses, accounts payable and accrued expenses 15,988 10,772 Total consolidated loss from operations $ (65,343 ) $ (31,807 )