NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED 3. SEGMENT INFORMATION The segment reporting reflects the way information is reported internally to the chief operating decision maker. The Board of the Group has been identified as the chief operating decision maker. The Board assesses the financial performance and position of the group and makes strategic decisions. The Group has two reportable operating segments, commercial products and research and development. Reportable segment Principal activities Commercial products Milestone and royalty revenue from licence of intellectual property. Research & development Development of pharmaceutical products for the treatment of neurodevelopmental disorders. Commercial products Research & Development Corporate Total 2023 $’000 2022 $’000 2023 $’000 2022 $’000 2023 $’000 2022 $’000 2023 $’000 2022 $’000 Revenue 231,925 14,553 – – – – 231,925 14,553 Total segment revenue 231,925 14,553 – – – – 231,925 14,553 Research and development costs (66) (453) (26,685) (12,259) – – (26,751) (12,712) Interest income – – – – 5,687 391 5,687 391 Other income – – – – 2,451 2,089 2,451 2,089 Other expenses – – – – (8,172) (4,137) (8,172) (4,137) Profit before income tax 231,858 14,100 (26,685) (12,259) (34) (1,657) 205,140 184 Income tax expense – – – – (48,059) – (48,059) – Profit after income tax 231,858 14,100 (26,685) (12,259) (48,093) (1,657) 157,081 184 All revenue from licences of intellectual property is from Acadia Pharmaceuticals Inc. (Acadia) and is from the United States. Assets and liabilities are not allocated to segments and are therefore not reported. 4. REVENUE Disaggregation of revenue from contracts with customers The Group derives revenue from the sale and transfer of goods and services at a point in time under the following major business activities: 2023 $’000 2022 $’000 Revenue from contracts with customers Licences of intellectual property - up-front payments 145,711 – Licences of intellectual property - milestone payments 59,434 14,553 Licences of intellectual property - royalty income 26,780 – 231,925 14,553 All revenue from licences of intellectual property is from the United States. The revenue from licences of intellectual property was earned by Neuren on the first commercial sale of DAYBUE by Acadia in the United States, and on signing the expanded worldwide licence agreement with Acadia. Neuren Pharmaceuticals Limited Annual Report 2023 39
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