Alpha Cognition Inc. Segments Disclosure

NOTE 17 – SEGMENT INFORMATION

 

Operating segments are defined as components of the Company for which separate discrete information is available for evaluation by the chief operating decision maker (“CODM”), in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer (“CEO”) who views the Company’s operations and manages its business as a single reportable operating segment, being the commercial manufacturing and sales of pharmaceutical treatments for neurological diseases in the geographical areas of Canada and the United States of America.

 

The CEO manages and allocates resources to the operations of the Company on an entity-wide basis. The Company’s measure of segment performance is operating loss. Managing and allocating resources on an entity-wide basis enables the CEO to assess the overall level of resources available and how to best deploy these resources across functions that are in line with the Company’s long-term company-wide strategic goals. Consistent with this decision-making process, the CEO uses financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources, and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The CEO does not review assets in evaluating the results of the Company, and therefore, such information is not presented.

 

The following table summarizes the segment’s financial information including the Company’s significant segment expenses for the years ended December 31:

 

		2025				2024
Revenue
Product, net		$	6,792,024			$	-
Licensing			3,428,251				-
Total revenue			10,220,275				-
Operating Expenses
Cost of product sales, excluding amortization of intangible asset			474,006				-
Cost of licensing revenue			1,441,317				-
Amortization of intangible asset			21,546				79,875
Research and development:							-
Employee costs			339,302				1,267,662
Grant expenses			81,095				463,881
Stock-based compensation			130,142				358,323
Other			1,317,433				1,830,546
Total research and development			1,867,972				3,920,412
Selling, general and administrative expenses:
Commercial operations			1,470,717				120,053
Depreciation			37,026				1,345
Employee costs			15,291,592				1,593,742
Sales and marketing			1,812,762				120,973
Stock-based compensation			4,792,383				773,338
Other			5,671,643				5,402,779
Total selling, general and administrative expenses			29,076,123				8,012,230
Total operating expenses			32,880,964				12,012,517
Loss from operations		$	(22,660,689	)		$	(12,012,517	)

 

Revenues from customers are attributed to individual countries based on the location of the Company’s customer, which is generally determined by the customer’s bill-to address. The following table presents revenues from customers by geographic area for the years ended December 31:

 

		2025				2024
United States		$	6,792,024			$	-
China			3,428,251				-
Total revenue		$	10,220,275			$	-

 

The geographic location of the Company’s long-lived assets as of December 31 was as follows:

 

		2025				2024
United States		$	328,540			$	26,957
Canada			391,423				413,089
Long-lived assets other than financial instruments		$	719,963			$	440,046