ADIAL PHARMACEUTICALS, INC. Segments Disclosure
9 — SEGMENT REPORTING
The Company has reportable operating segment relating to drug development for addiction and related disorders. When evaluating the Company’s financial performance, the Chief Operating Decision Maker (“CODM”) reviews total operating expenses for the operating segment excluding equity method investments. The CODM makes decisions using this information on a company-wide basis.
Significant segment expenses, as provided to the CODM, are presented below:
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating Expenses: | ||||||||
| Segment research and development | $ | 2,619,671 | $ | 3,229,226 | ||||
| Segment general and administrative | 5,179,791 | 5,055,231 | ||||||
| Total Operating Expenses | 7,799,462 | 8,284,457 | ||||||
| Loss From Operations | (7,799,462 | ) | (8,284,457 | ) | ||||
| Other Income (Expense) | ||||||||
| Interest income | 149,567 | 178,659 | ||||||
| Inducement expense | (4,464,427 | ) | ||||||
| Loss on equity method investment | (492,130 | ) | (552,183 | ) | ||||
| Other income (expense) | 164,854 | (75,043 | ) | |||||
| Total other Income (Expense) | (177,709 | ) | (4,912,994 | ) | ||||
| Net Loss | $ | (7,977,171 | ) | $ | (13,197,451 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.