Amesite Inc. Segments Disclosure

Note 8 – Segment Information

 

The Company currently has one single operating and reporting segment, B2C and B2B AI-driven solutions, as defined by ASC 280, “Segment Reporting”. The Company is a high-tech artificial intelligence (AI) software company offering a cloud-based platform and content creation services for businesses and individuals. The Company’s platform utilizes a common infrastructure to deliver both Amesite Engage for higher education and NurseMagic for healthcare. The Company generates substantially all of its revenue from licensing its solutions. Customers access the Company’s solutions through a hosted environment using an online interface, batch processing, API, and custom integrations.

 

Revenue is generally recognized based on a monthly subscription fee. The Company manages the business activities on an entity-wide basis. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer.

 

The accounting policies of the AI-driven solutions segment are the same as those described in the Summary of Significant Accounting Policies in Note 2. The CODM assesses performance for the AI-driven solutions segment and decides how to allocate resources based on net loss that also is reported on the statements of operations as net loss. The measure of segment assets is reported on the balance sheet as total assets. The CODM uses net income (loss) to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the entity, to pursue acquisitions, or to pay dividends. The monitoring of budgeted versus actual results is also used in assessing performance of the segment. The segment measure of net income (loss) used by the CODM is the same as that presented in the accompanying statement of operations.

 

Information about reported segment revenue, segment net income (loss), and significant segment expenses is shown as follows:

 

		For the fiscal year ended
		June 30,
		2025				2024
Net revenue		$	110,459			$	166,881
Less:
Advertising and marketing expenses			174,227				314,815
Depreciation and amortization, net of deferred costs			55,503				158,967
Professional fees			591,918				583,653
Personnel-related expenses			1,823,715				2,038,327
Stock-based compensation expense			226,053				834,469
Director restricted stock unit expense			300.000				-
Warrants issued for underwriting fee			95,984				-
Technology and development expense			69,478				125,710
Impairment of capitalized software			90,869				-
Other segment items (1)			377,193				690,592
Interest income			(77,396	)			(176,469	)
Segment net loss		$	(3,617,086	)		$	(4,403,182	)
Total net loss		$	(3,617,086	)		$	(4,403,182	)

 

(1) Other segment items included in segment net loss are primarily business insurance and franchise taxes as well as general office expenses.