AQUABOUNTY TECHNOLOGIES INC Segments Disclosure
The Company adopted ASU 2023-07 effective for the annual period beginning January 1, 2024. The enhanced segment disclosure requirements were applied retrospectively to all prior periods presented in the financial statements, and prior period disclosures were based on the significant segment expense categories identified and disclosed in the period of adoption.
The financial information presented to and reviewed by the Company’s chief operating decision maker, who is the interim chief executive officer, chief financial officer and treasurer, is not prepared in accordance with GAAP, therefore, certain accounting policies
of the Company’s operating and reportable segment differ significantly from those described in Note 2 - Summary of Significant Accounting Policies. The significant difference between how management prepares financial information for internal purposes and GAAP is that internal information is focused on overall cash expenditures.
Management monitors the financial results for internal purposes under a cash expenditure approach rather than GAAP, because management believes such results more closely align to how the business is currently managed with consideration of the Company’s overall focus on liquidity.
Management has identified net cash expenditures as the key performance measure that is used for evaluating the business. The chief operating decision maker uses this measure on a monthly basis when assessing performance and when making decisions about how to allocate operating resources, such as payments to vendors.
The Company believes that net cash expenditures, which is a non-GAAP measure, is the most directly comparable measure to GAAP. As such, the required disclosures of reportable segment expenses and segment loss in the tables below are prepared in accordance with the financial information presented to management and reviewed by the Company’s chief operating decision maker on a regular basis.
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| Years Ended December 31, | ||||
$ thousands | 2025 |
| 2024 | ||
Corporate | $ | 5,942 |
| $ | 7,273 |
Indiana farm |
| 196 |
|
| 3,340 |
Ohio farm |
| 3,213 |
|
| 3,112 |
Canadian operations |
| 272 |
|
| 3,869 |
Net cash expenditures | $ | 9,623 |
| $ | 17,594 |
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Reconciliation of net cash expenditures |
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to consolidated net loss: |
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Depreciation and amortization |
| — |
|
| 904 |
Share-based compensation |
| 71 |
|
| 299 |
Long-lived asset impairment |
| 14,440 |
|
| 129,826 |
Loan forgiveness and other non-cash items |
| (2,382) |
|
| — |
Capitalized expenditures |
| — |
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| (2,930) |
Net realizable value adjustments |
| — |
|
| 1,093 |
Working capital changes |
| (3,261) |
|
| 2,406 |
Consolidated net loss: | $ | 18,490 |
| $ | 149,193 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 27, 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.