ANAVEX LIFE SCIENCES CORP. Segments Disclosure
Note 8 Segmented Information
Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is the Chief Executive Officer. The Company has determined that it operates in a single operating segment, which consists of the development of clinical and preclinical product candidates focused on advancing novel therapeutics for CNS diseases and disorders, and related administrative activities.
The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM evaluates performance and allocates resources based on consolidated net loss, as presented in the Company’s consolidated statement of operations, and monitors forecast-to-actual variances for significant expense categories given their direct relationship to cash burn. The CODM also reviews the consolidated balance sheet to assess liquidity, funding capacity, and segment assets, which are reported as total consolidated assets.
The CODM receives and reviews financial information on a consolidated basis and does not assess performance or allocate resources based on geographic regions. In addition, management does not internally organize or evaluate operating results by geography. Accordingly, management has determined that it is not required to present financial information disaggregated by geographic region under ASC 280.
The table below summarizes the significant expense categories regularly reviewed by the CODM for the years ended September 30, 2025, 2024 and 2023 (in thousands):
| 2025 | 2024 | 2023 | ||||||||||
| Research and development costs | ||||||||||||
| Preclinical studies | $ | 543 | $ | 663 | $ | 627 | ||||||
| Clinical trials | 15,805 | 21,301 | 21,873 | |||||||||
| Personnel costs | 13,466 | 13,676 | 10,264 | |||||||||
| Non-cash share-based compensation | 7,013 | 5,813 | 10,812 | |||||||||
| Other research and development costs(a) | 765 | 385 | 141 | |||||||||
| Total research and development costs | 37,592 | 41,838 | 43,717 | |||||||||
| General and administrative costs | ||||||||||||
| Personnel costs | 2,288 | 2,177 | 2,527 | |||||||||
| Non-cash share-based compensation | 4,536 | 3,625 | 5,558 | |||||||||
| Other general and administrative costs(b) | 6,992 | 5,237 | 3,961 | |||||||||
| Total general and administrative costs | 13,816 | 11,039 | 12,046 | |||||||||
| Other income | 5,031 | 9,875 | 8,258 | |||||||||
| Net loss | $ | (46,377 | ) | $ | (43,002 | ) | $ | (47,505 | ) | |||
| (a) | Other research and development costs include, but are not limited to, publications, sponsorships, membership fees, scientific conferences, and medical affairs strategy and branding. |
| (b) | Other general and administrative expenses include, but are not limited to, office rent, public company reporting requirements including professional fees, insurance, and other general operating expenses not otherwise included in research and development expenses. |
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.