NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION

As detailed in Note C above, the Company currently has two reportable segments. (1) Therapeutic DNA Production Services and (2) DNA Tagging and Security Products and Services. For the fiscal year ended September 30, 2024, the MDx Testing Services segment is also presented. Resources are allocated by our CEO and CFO whom, collectively the Company has determined to be our CODM.

Information regarding operations by segment for the fiscal year ended September 30, 2025 is as follows:

Therapeutic DNA

DNA Tagging and

  ​ ​ ​

Production

  ​ ​ ​

Security Products

  ​ ​ ​

Consolidated

Revenues:

 

  ​

 

  ​

 

  ​

Product revenues

$

828,806

$

595,341

$

1,424,147

Service revenues

 

159,312

553,476

712,788

Total revenues

$

988,118

$

1,148,817

$

2,136,935

Gross profit

$

336,666

$

502,241

$

838,907

Segment operating expenses

Selling, general and administrative

$

4,203,069

$

1,273,113

$

5,476,182

Research and development

5,436,239

140,267

5,576,506

Total segment operating expenses

$

9,639,308

$

1,413,380

$

11,052,688

(Loss) income from segment operations (a)

$

(9,302,642)

$

(911,139)

$

(10,213,781)

Depreciation expense for the fiscal year ended September 30, 2025 was $344,008 for the Therapeutic DNA Production and Services segment and $40,157 for the DNA Tagging and Security Products and Services segment.

Information regarding operations by segment for the fiscal year ended September 30, 2024 is as follows:

Therapeutic DNA

MDx Testing

DNA Tagging and

  ​ ​ ​

Production

  ​ ​ ​

Services and Kits

  ​ ​ ​

Security Products

  ​ ​ ​

Consolidated

Revenues:

Product revenues

$

560,000

$

$

514,813

$

1,074,813

Service revenues

 

335,354

703,323

1,038,677

Clinical laboratory service revenues

 

1,330,849

1,330,849

Less intersegment revenues

 

(12,920)

(12,920)

Total revenues

$

895,354

$

1,317,929

$

1,218,136

$

3,431,419

Gross profit

$

678,167

$

(49,831)

$

388,543

$

1,016,879

Segment operating expenses

Selling, general and administrative

$

3,065,288

$

1,127,462

$

2,245,935

$

6,438,685

Research and development

2,402,151

311,927

694,585

3,408,663

Total segment operating expenses

$

5,467,439

$

1,439,389

$

2,940,520

$

9,847,350

(Loss) income from segment operations (a)

$

(4,789,272)

$

(1,489,220)

$

(2,551,977)

$

(8,830,469)

Depreciation expense for the fiscal year ended September 30, 2024 was $164,275 for the Therapeutic DNA Production and Services segment and $266,677 for the DNA Tagging and Security Products and Services segment.

NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION, continued

Reconciliation of segment loss from operations to corporate net loss:

September 30, 

  ​ ​ ​

2025

2024

Loss from operations of reportable segments

  ​ ​ ​

$

(10,213,781)

  ​ ​ ​

$

(8,830,469)

General corporate expenses (b)

 

(5,834,814)

 

(5,194,296)

Interest income

 

192,915

 

176,301

Unrealized gain on change in fair value of warrants classified as a liability

319,630

9,430,000

Unrealized loss on change in fair value of warrants classified as a liability - warrant modification

(394,000)

Transaction costs allocated to warrant liabilities

(633,198)

Loss on issuance of warrants

(1,633,767)

Income tax benefit

684,115

Net loss from discontinued operations

 

(392,731)

 

Other income (expense), net

 

(106,580)

$

(8,877)

Consolidated net loss

$

(15,349,246)

$

(7,088,306)

(a)

Segment operating loss consists of net sales less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses.

(b)

General corporate expenses consists of Selling, general and administrative expenses that are not specifically identifiable to a segment.

The Company attributes net revenues from external customers according to the geographic location of the customer. Net revenues by geographic location of customers are as follows:

Year Ended September 30, 

  ​ ​ ​

2025

  ​ ​ ​

2024

Americas

$

1,010,795

$

951,896

Europe

 

105,584

172,369

Asia and other

 

1,020,556

989,225

Total

$

2,136,935

$

2,113,490

All long-lived assets are located in the United States.

Historical Timeline

Fiscal YearFiled
2025Dec 22, 2025Showing above
2024Dec 17, 2024
2023Dec 7, 2023
2022Dec 14, 2022
2021Dec 9, 2021
2020Dec 17, 2020
2019Dec 12, 2019
2018Dec 18, 2018
2016Dec 6, 2016

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.