CAPRICOR THERAPEUTICS, INC. Segments Disclosure
16. SEGMENT INFORMATION
The Company operates as a operating segment. The Company’s Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”), is responsible for allocating resources and assessing performance. The CODM reviews the Company’s operating results on an aggregate basis to make decisions about resource allocation, evaluate financial performance, and manage the overall business. Accordingly, the Company’s operations are managed as one reportable segment focused on the development and commercialization of its therapeutic candidates.
The following table represents consolidated net loss summarized by the significant segment expenses regularly reviewed by the CODM for the years ended December 31, 2025 and 2024:
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
Total revenue | $ | — | $ | 22,270,465 | ||
Research and development expense: | ||||||
Compensation and benefits | 28,260,696 | 16,390,412 | ||||
Duchenne muscular dystrophy program (Deramiocel) | 34,254,585 | 23,049,349 | ||||
Exosomes platform research | 5,225,572 | 2,908,678 | ||||
Other R&D segment expenses (1) | 6,845,600 | 3,240,494 | ||||
Total research and development expense, excluding non-cash expense | 74,586,453 | 45,588,933 | ||||
Stock-based compensation expense | 8,917,527 | 3,605,667 | ||||
Depreciation and amortization | 950,615 | 773,985 | ||||
Total research and development expense | 84,454,595 | 49,968,585 | ||||
General and administrative expense: | ||||||
Compensation and benefits | 7,224,517 | 4,446,897 | ||||
Other G&A segment expenses (2) | 7,216,396 | 3,607,499 | ||||
Total general and administrative expense, excluding non-cash expense | 14,440,913 | 8,054,396 | ||||
Stock-based compensation expense | 8,307,733 | 6,159,497 | ||||
Depreciation and amortization | 938,889 | 651,229 | ||||
Total general and administrative expense | 23,687,535 | 14,865,122 | ||||
Operating loss | (108,142,130) | (42,563,242) | ||||
Investment income | 6,257,607 | 2,202,990 | ||||
Interest expense | (3,045,725) | — | ||||
Other income (expense) | (112,098) | (105,334) | ||||
Total non-operating income, net | 3,099,784 | 2,097,656 | ||||
Loss before income taxes | (105,042,346) | (40,465,586) | ||||
(Provision for) benefit from income taxes | (1,600) | (1,600) | ||||
Net loss | $ | (105,043,946) | $ | (40,467,186) | ||
| (1) | Other R&D segment expenses primarily include other pipeline development costs and other facility costs. |
| (2) | Other G&A segment expenses primarily include accounting, legal and other professional fees, consulting expenses, business insurance, employee travel, and other facility and information technology costs. |
The asset information provided to the CODM for the single operating segment is consistent with the amounts reported in the consolidated balance sheets.
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.