Note 12 - Segment Reporting

 

The Company has determined that it has one reportable segment- Drug Product primarily sold in the United States with contract revenue consisting of BARDA in the US and product, royalty and milestone revenues outside of the US.

 

The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM manages the Company’s business activities as a single reportable segment. The CODM uses consolidated profit and loss to evaluate and measure performance against progress in its commercialization efforts and clinical trials. The following table sets forth significant segment expenses.

 

   Year Ended
December 31,
 
   2025   2024 
Research and development:        
Employee expense  $7,756   $2,455 
Other research and development   11,577    1,487 
Total research and development   19,333    3,942 
Selling and marketing          
Employee and contracted employee expense  $22,618   $13,494 
Other selling and marketing   15,436    15,243 
Total selling and marketing expense   38,054    28,737 
General and administrative          
Employee expense  $32,584   $18,321 
Other general and administrative   35,636    11,638 
Total general and administrative expense   68,220    29,959 
           
Total operating expenses  $125,607   $62,638 

 

The CODM also reviews DefenCath sales separately from sales from the Melinta Portfolio; the following table sets forth the breakdown of sales:

 

   Year Ended
December 31,
 
   2025   2024 
Product Sales:        
DefenCath  $258,813   $43,472 
Melinta Portfolio   45,531    
-
 
Total product sales   304,344    43,472 
Contract Revenue   7,365    
-
 
Total Revenues   311,709    43,472 
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Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 25, 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.