CervoMed Inc. Segments Disclosure

Note 12. Segments

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the CODM, or decision-making group, in deciding how to allocate resources in assessing performance. CervoMed Inc. has one reportable segment which consists of the development of clinical and nonclinical product candidates for treatments for age-related neurologic disorders and other medical indications. The Company’s CODM is the Chief Executive Officer.

 

The accounting policies of the Company’s single segment are the same as those described in the summary of significant accounting policies. To date, the Company has not generated any product revenue. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. The CODM assesses the financial performance for the Company's segment based on net loss. The CODM also uses internal budget versus forecasted expense and cash forecast models in making certain decisions. Such models are reviewed to assess the entity-wide/single-segment operating results and performance, including how long cash-on-hand is expected to be sufficient. The measure of segment assets is reported on the consolidated balance sheet as total assets. The segment measure of loss is reported on the consolidated statement of operations and comprehensive loss as net loss.

 

The table below summarizes the significant expense categories regularly reviewed by the CODM for the year ended December 31, 2025 and 2024:

 

		Year Ended December 31,
		2025				2024
Grant revenue		$	4,006,510			$	9,737,974
Research and development expenses:
Dementia with Lewy bodies			7,052,512				12,102,842
Frontotemporal disorders (incl. nfvPPA)			1,217,784				36,853
Recovery after stroke			1,427,966				391,659
Other clinical* and nonclinical			2,504,863				2,499,202
Personnel costs, excluding stock-based compensation			5,745,558				2,187,221
Stock-based compensation			482,669				218,822
Other research and development expenses, including CMC**			3,385,720				1,361,744
Total research and development expenses			21,817,072				18,798,343
General and administrative expenses:
Personnel costs, excluding stock-based compensation			4,988,705				3,995,114
Stock-based compensation			965,965				1,186,900
Professional fees			2,752,710				2,684,386
Insurance, taxes and similar fees			1,166,374				985,481
Other general and administrative expenses, including IT, facilities, supplies and similar costs***			610,561				314,879
Total general and administrative expenses			10,484,315				9,166,760
Other income			1,328,510				1,936,436
Net loss		$	(26,966,367	)		$	(16,290,693	)

 

* - Includes early-stage clinical studies that are not indication-specific and related costs.

 

** - Includes, among other things, CMC-related costs, shipping, packaging and storage costs, certain consulting costs, and other miscellaneous research development expenses.

 

*** - Includes, among other things, costs related to IT systems, rent and other facilities, office supplies, and similar costs.