DiaMedica Therapeutics Inc. Segments Disclosure
15. Segment Information
An operating segment is identified as a component of an enterprise that engages in business activities about which separate discrete financial information and operating results is regularly reviewed by the chief operating decision-maker (CODM) in making decisions regarding resource allocation and assessing performance. The Company's CODM is the Chief Executive Officer. The Company operates in a operating segment focused on the development of its drug product candidate DM199 for the treatment of severe ischemic disease. The CODM manages and allocates resources to the operations of the Company on a total company basis. Further, the CODM reviews and utilizes functional expenses (i.e., research, development and general and administrative) at the consolidated level to manage the Company's operations. Other segment items included in consolidated net loss are revenues, share-based compensation, interest income, other expense, net, and income tax expense, which are reflected in the consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets.
The following table presents financial information, including significant segment expenses, which are regularly provided to the CODM and included within segment and consolidated net loss:
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Year Ended December 31, |
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2025 |
2024 |
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Operating expenses, excluding share-based compensation |
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Research and development |
$ | 23,294 | $ | 18,436 | ||||
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General and administrative |
7,257 | 6,160 | ||||||
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Total operating expenses, excluding share-based compensation |
30,551 | 24,596 | ||||||
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Share-based compensation |
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Research and development |
1,320 | 621 | ||||||
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General and administrative |
2,526 | 1,464 | ||||||
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Total share-based compensation |
3,846 | 2,085 | ||||||
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Operating loss |
(34,397 | ) | (26,681 | ) | ||||
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Interest income |
1,669 | 2,301 | ||||||
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Other expense, net |
(10 | ) | (34 | ) | ||||
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Income tax expense |
(28 | ) | (30 | ) | ||||
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Segment and consolidated net loss |
$ | (32,766 | ) | $ | (24,444 | ) | ||
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.