Ernexa Therapeutics Inc. Segments Disclosure
| 5. | Segment Reporting |
The CODM uses consolidated net loss as a measure of profit and loss and assesses Company performance through the achievement of its business strategy goals. The CODM is regularly provided with forecasted expense information that is used to determine the Company’s liquidity needs and cash allocation to execute its business strategy, and he uses cash as a measure of segment assets in managing the Company. The Company operates in the U.S., and all of its assets are located in the U.S.
The table below provides a breakdown of the Company’s significant operating expenses for the years ended December 31, 2025 and 2024 with a reconciliation to net loss for each of those years.
The Company’s revenue, the total of which was generated in the U.S., and its cost of revenues for the year ended December 31, 2024 relate to a customer contract that was assigned to Factor Limited in September 2024. The Company did not have any revenue generating contracts during the year ended December 31, 2025. The Company’s purchases of property and equipment were less than $0.1 million for the year ended December 31, 2025 and approximately $0.4 million for the year ended December 31, 2024. Depreciation and amortization expense was $0.1 million for each of the years ended December 31, 2025 and 2024. During the year ended December 31, 2025, the Company recognized $5.8 million in other expense for the 2025 Private Placement and $0.8 million in other income for time-barred liabilities. During the year ended December 31, 2024, the Company recognized $22.6 million in other expense, net, related to the September 2024 Transactions. The Company recognized $0.1 million and $0.2 million in interest income for the years ended December 31 2025 and 2024, respectively, and it recognized interest expense of less than $0.1 million and approximately $6.8 million during the years ended December 31, 2025 and 2024, respectively.
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | $ | 582 | |||||
| Cost of revenues | 96 | |||||||
| Gross profit | 486 | |||||||
| Operating expenses: | ||||||||
| Research and development by significant expense: | ||||||||
| MSA/license fees | 1,847 | 3,017 | ||||||
| Study fees | 667 | 468 | ||||||
| Professional fees | 812 | 291 | ||||||
| Payroll and related | 502 | 591 | ||||||
| Other1 | 328 | 237 | ||||||
| Research and development | 4,156 | 4,604 | ||||||
| General and administrative by significant expense: | ||||||||
| Stock-based compensation | 1,433 | 1,431 | ||||||
| Payroll and related | 1,431 | 1,607 | ||||||
| Professional fees | 1,668 | 4,168 | ||||||
| Occupancy expense | 29 | 5,074 | ||||||
| Other2 | 602 | 852 | ||||||
| General and administrative | 5,163 | 13,132 | ||||||
| Gain on lease termination | (1,576 | ) | ||||||
| Total operating expenses | 9,319 | 16,160 | ||||||
| Loss from operations | (9,319 | ) | (15,674 | ) | ||||
| Other expense, net: | ||||||||
| Forward sales contract expense | (5,847 | ) | ||||||
| Gain (loss) on extinguishment of debt | 765 | (22,440 | ) | |||||
| Change in fair value of convertible notes | 1,017 | |||||||
| Change in fair value to bridge notes derivative liability | (1,459 | ) | ||||||
| Change in fair value of warrant liabilities | 1 | 414 | ||||||
| Change in fair value of contingent consideration | 66 | |||||||
| Interest income | 83 | 249 | ||||||
| Interest expense | (27 | ) | (6,752 | ) | ||||
| Other income, net | 215 | 70 | ||||||
| Total other expense, net | (4,810 | ) | (28,835 | ) | ||||
| Loss before income taxes | (14,129 | ) | (44,509 | ) | ||||
| Benefit (provision) for income taxes | 45 | (30 | ) | |||||
| Net loss | $ | (14,084 | ) | $ | (44,539 | ) | ||
| At December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash | $ | 1,884 | $ | 1,729 | ||||
| Total assets | $ | 5,834 | $ | 5,269 | ||||
| 1 | Other includes certain lab supply expenses, amounts related to the close out of a former clinical trial, allocated occupancy costs, stock-based compensation, and depreciation. |
| 2 | Other includes expenses related to insurance, information technology, travel, banking, depreciation and other miscellaneous expenses. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 12, 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.