Note 11 — Segment Information

 

The Company conducts its business as a single operating and reportable segment based on its organizational and management structure and the manner in which the Chief Operating Decision Maker (“CODM”) reviews financial information to allocate resources and access performance, consistent with the Company’s segment reporting policy described in Note 2. The accounting policies of the Company’s single operating segment are the same as those described in Note 2. The key measure of segment profitability used by the CODM to allocate resources and assess performance is net income (loss), as reported on the consolidated statements of operations. The following table presents the significant expense categories of the Company’s single operating segment for the periods presented.

 

   For the
year
ended
December 31,
2025
   For the
six months
ended
December 31, 2024
 
         
Operating expenses:        
Clinical trial related service fee, a related party (see Note 5)  $10,125,000   $2,801,435 
Consulting fee   82,228    75,000 
Stock-based compensation   618,974    432,256 
Salary expense   524,891    266,571 
Professional fee   1,149,786    631,395 
Insurance expense   335,658    169,513 
Other general and administrative fee   226,137    75,794 
Loss before income tax   13,062,674    4,426,964 
           
Income tax expense   838    63 
Net loss  $13,063,512   $4,427,027 

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.