15. Segments

 

The Company operates in two segments – the sale of products and licensing/service income in India (“Pharmaceutical Segment”) and the development of biotechnology products (“Biotechnology Segment”), with substantially all of the resources of the Company focused on its biotechnology activities. The Company purchases substantially all of the products for the Pharmaceutical Segment from a third-party manufacturer. Other income items relate to corporate financing activities outside of these two segments.

 

Reporting by segment is summarized as follows for the years ended December 31, 2025 and 2024:

 

   For the year ended December 31, 2025   For the year ended December 31, 2024 
Amount in USD  Biotechnology   Pharmaceutical   Total   Biotechnology   Pharmaceutical   Total 
Revenues  $
-
   $319,714   $319,714   $
-
   $256,944   $256,944 
Gross margin   
-
    218,771    218,771    
-
    194,970    194,970 
         -                     
Operating expenses:        -                     
Depreciation and amortization   11,985    
-
    11,985    17,347    
-
    17,347 
Selling, general and administrative   2,279,978    85,587    2,365,565    837,045    61,528    898,572 
Transactional fees   7,705,533    
-
    7,705,533    
-
    
 
    
-
 
Research and development   534,394    53,864    588,258    245,713    39,677    285,391 
Total Operating expenses   10,531,890    139,451   $10,671,341    1,100,105    101,205   $1,201,310 

Other Income (expenses)

                              
Interest expense   (146,641)   
-
    (146,641)   (206,004)   
-
    (206,004)
Fair value adjustment   30,511    
-
    30,511    (238,931)   
-
    (238,931)
Other income (loss), net   90,987    
-
    90,987    3,814    
-
    3,814 
Other expenses   (25,143)   
-
   $(25,143)   (441,121)   
-
   $(441,121)
                               

Net income (loss)

  $(10,557,033)  $79,320   $(10,477,713)  $(1,541,226)  $93,765   $(1,447,461)
                               
Assets of segment  $6,496,852   $325   $6,497,177   $1,379,267   $2,294   $1,381,561 

The Company derives revenues from the sale of products, including royalties related to sales of such products and from the license of technology. Substantially all revenues for the years ended December 31, 2025 and 2024 are derived from Sun Pharma, a significant pharmaceutical company based in India. Revenues for the years ended December 31, 2025 and 2024 are summarized as follows:

 

   Year ending   Year ending 
   December 31,
2025
   December 31,
2024
 
Service fee for arrangements for sale of Dandruff products  $
-
   $75,147 
Licensing and milestone fees – Luliconazole   116,900    
-
 
Sale of products   174,645    134,395 
Royalty income related to above product sales   28,169    47,402 
Total  $319,714   $256,944 

 

In December 2020, the Company entered into a licensing contract for a product with Sun Pharma, whereby the Company would be entitled to development and sales-based milestones and royalties on future sales of the product by Sun Pharma. No development milestones, sales-based milestones or royalties have been received under this license during the year ended December 31, 2024, and $116,900 was earned during the year ended December 31, 2025.

 

During 2024, the Company amended its arrangement with Sun Pharma such that the Company will no longer be responsible for purchasing and selling inventory of the Dandruff Lotion and Shampoo, but instead will receive a net service fee payment for sales of such products made by Sun Pharma. These payments are recorded as service fee revenue in the period earned. This arrangement was terminated in December 2024.

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Apr 4, 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.