HeartSciences Inc. Segments Disclosure
Note 9 - Segment Information
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the CODM in deciding how to allocate resources and in assessing performance. The Company has determined that its CODM is its .
Management and the CODM view the Company’s operations and manage its business in one operating segment, which is the business of identifying, developing and commercializing products and AI-ECG solutions in the cardiovascular diagnostic technology field. The CODM uses operating expenses to measure performance against progress in its clinical trials and its product development. The Company's CODM reviews and evaluates the total net loss for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods.
The following table summarizes the segment's financial information including the Company's significant segment expenses:
|
|
April 30, |
|
|
April 30, |
|
||
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
||
Gross Margin |
|
$ |
2,470 |
|
|
$ |
12,519 |
|
Segment operating expenses: |
|
|
|
|
|
|
||
Clinical and regulatory |
|
|
756,189 |
|
|
|
721,428 |
|
Research and development |
|
|
3,456,312 |
|
|
|
1,994,173 |
|
Sales and marketing |
|
|
350,167 |
|
|
|
539,682 |
|
Operations |
|
|
173,604 |
|
|
|
162,953 |
|
General and administrative |
|
|
3,618,769 |
|
|
|
2,900,053 |
|
Loss from operations |
|
|
(8,352,571 |
) |
|
|
(6,305,770 |
) |
Interest expense |
|
|
500,453 |
|
|
|
354,080 |
|
Other income |
|
|
(87,795 |
) |
|
|
(54,642 |
) |
Total other expense |
|
|
412,658 |
|
|
|
299,438 |
|
Net loss |
|
$ |
(8,765,229 |
) |
|
$ |
(6,605,208 |
) |
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.