Terrestrial Energy Inc. /DE/ Segments Disclosure
17. Segment Information
ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.
The Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer in accordance with ASC 280-10-50-5, who reviews the assets, operating results, and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment.
The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the consolidated statement of operations as net income or loss. The measure of segment assets is reported on the consolidated balance sheet as total assets when evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:
For the year ended | ||||||
December 31, | ||||||
| 2025 | | 2024 | |||
Research and development costs | $ | 9,767,996 | $ | 5,176,932 | ||
General and administrative expenses |
| 14,266,775 |
| 4,168,576 | ||
Other significant non-cash items: |
|
| | |||
Depreciation and amortization |
| 1,161,704 |
| 1,256,391 | ||
Total Operating Expenses | 25,196,475 | 10,601,899 | ||||
Revenue | — | 248,357 | ||||
Total other (expense) income | (2,802,216) | (1,110,903) | ||||
Income tax expense | (17,950) | (20,965) | ||||
Net loss | $ | (28,016,641) | $ | (11,485,410) | ||
As the Company has not earned significant revenue yet, the key measures of segment profit or loss reviewed by the Company’s CODM are research and development costs and general and administrative expenses to monitor, manage and forecast cash to ensure enough capital is available for working capital needs. The CODM also reviews research and development costs and general and administrative costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.
The geographic location of long-lived assets is as follows:
December 31, | ||||||
| 2025 | | 2024 | |||
United States | $ | 1,231,273 | $ | 14,853 | ||
Canada |
| 2,189,215 |
| 2,024,865 | ||
Total | $ | 3,420,488 | $ | 2,039,718 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 31, 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.