iSpecimen Inc. Segments Disclosure
13. SEGMENT AND GEOGRAPHIC INFORMATION
Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, which is our , in deciding how to allocate resources and in assessing performance. We manage our business globally within one operating segment in accordance with ASC Topic 280, Segment Reporting (“ASC 280”). Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance.
The Company has one reportable segment – biospecimens. The Company derive its revenue by procuring specimens from its healthcare provider network and then distributing these annotated biospecimens to its research client base.
Set out below is information about the assets and liabilities as at December 31, 2025 and 2024 and profit or loss from each segment for the year ended December 31, 2025 and 2024.
| December 31,
2025 | December 31, 2024 | |||||||
| Financial statement line item: | ||||||||
| Reportable segment assets | $ | 9,531,410 | $ | 9,350,230 | ||||
| Reportable segment liabilities | 6,443,179 | 6,039,222 | ||||||
| Year
Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Financial statement line item: | ||||||||
| Revenues from external customers | $ | 1,928,998 | $ | 9,291,115 | ||||
| Less: | ||||||||
| Cost of revenue, excluding amortization | 1,713,333 | 5,111,157 | ||||||
| Technology expenses, excluding amortization | 688,942 | 1,493,310 | ||||||
| Sales and marketing expenses | 2,295,501 | 4,945,269 | ||||||
| Supply development expenses | 246,979 | 537,888 | ||||||
| Fulfillment expenses | 827,501 | 1,635,724 | ||||||
| Other segment items (a) | 4,907,202 | 5,595,383 | ||||||
| Depreciation & amortization expense | 1,730,902 | 2,294,248 | ||||||
| Interest expense | 1,949 | 173,771 | ||||||
| Interest income | (3,748 | ) | (44,133 | ) | ||||
| Interest and penalties on sales tax liability | 7,969 | 46,303 | ||||||
| Income tax expense | ||||||||
| Reportable segment income (loss) | $ | (10,487,532 | ) | $ | (12,497,805 | ) | ||
| (a) | Other segment items included in reportable segment net loss consists mainly of general and administrative expenses for corporate functions, such as insurance expenses, associated software licenses, other payroll and related expenses for human resources, legal, finance and executive teams, other consulting and professional fees for corporate services rendered, other marketing expenses, franchise tax, other gains and losses, and other overhead expense. |
The Company’s reportable business segment sell their goods in four geographic locations:
| ● | Americas |
| ● | Europe |
| ● | Middle East/Africa |
| ● | Asia Pacific |
The following table represents the percentage of total revenue by geographic area, based on the location of the customer for the years ended December 31, 2025 and 2024, respectively.
| 2025 | 2024 | |||||||
| Americas | 94.74 | % | 85.13 | % | ||||
| Europe, Middle East and Africa | 2.88 | % | 12.71 | % | ||||
| Asia Pacific | 2.38 | % | 2.16 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 1, 2026 | Showing above |
| 2024 | Apr 14, 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.