INVO Fertility, Inc. Segments Disclosure

Note 15 – Segment Reporting

 

The Company’s Chief Operating Decision Maker (“CODM”) as defined under GAAP is the Company’s Chief Executive Officer.

 

The Company defines its segments on the basis of the way in which internally reported financial information is regularly reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. The Company has analyzed its operations per ASC 280 and identified three operating segments: Clinic Services, INVOcell Device and Therapeutics. The three segments align with the Company’s distinct product and service lines. For the year ending December 31, 2024 the Company did not have any sales or operations outside of the United States.

 

The Clinics Services operating segment consists of financial information for WFI and the Atlanta Clinic. The INVOcell Device operating segment consists of financial information relating to the Company’s manufacture and sales of the INVOcell. The Therapeutics segment consists of financial information relating to the Company’s recently acquired subsidiary, NTI.

 

 

The tables below provide information about the Company’s segments and include a reconciliation to income before taxes:

 

Schedule of Company’s Segments Including a Reconciliation to Income Before Taxes

Fiscal Year Ended December 31, 2024		Fertility Clinic Services				INVOcell Device				Therapeutics				Total
Revenue from external customers			6,450,431				81,569				-				6,532,000
Intersegment revenues			-				29,000				-				29,000
Total revenue			6,450,431				110,569				-				6,561,000
Reconciliation of revenue
Elimination of intersegment revenue															(29,000	)
Total consolidated revenue															6,532,000
Less:
Cost of revenue			3,705,510				11,735				-				3,717,245
Sales and marketing			37,459				-				-				37,459
General and administrative			1,269,465				-				1,130,470				2,399,935
Research and development			-				-				388,530				388,530
Depreciation and amortization			849,700				9,725				-				859,425
Segment profit (loss)			588,297				89,109				(1,519,000	)			(870,594	)
Reconciliation of net loss
Other income (loss)															63,105
Interest expense															(1,056,360	)
Unallocated amounts:
Other corporate expenses															(7,254,902	)
Loss before taxes															(9,118,751	)
Assets			11,263,408				41,965				34,991,743

 

Fiscal Year Ended December 31, 2023		Fertility Clinic Services				INVOcell Device				Therapeutics				Total
Revenue from external customers			2,862,574				158,001				-				3,020,575
Intersegment revenues			-				-				-				-
Total revenue			2,862,574				158,001				-				3,020,575
Reconciliation of revenue
Elimination of intersegment revenue															-
Total consolidated revenue															3,020,575
Less:
Cost of revenue			1,937,583				35,291				-				1,972,874
Sales and marketing			30,084				-				-				30,084
General and administrative			704,132				-				-				704,132
Research and development			-				-				-				-
Depreciation and amortization			151,622				9,725				-				161,347
Segment profit (loss)			39,153				112,985				-				152,138
Reconciliation of net loss
Other income (loss)															(313,762	)
Interest expense															(925,909	)
Unallocated amounts:
Other corporate expenses															(6,919,293	)
Loss before taxes															(8,006,826	)
Assets			11,359,505				51,690				-

 

No single customer comprised 10% or more of the Company’s consolidated revenues from transactions in 2024 or 2023. In addition, the receivables balance attributable to any single customer did not comprise 10% or more of the Company’s total trade accounts receivable as of December 31, 2024, or December 31, 2023.