INVO Fertility, Inc. Segments Disclosure

Note 16 – 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, 2025 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 Company divested 80.1% of NTI during the second quarter of 2025 and as such the Therapeutics segment consists of the results of NTI through June 2, 2025.

 

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, 2025		Fertility Clinic Services				INVOcell Device				Therapeutics				Total
Revenue from external customers		$	6,721,057			$	120,193			$	-			$	6,841,250
Intersegment revenues			-				27,000				-				27,000
Total revenue			6,721,057				147,193				-				6,868,250
Reconciliation of revenue
Elimination of intersegment revenue															(27,000	)
Total consolidated revenue															6,841,250
Less:
Cost of revenue			4,359,547				30,571				-				4,390,118
Sales and marketing			113,417				-				-				113,417
General and administrative			1,297,157				-				1,414,023				2,711,180
Research and development			-				-				393,470				393,470
Impairment loss			1,397,353								14,645,069				16,042,422
Depreciation and amortization			585,897				9,725				-				595,622
Segment profit (loss)			(1,032,314	)			106,897				(16,452,562	)			(17,404,979	)
Reconciliation of net loss
Other income (loss)															(1,068,353	)
Interest expense															(910,644	)
Loss on disposition											(1,534,517	)			(1,534,517	)
Unallocated amounts:
Other corporate expenses															(6,369,612	)
Loss before taxes															(27,288,105	)
Assets			6,811,259				32,240				-

 

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															(1,035,143	)
Unallocated amounts:
Other corporate expenses															(7,254,902	)
Loss before taxes															(9,118,751	)
Assets			11,263,408				41,965				34,991,743

 

No single customer comprised 10% or more of the Company’s consolidated revenues from transactions in 2025 or 2024. 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, 2025, or December 31, 2024.