NOTE 13 – SEGMENT INFORMATION

 

The Company views its operations and manages its business as one operating and reportable segment, which is the business of research and development of innovative treatments for central nervous system (CNS) disorders and other diseases, including RASopathies and certain cancers. The determination of a single operating segment is consistent with the consolidated financial information regularly provided to the CODM. Consistent with the operational structure, the Chief Executive Officer, as the CODM, reviews and evaluates net loss for purposes of assessing performance, making operating decisions, allocating resources available and how to best deploy these resources across functions, therapeutic areas and research and development projects, and planning and forecasting for future periods on a consolidated basis. Operating expenses are used to monitor budget versus actual results in assessing performance of the segment. Total assets are monitored by the CODM on a consolidated basis which is reported on the face of the consolidated balance sheets. All the Company’s long-lived assets are held in the United States.

 

The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company’s single reporting segment. A reconciliation to the consolidated net loss for the years ended December 31, 2025, and 2024 is included at the bottom of the table below.

 

   Twelve Months Ended
December 31,
 
Significant segment expenses  2025   2024 
General and administrative (1)  $7,778,869   $5,786,293 
Pre-clinical research   378,343    1,479,896 
CMC   1,887,466    1,463,530 
Clinical development (1)   5,685,715    4,097,521 
Depreciation and amortization   662,585    
-
 
Share based compensation expense   297,467    649,029 
Impairment expense   4,162,911    
-
 
Other segment items (2)   3,939    773,693 
Total operating and segment expenses   20,857,295    14,249,962 
           
Reconciliation of net loss          
Change in fair value of warrant liabilities   115,301    (77,806)
Realized foreign currency translation loss from dissolution of subsidiaries   (7,171)   
-
 
Foreign currency gain/(loss)   30,376    
-
 
Other income   380,532    
-
 
Change in fair value of derivative warrant liability   (416,619)     
Interest and dividends, net   327,193    423,184 
Segment and consolidated net loss  $20,427,683   $13,904,584 

 

(1) includes personnel costs and excludes share-based compensation expense and impairment expense
(2) includes litigation settlements, loss from sale of assets, and loss on asset write offs

Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 24, 2025
2022Mar 30, 2023

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.