15. Segment Information

 

The Company has one reportable segment: IP licensing. The IP licensing segment generates revenue from customers by licensing its proprietary DehydraTECH technology.

 

The IP licensing segment’s accounting policies are the same as those described in the summary of significant accounting policies at Note 2.

 

The chief operating decision maker, our Chief Executive Officer, assesses performance of the IP Licensing segment and makes resource allocation decisions based on cash flows that are also reported on the Consolidated Statements of Cash Flows.

 

The measure of segment assets is reported on the balance sheet as consolidated total assets.

 

The measure of segment profit or loss is net loss as per the Consolidated Statements of Operations and Comprehensive Loss.

 

The Company invested in additional intellectual property and purchases of equipment totaling $75,106 and $24,646 respectively, during the fiscal year ended August 31, 2025, and $145,591 and $43,014, respectively, during the fiscal year ended August 31, 2024. The following table details losses for the IP licensing segment, as well as reconciliations to consolidated net loss for the years ended August 31, 2025 and August 31, 2024.

 

 

 

Year Ended August 31,

 

IP Licensing Segment

 

2025

 

 

2024

 

Licensing revenue

 

$696,000

 

 

$457,990

 

less:

 

 

 

 

 

 

 

 

Research and Development

 

 

8,238,757

 

 

 

2,360,565

 

Consulting

 

 

564,618

 

 

 

1,029,140

 

Wages & Salaries

 

 

1,706,410

 

 

 

791,831

 

Legal and professional

 

 

435,537

 

 

 

595,258

 

Accounting and audit

 

 

197,312

 

 

 

216,808

 

Advertising and promotions

 

 

408,367

 

 

 

632,597

 

Investor relations

 

 

-

 

 

 

79,900

 

Depreciation and amortization

 

 

87,825

 

 

 

76,153

 

Office and miscellaneous (a)

 

 

628,089

 

 

 

332,990

 

Travel

 

 

56,451

 

 

 

38,384

 

Impairment loss

 

 

247,364

 

 

 

57,836

 

Other income (loss)

 

 

(30,697)

 

 

(55,524)

Segment net loss

 

$(11,905,427)

 

$(5,808,996)

 

Reconciliation of profit and loss:

 

 

 

 

 

 

B2B revenue

 

 

9,923

 

 

 

6,288

 

B2B cost of sales

 

 

2,720

 

 

 

4,822

 

B2B operating expenses

 

 

13,210

 

 

 

1,124

 

Consolidated net loss

 

$(11,911,434)

 

$(5,808,654)

(a) Office and miscellaneous expense includes office expense, insurance expense, foreign currency exchange gains and losses, bad debt, and other overhead expenses.

Historical Timeline

Fiscal YearFiled
2025Nov 28, 2025Showing above
2024Nov 26, 2024
2023Nov 20, 2023
2022Nov 28, 2022
2021Nov 29, 2021
2020Oct 15, 2020
2019Nov 14, 2019
2018Nov 14, 2018
2017Nov 27, 2017
2016Nov 29, 2016
2015Nov 27, 2015

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.