Note 11: Segment Reporting

 

The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses expected research and development study and material costs; cash, cash equivalents and marketable securities balances; operating losses; and budget projections to assess financial performance and allocate resources.

 

Cash, cash equivalents and marketable securities were as follows at December 31, 2025 and 2024:

 

   2025   2024 
Cash  $2,883,305   $891,603 
Cash equivalents   1,539,533    6,619,476 
Marketable securities   5,696,386    16,501,984 

 

Research and development study and material costs were as follows during the years ended December 31, 2025 and 2024:

 

   2025   2024 
Research and development studies  $7,111,026   $11,083,607 
Research and development materials   255,024    316,435 
Research and development costs  $7,366,050   $11,400,042 

 

These financial metrics are used by the CODM to make key operating decisions, such as which research and development studies to commence, extend or discontinue. See the consolidated balance sheets and statements of operations as of and for the years ended December 31, 2025 and 2024.

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Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 27, 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.