NEPHROS INC Segments Disclosure

Note 14 – Segment Information

 

The Company operates in one operating segment, and therefore one reportable segment, focused on the development and sale of high-performance water solutions to the medical and commercial markets. The Company manages business activities primarily through the development and commercialization of water filtration products, which are sold to U.S. and international customers.

 

The accounting policies for the Company’s single operating segment are the same as those described in the summary of significant accounting policies. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM manages the Company’s business activities as a single operating and reportable segment. Accordingly, our CODM uses net income (loss) to measure segment profit or loss, allocate resources, and assess performance. The measure of segment assets is reported on the balance sheet as total assets.

 

 

The following is a summary of the significant revenue and expense categories, and net income  provided to the CODM (in thousands):

 Schedule of Net Income for Segment 

		2025				2024
		Years Ended December 31,
		2025				2024
Net revenue:
Product revenues		$	18,234			$	14,035
Royalty and other revenues			555				127
Total net revenues			18,789				14,162
Cost of goods sold			7,164				5,439
Gross Margin			11,625				8,723
Operating expenses:
Research and development			1,339				906
Selling, general and administrative			9,000				7,676
Other operating expenses (1)			140				135
Total operating expenses			10,479				8,717
Operating income			1,146				6
Other income			60				83
Income tax expense			(12	)			(15	)
Net income			1,194				74

 

(1)	Other operating expenses is comprised of depreciation and amortization.