NEUROONE MEDICAL TECHNOLOGIES Corp Segments Disclosure
NOTE 14 – Segment Reporting
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the CODM in deciding how to allocate resources in assessing performance. The Company has one reportable segment, which is the business of development and commercialization of products related to comprehensive neuromodulation cEEG and sEEG recording, monitoring, ablation, and stimulation solutions (“Neuromodulation Products”). NeuroOne is a medical technology company focused on developing and commercializing Neuromodulation Products. The Company recognizes the Neuromodulation Products as one reporting segment.
The accounting policies of the Neuromodulation Products segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the Neuromodulation Products segment based on net loss, which is reported on the statement of operations as net loss. The measure of segment assets is reported on the balance sheet as total assets. The Company does not have any intra-entity sales or transfers.
The CODM uses cash forecast models in deciding how to invest into the Neuromodulation Products segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment and in establishing management’s compensation.
The statements of operations below are inclusive of the significant expense categories regularly reviewed by the CODM for the years ended September 30, 2025 and 2024:
| Years ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Product revenue | $ | 9,097,692 | $ | 3,453,003 | ||||
| Cost of product revenue | 3,956,286 | 2,373,336 | ||||||
| Product gross profit | 5,141,406 | 1,079,667 | ||||||
| Collaborations revenue | 3,000,000 | |||||||
| Operating expenses: | ||||||||
| General and administrative | 5,848,303 | 6,498,394 | ||||||
| Sales | 703.570 | 619,276 | ||||||
| Marketing | 832,644 | 784,025 | ||||||
| Development | 4,349,834 | 4,483,385 | ||||||
| Quality assurance | 633,528 | 581,796 | ||||||
| Total operating expenses | 12,367,879 | 12,966,876 | ||||||
| Loss from operations | (4,226,473 | ) | (11,887,209 | ) | ||||
| Fair value change in warrant liability | 784,670 | (327,092 | ) | |||||
| Financing costs | (334,063 | ) | (228,988 | ) | ||||
| Other income, net | 170,492 | 125,179 | ||||||
| Loss before income taxes | (3,605,374 | ) | (12,318,110 | ) | ||||
| Provision for income taxes | ||||||||
| Net loss | $ | (3,605,374 | ) | $ | (12,318,110 | ) | ||
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.