NEONC TECHNOLOGIES HOLDINGS, INC. Segments Disclosure
Note 13 – Segment Reporting
The Company manages its business activities on a consolidated basis and operates as a single operating segment: Biotechnology. The accounting policies of the Biotechnology segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.
Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer, Amir Heshmatpour. The CODM uses net loss, as reported on our consolidated statement of operations, in evaluating the performance of the biotechnology segment and determining how to allocate resources of the Company as a whole, including investing in our research and development programs and acquisition/licensing strategy. The CODM does not review assets in evaluating the results of the biotechnology segment, and therefore, such information is not presented. The following supplemental information, which is regularly provided to the CODM, breaks down the research and development costs for the years ended December 31, 2025 and 2024, respectively.
| 2025 | 2024 | |||||||
| Revenues | $ | 39,990 | $ | 83,000 | ||||
| Significant and other segment expenses: | ||||||||
| Research and development expenses: | ||||||||
| NEO100 | 1,179,758 | 1,146,766 | ||||||
| NEO100-02 | 391,171 | 320,987 | ||||||
| NEO212 | 979,406 | 870,614 | ||||||
| Pediatric | 237,144 | 191,593 | ||||||
| Laboratory | 198,177 | 461,401 | ||||||
| Other | 652,601 | 53,878 | ||||||
| Total research and development expense | 3,638,257 | 3,045,239 | ||||||
| Advisory fee | 11,787,806 | 500,000 | ||||||
| Legal and accounting | 2,481,413 | 2,000,623 | ||||||
| Employee compensation | 686,498 | 686,131 | ||||||
| Amortization | 1,110,484 | 391,041 | ||||||
| Investor relations | 1,144,293 | 200,540 | ||||||
| Share based compensation | 35,555,059 | |||||||
| Other general and administrative | 2,987,110 | 842,256 | ||||||
| Interest expense – related parties’ loans in 2024 | 2,504,567 | 2,557,056 | ||||||
| Loss on extinguishment of Bridge loan – related party | 2,069,923 | |||||||
| Loss on change in fair value of derivative liability related to sales of common stock through equity line of credit | 689,543 | |||||||
| Interest and other income | (398,830 | ) | (16,133 | ) | ||||
| Net loss | $ | (62,146,210 | ) | $ | (11,898,464 | ) | ||
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.