Nuwellis, Inc.NUWE

Nuwellis, Inc. Segments Disclosure

10-KFiled Mar 11, 20252 min read
Note 11—Segment Reporting

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. Nuwellis has one reportable segment: fluid overload. The Company is a medical technology company focused on developing, manufacturing, and commercializing a medical device used in ultrafiltration therapy, including the Aquadex FlexFlow® and the Aquadex SmartFlow® systems (collectively the “Aquadex System”). The Company recognizes this medical device system as one reporting segment.  The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

The accounting policies of the fluid overload segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the fluid overload segment based on net loss, which is reported on the statement of operations as consolidated net loss. The measure of segment assets is reported on the balance sheet as total consolidated 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 fluid overload 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, along with cash forecast models.

The table below summarizes the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2024, and 2023:

 
  
Year Ended
December 31,
  
(in thousands)
  
2024
    
2023
  
Revenue
  
$
8,740
    
$
8,864
  
Gross Profit
    
5,676
      
4,983
  
Gross profit %
    
64.9
%
    
56.2
%
Operating expenses:
                
General and administrative
    
5,637
      
6,832
  
Sales and Marketing
    
6,254
      
8,709
  
Development
    
1,645
      
3,655
  
Clinical, Quality, Regulatory
    
2,650
      
2,747
  
Total Expenses
    
16,186
      
21,943
  
Stock Based Compensation
    
478
      
670
  
Other Expense
    
177
      
2,579
  
Net loss
    
(11,165
)
    
(20,209
)

Historical Timeline

Fiscal YearFiled
2024Mar 11, 2025Showing above
2018Feb 21, 2019

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.

Other Available Disclosures

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