Note 14 – Segment Reporting

 

The Company has determined that it currently operates in a single segment, Medical Device development, located in a single geographic location, the United States. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. Since the Company operates in a single segment, the measure of segment total assets and loss from operations is the same as that reported on the accompanying balance sheets as total assets, and the accompanying statement of operations as loss from operations, respectively.

 

The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM uses operating expenses to measure performance against progress in its clinical trials and its product development. The following table sets forth segment expenses.

  

(In thousands)  2024   2023 
   December 31, 
(In thousands)  2024   2023 
Research and Development:          
Employee expense  $4,984   $4,004 
Clinical   5,345    7,567 
Product   1,147    1,443 
Other   773    569 
Total research and development   12,249    13,583 
Selling, general and administrative expense          
Employee expense  $6,285    7,436 
Professional fees   2,451    1,729 
Occupancy   626    631 
Insurance   655    724 
Other   1,560    1,135 
Total selling, general and administrative expense   11,577    11,655 
Loss from Operations  23,826   25,238 
           
Adjustments and reconciling Items   

(2,007

)   

(1,722

)
Net Loss  $

21,819

   $

23,516

 

 

Adjustments and reconciling items in the above table consist of interest income and realized and unrealized gains and losses related to our investments in US Treasury securities.

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.