Nexentis Technologies Inc. Segments Disclosure
NOTE 23 – SEGMENT REPORTING
| A. | Information about reported segment profit or loss and assets |
This segment’s structure reflects the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s reportable segments are not aggregated.
The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”), the Company’s Chief Executive Officer and the Chairman of the Board, for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM allocate resources and assesses the performance of each operating segment based on potential business opportunities, historical and potential future sales and operating expenses.
The Company has two reportable segments: (i) Pathogen prevention and prolong shelf life, and (ii) the N2O emissions Global warming solutions. The Pathogen prevention operating segment consists Save Food Ltd. and the Global warming solutions operating segment consist of NTWO OFF Ltd.
The Company’s method for measuring profitability on a reportable segment basis is operating loss. The Company adopted ASU 2023-07 in December 2024. The most significant provision was for the Company to disclose significant segment expenses that are regularly provided to the CODM. The Company’s CODM periodically reviews operating loss by segment and treats it as a significant segment expense.
The following table presents information about the Company’s reportable segments for the year ended December 31, 2024 and 2023:
Operating loss related to the Company’s reportable segments and the reconciliation of the total net loss attributable to common stockholders is as follows:
| Year ended December 31 | ||||||||
| 2024 | 2023 | |||||||
| Revenue from Pathogen prevention and prolong shelf life | 210 | 263 | ||||||
| Cost related to Pathogen prevention and prolong shelf life | (896 | ) | (1,361 | ) | ||||
| Operating loss from Pathogen prevention and prolong shelf life | (686 | ) | (1,098 | ) | ||||
| Revenue from N2O emissions Global warming solutions | ||||||||
| Cost related to N2O emissions Global warming solutions | (350 | ) | (1,788 | ) | ||||
| Operating loss from N2O emissions Global warming solutions | (350 | ) | (1,788 | ) | ||||
| Professional services | (2,009 | ) | (1,831 | ) | ||||
| Share base compensation | (1,055 | ) | (2,444 | ) | ||||
| Depreciation | (18 | ) | (21 | ) | ||||
| Other general and administrative expenses | (202 | ) | (396 | ) | ||||
| Total Operating loss | (3,284 | ) | (4,692 | ) | ||||
| Financing (expenses) income, net | (155 | ) | 47 | |||||
| Other income | 428 | 985 | ||||||
| Changes in fair value of investments measured under the fair value option | (1,300 | ) | (714 | ) | ||||
| Net loss | (5,347 | ) | (7,260 | ) | ||||
N2OFF, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(USD in thousands, except share and per share data)
NOTE 23 – SEGMENT REPORTING (continued)
| B. | Information on sales by geographic distribution: |
Sales are attributed to geographic distribution based on the location of the customer.
| Year ended December 31 | ||||||||
| 2024 | 2023 | |||||||
| United States | 171 | 142 | ||||||
| Mexico | 110 | |||||||
| Israel | 31 | 10 | ||||||
| Peru | 8 | |||||||
| Turkey | 1 | |||||||
| 210 | 263 | |||||||
| C. | Sales to single customers exceeding 10% of sales: |
| Year ended December 31 | ||||||||
| 2024 | 2023 | |||||||
| Customer A | 171 | 143 | ||||||
| Customer B | 110 | |||||||
| Customer C | 31 | |||||||
| 202 | 253 | |||||||
| D. | Information on Long-Lived Assets - Property, Plant and Equipment and ROU assets by geographic areas: |
The following table presents the locations of the Company’s long-lived assets as of December 31, 2024 and 2023:
| Year ended December 31 | ||||||||
| 2024 | 2023 | |||||||
| Israel | 43 | 102 | ||||||
| United States | 13 | 21 | ||||||
| 56 | 123 | |||||||
N2OFF, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(USD in thousands, except share and per share data)
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.