Segment Reporting Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (“CODM”) for purposes of making decisions regarding resource allocation and evaluating financial performance. As of the year ended December 31, 2024, the Company has determined that its Chief Executive Officer and Chief Financial Officer/Chief Operating Officer are the CODMs. The CODMs review the consolidated results of operations when making decisions about allocating resources and assessing the performance of the Company as a whole as the Company is still in an early stage of business. The Company does not distinguish between markets or segments for the purpose of internal reporting. Accordingly, the Company has determined that it operates in a single operating and single reportable segment at the consolidated entity level. The CODMs uses net (loss) income and loss from operations as the key performance measures to make key operating decisions.
Revenues are based on the location where services are provided and products are sold. All of the Company’s revenues are attributable to the U.S. for the periods presented. Reported segment net (loss) income and loss from operations for the Company’s single reportable segment are shown in the consolidated statements of operations and comprehensive (loss) income.
The following table presents the significant segment expenses that are regularly provided to the CODMs:
| | | | | | | | | | | |
| (in thousands) | December 31, 2024 | | December 31, 2023 |
| Operating expenses: | | | |
| Personnel Expense | $ | 22,274 | | | $ | 19,871 | |
| Other Expense | 63,007 | | | 40,225 | |
| Total operating expenses | $ | 85,281 | | | $ | 60,096 | |
The personnel expense represents payroll expenses excluding stock-based compensation. The other expense represents research and development excluding personnel expense, general and administrative excluding personnel expense, depreciation and amortization expense, and impairment of assets.
| | | | | | | | | | | |
Long-lived assets (excluding deferred tax assets) by geography |
| (in thousands) | December 31, 2024 | | December 31, 2023 |
| United States | $ | 82,530 | | | $ | 96,312 | |
Non United States | 155,702 | | | 177,149 | |
Total | $ | 238,232 | | | $ | 273,461 | |
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.