NOTE 18 - SEGMENT INFORMATION

 

The Company operates as a single operating segment, as a clinical stage product discovery company developing products using both natural and engineered phage technologies. The Company’s chief operating decision-maker “(CODM)” is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated Net loss and Operating loss to monitor budget versus actual results in assessing segment performance and the allocation of resources. Significant segment expenses are presented in the Company’s consolidated statements of operations.

 

Additional disaggregated significant segment expenses on a functional basis, that are not separately presented on the Company’s consolidated statements of operations, regularly reviewed by our CODM, include salaries and clinical trials expenses and presented below.

 

   Year ended
December 31,
 
   2025   2024 
         
Operating expenses:        
Research and development salaries and related expenses, other than stock-based compensation   4,493    7,406 
General and administrative salaries and related expenses, other than stock-based compensations   2,707    3,101 
Clinical trials   12,720    12,301 
Research and development stock based compensation   711    600 
General and administrative stock based compensation   1,380    1,248 
Research and development depreciation expenses   2,306    1,486 
General and administrative depreciation expenses   616    317 
Goodwill, IPR&D and Other long-lived asset impairment   13,495    8,084 
Other segment items (*)   3,038    9,980 
Total Operating expenses   41,466    44,523 

 

(*) Other segment items include gain from early lease termination and all remaining costs necessary to operate our business, which primarily include external professional services, rent, insurance and other administrative expenses, and are presented net of grants received.

 

The Company’s Property and equipment, as well as the Company’s operating lease right-of-use assets recognized on the consolidated balance sheets were located as follows:

 

   As of December 31, 
   2025   2024 
Foreign - Israel   157    6,090 
Domestic - United States   
-
    4,412 
Total   157    10,502 

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.