NOTE 13: - SEGMENT REPORTING

 

Segment Information

 

Following the adoption of ASU 2023-07, the Company is required to disclose significant segment expenses that are regularly provided to the CODM. As a single reportable segment entity, the Company’s segment performance measure is consolidated net loss. The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment. Significant segment expenses are presented in the Company’s consolidated statements of operations.

 

The following table presents the significant segment expenses and other segment items regularly reviewed by the CODM:

 

   Year ended June 30, 
   2025   2024 
Revenues from external customers  $1,336   $326 
           
Salary expenses  $(12,229)  $(11,455)
Professional services expenses   (2,554)   (2,711)
Other segment items (1)   (9,803)   (7,504)
           
Net loss  $(23,250)  $(21,344)
           
Other segment disclosures:          
Depreciation and amortization expenses  $316   $253 
Share-based compensation expenses   2,143    2,618 
Interest income   1,144    1,406 
Interest expense  $873   $866 

 

(1)Other segment items primarily include cost of revenues, share-based compensation expenses, depreciation and amortization expenses, other research and development expenses, other general and administrative expenses and financial income (expenses) as reported in our consolidated statements of operations.

 

All of the Company’s long-lived assets are located in Israel.

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.