Q/C TECHNOLOGIES, INC. Segments Disclosure

Note 12 – Segment Reporting

 

The Company has two reportable segments. The legacy segment focuses on the previous endeavors of TNF Pharmaceuticals, Inc. This business segment operates in the clinical-stage pharmaceutical space and is specifically focused on Isomyosamine (formerly MYMD-1). The second and primary segment is focused on the development and eventual application of quantum computing technology, both for cryptocurrency applications and beyond. The Company’s chief operating decision maker (“CODM”), who is responsible for evaluating financial performance and allocating resources, is the Executive Chairman of the Board. The accounting policies of the duel segments are the same as those described in the summary of significant accounting policies. The CODM does not use assets to assess the segment. The CODM assesses performance for each segment and decides how to allocate resources based on net operating loss excluding stock-based compensation and warrant issuance expenses. The CODM uses a non-GAAP measure, net of operating loss excluding stock-based compensation and warrant issuance expenses, as the primary measure of operating performance and to monitor the Company’s cash burn and adherence to budget.

 

To date, the Company has not generated any product revenues and has incurred losses and negative cash flows from operations since inception.

 

The following table presents certain financial data for the Company’s two reportable segments and a reconciliation to the Company’s consolidated net loss.

 Schedule of Reconciliation Consolidated Net Loss 

		Pharmaceuticals								Computing Technology
		2025				2024				2025				2024
Sales			-				-				-				-
Product Cost of Sales			-				-				-				-
Gross Income			-				-				-				-
Operating Expenses
Administrative Expenses			2,013,710				4,161,907				1,722,816				-
Research and Development Expenses			3,045,977				3,441,010				425,864				-
Stock-Based Compensation			1,937,691				-				236,833
Franchise Tax Expense			150,038				-				50,013				-
Warrant Issuance Expense			-				-				264,417				-
Segment Net Loss			(7,147,415	)			(7,602,917	)			(2,699,942	)			-
Reconcilement of Net Loss
Adjustments and Reconciling Items
Stock Based Compensation			1,325,144				1,057,271				-				-
Series F Warrant Issuance Expenses			-				-				-				-
Series F-1 Warrant Issuance Expenses			-				539,097				-				-
Series G Warrant Issuance Expenses			-				969,505				-				-
Series H Warrant Issuance Expenses			-				-				264,417				-
Dividends Paid on Series H Preferred Stock			-				-				99,437				-
Interest and Dividend Income			156,042				351,809				69,346				-
Gains on Sales of Marketable Securities			2,176				976				-				-
Unrealized Gains on Marketable Securities			(1,435	)			671				40,106				-
Change in Fair Value of Derivative Liabilities			1,303,000				(388,000	)			(320,000	)			-
Change in Fair Value of Warrant Liabilities			-				(4,410,000	)			-				-
Loss on Issuance of Series F-1 Convertible Preferred Stock			-				(3,737,000	)			-				-
Loss on Issuance of Series G Convertible Preferred Stock			-				(5,109,000	)			-				-
Loss on Impairment of Intangible			(1,500,000	)			-				-				-
Loss on FMV of Contingent Compensation			-				-				(1,529,000	)			-
Casualty Gain/(Loss)			-				100,000				-				-
Total Adjustments and Reconciling Items			(1,365,331	)			(15,756,417	)			(2,103,402	)			-
Consolidated Net Loss		$	(5,782,084	)		$	(23,359,334	)			(596,540	)			-

 

Segment assets are not reviewed by the CODM and, accordingly, asset information is not presented.