Note 15. Segment Information

The Company manages its business activities on a consolidated basis and operates as one operating and reportable segment, which is the business of developing and commercializing the Company's proprietary AIDE technology platform. The key factors used to identify the reportable segments are the organization of its business and alignment of the Company's internal operations and the nature of our AIDE technology. Operating segments are defined as components of an enterprise for which discrete financial information is available and is evaluated regularly by the CODM, in deciding how to allocate resources and assess performance.

The Company’s Chief Executive Officer, who is the CODM, reviews financial information on a consolidated basis for purposes of allocating and evaluating financial performance. The CODM evaluates the Company’s performance and resource allocation by

analyzing consolidated net loss, as reported on the consolidated statement of operations. This assessment involves comparing net loss across prior periods, the Company's forecast, and total expenditures related to eDSP product development and the ongoing Phase 3 NEAT clinical trial.

The measure of segment assets reviewed by the CODM is the consolidated total assets, as reported on the consolidated balance sheet. The following table presents the measure of segment assets regularly provided to the CODM (in thousands):

 

 

 

December 31,

 

 

2025

 

 

2024

 

Cash, cash equivalents and short-term investments

 

 

17,752

 

 

 

40,784

 

 

The following table presents financial information, including significant segment expenses, which are regularly provided to the CODM and included within consolidated statements of operations and comprehensive loss (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Research and development:

 

 

 

 

 

 

Personnel

 

$

5,269

 

 

$

3,724

 

Stock-based compensation

 

 

1,723

 

 

 

870

 

Clinical and contract manufacturing

 

 

30,066

 

 

 

16,006

 

Other

 

 

(1,676

)

 

 

(2,010

)

General and administrative:

 

 

 

 

 

 

Personnel

 

 

5,029

 

 

 

5,218

 

Stock-based compensation

 

 

3,382

 

 

 

3,876

 

Consulting and professional costs

 

 

4,006

 

 

 

5,115

 

Other

 

 

2,630

 

 

 

3,371

 

Goodwill impairment charge

 

 

 

 

 

17,130

 

Fair value adjustment for contingent consideration

 

 

7,639

 

 

 

3,985

 

Total operating expenses

 

 

58,068

 

 

 

57,285

 

Loss from operations

 

 

(58,068

)

 

 

(57,285

)

Fair value adjustment for debt

 

 

(2,043

)

 

 

(1,709

)

Fair value adjustment for warrants

 

 

(21,470

)

 

 

 

Other segment items

 

 

(2,398

)

 

 

2,166

 

Net loss

 

$

(83,979

)

 

$

(56,828

)

 

Other segment items within net loss include warrant issuance costs, interest income, other income (expense), net, and income tax expense.

The Company’s long-lived assets consist primarily of property, plant and equipment, net, and operating lease right-of-use assets are maintained in Italy. As of December 31, 2025 and 2024, no individual country other than the U.S. accounted for 10% or more of these assets.

Historical Timeline

Fiscal YearFiled
2025Apr 10, 2026Showing above
2024Mar 24, 2025

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.