Note 3 – Segment Reporting

 

Our Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income (loss) to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes natural expenses, such as employee wages and benefits at a consolidated level, to manage the Company’s operations and strategic growth initiatives.

 

The following table presents segment information of revenue, significant expenses and net loss (in thousands):

 

   Year Ended December 31, 
   2025   2024   2023 
Revenue  $682   $373   $358 
Less:               
Salaries and employee related costs   14,609    9,534    9,745 
Stock-based compensation   8,677    5,805    4,555 
Rent and facilities   1,574    751    575 
Professional services and legal fees   14,483    2,959    3,963 
Technology & IT costs   3,067    1,062    1,198 
Other sales and marketing costs   2,457    734    1,471 
Direct and indirect materials   
-
    99    39 
Depreciation and amortization expense   4,404    3,798    3,307 
Other operational expense   2,488    1,667    1,787 
Operating loss   (51,077)   (25,937)   (26,243)
Other income (loss)               
Interest and other income (expense), net   20,718    423    295 
Interest expense   (65)   (2,496)   (1,602)
Change in fair value of derivative liability   11,750    (40,532)   528 
Segment net loss  $(18,674)  $(68,542)  $(27,022)

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 20, 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.