Scienture Holdings, Inc. Segments Disclosure
NOTE 15 – SEGMENT REPORTING
Factors used to identify the Company’s reportable segments include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker (the “CODM”) in making decisions about how to allocate resources and assess performance. The Company’s operating segments have been broken out based on similar economic and other qualitative criteria. The Company operates all reporting segments in one geographical area (the United States).
The Company’s chief operating decision-makers are its co-Chief Executive Officers (the “CODM”), who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis. There are no segment managers who are held accountable by the CODM for any planning, strategy and key decision-making regarding operations. Accordingly, as of December 31, 2025, the Company has a single reportable segment and operating segment structure. The Company operates entirely within the United States.
The key measures of segment profit or loss reviewed by the CODM are total revenues, gross profit, total operating expenses (including research and development expenses), and net loss from continuing operations. The CODM uses these measures to allocate resources, evaluate operational performance, and make strategic decisions regarding pipeline development and commercialization activities. The CODM does not evaluate performance based on asset information at the segment level. Significant segment expenses that are regularly provided to the CODM and included in the reported measure of segment profit or loss include: research and development expenses (SCN-102: $368K; SCN-104: $422K; SCN-106: $298K; SCN-107: $500K for the year ended December 31, 2025); wage and salary expense of $2,118,568; professional fees of $2,407,822; accounting and legal expense of $2,070,337; and non-cash impairment losses of $26,346,050. Other segment items not separately disclosed include technology expense of $97,261, general and administrative expense (including stock-based compensation) of $7,926,016, and depreciation and amortization of $491,781.
The following table presents key financial information for the Company’s single reportable segment for the years ended December 31, 2025 and 2024:
Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||
| Revenues | $ | 431,609 | $ | 136,643 | ||||
| Cost of sales | 100,127 | 130,638 | ||||||
| Gross profit | $ | 331,482 | $ | 6,005 | ||||
| Research and development expense | 1,956,270 | 2,236,690 | ||||||
| Total operating expenses (excl. impairment) | 16,576,274 | 14,707,020 | ||||||
| Impairment loss | 26,346,050 | |||||||
| Total operating expenses | $ | 42,922,324 | $ | 14,707,020 | ||||
| Operating loss | (42,590,842 | ) | (14,701,015 | ) | ||||
| Net loss from continuing operations, net of tax | $ | (41,512,264 | ) | $ | (18,244,480 | ) | ||
| Total assets (at period end) | $ | 84,178,330 | $ | 104,853,805 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Apr 22, 2024 | |
| 2022 | Mar 27, 2023 | |
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.