11. Segment and Geographic Information

 

The Company operates in one single operating and reportable segment, which includes all activities related to the sale of the Company’s Oral and IV TPOXX® as well as research and development services. The Company derives revenue primarily from sales to the U.S. Government as well as international governments (including government affiliated entities) and manages the business activities on a consolidated basis. The segment derives revenues from customers through the delivery of product and fulfillment of research and development services.

 

The CODM assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. Consolidated net income is also a measure that is considered in monitoring budget versus actual results.

 

The CODM does not review assets in evaluating the results of the segment, and therefore, such information is not presented.

 

The following table provides the operating result of the Company's segment:

 

  

For the years ended December 31,

 
  

2025

  

2024

  

2023

 

Revenue

            

Product sales and supportive services

 $88,048,145  $133,330,181  $130,668,209 

Research and development

  6,526,757   5,389,169   9,249,011 

Total revenues

  94,574,902   138,719,350   139,917,220 

Less:

            

Cost of sales and supportive services

  29,703,893   31,289,229   17,825,090 

Employee expenses

  16,996,975   16,887,020   13,058,095 

R&D vendor expenses

  9,062,714   2,684,593   7,320,157 

Professional fee expenses

  3,128,215   3,837,929   4,820,843 

International promotion fees

  -   3,098,402   3,938,867 

Other segment items (1)

  12,031,171   10,969,376   9,350,641 

Interest income

  (6,730,086)  (6,117,589)  (4,173,146)

Income tax expense

  7,102,877   16,856,174   19,707,847 

Net income

 $23,279,143  $59,214,216  $68,068,826 

 

(1) Other segment items include insurance, business development costs, regulatory and consultant expenses, as well as various general corporate costs.

 

 

Revenues by geographic region were as follows:

 

  

For the year ended December 31,

 
  

2025

  

2024

  

2023

 

United States

 $88,753,655  $115,743,994  $118,650,253 
             

International

            

Asia-Pacific

     13,857,043   966,633 

Canada

  5,821,247   737,677    

Europe, Middle East and Africa (EMEA)

     8,380,636   20,300,334 

Total International

  5,821,247   22,975,356   21,266,967 
             

Total revenues

 $94,574,902  $138,719,350  $139,917,220 

  

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 11, 2025
2023Mar 12, 2024
2022Mar 2, 2023

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.