Note 12. Segment Reporting

The Company is a clinical-stage biotechnology company focused on discovering, developing and delivering curative therapies that address the underlying drivers of heart disease and has one operating and reportable segment. The Company’s chief operating decision marker (CODM) is the chief executive officer.

The statement of operations includes research and development expenses, general and administrative costs, interest income, and income taxes; the Company has not generated any revenue. In addition to reviewing the expenses in the Company’s statement of operations, the CODM is regularly provided with operating expenses by function. The CODM does not review assets at a different asset level or category than the amounts disclosed in the Company’s balance sheet. The Company’s long-lived assets are located in the United States.

The following table provides information about the Company’s operating expenses by function and includes a reconciliation to net income.

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

Clinical

 

$

26,024

 

 

$

23,426

 

Manufacturing (pre-commercial)

 

 

23,433

 

 

 

30,143

 

Research

 

 

20,858

 

 

 

26,566

 

Other

 

 

16,427

 

 

 

17,903

 

Total Research and development

 

 

86,742

 

 

 

98,038

 

General and administrative

 

 

29,206

 

 

 

33,155

 

Total operating expenses

 

 

115,948

 

 

 

131,193

 

Loss from operations

 

 

(115,948

)

 

 

(131,193

)

Other income, net:

 

 

 

 

 

 

Interest income

 

 

4,737

 

 

 

7,056

 

Other income, net

 

 

82

 

 

 

53

 

Total other income, net

 

 

4,819

 

 

 

7,109

 

Net loss before income tax expense

 

 

(111,129

)

 

 

(124,084

)

Income tax expense

 

 

 

 

 

 

Net loss

 

$

(111,129

)

 

$

(124,084

)

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.