10. Segment Information

The Company has one operating segment. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The Company’s CODM manages the Company’s operations on a consolidated basis for the purpose of allocating resources. All the Company’s long-lived assets are held in the United States.

The accounting policies of its segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for its segment based on net loss, which is reported on the consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the balance sheet as total assets. The CODM uses cash forecast models in deciding how to invest into the segment. The CODM analyzes the Company’s net loss and monitors budget versus actual results to assess the performance of the Company.

The table below summarizes the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2024 and 2023:

Years ended December 31, 

    

2024

    

2023

Revenue

$

226,000

$

226,000

Less:

Acquired in-process research and development

 

117,464,000

Research and development expenses:

Preclinical & clinical development

7,441,000

4,060,000

Personnel related

2,787,000

2,400,000

Other research and development (a)

2,619,000

4,970,000

Total research and development expenses

 

12,847,000

 

11,430,000

General and administrative expenses:

Professional & consulting fees

5,954,000

2,162,000

Personnel related

3,035,000

3,264,000

Other general and administrative (b)

3,300,000

3,668,000

Total general and administrative

12,289,000

9,094,000

Series A warrant and pre-funded warrant expense

24,438,000

Other income, net

 

(289,000)

 

(1,350,000)

Net loss

$

(166,523,000)

$

(18,948,000)

(a)Other research and development expenses include stock based compensation, manufacturing, formulation, development, and consulting fees.
(b)Other general and administrative expenses include stock based compensation, public company costs, and insurance.

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.