13 - SEGMENT INFORMATION
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by its Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its CEO. The Company has determined that it operates in one operating segment, as the CODM reviews financial information presented on a combined basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company’s segment reporting is consistent with its internal reporting to its CODM.
The operating loss of the segment is the same as the Company’s consolidated operating loss as reported in the consolidated statements of operations. The measure of segment assets is reported in the Company’s consolidated balance sheets as total assets.
The following table presents information about the Company’s significant expenses. A significant segment expense is an expense that is significant to the segment considering qualitative and quantitative factors, regularly provided or easily computed from information regularly provided to the CODM and is included in the reported measure of segment profit or loss. The Company’s significant expenses are aggregated and presented as general and administrative and research and development financial statement line items in the consolidated statements of operations. Other segment items represent the difference between reported significant segment expenses and consolidated operating loss.
For the years ended December 31, 2025 and 2024, the Company's operating loss by significant segment expenses were as follows:
| | | | | | | | | | | | | | | | | | |
| | | | For The Year Ended
December 31, |
| (in thousands) | | | | | | 2025 | | 2024 |
| Outside services | | | | | | $ | 4,253 | | | $ | 4,948 | |
| Employee compensation-related | | | | | | 3,308 | | | 2,632 | |
| Insurance | | | | | | 1,066 | | | 1,395 | |
| Share-based compensation | | | | | | 2,185 | | | 1,354 | |
| Rent, property and office | | | | | | 1,307 | | | 888 | |
| Other segment items (1) | | | | | | 399 | | | 440 | |
| Impairment of property, plant and equipment | | | | | | 3,936 | | | — | |
| Total operating loss | | | | | | $ | 16,454 | | | $ | 11,657 | |
(1) Other segment items primarily include depreciation and amortization, meals, travel, and conference expense, and franchise taxes.
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.