SCWorx Corp. Segments Disclosure
Note 12. Segment Reporting
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): “Improvements to Reportable Segment Disclosures to enhance the reportable segment disclosures”. The guidance requires additional disclosures about significant segment expenses.
As noted above, the Company is a provider of data content and services related to the repair, normalization and interoperability of information for healthcare providers and big data analytics for the healthcare industry.
The Company has determined that it currently operates in a single segment - health information technology solutions and services, located in a single geographic location – the United States. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. Since the Company operates in a single segment, the measure of segment total assets and loss from operations is the same as that reported on the accompanying consolidated balance sheets as total assets, and the accompanying consolidated statements of operations as loss from operations, respectively.
The Company’s is the Chief Operating Decision Maker (“CODM”). The CODM manages the Company’s business activities as a operating and reportable segment. The CODM uses consolidated profit and loss to evaluate and measure performance against progress in its commercialization efforts and clinical trials. The following table sets forth significant segment assets and expenses.
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets: | ||||||||
| Cash | $ | 1,644,439 | $ | 106,654 | ||||
| Accounts receivable, net | 313,350 | 372,716 | ||||||
| Prepaid expenses and other assets | 65,627 | 24,008 | ||||||
| Fixed assets | 10,220 | |||||||
| Intangible assets | 20,019 | |||||||
| Goodwill | 5,842,433 | 5,842,433 | ||||||
| Total Assets | $ | 7,896,088 | $ | 6,345,811 | ||||
| For the Years Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 2,877,629 | $ | 2,989,599 | ||||
| Cost of revenue | 1,957,923 | 2,243,614 | ||||||
| Gross profit | 919,706 | 745,985 | ||||||
| Operating expenses: | ||||||||
| Legal and professional | 510,951 | 980,897 | ||||||
| Salaries and wages | 513,727 | 268,399 | ||||||
| General and administrative | 853,343 | 756,115 | ||||||
| Depreciation | 404 | |||||||
| Total operating expenses | 1,878,425 | 2,005,411 | ||||||
| Other income (expense) | ||||||||
| Interest expense | (2,985,597 | ) | (104,201 | ) | ||||
| Warrant modification expense | (565,277 | ) | ||||||
| Forgiveness of accounts payable | 143,588 | 227,402 | ||||||
| Loss on shares issued for legal settlement | (78,104 | ) | ||||||
Total other income (expense) | (3,485,390 | ) | 123,201 | |||||
| Net loss | $ | (4,444,109 | ) | $ | (1,136,225 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2016 | Apr 17, 2017 | |
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.