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Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments

NOTE 6. SEGMENTS

Operating segments are identified as components of an entity about which separate discrete financial information is available for evaluation by the Chief Operating Decision Maker ("CODM"), or decision-making group, in making decisions on how to allocate resources and assess performance. The Company's CODM, the President and Chief Executive Officer, views the Company's operations as one operating segment, which is focused on identifying and developing therapeutics that address cardiovascular and pulmonary diseases with high unmet medical need, with an initial therapeutic focus on pulmonary hypertension. The Company does not have revenue in the current comparative period, incurs expenses primarily in the United States and manages the business activities on a consolidated basis.

The accounting policies of the cardiovascular and pulmonary therapeutics segment are the same as those described in the summary of significant accounting policies.

The CODM assesses performance for the cardiovascular and pulmonary therapeutics segment and decides how to allocate resources based on net loss that also is reported on the income statement as consolidated net loss. The measure of segment assets is reported on the balance sheet as cash and cash equivalents.

The Company has not generated any product revenue in the current period and expects to continue to incur significant expenses and operating losses for the foreseeable future as the Company advances its product candidates through all stages of development and clinical trials.

As such, the CODM uses cash forecast models in deciding how to invest into the cardiovascular and pulmonary therapeutics segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results, net cash used in operating activities for the period and cash on hand are used in assessing performance of the segment.

The table below summarizes the significant expense categories regularly reviewed by the CODM for the three and six months ended June 30, 2025 and 2024 (in thousands).

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

   Research and development

$

6,121

 

 

$

2,327

 

 

$

11,804

 

 

$

5,003

 

   General and administrative

 

5,671

 

 

 

1,344

 

 

 

11,326

 

 

 

2,577

 

Total operating expenses

$

11,792

 

 

$

3,671

 

 

$

23,130

 

 

$

7,580

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss

 

(11,792

)

 

 

(3,671

)

 

 

(23,130

)

 

 

(7,580

)

Other segment items (a)

 

 

 

 

 

 

 

 

 

 

 

   Interest income

 

954

 

 

 

104

 

 

 

1,884

 

 

 

222

 

   Interest expense

 

-

 

 

 

(9

)

 

 

-

 

 

 

(17

)

   Other income (expense), net

 

(9

)

 

 

1

 

 

 

(9

)

 

 

1

 

Net loss (b)

$

(10,847

)

 

$

(3,575

)

 

$

(21,255

)

 

$

(7,374

)
(a)
Other segment items included in segment loss includes interest income and interest expense.
(b)
The Company is a single operating segment and therefore the measure of segment net loss is the same as consolidated net loss and does not require reconciliation.

For the six months ended June 30, 2025 and 2024, the net cash used in operating activities was $13.2 million and $8.2 million, respectively. The table below summarizes the significant asset categories regularly reviewed by the CODM at June 30, 2025 and June 30, 2024 (in thousands).

 

June 30, 2025

 

 

June 30, 2024

 

 

Assets:

 

 

 

 

 

 

Cash and cash equivalents

$

105,462

 

 

$

9,384