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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting

Note 12– Segment Reporting

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. The Company has one reportable segment: biotech. The biotech segment consists of the development of clinical and preclinical product candidates for the development of the Company’s proprietary new enhanced thermoacoustic technology platform. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

 

The accounting policies of the biotech segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the biotech segment based on net loss, which is reported on the income statement as consolidated net loss. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

To date, the Company has not generated any product revenue. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval.

 

As such, the CODM uses cash forecast models in deciding how to invest into the biotech 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 is used in assessing performance of the segment and in establishing management’s compensation, along with cash forecast models.

The table below summarizes the significant expense categories regularly reviewed by the CODM for the six months ended June 30, 2025, and 2024:

 

 

 

  Six Months

 

 

Six Months

 

 

 

 Ended June

 

 

Ended June

 

Operating Expenses

 

 

30,2025

 

 

 

30,2024

 

Research and development

 

$909,746

 

 

$1,757,892

 

Sales and marketing

 

 

137,825

 

 

 

401,612

 

General and administrative

 

 

1,722,801

 

 

 

2,851,890

 

Total operating expenses

 

 

2,770,372

 

 

 

5,011,394

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(2,770,372)

 

 

(5,011,394)

 

 

 

 

 

 

 

 

 

Other segment items (a)

 

 

508,130

 

 

 

6,541

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(2,262,242)

 

$(5,004,853)

 

 

 

 

 

 

 

 

 

Reconciliation of net loss

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Consolidated net loss

 

$(2,262,242)

 

$(5,004,853)

 

 

(a) Other segment items included in segment loss includes warrant expense, changes in warrant liability and interest income.