v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

11. Segment Reporting

 

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the Chief Operating Decision Maker (“CODM”) in deciding resource allocation and assessing performance. The Company has determined that its CODM is its Chief Executive Officer.

 

The Company has one reportable segment: hearing. The hearing segment derives revenue from the sale of the Esteem FI-AMEI implants and replacement components to Esteem FI-AMEI implants. The Company enters into arrangements with patients to provide them with the Esteem FI-AMEI device, personal programmer devices, sound processor replacements, and Battery replacements.

 

The Company derives revenue primarily in the United States and manages the business activities on a consolidated basis.

 

The accounting policies of the hearing segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the hearing segment and decides how to allocate resources based on net loss that also is reported on the unaudited condensed consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets.

 

The CODM uses net loss to evaluate the segment results in deciding whether to make investments into the hearing segment or into other parts of the entity, such as for entering into significant contracts, hiring of key management or executive personnel, making significant capital investment decisions, or changing Company-wide strategy.

 

Net loss is used to monitor budget versus actual results and assist the CODM in understanding the Company’s cash flows and liquidity position, which is critical as a development state entity. This allows the CODM to make the appropriate spending decisions for the Company.

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

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Net revenues  $78   $68   $124   $127 
Costs and operating expenses:                    
Cost of goods sold   234    245    460    398 
Research and development   2,485    2,591    5,233    4,951 
Sales and marketing   361    497    719    822 
General and administrative   2,068    1,587    3,889    3,691 
Total costs and operating expenses   5,148    4,920    10,301    9,862 
Operating loss   (5,070)   (4,852)   (10,177)   (9,735)
                     
Other segment items(1)   5    1,045    620    (291)
Interest expense, related party   (624)   (132)   (1,119)   (168)
Other expense, net   (1)   (8)   (12)   (23)
Total other income (expense), net   (620)   905    (511)   (482)
Net loss  $(5,690)  $(3,947)  $(10,688)  $(10,217)

 

(1)Other segment items include the change in fair value of forward purchase agreement put option liability, change in fair value of forward purchase agreement warrant liability, and change in fair value of publicly traded warrant liability.