| SEGMENT REPORTING |
NOTE 13 – SEGMENT REPORTING
The Company operates as a single reportable segment, as the Chief
Operating Decision Maker (“CODM”), the Chief Executive Officer (“CEO”), evaluates the business as a whole and does
not receive discrete financial information for separate business units. The CODM is responsible for evaluating financial results and making
resource allocation decisions.
Measure of Segment Profit or Loss
The CODM assesses the Company's financial performance based on operating
loss, which aligns with the amount reported in the statements of comprehensive loss. The following table presents a reconciliation of
segment operating loss to net loss for the three- and six-months period ended June 30, 2025 and 2024:
| Schedule of reconciliation of segment operating loss | |
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| | |
| |
|
|
Three Months Ended
June 30, 2025 |
|
|
Three Months Ended
June 30, 2024 |
|
|
Six Months Ended
June 30, 2025 |
|
|
Six Months Ended
June 30, 2024 |
|
| | |
| | |
| | |
| | |
| |
| NET SALES | |
$ | 25,605 | | |
$ | 19,355 | | |
$ | 48,522 | | |
$ | 49,772 | |
| | |
| | | |
| | | |
| | | |
| | |
| COST OF SALES | |
| 3,463 | | |
| — | | |
| 5,491 | | |
| 5,175 | |
| | |
| | | |
| | | |
| | | |
| | |
| OPERATING EXPENSES | |
| | | |
| | | |
| | | |
| | |
| Research and development | |
| 2,641,941 | | |
| 4,362,258 | | |
| 5,731,159 | | |
| 8,982,920 | |
| General and administrative | |
| 2,985,883 | | |
| 1,896,672 | | |
| 4,822,935 | | |
| 3,152,122 | |
| | |
| 5,627,824 | | |
| 6,258,930 | | |
| 10,554,094 | | |
| 12,135,042 | |
| | |
| | | |
| | | |
| | | |
| | |
| SEGMENT OPERATING LOSS | |
| (5,605,682 | ) | |
| (6,239,575 | ) | |
| (10,511,063 | ) | |
| (12,090,445 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| OTHER INCOME (EXPENSE) | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 168,253 | | |
| 251,730 | | |
| 356,101 | | |
| 505,066 | |
| Commitment fee | |
| (235,801 | ) | |
| (28,982 | ) | |
| (243,830 | ) | |
| (105,959 | ) |
| Gain (loss) on disposal of property and equipment | |
| — | | |
| — | | |
| 28,800 | | |
| (3,166 | ) |
| Other income (expense) | |
| 1,098 | | |
| (2,857 | ) | |
| 836 | | |
| (5,091 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| NET LOSS | |
$ | (5,672,132 | ) | |
$ | (6,019,684 | ) | |
$ | (10,369,156 | ) | |
$ | (11,699,595 | ) |
Significant Segment Expenses
The Company considers the following as significant expenses in evaluating
its segment performance:
| • | | Research and Development: includes costs related to personnel, laboratory and wafer fabrication
materials and supplies, prototype device development and wafer fabrication expenses, and third-party consulting costs aimed at developing
high-performance electro-optic polymer materials. |
| • | | General and Administrative: includes personnel costs, professional fees, and other overhead
expenses. |
| • | | Cost of Sales: represents labor costs, material costs and manufacturing overhead costs associated
with the production of materials transferred to the customer under the technology license and material supply agreement at the Company’s
facility. |
Entity-Wide Disclosures
| • |
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Geographic Revenue Information: For the three and six months ended June 30, 2025, 100% of the Company’s net sales were generated internationally. For the three months ended June 30, 2024, 100% of the Company's net sales were generated internationally. For the six months ended June 30, 2024, 28% of the Company's net sales were generated in the United States and 72% internationally. |
| • |
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Major Customers: The Company has one customer that accounted for 10% or more of total revenue. |
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