v3.26.1
Note 10 - Segments
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

10. Segments

 

The Company’s CODM is its Chief Executive Officer. The Company’s CODM evaluates the operating results of the Company’s reportable segments based on cash used in operations, revenues and net loss.

 

The Company follows the accounting guidance of ASC 280, Segment Reporting (“ASC 280”). Reportable operating segments are determined based on the management approach. The management approach, as defined by ASC 280, is based on the way that the CODM organizes the segments within an enterprise for making operating decisions and assessing performance. While the Company’s results of operations are primarily reviewed on a consolidated basis, the CODM manages the enterprise in two reportable segments, each with different operating and potential revenue generating characteristics.

 

The Company has two operating and reportable segments: (i) Regenerative Biotech focused on the development of regenerative medicine treatments with operations currently in the United States and (ii) Consumer Health Products relating to consumer health products with operations currently in Asia. All of the Company’s revenue was generated in Asia for the three months ended March 31, 2026 and 2025.  The following tables present segment revenues, significant expense categories provided to the Company’s CODM at least quarterly, other segment items, and net loss for the three months ended March 31, 2026 and 2025, in thousands:

 

 

Three Months Ended March 31, 2026

 
  

Regenerative Biotech

  

Consumer Health Products

  

Consolidated Total

 

Revenue

 

Product revenue

 $—  $226  $226 

Significant Expense Categories (provided to CODM)

 

Cost of sales

  —   206   206 

Research and development

  563   —   563 

Sales and marketing

  2   16   18 

General and administrative (a)

  1,044   1   1,045 

Total significant segment expenses

  1,609   223   1,832 

Other Segment Items

 

Other segment items (b)

  5   —   5 

Segment net loss

 $(1,604) $3  $(1,601)

 

 

Three Months Ended March 31, 2025

 
  

Regenerative Biotech

  

Consumer Health Products

  

Consolidated Total

 

Revenue

 

Product revenue

 $—  $45  $45 

Significant Expense Categories (provided to CODM)

 

Cost of sales

  —   33   33 

Research and development

  601   —   601 

Sales and marketing

  8   2   10 

General and administrative (a)

  1,071   —   1,071 

Total significant segment expenses

  1,680   35   1,715 

Other Segment Items

 

Other segment items (b)

  11   —   11 

Segment net loss

 $(1,669) $10  $(1,659)

 

The following table presents cash and cash equivalents and total assets by segment as of  March 31, 2026 and December 31, 2025, in thousands:

 

  March 31,  December 31, 
  

2026

  

2025

 

Cash and cash equivalents:

        

Regenerative Biotech

 $127  $1,206 

Consumer Health Products

  292   146 

Total

 $419  $1,352 
         

Total assets:

        

Regenerative Biotech

 $1,225  $2,277 

Consumer Health Products

  573   400 

Total

 $1,798  $2,677 

 

(a) Certain general and administrative costs (including executive compensation, corporate legal fees, audit fees, investor relations, and insurance) are shared across both segments. For internal reporting purposes, such costs are allocated to each segment based on an estimate of the proportion of management time and corporate resources utilized by each segment. Costs directly attributable to a segment are charged directly to that segment. For the three months ended March 31, 2026 and 2025, the Regenerative Biotech segment bore substantially all general and administrative expense, as the Consumer Health Products segment incurred minimal shared corporate overhead.


(b) “Other segment items” for the Regenerative Biotech segment consists primarily of net interest income earned on money market balances and other miscellaneous income, partially offset by interest expense on insurance premium financing. For the Consumer Health Products segment, other segment items consist of foreign currency transaction effects and other minor income items. The other segment items line represents the arithmetic difference between segment revenues, less the significant expense categories disclosed above, and the reported segment net loss, in accordance with ASC 280-10-50-26B.