v3.26.1
Note 11 - Segments
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

11. Segments

 

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the CODM, or decision-making group, in deciding how to allocate resources in assessing performance. CervoMed Inc. has one reportable segment which consists of clinical trials and nonclinical studies related to the development of product candidates for treatments for age-related neurologic disorders and other medical indications. The Company’s CODM is the Chief Executive Officer.

 

The accounting policies of the Company’s single segment are the same as those described in the summary of significant accounting policies. 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. The CODM assesses the financial performance for the Company's segment based on net loss. The CODM also uses internal budget versus forecasted expense and cash forecast models in making certain decisions. Such models are reviewed to assess the entity-wide/single-segment operating results and performance, including how long cash-on-hand is expected to be sufficient. The measure of segment assets is reported on the consolidated balance sheet as total assets. The segment measure of loss is reported on the condensed consolidated interim statement of operations and comprehensive loss as net loss.

 

The table below summarizes the significant expense categories regularly reviewed by the CODM for the three months ended March 31, 2026 and 2025 (unaudited):

 

   

Three Months Ended March 31,

  
   

2026

    

2025

  

Grant revenue

   $ —     $ 1,917,491  

Research and development expenses:

                

Dementia with Lewy bodies

     746,745       2,157,831  

Frontotemporal disorders (incl. nfvPPA)

     467,963       146,273  

Recovery after stroke

     308,951       252,542  

Other clinical* and nonclinical

     1,031,918       675,391  

Personnel costs, excluding stock-based compensation

     978,913       773,724  

Stock-based compensation

     126,710       123,702  

Other research and development expenses, including CMC**

     1,474,219       708,335  

Total research and development expenses

     5,135,419       4,837,798  

General and administrative expenses:

                

Personnel costs, excluding stock-based compensation

     1,316,430       1,111,094  

Stock-based compensation

     222,486       237,465  

Professional fees

     1,102,801       729,570  

Insurance, taxes and similar fees

     214,764       219,586  

Other general and administrative expenses, including IT, facilities, supplies and similar costs

     118,624       84,862  

Total general and administrative expenses

     2,975,105       2,382,577  

Other income

     146,366       408,850  

Net loss

   $ (7,964,158 )   $ (4,894,034 )

 

* - Includes early-stage clinical studies that are not indication-specific and related costs.

 

** - Includes, among other things, CMC-related costs, shipping, packaging and storage costs, certain consulting costs, and other miscellaneous research development expenses.