| SEGMENT AND GEOGRAPHIC AREA INFORMATION |
NOTE J — SEGMENT INFORMATION As detailed in Note B above, the Company currently has three reportable segments; (1) Therapeutic DNA Production Services, (2) Digital Asset Treasury, and (3) DNA Tagging and Security Products and Services. Resources are allocated by our CEO, and CFO whom, collectively the Company has determined to be our CODM. As a result of the strategic restructuring during the fiscal year ended September 30, 2025, regarding the closure of its clinical laboratory, effective June 27, 2025, the Company’s MDx Testing Services segment is being reported in discontinued operations. Information regarding operations by segment for the three-months ended March 31, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | DNA Tagging and | | | | | | | Production | | Security Products | | Digital Asset Treasury | | Consolidated | Revenues: | | | | | | | | | | | | | Product revenues | | $ | 638,423 | | $ | 369,480 | | $ | — | | $ | 1,007,903 | Service revenues | | | — | | | 16,208 | | | — | | | 16,208 | Less intersegment revenues | | | — | | | — | | | — | | | — | Total revenues | | $ | 638,423 | | $ | 385,688 | | $ | — | | $ | 1,024,111 | | | | | | | | | | | | | | Gross profit | | | 474,858 | | | 351,928 | | | — | | $ | 826,786 | | | | | | | | | | | | | | Segment operating expenses | | | | | | | | | | | | | Selling, general and administrative | | $ | 106,894 | | $ | 71,577 | | $ | 734,934 | | $ | 913,405 | Realized gain on derivative written call options | | | (21,573) | | | | | | | | | (21,573) | Loss from fair value measurement of digital assets | | | — | | | — | | | 2,086,347 | | | 2,086,347 | Loss from fair value measurement of investments | | | — | | | — | | | 2,548,799 | | | 2,548,799 | Research and development | | | 364,667 | | | 19,227 | | | — | | | 383,894 | Total segment operating expenses | | $ | 449,988 | | $ | 90,804 | | $ | 5,370,080 | | $ | 5,910,872 | Income (loss) from segment operations (a) | | $ | 24,870 | | $ | 261,124 | | $ | (5,370,080) | | $ | (5,084,086) |
Information regarding operations by segment for the three-months ended March 31, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | DNA Tagging and | | | MDx Testing | | | | | Production | | Security Products | | Services and Kits | | Consolidated | Revenues: | | | | | | | | | | | | | Product revenues | | $ | 419,412 | | $ | 129,226 | | $ | — | | $ | 548,638 | Service revenues | | | 47,797 | | | 166,387 | | | — | | | 214,184 | Clinical laboratory service revenues | | | — | | | — | | | 221,272 | | | 221,272 | Less intersegment revenues | | | — | | | — | | | (720) | | | (720) | Total revenues | | $ | 467,209 | | $ | 295,613 | | $ | 220,552 | | $ | 983,374 | | | | | | | | | | | | | | Gross profit | | | 290,735 | | | 132,395 | | | (52,283) | | | 370,847 | Segment operating expenses | | | | | | | | | | | | | Selling, general and administrative | | $ | 1,053,968 | | $ | 329,904 | | $ | 298,839 | | $ | 1,682,711 | Research and development | | | 652,473 | | | 60,127 | | | 73,129 | | | 785,729 | Total segment operating expenses | | $ | 1,706,441 | | $ | 390,031 | | $ | 371,968 | | $ | 2,468,440 | Loss from segment operations (a) | | $ | (1,415,706) | | $ | (257,636) | | $ | (424,251) | | $ | (2,097,593) |
NOTE J – SEGMENT INFORMATION, continued Reconciliation of segment loss from operations to consolidated loss before provision for income taxes is as follows for the three months ended: | | | | | | | | | | | | | | | | March 31, | | | 2026 | | 2025 | Loss from operations of reportable segments (a) | | $ | (5,084,086) | | $ | (2,097,593) | General corporate expenses (b) | | | (1,666,497) | | | (1,364,202) | Interest income | | | 3,761 | | | 60,340 | Unrealized gain on change in fair value of warrants classified as a liability | | | — | | | 68,430 | Other income (expense), net | | | 81,663 | | | (3,095) | Consolidated loss before provision for income taxes | | $ | (6,665,159) | | $ | (3,336,120) |
(a) | Segment operating loss consists of net sales, less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses. |
(b) | General corporate expenses consist of Selling, general and administrative expenses that are not specifically identifiable to a segment. |
Information regarding operations by segment for the six-months ended March 31, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | DNA Tagging and | | | | | | | | Production | | Security Products | | Digital Asset Treasury | | Consolidated | Revenues: | | | | | | | | | | | | | Product revenues | | $ | 1,088,971 | | $ | 474,025 | | $ | — | | $ | 1,562,996 | Service revenues | | | 1,263 | | | 25,246 | | | — | | | 26,509 | Clinical laboratory service revenues | | | — | | | — | | | — | | | — | Less intersegment revenues | | | — | | | — | | | — | | | — | Total revenues | | $ | 1,090,234 | | $ | 499,271 | | $ | — | | $ | 1,589,505 | | | | | | | | | | | | | | Gross profit | | | 783,468 | | | 358,675 | | | — | | | 1,142,143 | Segment operating expenses | | | | | | | | | | | | | Selling, general and administrative | | $ | 624,386 | | $ | 118,557 | | $ | 10,591,028 | | $ | 11,333,971 | Realized gain on derivative written call options | | | — | | | — | | | (21,573) | | | (21,573) | Loss from fair value measurement of digital assets | | | — | | | — | | | 3,818,904 | | | 3,818,904 | Loss from fair value measurement of investments | | | — | | | — | | | 6,032,808 | | | 6,032,808 | Research and development | | | 786,641 | | | 44,070 | | | — | | | 830,711 | Total segment operating expenses | | $ | 1,411,027 | | $ | 162,627 | | $ | 20,421,167 | | | 21,994,821 | (Loss) income from segment operations (a) | | $ | (627,559) | | $ | 196,048 | | $ | (20,421,167) | | $ | (20,852,678) |
NOTE J — SEGMENT INFORMATION continued Information regarding operations by segment for the six months ended March 31, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | DNA Tagging and | | MDx Testing | | | | | | Production | | Security Products | | Services and Kits | | Consolidated | Revenues: | | | | | | | | | | | | | Product revenues | | $ | 507,408 | | $ | 537,077 | | $ | — | | $ | 1,044,485 | Service revenues | | | 107,242 | | | 481,386 | | | — | | | 588,628 | Clinical laboratory service revenues | | | — | | | — | | | 548,438 | | | 548,438 | Less intersegment revenues | | | | | | | | | (1,560) | | | (1,560) | Total revenues | | $ | 614,650 | | $ | 1,018,463 | | $ | 546,878 | | $ | 2,179,991 | | | | | | | | | | | | | | Gross profit | | | 403,233 | | | 649,758 | | | 1,963 | | | 1,054,954 | | | | | | | | | | | | | | Segment operating expenses | | | | | | | | | | | | | Selling, general and administrative | | $ | 1,856,769 | | $ | 1,038,060 | | $ | 551,924 | | $ | 3,446,753 | Research and development | | | 1,424,798 | | | 197,776 | | | 136,766 | | | 1,759,340 | Total segment operating expenses | | $ | 3,281,567 | | $ | 1,235,836 | | $ | 688,690 | | $ | 5,206,093 | Loss from segment operations (a) | | $ | (2,878,334) | | $ | (586,078) | | $ | (686,727) | | $ | (4,151,139) |
Reconciliation of segment loss from operations to consolidated loss before provision for income taxes is as follows for the six months ended: | | | | | | | | | | | | | | | | | | March 31, | | | | 2026 | | 2025 | | Loss from operations of reportable segments | | $ | (20,852,678) | | $ | (4,151,139) | | General corporate expenses (b) | | | (4,606,186) | | | (2,274,657) | | Interest income | | | 12,904 | | | 131,780 | | Unrealized gain on change in fair value of warrants classified as a liability | | | 370 | | | 312,430 | | Other income (expense), net | | | 174,249 | | $ | (23,247) | | Consolidated net loss | | $ | (25,271,341) | | $ | (6,004,833) | |
(a) | Segment operating loss consists of net sales, less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses. |
(b) | General corporate expenses consist of Selling, general and administrative expenses that are not specifically identifiable to a segment. |
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NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION As detailed in Note C above, the Company currently has two reportable segments. (1) Therapeutic DNA Production Services and (2) DNA Tagging and Security Products and Services. For the fiscal year ended September 30, 2024, the MDx Testing Services segment is also presented. Resources are allocated by our CEO and CFO whom, collectively the Company has determined to be our CODM. Information regarding operations by segment for the fiscal year ended September 30, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | DNA Tagging and | | | | | Production | | Security Products | | Consolidated | Revenues: | | | | | | | | | | Product revenues | | $ | 828,806 | | $ | 595,341 | | $ | 1,424,147 | Service revenues | | | 159,312 | | | 553,476 | | | 712,788 | Total revenues | | $ | 988,118 | | $ | 1,148,817 | | $ | 2,136,935 | | | | | | | | | | | Gross profit | | $ | 336,666 | | $ | 502,241 | | $ | 838,907 | Segment operating expenses | | | | | | | | | | Selling, general and administrative | | $ | 4,203,069 | | $ | 1,273,113 | | $ | 5,476,182 | Research and development | | | 5,436,239 | | | 140,267 | | | 5,576,506 | Total segment operating expenses | | $ | 9,639,308 | | $ | 1,413,380 | | $ | 11,052,688 | (Loss) income from segment operations (a) | | $ | (9,302,642) | | $ | (911,139) | | $ | (10,213,781) |
Depreciation expense for the fiscal year ended September 30, 2025 was $344,008 for the Therapeutic DNA Production and Services segment and $40,157 for the DNA Tagging and Security Products and Services segment. Information regarding operations by segment for the fiscal year ended September 30, 2024 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Therapeutic DNA | | MDx Testing | | DNA Tagging and | | | | | | Production | | Services and Kits | | Security Products | | Consolidated | Revenues: | | | | | | | | | | | | | Product revenues | | $ | 560,000 | | $ | — | | $ | 514,813 | | $ | 1,074,813 | Service revenues | | | 335,354 | | | — | | | 703,323 | | | 1,038,677 | Clinical laboratory service revenues | | | — | | | 1,330,849 | | | — | | | 1,330,849 | Less intersegment revenues | | | — | | | (12,920) | | | — | | | (12,920) | Total revenues | | $ | 895,354 | | $ | 1,317,929 | | $ | 1,218,136 | | $ | 3,431,419 | | | | | | | | | | | | | | Gross profit | | $ | 678,167 | | $ | (49,831) | | $ | 388,543 | | $ | 1,016,879 | Segment operating expenses | | | | | | | | | | | | | Selling, general and administrative | | $ | 3,065,288 | | $ | 1,127,462 | | $ | 2,245,935 | | $ | 6,438,685 | Research and development | | | 2,402,151 | | | 311,927 | | | 694,585 | | | 3,408,663 | Total segment operating expenses | | $ | 5,467,439 | | $ | 1,439,389 | | $ | 2,940,520 | | $ | 9,847,350 | (Loss) income from segment operations (a) | | $ | (4,789,272) | | $ | (1,489,220) | | $ | (2,551,977) | | $ | (8,830,469) |
Depreciation expense for the fiscal year ended September 30, 2024 was $164,275 for the Therapeutic DNA Production and Services segment and $266,677 for the DNA Tagging and Security Products and Services segment. NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION, continued Reconciliation of segment loss from operations to corporate net loss: | | | | | | | | | | | | | | | | | | September 30, | | | | 2025 | | 2024 | | Loss from operations of reportable segments | | $ | (10,213,781) | | $ | (8,830,469) | | General corporate expenses (b) | | | (5,834,814) | | | (5,194,296) | | Interest income | | | 192,915 | | | 176,301 | | Unrealized gain on change in fair value of warrants classified as a liability | | | 319,630 | | | 9,430,000 | | Unrealized loss on change in fair value of warrants classified as a liability - warrant modification | | | — | | | (394,000) | | Transaction costs allocated to warrant liabilities | | | — | | | (633,198) | | Loss on issuance of warrants | | | — | | | (1,633,767) | | Income tax benefit | | | 684,115 | | | — | | Net loss from discontinued operations | | | (392,731) | | | — | | Other income (expense), net | | | (106,580) | | $ | (8,877) | | Consolidated net loss | | $ | (15,349,246) | | $ | (7,088,306) | |
| (a) | Segment operating loss consists of net sales less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses. |
| (b) | General corporate expenses consists of Selling, general and administrative expenses that are not specifically identifiable to a segment. |
The Company attributes net revenues from external customers according to the geographic location of the customer. Net revenues by geographic location of customers are as follows: | | | | | | | | | | | | | | | | Year Ended September 30, | | | 2025 | | 2024 | Americas | | $ | 1,010,795 | | $ | 951,896 | Europe | | | 105,584 | | | 172,369 | Asia and other | | | 1,020,556 | | | 989,225 | Total | | $ | 2,136,935 | | $ | 2,113,490 |
All long-lived assets are located in the United States.
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