v3.26.1
Note 8 - Segment Reporting
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 8. Segment Reporting

 

The Company conducts business as one operating and reportable segment relating to the research and development of the Company’s NPS technology. The Company’s chief executive officer, who is the chief operating decision maker (“CODM”), views the Company’s operations and manages its business in one operating segment. The CODM uses the Company’s consolidated net loss to monitor actual results as compared to the budget in assessing segment performance and allocation of resources. Managing and allocating resources on an entity-wide basis enables the CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development projects that are in line with the Company’s long-term company-wide strategic goals. Consistent with this decision-making process, the CODM uses financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources, and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The CODM is regularly provided with more detailed expense information than what is included in our condensed consolidated statement of operations and comprehensive loss. All product sales are in the United States and there are no significant groupings of product revenue the CODM considers or reviews when making operating decisions and assessing performance.

 

To align with the significant expenses provided to the CODM for the three months ended June 30, 2026, prior period significant expenses have been recast to conform with current period presentation. Previously facilities and IT costs were included within general and administration expenses. Beginning April 1, 2026, facilities and IT costs are allocated across the significant expense categories based on the allocation methodology used within our GAAP income statement presentation. The recast of prior period information had no impact on the Company’s condensed consolidated balance sheets, statements of operations, or statements of cash flows. See Item 5 – Other Information for the reclassified presentation of the Company’s prior period segment reporting disclosure.

 

The table below shows a reconciliation of the Company’s net loss, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP to the Company’s total net loss in the condensed consolidated statements of operations (in thousands):

 

  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Product revenue

 $434  $—  $835  $— 
                 

Adjusted cost of product revenue1

  245   —   571   — 

Cross platform research and engineering2

  6,078   4,585   11,258   8,535 

R&D manufacturing and engineering3

  3,201   2,941   5,550   4,736 

Clinical and regulatory4

  5,127   2,183   8,387   3,943 

General and administrative5

  4,548   2,742   8,490   5,461 

Sales and marketing6

  1,279   2,362   3,607   4,218 
Other segment items7  5,228   5,462   7,394   11,426 

Total other income, net

  (615)  (1,107)  (1,184)  (2,356)

Net loss

 $(24,657) $(19,168) $(43,238) $(35,963)

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1. Adjusted cost of product revenue includes material costs, cash compensation costs, fees paid to consultants and outside service providers and organizations, and other expenses relating to manufacturing the Company’s commercial products. It does not include stock-based compensation, depreciation, amortization — see descriptions of Other segment items in footnote 7 below.

2. Cross platform research and engineering includes compensation costs, fees paid to consultants and outside service providers and organizations, prototype spending and other expenses relating to the acquisition, design and development of the Company’s clinical stage devices.

3. R&D manufacturing and engineering includes compensation costs, fees paid to consultants and outside service providers and organizations, and costs associated with the procurement of materials and the manufacturing of the Company’s clinical stage devices.

4. Clinical and regulatory includes compensation costs, fees paid to consultants and outside service providers and organizations, and costs associated with clinical trials and regulatory approvals required for the development of the Company’s clinical stage devices.

5. General and administrative includes compensation costs and fees paid to consultants and outside service providers and organizations in support of the administrative functions of the Company, including finance, legal, and human resources.

6. Sales and marketing includes compensation costs, fees paid to consultants and outside service providers and organizations, costs associated with marketing and sales strategy as well as execution of marketing and sales initiatives for the Company’s products.

7. Other segment items includes stock-based compensation, depreciation and amortization.

 

As of June 30, 2026 and December 31, 2025, all of the Company’s long-lived assets are located in the United States.