v3.26.1
Note 11 - Segments
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2026 and 2025:

 

   

Three Months Ended June

30,

    

Six Months Ended June 30,

  
   

2026

    

2025

    

2026

    

2025

  

Grant revenue

   $ —     $ 1,757,724     $ —     $ 3,675,215  

Research and development expenses:

                                

Dementia with Lewy bodies

     422,614       1,815,817       1,169,359       3,973,648  

Frontotemporal disorders (incl. nfvPPA)

     495,888       411,029       963,851       557,302  

Recovery after stroke

     591,586       303,161       900,538       555,703  

Other clinical* and nonclinical

     437,749       532,532       1,469,667       1,207,923  

Personnel costs, excluding stock-based compensation

     872,925       814,878       1,851,838       1,588,602  

Stock-based compensation

     137,175       121,159       263,885       244,861  

Other research and development expenses, including CMC**

     1,363,835       1,110,049       2,838,053       1,818,384  

Total research and development expenses

     4,321,772       5,108,625       9,457,191       9,946,423  

General and administrative expenses:

                                

Personnel costs, excluding stock-based compensation

     1,130,104       1,724,775       2,446,534       2,835,869  

Stock-based compensation

     225,100       375,856       447,586       613,321  

Professional fees

     659,065       804,391       1,761,866       1,533,961  

Insurance, taxes and similar fees

     220,840       248,715       435,604       468,301  

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

     121,670       111,637       240,294       196,499  

Total general and administrative expenses

     2,356,779       3,265,374       5,331,884       5,647,951  

Other income (expense)

     1,998       (10,256 )     977       (10,391 )

Interest income

     104,897       368,127       252,284       777,112  

Net loss

   $ (6,571,656 )   $ (6,258,404 )   $ (14,535,814 )   $ (11,152,438 )

* - 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.