v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

 

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the Chief Operating Decision Maker (“CODM”) in deciding resource allocation and assessing performance. The Company has determined that its CODM is its Chief Executive Officer.

 

The Company has one reportable segment: hearing. The hearing segment derives revenue from the sale of the Esteem FI-AMEI implants and replacement components to Esteem FI-AMEI implants. The Company enters into arrangements with patients to provide them with the Esteem FI-AMEI device, personal programmer devices, and Battery replacements.

 

The Company derives revenue primarily in the United States and manages the business activities on a consolidated basis.

 

The accounting policies of the hearing segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the hearing segment and decides how to allocate resources based on net loss that also is reported on the unaudited condensed consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets.

 

The CODM uses net loss to evaluate the results generated from segment assets (return on assets) in deciding whether to make investments into the hearing segment or into other parts of the entity, such as for entering into significant contracts, hiring of key management or executive personnel, making significant capital investment decisions, or changing Company-wide strategy.

 

Net loss is used to monitor budget versus actual results and assist the CODM in understanding the Company’s cash flows and liquidity position, which is critical as a development stage entity. This allows the CODM to make the appropriate spending decisions for the Company.

 

The following table summarizes the significant expense categories regularly reviewed by the CODM for the three and six months ended June 30, 2026 and 2025. 

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2026     2025     2026     2025  
Net revenues   $ 51     $ 78     $ 90     $ 124  
Costs and operating expenses:                                
Cost of goods sold     278       234       591       460  
Research and development     3,132       2,485       6,774       5,233  
Sales and marketing     181       361       345       719  
General and administrative     2,029       2,068       3,908       3,889  
Total costs and operating expenses     5,620       5,148       11,618       10,301  
Operating loss     (5,569 )     (5,070 )     (11,528 )     (10,177 )
Other income (expense):                                
Other segment items (a)     (579 )     5       1,023       620  
Interest expense (related party)     -       (624 )     -       (1,119 )
Other income (expense), net     166       (1 )     172       (12 )
Total other income (expense), net     (413 )     (620 )     1,195       (511 )
Net loss   $ (5,982 )   $ (5,690 )   $ (10,333 )   $ (10,688 )

 

(a) Other segment items include the change in fair value of forward purchase agreement warrant liability, loss on offering and change in fair value of private warrant liability and change in fair value of publicly traded warrant liability.