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

13. Segment Information

 

The Company evaluates the following factors to identify its reportable segments: (i) nature of products and services, (ii) type of customer for the products and services, (iii) sales, production and distribution methods of the products and services and (iv) the nature of the regulatory environment, if applicable. Based on an evaluation of these factors, management concluded that the Company’s operations are managed through one reportable segment, IB-STIM, that derives its revenues in the United States from a PENFS device that is used to treat patients 8 years of age and older with functional abdominal pain associated with irritable bowel syndrome and with functional abdominal pain associated with functional dyspepsia and related nausea symptoms. The accounting policies of the IB-STIM segment are the same as those described in the Summary of Significant Accounting Policies (see Footnote 2). The Chief Operating Decision Maker (“CODM”) regularly evaluates the performance of the IB-STIM segment for the purpose of allocating resources based on net sales and operating loss, both of which are reported in the Condensed Statements of Operations. The CODM uses net sales to evaluate IB-STIM’s adoption and utilization by insurance carriers and physicians. As NeurAxis is an emerging growth company, operating loss is used to monitor the Company’s cost structure in order to achieve future segment profitability. Both net sales and operating loss are measured against the budget on a periodic basis to assess achievement toward annual compensation incentive targets. The Company’s CODM is its Chief Executive Officer.

 

 

The following reconciles the reportable segment net sales and operating loss to the Company’s reported net loss:

 

   2026   2025   2026   2025 
   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Net Sales  $1,928,695   $894,086   $3,536,578   $1,789,741 
COGS   272,573    146,643    490,939    286,118 
Gross Profit   1,656,122    747,443    3,045,639    1,503,623 
Selling Expenses (a)   861,387    534,013    1,685,724    1,034,131 
Research & Development (a)   274,344    115,197    373,911    222,201 
Compensation and Benefits (a)   1,798,108    1,161,026    3,210,773    2,235,013 
Professional Services (a) (b)   462,286    283,730    898,589    701,308 
Legal Settlement   -    11,471    -    630,568 
Depreciation   8,370    10,264    16,404    13,998 
Amortization   8,280    2,621    16,564    5,243 
Other Operating Expenses (a) (c)   368,059    346,979    709,065    674,116 
Segment Operating Loss   (2,124,712)   (1,717,858)   (3,865,391)   (4,012,955)
Interest Expense   (19,794)   (13,434)   (45,983)   (15,672)
Change in Fair Value of Warrant Liability   2,449    (119)   (29,057)   1,712 
Other Income   56,311    40,993    93,253    57,813 
Total Other Income, Net   38,966    27,440    18,213    43,853 
Net Loss  $(2,085,746)  $(1,690,418)  $(3,847,178)  $(3,969,102)

 

  (a) The significant expense categories and amounts align with the segment-level information provided on a regular basis to the CODM.
  (b) Professional services include legal, audit, market access and investor relations expenses.
  (c) Other operating expenses include rent and utilities, insurance, travel, software subscription fees, board fees and bad debt expense.

 

Total segment assets for IB-STIM amounted to $9,996,160 and $6,404,036 as of June 30, 2026 and December 31, 2025, respectively. Total segment capital expenditures for IB-STIM amounted to $106,303 and $7,288 for the three months ended June 30, 2026 and 2025, respectively, and $106,303 and $25,288 for the six months ended June 30, 2026 and 2025, respectively. Total segment depreciation and amortization amounted to $16,650 and $12,885 for the three months ended June 30, 2026 and 2025, respectively, and $32,968 and $19,241 for the six months ended June 30, 2026 and 2025, respectively.

 

Significant segment non-cash charges settled in common stock include (i) consulting and advisory fees totaling $399,995 and $112,493 for the six months ended June 30, 2026 and 2025, respectively, (ii) RSU grants totaling $300,400 and $0 for the three months ended June 30, 2026 and 2025, respectively, and $305,934 and $0 for the six months ended June 30, 2026 and 2025, respectively.