| SEGMENT INFORMATION |
NOTE 10 — SEGMENT INFORMATION
The Company operates as a single reportable segment, consisting of the design and development of innovative neurostimulation products. The Company’s focus is on treating mental health conditions without reliance on drugs or psychotherapy.
Consistent with its operational structure, the Chief Executive Officer, who serves as the chief operating decision maker (“CODM”), manages and allocates resources on a consolidated basis. Financial performance is evaluated based on consolidated net loss, which is also the primary measure used to allocate resources, assess operational performance, set targets, forecast results, and guide strategic decisions, including investments in research and development and commercialization activities.
The CODM monitors segment performance using consolidated net loss and total consolidated assets, which are reported on the unaudited condensed consolidated statements of operations and balance sheets, respectively. Consolidated net loss is compared against budgeted amounts on a quarterly basis to evaluate performance.
The following table summarizes financial information for the Company’s single reportable segment and reconciles to unaudited condensed consolidated net loss:
| Schedule of segment reporting information |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Total revenues |
|
|
|
|
|
|
|
|
| US |
|
$ |
12,161 |
|
|
$ |
11,112 |
|
| International |
|
|
- |
|
|
|
59,476 |
|
| Total revenues |
|
|
12,161 |
|
|
|
70,588 |
|
| Less: |
|
|
|
|
|
|
|
|
| Cost of revenues (excluding amortization and depreciation) |
|
|
3,264 |
|
|
|
22,838 |
|
| Research and development expense
(excluding stock based compensation expense): |
|
|
|
|
|
|
|
|
| Clinical trials |
|
|
457,975 |
|
|
|
60,226 |
|
| EDC Build |
|
|
53,795 |
|
|
|
61,950 |
|
| Halo project |
|
|
20,780 |
|
|
|
90,534 |
|
| SYNC project |
|
|
16,451 |
|
|
|
11,700 |
|
| Other research and development |
|
|
15,479 |
|
|
|
1,364 |
|
| Selling, general and administrative and Salaries and benefits expense (excluding stock based compensation, depreciation and amortization expense) |
|
|
852,838 |
|
|
|
687,011 |
|
| Depreciation |
|
|
2,738 |
|
|
|
- |
|
| Amortization |
|
|
20,325 |
|
|
|
5,126 |
|
| Stock based compensation |
|
|
408,387 |
|
|
|
572,100 |
|
| Professional fees |
|
|
407,444 |
|
|
|
178,597 |
|
| Interest income, net |
|
|
(129 |
) |
|
|
(4,690 |
) |
| Other income |
|
|
(8,016 |
) |
|
|
(35,181 |
) |
| Segment net loss |
|
|
(2,239,170 |
) |
|
|
(1,580,987 |
) |
| |
|
|
|
|
|
|
|
|
| Reconciliation of net loss |
|
|
|
|
|
|
|
|
| Adjustments and reconciling items |
|
|
- |
|
|
|
- |
|
| Consolidated net loss |
|
$ |
(2,239,170 |
) |
|
$ |
(1,580,987 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
Six Months Ended
June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Total revenues |
|
|
|
|
|
|
|
|
| US |
|
$ |
27,111 |
|
|
$ |
31,555 |
|
| International |
|
|
- |
|
|
|
80,048 |
|
| Total revenues |
|
|
27,111 |
|
|
|
111,603 |
|
| Less: |
|
|
|
|
|
|
|
|
| Cost of revenues (excluding amortization and depreciation) |
|
|
5,081 |
|
|
|
36,396 |
|
| Research and development expense
(excluding stock based compensation expense): |
|
|
|
|
|
|
|
|
| Clinical trials |
|
|
656,421 |
|
|
|
121,578 |
|
| EDC Build |
|
|
109,595 |
|
|
|
80,000 |
|
| Halo project |
|
|
109,547 |
|
|
|
388,571 |
|
| SYNC project |
|
|
16,451 |
|
|
|
35,413 |
|
| Other research and development |
|
|
18,848 |
|
|
|
6,500 |
|
| Selling, general and administrative and Salaries and benefits expense (excluding stock based compensation, depreciation and amortization expense) |
|
|
1,654,742 |
|
|
|
1,309,959 |
|
| Depreciation |
|
|
6,844 |
|
|
|
- |
|
| Amortization |
|
|
27,061 |
|
|
|
9,912 |
|
| Stock based compensation |
|
|
886,998 |
|
|
|
1,208,944 |
|
| Professional fees |
|
|
902,740 |
|
|
|
546,413 |
|
| Interest income, net |
|
|
(163 |
) |
|
|
(5,793 |
) |
| Equity in net income from equity method investees |
|
|
- |
|
|
|
1,048 |
|
| Other income |
|
|
(31,047 |
) |
|
|
(58,014 |
) |
| Segment net loss |
|
|
(4,336,007 |
) |
|
|
(3,569,324 |
) |
| |
|
|
|
|
|
|
|
|
| Reconciliation of net loss |
|
|
|
|
|
|
|
|
| Adjustments and reconciling items |
|
|
- |
|
|
|
- |
|
| Consolidated net loss |
|
$ |
(4,336,007 |
) |
|
$ |
(3,569,324 |
) |
|