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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 15 – SEGMENT REPORTING

 

Factors used to identify the Company’s reportable segments include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance. The Company’s operating segments have been broken out based on similar economic and other qualitative criteria. The Company operates all reporting segments in one geographical area (the United States).

 

The Company’s chief operating decision-makers are its co-Chief Executive Officers (together, the “CODM”), who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis. There are no segment managers who are held accountable by the CODM for any planning, strategy and key decision-making regarding operations. Accordingly, as of June 30, 2026, the Company has a single reportable segment and operating segment structure. The Company operates entirely within the United States.

 

The key measures of segment profit or loss reviewed by the CODM are total revenues, gross profit, total operating expenses (including research and development expenses), and net loss from continuing operations. The CODM uses these measures to allocate resources, evaluate operational performance, and make strategic decisions regarding pipeline development and commercialization activities. The CODM does not evaluate performance based on asset information at the segment level. Significant segment expenses that are regularly provided to the CODM and included in the reported measure of segment profit or loss include: research and development expenses (SCN-102: $504K; SCN-104: $316K; SCN-106: $346K for the three months ended June 30, 2026, and SCN-102: $545K; SCN-104: $427K; SCN-106: $989K for the six months ended June 30, 2026); wage and salary expense of $411,411 and $831,419; professional fees of $963,752 and $1,896,304; and accounting and legal expense of $117,815 and $443,993, in each case for the three and six months ended June 30, 2026, respectively. Other segment items not separately disclosed include technology expense of $7,139 and $22,902, general and administrative expense (including stock-based compensation) of $368,790 and $1,443,654, and depreciation and amortization of $461,571 and $929,585, in each case for the three and six months ended June 30, 2026, respectively.

 

The following table presents key financial information for the Company’s single reportable segment for the three and six months ended June 30, 2026 and 2025:

 

   2026   2025   2026   2025 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Revenues  $343,639   $-   $399,964   $10,258 
Cost of sales   7,860    -    10,335    9,585 
Gross profit   335,779    -    389,629    673 
Research and development expense   1,166,605    843,549    1,960,589    1,418,228 
Total operating expenses   3,035,512    5,157,906    6,598,861    8,729,896 
Operating loss   (2,699,733)   (5,157,906)   (6,209,232)   (8,729,223)
Net loss   (2,822,371)   (6,720,573)   (6,224,635)   (9,784,570)
Total assets (at period end)   87,734,007    84,178,330    87,734,007    84,178,330