v3.26.1
Note 14 - Segment Reporting
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 14. Segment Reporting

 

On September 8, 2025, HOPE completed the previously announced acquisition of Dura, and a revenue-generating clinical organization. Following the acquisition, the Company began generating patient service revenue through Dura’s operations. As a result, the Company now operates in two reportable segments, consistent with the manner in which the Chief Executive Officer, who is designated as the Company’s CODM, evaluates the Company’s performance and allocates resources. The Company’s operations consist of (i) the development of novel therapeutics for the treatment of central nervous system disorders, including suicidal depression, chronic pain, PTSD, and schizophrenia, and (ii) the operation of a clinical services business through Hope.

 

The Company generated $1,101,000 and $2,169,000 in revenues, respectively, during the three and six months ended June 30, 2026, respectively. The revenue for the three and six months ended June 30, 2026 represents the revenue generated from Dura. The CODM evaluates performance based on operating expenses and monitors key expense categories related to the Company’s research and development activities, as well as general and administrative functions. While the Company has commenced revenue‑generating activities, operating expenses remain a primary focus of management given the Company’s ongoing investment in research and development and corporate infrastructure.

 

The CODM does not separately evaluate performance by geographic region or product line, as the Company has limited operations due to the current liquidity and funding of the Company. The Company’s operations are conducted solely within the U.S.

 

Significant Segment Information

 

All of the Company’s assets relate to these two operating segments, see the accompanying balance sheets excerpt below.

 

All of the Company’s operating expenses, which consist of cost of patient services, research and development, general and administrative expenses, and depreciation and amortization expenses, relate to this single operating segment, see the accompanying statements of operations.

 

The following table reconciles the loss from operations to total loss for the three months ended June 30, 2026 and 2025 (in thousands):

 

          

For the three months ended

 
          

June 30,

 

Expense Category

 

NRx

  

Dura

  

2026

  

2025

 

(Loss) Income from operations

 $(6,603) $98  $(6,505) $(3,730)

Interest income

  1   (7)  (6)  (2)

Interest expense

  240   —   240   — 

Change in fair value of convertible notes payable

  —   —   —   5,565 

Change in fair value of warrant liabilities

  9,784   —   9,784   6,414 

Loss on convertible note conversions

  —   —   —   1,874 

Income from equity method investments

  (3)  —   (3)  — 

Net loss

 $(16,625) $105  $(16,520) $(17,581)

 

The following table reconciles the loss from operations to total loss for the six months ended June 30, 2026 and 2025 (in thousands):

 

          

For the six months ended

 
          

June 30,

 

Expense Category

 

NRx

  

Dura

  

2026

  

2025

 

(Loss) Income from operations

 $(11,432) $182  $(11,250) $(7,577)

Interest income

  —   (11)  (11)  (6)

Interest expense

  470   —   470   — 

Change in fair value of convertible notes payable

  —   —   —   6,530 

Change in fair value of warrant liabilities

  6,246   —   6,246   3,518 

Loss on issuance of Registered Direct Offering

  —   —   —   729 

Loss on Consideration Shares and Warrants

  —   —   —   1,277 

Loss on convertible note conversions

  —   —   —   3,467 

Income from equity method investments

  (5)  —   (5)  — 

Net loss

 $(18,143) $193  $(17,950) $(23,092)

 

Long-lived assets consist of property, furniture and equipment which are included in property and equipment, net in the balance sheet. Long-lived assets by year are as follows (in thousands):

 

          

As of

 
  

NRx

  

Dura

  

June 30,

2026

  

December 31,

2025

 

Medical equipment

 $46  $57  $103  $57 

Computer equipment

  40   4   44   32 

Aircraft

  712   —   712   — 

Furniture and fixtures

  56   4   60   4 

Leasehold improvements

  71   —   71   — 

Total property and equipment

 $925  $65  $990  $93 

Less: Accumulated depreciation

  (52)  (19)  (71)  (30)

Property and equipment, net

 $873  $46  $919  $63