Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.2
Segment Information
 12 Months Ended
May 31, 2025
Segment Information  
Segment Information

Note 12. Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the CODM in deciding how to allocate resources to an individual segment and in assessing performance. The Company operates as a single reporting segment, focused on the clinical development of leronlimab. The Company’s measure of segment profit or loss is net earnings or loss. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM is the chief executive officer (“CEO”). The CODM manages and allocates resources to the operations of the Company on a total company basis. Managing and allocating resources on a consolidated basis enables the CEO to assess the overall level of resources available and how to best deploy these

resources across research and development projects that are in line with the Company’s long-term strategic goals. Consistent with this decision-making process, the CEO uses consolidated financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment.

The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company’s single reporting segment. A reconciliation to the consolidated net income (loss) for the years ended May 31, 2025, and 2024 is included at the bottom of the table below.

​

​

​

​

​

​

​

​

​

​

Years ended May 31,

(in thousands, except for per share data)

    

2025

    

2024

Expenses(1):

​

  

​

​

​

General and administrative expense(2)

​

$

6,434

 

$

8,403

Research and development(3)

​

 

7,278

 

 

7,240

Return of clinical expenses

​

​

(24,985)

​

​

—

Stock-based compensation expense

​

​

1,612

​

​

2,415

Operating gain (loss)

​

​

9,661

​

​

(18,058)

​

​

​

​

​

​

​

Interest income

​

​

565

​

​

217

Interest on convertible notes

​

​

(4,424)

​

​

(4,659)

Amortization of discount on convertible notes

​

​

(407)

​

​

(1,076)

Amortization of debt issuance costs

​

​

—

​

​

(572)

Issuance costs for private placement of shares and warrants through placement agent

​

​

—

​

​

(2,819)

Loss on induced conversion

​

​

(1,180)

​

​

(6,680)

Finance charges

​

​

(25)

​

​

(2,584)

Loss on note extinguishment

​

​

—

​

​

(13,374)

Gain on restructuring of payables

​

​

407

​

​

—

Loss on derivatives

​

​

(852)

​

​

(236)

Provision (benefit) for income taxes

​

​

—

​

​

—

Segment net income (loss)

​

​

3,745

​

​

(49,841)

Reconciliation of profit or loss:

​

​

​

​

​

​

Adjustments or reconciling items

​

​

—

​

​

—

Consolidated net income (loss)

​

​

3,745

​

​

(49,841)

​

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2) General and administrative expense for the years ended May 31, 2025, and 2024 is net of $0.8 million and $2.4 million of stock-based compensation expense, respectively.

(3) Research and development expense for the year ended May 31, 2025 is net of $0.8 million of stock-based compensation expense. No stock-based compensation was part of research and development expense for the year ended May 31, 2024. For the year ended May 31, 2025, research and development expense is net of $25.0 million return of clinical expenses due to the settlement with Amarex. See Note 9, Commitments and Contingencies – Legal Proceedings – Settlement of Amarex Dispute for additional discussion.