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

Segment Information

v3.26.1
Segment Information
 12 Months Ended
May 31, 2026
Segment Information  
Segment Information

Note 13. 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 comparison of budgeted versus actual results is 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, 2026, and 2025 is included at the bottom of the table below.

 

 

 

Years ended May 31,

 

(in thousands, except for per share data)

 

2026

 

 

2025

 

Expenses(1):

 

 

 

 

 

 

General and administrative expense(2)

 

$

 

6,802

 

 

$

 

6,434

 

Research and development(3)

 

 

 

14,713

 

 

 

 

7,278

 

Return of clinical expenses

 

 

 

—

 

 

 

 

(24,985

)

Legal settlement loss

 

 

 

15,430

 

 

 

 

—

 

Stock-based compensation expense

 

 

 

1,630

 

 

 

 

1,612

 

Total operating expenses

 

 

 

38,575

 

 

 

 

(9,661

)

Operating (loss) gain

 

 

 

(38,575

)

 

 

 

9,661

 

Interest income

 

 

 

257

 

 

 

 

565

 

Interest on convertible notes

 

 

 

(2,489

)

 

 

 

(4,424

)

Amortization of discount on convertible notes

 

 

 

—

 

 

 

 

(407

)

Standby equity purchase agreement commitment fee

 

 

 

(325

)

 

 

 

—

 

Issuance costs for private placement of shares and warrants through placement agent (Note 5)

 

 

 

(1,628

)

 

 

 

—

 

Legal settlement revaluation

 

 

 

83

 

 

 

 

—

 

Loss on induced conversion

 

 

 

—

 

 

 

 

(1,180

)

Finance charges

 

 

 

(22

)

 

 

 

(25

)

Gain on restructuring of payables

 

 

 

—

 

 

 

 

407

 

Loss on derivatives

 

 

 

—

 

 

 

 

(852

)

Segment net (loss) income

 

 

 

(42,699

)

 

 

 

3,745

 

Reconciliation of profit or loss:

 

 

 

 

 

 

 

 

Adjustments or reconciling items

 

 

 

—

 

 

 

 

—

 

Consolidated net (loss) income

 

$

 

(42,699

)

 

$

 

3,745

 

 

 

(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, 2026, and 2025 is net of $0.6 million and $0.8 million of stock-based compensation expense, respectively.
(3)
Research and development expense for the year ended May 31, 2026 and 2025 is net of $1.0 million and $0.8 million of stock-based compensation expense, respectively. 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.