Note 12 - Segments

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 12 – SEGMENTS

The Company has determined that it will focus its resources on applying AI to support the development of optimal cancer therapies, partnering with biopharma clients to help prioritize drugs for development and identify biomarker-informed indications. Its platform provides an informed decision tool to select optimal drug/tumor combinations to increase the probability of success during drug development. As a result of this focused approach, the Company has consolidated its brand under the Predictive Oncology name. Going forward, the Company will operate under the Predictive Oncology tradename with laboratory operations in Pittsburgh, Pennsylvania and Birmingham, Alabama. As of January 1, 2023, the Company changed its reportable segments because of this focused approach. The Company has retrospectively revised the reported segment information for all periods presented for consistency.

The Company has three reportable segments that have been delineated by location and specialty: the Pittsburgh segment provides services that include the application of AI using its proprietary biobank of 150,000+ cancer tumor samples. Pittsburgh also utilizes 3D culture models in drug development. The Birmingham segment provides services and research using a self-contained, automated system that conducts high-throughput, self-interaction chromatography screens, using additives and excipients commonly included in protein formulations resulting in soluble and physically stable formulations of biologics focused on solubility improvements, stability studies, and protein production. The Eagan (Minnesota) segment consists of the production of the United States Food and Drug Administration (“FDA”)-cleared STREAMWAY System for automated fluid waste management, direct-to-drain medical fluid disposal, and associated products.

The Company has determined its operating segments in accordance with ASC 280 – Segment Reporting. Factors used to determine the Company’s reportable segments include the availability of separate financial statements, the existence of locally based leadership across geographic regions, the economic factors affecting each segment, and the evaluation of operating results at the segment level. The Chief Operating Decision Maker (“CODM”) allocates the Company’s resources for each of the operating segments and evaluates their relative performance. Each operating segment listed below has separate financial statements and locally based leadership that are evaluated based on the results of their respective segments. It should be noted that the operating segments below have different products and services. The financial information is condensed, consolidated and evaluated regularly by the CODM in assessing performance and allocating resources.

See discussion of revenue recognition in Note 1 – Summary of Significant Accounting Policies for a description of the products and services recognized in each segment. The segment revenues and segment net losses for the three and nine months ended September 30, 2023 and 2022 are included in the table below. zPREDICTA Inc. was merged with Predictive Oncology Inc. at the end of 2022 and is now reported as part of the Pittsburgh operating segment. All revenues are earned from external customers.

Revenue

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Pittsburgh	$	417,096	$	172,637	$	441,567	$	266,642
Eagan		259,530		253,751		866,535		809,875
Birmingham		38,430		29,439		136,959		64,580
Corporate		-		-		-		889
Total	$	715,056	$	455,827	$	1,445,061	$	1,141,986

Segment Loss

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Pittsburgh	$	(674,952	)	$	(1,076,508	)	$	(3,428,644	)	$	(10,891,767	)
Eagan		(189,031	)		(109,408	)		(756,115	)		(259,444	)
Birmingham		(415,083	)		(407,622	)		(1,483,222	)		(1,206,550	)
Corporate		(1,884,384	)		(2,465,946	)		(4,840,639	)		(5,463,763	)
Total	$	(3,163,450	)	$	(4,059,484	)	$	(10,508,620	)	$	(17,821,524	)

Assets

	As of		As of
	September 30,		December 31,
	2023		2022
Pittsburgh	$	3,422,462	$	1,055,228
Eagan		1,336,101		946,394
Birmingham		1,116,990		1,353,434
Corporate		12,291,315		22,379,588
Total	$	18,166,868	$	25,734,644