Note 15 - Segment Reporting

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 15. Segment Reporting

The Company operates as two operating and reportable segments, consistent with the manner in which the Chief Executive Officer, designated as the CODM of the Company, evaluates the Company’s performance and allocates resources. The Company’s operations solely consist of the development of novel therapeutics for the treatment of central nervous system disorders including suicidal depression, chronic pain, and PTSD and now schizophrenia. 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.

The Company generated $242 thousand in revenues during the nine months ended September 30, 2025. The revenue for the three and nine months ended September 30, 2025 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. As the Company is currently in the pre-revenue phase, the associated expenses above are drivers.

The CODM does not separately evaluate performance by geographic region or product line, as the Company has not yet commenced commercial operations and 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 below.

All of the Company’s operating expenses, which consist of research and development and general and administrative 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 September 30, 2025 and 2024 (in thousands):

							For the three months
							ended
							September 30,
	NRx			Dura			2025			2024
Expense Category
Income (loss) from operations	$	(4,039	)	$	15		$	(4,024	)	$	(3,022	)
Interest income		(1	)		(1	)		(2	)		(6	)
Interest expense		—			—			—			—
Change in fair value of convertible notes payable		1,502			—			1,502			(1,355	)
Change in fair value of warrant liabilities		4,963			—			4,963			(165	)
Loss on convertible note conversions		772			—			772			127
Gain on exercise of warrants		(5,369	)		—			(5,369	)		—
Net loss	$	(5,906	)	$	16		$	(5,890	)	$	(1,623	)

The following table reconciles the loss from operations to total loss for the nine months ended September 30, 2025 and 2024 (in thousands):

							For the nine months
							ended
							September 30,
	NRx			Dura			2025			2024
Expense Category
(Loss) income from operations	$	(11,616	)	$	15		$	(11,600	)	$	(16,070	)
Interest income		(7	)		(1	)		(8	)		(40	)
Interest expense		—			—			—			230
Change in fair value of convertible notes payable		8,032			—			8,302			(1,014	)
Change in fair value of warrant liabilities		8,481			—			8,481			(174	)
Loss on issuance of Registered Direct Offering		730			—			730			—
Loss on Consideration Shares and Warrants		1,277			—			1,277			—
Convertible note default penalty		—			—			—			849
Loss on convertible note conversions		4,239			—			4,239			127
Gain on exercise of warrants		(5,369	)		—			(5,369	)		—
Net loss	$	(28,999	)	$	16		$	(28,982	)	$	(16,048	)

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

	NRx			Dura			September 30, 2025			December 31, 2024
Medical equipment	$	—		$	57		$	57		$	—
Computer equipment		29			4			33			29
Furniture and fixtures		—			4			4			—
Total PPE	$	29		$	64		$	93		$	29
Less: Accumulated Depreciation		(23	)		(1	)		(24	)		(19	)
Net	$	6		$	63		$	69		$	9