SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2024

7. SEGMENT INFORMATION

The Company operates as a single reporting segment engaged in developing a technology that uses water and heat rather than electricity to produce the lowest cost green hydrogen. The Chief Operating Decision Makers are the Company’s Chief Executive officer and its President, who together (the “CODM”), evaluate company performance based on Net income (loss), determined in accordance with U.S. GAAP, and Adjusted EBDITA, a non-GAAP measure.

The Company defines Adjusted EBITDA as income from operations, determined in accordance with GAAP, excluding the following:

	·	depreciation and amortization of property and equipment;
	·	amortization of acquired intangible assets;
	·	salaries and stock-based compensation

The CODM uses these measures to assess profitability and guide resource allocations, and believes that Adjusted EBITA, when reviewed in conjunction with Net income (loss), is a useful measure to assess the Company’s performance and liquidity, as it provides meaningful operating results by excluding the effects of expenses that are not reflective of the Company’s operating business performance. In addition, the CODM uses Adjusted EBITA to understand and compare operating results across accounting periods, and for financial and operational decision-making and resource allocation. The presentation of Adjusted EBITA is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP.

The CODM conducts quarterly financial reviews, focusing on research expenditures, operational efficiency, investment decisions, including capital expenditures for new research activities, are made based on expected return on investment and regulatory environment in which the Company operates.

The table below provides the Company’s Net loss, Operating Expenses, Other Income, and a reconciliation of Income/Loss to Adjusted EBITDA for the year ended December 31, 2024 and 2023 (in thousands):

	December 31, 2024			December 31, 2023
	Years Ended
	December 31, 2024			December 31, 2023

REVENUE	$	-		$	-

LESS OPERATING EXPENSES
Selling and marketing expenses		316,624			109,051
General and administrative expenses		1,131,312			2,863,215
Research and development		362,538			202,878

EBITDA		(1,810,474	)		(3,175,144	)
Depreciation and amortization		(4,106	)		(4,106	)

SEGMENT NET LOSS	$	(1,814,580	)	$	(3,179,250	)
Reconciliation of profit or loss		4,618			1,718
Adjustment and reconciling items		0			0

Consolidated Net Income	$	(1,809,962	)	$	(3,177,532	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

NewHydrogen, Inc. 10-K