Description of Filana Therapeutics Inc's Business Segments

The Company operates in a single business segment focused on the development of novel drugs and diagnostics. The President and Chief Executive Officer, serving as the chief operating decision maker (CODM), allocates resources and evaluates performance based on this segment. The primary performance metric used by the CODM is consolidated net loss, while segment assets are measured by cash and cash equivalents. The Company has not generated product revenue and anticipates incurring significant expenses and operating losses as it advances product candidates through development and clinical trials. The CODM utilizes cash forecast models to guide investment decisions and monitors budget versus actual results, net cash used in operating activities, and cash on hand to assess segment performance. Operating expenses reviewed include research and development, general and administrative costs, and other items such as interest income and gains or losses on warrant liabilities. Net cash used in operating activities was $32.3 million in 2025, $116.9 million in 2024, and $82.0 million in 2023.

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