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Investments in equity accounted investees, and other assets
12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments in equity accounted investees, and other assets Investments in equity accounted investees, and other assets
The Company has entered into two separate 50% joint ventures, with Dayhu (“Dayhu JV”) and Beedie (“Beedie JV”), as part of the construction of new office and laboratory headquarters. These joint ventures are considered related parties as the Company exercises significant influence over their operating and financial policies. The Company has recorded $1.8 million, $1.7 million, and $1.8 million of proportionate income with respect to the Dayhu JV and nil, nil, and $1.4 million of proportionate income with respect to the Beedie JV for the years ended December 31, 2023, 2024, and 2025, respectively.
Dayhu JV
As of December 31, 2024 and December 31, 2025, the equity investment balance was $41.0 million and $10.8 million, respectively, of which substantially all the assets in the Dayhu JV are comprised of property and equipment. As of December 31, 2024 and December 31, 2025, the Company recorded a right-of-use asset of $48.5 million and $45.9 million, respectively, and an operating lease liability of $46.3 million and $46.7 million, respectively, associated with an office lease with the Dayhu JV. In the years ended December 31, 2023, 2024 and 2025, the Company incurred lease expense of $5.3 million, $5.3 million, and $5.1 million, respectively, to the Dayhu JV included within operating expenses.
The Company issued CAD $46.0 million ($34.0 million) to Dayhu (New Dayhu Loan), to fund the construction of the new office and laboratory headquarters. The New Dayhu Loan is at a rate referenced to a Canadian bank prime rate adjusted for applicable margins as defined in the agreement and has a maturity of December 31, 2025, with a call provision, callable by the Company after September 30, 2023, including customary make whole provisions. The loan is secured by the underlying land and existing and future assets of the Dayhu JV. At December 31, 2024, the loan balance was $32.0 million and included in other current assets. In the fourth quarter of 2025, the loan was repaid and the balance was nil at December 31, 2025.
In December 2025, the Dayhu JV refinanced its real estate assets by entering into a mortgage agreement for CAD $84.0 million ($61.2 million) with a commercial lender. The loan bears interest at a fixed rate referenced to the five year Canadian government bond adjusted for applicable margins as defined in the agreement and has a term of five years, with principal repayments calculated based on a 30-year amortization period. The loan is secured by the Dayhu JV's building and assets. In addition, the Company provided a limited guarantee of the Dayhu JV's obligations under the loan, capped at CAD $42.0 million ($30.6 million), which matches a corresponding guarantee provided by the Dayhu JV partner.
In connection with this financing, the Dayhu JV made a cash distribution to the Company of CAD $41.6 million ($30.1 million). This distribution was recorded as a reduction in the carrying value of the investment in equity accounted investees. As of December 31, 2025, the scheduled principal payments on the CAD $84.0 million ($61.2 million) Dayhu
JV mortgage for each of the next five years are approximately CAD $1.4 million ($1.0 million) per year with a remaining balance at the end of the five year term of CAD $76.7 million ($55.9 million).
Beedie JV
At December 31, 2024 and December 31, 2025, the equity investment balance was $41.3 million and $51.8 million, respectively, of which substantially all the assets in the Beedie JV are comprised of property and equipment. In May 2025, the Company commenced a 20-year (and optional two additional five-year term extensions) lease for the office and laboratory space representing undiscounted future lease payments of approximately $6.0 million for each of the next five years, and $113.6 million for the remaining term thereafter. Upon lease commencement, the Company recognized a lease liability of $66.4 million, with a corresponding right-of-use asset of the same amount, using a 6.8% discount rate. In the year ended December 31, 2025, the Company incurred lease expense of $4.5 million to the Beedie JV included within operating expenses. As of December 31, 2025, the right-of-use asset and operating lease liability was $71.5 million and $75.7 million, respectively.
In June 2022, the Company made a commitment to our partner Beedie for a land loan of up to CAD $7.5 million ($5.8 million) plus a construction loan for up to 80% of Beedie’s share of construction costs. The commitment is at a rate referenced to market yields as defined in the agreement, and repayable upon substantial completion of construction in early 2026, or upon the triggering of certain repayment events as defined in the agreement. The loan is secured by the underlying land and existing and future assets of the Beedie JV. The loan receivable balance, which relates to the land and construction loan, was $29.6 million at December 31, 2024 included in other long-term assets, and $39.4 million at December 31, 2025 included in other current assets.