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Stockholders' Equity
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Stockholders' Equity

8.

Stockholders’ Equity

 

Common Stock

 

Common stock reserved for future issuance is as follows:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Options issued and outstanding

 

 

18,545,620

 

[1]

 

18,280,548

 

Preferred Stock Warrants issued and outstanding

 

 

540,666

 

 

 

540,666

 

Convertible Preferred Stock issued and outstanding

 

 

—

 

 

 

8,767,332

 

Total common stock reserved

 

 

19,086,286

 

 

 

27,588,546

 

 

[1] Includes 7,701,462 options exercisable for shares of common stock, which underlying shares of common stock were transferred in the name of the Company to Futu Network Technology Limited, the stock plan administrator of the 2023 Omnibus Incentive Sub-Plan for Chinese Participants.

 

Restricted Net Assets

 

Under PRC laws and regulations, Gyre Pharmaceuticals is subject to restrictions on foreign exchange and cross-border cash transfers, including to parent companies and U.S. stockholders. The ability to distribute earnings to the parent companies and U.S. stockholders is also limited. Current PRC regulations permit Gyre Pharmaceuticals to pay dividends to BJContinent Pharmaceuticals Limited (“BJC”) only out of its accumulated profits as determined in accordance with PRC accounting standards and regulations. Amounts restricted include paid-in capital and the statutory reserves of Gyre Pharmaceuticals. The aggregate amounts of restricted capital and statutory reserves of the relevant subsidiaries not available for distribution were $64.3 million as of September 30, 2024 and December 31, 2023.

 

Statutory Reserve

 

Gyre Pharmaceuticals is required to set aside at least 10% of its after-tax profits as the statutory reserve fund until the cumulative amount of the statutory reserve fund reaches 50% or more of its registered capital, if any, to fund its statutory reserves, which are not available for distribution as cash dividends. At the Company’s discretion, the Company may allocate a portion of after-tax profits based on PRC accounting standards to a discretionary reserve fund.

 

There were no appropriations to these reserves during the nine months ended September 30, 2024 or during the year ended December 31, 2023.