Balance Sheet Components

3 Months Ended

Mar. 31, 2025

Balance Sheet Related Disclosures [Abstract]


4.	Balance Sheet Components

Inventories, net

Inventories, net of reserves of $12 thousand and $4 thousand as of March 31, 2025 and December 31, 2024, respectively, consisted of the following components (in thousands):


	March 31, 2025		December 31, 2024
Raw materials	$	1,169	$	794
Work in progress		3,428		2,929
Finished goods		3,281		2,614
Inventories, net	$	7,878	$	6,337

The provision for inventory and write-downs for the periods ended March 31, 2025 and December 31, 2024 were immaterial.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31, 2025			December 31, 2024
Withholding individual income tax on Employee Stock Options	$	4,304	(1)	$	—
Accrued payroll and welfare		4,234			4,765
Payable to PPE & intangible asset suppliers		3,260			1,219
Payable to selling expense suppliers		2,542			900
Accrued expenses - general and administrative		1,076			1,005
Accrued sales discount		699			908
Accrued expenses - research and development		528			57
Accrued professional services		227			667
Deferred government grants		95			95
Employee reimbursement		3			737
Other accrued liabilities		271			262
Accrued expenses and other current liabilities	$	17,239		$	10,615

(1)

This amount represents individual income tax withheld on employee stock option exercises, payable to the tax authorities on behalf of employees.

Accounts and Note Receivables, Net

Accounts and note receivables, net consisted of the following (in thousands):


	March 31, 2025			December 31, 2024
Accounts receivable	$	20,547		$	19,798
Note receivable		2,138			4,373
Allowance for credit losses		(397	)		(209	)
Accounts and note receivables, net	$	22,288		$	23,962

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	March 31, 2025			December 31, 2024
Buildings	$	19,006		$	18,980
Construction in progress		249			222
Machinery and electronic devices		9,495			9,442
Furniture and fixtures		662			653
Motor vehicles		183			182
Property and equipment, gross		29,595			29,479
Less: Accumulated depreciation		(6,077	)		(5,599	)
Property and equipment, net	$	23,518		$	23,880

Long-Term Investment Measured Under Equity Method

On June 28, 2024, Gyre Pharmaceuticals entered into a partnership agreement as a limited partner with other investors and is obligated to pay $4.2 million for an 18.93% equity interest in the partnership. In April 2025, a new investor joined the partnership agreement, and as a result, Gyre Pharmaceuticals’ equity interest was adjusted to 18.35%. Pursuant to the partnership agreement, Gyre Pharmaceuticals, as a limited partner, shall not participate in any activities related to the management of the investment business. However, Gyre Pharmaceuticals may appoint a member to the advisory committee of the partnership.

As of March 31, 2025 and December 31, 2024, the Company's total investment into the partnership and the carrying value of the Company’s long-term investment in this affiliate, which was included in “Other assets, noncurrent” on the balance sheet, were $1.7 million and $1.6 million, respectively.