Balance Sheet Components

6 Months Ended

Jun. 30, 2025

Balance Sheet Related Disclosures [Abstract]


4.	Balance Sheet Components

Inventories, net

Inventories, net of reserves of $0 and $4 thousand as of June 30, 2025 and December 31, 2024, respectively, consisted of the following components (in thousands):


	June 30, 2025		December 31, 2024
Raw materials	$	1,207	$	794
Work in progress		4,210		2,929
Finished goods		3,444		2,614
Inventories, net	$	8,861	$	6,337

The provision for inventory and write-downs for the periods ended June 30, 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):


	June 30, 2025		December 31, 2024
Accrued payroll and welfare	$	5,431	$	4,765
Payable to selling expense suppliers		2,990		900
Payable to PPE & intangible asset suppliers		2,096		1,219
Accrued expenses - general and administrative		1,140		1,005
Accrued sales discount		930		908
Accrued professional services		862		667
Accrued expenses - research and development		781		57
Deferred government grants		95		95
Employee reimbursement		89		737
Other accrued liabilities		510		262
Accrued expenses and other current liabilities	$	14,924	$	10,615

Accounts and Note Receivables, Net

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


	June 30, 2025			December 31, 2024
Accounts receivable	$	24,864		$	19,798
Note receivable		499			4,373
Allowance for credit losses		(235	)		(209	)
Accounts and note receivables, net	$	25,128		$	23,962

Property and Equipment, Net

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


	June 30, 2025			December 31, 2024
Buildings	$	19,087		$	18,980
Construction in progress		391			222
Machinery and electronic devices		9,497			9,442
Furniture and fixtures		700			653
Motor vehicles		151			182
Property and equipment, gross		29,826			29,479
Less: Accumulated depreciation		(6,425	)		(5,599	)
Property and equipment, net	$	23,401		$	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 June 30, 2025 and December 31, 2024, the Company's total investment in the partnership was $1.7 million and $1.7 million, respectively, 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, was $1.6 million and $1.6 million, respectively.