Balance Sheet Components

9 Months Ended

Sep. 30, 2025

Balance Sheet Related Disclosures [Abstract]


4.	Balance Sheet Components

Inventories

Inventories as of September 30, 2025 and December 31, 2024, respectively, consisted of the following components (in thousands):


	September 30, 2025		December 31, 2024
Raw materials	$	1,099	$	794
Work in progress		4,434		2,929
Finished goods		3,321		2,614
Inventories	$	8,854	$	6,337

Accrued Expenses and Other Current Liabilities

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


	September 30, 2025		December 31, 2024
Accrued payroll and welfare	$	4,724	$	4,765
Payable to PPE & intangible asset suppliers		2,242		1,219
Payable to selling expense suppliers		1,462		900
Accrued sales discount		1,147		908
Accrued expenses - research and development		578		57
Accrued professional services		563		667
Accrued expenses - general and administrative		497		1,005
Deferred government grants		96		95
Employee reimbursement		44		737
Other accrued liabilities		446		262
Accrued expenses and other current liabilities	$	11,799	$	10,615

Accounts and Note Receivables, Net

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


	September 30, 2025			December 31, 2024
Accounts receivable	$	26,059		$	19,798
Note receivable		693			4,373
Allowance for credit losses		(182	)		(209	)
Accounts and note receivables, net	$	26,570		$	23,962

Property and Equipment, Net

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


	September 30, 2025			December 31, 2024
Buildings	$	19,229		$	18,980
Construction in progress		844			222
Machinery and electronic devices		9,559			9,442
Furniture and fixtures		723			653
Motor vehicles		187			182
Property and equipment, gross		30,542			29,479
Less: Accumulated depreciation		(6,934	)		(5,599	)
Property and equipment, net	$	23,608		$	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 September 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.