| Consolidated Financial Statement Details |
3. Condensed Consolidated Financial Statements Details
Equity Securities
As of June 30, 2025 and December 31, 2024, investment in equity securities was $8.8 million and $3.5 million, respectively. For the three and six months ended June 30, 2025, the Company recognized gains of $6.3 million and $5.2 million, respectively, due to the change in fair value of its investment in equity securities in the other income, net line item of the condensed consolidated statements of operations. For the three and six months ended June 30, 2024, the Company recognized gains of $0.3 million and $0.5 million, respectively, due to the change in fair value of its investment in Rezolute.
Intangible Assets, Net
The following table summarizes the cost, accumulated amortization, and net carrying value of the Company’s intangible assets as of June 30, 2025 (in thousands):
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|
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|
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|
|
Accumulated |
|
Net Carrying |
|
|
Cost |
|
Amortization |
|
Value |
As of June 30, 2025 |
|
|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 4) |
|
$ |
26,115 |
|
$ |
1,294 |
|
$ |
24,821 |
BioInvent - Contract-based Intangible Asset (Note 4) |
|
|
20,724 |
|
|
111 |
|
|
20,613 |
Total intangible assets |
|
$ |
46,839 |
|
$ |
1,405 |
|
$ |
45,434 |
The following table summarizes the cost, accumulated amortization, impairment charge, and net carrying value of the Company’s intangible assets as of December 31, 2024 (in thousands):
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|
|
|
|
Accumulated |
|
Net Carrying |
|
|
Cost |
|
Amortization |
|
Value |
As of December 31, 2024 |
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|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 4) |
|
$ |
26,115 |
|
$ |
206 |
|
$ |
25,909 |
Total intangible assets |
|
$ |
26,115 |
|
$ |
206 |
|
$ |
25,909 |
The estimated remaining life of the intangible assets ranges from 11.4 years to 15.4 years. The following table presents the projected future amortization expense (in thousands):
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|
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Intangible Asset |
|
|
Amortization |
2025 (excluding the six months ended June 30, 2025) |
|
$ |
1,757 |
2026 |
|
|
3,513 |
2027 |
|
|
3,513 |
2028 |
|
|
3,513 |
2029 |
|
|
3,513 |
Thereafter |
|
|
29,625 |
Total |
|
$ |
45,434 |
Net Income Per Share Available to Common Stockholders
The following table includes the computation of basic and diluted net income per share available to common stockholders (in thousands, except per share amounts):
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|
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|
|
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|
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|
|
|
|
Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
Numerator |
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|
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|
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|
|
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Net income |
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$ |
9,191 |
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$ |
15,985 |
|
$ |
11,558 |
|
$ |
7,390 |
Less: Series A accumulated dividends |
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|
(530) |
|
|
(530) |
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|
(1,061) |
|
|
(1,061) |
Less: Series B accumulated dividends |
|
|
(838) |
|
|
(838) |
|
|
(1,675) |
|
|
(1,675) |
Less: Allocation of undistributed earnings to participating securities |
|
|
(2,301) |
|
|
(4,393) |
|
|
(2,597) |
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|
(1,401) |
Net income available to common stockholders, basic |
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$ |
5,522 |
|
$ |
10,224 |
|
$ |
6,225 |
|
$ |
3,253 |
Add: Adjustments to undistributed earnings allocated to participating securities |
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|
2,301 |
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|
4,393 |
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|
2,597 |
|
|
1,401 |
Net income available to common stockholders, diluted |
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$ |
7,823 |
|
$ |
14,617 |
|
$ |
8,822 |
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$ |
4,654 |
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|
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Denominator |
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|
|
Weighted-average shares used in computing net income per share available to common stockholders, basic |
|
|
12,007 |
|
|
11,643 |
|
|
11,988 |
|
|
11,611 |
Effect of dilutive Series X preferred stock |
|
|
5,003 |
|
|
5,003 |
|
|
5,003 |
|
|
5,003 |
Effect of dilutive warrants for common stock |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
2 |
Effect of dilutive PSUs |
|
|
208 |
|
|
— |
|
|
241 |
|
|
— |
Effect of dilutive RSUs |
|
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23 |
|
|
— |
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|
19 |
|
|
— |
Effect of dilutive common stock options |
|
|
518 |
|
|
673 |
|
|
524 |
|
|
647 |
Weighted-average shares used in computing net income per share available to common stockholders, diluted |
|
|
17,761 |
|
|
17,321 |
|
|
17,777 |
|
|
17,263 |
Net income per share available to common stockholders, basic |
|
$ |
0.46 |
|
$ |
0.88 |
|
$ |
0.52 |
|
$ |
0.28 |
Net income per share available to common stockholders, diluted |
|
$ |
0.44 |
|
$ |
0.84 |
|
$ |
0.50 |
|
$ |
0.27 |
Potentially dilutive securities are excluded from the calculation of diluted net income per share available to common stockholders if their inclusion is anti-dilutive.
The following table shows the shares from outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net income per share available to common stockholders (in thousands):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2025 |
|
2024 |
|
2025 |
|
2024 |
Common stock options |
|
779 |
|
1,107 |
|
785 |
|
1,311 |
Warrants for common stock |
|
120 |
|
120 |
|
120 |
|
120 |
Total |
|
899 |
|
1,227 |
|
905 |
|
1,431 |
For PSUs with market conditions, if the market conditions have not been satisfied by the end of the reporting period, the number of shares that would be issuable is based on the market price at the end of the reporting period. This approach treats the end of the reporting period as if it were the end of the contingency period for calculating diluted earnings per share. For market conditions that have not yet been satisfied, no shares would be issuable based on the market price of $25.20 per share as of June 30, 2025.
For PSUs that have satisfied the market conditions but have not satisfied service conditions by the end of the reporting period, the number of shares issuable is included in the calculation of diluted earnings per share if the effect is dilutive. This includes PSUs that achieved the $30.00 price target in November 2024, but still have remaining time-based vesting requirements.
Accrued and Other Liabilities
Accrued and other liabilities consisted of the following (in thousands):
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June 30, |
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December 31, |
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2025 |
|
2024 |
Accrued short-term interest payable |
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$ |
2,914 |
|
$ |
3,039 |
Accrued incentive compensation |
|
|
790 |
|
|
1,555 |
Accrued legal and accounting fees |
|
|
719 |
|
|
251 |
Accrued termination benefits |
|
|
281 |
|
|
— |
Accrued payroll and benefits |
|
|
131 |
|
|
170 |
Accrued clinical liabilities |
|
|
— |
|
|
306 |
Income taxes payable in connection with Pulmokine acquisition |
|
|
— |
|
|
280 |
Other accrued liabilities |
|
|
576 |
|
|
151 |
Total |
|
$ |
5,411 |
|
$ |
5,752 |
Other Income, Net
Other income, net for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):
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Three Months Ended |
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Six Months Ended |
|
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June 30, |
|
June 30, |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Other income, net |
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Investment income |
|
$ |
843 |
|
$ |
1,682 |
|
$ |
1,771 |
|
$ |
3,390 |
Change in fair value of equity securities |
|
|
6,320 |
|
|
283 |
|
|
5,173 |
|
|
535 |
Sublease income |
|
|
103 |
|
|
67 |
|
|
205 |
|
|
67 |
Other income |
|
|
558 |
|
|
18 |
|
|
580 |
|
|
18 |
Total other income, net |
|
$ |
7,824 |
|
$ |
2,050 |
|
$ |
7,729 |
|
$ |
4,010 |
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