Condensed Consolidated Financial Statements Details (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Condensed Consolidated Financial Statements Details |
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| Schedule of cost, accumulated amortization, impairment charge and net carrying value of intangible assets |
The following table summarizes the cost, accumulated amortization, and net carrying value of the Company’s intangible assets as of March 31, 2026 (in thousands):
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Accumulated |
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Net Carrying |
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Cost |
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Amortization |
|
Value |
As of March 31, 2026 |
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|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 6) |
|
$ |
26,115 |
|
$ |
2,926 |
|
$ |
23,189 |
BioInvent - Contract-based Intangible Asset (Note 5) |
|
|
20,725 |
|
|
1,115 |
|
|
19,610 |
LAVA - Partnered Program IPs (Note 6) |
|
|
934 |
|
|
16 |
|
|
918 |
LAVA-1266 IP (Note 6) |
|
|
149 |
|
|
2 |
|
|
147 |
Total intangible assets |
|
$ |
47,923 |
|
$ |
4,059 |
|
$ |
43,864 |
The following table summarizes the cost, accumulated amortization, and net carrying value of the Company’s intangible assets as of December 31, 2025 (in thousands):
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Accumulated |
|
Net Carrying |
|
|
Cost |
|
Amortization |
|
Value |
As of December 31, 2025 |
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|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 6) |
|
$ |
26,115 |
|
$ |
2,383 |
|
$ |
23,732 |
BioInvent - Contract-based Intangible Asset (Note 5) |
|
|
20,725 |
|
|
780 |
|
|
19,945 |
LAVA - Partnered Program IPs (Note 6) |
|
|
934 |
|
|
3 |
|
|
931 |
LAVA-1266 IP (Note 6) |
|
|
149 |
|
|
1 |
|
|
148 |
Total intangible assets |
|
$ |
47,923 |
|
$ |
3,167 |
|
$ |
44,756 |
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| Schedule of projected amortization expense for next five years |
The estimated remaining life of the intangible assets ranges from 10.7 years to 19.7 years. The following table presents the projected future amortization expense (in thousands):
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|
|
|
|
Intangible Asset |
|
|
Amortization |
2026 (excluding the three months ended March 31, 2026) |
|
$ |
2,676 |
2027 |
|
|
3,567 |
2028 |
|
|
3,567 |
2029 |
|
|
3,567 |
2030 |
|
|
3,567 |
Thereafter |
|
|
26,920 |
Total |
|
$ |
43,864 |
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| Schedule of reconciliation of numerator and denominator used in calculation of basic and diluted net loss per share attributable 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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|
|
Three Months Ended March 31, |
|
|
2026 |
|
2025 |
Numerator |
|
|
|
|
|
|
Net income |
|
$ |
4,465 |
|
$ |
2,367 |
Less: Series A accumulated dividends |
|
|
(530) |
|
|
(530) |
Less: Series B accumulated dividends |
|
|
(922) |
|
|
(838) |
Less: Allocation of undistributed earnings to participating securities |
|
|
(892) |
|
|
(294) |
Net income available to common stockholders, basic |
|
$ |
2,121 |
|
$ |
705 |
Add: Adjustments to undistributed earnings allocated to participating securities |
|
|
892 |
|
|
294 |
Net income available to common stockholders, diluted |
|
$ |
3,013 |
|
$ |
999 |
|
|
|
|
|
|
|
Denominator |
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|
|
|
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|
Weighted-average shares used in computing net income per share available to common stockholders, basic |
|
|
11,894 |
|
|
11,969 |
Effect of dilutive Series X Preferred Stock |
|
|
5,003 |
|
|
5,003 |
Effect of dilutive warrants for common stock |
|
|
3 |
|
|
2 |
Effect of dilutive PSUs |
|
|
— |
|
|
273 |
Effect of dilutive common stock options |
|
|
517 |
|
|
534 |
Weighted-average shares used in computing net income per share available to common stockholders, diluted |
|
|
17,417 |
|
|
17,781 |
Net income per share available to common stockholders, basic |
|
$ |
0.18 |
|
$ |
0.06 |
Net income per share available to common stockholders, diluted |
|
$ |
0.17 |
|
$ |
0.06 |
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| Schedule of outstanding securities considered 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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|
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|
|
|
Three Months Ended March 31, |
|
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2026 |
|
2025 |
Common stock options |
|
641 |
|
1,094 |
Contingently issuable PSUs |
|
164 |
|
— |
Warrants for common stock |
|
120 |
|
120 |
Unvested RSUs |
|
102 |
|
— |
Total |
|
1,027 |
|
1,214 |
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| Schedule of accrued and other liabilities |
Accrued and other liabilities consisted of the following (in thousands):
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|
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March 31, |
|
December 31, |
|
|
2026 |
|
2025 |
Accrued legal and accounting fees |
|
$ |
1,435 |
|
$ |
1,765 |
Accrued incentive compensation |
|
|
503 |
|
|
1,645 |
Accrued severance |
|
|
378 |
|
|
— |
Accrued payroll and benefits |
|
|
148 |
|
|
394 |
Share-based liability |
|
|
— |
|
|
3,197 |
Accrued short-term interest payable |
|
|
— |
|
|
2,777 |
Other accrued liabilities |
|
|
747 |
|
|
107 |
Total |
|
$ |
3,211 |
|
$ |
9,885 |
|
| Schedule of other income, net |
Other income (expense), net for the three months ended March 31, 2026 and 2025 was as follows (in thousands):
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|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2026 |
|
2025 |
Other income (expense), net |
|
|
|
|
|
|
Arranger fee from Repare transaction |
|
$ |
3,000 |
|
$ |
— |
Investment income |
|
|
933 |
|
|
927 |
Sublease income |
|
|
546 |
|
|
103 |
HilleVax CVR adjustment1 |
|
|
(360) |
|
|
— |
LAVA CVR adjustment2 |
|
|
230 |
|
|
— |
Unrealized gain (loss) from change in fair value of equity securities |
|
|
112 |
|
|
(1,147) |
Other miscellaneous income, net |
|
|
299 |
|
|
22 |
Total other income (expense), net |
|
$ |
4,760 |
|
$ |
(95) |
|
1) |
This adjustment represented a $0.4 million addition to the estimated HilleVax CVR liability for interest earned on the related reserve account.
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2) |
This adjustment represented a $0.6 million difference between the LAVA CVR liability accrued as of December 31, 2025 and the actual amount paid in March 2026 for excess closing net cash, partially offset by a $0.4 million additional expense accrued for future LAVA CVR distributions. (see Note 6).
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