Consolidated Financial Statements Details

6 Months Ended

Jun. 30, 2025

Condensed Consolidated Financial Statement Details

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):


			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):


			Accumulated		Net Carrying
	Cost		Amortization		Value
As of December 31, 2024
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):


	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):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Numerator
Net income	$	9,191	$	15,985	$	11,558	$	7,390
Less: Series A accumulated dividends		(530)		(530)		(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)		(1,401)
Net income available to common stockholders, basic	$	5,522	$	10,224	$	6,225	$	3,253
Add: Adjustments to undistributed earnings allocated to participating securities		2,301		4,393		2,597		1,401
Net income available to common stockholders, diluted	$	7,823	$	14,617	$	8,822	$	4,654

Denominator
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		23		—		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):


	Three Months Ended June 30,		Six Months Ended June 30,
	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):


	June 30,		December 31,
	2025		2024
Accrued short-term interest payable	$	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):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Other income, net
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