Inventories as of June 30, 2026 and December 31, 2025, respectively, consisted of the following components (in thousands):


	June 30, 2026		December 31, 2025 (As Recast)
Raw materials	$	774	$	970
Work in progress		7,710		6,307
Finished goods		2,944		2,894
Inventories, net	$	11,428	$	10,171

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


	June 30, 2026		December 31, 2025 (As Recast)
Accrued payroll and welfare	$	7,247	$	8,953
Accrued professional services		2,182		352
Payable to property and equipment & intangible asset suppliers		2,311		2,161
Accrued sales rebates		2,826		1,382
Payable to selling expense suppliers		516		270
Accrued expenses - research and development		1,817		1,115
Accrued expenses - general and administrative		903		1,796
Deferred government grants		189		97
Employee reimbursement		100		12
Other accrued liabilities		490		839
Withholding individual income tax on employee stock options		205		—
Contract liabilities		24		1,184
Accrued expenses and other current liabilities	$	18,810	$	18,161

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


	June 30, 2026			December 31, 2025 (As Recast)
Accounts receivable	$	28,079		$	31,229
Note receivable		232			5,638
Allowance for credit losses		(319	)		(151	)
Accounts and note receivables, net	$	27,992		$	36,716

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


	June 30, 2026			December 31, 2025 (As Recast)
Buildings	$	20,297		$	19,568
Construction in progress		566			765
Machinery and electronic devices		10,432			9,895
Furniture and fixtures		904			823
Motor vehicles		195			189
Equipment		5,242			5,073
Leasehold improvements		2,348			2,238
Property and equipment, gross		39,984			38,551
Less: Accumulated depreciation		(12,700	)		(11,002	)
Property and equipment, net	$	27,284		$	27,549

Depreciation expense was $1.1 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense was $1.8 million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively.

Prepaid assets and other current assets consisted of the following (in thousands):


	June 30, 2026		December 31, 2025 (As Recast)
Deferred transaction cost	$	—	$	3,831
Prepaid VAT		394		262
Other tax recoverable		1,207		1,949
Other deposits		112		203
Advances to suppliers		5,878		3,354
Interest Receivable		10		14
Prepaid Assets and Other Current Assets	$	7,601	$	9,613

Other assets, noncurrent consisted of the following (in thousands):


	June 30, 2026		December 31, 2025 (As Recast)
Right-of-use assets	$	3,279	$	3,609
Land use rights, net		1,450		1,425
Long-term investment		1,599		1,591
Other assets, noncurrent		1,016		999
Other assets, noncurrent	$	7,344	$	7,624

On June 28, 2024, Gyre Pharmaceuticals entered into a partnership agreement as a limited partner with other investors and is obligated to pay $4.4 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, 2026 and December 31, 2025, the Company's total investment into the partnership was $1.8 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.