Shareholders’ Equity |
6 Months Ended |
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Jun. 30, 2026 | |
| Equity [Abstract] | |
| Shareholders’ Equity | Shareholders’ Equity Private Placement In March 2026, the Company entered into a securities purchase agreement with a select group of institutional accredited investors to sell 6,130,000 shares of its ordinary shares in a private placement at a price of $3.25 per share with respect to any purchaser that is not owned or controlled by an individual who is an officer, director, employee or consultant of the Company (“Private Placement”). The net proceeds from the Private Placement were $18.6 million (gross proceeds of $20.2 million, net of $1.6 million in placement agent fees and other offering expenses). The Private Placement closed on March 31, 2026. In May 2026, the Company filed a registration statement with the SEC to register for resale 6,130,000 ordinary shares. The registration statement was declared effective on June 1, 2026. The Private Placement was led by the Company’s largest current investor, Panacea Venture, which purchased ordinary shares in the Private Placement totaling $4.0 million. James Huang, a member of the Company’s Board, is the sole owner of Panacea Innovation Limited, which is the sole owner of Panacea Venture. Statutory Reserves In accordance with the People’s Republic of China (“PRC”) regulations and the articles of association of the companies registered in the PRC, companies are required to set aside 10% of their net profit for the year, offsetting any prior year losses, to the statutory surplus reserve fund as determined under the relevant PRC accounting standards. When the balance of such reserve reaches 50% of the entity’s registered capital, any further appropriation is optional. As of June 30, 2026, the Company has not made any profit appropriations to the reserve fund, as all of its subsidiaries in the PRC were in an accumulated loss position. Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. As of June 30, 2026 and December 31, 2025, restricted net assets including paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries was $15.6 million and $15.7 million, respectively.
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