Equity Method Investment |
6 Months Ended | |||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||
| Equity Method Investment | 5. Equity Method Investment
On November 14, 2024, eXoZymes underwent an initial public offering in which MDB’s ownership interest in eXoZymes decreased from 60% to 47%. MDB and eXoZymes deconsolidated the financial statements when the investment in eXoZymes fell below 50% majority ownership.
The fair value of the equity method investment was determined based on the number of eXoZymes shares held by MDB and the market price of eXoZymes stock on the deconsolidation date. This valuation also included the estimated fair value of warrants held in eXoZymes, along with an assessment of the investment for any potential impairment.
The Company’s portion of the net loss for the three and six months ended June 30, 2026 was $1.26 million and $5.25 million, respectively. As of June 30, 2026, MDB owned of eXoZymes shares, representing a 40.75% ownership of eXoZymes.
During the quarter ended June 30, 2026, the Company recognized an impairment charge of $641 thousand on its equity investment in eXoZymes. The investment is carried under the measurement alternative in ASC 321-10-35-2, with fair value evidenced by the quoted trading price of eXoZymes common stock. As of June 30, 2026, eXoZymes’ closing share price of $ resulted in a fair value of $33.1 million for the Company’s shares, compared to a carrying value of $33.7 million (reflecting the investment’s balance after the quarter’s net loss and dilution adjustments). Because the carrying value exceeded fair value, management concluded the investment was impaired and recorded a $641 thousand charge to bring the carrying value down to $33.1 million, consistent with the requirement under ASC 321-10-35-3 to write the investment down to fair value once an impairment is identified. This charge was recognized in net income for the quarter and reflects the continued decline in eXoZymes’ share price, which has remained below the Company’s cost basis since May 2026
The following summarizes the Company’ consolidated balance sheet equity method investment as follows (in thousands):
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