Balance Sheet Components

9 Months Ended

Sep. 30, 2024

Balance Sheet Related Disclosures [Abstract]


4.	Balance Sheet Components

Inventories, net

Inventories, net of reserves of $5,000 and $46,000 as of September 30, 2024 and December 31, 2023, respectively, consisted of the following components (in thousands):


	September 30, 2024		December 31, 2023
Raw materials	$	1,039	$	919
Work in progress		3,537		1,997
Finished goods		1,803		1,365
Inventories, net	$	6,379	$	4,281

The provision for inventory and write-downs for the periods ended September 30, 2024 and December 31, 2023 were immaterial.

Accrued Expenses and Other Current Liabilities

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


	September 30, 2024		December 31, 2023
Accrued payroll and welfare	$	4,914	$	5,790
Accrued expenses - selling expenses		1,054		44
Supplier reimbursement		1,351		2,247
Accrued expenses - general and administrative		924		1,190
Accrued sales discount		879		903
Accrued expenses - research and development		215		161
Deferred government grants		40		40
Employee reimbursement		14		648
Accrued professional services		—		837
Other accrued liabilities		162		75
Accrued expenses and other current liabilities	$	9,553	$	11,935

Accounts and Note Receivables, Net

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


	September 30, 2024			December 31, 2023
Accounts receivable	$	19,538		$	15,204
Note receivable		91			389
Allowance for credit losses		(142	)		(41	)
Accounts and note receivables, net	$	19,487		$	15,552

Property and Equipment, Net

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


	September 30, 2024			December 31, 2023
Buildings	$	19,122		$	12,289
Construction in progress		388			7,875
Machinery and electronic devices		9,400			6,598
Furniture and fixtures		668			606
Motor vehicles		187			185
Property and equipment, gross		29,765			27,553
Less: Accumulated depreciation		(5,323	)		(4,265	)
Property and equipment, net	$	24,442		$	23,288

Long-Term Investment Measured Under Equity Method

On June 28, 2024, Gyre Pharmaceuticals entered into a partnership agreement as a limited partner with other investors and is obligated to pay $4.2 million for an 18.90% equity interest in the partnership. 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 September 30, 2024, the Company's total investment into the partnership and the carrying value of the Company’s long-term investment in this affiliate was $1.7 million and $1.7 million, respectively.