Consolidated Financial Statements Details

12 Months Ended

Dec. 31, 2025

Consolidated Financial Statements Details

Consolidated Financial Statements Details

3. Consolidated Financial Statement Details

Investment in Equity Securities

As of December 31, 2025 and 2024, investment in equity securities was $0.4 million and $3.5 million, respectively. For the years ended December 31, 2025 and 2024, the Company recognized an unrealized gain of $0.1 million, due to the change in fair value of its investment in equity securities in the other income, net line item of the consolidated statements of operations. The Company sold certain equity securities in the year ended December 31, 2025 for $7.0 million, resulting in a realized gain of $3.7 million.

Intangible Assets, Net

The following table summarizes the cost, accumulated amortization, and net carrying value of the Company’s intangible assets as of December 31, 2025 (in thousands):

			Accumulated		Net Carrying
	Cost		Amortization		Value
As of December 31, 2025
Pulmokine - Seralutinib IP (Note 6)	$	26,115	$	2,383	$	23,732
BioInvent - Contract-based Intangible Asset (Note 5)		20,725		780		19,945
LAVA - Partnered Program IPs (Note 6)		934		3		931
LAVA-1266 IP (Note 6)		149		1		148
Total intangible assets	$	47,923	$	3,167	$	44,756

The following table summarizes the cost, accumulated amortization 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 6)	$	26,115	$	206	$	25,909
Total intangible assets	$	26,115	$	206	$	25,909

The estimated remaining life of the intangible assets ranges from 10.9 years to 19.9 years. The following table presents the projected future amortization expense for the next five years (in thousands):

	Intangible Asset
	Amortization
2026	$	3,567
2027		3,567
2028		3,567
2029		3,567
2030		3,567
Thereafter		26,921
Total	$	44,756

Accrued and Other Current Liabilities

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

	December 31,		December 31,
	2025		2024
Share-based liability	$	3,197	$	—
Accrued short-term interest payable		2,777		3,039
Accrued legal and accounting fees		1,765		251
Accrued incentive compensation		1,645		1,555
Accrued payroll and benefits		394		170
Accrued clinical liabilities		—		306
Income taxes payable in connection with Pulmokine acquisition		—		280
Other accrued liabilities		107		151
Total	$	9,885	$	5,752

Other Income, Net

Other income, net for the years ended December 31, 2025 and 2024 was as follows (in thousands):

	Year Ended
	December 31,
	2025		2024
Other income, net
Gain on sale of equity securities	$	3,663	$	—
Investment income		3,470		6,493
Arranger fee from ESSA transaction		3,000		—
Sublease income		840		272
Unrealized gain from change in fair value of equity securities		90		131
Other miscellaneous income, net		1,175		25
Total other income, net	$	12,238	$	6,921