Annual report [Section 13 and 15(d), not S-K Item 405]

PROPERTY AND EQUIPMENT

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PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 6 – PROPERTY AND EQUIPMENT

 

Property and equipment are stated at cost and depreciated or amortized using the straight-line method based on useful lives as follows (in thousands):

 

    Useful lives (years)   2025     2024  
        As of December 31,  
    Useful lives (years)   2025     2024  
                 
Laboratory equipment   5   $ 10,061     $ 8,868  
Furniture, software and office equipment   3 to 5     1,962       1,113  
Leasehold improvements   Shorter of remaining lease term or useful life     15,116       8,805  
Construction-in-progress         —       624  
Subtotal         27,139       19,410  
Less: accumulated depreciation         (17,218 )     (14,980 )
Total property and equipment, net       $ 9,921     $ 4,430  

 

 

In 2024, construction-in-progress related to leasehold improvements for the Company’s new office space as well as for conversion of existing office space into additional manufacturing space to increase ZEVASKYN® manufacturing capacity, all of which was completed in 2025.

 

Depreciation and amortization on property and equipment was $2.5 million and $2.0 million for the years ended December 31, 2025 and 2024, respectively. The Company incurred a gain on disposal of nil and $2,000 during the years ended December 31, 2025 and 2024, respectively, which is reflected in other income, net in the consolidated statements of operations and comprehensive income (loss).

 

The Company capitalized into inventory $0.2 million relating to depreciation associated with manufacturing equipment and production facilities for the year ended December 31, 2025. The capitalized costs associated are added to inventory and are expensed through cost of sales in the consolidated statement of operations and comprehensive income (loss) upon the commercial sales of ZEVASKYN®.