0000950170-24-037242 | 10-K | XBRL Viewer

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Related Party Transactions - Additional Information (Detail) - Related Party - G N I - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Research and development fees	$ 0	$ 200,000
Other Receivables	1,300,000
CPI Contribution
Related Party Transaction [Line Items]
Other Receivables	800,000
Gyre
Related Party Transaction [Line Items]
Other Receivables	500,000
F351 Agreement
Related Party Transaction [Line Items]
Research and development fees			$ 2,600,000	$ 8,900,000
Due to related parties	$ 1,400,000	$ 100,000

Financial Statements Schedule I Financial Information of Parent Company - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating Activities
Net (loss) income	$ (85,480)	$ 4,314
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Divestiture losses	2,711
Changes in operating assets and liabilities:
Net cash provided by operating activities	25,892	10,677
Effect of exchange rate changes on cash and cash equivalents	(298)	(1,891)
Net increase (decrease) in cash and cash equivalents	8,334	(5,028)
Cash and cash equivalents at beginning of the period	25,175	30,203
Cash and cash equivalents at end of period	33,509	25,175
Parent Company
Operating Activities
Net (loss) income	(92,933)	2,302
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Equity loss (income) of subsidiaries	89,617	(2,396)
Divestiture losses	2,711
Changes in operating assets and liabilities:
Due to related parties	533	5
Net cash provided by operating activities	(72)	(89)
Effect of exchange rate changes on cash and cash equivalents	$ 72	$ 89

Stockholders' Equity

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Stockholders' Equity


10.	Stockholders’ Equity

Common Stock

Under the Company’s amended and restated certificate of incorporation, the Company has 400,000,000 shares of Common Stock authorized for issuance with a $0.001 par value per share. The number of authorized shares of Common Stock may be increased or decreased by the affirmative vote of the holders of a majority of the Company’s stock who are entitled to vote. The holders of Common Stock have voting rights equal to one vote per share of Common Stock held. The holders of Common Stock are entitled to receive dividends when and as declared or paid by the Company’s board of directors.

Common stock reserved for future issuance is as follows:


	December 31,
	2023		2022
Convertible Preferred Stock issued and outstanding		8,767,332		—
Preferred Stock Warrants issued and outstanding		540,666		—
Options issued and outstanding		18,280,548		17,036,941
Total common stock reserved		27,588,546		17,036,941

2021 ATM Program

On October 15, 2021, Catalyst entered into an Equity Distribution Agreement (the “ATM Agreement”) with Piper Sandler & Co. (“Piper Sandler”) as sales agent, pursuant to which the Company may offer and sell, from time to time,

through Piper Sandler, shares of the Company’s Common Stock, par value of $0.001 per share, with aggregate gross sales proceeds of up to $50.0 million through an at-the-market offering program (the “ATM Program”). The Company will pay Piper Sandler a commission of 3% of the gross proceeds of any shares sold. The Company also agreed to reimburse Piper Sandler for certain expenses incurred in connection with its services under the ATM Agreement, including up to $50,000 for legal expenses in connection with the establishment of the ATM Program. The Company does not currently intend to use this or any other ATM Program prior to April 1, 2024.

Sales of shares of common stock under the ATM Program may be made pursuant to the registration statement on Form S-3 (File No. 333-253874), which was declared effective by the SEC on May 3, 2021, and a related prospectus supplement filed with the SEC on October 15, 2021. For the years ended December 31, 2023 and 2022, no shares of common stock were sold under the ATM Program.

Restricted Net Assets

Under PRC laws and regulations, BC is subject to restrictions on foreign exchange and cross-border cash transfers, including to parent companies and U.S. stockholders. The ability to distribute earnings to the parent companies and U.S. stockholders is also limited. Current PRC regulations permit BC to pay dividends to BJC only out of its accumulated profits as determined in accordance with PRC accounting standards and regulations. Amounts restricted include paid-in capital and the statutory reserves of BC. The aggregate amounts of restricted capital and statutory reserves, which represented the amount of net assets of the relevant subsidiaries not available for distribution were $64.3 million and $61.5 million as of December 31, 2023 and 2022, respectively.

As a result of the above restrictions, parent-only financial statements are presented in Schedule I.

Statutory Reserve

BC is required to set aside at least 10% of its after-tax profits as the statutory reserve fund until the cumulative amount of the statutory reserve fund reaches 50% or more of its registered capital, if any, to fund its statutory reserves, which are not available for distribution as cash dividends. At the Company’s discretion, the Company may allocate a portion of after-tax profits based on PRC accounting standards to a discretionary reserve fund.

Appropriations to these reserves by BC were $2.2 million for the year ended December 31, 2022. There were no appropriations to these reserves during the year ended December 31, 2023.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flow, Operating Activities, Lessee [Abstract]
Operating cash flows from operating lease	$ 573	$ 517

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventories, Net of Reserves

Inventories, net of reserves of $46,000 and $9,000 as of December 31, 2023 and 2022, respectively, consisted of the following components (in thousands):


	December 31,
	2023		2022
Raw materials	$	919	$	1,056
Work in progress		1,997		3,667
Finished goods		1,365		1,399
Inventories, net	$	4,281	$	6,122

Schedule of Accrued Expenses and Other Current Liabilities

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


	December 31,
	2023		2022
Accrued payroll and welfare	$	5,790	$	5,038
Supplier reimbursement		2,247		2,474
Accrued expenses - general and administrative		1,190		—
Accrued sales discount		903		748
Accrued professional services		837		—
Employee reimbursement		648		646
Accrued expenses - research and development		161		158
Accrued expenses - selling expenses		44		13
Deferred government grants		40		22
Other accrued liabilities		75		165
Accrued expenses and other current liabilities	$	11,935	$	9,264

Schedule of Deferred Government Grants

Summarized below are deferred government grants as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Government grants for property and equipment, included in accrued expenses and other current liabilities	$	40	$	22
Current deferred government grants		40		22
Government grants for property and equipment		213		118
Non-current deferred government grants		213		118
Total deferred government grants	$	253	$	140

Schedule of Property and Equipment, Net

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


	December 31,
	2023			2022
Buildings	$	12,289		$	10,837
Construction in progress		7,875			4,851
Machinery and electronic devices		6,598			4,880
Furniture and fixtures		606			631
Leasehold improvement		—			334
Motor vehicles		185			174
Property and equipment, gross		27,553			21,707
Less: Accumulated depreciation		(4,265	)		(3,998	)
Property and equipment, net	$	23,288		$	17,709

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 33,509	$ 25,175
Accounts and note receivables, net	15,552	17,136
Inventories, net	4,281	6,122
Prepaid assets	1,547	377
Other current assets	1,045	843
Total current assets:	57,221	49,653
Property and equipment, net	23,288	17,709
Intangible assets, net	205	297
Right-of-use assets	489	666
Land use rights, net	1,493	1,559
Deferred tax assets	4,695	4,081
Long-term certificates of deposit	23,431	7,394
Other assets, noncurrent	995	3,394
Total assets	116,539	84,753
Current liabilities:
Accounts payable	355	122
Deferred revenue	39	145
Due to related parties	1,369	118
CVR excess closing cash payable	1,085
Accrued expenses and other current liabilities	11,935	9,264
Income tax payable	5,054	2,101
Operating lease liabilities, current	210	492
Total current liabilities:	20,047	12,242
Operating lease liabilities, noncurrent	199	121
Deferred government grants	213	118
CVR derivative liability, noncurrent	4,722
Warrant liability, noncurrent	12,835
Other noncurrent liabilities	49	55
Total liabilities	38,065	12,536
Commitments and Contingencies (Note 13)
Equity:
Common stock, $0.001 par value, 400,000,000 shares authorized; 76,595,616 shares and 63,588,119 shares issued and outstanding at December 31, 2023 and 2022, respectively	77	64
Additional paid-in capital	68,179	32,795
Statutory reserve	3,098	2,660
(Accumulated deficit) retained earnings	(85,538)	7,395
Accumulated other comprehensive loss	(1,644)	(392)
Total Gyre stockholders' (deficit) equity	(15,828)	42,522
Noncontrolling interest	29,777	29,695
Total equity	13,949	72,217
Total liabilities, convertible preferred stock, and equity	116,539	$ 84,753
GC Biopharma Corp
Current assets:
Long-term receivable from GCBP	4,722
GNI
Current assets:
Other receivables from GNI	1,287
Convertible Preferred Stock
Current liabilities:
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 13,151 shares and nil shares issued and outstanding at December 31, 2023 and 2022, respectively	$ 64,525

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating Activities
Net (loss) income from operations	$ (85,480)	$ 4,314
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Acquired in-process research and development	83,104
Stock-based compensation	7,281	13,366
Depreciation and amortization	1,074	1,087
Noncash Lease Expense	355	404
Amortization of land use rights	40	42
Deferred income taxes, net	(1,160)	(838)
Bad debt expense and other non-cash items	(61)	22
Accrued interest on long-term certificates of deposit	(633)	(178)
Change in fair value of long-term receivable	(39)
Change in fair value of derivative liabilities	39
Change in fair value of warrant liability	9,261
Equity loss of unconsolidated affiliates	1,314	251
Divestiture losses	2,711
Loss on disposal of property and equipment	628	4
Changes in operating assets and liabilities:
Accounts and note receivables	1,398	(7,920)
Other receivables from GNI	(96)
Inventories	1,747	(879)
Prepaid and other assets	(82)	973
Income tax payable	3,003	(1,344)
Accounts payable	192	(112)
Other noncurrent liabilities	(102)
Due to related parties	425
Accrued expenses and other liabilities	1,446	1,914
Operating lease liabilities	(473)	(429)
Net cash provided by operating activities	25,892	10,677
Investing Activities
Acquisition of intangible assets	(69)	(13)
Purchase of certificates of deposit	(15,735)	(7,484)
Purchases of property and equipment	(8,517)	(4,985)
Proceeds from sale of equipment	664
Purchase of equity method investment	(1,000)	(1,332)
Cash and cash equivalents acquired in connection with the GNI USA Contributions	5,587
Payments made for acquisition costs	(124)
Cash balance in a disposed subsidiary	(566)
Net cash used in investing activities	(19,760)	(13,814)
Financing Activities
Proceeds from issuance of Convertible Preferred Stock and Preferred Stock Warrants under the Private Placement	2,500
Net cash provided by financing activities	2,500
Effect of exchange rate changes on cash and cash equivalents	(298)	(1,891)
Net increase (decrease) in cash and cash equivalents	8,334	(5,028)
Cash and cash equivalents at beginning of the period	25,175	30,203
Cash and cash equivalents at end of period	33,509	25,175
Supplemental Disclosure of Non-Cash Financing and Investing Activities:
Deemed issuance of common stock and Convertible Preferred Stock to former stockholders of Catalyst upon the GNI USA Contributions	84,348
Advance payment for Convertible Preferred Stock and Preferred Stock Warrants acquired upon the GNI USA Contributions	2,500
Disposal consideration in other receivables from GNI	768
Acquisition costs in due to related parties	535
Right-of-use asset obtained in exchange for operating lease liabilities	277	57
Proceeds from the exercise of stock options included in other receivable	166
Purchase of property and equipment included in accounts payable		727
Supplemental disclosure of cash flow information
Cash paid for income taxes	$ 6,346	$ 6,306

Fair Value Measurements and Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Detail) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

$ 10,582,000

$ 0

Liabilities, fair value

17,557,000

$ 0

Long-term receivable

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

4,722,000

Money Market Funds

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

^[1]

5,860,000

CVR Derivative Liability

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Liabilities, fair value

4,722,000

Warrant Liability Non Current

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Liabilities, fair value

12,835,000

Fair Value, Inputs, Level 1

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

5,860,000

Fair Value, Inputs, Level 1 | Money Market Funds

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

^[1]

5,860,000

Fair Value, Inputs, Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

4,722,000

Liabilities, fair value

17,557,000

Fair Value, Inputs, Level 3 | Long-term receivable

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, fair value

4,722,000

Fair Value, Inputs, Level 3 | CVR Derivative Liability

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Liabilities, fair value

4,722,000

Fair Value, Inputs, Level 3 | Warrant Liability Non Current

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Liabilities, fair value

$ 12,835,000

[1]	Included in cash and cash equivalents on accompanying consolidated balance sheet.

Segment Information - Schedule of Segment Reporting Information (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Legal expense	$ 600
Divestiture losses	2,711
General and administrative	$ 14,662	$ 17,370
Subsidiaries
General and administrative		$ 100

Convertible Preferred Stock

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Convertible Preferred Stock


11.	Convertible Preferred Stock

The Company is authorized to issue 5,000,000 shares of preferred stock with par value $0.001 per share under its restated certificate of incorporation, of which 125,040 shares are designated as Convertible Preferred Stock as of December 31, 2023.

In December 2022, Catalyst issued 12,340 shares of Convertible Preferred Stock to GNI in connection with the F351 Asset Acquisition (see Note 1 — Organization and Nature of Operations).

In October 2023, immediately following the closing of the Contributions, the Company issued 811 shares of Convertible Preferred Stock and 811 Preferred Stock Warrants to GNI under the Private Placement. For additional information, see Note 3 — Fair Value Measurements and Financial Instruments.

In November 2023, GNI provided notice to the Company to convert its 13,151 shares of Convertible Preferred Stock. The conversion became effective on January 22, 2024.

As of December 31, 2023, the Convertible Preferred Stock is classified outside of stockholders’ equity because the shares contain certain redemption features that are not solely within the Company’s control. The Company does not adjust the carrying value of the Convertible Preferred Stock to its redemption value since the Convertible Preferred Stock is not currently redeemable, and it is not probable that it will become redeemable in the future at any of the balance sheet dates. Subsequent adjustments to the carrying value will be made only when it becomes probable that such redemption will occur.

Holders of Convertible Preferred Stock are entitled to receive dividends equal to, on an as-if-converted-to-common-stock basis, and in the same form as dividends actually paid on shares of the Company’s common stock. Except as otherwise required by law, the Convertible Preferred Stock does not have voting rights. However, as long as any shares of Convertible Preferred Stock are outstanding, the Company may not, without the affirmative vote of the holders of a majority of the then outstanding shares of Convertible Preferred Stock, (i) alter or change adversely the powers, preferences or rights given to Convertible Preferred Stock or alter or amend the Certificate of Designation that authorized the Convertible Preferred Stock, amend or repeal any provision of, or add any provision to, the Certificate of Incorporation or Bylaws of the Company, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Convertible Preferred Stock, (ii) issue further shares of Convertible Preferred Stock or increase or decrease (other than by conversion) the number of authorized shares of Convertible Preferred Stock, or (iii) enter into any agreement with respect to any of the foregoing. Convertible Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company.

As of December 31, 2023 the Company had 13,151 shares of Convertible Preferred Stock issued and outstanding. Each share of Convertible Preferred Stock is convertible into approximately 666.67 shares of Common Stock. As of December 31, 2023, the number of shares of common stock issuable upon conversion of the outstanding shares of Convertible Preferred Stock is 8,767,332.

Income Taxes - Movement of Valuation Allowance (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Income Tax Disclosure [Abstract]
Changes of valuation allowances	$ (63,773)
Balance at the end of the year	$ (63,773)

Restructuring - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Restructuring Cost And Reserve [Line Items]
Divestiture losses	$ 2,711
CP U.S. Share Purchase Agreement
Restructuring Cost And Reserve [Line Items]
Indirect ownership interest	56.00%
Divestiture losses	$ 2,700
Other receivables from GNI	$ 800

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Subsequent Events - Additional Information (Detail) - Convertible Preferred Stock - shares	Jan. 22, 2024	Dec. 31, 2023	Nov. 30, 2023	Nov. 22, 2023
Subsequent Event [Line Items]
Preferred stock, shares issued upon conversion		666.67	13,151	13,151
Number of shares of common stock issuable upon conversion of the outstanding shares		8,767,332
Subsequent Event
Subsequent Event [Line Items]
Number of shares of common stock issuable upon conversion of the outstanding shares	8,767,332

GNI USA Contributions under the Business Combination Agreement - Summary of Summary of Purchase Price (Parenthetical) (Details) - Convertible Preferred Stock - shares	Dec. 31, 2023	Nov. 30, 2023	Nov. 22, 2023	Oct. 31, 2023	Oct. 30, 2023	Oct. 27, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Preferred stock shares issued	13,151			811		811	12,340
Preferred stock, shares issued upon conversion of common stock	666.67	13,151	13,151
Catalyst
Business Acquisition [Line Items]
Preferred stock shares issued					12,340
Preferred stock, shares issued upon conversion of common stock					666.67

Organization and Nature of Operations

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of Operations


1.	Organization and Nature of Operations

Description of Business

Gyre Therapeutics, Inc. (the “Company,” “Gyre,” or the “combined company”), formerly known as Catalyst Biosciences, Inc. (“Catalyst”), is a biopharmaceutical company originally incorporated in Delaware on March 7, 1997 under the name Targacept, Inc. Catalyst was a biopharmaceutical company with expertise in protease engineering. Prior to ceasing research and development activities in March 2022, Catalyst had several protease assets that were designed to address unmet medical needs in disorders of the complement or coagulation systems.

After completion of the transactions under the Business Combination Agreement as described below, Gyre became a financially-sustainable pharmaceutical company with a record of financial success that develops and commercializes small-molecule anti-inflammatory and anti-fibrotic drugs targeting organ diseases, focusing specifically on organ fibrosis. Fibrotic diseases represent a large patient population with significant unmet medical needs.

F351 Asset Acquisition

On December 26, 2022, Catalyst executed and closed an Asset Purchase Agreement, which was amended on March 29, 2023 (the “F351 Agreement”), with GNI Group Ltd. (“GNI Japan”) and GNI Hong Kong Limited (“GNI HK”) to purchase all of the assets and intellectual property rights primarily related to a clinical-stage proprietary Hydronidone compound for the treatment of nonalcoholic steatohepatitis (“NASH”), a severe form of nonalcoholic fatty liver disease (collectively, the “F351 Assets”), other than such assets and intellectual property rights located in the People’s Republic of China (“PRC”).

Business Combination Agreement

On December 26, 2022, Catalyst entered into a Business Combination Agreement, as amended on March 29, 2023 and August 30, 2023 (the “Business Combination Agreement”) with GNI USA, Inc. (“GNI USA”), GNI Japan, GNI HK, Shanghai Genomics, Inc. (“SG” and collectively with GNI USA, GNI Japan and GNI HK, the “Contributors,” and each a “Contributor”), certain individuals (each, a “Minority Holder” and collectively, the “Minority Holders”) and Continent Pharmaceuticals Inc. (“CPI”). On October 30, 2023 (the “Effective Time”), the Contributions (as defined below) became effective and Catalyst acquired an indirect controlling interest in Beijing Continent Pharmaceuticals Co., Ltd. (“BC”). In connection with the Contributions, and immediately prior to the Effective Time of the Contributions, Catalyst amended its certificate of incorporation, increased the number of authorized shares of its common stock, par value $0.001 per share (the “Common Stock”) from 100,000,000 shares to 400,000,000 shares, effected a 1-for-15 reverse stock split (the “Reverse Stock Split”) and changed its name to Gyre Therapeutics, Inc.

Shares of Catalyst Common Stock were previously listed on The Nasdaq Capital Market under the symbol “CBIO.” Catalyst had filed a listing application for the combined company with the Nasdaq Stock Market Inc. (“Nasdaq”). On October 31, 2023, Gyre’s Common Stock commenced trading on the Nasdaq Capital Market under the symbol “GYRE”, on a post-reverse stock split adjusted basis.

Pursuant to the Business Combination Agreement, at the Effective Time of the Contributions, and after giving effect to the 1-for-15 reverse stock split,

GNI USA contributed all of its ordinary shares in the capital of CPI to Catalyst in exchange for 45,923,340 shares of Gyre Common Stock (the “CPI Contribution”),

GNI USA contributed its interest in Further Challenger International Limited (“Further Challenger”) for 17,664,779 shares of Gyre Common Stock (the “FC Contribution” and together with the CPI Contribution, the “GNI USA Contributions”), and

each Minority Holder contributed 100% of the interest he or she held in his or her respective entity in exchange for an aggregate of 10,463,627 shares of Gyre Common Stock (the “Minority Holder Contributions” and together with the GNI USA Contributions, the “Contributions”).

As a result of the GNI USA Contributions, Gyre directly and indirectly holds 100% of CPI’s shares. Through Gyre’s ownership of CPI, prior to the Minority Holder Contributions, Gyre held a 56.0% indirect interest in BC. Upon completion of the Minority Holder Contributions, Gyre obtained additional indirect interests in BC and holds, in aggregate, a 65.2% indirect interest in BC.

Immediately after the closing of the Contributions, excluding potentially dilutive securities, GNI USA owned approximately 83.6% of the outstanding shares of Gyre Common Stock, Catalyst’s existing stockholders, excluding GNI USA, owned approximately 2.8% of the outstanding Gyre Common Stock, and the Minority Holders owned approximately 13.7% of the outstanding shares of Gyre Common Stock. The Convertible Preferred Stock remained outstanding after the closing of the Contributions and is not included in the above ownership percentages.

At the Effective Time, BC terminated its 2021 Stock Incentive Plan (the “2021 Plan”) and the options (the “BC Options”) outstanding under the 2021 Plan were terminated and replaced with options granted under a subplan for Chinese participants under the Gyre 2023 Omnibus Incentive Plan (the “2023 Omnibus Incentive Plan”) that are substantially similar in all material respects to the BC Options previously outstanding under the 2021 Plan.

Each share of Catalyst Common Stock and option to purchase Catalyst Common Stock that was issued and outstanding at the Effective Time remained issued and outstanding, and such shares and options were unaffected by the Contributions.

BC is a commercial-stage biopharmaceutical company registered and established in the PRC in 2002. BC is committed to the research and development of new drugs as well as manufacturing and commercialization of ETUARY (pirfenidone capsule) for the treatment of idiopathic pulmonary fibrosis and other pharmaceutical products. The registered office of BC is located at 60 Shunkang Road, Shunyi District, Beijing, PRC.

The immediate holding company of BC is BJContinent Pharmaceuticals Limited (“BJC”). The intermediate holding company of BC is CPI. Immediately following the Contributions, the immediate holding company of CPI is Gyre. The immediate holding Company of Gyre is GNI USA and the ultimate holding company of Gyre is GNI Japan.

The GNI USA Contributions were treated as an asset acquisition under U.S. generally accepted accounting principles (“U.S. GAAP”), with CPI treated as the accounting acquirer and presented as the predecessor for the post-acquisition SEC reporting purposes. Since Catalyst is the legal acquirer, the GNI USA Contributions were accounted for as a reverse asset acquisition. This determination was based upon the terms of the Business Combination Agreement and other factors including that, immediately following the GNI USA Contributions: (i) GNI USA (as the parent company of CPI immediately prior to the GNI USA Contributions) owns a substantial majority of the voting power of the combined company; (ii) CPI, through GNI USA, has the ability to control the board of directors of the combined company; and (iii) senior management of BC and GNI USA holds a majority of the key positions in senior management of the combined company. Immediately prior to the closing of the Contributions, Catalyst did not meet the definition of a business because Catalyst did not have an organized workforce that significantly contributed to its ability to create output, and substantially all of its fair value was concentrated in in-process research and development (“IPR&D”).

As of the closing date of the GNI USA Contributions, the net assets of Catalyst were recorded at their acquisition-date relative fair values in the accompanying consolidated financial statements of the Company and the reported operating results prior to the GNI USA Contributions are those of CPI.

The Minority Holder Contributions were treated as an equity transaction, where the Company obtained additional indirect interest and maintained its control in BC.

Contingent Value Rights Agreement

Concurrent with the signing of the Business Combination Agreement on December 26, 2022, Catalyst and the Rights Agent (as defined in the CVR Agreement) executed a contingent value rights agreement (the “CVR Agreement”), as amended on March 29, 2023, pursuant to which each holder of Catalyst Common Stock as of January 5, 2023 (the “CVR Holder”), excluding GNI, received one contractual contingent value right (a “CVR”) for each share of Catalyst Common Stock held by such holder. Each CVR entitles the holder thereof to receive certain cash payments in the future. For additional information, see Note 13 — Commitments and Contingencies.

Reverse Stock Split

The Company effected a 1-for-15 reverse stock split immediately prior to the Effective Time of the Contributions. The par value of the Catalyst Common Stock following the Reverse Stock Split was not adjusted and remains at $0.001 per share. All of the Catalyst’s issued and outstanding common stock and options have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented.

All share and per share information has been retroactively adjusted to give effect to the Reverse Stock Split for all periods presented, unless otherwise indicated. Proportionate adjustments were made to the per share exercise price and the number of shares issuable upon the exercise or vesting of all stock options and warrants outstanding, which resulted in a proportional decrease in the number of shares of the Company’s common stock reserved for issuance upon exercise or vesting of such stock options, warrants, and in the case of stock options and warrants, a proportional decrease in the exercise price of such stock options and warrants.

No fractional shares were issued in connection with the Reverse Stock Split and stockholders who would otherwise be entitled to a fraction of one share received a proportional cash payment.

Liquidity

For the year ended December 31, 2023, the Company had a net loss of $85.5 million, while net cash provided by operating activities was $25.9 million. As of December 31, 2023, the Company had an accumulated deficit of $85.5 million and cash and cash equivalents of $33.5 million. Based on the Company’s current operating plan, management believes that existing cash and cash equivalents, cash flows from operations, and access to capital markets will be sufficient to fund the Company’s operating activities and obligations for at least 12 months following the issuance of these consolidated financial statements.

Fair Value Measurements and Financial Instruments - Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Long-term receivable
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions in the period	$ 4,683
Changes in fair value	39
Balance at December 31, 2023	4,722
CVR Derivative Liability
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions in the period	4,683
Changes in fair value	39
Balance at December 31, 2023	4,722
Warrant Liability Non Current
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions in the period	3,574
Changes in fair value	9,261
Balance at December 31, 2023	$ 12,835

Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued payroll and welfare	$ 5,790	$ 5,038
Supplier reimbursement	2,247	2,474
Accrued expenses - general and administrative	1,190
Accrued sales discount	903	748
Accrued professional services	837
Employee reimbursement	648	646
Accrued expenses - research and development	161	158
Accrued expenses - selling expenses	44	13
Deferred government grants	40	22
Other accrued liabilities	75	165
Accrued expenses and other current liabilities	$ 11,935	$ 9,264

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Lessee Disclosure [Abstract]

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	573	$	517

Schedule of Present Value Assumptions used in Calculating Present Value of Lease Payments

The present value assumptions used in calculating the present value of the lease payments were as follows:


	Year Ended December 31,
	2023	2022
Weighted-average remaining lease term	2.2 years	1.5 years
Weighted-average discount rate	4.78%	4.75%

Schedule of Maturity of Operating Lease Liabilities

As of December 31, 2023, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
2024	$	226
2025		103
2026		106
Total undiscounted lease payments		435
Less: imputed interest		(26	)
Total lease liabilities		409
Less: current portion of lease liabilities		(210	)
Lease liabilities, net of current portion	$	199

Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events


19.	Subsequent Events

Conversion of Convertible Preferred Stock

On November 22, 2023, GNI provided notice to the Company to convert 13,151 shares of Convertible Preferred Stock into shares of common stock. On January 22, 2024, subject to the terms and conditions of the Convertible Preferred Stock Certificate of Designation, 8,767,332 shares of common stock were issued to GNI upon such conversion.

Financial Statements Schedule I Financial Information of Parent Company - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Total current assets:	$ 57,221	$ 49,653
Total assets	116,539	84,753
Current liabilities:
Due to related parties	1,369	118
Accrued expenses and other current liabilities	11,935	9,264
Total liabilities	38,065	12,536
Total current liabilities:	20,047	12,242
Stockholders (deficit) equity:
Common stock, $0.001 par value, 400,000,000 shares authorized; 76,595,616 shares and 63,588,119 shares issued and outstanding at December 31, 2023 and 2022, respectively	77	64
Additional paid-in capital	68,179	32,795
Statutory Reserve	3,098	2,660
(Accumulated deficit) retained earnings	(85,538)	7,395
Accumulated other comprehensive loss	(1,644)	(392)
Total Gyre stockholders' (deficit) equity	(15,828)	42,522
Total liabilities, convertible preferred stock, and equity	116,539	84,753
Parent Company
Current assets:
Total current assets:	768	3,159
Investment in subsidiaries	49,709	40,632
Total assets	50,477	43,791
Current liabilities:
Accrued expenses and other current liabilities	1,242	1,264
Total current liabilities:	1,780	1,269
Stockholders (deficit) equity:
Common stock, $0.001 par value, 400,000,000 shares authorized; 76,595,616 shares and 63,588,119 shares issued and outstanding at December 31, 2023 and 2022, respectively	77	64
Additional paid-in capital	68,179	32,795
Statutory Reserve	3,098	2,660
(Accumulated deficit) retained earnings	(85,538)	7,395
Accumulated other comprehensive loss	(1,644)	(392)
Total Gyre stockholders' (deficit) equity	(15,828)	42,522
Total liabilities, convertible preferred stock, and equity	50,477	43,791
Parent Company \| Related Party
Current assets:
Related party receivables	768	3,159
Current liabilities:
Due to related parties	538	5
Convertible Preferred Stock
Current liabilities:
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 13,151 shares and nil shares issued and outstanding at December 31, 2023 and 2022, respectively	64,525
Convertible Preferred Stock \| Parent Company
Current liabilities:
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 13,151 shares and nil shares issued and outstanding at December 31, 2023 and 2022, respectively	$ 64,525

Liquidity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2023	Oct. 27, 2023	Oct. 15, 2021
Liquidity [Line Items]
Common stock, par value	$ 0.001	$ 0.001
Accumulated deficit	$ 85,538	$ (7,395)
Cash, cash equivalents and short-term investments	33,500
Net loss	$ 85,480	$ (4,314)
Convertible Preferred Stock
Liquidity [Line Items]
Preferred stock shares issued	13,151	12,340	811	811
Common Stock
Liquidity [Line Items]
Common stock, par value	$ 0.001
2021 ATM Program
Liquidity [Line Items]
Common stock, par value					$ 0.001
Percentage of commission for shares sold					3.00%

Convertible Preferred Stock - Additional Information (Details) - $ / shares	Dec. 31, 2023	Nov. 30, 2023	Nov. 22, 2023	Oct. 31, 2023	Oct. 27, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Preferred stock shares authorized	5,000,000
Preferred stock par value per share	$ 0.001
Preferred Stock Warrants
Class of Stock [Line Items]
Warrants to purchase shares				811	811
Convertible Preferred Stock
Class of Stock [Line Items]
Preferred stock shares authorized	125,040
Preferred stock, shares outstanding	13,151
Preferred stock shares issued	13,151			811	811	12,340
Preferred stock, shares issued upon conversion	666.67	13,151	13,151
Number Of Shares Of Common Stock Issuable Upon Conversion Of The Outstanding Shares	8,767,332

Financial Statements Schedule I Financial Information of Parent Company - Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating expenses:
General and administrative	$ 14,662	$ 17,370
Divestiture losses	2,711
Income (loss) before income taxes	(76,965)	9,412
Net (loss) income	(85,480)	4,314
Other comprehensive (loss) income:
Foreign currency translation adjustments	(1,484)	(4,928)
Comprehensive (loss) attributable to common stockholders	(93,770)	(456)
Parent Company
Operating expenses:
General and administrative	605	94
Divestiture losses	2,711
Income (loss) before income taxes	3,316	94
Equity in (loss) income of subsidinaries	(89,617)	2,396
Net (loss) income	(92,933)	2,302
Other comprehensive (loss) income:
Foreign currency translation adjustments	(837)	(2,758)
Comprehensive (loss) attributable to common stockholders	$ (93,770)	$ (456)

EPS - Basic and Diluted EPS Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net (loss) income from operations	$ (85,480)	$ 4,314
Less: Allocation of undistributed earnings to noncontrolling interest	7,453	2,012
Net (loss) income attributable to common stockholders	(92,933)	2,302
Net (loss) income attributable to common stockholders - diluted	$ (92,933)	$ 2,302
Weighted average common shares outstanding	65,831,675	63,588,119
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, basic	65,831,675	63,588,119
Weighted average of common stock options		12,098,287
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, diluted	65,831,675	75,686,406
Net (loss) income per share attributable to common stockholders, basic	$ (1.41)	$ 0.04
Net (loss) income per share attributable to common stockholders, diluted	$ (1.41)	$ 0.03

EPS

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

EPS


16.	EPS

The dilutive effect of outstanding stock options and warrants is calculated using the treasury stock method. Stock options and warrants are anti-dilutive and excluded from the diluted net income per share attributable to common stock calculation if the exercise price exceeds the average market price of the common shares.

The following table sets forth the computation of EPS attributable to common stockholders, basic and diluted (in thousands, except share and per share data):


	Year Ended December 31,
	2023			2022
Numerator:
Net (loss) income from operations	$	(85,480	)	$	4,314
Less: Allocation of undistributed earnings to noncontrolling interest		7,453			2,012
Net (loss) income attributable to common stockholders - basic and diluted	$	(92,933	)	$	2,302

Denominator:
Basic common shares outstanding:
Weighted average common shares outstanding		65,831,675			63,588,119
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, basic		65,831,675			63,588,119

Dilutive potential common shares:
Weighted average of common stock options		—			12,098,287
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, diluted		65,831,675			75,686,406

Net (loss) income per share attributable to common stockholders:
Basic	$	(1.41	)	$	0.04
Diluted	$	(1.41	)	$	0.03

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	December 31,
	2023
Options to purchase common stock		18,280,548
Convertible Preferred stock (as converted)		8,767,332
Preferred Stock Warrants (as converted)		540,666
Total		27,588,546

Stock Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of Shares Underlying Outstanding Options
Number of Shares Underlying Outstanding Options, Beginning Balance	17,036,941
Number of Shares Underlying Outstanding Options, Options Forfeited	(18,936)
Number of Shares Underlying Outstanding Options, Deemed issuance of options to former stockholders of Catalyst upon the GNI USA Contributions	435,916
Number of Shares Underlying Outstanding Options, Options granted	838,686	0
Number of Shares Underlying Outstanding Options, Options Exercised	(12,059)	0
Number of Shares Underlying Outstanding Options, Ending Balance	18,280,548	17,036,941
Number of Shares Underlying Outstanding Options, Exercisable- December 31, 2022	18,262,686
Weighted- Average Exercise Price
Weighted- Average Exercise Price, Beginning Balance	$ 0.75
Weighted- Average Exercise Price, Options forfeited	0.75
Weighted- Average Exercise Price, Option, Deemed issuance of options to former stockholders of Catalyst upon the GNI USA Contributions	20.1
Weighted- Average Exercise Price, Options granted	6.93
Weighted- Average Exercise Price, Options Exercised	13.86
Weighted- Average Exercise Price, Ending Balance	1.49	$ 0.75
Weighted- Average Exercise Price, Exercisable - December 31, 2022	$ 1.48
Weighted-Average Remaining Contractual Term (Years)
Weighted-Average Remaining Contractual Term (Years), Outstanding Balance	6 years 10 months 24 days	5 years 1 month 6 days
Weighted Average Remaining Contractual Term, Exercisable - December 31, 2022	6 years 10 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 444,197	$ 12,667
Aggregate Intrinsic Value, Exercisable - December 31, 2023	$ 19,433

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies


2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries have been prepared in accordance with U.S. GAAP. Intercompany accounts and transactions, if applicable, have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, allowance of doubtful accounts, long-term receivable, CVR derivative liability, warrant liability, allowance for credit losses, reserves for excess or obsolete inventory, operating lease right-of-use assets and liabilities, recognition of research and development expenses to the appropriate financial reporting period based on the progress of the research and development projects, income taxes, stock-based compensation and useful lives of property and equipment and intangibles with definite lives. The Company bases its estimates on various assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Noncontrolling Interest

The Company reports noncontrolling interest (“NCI”) in a subsidiary as a separate component of equity in the consolidated balance sheets. Additionally, the Company reports the portion of net income (loss) and comprehensive income (loss) attributed to the Company and NCI separately in the consolidated statements of operations and comprehensive income (loss).

Segments

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM, as a group, includes Gyre’s Chief of Executive Officer (“CEO”), BC’s General Manager, and the Chairman of Gyre’s Board of Directors (“Gyre’s Board”). The Company has determined that it operates in two distinct operating segments and has two reportable segments.

Risks and Uncertainties

The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from larger and established companies, uncertainty of clinical results, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company, and general economic conditions.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, accounts and note receivable, and long-term certificates of deposits.

As of December 31, 2023 and 2022, the Company had cash of $33.5 million and $25.2 million, respectively, and long-term certificates of deposit of $23.4 million and $7.4 million, respectively.

The Company is exposed to United States credit risk in the event of default by the United States institutions holding cash to the extent beyond the amount insured by the United States federal depository insurance corporation.

In May 2015, a new Deposit Insurance System (“DIS”) managed by the People’s Bank of China was implemented by the Chinese government. Deposits in the licensed banks in mainland China are protected by DIS, up to a limit of Chinese Renminbi (“RMB”) 500,000. The Company maintains cash and deposits in excess of the amount protected by DIS and in the event of bankruptcy of one of these financial institutions, the Company may be unable to claim its deposits back in full. Management believes that these financial institutions are of high credit quality and continually monitors the creditworthiness of these financial institutions.

Accounts receivable are typically unsecured and are derived from product sales. The Company manages credit risk related to the accounts receivable through ongoing monitoring of outstanding balances and limiting the amount of credit extended based upon payment history and creditworthiness. Historically, the Company has collected receivables from customers within the credit terms with no significant credit losses incurred.

Concentration of Customer Risk

For the years ended December 31, 2023 and 2022, one customer, Sinopharm Group Co., Ltd., accounted for approximately 50.5% and 45.1%, of accounts receivable, respectively. For the year ended December 31, 2023, three customers known as Sinopharm Group Co., Ltd., China Resources Pharmaceutical Group Ltd, and Shanghai Pharmaceuticals Holding Co., Ltd accounted for approximately 50.1%, 13.7%, and 11.2% of total revenue respectively. For the year ended December 31, 2022, three customers known as Sinopharm Group Co., Ltd., Shanghai Pharmaceuticals Holding Co., Ltd, and China Resources Pharmaceutical Group Ltd accounted for approximately 47.7%, 11.6%, and 10.8% of total revenue respectively. All customers are located in the PRC.

Cash and Cash Equivalents

The Company invests portion of its excess cash in bank deposits, consisting primarily of money market mutual funds. The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents.

Fair Value Measurements

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis.

Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The fair value hierarchy requires that an entity maximize the use of observable inputs when estimating fair value. The fair value hierarchy includes the following three-level classification which is based on the market observability of the inputs used for estimating the fair value of the assets or liabilities being measured:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Derivative Financial Instruments

The Company evaluates its contracts to determine if those contracts qualify as derivatives under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date. Any changes in fair value are recorded as non-operating, non-cash other income or expense for each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is probable within the next 12 months from the balance sheet date.

The Company determined that certain contingent payments under the CVR Agreement qualified as derivatives under ASC 815, and as such, were recorded as a liability. Refer to Note 3 — Fair Value Measurements and Financial Instruments and Note 13 — Commitments and Contingencies for additional information regarding the CVR derivative liability.

Preferred Stock Warrants

Warrants to purchase shares of the Convertible Preferred Stock (“Preferred Stock Warrants”) are freestanding financial instruments classified as warrant liability on the Company’s consolidated balance sheets since the underlying securities are contingently redeemable upon the occurrence of events which are outside of the Company’s control. The Preferred Stock Warrants are recorded at fair value upon issuance and are subject to remeasurement at the end of each reporting period. Any change in the fair value of the Preferred Stock Warrants is recorded as changes in fair value of warrant liability in other income (expense), net on the consolidated statement of operations and comprehensive income (loss). The Company adjusts the liability for changes in fair value of the Preferred Stock Warrants until the warrants are exercised or expired.

Convertible Preferred Stock

The Company records shares of non-voting Convertible Preferred Stock at its relative fair value on the date of issuance. The Company applied the guidance in ASC 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities, to account for the Convertible Preferred Stock. The Convertible Preferred Stock could become redeemable upon the occurrence of an event that is not solely within the control of the issuer and therefore, is classified within mezzanine equity in the accompanying consolidated balance sheets.

Long-term Certificates of Deposit

The long-term certificates of deposit will mature between February 2025 and July 2026. Certificates of deposit are accounted for at amortized cost with no adjustments for changes in fair value. Premiums and discounts, if any, are amortized or accreted over the lives of the related fixed maturities as an adjustment to the yield using the effective interest method. The Company recorded no allowance for credit losses associated with the certificates of deposit as of December 31, 2023 and 2022.

Long-Term Receivable

Catalyst sold its legacy rare bleeding disorder program to GC Biopharma Corp. (“GCBP”) in February 2023. The Company determined that the hold-back from the GCBP asset sale qualified as a long-term receivable. The receivable is considered a loan held for investment since the Company has the intent and ability to hold to maturity. The Company has elected to account for the receivable under the fair value option method of accounting and any changes in fair value are recorded in interest and other income, net on the consolidated statement of operations and comprehensive income (loss). Refer to Note 3 — Fair Value Measurements and Financial Instruments for additional information regarding the long-term receivable.

Accounts and Note Receivables, Net

The Company recognizes a receivable when it has an unconditional right to payment, which represents the amount the Company expects to collect in a transaction. The Company’s trading terms with its customers are mainly on credit, and the credit period is usually within three months. Accounts and note receivables are recorded at net realizable value. The allowance for credit losses is determined by management’s best estimate of expected credit losses of the receivables based on historical data, current information, and future economic forecasts. Receivables are grouped into asset pools based on delinquency status and customer type, with fixed reserve percentages set for each pool. The reserve percentages are determined by considering factors such as historical experience with customers, regulatory and legal environments, and other relevant current and future macroeconomic factors.

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


	December 31,
	2023			2022
Accounts receivable	$	15,204			$	15,738
Note receivable		389				1,522
Allowance for credit losses		(41	)			(124	)
Accounts and note receivables, net	$	15,552			$	17,136

Changes in the allowance for credit losses as of December 31, 2023 and 2022 consisted of the following (in thousands):


	2023			2022
Balance, beginning of year	$	(124	)		$	(70	)
Provision for allowance for credit losses		—				(88	)
Recoveries collected and write-off		82				26
Foreign currency translation adjustments		1				8
Balance, end of year	$	(41	)		$	(124	)

Inventories, Net

Inventories, consisting of raw materials, work in progress, and finished goods, are valued at the lower of cost or net realizable value with cost being determined on the first-in, first-out method. The Company will record a write-down to its net realizable value in cost of sales in the periods that the decline in value is first identified. The average cost of work in progress and finished goods consists primarily of material, labor and manufacturing overhead expenses (including fixed production-overhead costs) and includes the services and products of third-party suppliers. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and disposal. The Company also regularly monitors inventory quantities on hand and in transit, and reserves for excess and obsolete inventories using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, and expiration and age of on-hand inventory. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory. If actual conditions or product demands are less favorable than assumptions, additional inventory reserves may be required.

Property and Equipment, Net

Property and equipment, except for construction-in-progress, are stated at cost less accumulated depreciation and any impairment losses. The cost of an item of property and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use.

Expenditure incurred after items of property and equipment that have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. Where significant parts of property and equipment are required to be replaced at intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciates them accordingly.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Buildings	20 to 30 years
Leasehold improvement	Shorter of the estimated useful life or the term of the lease
Machinery and electronic devices	3 to 10 years
Furniture and fixtures	3 to 5 years
Motor vehicles	3 to 5 years

Where parts of an item of property and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately.

An item of property and equipment including any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net sales proceeds and the carrying amount of the asset is recorded as gain or loss in profit or loss in the reporting period the relevant asset is derecognized.

Construction in progress represents a building under construction or machinery not yet put into operation, which is stated at cost less any impairment losses, if applicable, and is not depreciated. Cost comprises the direct costs of construction and machinery, and capitalized borrowing costs on related funds borrowed during the period of construction. Construction in progress is reclassified to the appropriate category of property and equipment when completed and ready for use.

Property and equipment is reviewed for impairment when events or circumstances exist which suggest that the carrying amount of the asset group may not be recoverable.

Intangible Assets, Net

Intangible assets acquired separately are measured upon initial recognition at cost. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives, consisting primarily of patents,

technological know-how and computer software, are subsequently amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

Patents and Technological Know-How

Patents and technological know-how that have finite useful lives are stated at cost less any impairment losses and are amortized on a basis that best reflects how their economic benefits are utilized or on the straight-line basis, if not materially different from actual utilization, over their estimated useful life of 10 to 20 years.

Computer Software

Purchased computer software is stated at cost less any impairment losses and is amortized on the straight-line basis over its estimated useful life of two to three years.

Leases

The Company assesses at contract inception whether a contract is, or contains, a lease based on the unique facts and circumstances present. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the accompanying consolidated balance sheets. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the expected lease term at commencement date or the lease modification date, if applicable. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the ROU assets may be required for items such as initial direct costs paid or incentives received.

The Company determines the expected lease term as the noncancelable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s leases do not contain any residual value guarantees.

The Company has elected to combine lease and non-lease components as a single component. The lease expense for minimum lease payments is recognized over the expected term on a straight-line basis. Variable lease payments, which are primarily comprised of property maintenance, taxes, and other payments based on usage, are recognized when the expense is incurred.

Land Use Rights, Net

All land in mainland China is subject to government or collective ownership, and land use rights can be purchased for a specified period of time. The purchase price of land use rights represents the operating lease prepayments under ASC Topic 842, Leases and is recorded as land use rights, net asset on the consolidated balance sheets, which is amortized over the remaining lease term.

Impairment of Long-Lived Assets

Long-lived assets, including property and equipment, finite-lived intangible assets, ROU assets and land use rights, are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the asset group level, i.e., the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts of an asset group to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such a review indicates the carrying amount of the asset group is not recoverable, an impairment loss shall be measured as the amount by which the carrying

amount of an asset group exceeds its fair value. Any impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the carrying amount of an individual asset shall not be reduced below its fair value. Calculating the fair value of the assets involves significant estimates and assumptions. These estimates and assumptions include, among others, projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and the determination of appropriate market comparables. Changes in these factors and assumptions used can materially affect the amount of impairment loss recognized in the period the asset was considered impaired. The Company did not record any impairment of long-lived assets as of December 31, 2023 and 2022.

Income Tax Expense

Income taxes are recorded using the liability method, under which deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are recorded against deferred tax assets, including net operating losses and tax credits, when it is determined it is more-likely-than-not that some or all of the tax benefits will not be realized.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC Topic 740, Income Taxes. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances.

Interest and penalties related to unrecognized tax benefits, if any, are recorded as a component of income tax expense.

Revenue Recognition

The Company records revenue in accordance with ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers, whereby revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. A five-step model is used to achieve the core principle: (1) identify the customer contract, (2) identify the contract’s performance obligations, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations and (5) recognize revenue when or as a performance obligation is satisfied. The Company applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

(a) Sale of Pharmaceutical Products

The Company mainly sells its pharmaceutical products to distributors in the PRC, who ultimately sell the products to hospitals, other medical institutions and pharmacies. Revenue from the sale of pharmaceutical products is recognized at the point in time when control of the product is transferred to the customer, generally upon completion of quality inspection by the distributor after delivery of the pharmaceutical products.

The Company records revenue for product sales, net of estimated product returns. Customers have limited return rights related only to the product damage or defect identified upon delivery of the product. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of revenue and a refund liability in the period the related product revenue is recognized. To date, actual returns have not differed materially from the Company’s estimates.

Rebates are offered to distributors, consistent with pharmaceutical industry practices. The estimated amounts of unpaid or unbilled rebates are recorded as a reduction of revenue, if any. Estimated rebates are determined based on contracted rates and sales volumes and, to a lesser extent, distributor inventories. The Company regularly reviews the information related to these estimates and adjusts the amounts accordingly. The Company uses the expected value method to estimate the amount of consideration to which it will be entitled.

The requirements on constraining estimates of variable consideration, i.e., when it is probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved, are applied and the expected future rebates are deducted from the trade receivables from the customers.

The Company has applied the practical expedients under ASC 606 with regard to assessment of financing component and concluded that there is no significant financing component given that the period between delivery of goods and payment is generally one year or less.

(b) License of Intellectual Property

Revenue from a license agreement is recognized at a point in time when the control of the right to use the license is transferred to the customer. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time.

Development or regulatory milestone payments, which are included in the transaction price to the extent that it is probable that a significant reversal of accumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments that are not within the control of the Company, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of any milestones, and if necessary, adjusts its estimated transaction price on a cumulative catch-up basis.

The Company did not recognize any contract assets as of December 31, 2023 and 2022.

Deferred Revenue

Deferred revenue is recognized when a payment is received from a customer before the Company transfers the related goods or services. Deferred revenue is recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer). As of December 31, 2023, the Company’s deferred revenue balance was $39,000. Deferred revenue was $145,000 as of December 31, 2022 which has been recognized as revenue during the year ended December 31, 2023.

Cost of Revenue

Cost of revenue mainly consists of cost of sales representing direct and indirect costs incurred to bring the product to saleable condition. Cost of sales primarily consists of (i) raw material costs; (ii) staff costs for production employees; (iii) depreciation and amortization related to property and equipment and intangible assets used in production; (iv) taxes and surcharges; (v) transportation costs; and (vi) miscellaneous other costs.

Stock-Based Compensation

The Company measures the cost of employee, non-employee and director services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant. For equity awards that only contain service conditions, the Company recognizes the related expense over the period during which the employee, non-employee or director is required to provide service in exchange for the award on a straight-line basis. The estimated fair value of equity awards that contain performance conditions is expensed over the term of the award once the Company has determined that it is probable that performance conditions will be satisfied. The cost is recognized with a corresponding increase in equity.

Determining the fair value of stock-based awards at the grant date requires judgment. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options. The determination of the grant date fair value of options using an option-pricing model is affected by the Company’s assumptions regarding a number of variables including the fair value of its common stock, its expected common stock price volatility over the expected

life of the options, expected term of the stock option, risk-free interest rates and expected dividends. The Company elected to account for forfeitures when they occur.

For awards that do not ultimately vest because non-market performance or service conditions have not been met, no expense is recognized. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and service conditions are satisfied.

Where the terms of an equity award are modified, a minimum expense is recognized as if the terms had not been modified if the original terms of the award are met. In addition, an expense is recognized for any modification that increases the total fair value of the stock-based payments or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the Company or the employee are not met. However, if a new award is substituted for the cancelled award and is designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

Acquired IPR&D

The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, which includes transaction costs. Goodwill is not recognized in asset acquisitions. In an asset acquisition, the cost allocated to acquired IPR&D with no alternative future use is charged to expense at the acquisition date. Refer to Note 7 — GNI USA Contributions under the Business Combination Agreement for a more detailed description.

Research and Development Expenses

Research and development costs are expensed as incurred. Nonrefundable advance payments for goods or services used in research and development are initially deferred and capitalized in prepaid and other current assets. The capitalized amounts are then expensed as the related goods are delivered or services are performed, or until it is no longer expected that the goods or services will be delivered. Research and development costs consist of payroll and other personnel-related expenses, laboratory supplies and reagents, contract research and development services, materials, and consulting costs, as well as allocations of facilities and other overhead costs.

Selling and Marketing Expenses

Selling and marketing expenses primarily relate to sales of ETUARY and consist of conference expenses incurred from hosting academic conferences, seminars and symposia; promotional expenses associated with market education on ETUARY for its use in hospitals; and staff costs primarily consisting of salaries and benefits for in-house marketing and promotion staff.

General and Administrative Expenses

General and administrative expenses consist of (i) accounting, IT, legal, administrative, and other internal service staff costs; (ii) stock-based compensation representing share options granted to its functional employees; (iii) professional service fees, primarily for legal and accounting services; and (iv) other miscellaneous expenses.

Government Grants

Government grants are recognized at their fair value where there is reasonable assurance that the grant will be received, and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the costs, for which it is intended to compensate, are expensed. Where the grant relates to an asset, the fair value is credited to a deferred income account and is released to profit or loss over the expected useful life of the relevant asset by equal annual installments or deducted from the carrying

amount of the asset and released to profit or loss by way of a reduced depreciation charge. Grant income is included within other income in the consolidated statements of operations and comprehensive (loss) income.

Interest Income

Interest income is recognized on an accrual basis using the effective interest method by applying the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset.

Comprehensive Income (Loss)

The Company is required to report all components of comprehensive income (loss), including net income (loss), in the accompanying consolidated financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including net income, unrealized gains and losses on investments and foreign currency translation adjustments.

Net Income (Loss) Per Share (“EPS”) Attributable to Common Stockholders

The Company calculates basic and diluted EPS attributable to common stockholders in accordance with ASC Topic 260, Earnings per Share (“ASC 260”), which requires EPS for each class of stock (common stock and participating securities) to be calculated using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings attributable to stockholders. The two-class method requires earnings available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all earnings for the period had been distributed. The Company’s Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. The Convertible Preferred Stock contractually entitled the holders of such shares to participate in dividends but does not contractually require the holders of such shares to participate in the Company’s losses. As such, net losses attributable to stockholders for the periods presented were not allocated to these securities.

Basic EPS is calculated by dividing net income or loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed by giving effect to all potentially dilutive securities outstanding for each period presented. For periods in which the Company reports net loss attributable to common stockholders, diluted EPS attributable to common stockholders is the same as basic EPS attributable to common stockholders since the effects of potentially dilutive securities are antidilutive. See Note 16 — EPS for more information.

Foreign Currency Translation and Remeasurement

The functional currency of the Company is the US Dollar. The local currency of foreign operations, except for those in highly inflationary economies, generally are considered to be their functional currency. The functional currency of BC is RMB. The determination of the respective functional currency is based on the criteria stated in ASC Topic 830, Foreign Currency Matters. The Company uses the U.S. Dollar as its reporting currency.

Assets and liabilities are translated at foreign exchange rates on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenue and expenses are translated at the average foreign exchange rates. The effects of these translation adjustments are reported within accumulated other comprehensive income in the consolidated balance sheets and consolidated statements of convertible preferred stock and equity, with the translation gain (loss) shown as a separate component of other comprehensive income (loss) in the accompanying consolidated statements of operations and comprehensive (loss) income. During the year ended December 31, 2023, the Company had translation loss of $1.5 million. During the year ended December 31, 2022, the Company had translation loss of $4.9 million.

Foreign currency gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included within other income (expense), net in the consolidated statements of

operations and comprehensive (loss) income. The foreign currency transaction gains or losses for the years ended December 31, 2023 and 2022 were immaterial.

Foreign Currency Risk

The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. 99.5% of the Company’s cash and long-term certificates of deposit as of December 31, 2023 of $26.5 million and $23.4 million, respectively, were denominated in RMB.

Accounting Pronouncements Recently Adopted

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this ASU 2021-04 are effective for all entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company adopted ASU 2021-04 and related updates on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements.

In August 2020, FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the previous models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2021. The Company adopted ASU 2020-06 on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations – Accounting for Contract Assets and Contact Liabilities from Contracts with Customers. The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASC 606 as if they had originated the contracts, as opposed to at fair value on the acquisition date. The Company adopted ASU 2021-08 and related updates on January 1, 2023. The adoption of ASU 2021-08 had no impact on the consolidated financial statements.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance. The amendments in this ASU require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this ASU are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Company adopted this standard as of January 1, 2022. The adoption of this ASU did not have any material impact on the Company’s consolidated financial statements.

New Accounting Pronouncements – Issued But Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the CODM and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment

performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company plans to adopt annual requirements and related updates under ASU 2023-07 on January 1, 2024 and interim requirements under ASU 2023-07 on January 1, 2025. The Company is currently assessing the impact of adoption of this standard on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in the required additional disclosures being included in the Company’s consolidated financial statements, once adopted. The Company plans to adopt ASU 2023-09 and related updates as of January 1, 2025. The Company will assess the impact of adoption of this standard on its consolidated financial statements.

Stock Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions			1 Months Ended		12 Months Ended
	Oct. 31, 2023 Individual	Oct. 30, 2023 USD ($) shares	Oct. 31, 2023 USD ($)	Feb. 28, 2021	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance					27,588,546	17,036,941
Weighted average grant date fair value of stock options \| $ / shares					$ 5.45
Option exercised					12,059	0
Aggregate intrinsic value of options exercised \| $					$ 0.1
Options granted					838,686	0
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized employee stock based compensation expense \| $					$ 0.1
Unrecognized employee stock based compensation expense, period for recognition					1 year 10 months 13 days
Gyre
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding shares of common stock					2.80%
2023 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance		17,845,496
Percentage of outstanding shares of common stock					5.00%
Options vested		820,824
Incremental stock-based compensation \| $		$ 0.8
Expiration period		Oct. 30, 2030
2023 Incentive Plan \| Gyre
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of individuals approved grants by board \| Individual	5
BC 2021 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms of award				7 years
BC 2021 Stock Incentive Plan \| BC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental stock-based compensation \| $			$ 2.0
Expiration period			Feb. 03, 2028

EPS (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Basic and Diluted EPS Attributable to Common Stockholders

The following table sets forth the computation of EPS attributable to common stockholders, basic and diluted (in thousands, except share and per share data):


	Year Ended December 31,
	2023			2022
Numerator:
Net (loss) income from operations	$	(85,480	)	$	4,314
Less: Allocation of undistributed earnings to noncontrolling interest		7,453			2,012
Net (loss) income attributable to common stockholders - basic and diluted	$	(92,933	)	$	2,302

Denominator:
Basic common shares outstanding:
Weighted average common shares outstanding		65,831,675			63,588,119
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, basic		65,831,675			63,588,119

Dilutive potential common shares:
Weighted average of common stock options		—			12,098,287
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, diluted		65,831,675			75,686,406

Net (loss) income per share attributable to common stockholders:
Basic	$	(1.41	)	$	0.04
Diluted	$	(1.41	)	$	0.03

Anti-dilutive Security not Included in Diluted per Share Calculations

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	December 31,
	2023
Options to purchase common stock		18,280,548
Convertible Preferred stock (as converted)		8,767,332
Preferred Stock Warrants (as converted)		540,666
Total		27,588,546

Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Segment Reporting Information [Line Items]

Revenues

$ 113,450

$ 102,290

Cost of revenues

4,636

4,793

Gross profit

108,814

97,497

Operating expenses excluding cost of revenues:

Selling and marketing

61,159

54,238

Research and development

13,780

16,686

General and administrative

14,662

17,370

Acquired in-process research and development

83,104

Divestiture losses

2,711

Loss on disposal of property and equipment

628

Total operating expenses excluding cost of revenues

176,044

88,294

Income (Loss) from operations

(67,230)

9,203

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

7,281

13,366

Total assets

116,539

84,753

Purchase of property and equipment

(8,517)

(4,985)

Cost of revenue

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

249

Selling and marketing

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

344

1,643

Research and development

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

481

2,301

General and administrative

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

6,404

9,173

Segment Reporting Information [Line Items]

Revenues

113,450

102,290

Cost of revenues

4,636

4,793

Gross profit

108,814

97,497

Operating expenses excluding cost of revenues:

Selling and marketing

61,159

54,238

Research and development

13,698

16,686

General and administrative

8,872

17,240

Loss on disposal of property and equipment

628

Total operating expenses excluding cost of revenues

84,357

88,164

Income (Loss) from operations

24,457

9,333

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

2,793

13,366

Total assets

101,761

79,857

Purchase of property and equipment

(8,517)

4,985

BC | Cost of revenue

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

249

BC | Selling and marketing

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

344

1,643

BC | Research and development

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

481

2,301

BC | General and administrative

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

1,916

9,173

Gyre

Operating expenses excluding cost of revenues:

Research and development

General and administrative

5,214

Acquired in-process research and development

83,104

Total operating expenses excluding cost of revenues

88,400

Income (Loss) from operations

(88,400)

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

4,488

Total assets

13,865

Gyre | General and administrative

Supplemental Disclosure of stock-based compensation expense

Stock-based compensation

4,488

Other

Segment Reporting Information [Line Items]

Gross profit

Operating expenses excluding cost of revenues:

General and administrative

576

^[1]

130

^[2]

Divestiture losses

^[3]

2,711

Total operating expenses excluding cost of revenues

3,287

130

Income (Loss) from operations

(3,287)

(130)

Supplemental Disclosure of stock-based compensation expense

Total assets

$ 913

$ 4,896

[1]

(1) $0.6 million represents legal expense recorded in CPI during the year ended December 31, 2023.

[2]

(3) $0.1 million represents the other subsidiaries, CPI and GNI HK, etc. reported an aggregate $0.1 million general and administrative expense during the year ended December 31, 2022.

[3]

(2) $2.7 million represents divestiture losses. See Note 8 for details.


	December 31, 2023
	BC		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539


	Year Ended December 31, 2022
	BC			Gyre		Other		Consolidated
Purchase of property and equipment	$	(8,517	)	$	—	$	—	$	(8,517	)

Balance Sheet Components - Schedule of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Inventory, Net [Abstract]
Raw materials	$ 919	$ 1,056
Work in progress	1,997	3,667
Finished goods	1,365	1,399
Inventories, net	$ 4,281	$ 6,122

Summary of Significant Accounting Policies - Schedule of Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Balance, beginning of year	$ (124)	$ (70)
Provision for allowance for credit losses		(88)
Recoveries collected and write-off	82	26
Foreign currency translation adjustments	1	8
Balance, end of year	$ (41)	$ (124)

Balance Sheet Components - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Inventory reserves	$ 46,000	$ 9,000
Government grants received	1,100,000	800,000
Government grant income	1,000,000	900,000
Depreciation expense	$ 1,000,000	$ 900,000

Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions


15.	Related Party Transactions

F351 Transfer Agreement

Pursuant to the F351 Transfer Agreement (see Note 13), as part of the consideration, BC paid $2.6 million and $8.9 million to GNI during the years ended December 31, 2021 and December 31, 2020, respectively.

Research and development with GNI

No research and development fees were paid to GNI during the year ended December 31, 2023. During the year ended December 31, 2022, the Company paid $0.2 million as research and development fees to GNI.

As of December 31, 2023 and 2022, the Company had a $1.4 million and $0.1 million related parties payable due to GNI, respectively.

Other receivables from GNI

As of December 31, 2023, the Company had recorded $1.3 million in other receivables from GNI, of which $0.8 million was from CPI’s restructuring transaction (see Note 8) and $0.5 million was from Gyre’s cost sharing with GNI. No amounts were due from GNI as of December 31, 2022.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Significant Components of the Company's Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Accruals and reserves	$ 2,811	$ 183
Deferred revenue	39
Net operating loss carry forwards	40,669
Other equity investments		150
Tax credit carry forwards	4,463
Fixed and intangible assets	15,332	3,428
Impact from foreign corporations	4,590
Capitalized transaction costs	658	414
Lease liabilities	98
Deferred income tax assets before valuation allowance	68,660	4,175
Deferred tax liability - ROU assets	(108)
Deferred tax liability - Fixed assets	(84)	(94)
Less valuation allowance	(63,773)
Deferred tax assets, net	$ 4,695	$ 4,081

GNI USA Contributions under the Business Combination Agreement - Summary of Purchase Price (Details) - USD ($)
$ / shares in Units, $ in Thousands

Oct. 30, 2023

Dec. 31, 2023

Dec. 31, 2022

Business Acquisition [Line Items]

Catalyst common stock outstanding

76,595,616

63,588,119

Catalyst

Business Acquisition [Line Items]

Catalyst common stock outstanding

2,532

Multiplied by the fair value per share of Catalyst stock

^[1]

$ 7.67

Fair value of common shares to be owned by Catalyst's stockholders

$ 19,420

Fair value of preferred shares to be owned by Catalyst's stockholders

^[2]

63,099

Fair value of Catalyst

82,519

Pre-GNI USA Contributions Catalyst stock options assumed by CPI

^[3]

1,829

Fair value of consideration issued

84,348

Acquisition costs

659

Total Purchase price

$ 85,007

[1]	The purchase price was based on the closing price of Catalyst Common Stock on October 30, 2023.
[2]	This amount is calculated based on 12,340 shares of Convertible Preferred Stock outstanding as of October 30, 2023. Each share of preferred stock converts into approximately 666.67 shares of common stock. The fair value was calculated using the closing price of Catalyst Common Stock on October 30, 2023 and the number of underlying common shares.
[3]	Any option to purchase Catalyst Common Stock that was issued and outstanding at the Effective Time remains issued and outstanding and unaffected by the GNI USA Contributions. In a reverse acquisition, however, from an accounting perspective, the Catalyst employee stock option awards have been exchanged for share-based payment awards of the accounting acquirer. Accordingly, this balance represents the pre-Contributions service portion of the estimated fair value of the employee stock option awards issued to Catalyst option holders. In calculating the estimated fair value of the option awards based on the Black-Scholes model, management used the following weighted-average assumptions:

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (85,480)	$ 4,314

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Summary of Significant Accounting Policies - Schedule of Accounts and Notes Receivable, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 15,204	$ 15,738
Note receivable	389	1,522
Allowance for credit losses	(41)	(124)	$ (70)
Accounts and note receivables, net	$ 15,552	$ 17,136

Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current income tax provision:
State	$ 6	$ 1
Foreign - PRC	9,343	5,987
Total current income tax provision:	9,349	5,988
Deferred income tax provision:
Federal		(91)
Foreign - PRC	(834)	(799)
Total deferred income tax provision:	(834)	(890)
Total income tax provision:	$ 8,515	$ 5,098

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Intangible Assets - Schedule of Carrying Amounts and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible assets with finite lives:
Gross carrying amount	$ 601	$ 2,038
Accumulated amortization	(396)	(1,741)
Intangible assets, net	205	297
Patents
Intangible assets with finite lives:
Gross carrying amount		1,496
Accumulated amortization		(1,372)
Intangible assets, net		124
Technological know-how
Intangible assets with finite lives:
Gross carrying amount	430	438
Accumulated amortization	(290)	(277)
Intangible assets, net	140	161
Computer software
Intangible assets with finite lives:
Gross carrying amount	171	104
Accumulated amortization	(106)	(92)
Intangible assets, net	$ 65	$ 12

Stock Based Compensation - Summary of Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 7,281	$ 13,366
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	52	249
Selling and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	344	1,643
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	481	2,301
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 6,404	$ 9,173

Balance Sheet Components - Schedule of Deferred Government Grants (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred Government Grants [Line Items]
Current deferred government grants	$ 40	$ 22
Non-current deferred government grants	213	118
Total deferred government grants	253	140
Property And Equipment, Included In Accrued Expenses And Other Current Liabilities
Deferred Government Grants [Line Items]
Current deferred government grants	40	22
Property Plant And Equipment
Deferred Government Grants [Line Items]
Non-current deferred government grants	$ 213	$ 118

Fair Value Measurements and Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments


3.	Fair Value Measurements and Financial Instruments

For a description of the fair value hierarchy and fair value methodology, see Note 2 — Summary of Significant Accounting Policies. As of December 31, 2023, the Company’s highly liquid money market funds are included within cash equivalents.

The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 (in thousands):


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds(1)	$	5,860	$	—	$	—	$	5,860
Long-term receivable from GCBP		—		—		4,722		4,722
Total financial assets	$	5,860	$	—	$	4,722	$	10,582

Financial liabilities
CVR derivative liability	$	—	$	—	$	4,722	$	4,722
Warrant liability, noncurrent		—		—		12,835		12,835
Total financial liabilities	$	—	$	—	$	17,557	$	17,557

(1) Included in cash and cash equivalents on accompanying consolidated balance sheet.

The carrying amounts of cash, accounts and note receivables, net, other receivables, accounts payable, due to related parties, CVR excess closing cash payable, and accrued liabilities approximate their fair values due to their short maturities.

During the year ended December 31, 2023, there were no transfers of fair value measurement between Level 1 and Level 2 and no transfers into or out of Level 3 for both financial assets and liabilities.

There were no financial assets and liabilities measured at fair value as of December 31, 2022.

Long-term Receivables and CVR Derivative Liability

The long-term receivable and the corresponding CVR derivative liability, noncurrent relate to the asset purchase agreement with GCBP. The fair value of this long-term receivable and derivative liability is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. The estimated fair value of the long-term receivable and CVR derivative liability, noncurrent was determined based on the anticipated amount and timing of projected cash flows to be received from GCBP pursuant to the GCBP asset purchase agreement discounted to their present values using an estimated discount rate of 5.05%. As of December 31, 2023, the Company expects to receive a $5.0 million hold-back payment from GCBP in the first quarter of 2025, which will be distributed, net of expenses, to the CVR Holders. The change in fair value of the long-term receivable from GCBP and the

corresponding CVR derivative liability, noncurrent was recorded in interest and other income, net on the consolidated statement of operations and comprehensive income (loss).

Warrant Liability

In October 2023, Catalyst entered into a Securities Purchase Agreement for a private placement with GNI USA (the “Private Placement”). The Private Placement closed immediately following the closing of the Contributions on October 30, 2023. Upon closing of the Private Placement, the Company issued 811 shares of Convertible Preferred Stock and 811 Preferred Stock Warrants to purchase shares of Convertible Preferred Stock to GNI for an aggregate purchase price of approximately $5.0 million. The Preferred Stock Warrants are immediately exercisable at an exercise price of $4,915.00 per share of Convertible Preferred Stock and expire on October 30, 2033. The number of shares of Common Stock issuable upon exercise and conversion of the Preferred Stock Warrants is 540,666. The Company accounted for the Private Placement as a non-arm's length transaction. The Preferred Stock Warrants were initially recognized at fair value upon issuance and the remaining proceeds from the Private Placement were allocated to the Convertible Preferred Stock.

The Preferred Stock Warrants are freestanding financial instruments classified as a warrant liability on the Company’s consolidated balance sheet. The Preferred Stock Warrants are revalued each reporting period with the change in fair value recorded as change in fair value of warrant liability in other income (expense), net on the consolidated statement of operations and comprehensive income (loss).

The fair value of the warrant liability is estimated based on the Black-Scholes option pricing model using the following weighted-average assumptions:


Share price	$	25.7
Exercise price	$	4,915.00
Dividend yield	—
Risk-free interest		3.88	%
Term (years)		9.83
Expected volatility		84.00	%

The following table sets forth the changes in the estimated fair value of the Company’s Level 3 financial assets and liabilities (in thousands):


	Long-term receivable from GCBP		CVR derivative liability		Warrant liability
Balance at December 31, 2022	$	—	$	—	$	—
Additions in the period		4,683		4,683		3,574
Changes in fair value		39		39		9,261
Balance at December 31, 2023	$	4,722	$	4,722	$	12,835

Financial Instruments

Cash equivalents consisted of the following (in thousands):


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds (cash equivalents)	$	5,860	$	—	$	—	$	5,860
Total financial assets	$	5,860	$	—	$	—	$	5,860
Classified as:
Cash and cash equivalents							$	5,860
Total financial assets							$	5,860

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Revenue (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Sales by Product Categories

The Company’s sales by product categories for the years ended December 31, 2023 and 2022 are as follows (in thousands):


	Year ended December 31,
	2023		2022
Sales of Pharmaceutical Products	$	113,450	$	100,876
License of Intellectual Property		—		1,414
Total	$	113,450	$	102,290

Fair Value Measurements and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 (in thousands):


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds(1)	$	5,860	$	—	$	—	$	5,860
Long-term receivable from GCBP		—		—		4,722		4,722
Total financial assets	$	5,860	$	—	$	4,722	$	10,582

Financial liabilities
CVR derivative liability	$	—	$	—	$	4,722	$	4,722
Warrant liability, noncurrent		—		—		12,835		12,835
Total financial liabilities	$	—	$	—	$	17,557	$	17,557

(1) Included in cash and cash equivalents on accompanying consolidated balance sheet.

Summary of Assumptions to Fair Value of Warrant Liability Based on Black-Scholes Option Pricing Model

The fair value of the warrant liability is estimated based on the Black-Scholes option pricing model using the following weighted-average assumptions:


Share price	$	25.7
Exercise price	$	4,915.00
Dividend yield	—
Risk-free interest		3.88	%
Term (years)		9.83
Expected volatility		84.00	%

Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities

The following table sets forth the changes in the estimated fair value of the Company’s Level 3 financial assets and liabilities (in thousands):


	Long-term receivable from GCBP		CVR derivative liability		Warrant liability
Balance at December 31, 2022	$	—	$	—	$	—
Additions in the period		4,683		4,683		3,574
Changes in fair value		39		39		9,261
Balance at December 31, 2023	$	4,722	$	4,722	$	12,835

Cash Equivalents

Cash equivalents consisted of the following (in thousands):


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds (cash equivalents)	$	5,860	$	—	$	—	$	5,860
Total financial assets	$	5,860	$	—	$	—	$	5,860
Classified as:
Cash and cash equivalents							$	5,860
Total financial assets							$	5,860

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Detail)	Dec. 31, 2023
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	30 years
Leasehold Improvement
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Machinery and Electronic Devices \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Machinery and Electronic Devices \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Motor Vehicles \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Motor Vehicles \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Gross Carrying Amounts and Accumulated Amortization of intangible Assets

The gross carrying amounts and accumulated amortization of the Company’s intangible assets with determinable lives as of December 31, 2023 and 2022 were as follows (in thousands):


	December 31, 2023
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(290	)	$	140
Computer software		171		(106	)		65
Total intangible assets	$	601	$	(396	)	$	205


	December 31, 2022
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Patents	$	1,496	$	(1,372	)	$	124
Technological know-how		438		(277	)		161
Computer software		104		(92	)		12
Total intangible assets	$	2,038	$	(1,741	)	$	297

Schedule of Estimated Future Amortization Expense

Based on finite-lived intangible assets recorded as of December 31, 2023, the estimated future amortization expense is as follows (in thousands):


	Estimated Amortization Expense
2024	$	34
2025		34
2026		34
2027		33
2028		18
Thereafter		52
Total	$	205

Leases

12 Months Ended

Dec. 31, 2023

Lessee Disclosure [Abstract]

Leases


9.	Leases

Operating leases

BC’s corporate headquarters, a 968 square meter office space, is situated in Beijing, PRC, with the lease expiring in June 2024. Additionally, a laboratory center spanning approximately 640 square meters was leased in Shanghai, China, which expired in November 2023. In 2022, the Company secured a new lease for an office space of approximately 180 square meters in Zhengzhou, China, with the lease set to expire in August 2024. In November 2023, the Company also secured a new lease for its U.S. headquarters in San Diego, United States, with the lease set to expire in December 2026.

The Company also has multiple short-term leased properties used as offices and employee dormitories. The Company recorded a total of $89,000 and $52,000 short-term rent expenses during the years ended December 31, 2023 and 2022, respectively. The short-term rent expense amounts are recorded in operating expenses in the accompanying consolidated statements of operations and comprehensive (loss) income.

As of December 31, 2023, the Company recorded an aggregate ROU asset of $0.5 million and an aggregate lease liability of $0.4 million in the accompanying consolidated balance sheets.

Rent expense related to operating leases was $0.5 million for each of the years ended December 31, 2023 and 2022, respectively. Variable lease payments for the years ended December 31, 2023 and 2022 were immaterial.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	573	$	517

The present value assumptions used in calculating the present value of the lease payments were as follows:


	Year Ended December 31,
	2023	2022
Weighted-average remaining lease term	2.2 years	1.5 years
Weighted-average discount rate	4.78%	4.75%

As of December 31, 2023, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
2024	$	226
2025		103
2026		106
Total undiscounted lease payments		435
Less: imputed interest		(26	)
Total lease liabilities		409
Less: current portion of lease liabilities		(210	)
Lease liabilities, net of current portion	$	199

The Company is required to maintain security deposits of $0.1 million in connection with various leases, which amounts are included in other assets, noncurrent on the Company’s consolidated balance sheets.

Land use rights

As of December 31, 2023, the Company held land use rights for two land parcels in Beijing’s Shunyi District, expiring in 2053, and in Cangzhou, Hebei Province, expiring from 2067 to 2071. These parcels, with a combined area of approximately 66,559 square meters, are utilized as manufacturing facilities. As of December 31, 2023, the aggregate recorded land use rights, net assets for these parcels was $1.5 million.

Intangible Assets -Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 34
2025	34
2026	34
2027	33
2028	18
Thereafter	52
Intangible assets, net	$ 205	$ 297

Consolidated Statements of Convertible Preferred Stock and Equity - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Statutory Reserve	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Total Gyre Stockholders' Equity (Deficit)	Non-controlling Interest
Balance at Dec. 31, 2021	$ 59,465		$ 64	$ 25,315	$ 1,413	$ 6,340	$ 2,366	$ 35,498	$ 23,967
Balance (in shares) at Dec. 31, 2021			63,588,119
Appropriation of statutory reserve					1,247	(1,247)
Stock-based compensation expense	$ 13,366			7,480				7,480	5,886
Stock options exercised (in shares)	0
Foreign currency translation adjustments	$ (4,928)						(2,758)	(2,758)	(2,170)
Net (loss) income	4,314					2,302		2,302	2,012
Balance at Dec. 31, 2022	72,217		$ 64	32,795	2,660	7,395	(392)	42,522	29,695
Balance (in shares) at Dec. 31, 2022			63,588,119
Temporary Equity, Balance (in shares) at Dec. 31, 2022
Deemed issuance of common stock and Convertible Preferred Stock to former stockholders of Catalyst upon the GNI USA Contributions	21,249		$ 3	21,246				21,249
Deemed issuance of common stock and Convertible Preferred Stock to former stockholders of Catalyst upon the GNI USA Contributions (in shares)			2,531,851
Deemed issuance of common stock and Convertible Preferred Stock to former stockholders of Catalyst upon the GNI USA Contributions		$ 63,099
Deemed issuance of common stock and Convertible Preferred Stock to former stockholders of Catalyst upon the GNI USA Contributions (in shares)		12,340
Acquisition of minority interest			$ 10	7,845	438		(415)	7,878	(7,878)
Acquisition of minority interest (in shares)			10,463,627
Issuance of Preferred Stock upon Private Placement		$ 1,426
Issuance of Preferred Stock upon Private Placement (in shares)		811
Stock-based compensation expense	7,281			6,127				6,127	1,154
Stock options exercised	$ 166			166				166
Stock options exercised (in shares)	12,059		12,019
Foreign currency translation adjustments	$ (1,484)						(837)	(837)	(647)
Net (loss) income	(85,480)					(92,933)		(92,933)	7,453
Balance at Dec. 31, 2023	$ 13,949		$ 77	$ 68,179	$ 3,098	$ (85,538)	$ (1,644)	$ (15,828)	$ 29,777
Balance (in shares) at Dec. 31, 2023			76,595,616
Temporary Equity, Balance at Dec. 31, 2023		$ 64,525
Temporary Equity, Balance (in shares) at Dec. 31, 2023		13,151

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, Weighted average amortization period	5 years 18 days
Amortization of intangible assets	$ 0.1	$ 0.2

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Mainland China Contribution Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions for employee benefits	$ 4.3	$ 3.6

Organization and Nature of Operations - Additional Information (Detail) $ / shares in Units, $ in Thousands			12 Months Ended
	Oct. 30, 2023 $ / shares shares	Dec. 26, 2022 shares	Dec. 31, 2023 USD ($) Segment $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Nov. 30, 2023 shares	Nov. 22, 2023 shares	Oct. 31, 2023 shares	Oct. 27, 2023 shares	Oct. 15, 2021 $ / shares
Organization and Nature of Operations [Line Items]
Number of operating segment \| Segment			2
Common stock, shares authorized			400,000,000	400,000,000
Common stock, shares issued			76,595,616	63,588,119
Preferred stock shares authorized			5,000,000
Warrants exercise price per share \| $ / shares			$ 4,915
Preferred stock par value per share \| $ / shares			0.001
Common stock, par value \| $ / shares			$ 0.001	$ 0.001
Net Income (Loss) \| $			$ (85,480)	$ 4,314
Accumulated deficit \| $			85,538	(7,395)
Cash, cash equivalents and short-term investments \| $			$ 33,500
Minority holders owned outstanding shares of common stock			13.70%
Net cash provided by operating activities \| $			$ 25,892	$ 10,677
2021 ATM Program
Organization and Nature of Operations [Line Items]
Common stock, shares issued			0	0
Percentage of commission for shares sold									3.00%
Common stock, par value \| $ / shares									$ 0.001
Gyre
Organization and Nature of Operations [Line Items]
Percentage of outstanding shares of common stock			2.80%
Minority interest ownership directly and indirectly holds		100.00%
Gyre \| CPI
Organization and Nature of Operations [Line Items]
Minority interest ownership indirectly holds		56.00%
Gyre \| BC
Organization and Nature of Operations [Line Items]
Minority interest ownership indirectly holds		65.20%
Business Combination Agreement
Organization and Nature of Operations [Line Items]
Reverse stock split ratio	1-for-15 reverse stock split	reverse stock split
Common stock, par value \| $ / shares	$ 0.001
Business Combination Agreement \| Gyre
Organization and Nature of Operations [Line Items]
Common stock, shares issued		10,463,627
Minority interest		100.00%
Business Combination Agreement \| Maximum
Organization and Nature of Operations [Line Items]
Common stock, shares authorized	400,000,000
Business Combination Agreement \| Minimum
Organization and Nature of Operations [Line Items]
Common stock, shares authorized	100,000,000
Convertible Preferred Stock
Organization and Nature of Operations [Line Items]
Preferred stock shares authorized			125,040
Preferred stock shares issued			13,151	12,340			811	811
Preferred stock, shares issued upon conversion of common stock			666.67		13,151	13,151
GNI USA
Organization and Nature of Operations [Line Items]
Percentage of outstanding shares of common stock			83.60%
CPI Contribution \| Business Combination Agreement \| Gyre
Organization and Nature of Operations [Line Items]
Common stock, shares issued		45,923,340
FC Contribution \| Business Combination Agreement \| Gyre
Organization and Nature of Operations [Line Items]
Common stock, shares issued		17,664,779
Common Stock
Organization and Nature of Operations [Line Items]
Common stock, par value \| $ / shares			$ 0.001
Assets acquisition, shares issued			2,531,851

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Accounts and Note Receivable, Net

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


	December 31,
	2023			2022
Accounts receivable	$	15,204			$	15,738
Note receivable		389				1,522
Allowance for credit losses		(41	)			(124	)
Accounts and note receivables, net	$	15,552			$	17,136

Schedule of Changes in Allowance for Credit Losses

Changes in the allowance for credit losses as of December 31, 2023 and 2022 consisted of the following (in thousands):


	2023			2022
Balance, beginning of year	$	(124	)		$	(70	)
Provision for allowance for credit losses		—				(88	)
Recoveries collected and write-off		82				26
Foreign currency translation adjustments		1				8
Balance, end of year	$	(41	)		$	(124	)

Schedule of Estimated Useful Lives of Assets

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Buildings	20 to 30 years
Leasehold improvement	Shorter of the estimated useful life or the term of the lease
Machinery and electronic devices	3 to 10 years
Furniture and fixtures	3 to 5 years
Motor vehicles	3 to 5 years

Financial Statements Schedule I Financial Information of Parent Company

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Financial Statements Schedule I Financial Information of Parent Company

Gyre Therapeutics, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except shares and per share amounts)


	December 31, 2023			December 31, 2022
Assets
Current assets:
Related party receivables	$	768		$	3,159
Total current assets		768			3,159
Investment in subsidiaries		49,709			40,632
Total assets	$	50,477		$	43,791
Liabilities, convertible preferred stock, and stockholders’ equity
Current liabilities:
Due to related parties	$	538		$	5
Accrued expenses and other current liabilities		1,242			1,264
Total current liabilities:		1,780			1,269
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 13,151 shares and nil shares issued and outstanding at December 31, 2023 and 2022, respectively		64,525			—
Stockholders’ (deficit) equity:
Common stock, $0.001 par value, 400,000,000 shares authorized; 76,595,616 shares and 63,588,119 shares issued and outstanding at December 31, 2023 and 2022, respectively		77			64
Additional paid-in capital		68,179			32,795
Statutory reserve		3,098			2,660
(Accumulated deficit) retained earnings		(85,538	)		7,395
Accumulated other comprehensive loss		(1,644	)		(392	)
Total stockholders’ (deficit) equity		(15,828	)		42,522
Total liabilities, convertible preferred stock, and stockholders’ (deficit) equity	$	50,477		$	43,791

The accompanying notes are an integral part of these condensed consolidated financial statements

Gyre Therapeutics, Inc.

Condensed Consolidated Statements of Operations

(In thousands)


	Year Ended December 31,
	2023			2022
Operating expenses:
General and administrative	$	605		$	94
Divestiture losses		2,711			—
Loss before equity in (loss) income of subsidiaries		3,316			94
Equity in (loss) income of subsidiaries		(89,617	)		2,396
Net (loss) income	$	(92,933	)	$	2,302
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments		(837	)		(2,758	)
Comprehensive loss	$	(93,770	)	$	(456	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Gyre Therapeutics, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)


	Year Ended December 31,
	2023			2022
Operating Activities
Net (loss) income	$	(92,933	)	$	2,302
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Equity loss (income) of subsidiaries		89,617			(2,396	)
Divestiture losses		2,711			—
Changes in operating assets and liabilities:
Due to related parties		533			5
Net cash provided by operating activities		(72	)		(89	)
Effect of exchange rate changes on cash and cash equivalents		72			89
Net change in cash and cash equivalents		—			—
Cash and cash equivalents at beginning of the period		—			—
Cash and cash equivalents at end of period	$	—		$	—

The accompanying notes are an integral part of these condensed consolidated financial statements

Notes

Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. CPI, the legal acquiree and accounting acquirer of the Contributions considered the “registrant” and presented as the parent company, Gyre Therapeutics, Inc. (“Gyre”) to supplement its condensed financial statement in Schedule I. The parent company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method, and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries”. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted.

As of December 31, 2023 and 2022, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the parent company.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 12, 2023, Nassim Usman, Ph.D., a director of the Company, entered into a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K). Dr. Usman’s plan provides for the potential exercise of vested stock options and the associated sale of up to 240,000 shares of common stock. The trading arrangement terminates upon the sale of all shares pursuant to the trading arrangement. During the three months ended December 31, 2023, no other director or officer (as defined in Rule 16a-1(f) promulgated under the Exchange Act) of the Company adopted or terminated any “Rule 10b5-1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Nassim Usman, Ph.D
Trading Arrangements, by Individual
Name	Nassim Usman, Ph.D
Title	director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 12, 2023
Aggregate Available	240,000
Other Director or Officer
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Revenue - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Percentage of revenue accounted sales to distributors		100.00%
Revenue from sales	$ 113,450	$ 102,290
ETUARY
Disaggregation of Revenue [Line Items]
Revenue from sales	$ 113,450	$ 100,876
ETUARY \| Sales \| ETUARY
Disaggregation of Revenue [Line Items]
Concentration risk percentage	98.90%	96.90%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Noncontrolling Interest

Segments

Risks and Uncertainities

Risks and Uncertainties

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, accounts and note receivable, and long-term certificates of deposits.

As of December 31, 2023 and 2022, the Company had cash of $33.5 million and $25.2 million, respectively, and long-term certificates of deposit of $23.4 million and $7.4 million, respectively.

Concentration of Customer Risk

Cash and Cash Equivalents

Fair Value Measurements

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Derivative Financial Instruments

Preferred Stock Warrants

Convertible Preferred Stock

Long-term Certificates of Deposit

Long-Term Receivable

Accounts and Note Receivables, Net

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


	December 31,
	2023			2022
Accounts receivable	$	15,204			$	15,738
Note receivable		389				1,522
Allowance for credit losses		(41	)			(124	)
Accounts and note receivables, net	$	15,552			$	17,136

Changes in the allowance for credit losses as of December 31, 2023 and 2022 consisted of the following (in thousands):


	2023			2022
Balance, beginning of year	$	(124	)		$	(70	)
Provision for allowance for credit losses		—				(88	)
Recoveries collected and write-off		82				26
Foreign currency translation adjustments		1				8
Balance, end of year	$	(41	)		$	(124	)

Inventories, Net

Property and Equipment

Property and Equipment, Net

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Buildings	20 to 30 years
Leasehold improvement	Shorter of the estimated useful life or the term of the lease
Machinery and electronic devices	3 to 10 years
Furniture and fixtures	3 to 5 years
Motor vehicles	3 to 5 years

Where parts of an item of property and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately.

Property and equipment is reviewed for impairment when events or circumstances exist which suggest that the carrying amount of the asset group may not be recoverable.

Intangible Assets, Net

Patents and Technological Know-How

Computer Software

Purchased computer software is stated at cost less any impairment losses and is amortized on the straight-line basis over its estimated useful life of two to three years.

Leases

Land Use Rights, Net

Impairment of Long-Lived Assets

Income Tax Expense

Interest and penalties related to unrecognized tax benefits, if any, are recorded as a component of income tax expense.

Revenue Recognition

(a) Sale of Pharmaceutical Products

(b) License of Intellectual Property

The Company did not recognize any contract assets as of December 31, 2023 and 2022.

Deferred Revenue

Cost of Revenue

Stock-Based Compensation

life of the options, expected term of the stock option, risk-free interest rates and expected dividends. The Company elected to account for forfeitures when they occur.

Acquired IPR&D

Research and Development Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Government Grants

Interest Income

Comprehensive Income (Loss)

Net Income (Loss) Per Share ("EPS") Attributable to Common Stockholders

Net Income (Loss) Per Share (“EPS”) Attributable to Common Stockholders

Foreign Currency Translation and Remeasurement

operations and comprehensive (loss) income. The foreign currency transaction gains or losses for the years ended December 31, 2023 and 2022 were immaterial.

Foreign Currency Risk

Accounting Pronouncements Recently Adopted

New Accounting Pronouncements - Issued But Not Yet Adopted

New Accounting Pronouncements – Issued But Not Yet Adopted

EPS - Anti-dilutive Security not Included In Diluted per Share Calculations (Detail)	12 Months Ended
	Dec. 31, 2023 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	27,588,546
Options To Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	18,280,548
Convertible Preferred stock (as converted)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	8,767,332
Preferred Stock Warrants (as converted)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	540,666

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


13.	Commitments and Contingencies

Contingent Value Rights Agreement

Each CVR under the CVR Agreement (see Note 1 — Organization and Nature of Operations) entitles the holder to receive (i) certain cash payments from the net proceeds related to the disposition of Catalyst’s legacy assets, (ii) 100% of the excess cash (net of all current or contingent liabilities, including transaction-related expenses) retained by the Company in excess of $1.0 million as of the closing date of the transactions under the Business Combination Agreement, (iii) 100% of the amount actually received by the Company, net of expenses, pursuant to an asset purchase agreement Catalyst entered into with Vertex Pharmaceuticals Inc. (“Vertex”) in May 2022 and (iv) 100% of the excess amount, by which the preapproved costs to manage, negotiate, settle and finalize certain third party claims exceed the costs actually incurred with respect to such claims. The CVRs are not transferable, except in certain limited circumstances as provided for in the CVR Agreement, will not be certificated or evidenced by any instrument, and will not be registered with the SEC or listed for trading on any exchange.

In August, 2023, Catalyst fully settled the CVR payments related to the Vertex asset purchase agreement.

In February 2023, Catalyst sold its legacy rare bleeding disorder program to GCBP. As a result, the Company distributed the net cash proceeds received from the GCBP asset sale of $0.2 million to the CVR Holders as well as recorded a $4.5 million long-term CVR derivative liability for the future distribution of the hold-back amount to be received in May 2025. As of December 31, 2023, the carrying value of the CVR derivative liability was $4.7 million on the consolidated balance sheet. Refer to Note 3 — Fair Value Measurements and Financial Instruments for additional information regarding the CVR derivative liability and GCBP asset sale.

On October 30, 2023, pursuant to the CVR Agreement, the Company recorded a $1.1 million CVR excess closing cash payable upon closing of the Contributions, which is anticipated to be distributed among the CVR Holders and remained outstanding as of December 31, 2023.

Litigation and Legal Matters

The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements.

In April 2023, separate stockholders of Catalyst filed lawsuits in the Delaware Chancery Court, captioned Bushansky v. Catalyst Biosciences, Inc., et al and Scott v. Catalyst Biosciences, Inc., et al., alleging Catalyst violated its fiduciary duties under Delaware Law by failing to disclose purportedly material information regarding the proposed Business Combination Agreement. In February 2024, both lawsuits were dismissed with prejudice and the Company reimbursed the stockholders for their legal and other expenses related to the litigation in the aggregate amount of $0.4 million.

The Company recorded a litigation settlement liability in the amount of $0.4 million in October 2023 when it became probable and estimable, which was included in accrued expenses and other current liabilities on the consolidated balance sheet.

Purchasing Commitments

Property and Equipment

The Company’s commitments related to purchase of property and equipment contracted but not yet reflected in the consolidated financial statements were $2.8 million as of December 31, 2023 and were expected to be incurred within one year.

F351

In September 2020, BC entered into an intellectual property (“IP”) transfer agreement (the “F351 Transfer Agreement”) with GNI Japan and certain of its wholly owned subsidiaries (the “GNI Group”). According to the F351 Transfer Agreement, BC acquired the exclusive right to use Hydronidone IP rights in mainland China and the right of first offer for the global IP rights (the “F351 IP Rights”).

Under the F351 Transfer Agreement, in exchange for the F351 IP Rights, BC is obligated to pay GNI Group $4.8 million upon submission of the F351 New Drug Application (the “NDA”) to Center for Drug Evaluation of the National Medical Products Administration (the “NMPA”) of the PRC, $1.2 million after the NDA passes the NMPA’s Center for Food and Drug Review and Inspection’s on-site registration inspection for the F351 product, and $7.2 million upon NMPA’s approval of the NDA.

Research and Development Programs

In addition to the F351 program, as of December 31, 2023, the Company has committed to allocate $12.7 million toward future research and development activities for various programs.

Indemnifications

In the normal course of business, the Company enters into agreements that indemnify others for certain liabilities that may arise in connection with a transaction or certain events and activities. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, the Company may be required to reimburse the loss. These indemnifications are generally subject to various restrictions and limitations. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations.

Stock Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation


12.	Stock Based Compensation

BC 2021 Stock Incentive Plan

In February 2021, the board of directors of BC approved the 2021 Plan to grant options to certain employees and consultants of BC.

The 2021 Plan had a contractual term of seven years. Options granted under the 2021 Plan were accounted for as equity awards and subject to a service condition. Upon the Contributions, BC terminated the 2021 Plan and the BC Options under the 2021 Plan were terminated and replaced with options to purchase Gyre Common Stock granted under the 2023 Omnibus Incentive Plan that are substantially similar in all material respects to the BC Options previously outstanding under the 2021 Plan.

In October 2023, prior to the Contributions, the Board of Directors of BC modified the expiration term of the fully vested BC Options to be extended to February 3, 2028. Following this modification, the total incremental stock-based compensation of $2.0 million was immediately recognized.

2018 Omnibus Incentive Plan

In June 2018, stockholders of Catalyst approved a 2018 Omnibus Incentive Plan, as amended in June 2021 (the “2018 Omnibus Incentive Plan”). Each option to purchase shares of Catalyst common stock that was issued and outstanding under the 2018 Omnibus Incentive Plan immediately prior to the Effective Time remains outstanding and unaffected after the Contributions in accordance with its terms.

2023 Omnibus Incentive Plan

The 2023 Omnibus Incentive Plan was approved by Catalyst’s stockholders in August 2023 and ratified by Gyre’s Board in October 2023. The 2023 Omnibus Incentive Plan became effective on October 30, 2023. The 2023 Omnibus Incentive Plan permits the Company to deliver up to 17,845,496 shares of Common Stock and will automatically increase by the lesser of (i) 5% of the total number of outstanding shares of Common Stock on December 31st of the preceding calendar year and (ii) such smaller number of shares of Common Stock as determined by the Board on the first day of each fiscal year beginning on January 1, 2024.

After the Contributions, the Company modified the expiration term of the fully vested options originally granted as the BC options to be extended to October 30, 2030. As a result of this modification, the total incremental stock-based compensation of $0.8 million was immediately recognized.

On October 30, 2023, upon closing of the Contributions, the Gyre Board approved grants to five individuals, to be made on October 31, 2023, of an aggregate of 820,824 fully vested stock options in consideration for services rendered in connection with the Contributions transactions. Although the awards were granted for the services in connection with the Contributions, which were direct and incremental costs incurred to complete the reverse asset acquisition, they were issued to Gyre’s employees and consultants who worked on the Contributions instead of third-parties and therefore, do not qualify as transactions costs of the reverse asset acquisition.

The following table summarizes stock option activity considering the conversion of BC Options to Gyre options to purchase shares of Gyre Common Stock upon completion of the GNI USA Contributions:


	Number of Shares Underlying Outstanding Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (Thousands)
Outstanding at December 31, 2022		17,036,941		$	0.75		5.1	$	12,667
Forfeited		(18,936	)	$	0.75
Deemed issuance of options to former stockholders of Catalyst upon the GNI USA Contributions		435,916		$	20.10
Granted		838,686		$	6.93
Exercised		(12,059	)	$	13.86
Outstanding at December 31, 2023		18,280,548		$	1.49		6.9	$	444,197
Exercisable at December 31, 2023		18,262,686		$	1.48		6.9	$	19,433

The weighted-average grant date fair value of options granted during the year ended December 31, 2023 was $5.45 per share. No options were granted during the year ended December 31, 2022.

The aggregate intrinsic value of options exercised during the year ended December 31, 2023 was $0.1 million. No options were exercised during the year ended December 31, 2022.

Valuation Assumptions

The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Due to its limited relevant historical data, the Company estimated its volatility considering a number of factors, including the use of the volatility of comparable public companies. The expected term of options granted under the 2023 Omnibus Incentive Plan, all of which qualify as “plain vanilla” per SEC Staff Accounting Bulletin 107, is determined based on the simplified method due to the Company’s limited relevant history. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period.

The fair value of employee stock options granted was estimated using the following weighted-average assumptions:


	Year Ended December 31,
	2023
Expected volatility (%)	84.30-84.30
Risk-free interest rate (%)	3.82-4.77
Expected option life (in years)	5.0-5.8
Expected dividend yield (%)		—
Weighted average share price of the Company (USD per share)	$	6.93

Total stock-based compensation recognized was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Cost of revenues	$	52	$	249
Selling and marketing		344		1,643
Research and development		481		2,301
General and administrative		6,404		9,173
Total	$	7,281	$	13,366

As of December 31, 2023, the Company had an unrecognized stock-based compensation expense of $0.1 million, related to unvested stock option awards, which is expected to be recognized over an estimated weighted-average period of 1.87 years.

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2023 Segment
Segment Reporting [Abstract]
Number of operating segment	2

Stockholders' Equity - Additional Information (Detail) - USD ($)		12 Months Ended
	Oct. 15, 2021	Dec. 31, 2023	Dec. 31, 2022
Stockholders Equity Disclosure [Line Items]
Common stock, shares authorized		400,000,000	400,000,000
Common stock, par value		$ 0.001	$ 0.001
Common stock, voting rights		one vote
Common stock, shares sold		76,595,616	63,588,119
Catalyst common stock outstanding		76,595,616	63,588,119
Warrants exercise price per share		$ 4,915
Proceeeds from issuance of aggregate gross sales		$ 2,500,000
Aggregate amounts of restricted capital and statutory reserves		$ 64,300,000	$ 61,500,000
Statutory reserve fund		10.00%
Cumulative amount of statutory reserve fund		50.00%
Appropriations to statutory reserve		$ 0	$ 2,200,000
Preferred stock shares authorized		5,000,000
Preferred stock par value per share		$ 0.001
2021 ATM Program
Stockholders Equity Disclosure [Line Items]
Common stock, par value	$ 0.001
Common stock, shares sold		0	0
Proceeeds from issuance of aggregate gross sales	$ 50,000,000
Percentage of commission for shares sold	3.00%
Legal expenses incurred	$ 50,000

Leases - Summary of Present Value Assumptions used in Calculating Present Value of Lease Payments (Detail)	Dec. 31, 2023	Dec. 31, 2022
Lessee Disclosure [Abstract]
Weighted-average remaining lease term	2 years 2 months 12 days	1 year 6 months
Weighted-average discount rate	4.78%	4.75%

Stock Based Compensation - Fair Values of Stock Options Granted Estimated Using Black-Scholes Valuation Model (Detail)	12 Months Ended
	Dec. 31, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (in years)	5 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	84.30%
Expected volatility, maximum	84.30%
Risk-free interest rate, minimum	3.82%
Risk-free interest rate, maximum	4.77%
Weighted average share price of the Company (USD per share)	$ 6.93
Employee Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (in years)	5 years
Employee Stock Option \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (in years)	5 years 9 months 18 days

Leases - Additional Information (Detail)	1 Months Ended	12 Months Ended
Leases - Additional Information (Detail)	Nov. 30, 2023 m²	Dec. 31, 2023 USD ($) m²	Dec. 31, 2022 USD ($) m²
Lessee Lease Description [Line Items]
Right-of-use asset and lease liability		$ 277,000	$ 57,000
Undiscounted future payment		$ 435,000
Lease expiration month and year	2026-12	2024-06	2024-08
Square meter area for office space under lease \| m²		968
Square meter area for laboratory center under lease \| m²	640
Square Meter Area For Office Space Under New Lease \| m²			180
Short-term lease expenses		$ 89,000	$ 52,000
Right-of-use assets		489,000	666,000
Operating lease, liability		409,000
Security deposits		$ 100,000
Combined square meter area for manufacturing facilities under lease \| m²		66,559
Land use rights, net assets		$ 1,500,000
Operating lease expense		$ 500,000	$ 500,000

Financial Statements Schedule I Financial Information of Parent Company - Condensed Statements of Financial Position (Parentheticals) (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	76,595,616	63,588,119
Common stock, shares outstanding	76,595,616	63,588,119
Parent Company
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	76,595,616	63,588,119
Common stock, shares outstanding	76,595,616	63,588,119
Convertible Preferred Stock
Condensed Financial Statements, Captions [Line Items]
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	5,000,000	5,000,000
Temporary equity, shares issued	13,151
Temporary equity, shares outstanding	13,151
Convertible Preferred Stock \| Parent Company
Condensed Financial Statements, Captions [Line Items]
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	5,000,000	5,000,000
Temporary equity, shares issued	13,151
Temporary equity, shares outstanding	13,151

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Mar. 19, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	GYRE
Entity Registrant Name	Gyre Therapeutics, Inc.
Entity Central Index Key	0001124105
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		85,423,246
Entity Public Float			$ 11.1
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity File Number	000-51173
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	56-2020050
Entity Address, Address Line One	12770 High Bluff Drive
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	619
Local Phone Number	949-3681
Document Annual Report	true
Document Transition Report	false
Auditor Firm ID	1487
Auditor Name	Grant Thornton Zhitong Certified Public Accountants LLP
Auditor Location	Beijing, China
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this Report, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders to be held in 2024 (the “Proxy Statement”), which shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The components of the Company’s provision for income taxes for the years ended December 31, 2023 and 2022 consist of the following (in thousands):


	Year Ended December 31,
	2023			2022
Current income tax provision:
Federal	$	—		$	—
State		6			1
Foreign - PRC		9,343			5,987
Total current income tax provision	$	9,349		$	5,988

Deferred income tax provision:
Federal	$	—		$	(91	)
State		—			—
Foreign - PRC		(834	)		(799	)
Total deferred income tax provision	$	(834	)	$	(890	)
Total income tax provision	$	8,515		$	5,098

Reconciliation of Federal Statutory Income Tax Rate to Company's Effective Tax Rate

The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2023 and 2022 are as follows:


	Year Ended December 31,
	2023	2022
Tax computed at federal statutory rate	21.00%	21.00%
Rate difference due to different jurisdiction	-2.43%	4.31%
Preferential income tax rate for HNTE	3.19%	-10.37%
Non-deductible expense – Operating	-6.28%	33.06%
Non-deductible expense – One-time expense related to the Contributions	-22.16%	0.00%
R&D Super-deduction	1.45%	-12.42%
Valuation allowance change	-4.37%	0.00%
ESOP	-0.55%	21.81%
Other	-0.76%	-2.52%
Effective tax rate	-10.91%	54.87%

Significant Components of the Company's Deferred Tax Assets

Significant components of the Company’s deferred tax assets as of December 31, 2023 and 2022 consist of the following (in thousands):


	Year Ended December 31,
	2023			2022
Deferred tax assets:
Accruals and reserves	$	2,811		$	183
Deferred revenue		39			—
Net operating loss carry forwards		40,669			—
Other equity investments		—			150
Tax credit carry forwards		4,463			—
Fixed and intangible assets		15,332			3,428
Impact from foreign corporations		4,590			—
Capitalized transaction costs		658			414
Lease liabilities		98			—
Deferred income tax assets before valuation allowance		68,660			4,175
Deferred tax liability – ROU assets		(108	)		—
Deferred tax liability – Fixed assets		(84	)		(94	)
Less: valuation allowance		(63,773	)		—
Deferred tax assets, net	$	4,695		$	4,081

Movement of Valuation Allowance

The movements of the valuation allowance are as follows (in thousands):


	2023			2022
Balance at the beginning of the year	$	—		$	—
Changes of valuation allowances		(63,773	)		—
Balance at the end of the year	$	(63,773	)	$	—

Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of the unrecognized tax benefits is as follows (in thousands):


Beginning Balance on January 1, 2022	$	—
Increase/(Decrease) of unrecognized tax benefits taken in prior years		—
Increase/(Decrease) of unrecognized tax benefits related to current year		—
Ending Balance on December 31, 2022		—
Increase as a result of the GNI USA Contributions on October 30, 2023		1,833
Increase/(Decrease) of unrecognized tax benefits taken in prior years		—
Increase/(Decrease) of unrecognized tax benefits related to current year		—
Ending Balance on December 31, 2023	$	1,833

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	76,595,616	63,588,119
Common stock, shares outstanding	76,595,616	63,588,119
Convertible Preferred Stock
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	5,000,000	5,000,000
Temporary equity, shares issued	13,151
Temporary equity, shares outstanding	13,151

Summary of Significant Accounting Policies - Additional Information (Detail)	1 Months Ended	12 Months Ended
	May 31, 2015 CNY (¥)	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segment \| Segment		2
Number of reportable segment \| Segment		2
Allowance for credit losses certificates of deposit		$ 0	$ 0
Cash		33,500,000	25,200,000
Long-term certificates of deposit		23,431,000	7,394,000
Impairment of long-lived assets		0	0
Deferred revenue		39,000	145,000
Foreign currency translation loss		1,484,000	4,928,000
Cash		26,500,000
Contract assets		$ 0	$ 0
Customer Concentration Risk \| Sinopharm Group Co., Ltd. \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		50.10%	47.70%
Customer Concentration Risk \| Sinopharm Group Co., Ltd. \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		50.50%	45.10%
Customer Concentration Risk \| China Resources Pharmaceutical Group Ltd \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		13.70%	10.80%
Customer Concentration Risk \| Shanghai Pharmaceuticals Holding Co., Ltd \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		11.20%	11.60%
Maximum
Summary Of Significant Accounting Policies [Line Items]
Deposits in licensed banks protected by DIS \| ¥	¥ 500,000
Patents and Technological Know How [Member] \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of finite lived intangible assets		10 years
Patents and Technological Know How [Member] \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of finite lived intangible assets		20 years
Computer Software \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of finite lived intangible assets		2 years
Computer Software \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of finite lived intangible assets		3 years
ASU 2021-04
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Jan. 01, 2022
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, immaterial effect		true
ASU 2020-06
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Jan. 01, 2022
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, immaterial effect		true
ASU 2021-08
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Jan. 01, 2023
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, immaterial effect		true
ASU 2021-10
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Jan. 01, 2022
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, immaterial effect		true

Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenues	$ 113,450	$ 102,290
Operating expenses:
Cost of revenues	4,636	4,793
Selling and marketing	61,159	54,238
Research and development	13,780	16,686
General and administrative	14,662	17,370
Acquired in-process research and development	83,104
Divestiture losses	2,711
Loss on disposal of property and equipment	628	4
Total operating expenses	180,680	93,087
Income (Loss) from operations	(67,230)	9,203
Other income (expense), net:
Interest income, net	1,044	726
Other Income	1,076	857
Change in fair value of warrant liability	(9,261)
Other expenses	(2,594)	(1,374)
Income (loss) before income taxes	(76,965)	9,412
Provision for income taxes	(8,515)	(5,098)
Net (loss) income from operations	(85,480)	4,314
Net income attributable to noncontrolling interest	7,453	2,012
Net (loss) income attributable to common stockholders	$ (92,933)	$ 2,302
Net (loss) income per share attributable to common stockholders, basic	$ (1.41)	$ 0.04
Net (loss) income per share attributable to common stockholders, diluted	$ (1.41)	$ 0.03
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, basic	65,831,675	63,588,119
Weighted average shares used in calculating net (loss) income per share attributable to common stockholders, diluted	65,831,675	75,686,406
Other comprehensive (loss) income:
Net (loss) income from operations	$ (85,480)	$ 4,314
Foreign currency translation adjustments	(1,484)	(4,928)
Comprehensive loss from operations	(86,964)	(614)
Net income attributable to noncontrolling interest	7,453	2,012
Foreign currency translation adjustments attributable to noncontrolling interest	(647)	(2,170)
Comprehensive income (loss) attributable to noncontrolling interest	6,806	(158)
Comprehensive (loss) attributable to common stockholders	$ (93,770)	$ (456)

Stockholders' Equity - Schedule of Common Stock, Reserved for Future Issuance (Detail) - shares	Dec. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Total common stock reserved	27,588,546	17,036,941
Convertible Preferred Stock Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved	8,767,332
Preferred Stock Warrants Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved	540,666
Options Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved	18,280,548	17,036,941

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-URI https://asc.fasb.org//1943274/2147483014/272-10-45-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Additional Information (Detail) - USD ($)		12 Months Ended
	Jun. 29, 2020	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2007
Income Tax [Line Items]
Gross federal R&D credit-related deferred tax assets derecognized		$ 6,000,000.0
Unrecognized tax benefit		1,833,000	$ 0	$ 0
Tax-related penalties or interest recognized		0	0
Uncertain tax positions		0	$ 0
Deferred tax liabilities		2,500,000
CALIFORNIA
Income Tax [Line Items]
Net operating loss carryforwards		75,200,000
Net operating loss carryforward, derecognized		0
Maximum amount of tax offset per year	$ 5,000,000
Required Minimum Taxable Income	$ 1,000,000
Federal Income Tax
Income Tax [Line Items]
Net operating loss carryforwards		$ 193,500,000			$ 156,500,000
Net operating loss carryforwards expiration year		2037
Net operating loss carryforwards having indefinite life		$ 191,900,000
Tax credit carryforwards available to offset future federal tax liabilities		$ 8,000
Credit carryforward, expire year		2042
Net operating loss carryforward, derecognized		$ 32,900,000
State Income Tax
Income Tax [Line Items]
Net operating loss carryforwards		$ 10,500,000
Net operating loss carryforwards expiration year		2034
Tax credit carryforwards available to offset future federal tax liabilities		$ 7,500,000

Fair Value Measurements and Financial Instruments - Summary of Assumptions to Fair Value of Warrant Liability Based on Black-Scholes Option Pricing Model (Detail)	12 Months Ended
	Dec. 31, 2023 $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free interest rate	3.65%
Expected term (in years)	5 years
Expected volatility	84.30%
Term (years)	9 years 9 months 29 days
Warrants exercise price per share	$ 4,915
Share Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	25.7
Risk-Free Interest
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	3.88
Expected Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	84

Leases - Schedule of Maturity of Operating Lease Liabilities - (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024	$ 226
2025	103
2026	106
Total undiscounted lease payments	435
Less: imputed interest	(26)
Total lease liabilities	409
Less current portion of lease liabilities	(210)	$ (492)
Lease liabilities, net of current portion	$ 199	$ 121

Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components


4.	Balance Sheet Components

Inventories, net

Inventories, net of reserves of $46,000 and $9,000 as of December 31, 2023 and 2022, respectively, consisted of the following components (in thousands):


	December 31,
	2023		2022
Raw materials	$	919	$	1,056
Work in progress		1,997		3,667
Finished goods		1,365		1,399
Inventories, net	$	4,281	$	6,122

The provision for inventory and write-downs for the years ended December 31, 2023 and 2022 were immaterial.

Accrued expenses and other current liabilities

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


	December 31,
	2023		2022
Accrued payroll and welfare	$	5,790	$	5,038
Supplier reimbursement		2,247		2,474
Accrued expenses - general and administrative		1,190		—
Accrued sales discount		903		748
Accrued professional services		837		—
Employee reimbursement		648		646
Accrued expenses - research and development		161		158
Accrued expenses - selling expenses		44		13
Deferred government grants		40		22
Other accrued liabilities		75		165
Accrued expenses and other current liabilities	$	11,935	$	9,264

Deferred government grants

Deferred government grants represent funds provided by the government for research and development, construction of new facilities, or improvement of existing production facilities. The amount of deferred government grants as of December 31, 2023 and 2022, is net of the amount recognized as government grant income. During the years ended December 31, 2023 and 2022, the Company received $1.1 million and $0.8 million government grants, respectively. During the years ended December 31, 2023 and 2022, the Company recognized $1.0 million and $0.9 million of government grant income within other income in the consolidated statements of operations and comprehensive (loss) income, respectively.

Summarized below are deferred government grants as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Government grants for property and equipment, included in accrued expenses and other current liabilities	$	40	$	22
Current deferred government grants		40		22
Government grants for property and equipment		213		118
Non-current deferred government grants		213		118
Total deferred government grants	$	253	$	140

Property and equipment, net

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


	December 31,
	2023			2022
Buildings	$	12,289		$	10,837
Construction in progress		7,875			4,851
Machinery and electronic devices		6,598			4,880
Furniture and fixtures		606			631
Leasehold improvement		—			334
Motor vehicles		185			174
Property and equipment, gross		27,553			21,707
Less: Accumulated depreciation		(4,265	)		(3,998	)
Property and equipment, net	$	23,288		$	17,709

Depreciation expense was $1.0 million and $0.9 million for each of the years ended December 31, 2023 and 2022, respectively.

Financial Statements Schedule I Financial Information of Parent Company - Additional Information (Details)	Dec. 31, 2023
Parent Company
Condensed Financial Statements, Captions [Line Items]
Percentage of restricted net assets of consolidated subsidiaries of consolidated net assets	25.00%

Fair Value Measurements and Financial Instruments - Cash Equivalents (Detail) $ in Thousands	Dec. 31, 2023 USD ($)
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 5,860
Estimated Fair Value	5,860
Money Market Funds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	5,860
Estimated Fair Value	5,860
Cash and Cash Equivalents
Schedule Of Available For Sale Securities [Line Items]
Estimated Fair Value	$ 5,860

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

GNI USA Contributions under the Business Combination Agreement - Schedule Of Acquired Assets And Assumed Liabilities Of Based On Estimated Fair Values (Details) - GNI USA Contributions $ in Thousands	Oct. 30, 2023 USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 5,587
Other receivables from GNI	423
Prepaid assets	1,097
Other current assets	41
Long-term receivable from GCBP	4,683
Other assets, noncurrent	168
IPR&D	83,104
Accounts payable	(44)
Advance payment received from GNI	(2,500)
Accrued expenses and other current liabilities	(1,784)
CVR excess closing cash payable	(1,085)
CVR derivative liability, noncurrent	(4,683)
Net assets acquired	$ 85,007

Income Taxes - Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Beginning Balance	$ 0	$ 0
Increase as a result of the GNI USA Contributions on October 30, 2023	1,833
Increase/(Decrease) of unrecognized tax benefits taken in prior years	0	0
Increase/(Decrease) of unrecognized tax benefits related to current year	0	0
Ending Balance	$ 1,833	$ 0

Restructuring

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring


8.	Restructuring

Prior to the Contributions, CPI entered into a CP U.S. Share Purchase Agreement with GNI USA and divested almost all of its assets other than its 56.0% indirect ownership interest in BC. GNI USA is the parent company of Gyre. In connection with the transaction, the Company recorded a receivable in the amount of $0.8 million included in other receivables from GNI on the consolidated balance sheet as of December 31, 2023 and recognized a loss of $2.7 million during the year ended December 31, 2023, included in divestiture losses of the consolidated statements of operations and comprehensive (loss) income.

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,553	$ 21,707
Less: Accumulated depreciation	(4,265)	(3,998)
Property and equipment, net	23,288	17,709
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,289	10,837
Construction In Progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,875	4,851
Machinery and Electronic Devices
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,598	4,880
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	606	631
Leasehold Improvement
Property, Plant and Equipment [Line Items]
Property and equipment, gross	0	334
Motor Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 185	$ 174

Revenue - Summary of Sales by Product Categories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total	$ 113,450	$ 102,290
Sales of Pharmaceutical Products
Disaggregation of Revenue [Line Items]
Total	$ 113,450	100,876
License of Intellectual Property
Disaggregation of Revenue [Line Items]
Total		$ 1,414

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information


18.	Segment Information

The Company is a consolidated entity comprised of two distinct operating segments: BC and Gyre after the Contributions. The Company’s reportable segments are based upon internal organizational structure, the manner in which operations are managed, the criteria used by CODM to evaluate segment performance the availability of separate financial information, and overall materiality considerations. All Gyre’s operations are within the U.S., while all of BC’s operations are in mainland China.

BC has one major commercial drug product, ETUARY, and several product candidates in pre-clinical and clinical development. BC’s product revenues are mainly generated from the sale of ETUARY and certain generic drugs. BC primarily sells its pharmaceutical products to distributors in the PRC, who ultimately sell the products to hospitals, other medical institutions and pharmacies. BC also generates revenue from license agreements. However, the license agreements did not generate any revenue for the year ended December 31, 2023 and an immaterial amount for the year ended December 31, 2022.

Gyre

Gyre is a biopharmaceutical company focused on the development and commercialization of F351 for the treatment of NASH-associated liver fibrosis in the United States. Other than the IP associated with F351 in the U.S., Gyre has no other product candidates since the Company sold all of its legacy IP assets prior to the closing of the Contributions. Subsequent to the closing of the Contributions, Gyre has not generated any revenue.

Segment information for the years ended December 31, 2023 and 2022 is as follows (in thousands):


	Year Ended December 31, 2023
	BC		Gyre			Other				Consolidated
Revenues	$	113,450	$	—		$	—			$	113,450
Cost of revenues		4,636		—			—				4,636
Gross profit		108,814		—			—				108,814
Operating expenses excluding cost of revenues:
Selling and marketing		61,159		—			—				61,159
Research and development		13,698		82			—				13,780
General and administrative		8,872		5,214			576		(1)		14,662
Acquired in-process research and development		—		83,104			—				83,104
Divestiture losses		—		—			2,711		(2)		2,711
Loss on disposal of property and equipment		628		—			—				628
Total operating expenses excluding cost of revenues		84,357		88,400			3,287				176,044
Income (Loss) from operations	$	24,457	$	(88,400	)	$	(3,287	)		$	(67,230	)

Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	52	$	—		$	—			$	52
Selling and marketing		344		—			—				344
Research and development		481		—			—				481
General and administrative		1,916		4,488			—				6,404
Stock-based compensation total	$	2,793	$	4,488		$	—			$	7,281

(1) $0.6 million represents legal expense recorded in CPI during the year ended December 31, 2023.

(2) $2.7 million represents divestiture losses. See Note 8 for details.


	December 31, 2023
	BC		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539


	Year Ended December 31, 2022
	BC			Gyre		Other		Consolidated
Purchase of property and equipment	$	(8,517	)	$	—	$	—	$	(8,517	)


	Year Ended December 31, 2022
	BC		Gyre		Other				Consolidated
Revenues	$	102,290	$	—	$	—			$	102,290
Cost of revenues		4,793		—		—				4,793
Gross profit		97,497		—		—				97,497
Operating expenses excluding cost of revenues:
Selling and marketing		54,238		—		—				54,238
Research and development		16,686		—		—				16,686
General and administrative		17,240		—		130		(3)		17,370
Total operating expenses excluding cost of revenues		88,164		—		130				88,294
(Loss) income from operations		9,333		—		(130	)			9,203

Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	249	$	—	$	—			$	249
Selling and marketing		1,643		—		—				1,643
Research and development		2,301		—		—				2,301
General and administrative		9,173		—		—				9,173
Stock-based compensation total	$	13,366	$	—	$	—			$	13,366

(3) $0.1 million represents the other subsidiaries, CPI and GNI HK, etc. reported an aggregate $0.1 million general and administrative expense during the year ended December 31, 2022.


	December 31, 2022
	BC		Gyre		Other		Consolidated
Total assets	$	79,857	$	—	$	4,896	$	84,753


	Year Ended December 31, 2022
	BC			Gyre		Other		Consolidated
Purchase of property and equipment	$	(4,985	)	$	—	$	—	$	(4,985	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate to Company's Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Tax computed at federal statutory rate	21.00%	21.00%
Rate difference due to different jurisdiction	(2.43%)	4.31%
Preferential income tax rate for HNTE	3.19%	(10.37%)
Non-deductible Expense - Operating	(6.28%)	33.06%
Non-deductible expense - One-time expense related to the Contributions	(22.16%)	0.00%
R&D Super-deduction	1.45%	(12.42%)
Valuation allowance change	(4.37%)	0.00%
ESOP	(0.55%)	21.81%
Other	(0.76%)	(2.52%)
Effective tax rate	(10.91%)	54.87%

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of Common Stock, Reserved for Future Issuance

Common stock reserved for future issuance is as follows:


	December 31,
	2023		2022
Convertible Preferred Stock issued and outstanding		8,767,332		—
Preferred Stock Warrants issued and outstanding		540,666		—
Options issued and outstanding		18,280,548		17,036,941
Total common stock reserved		27,588,546		17,036,941

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
	Oct. 30, 2023	Apr. 30, 2023	Feb. 28, 2023	Dec. 31, 2023	Dec. 31, 2022
Commitments And Contingencies Disclosure [Line Items]
CVR derivative liability				$ 4,722
Purchase of property and equipment				8,517	$ 4,985
Property and Equipment
Commitments And Contingencies Disclosure [Line Items]
Purchase of property and equipment				2,800
Research and Development
Commitments And Contingencies Disclosure [Line Items]
Committed to allocate				$ 12,700
Contingent Value Rights Agreement
Commitments And Contingencies Disclosure [Line Items]
Percentage of excess cash on dispositions net				100.00%
Excess amount retained from net proceeds related to disposition of assets				$ 1,000
Percentage of excess preapproved costs				100.00%
Distribution to CVR holders from asset sale proceeds			$ 200
Long-term CVR derivative liability			$ 4,500
CVR derivative liability				$ 4,700
Contributions closing payable amount	$ 1,100
Litigation expenses		$ 400
Litigation settlement liability	$ 400
Vertex Asset Purchase Agreement \| Contingent Value Rights Agreement
Commitments And Contingencies Disclosure [Line Items]
Percentage of amount received on agreement				100.00%
F351 \| BC \| Submission of the New Drug Application
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				$ 4,800
F351 \| BC \| NDA Passes the NMPA's Review and Inspection
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				1,200
F351 \| BC \| NMPA's Approval of the NDA
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				$ 7,200

Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets


5.	Intangible Assets

The gross carrying amounts and accumulated amortization of the Company’s intangible assets with determinable lives as of December 31, 2023 and 2022 were as follows (in thousands):


	December 31, 2023
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(290	)	$	140
Computer software		171		(106	)		65
Total intangible assets	$	601	$	(396	)	$	205


	December 31, 2022
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Patents	$	1,496	$	(1,372	)	$	124
Technological know-how		438		(277	)		161
Computer software		104		(92	)		12
Total intangible assets	$	2,038	$	(1,741	)	$	297

Intangible assets are carried at cost less accumulated amortization and impairment, if applicable, and the amortization expense is recorded in operating expenses. The weighted average amortization period for the intangible assets as of December 31, 2023 is 5.05 years.

Amortization expense was $0.1 million and $0.2 million for each of the years ended December 31, 2023, and 2022, respectively. Based on finite-lived intangible assets recorded as of December 31, 2023, the estimated future amortization expense is as follows (in thousands):


	Estimated Amortization Expense
2024	$	34
2025		34
2026		34
2027		33
2028		18
Thereafter		52
Total	$	205

Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue


6.	Revenue

The Company’s product revenues were mainly generated from the sale of ETUARY. Sales of ETUARY accounted for 98.9% and 96.9% of total revenue for the years ended on December 31, 2023 and 2022, respectively.

Sales of Pharmaceutical Products

The Company generates revenue mostly through sales of ETUARY and certain generic drugs. The distributors were the Company’s direct customers, and sales to distributors accounted for 100% of revenue from ETUARY. The distributors sell ETUARY to outlets, including hospitals and other medical institutions, as well as pharmacies.

Product returns to date have not been significant and the Company has not considered it necessary to record a reserve for product returns. The Company’s product revenues were recognized at a point in time when the underlying product was delivered to the customer, which was when the customer obtained control of the product. Revenue from sales of pharmaceutical products was $113.5 million and $100.9 million for the years ended December 31, 2023 and 2022, respectively. All sales are generated in the PRC.

License of Intellectual Property

Revenue from licensing intellectual property is recognized when the control of the right to use the license is transferred to the customer. Milestone payments, which are included in the transaction price to the extent that it is highly probable that a significant reversal of accumulative revenue recognized will not occur, represent a form of variable consideration, which is recognized as revenue when the uncertainty associated with the variable consideration is subsequently resolved. At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered highly probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments that are not within the control of the Company, such as regulatory approvals, are not considered highly probable of being achieved until those approvals are received.

The Company’s sales by product categories for the years ended December 31, 2023 and 2022 are as follows (in thousands):


	Year ended December 31,
	2023		2022
Sales of Pharmaceutical Products	$	113,450	$	100,876
License of Intellectual Property		—		1,414
Total	$	113,450	$	102,290

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes


14.	Income Taxes

In October 2023, the Company completed its acquisition of the controlling interest in BC. As a result of the Contributions, the Company directly or indirectly owned multiple controlled foreign corporations (“CFCs”) for US tax purposes.

The components of the Company’s provision for income taxes for the years ended December 31, 2023 and 2022 consist of the following (in thousands):


	Year Ended December 31,
	2023			2022
Current income tax provision:
Federal	$	—		$	—
State		6			1
Foreign - PRC		9,343			5,987
Total current income tax provision	$	9,349		$	5,988

Deferred income tax provision:
Federal	$	—		$	(91	)
State		—			—
Foreign - PRC		(834	)		(799	)
Total deferred income tax provision	$	(834	)	$	(890	)
Total income tax provision	$	8,515		$	5,098

The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2023 and 2022 are as follows:


	Year Ended December 31,
	2023	2022
Tax computed at federal statutory rate	21.00%	21.00%
Rate difference due to different jurisdiction	-2.43%	4.31%
Preferential income tax rate for HNTE	3.19%	-10.37%
Non-deductible expense – Operating	-6.28%	33.06%
Non-deductible expense – One-time expense related to the Contributions	-22.16%	0.00%
R&D Super-deduction	1.45%	-12.42%
Valuation allowance change	-4.37%	0.00%
ESOP	-0.55%	21.81%
Other	-0.76%	-2.52%
Effective tax rate	-10.91%	54.87%

Significant components of the Company’s deferred tax assets as of December 31, 2023 and 2022 consist of the following (in thousands):


	Year Ended December 31,
	2023			2022
Deferred tax assets:
Accruals and reserves	$	2,811		$	183
Deferred revenue		39			—
Net operating loss carry forwards		40,669			—
Other equity investments		—			150
Tax credit carry forwards		4,463			—
Fixed and intangible assets		15,332			3,428
Impact from foreign corporations		4,590			—
Capitalized transaction costs		658			414
Lease liabilities		98			—
Deferred income tax assets before valuation allowance		68,660			4,175
Deferred tax liability – ROU assets		(108	)		—
Deferred tax liability – Fixed assets		(84	)		(94	)
Less: valuation allowance		(63,773	)		—
Deferred tax assets, net	$	4,695		$	4,081

The movements of the valuation allowance are as follows (in thousands):


	2023			2022
Balance at the beginning of the year	$	—		$	—
Changes of valuation allowances		(63,773	)		—
Balance at the end of the year	$	(63,773	)	$	—

Based on the available objective evidence on December 31, 2023, the Company does not believe it is more likely than not that its net deferred tax assets will be realizable for US tax purposes. Accordingly, the Company has provided a full valuation allowance against its net deferred tax assets on December 31, 2023 for US tax purposes.

As of December 31, 2023, after consideration of certain limitations (see below), the Company had approximately $193.5 million federal and $10.5 million state net operating loss carryforwards (“NOL”) available to reduce future taxable income which, if unused, will begin to expire in 2037 for federal and 2034 for state tax purposes. The federal net operating loss carryforward includes $191.9 million that have an indefinite life.

As of December 31, 2023, the Company also had tax credit carry forwards available to offset future tax liabilities of approximately $8,000 for federal and $7.5 million for state. If unused, the federal credit will begin to expire in 2042 and the state tax credit does not expire.

If the Company experiences a greater than 50 percentage point aggregate change in ownership over a three-year period (a Section 382 ownership change), utilization of its pre-change NOL carryforwards are subject to annual limitation under Section 382 of the Internal Revenue Code (California has similar provisions). The annual limitation is determined by multiplying the value of the Company’s stock immediately before such ownership change by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards before utilization. The Company determined that ownership changes under Section 382 occurred on December 31, 2007, August 20, 2015, April 13, 2017, February 15, 2018, February 18, 2020, and December 26, 2022. Approximately $156.5 million and $75.2 million of the NOLs will expire unutilized for federal and California state income tax purposes, respectively. The Company has derecognized NOL related deferred tax assets in the tax affected amounts of $32.9 million and $0 for federal and California state income tax purposes, respectively, through the year ended December 31, 2023.

All of the federal R&D credits could expire unutilized, whereas none of the California R&D credits are subject to expiration. Approximately $6.0 million of gross federal R&D credit-related deferred tax assets were derecognized due to the Section 383 limitation. The ability of the Company to use its remaining NOL and credit carryforwards may be further limited if the Company experiences a Section 382 ownership change as a result of future changes in its stock ownership.

On June 29, 2020, the California Governor signed Assembly Bill 85 (“A.B. 85”), which now becomes California law. A.B. 85, which includes several tax measures, provides for a three-year suspension of the use of net operating losses for medium and large businesses and a three-year cap on the use of business incentive tax credits to offset no more than $5 million of tax per year. Generally, A.B. 85 suspends the use of California NOLs for taxable years 2021, 2022, and 2023 for taxpayers with taxable income of $1 million or more. Since the Company is not expected to generate California source taxable income of more than $1 million, no material impact is anticipated at this time.

Accounting for Uncertainty in Income Taxes

The Company only recognizes tax benefits if it is more likely than not that they will be sustained upon audit by the relevant tax authority based upon their technical merits. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained.

The Company had approximately $1.8 million of unrecognized tax benefits as of December 31, 2023. As the Company has a full valuation allowance on its deferred tax assets, the unrecognized tax benefits have reduced the deferred tax assets and the valuation allowance in the same amount. The Company does not expect the amount of unrecognized tax benefits to materially change in the next twelve months.

A reconciliation of the beginning and ending balance of the unrecognized tax benefits is as follows (in thousands):


Beginning Balance on January 1, 2022	$	—
Increase/(Decrease) of unrecognized tax benefits taken in prior years		—
Increase/(Decrease) of unrecognized tax benefits related to current year		—
Ending Balance on December 31, 2022		—
Increase as a result of the GNI USA Contributions on October 30, 2023		1,833
Increase/(Decrease) of unrecognized tax benefits taken in prior years		—
Increase/(Decrease) of unrecognized tax benefits related to current year		—
Ending Balance on December 31, 2023	$	1,833

Interest and penalties related to unrecognized tax benefits would be included as income tax expense in the Company’s consolidated statements of operations. As of December 31, 2023 and 2022, the Company had not recognized any tax-related penalties or interest in its consolidated financial statements.

The Company files income tax returns in the United States federal, California, and Florida for tax year 2023. The Company filed an initial return in 2022 in Florida and final returns in 2021 in Kansas, Missouri and New Jersey state jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or other jurisdictions. As of December 31, 2023 and 2022, the Company had no uncertain tax positions which affected its financial position as its results of operations or its cash flow, and will continue to evaluate for uncertain tax positions in the future. The Company is subject to United States federal and state income tax examinations by authorities for all tax years due to accumulated net operating losses that are being carried forward for tax purposes.

APB 23

Generally, a taxable outside basis difference associated with a foreign subsidiary may not be recognized if the indefinite reversal criterion of ASC paragraph 740-30-25-17 (APB Opinion No. 23, Accounting for Income Taxes – Special Areas (“APB 23”)) is met. A deferred tax liability is recognized when an entity no longer meets the indefinite reversal criterion. ASC paragraph 740-30-25-17 provides a presumption that all undistributed earnings will be transferred to the parent entity may be overcome, and no income taxes shall be accrued by the parent entity, if sufficient evidence shows that the subsidiary has invested or will invest the undistributed earnings indefinitely or that the earnings will be remitted in a tax-free liquidation.

The Company does not have a plan of repatriation of earnings from non-US subsidiaries to the Company. However, to the extent the Company will not permanently reinvest in its PRC business, a DTL of approximately $2.5 million as of December 31, 2023 related to PRC withholding taxes on repatriation of BC’s earnings (i.e., the Company’s primary operating subsidiary in the PRC) would need to be recorded.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Fair Value Measurements and Financial Instruments - Additional Information (Detail)	1 Months Ended
	Oct. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2025 USD ($)	Dec. 31, 2023 USD ($) $ / shares shares	Oct. 27, 2023 shares	Dec. 31, 2022 USD ($) shares
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value measurement transfer between Level 1 and Level 2			$ 0
Fair value measurement transfer Level 3			0
Financial assets at fair value			10,582,000		$ 0
Financial liabilities at fair value			$ 17,557,000		$ 0
Warrants exercise price per share \| $ / shares			$ 4,915
Convertible Preferred Stock
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Preferred stock shares issued \| shares	811		13,151	811	12,340
Preferred Stock Warrants
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Warrants to purchase shares \| shares	811			811
Aggregate purchase price of warrants	$ 5,000,000
Warrants exercise price per share \| $ / shares	$ 4,915
Expiration date	Oct. 30, 2033
Number of shares of common stock issuable upon exercise and conversion of warrants \| shares	540,666
Long-term receivable
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Financial assets at fair value			$ 4,722,000
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| CVR Derivative Liability non current \| Estimated Discount Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Derivative liability measurement input			0.0505
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| Long-term receivable \| Estimated Discount Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Derivative asset measurement input			0.0505
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| Forecast
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Amount to be received under agreement		$ 5,000,000

Financial Statements Schedule I Financial Information of Parent Company - Condensed Statements of Operations (Parenthetical) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Parent Company
Condensed Income Statements, Captions [Line Items]
Other comprehensive (loss) income, net of tax

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-SubTopic 10
-Topic 505
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481674/830-30-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 45
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481694/830-30-45-17

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.7-04(19))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

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-Topic 220
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-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-4

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
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-URI https://asc.fasb.org//1943274/2147482765/220-10-50-5

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-Topic 220
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-Section 45
-Paragraph 1A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

+ Details

GNI USA Contributions under the Business Combination Agreement - Schedule of Estimated Fair Value of Option Awards Based on Black-scholes Model (Details)	12 Months Ended
	Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Expected term (in years)	5 years
Volatility	84.30%
Risk-free interest rate	3.65%

Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans


17.	Employee Benefit Plans

Mainland China Contribution Plan

Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contribution for each employee is based on a percentage of the employee’s current compensation as required by the local government. The contributions are charged to profit or loss as they become payable in accordance with the rules of the central pension scheme. The total

contributions for such employee benefits were $4.3 million and $3.6 million for the years ended December 31, 2023, and 2022, respectively.

Defined-Contribution Savings Plan

In the U.S., the Company maintains a defined-contribution savings plan pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. The plan is available to employees who meet the minimum age and length of service requirements. The contributions made during the year ended December 31, 2023 were immaterial.

Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Segment information for the years ended December 31, 2023 and 2022 is as follows (in thousands):


	Year Ended December 31, 2023
	BC		Gyre			Other				Consolidated
Revenues	$	113,450	$	—		$	—			$	113,450
Cost of revenues		4,636		—			—				4,636
Gross profit		108,814		—			—				108,814
Operating expenses excluding cost of revenues:
Selling and marketing		61,159		—			—				61,159
Research and development		13,698		82			—				13,780
General and administrative		8,872		5,214			576		(1)		14,662
Acquired in-process research and development		—		83,104			—				83,104
Divestiture losses		—		—			2,711		(2)		2,711
Loss on disposal of property and equipment		628		—			—				628
Total operating expenses excluding cost of revenues		84,357		88,400			3,287				176,044
Income (Loss) from operations	$	24,457	$	(88,400	)	$	(3,287	)		$	(67,230	)

Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	52	$	—		$	—			$	52
Selling and marketing		344		—			—				344
Research and development		481		—			—				481
General and administrative		1,916		4,488			—				6,404
Stock-based compensation total	$	2,793	$	4,488		$	—			$	7,281

(1) $0.6 million represents legal expense recorded in CPI during the year ended December 31, 2023.

(2) $2.7 million represents divestiture losses. See Note 8 for details.


	December 31, 2023
	BC		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539


	Year Ended December 31, 2022
	BC			Gyre		Other		Consolidated
Purchase of property and equipment	$	(8,517	)	$	—	$	—	$	(8,517	)


	Year Ended December 31, 2022
	BC		Gyre		Other				Consolidated
Revenues	$	102,290	$	—	$	—			$	102,290
Cost of revenues		4,793		—		—				4,793
Gross profit		97,497		—		—				97,497
Operating expenses excluding cost of revenues:
Selling and marketing		54,238		—		—				54,238
Research and development		16,686		—		—				16,686
General and administrative		17,240		—		130		(3)		17,370
Total operating expenses excluding cost of revenues		88,164		—		130				88,294
(Loss) income from operations		9,333		—		(130	)			9,203

Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	249	$	—	$	—			$	249
Selling and marketing		1,643		—		—				1,643
Research and development		2,301		—		—				2,301
General and administrative		9,173		—		—				9,173
Stock-based compensation total	$	13,366	$	—	$	—			$	13,366

(3) $0.1 million represents the other subsidiaries, CPI and GNI HK, etc. reported an aggregate $0.1 million general and administrative expense during the year ended December 31, 2022.


	December 31, 2022
	BC		Gyre		Other		Consolidated
Total assets	$	79,857	$	—	$	4,896	$	84,753


	Year Ended December 31, 2022
	BC			Gyre		Other		Consolidated
Purchase of property and equipment	$	(4,985	)	$	—	$	—	$	(4,985	)

GNI USA Contributions under the Business Combination Agreement (Tables)

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Summary of Purchase Price

The following summarizes the purchase price paid in the GNI USA Contributions (in thousands, except per share amounts):


Catalyst Common Stock outstanding		2,532
Multiplied by the fair value per share of Catalyst stock (1)	$	7.67
Fair value of common shares to be owned by Catalyst’s stockholders	$	19,420
Fair value of preferred shares to be owned by Catalyst’s stockholders (2)	$	63,099
Fair value of Catalyst	$	82,519
Pre-GNI USA Contributions Catalyst stock options assumed by CPI (3)	$	1,829
Fair value of consideration issued	$	84,348
Acquisition costs	$	659
Purchase price	$	85,007

(1)

The purchase price was based on the closing price of Catalyst Common Stock on October 30, 2023.

(2)

This amount is calculated based on 12,340 shares of Convertible Preferred Stock outstanding as of October 30, 2023. Each share of preferred stock converts into approximately 666.67 shares of common stock. The fair value was calculated using the closing price of Catalyst Common Stock on October 30, 2023 and the number of underlying common shares.

(3)

Any option to purchase Catalyst Common Stock that was issued and outstanding at the Effective Time remains issued and outstanding and unaffected by the GNI USA Contributions. In a reverse acquisition, however, from an accounting perspective, the Catalyst employee stock option awards have been exchanged for share-based payment awards of the accounting acquirer. Accordingly, this balance represents the pre-Contributions service portion of the estimated fair value of the employee stock option awards issued to Catalyst option holders. In calculating the estimated fair value of the option awards based on the Black-Scholes model, management used the following weighted-average assumptions:


Expected term (in years)		5.00
Volatility		84.30	%
Risk free interest rate		3.65	%
Dividend yield	—%

Summary of Estimated Fair Value of Option Awards Based on Black-scholes Model

In calculating the estimated fair value of the option awards based on the Black-Scholes model, management used the following weighted-average assumptions:


Expected term (in years)		5.00
Volatility		84.30	%
Risk free interest rate		3.65	%
Dividend yield	—%

Summary Of Acquired Assets And Assumed Liabilities Of Based On Estimated Fair Values

The total purchase price paid in the GNI USA Contributions has been allocated to the net assets acquired and liabilities assumed based on their fair values at the Effective Time. The allocation of the purchase price, as shown above, is as follows (in thousands):


Cash and cash equivalents	$	5,587
Other receivables from GNI		423
Prepaid assets		1,097
Other current assets		41
Long-term receivable from GCBP		4,683
Other assets, noncurrent		168
IPR&D		83,104
Accounts payable		(44	)
Advance payment received from GNI		(2,500	)
Accrued expenses and other current liabilities		(1,784	)
CVR excess closing cash payable		(1,085	)
CVR derivative liability, noncurrent		(4,683	)
Net assets acquired	$	85,007

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes stock option activity considering the conversion of BC Options to Gyre options to purchase shares of Gyre Common Stock upon completion of the GNI USA Contributions:


	Number of Shares Underlying Outstanding Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (Thousands)
Outstanding at December 31, 2022		17,036,941		$	0.75		5.1	$	12,667
Forfeited		(18,936	)	$	0.75
Deemed issuance of options to former stockholders of Catalyst upon the GNI USA Contributions		435,916		$	20.10
Granted		838,686		$	6.93
Exercised		(12,059	)	$	13.86
Outstanding at December 31, 2023		18,280,548		$	1.49		6.9	$	444,197
Exercisable at December 31, 2023		18,262,686		$	1.48		6.9	$	19,433

Summary of Weighted Average Valuation Assumptions Used to Estimate Fair Value of Employee Stock Options Granted

The fair value of employee stock options granted was estimated using the following weighted-average assumptions:


	Year Ended December 31,
	2023
Expected volatility (%)	84.30-84.30
Risk-free interest rate (%)	3.82-4.77
Expected option life (in years)	5.0-5.8
Expected dividend yield (%)		—
Weighted average share price of the Company (USD per share)	$	6.93

Summary of Stock-Based Compensation Recognized

Total stock-based compensation recognized was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Cost of revenues	$	52	$	249
Selling and marketing		344		1,643
Research and development		481		2,301
General and administrative		6,404		9,173
Total	$	7,281	$	13,366

GNI USA Contributions under the Business Combination Agreement

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

GNI USA Contributions under the Business Combination Agreement


7.	GNI USA Contributions under the Business Combination Agreement

The GNI USA Contributions under the Business Combination Agreement (see Note 1) was treated as a reverse asset acquisition, with CPI as the accounting acquirer and Catalyst as the legal acquirer. Under U.S. GAAP, a company must evaluate if an integrated set of assets and activities qualifies as a business acquisition or an asset acquisition by

assessing if the gross assets’ fair value is primarily concentrated in a single asset or a group of similar assets. If this criterion is met, the acquired operations are not considered a business. Catalyst did not meet the business definition as its fair value was concentrated in one IPR&D asset, it lacked an organized workforce contributing significantly to output creation, and no substantive processes were acquired. As such, the GNI USA Contributions was treated as an asset acquisition. In an asset acquisition, goodwill is not recognized, and the cost allocated to the acquired IPR&D with no alternative future use is expensed.

The following summarizes the purchase price paid in the GNI USA Contributions (in thousands, except per share amounts):


Catalyst Common Stock outstanding		2,532
Multiplied by the fair value per share of Catalyst stock (1)	$	7.67
Fair value of common shares to be owned by Catalyst’s stockholders	$	19,420
Fair value of preferred shares to be owned by Catalyst’s stockholders (2)	$	63,099
Fair value of Catalyst	$	82,519
Pre-GNI USA Contributions Catalyst stock options assumed by CPI (3)	$	1,829
Fair value of consideration issued	$	84,348
Acquisition costs	$	659
Purchase price	$	85,007

(1)

The purchase price was based on the closing price of Catalyst Common Stock on October 30, 2023.

(2)

(3)


Expected term (in years)		5.00
Volatility		84.30	%
Risk free interest rate		3.65	%
Dividend yield	—%


Cash and cash equivalents	$	5,587
Other receivables from GNI		423
Prepaid assets		1,097
Other current assets		41
Long-term receivable from GCBP		4,683
Other assets, noncurrent		168
IPR&D		83,104
Accounts payable		(44	)
Advance payment received from GNI		(2,500	)
Accrued expenses and other current liabilities		(1,784	)
CVR excess closing cash payable		(1,085	)
CVR derivative liability, noncurrent		(4,683	)
Net assets acquired	$	85,007

The Minority Holder Contributions were treated as an equity transaction, where the Company obtained additional indirect interest and maintained its control in BC.