Company: ZLAB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038548
Chunk: 39

Company: Zai Lab Ltd
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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.4 million in the three and six months ended June 30, 2024, respectively. 

6. Intangible Assets, Net 

The following table presents the components of the Company’s intangible assets, net ($ in thousands):June 30, 2025December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAccumulated AmortizationNet Carrying ValueFinite-lived intangible assetsCommercial products60,544 (5,279)55,265 57,104 (2,637)54,467 Software4,377 (3,123)1,254 4,360 (2,800)1,560 Total64,921 (8,402)56,519 61,464 (5,437)56,027 Intangible assets for commercial products include capitalized post-approval milestone fees and acquired commercial manufacturing know-how and related development costs. The Company is amortizing intangible assets for commercial 

10

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

products as cost of product revenue over the estimated remaining useful life of the related products. Intangible assets for externally purchased software are amortized over three to five years on a straight-line basis.Amortization expense was $1.5 million and $2.9 million in the three and six months ended June 30, 2025, respectively, and $0.8 million and $1.5 million in the three and six months ended June 30, 2024, respectively. The weighted-average remaining amortization period for intangible assets for commercial products and software was 9.2 years and 2.8 years, respectively.

7. Revenues 

Product Revenue, Net The Company’s product revenue is derived from the sales of its commercial products in Greater China. The table below presents the Company’s gross and net product revenue ($ in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Product revenue - gross116,530 106,611 228,863 199,723 Less: Rebates and sales returns(7,445)(6,505)(14,128)(12,468)Product revenue - net109,085 100,106 214,735 187,255 Sales rebates are offered to distributors in mainland China, and the amounts are recorded as a reduction of product revenue. Estimated