Company: ZLAB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008409
Chunk: 39

Company: Zai Lab Ltd
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 39
---
 the Years Ended December 31, 2024, 2023, and 2022

6.    Long-Term Investments 

In July 2021, the Company made an equity investment in MacroGenics, a biopharmaceutical company focused on developing and commercializing innovative monoclonal antibody-based therapeutics for the treatment of cancer, in a private placement with total contributions of $30.0 million and obtained 958,467 newly issued common shares of MacroGenics at $31.30 per share. The Company recorded this investment at acquisition cost and subsequently measured it at fair value, with the changes in fair value recognized in other income, net in the consolidated statements of operations. The equity investments with readily determinable fair value are measured using level 1 inputs and were $3.1 million and $9.2 million as of December 31, 2024 and 2023, respectively. The Company recognized a loss of $6.1 million, a gain of $2.8 million, and a loss of $9.0 million in 2024, 2023, and 2022, respectively. 

7.    Property and Equipment, Net 

The following table presents the components of the Company’s property and equipment, net ($ in thousands):December 31,20242023Office equipment1,230 1,047 Electronic equipment9,211 9,161 Vehicle196 199 Laboratory equipment20,516 20,140 Manufacturing equipment17,493 17,680 Leasehold improvements11,306 11,371 Construction in progress25,129 24,272  85,081 83,870 Less: accumulated depreciation(37,120)(30,136)Property and equipment, net47,961 53,734 Depreciation expense was $8.6 million, $8.4 million, and $7.7 million for 2024, 2023, and 2022, respectively.

8.    Leases

The Company leases facilities for its offices, research and development center, and manufacturing facilities in mainland China, Hong Kong, Taiwan, and the United States. Lease terms vary based on the nature of operations and market dynamics; however, all leased facilities are classified as operating leases with remaining lease terms between one and eight years. The following table presents operating lease costs ($ in thousands). Total lease expense related to short-term leases was insignificant for those periods presented.Year Ended December