Company: CNTB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001835268-25-000058
Chunk: 45

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, any adverse legal or regulatory events affecting the issuer or issuer’s industry, and any significant deterioration in economic conditions.The Company does not intend to sell the investment in unrealized loss position and it is unlikely that the Company will be required to sell the investment before the recovery of its amortized cost basis. Based on its evaluation, the Company determined its credit losses related to its available-for-sale securities were immaterial at September 30, 2025 and December 31, 2024.The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. The Company regularly monitors and evaluates the realizable value of its available-for-sale investment securities. The Company did not recognize any impairment losses for the three and nine months ended September 30, 2025 or 2024.

13

Unrealized gains and losses associated with the Company’s investments are reported in accumulated other comprehensive loss. For the three and nine months ended September 30, 2025, the Company recorded $11,000 and $4,000, respectively, in net unrealized losses associated with its available-for-sale investments. For the three months ended September 30, 2024, the Company did not record any unrealized gains or losses associated with available-for-sale investments. For the nine months ended September 30, 2024, the Company recorded $11,000 in net unrealized gains associated with its available-for-sale investments.Realized gains and losses associated with its investments, if any, are reported in the statements of operations and comprehensive loss. The Company did not recognize any realized gains or losses during the three and nine months ended September 30, 2025 or 2024.Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consist of the following (in thousands):September 30, 2025December 31, 2024Prepaid clinical and manufacturing expenses$6,454 $1,541 Prepaid insurance459 242 Prepaid taxes212 — Interest receivables157 262 Other prepaid expenses and current assets517 419 Total prepaid expenses and other current assets$7,799 $2,464 Accrued LiabilitiesAccrued liabilities consist of the following (in thousands):