Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 66

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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9,498 9,211 Vehicle196 196 Laboratory equipment20,537 20,516 Manufacturing equipment17,525 17,493 Leasehold improvements11,324 11,306 Building24,084 — Construction in progress4,274 25,129 88,669 85,081 Less: accumulated depreciation(39,015)(37,120)Property and equipment, net49,654 47,961 

Depreciation expense was $2.0 million and $2.2 million in the first quarter of 2025 and 2024, respectively. 

6. Intangible Assets, Net 

The following table presents the components of the Company’s intangible assets, net ($ in thousands):March 31, 2025December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAccumulated AmortizationNet Carrying ValueFinite-lived intangible assetsCommercial products58,744 (3,953)54,791 57,104 (2,637)54,467 Software4,366 (2,959)1,407 4,360 (2,800)1,560 Total63,110 (6,912)56,198 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 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.

9

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

Amortization expense was $1.5 million and $0.7 million in the first quarter of 2025 and 2024, 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 March 31,20252024Product revenue - gross112,333 93,112 Less: Rebates and sales returns(6,683)(5,963)Product revenue - net105,650 87,149 Sales rebates are offered to distributors in