GYRE THERAPEUTICS INC
For the period ended Dec 31, 2023. Filed Mar 27, 2024.
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FY2023 · Filed Mar 27, 2024
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Schedule I - Condensed Financial Information of Parent Company
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
Condensed Consolidated Statements of Operations
| 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.
Condensed Consolidated Statements of Cash Flows
| 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.
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