Cerus(US:CERS)2025-08-05 20:52PART I FINANCIAL INFORMATION This section presents Cerus Corporation's unaudited condensed consolidated financial statements and detailed notes on accounting policies, financial instruments, and key agreements Item 1. Financial Statements This section details Cerus Corporation's unaudited condensed consolidated financial statements and comprehensive notes on accounting policies and financial instruments Condensed Consolidated Balance Sheets Total assets and liabilities increased from December 2024 to June 2025, driven by higher inventories and current debt, while equity slightly decreased Metric (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Assets | | | | Total current assets | $168,534 | $152,022 | | Total assets | $213,071 | $200,917 | | Liabilities | | | | Total current liabilities | $84,358 | $63,608 | | Total liabilities | $156,901 | $144,021 | | Equity | | | | Total stockholders' equity | $55,428 | $56,145 | Condensed Consolidated Statements of Operations Product and government contract revenue increased for both periods ended June 30, 2025, leading to a narrowed net loss despite continued losses Metric (in thousands, except per share) | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Product revenue | $52,445 | $45,079 | $95,684 | $83,444 | | Government contract revenue | $7,684 | $5,440 | $13,298 | $10,470 | | Gross profit on product revenue | $28,975 | $24,666 | $54,399 | $45,938 | | Research and development | $18,900 | $14,969 | $35,505 | $29,451 | | Selling, general and administrative | $21,182 | $18,973 | $41,468 | $38,772 | | Loss from operations | $(3,423) | $(3,836) | $(9,276) | $(11,815) | | Net loss attributable to Cerus Corporation | $(5,707) | $(5,775) | $(13,424) | $(15,463) | | Basic and diluted net loss per share | $(0.03) | $(0.03) | $(0.07) | $(0.08) | Condensed Consolidated Statements of Comprehensive Loss Comprehensive loss decreased for both periods ended June 30, 2025, due to a reduced net loss and changes in investment gains/losses Metric (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(5,715) | $(5,775) | $(13,433) | $(15,465) | | Foreign currency translation gain (loss) adjustment | $5 | $(3) | $8 | $(11) | | Unrealized (losses) gains on available-for-sale investments, net of taxes | $(12) | $258 | $119 | $418 | | Total comprehensive loss attributable to Cerus Corporation | $(5,714) | $(5,520) | $(13,297) | $(15,056) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity remained stable, with increased paid-in capital from stock compensation offset by accumulated deficit from net losses Metric (in thousands) | Metric (in thousands) | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :-------------------- | :---------------- | :------------- | :------------ | | Common Stock (Amount) | $186 | $191 | $191 | | Additional Paid-in Capital | $1,121,887 | $1,128,814 | $1,134,462 | | Accumulated Deficit | $(1,065,528) | $(1,073,242) | $(1,078,952) | | Total Stockholders' Equity | $56,896 | $56,242 | $56,170 | - Issuance of common stock from vesting of restricted stock units and ESPP purchases contributed to an increase in common stock and additional paid-in capital16 - Stock-based compensation added $6,635 thousand for the three months ended March 31, 2025, and $5,681 thousand for the three months ended June 30, 2025, to additional paid-in capital16 Condensed Consolidated Statements of Cash Flows Operating cash flow shifted to negative in 2025 due to inventory, while investing and financing activities provided less cash than in 2024 Metric (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(3,290) | $2,360 | | Net cash used in investing activities | $(2,278) | $(5,661) | | Net cash provided by financing activities | $942 | $4,158 | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(4,230) | $751 | | Cash, cash equivalents, and restricted cash, end of period | $17,131 | $14,110 | - The shift in operating cash flow from positive to negative was primarily driven by increased inventory-related purchases and the timing of cash collections and payments in 2025171 - The decrease in net cash from financing activities was mainly due to proceeds from the Term Loan Credit Agreement during the six months ended June 30, 2024, which did not recur in 2025173 Notes to Condensed Consolidated Financial Statements These notes detail accounting policies, financial instruments, liabilities, debt, leases, equity, income taxes, and development agreements, including BARDA funding updates Note 1. Summary of Significant Accounting Policies This note details Cerus Corporation's accounting policies, covering revenue recognition, R&D, investments, inventories, stock-based compensation, and foreign currency - Revenue is recognized based on a five-step model, with product revenue from sales of INTERCEPT Blood System components and services, and government contract revenue recognized as costs are incurred or milestones are met262728 Product Revenue by Geographical Location (in thousands) | Region | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | North America | $35,286 | $30,097 | $65,886 | $55,195 | | Europe, Middle East and Africa | $16,612 | $13,725 | $28,824 | $26,439 | | Other | $547 | $1,257 | $974 | $1,810 | | Total product revenue | $52,445 | $45,079 | $95,684 | $83,444 | - The company consolidates its joint venture in China (Cerus Zhongbaokang (Shandong) Biomedical Co., LTD.) as a variable interest entity where it is the primary beneficiary52 Note 2. Available-for-sale Securities and Fair Value on Financial Instruments Available-for-sale securities, primarily U.S. government and corporate debt, totaled $63.3 million, with no credit losses recognized Available-for-sale Securities (in thousands) | Category | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------------- | :----------------------- | :--------------------------- | | Money market funds | $1,269 | $1,773 | | United States government agency securities | $23,810 | $24,062 | | Corporate debt securities | $35,549 | $33,371 | | Mortgage-backed securities | $2,675 | $2,753 | | Total available-for-sale securities | $63,303 | $61,959 | Available-for-sale Securities by Contractual Maturity (in thousands) | Maturity | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------------- | :----------------------- | :--------------------------- | | One year or less | $45,734 | $38,173 | | Greater than one year and less than five years | $17,569 | $23,786 | | Total available-for-sale securities | $63,303 | $61,959 | - The company did not recognize any expected credit losses on its available-for-sale securities during the three and six months ended June 30, 2025 and 202467 Note 3. Inventories Total inventories increased to $68.9 million by June 2025, primarily due to a rise in finished goods Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Raw materials | $10,208 | $8,641 | | Work-in-process | $22,803 | $22,522 | | Finished goods | $35,867 | $21,132 | | Total inventories | $68,878 | $52,295 | | Less: non-current inventories | $14,349 | $14,145 | | Total current inventories | $54,529 | $38,150 | Note 4. Accrued Liabilities Accrued liabilities rose to $20.9 million by June 2025, mainly from increased compensation and professional services Accrued Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accrued compensation and related costs | $12,628 | $11,939 | | Accrued professional services | $4,528 | $3,406 | | Other accrued expenses | $3,744 | $3,598 | | Total accrued liabilities | $20,900 | $18,943 | Note 5. Debt Total debt increased to $84.9 million by June 2025, with a significant portion reclassified as current, under secured loan agreements Debt (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Term Loan | $64,891 | $64,862 | | Revolving Loan | $20,000 | $19,297 | | Total debt | $84,891 | $84,159 | | Less: current portion | $28,125 | $19,297 | | Non-current portion | $56,766 | $64,862 | Expected Principal, Interest and Fee Payments on Term Loan (in thousands) | Year ended December 31, | Principal | Interest and Fees | Total | | :---------------------- | :-------- | :---------------- | :---- | | 2025 | $0 | $3,725 | $3,725 | | 2026 | $24,375 | $6,499 | $30,874 | | 2027 | $32,500 | $2,939 | $35,439 | | 2028 | $8,125 | $1,456 | $9,581 | | Total | $65,000 | $14,619 | $79,619 | - The Term Loan Credit Agreement bears interest at a floating rate of Term SOFR (subject to a 1.00% floor) plus 6.50%, approximately 11.2% at June 30, 202578 Note 6. Leases Operating leases for facilities and equipment have a 4.1-year average term, with $1.972 million in expense for H1 2025 Operating Lease Information | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Weighted-average remaining lease term | 4.1 years | 4.8 years | | Weighted-average discount rate | 8.9% | 8.6% | Operating Lease Expense (in thousands) | Period | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Operating lease expense | $1,007 | $1,000 | $1,972 | $1,964 | Note 7. Commitments and Contingencies Cerus had $26.0 million in short-term and $3.3 million in long-term purchase commitments for INTERCEPT Blood System components - Short-term purchase commitments totaled $26.0 million as of June 30, 202592 - Long-term purchase commitments totaled $3.3 million as of June 30, 202592 Note 8. Stockholders' Equity An Amended Sales Agreement allows for $96.8 million in common stock sales, with no activity in H1 2025 - The Amended Sales Agreement allows for the issuance and sale of up to $96.8 million of common stock94 - No shares were sold under the Amended Sales Agreement during the six months ended June 30, 202595 - Approximately $96.8 million of common stock was available for sale under the Amended Sales Agreement as of June 30, 202595 Note 9. Stock-Based Compensation Cerus maintains ESPP and equity incentive plans, with 2.1 million shares available for ESPP and 14.6 million for the 2024 Plan Stock Options Activity (in thousands, except per share amounts) | Metric | Number of Options Outstanding | | :-------------------------- | :---------------------------- | | Balance at December 31, 2024 | 12,297 | | Forfeited/canceled | (1,713) | | Balance at June 30, 2025 | 10,584 | RSUs Activity (in thousands, except per share amounts) | Metric | Number of RSUs Unvested | | :-------------------------- | :---------------------- | | Balance at December 31, 2024 | 13,661 | | Granted | 10,830 | | Vested | (5,589) | | Forfeited | (738) | | Balance at June 30, 2025 | 18,164 | - As of June 30, 2025, approximately 14.6 million shares were available for future issuance under the 2024 Plan100 Note 10. Income Taxes Income tax expense was $76 thousand (Q2) and $150 thousand (H1) from the European subsidiary, with a U.S. deferred tax valuation allowance Income Tax Expense (Benefit) (in thousands) | Period | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision for (benefit from) income taxes | $76 | $(56) | $150 | $18 | - Income tax expenses were primarily related to the operating activities of the Cerus Europe B.V. subsidiary103167 - A valuation allowance is maintained on substantially all U.S. net deferred tax assets due to a history of cumulative operating losses168 Note 11. Development and License Agreements Cerus has a supply agreement with Fresenius and government contracts (BARDA, FDA, DoD) funding R&D for pathogen reduction technologies - The 2022 Agreement with Fresenius for manufacturing disposable kits for platelet and plasma systems extends until December 31, 2031104 - BARDA committed funding under the 2016 BARDA Agreement increased to $185.5 million as of June 30, 2025, with a total funding opportunity of $270.2 million through September 2026 if subsequent Option Periods are exercised107 - The 2024 BARDA Agreement includes committed funding of up to $32.1 million for the base period, with a total funding opportunity of $188.4 million if subsequent option periods are exercised, supporting the red blood cell system's development108 - The DoD agreement for pathogen-reduced, lyophilized cryoprecipitate was extended to February 2027, increasing the total contract value from $9.1 million to $17.8 million110 Note 12. Segment, Customer and Geographic Information Cerus operates as one segment, with U.S. and European operations, and key customers including American Red Cross and Établissement Français du Sang - The company operates in one reportable segment, with the CEO as the Chief Operating Decision Maker113 Significant Customers (% of Total Product Revenue) | Customer | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | American Red Cross | 33% | 36% | 36% | 36% | | OneBlood | 11% | * | * | * | | Établissement Français du Sang | 10% | 11% | 10% | 13% | - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025117 Note 13. Subsequent Events The One Big Beautiful Bill Act (OBBBA) was enacted in July 2025, amending U.S. tax law, with its financial impact under evaluation - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025117 - OBBBA amends U.S. tax law, including provisions related to bonus depreciation, research and development expenses, and foreign derived intangible income117 - The company is currently evaluating the impact of OBBBA on its condensed consolidated financial statements117 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Cerus Corporation's financial performance, liquidity, and capital resources, highlighting revenue growth, operating expenses, and INTERCEPT Blood System development Overview Cerus commercializes INTERCEPT Blood System for platelets/plasma, develops the red blood cell system, and relies on government funding and capital for growth - The INTERCEPT Blood System for platelets and plasma is marketed and sold globally, including the U.S. and Europe, with FDA approval and CE Certificates of Conformity121122 - The red blood cell system is currently in development and has not been commercialized; its MDR application in Europe was closed due to insufficient data on impurity profiles, requiring resubmission and ongoing product development costs123125 - For U.S. FDA approval of the red blood cell system, additional clinical trial data (beyond ReCePI and RedeS studies) is anticipated, with RedeS enrollment expected by end of 2025 and completion in H2 2026125 - The company relies on BARDA agreements for significant funding for the red blood cell system's development, but faces risks of funding reductions or delays, potentially requiring self-funding or additional capital126 - Commercialization of INTERCEPT Fibrinogen Complex (IFC) in the U.S. is dependent on blood center partners obtaining site-specific BLAs from the FDA, with delays impacting nationwide availability127128 Fresenius Fresenius manufactures INTERCEPT platelet and plasma systems; production delays could hinder Cerus's growth and increase costs - Fresenius is the sole manufacturer and supplier of disposable kits for the INTERCEPT platelet and plasma systems under an agreement until December 31, 2031138 - Delays in Fresenius qualifying and licensing new production facilities may adversely impact Cerus's ability to grow its platelet and plasma business139 Government contracts Cerus holds BARDA, FDA, and DoD contracts funding pathogen reduction R&D, subject to audits, termination, and cost restrictions - The 2016 BARDA Agreement provides up to $185.5 million in committed funding for red blood cell system development, but BARDA will no longer exercise unexercised options142143 - The 2024 BARDA Agreement offers up to $32.1 million in committed funding for its base period, with a total funding opportunity of $188.4 million if subsequent options are exercised, supporting FDA PMA application and improved red blood cell system development144 - A five-year agreement with the FDA for next-generation pathogen reduction compounds has a total contract value of $11.1 million145 - The DoD agreement for pathogen-reduced, lyophilized cryoprecipitate was amended to extend to February 2027 and increased to a total contract value of $17.8 million146 Equity Agreements Equity agreement details are provided in Note 8, Stockholders' Equity - Information on equity agreements is detailed in Note 8, Stockholders' Equity147 Debt Agreements Debt agreement details are provided in Note 5, Debt - Information on debt agreements is detailed in Note 5, Debt148 Critical Accounting Policies and Management Estimates Critical accounting policies and estimates remain consistent with the 2024 Annual Report on Form 10-K - Critical accounting policies and significant estimates have not substantially changed from the 2024 Annual Report on Form 10-K149 Results of Operations Cerus saw revenue growth and narrowed net loss in H1 2025, despite increased R&D and SG&A, with non-operating expenses impacted by foreign exchange Revenue Total revenue grew 19% to $60.1 million (Q2) and 16% to $109.0 million (H1) in 2025, driven by product and BARDA contract revenue Revenue (in thousands, except percentages) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Product revenue | $52,445 | $45,079 | $7,366 | 16% | $95,684 | $83,444 | $12,240 | 15% | | Government contract revenue | $7,684 | $5,440 | $2,244 | 41% | $13,298 | $10,470 | $2,828 | 27% | | Total revenue | $60,129 | $50,519 | $9,610 | 19% | $108,982 | $93,914 | $15,068 | 16% | - Product revenue growth was primarily due to increased sales volume of disposable platelet kits in Europe for the three-month period and to U.S. customers for the six-month period150 - Government contract revenue increased due to higher revenue from BARDA, particularly from the 2024 BARDA Agreement executed in Q4 2024151 Cost of Product Revenue Cost of product revenue increased, with gross margin at 55% (Q2) and 57% (H1), influenced by product mix and favorable variances Cost of Product Revenue (in thousands, except percentages) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Cost of product revenue | $23,470 | $20,413 | $3,057 | 15% | $41,285 | $37,506 | $3,779 | 10% | - Gross margin on product sales was 55% for the three months ended June 30, 2025 and 2024, and 57% for the six months ended June 30, 2025, up from 55% in the prior year154 - The increase in six-month gross margin was primarily due to capitalization of inventoriable charges and nonrecurring release of previously accounted for favorable variances154 Research and Development Expenses R&D expenses rose 26% (Q2) and 21% (H1) to $18.9 million and $35.5 million, driven by new illuminator, compensation, and BARDA activities Research and Development Expenses (in thousands, except percentages) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Research and development | $18,900 | $14,969 | $3,931 | 26% | $35,505 | $29,451 | $6,054 | 21% | - The increase was primarily driven by costs related to the new LED-based illuminator, increased compensation, and work performed related to BARDA agreements157 - Additional R&D costs are expected due to inflationary pressures, regulatory approvals for new products/geographies, and ongoing clinical development of the red blood cell system158 Selling, General and Administrative Expenses SG&A expenses increased 12% (Q2) and 7% (H1) to $21.2 million and $41.5 million, mainly due to higher compensation costs Selling, General and Administrative Expenses (in thousands, except percentages) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Selling, general and administrative | $21,182 | $18,973 | $2,209 | 12% | $41,468 | $38,772 | $2,696 | 7% | - The increase was primarily driven by increased compensation costs160 - Additional SG&A costs are expected due to inflationary pressures on labor and vendor costs, and escalating trade tensions and tariffs159 Non-Operating Expense, Net Non-operating expense, net, increased 11% (Q2) and 10% (H1) to $2.2 million and $4.0 million, driven by foreign exchange losses Non-Operating Expense, Net (in thousands, except percentages) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Foreign exchange (loss) gain | $(911) | $(77) | $(834) | 1,083% | $(1,198) | $68 | $(1,266) | (1,862%) | | Interest expense | $(2,150) | $(2,330) | $180 | (8%) | $(4,260) | $(4,564) | $304 | (7%) | | Other income, net | $845 | $412 | $433 | 105% | $1,451 | $864 | $587 | 68% | | Total non-operating expense, net | $(2,216) | $(1,995) | $(221) | 11% | $(4,007) | $(3,632) | $(375) | 10% | Foreign Exchange (Loss) Gain Foreign exchange losses occurred in Q2 and H1 2025, primarily due to Euro-U.S. dollar exchange rate fluctuations - Foreign exchange loss for the three months ended June 30, 2025, was $(911) thousand, compared to $(77) thousand in 2024163 - Foreign exchange loss for the six months ended June 30, 2025, was $(1,198) thousand, compared to a gain of $68 thousand in 2024163 - These fluctuations are primarily due to foreign exchange variations between the Euro and the U.S. dollar164 Interest Expense Interest expense decreased by 8% (Q2) and 7% (H1) due to lower interest rates on the Term Loan - Interest expense decreased by $180 thousand (8%) for the three months ended June 30, 2025, and by $304 thousand (7%) for the six months ended June 30, 2025163 - The decrease was primarily due to a decrease in interest rates on the Term Loan165 Other Income, net Other income, net, increased 105% (Q2) to $845 thousand and 68% (H1) to $1.451 million in 2025 - Other income, net, increased by $433 thousand (105%) for the three months ended June 30, 2025163 - Other income, net, increased by $587 thousand (68%) for the six months ended June 30, 2025163 Provision for Income Taxes Income tax expense was $76 thousand (Q2) and $150 thousand (H1) from the European subsidiary, with a U.S. deferred tax valuation allowance Provision for (benefit from) Income Taxes (in thousands, except percentages) | Period | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision for (benefit from) income taxes | $76 | $(56) | $132 | (236%) | $150 | $18 | $132 | 733% | - Tax expenses were primarily a result of the Cerus Europe B.V. subsidiary's activities167 - Substantially all U.S. deferred tax assets are subject to a valuation allowance due to cumulative operating losses168 Liquidity and Capital Resources Cerus's liquidity, totaling $79.2 million, relies on diverse capital sources, with operating cash flow shifting to negative due to inventory Cash, Cash Equivalents, Short-term Investments, and Restricted Cash (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $15,991 | $20,266 | | Short-term investments | $62,034 | $60,186 | | Restricted cash | $1,140 | $1,095 | | Total | $79,165 | $81,547 | Indebtedness (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Debt – current | $28,125 | $19,297 | | Debt – non-current | $56,766 | $64,862 | | Total | $84,891 | $84,159 | - Net cash used in operating activities was $(3,290) thousand for the six months ended June 30, 2025, compared to net cash provided of $2,360 thousand in the same period of 2024, primarily due to increased inventory purchases171 - Working capital decreased to $84,584 thousand at June 30, 2025, from $88,890 thousand at December 31, 2024, mainly due to increased accounts payable and accrued liabilities, and reclassification of long-term debt to short-term174 - The company believes its available cash, cash equivalents, short-term investments, and cash from product sales and government contracts will be sufficient for at least the next 12 months176 Commitments Financial commitments are detailed in Notes 5, 6, and 7; no off-balance sheet arrangements existed - Detailed information on commitments can be found in Note 5 (Debt), Note 6 (Leases), and Note 7 (Commitments and Contingencies)185 - The company did not have any off-balance sheet arrangements as of June 30, 2025186 Financial Instruments Investment policy prioritizes principal preservation and liquidity, with no credit losses recorded on Level 1 and Level 2 financial instruments - Cash and cash equivalents are invested in money market funds (Level 1)187 - Available-for-sale securities (corporate debt, U.S. government agency securities) are classified as Level 2187 - No credit losses were recorded during the three and six months ended June 30, 2025 and 2024187 Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes to market risk disclosures occurred during the six months ended June 30, 2025 - No material changes to market risk disclosures occurred during the six months ended June 30, 2025188 Item 4. Controls and Procedures Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting Evaluation of Disclosure Controls and Procedures CEO and CFO concluded disclosure controls and procedures were effective as of June 30, 2025 - CEO and CFO concluded that disclosure controls and procedures are effective as of June 30, 2025189 [Changes