BeyondSpring(BYSI) - 2025 Q4 - Annual Report

Financial Performance - As of December 31, 2025, total assets decreased to $25,933,000 from $34,315,000 in 2024, representing a decline of approximately 24%[753] - The net loss attributable to BeyondSpring Inc. decreased to $1,006,000 in 2025 from $11,123,000 in 2024, reflecting a reduction of about 91%[755] - The total shareholders' deficit increased to $23,990,000 in 2025 from $14,285,000 in 2024, an increase of approximately 68%[753] - The company reported a loss from discontinued operations of $12,488,000 in 2025, compared to $7,828,000 in 2024, which is an increase of about 60%[755] - Basic and diluted loss per share improved to $0.02 in 2025 from $0.28 in 2024, showing a significant reduction in loss per share[755] - BeyondSpring Inc. reported a net loss of $16.693 million for the year ended December 31, 2024, and a net loss of $14.217 million for 2025, indicating a decrease in losses of approximately 8.8% year-over-year[762] - The company incurred $2.255 million in share-based compensation in 2024, which decreased to $722,000 in 2025, a reduction of 68.0%[762] - For the year ended December 31, 2025, the consolidated net loss was $14,217,000, a decrease from $16,693,000 in 2024[920] Cash and Liquidity - Cash and cash equivalents increased to $7,786,000 in 2025 from $2,922,000 in 2024, marking a growth of about 167%[753] - The total cash and cash equivalents from continuing operations at the end of 2025 were $7.786 million, up from $2.922 million at the end of 2024, representing a 167.5% increase[762] - Cash used in operating activities increased to $19.769 million in 2025 from $16.443 million in 2024, reflecting a 20.5% rise in cash outflows[762] - The company’s cash and cash equivalents as of December 31, 2025, were $4,352 million, down from $13,125 million in 2024[841] Liabilities and Shareholder Equity - Total current liabilities increased to $13,576,000 in 2025 from $11,010,000 in 2024, representing a rise of approximately 23%[753] - The total liabilities for the company were $14,899 million as of December 31, 2025, slightly down from $15,010 million in 2024[841] - Total current liabilities increased from $8,813 million in 2024 to $11,133 million in 2025, reflecting a rise of approximately 26.3%[841] Research and Development - Research and development expenses rose to $4,388,000 in 2025, up from $2,644,000 in 2024, indicating an increase of approximately 66%[755] - The company’s research and development expenses increased from $7,503 million in 2024 to $10,853 million in 2025, marking a rise of approximately 44.5%[844] - Clinical and pre-clinical expenses increased from $462,000 in 2024 to $1,630,000 in 2025[920] Revenue and Recognition - The company had no revenue reported for both 2024 and 2025, maintaining a consistent revenue position[755] - The Company recognizes revenue under ASC 606 when control of promised goods or services is obtained by the customer[804] - Collaboration arrangements are assessed under ASC 808 to determine the appropriate revenue recognition method[807] - The Company recognizes revenue from non-refundable upfront fees for licenses at the point in time when the license is transferred to the licensee[810] - The Lilly Collaboration Agreement resulted in recognized collaboration revenue of $2,001 million for both years ended December 31, 2024 and 2025[853] Asset Management - The company reported a decrease in depreciation expenses from $285,000 in 2024 to $87,000 in 2025, a decline of 69.5%[762] - The total long-lived assets of continuing operations decreased from $239,000 in 2024 to $166,000 in 2025[920] - Property and equipment, net, decreased from $239 million in 2024 to $166 million in 2025, a decline of approximately 30.5%[854] Shareholder Information - BeyondSpring Inc. has a total of 41,122,320 ordinary shares outstanding as of December 31, 2025, reflecting an increase from 40,316,320 shares at the end of 2024[765] - The total fair value of share options vested during 2024 was $1,412 million and decreased to $246 million in 2025[876] - As of December 31, 2025, the company had 2,731,806 share options outstanding with a weighted average exercise price of $5.01[875] - The intrinsic value of share options as of December 31, 2025 was $514 million[875] Strategic Initiatives - The Company operates in two reportable segments: Plinabulin pipeline and Targeted Protein Degradation (TPD) platform, with a focus on innovative cancer therapies[801] - On December 13, 2024, the Company approved a divestiture plan to sell 90% to 100% of its interests in SEED, qualifying the TPD platform for discontinued operations reporting[802] - The Company plans to divest approximately 90% to 100% of its interests in SEED, reflecting a strategic shift to optimize resources towards higher potential pipelines[836] - The divestiture of SEED will result in all assets and liabilities being classified as held-for-sale in the consolidated balance sheet as of December 31, 2024, and 2025[836] Taxation - The Company evaluates uncertain tax positions based on ASC 740, recognizing tax benefits that are "more likely than not" to be sustained[817] - The Company uses the liability method for accounting income taxes, with deferred tax assets and liabilities classified as non-current on the balance sheets[816] - The total deferred tax assets increased from $58,995 million in 2024 to $61,321 million in 2025[863] - The company recorded a valuation allowance against deferred tax assets of $57,812 million in both 2024 and 2025, indicating no change[863] Miscellaneous - The Company has not experienced any losses on cash and cash equivalents or short-term investments to date, indicating effective risk management[823] - The Series A-2 Preferred Shares redemption rights were removed on July 26, 2024, reclassifying them from mezzanine equity to permanent equity[909] - The Series A-3 Preferred Shares were classified as permanent equity due to the absence of non-controllable redemption features[911] - Wanchunbulin, a subsidiary, has committed to specific local authorities in PRC until 2033 under a government grant agreement[913]