Cash and Cash Equivalents

The Company’s cash and cash equivalents consisted of the following (in thousands):


	March 31,		December 31,
	2025		2024
Cash	$	8,073	$	5,355
Cash equivalents:
Money market funds		4,101		4,798
Corporate debt		1,198		1,197
Total cash and cash equivalents	$	13,372	$	11,350

Marketable Securities

The Company's available-for-sale marketable securities consisted of the following (in thousands):


	March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities–short-term
U.S. treasury and government agencies	$	13,508	$	9	$	(2	)	$	13,515
Commercial paper		—		—		—			—
Corporate debt		26,419		39		(2	)		26,456
Asset-backed securities		16,661		17		(4	)		16,674
Yankee CD		6,072		—		—			6,072
Total marketable securities–short-term	$	62,660	$	65	$	(8	)	$	62,717


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities—short-term
U.S. treasury and government agencies	$	9,998	$	10	$	—		$	10,008
Commercial paper		495		—		—			495
Corporate debt		32,216		55		(2	)		32,269
Asset-backed securities		14,747		35		(1	)		14,781
Yankee CD		6,774		—		—			6,774
Total marketable securities—short-term	$	64,230	$	100	$	(3	)	$	64,327

As of March 31, 2025, there were no available-for-sale securities with unrealized losses greater than 12 months. There was not an allowance for credit losses required for available-for-sale securities as of March 31, 2025 and December 31, 2024.

As of March 31, 2025, the Company had no plans to sell securities with unrealized losses, and believes it is more likely than not that it would not be required to sell such securities before recovery of their amortized cost. For the three months ended March 31, 2025 and 2024, there were no material gains or losses from sales of available-for-sale securities.

As of March 31, 2025 and December 31, 2024, accrued interest of $0.6 million and $0.6 million, respectively, is excluded from the amortized cost basis of available-for-sale securities in the tables above and is recorded in prepaid expenses and other current assets on the Condensed Balance Sheets.

As of March 31, 2025, all marketable securities mature within two years, except for asset-backed securities. Asset-backed securities are not due at a single maturity date. As such, these securities were not included.

Property and equipment, net

The Company’s property and equipment, net consisted of the following (in thousands):


	March 31,			December 31,
	2025			2024
Furniture and fixtures	$	2,565		$	2,565
Construction in progress		520			612
Machinery and equipment		3,285			3,081
Capitalized surgical equipment1		25,374			22,669
Computer equipment		1,201			1,160
Leasehold improvements		10,738			10,244
Software and website development		1,000			927
Total property and equipment		44,683			41,258
Less: accumulated depreciation and amortization		(17,554	)		(15,305	)
Property and equipment, net	$	27,129		$	25,953

1 Capitalized surgical equipment includes $20.9 million and $18.5 million that is ready for its intended use and have started depreciating and $4.5 million and $4.4 million that is not ready for its intended use and have not started depreciating as of March 31, 2025 and December 31, 2024, respectively.

Depreciation and amortization expense on property and equipment was $2.2 million and $1.7 million for the three months ended March 31, 2025 and 2024, respectively.

The Company did not record impairment charges for its property and equipment, net for the three months ended March 31, 2025 and 2024.

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	March 31,		December 31,
	2025		2024
Accrued royalties expense	$	1,836	$	2,259
Accrued interest		427		420
Accrued professional services		566		337
Accrued compensation expense for RPM-3D earn-out1		—		2,125
Other accrued expense		3,179		2,056
Total accrued liabilities	$	6,008	$	7,197

1 On June 12, 2023, the Company acquired certain assets of MIOS Marketing, LLC d/b/a RedPoint Medical3D ("RPM-3D") that included an earn-out payment related to the technological advancements and patent milestones, which was paid on January 15, 2025.

Other liabilities

Other liabilities consist of the following (in thousands):


	March 31,		December 31,
	2025		2024
Current portion of operating lease liabilities	$	2,031	$	413
Short-term debt1		45		—
Other		154		97
Total other liabilities	$	2,230	$	510

l See Note 6, "Long-Term Debt," for information regarding the legal cost financing related to the lawsuit against Stryker Corporation and its subsidiary Wright Medical Technology, Inc. The short-term debt is the total amount financed as of March 31, 2025 and reflects the amount that may be called within the next twelve months.

TREACE MEDICAL CONCEPTS, INC. 10-Q