Cash and Cash Equivalents

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


	September 30,		December 31,
	2025		2024
Cash	$	5,161	$	5,355
Cash equivalents:
Money market funds		2,525		4,798
Corporate debt		—		1,197
Total cash and cash equivalents	$	7,686	$	11,350

Marketable Securities

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


	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable securities—short-term
U.S. treasury and government agencies	$	10,218	$	10	$	—	$	10,228
Corporate debt		23,934		55		—		23,989
Asset-backed securities		12,145		18		—		12,163
Yankee CD		3,350		—		—		3,350
Total marketable securities—short-term	$	49,647	$	83	$	—	$	49,730


	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 September 30, 2025, there were no available-for-sale securities with unrealized losses greater than 12 months. An allowance for credit losses was not required for available-for-sale securities as of September 30, 2025 and December 31, 2024.

As of September 30, 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 and nine months ended September 30, 2025 and 2024, there were no material gains or losses from sales of available-for-sale securities.

As of September 30, 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 September 30, 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):


	September 30,			December 31,
	2025			2024
Furniture and fixtures	$	2,565		$	2,565
Construction in progress		896			612
Machinery and equipment		3,712			3,081
Capitalized surgical equipment1		31,541			22,669
Computer equipment		1,226			1,160
Leasehold improvements		10,580			10,244
Software and website development		1,227			927
Total property and equipment		51,747			41,258
Less: accumulated depreciation and amortization		(21,777	)		(15,305	)
Property and equipment, net	$	29,970		$	25,953

1 Capitalized surgical equipment includes $25.2 million and $18.3 million that is ready for its intended use and have started depreciating and $6.3 million and $4.4 million that is not ready for its intended use and have not started depreciating as of September 30, 2025 and December 31, 2024, respectively.

Depreciation and amortization expense on property and equipment was $2.5 million and $1.9 million for the three months ended September 30, 2025 and 2024, respectively. Depreciation and amortization expense on property and equipment was $7.1 million and $5.5 million for the nine months ended September 30, 2025 and 2024, respectively.

The Company did not record impairment charges for its property and equipment, net for the nine months ended September 30, 2025 and 2024.

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	September 30,		December 31,
	2025		2024
Accrued royalties expense	$	1,688	$	2,259
Accrued interest		413		420
Accrued professional services		2,694		337
Accrued compensation expense for RPM-3D earn-out1		—		2,125
Other accrued expense		2,520		2,056
Total accrued liabilities	$	7,315	$	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):


	September 30,		December 31,
	2025		2024
Current portion of operating lease liabilities	$	2,115	$	413
Short-term debt1		1,798		—
Other		190		97
Total other liabilities	$	4,103	$	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. Short-term debt includes $0.8 million in financed legal costs as of September 30, 2025 and reflects the amount that may be called within the next twelve months. In addition, short-term debt includes $1.0 million of insurance premiums payable over the next nine months.

TREACE MEDICAL CONCEPTS, INC. 10-Q