6. Balance Sheet Components

Inventory, net

Inventory at December 31, 2025 and 2024 consisted of the following:


	December 31,
	2025			2024
(in thousands)
Raw materials	$	2,041		$	1,850
Work in process		7,236			7,407
Accumulated provision for inventory obsolescence		(2,000	)		—
Work in process, net		5,236			7,407
Finished goods		1,322			1,088
Total inventory, net	$	8,599		$	10,345

Inventory provisions as a result of excess inventory or obsolescence are recorded as a component of cost of sales in the consolidated statements of operations. For the years ended December 31, 2025 and 2024, inventory provisions were $2.0 million and $0, respectively.

Property and Equipment, net

Property and equipment at December 31, 2025 and 2024 consisted of the following:


	December 31,
	2025			2024
(in thousands)
Land	$	396		$	396
Lab equipment		477			477
Software		63			63
Furniture and fixtures		62			18
Computers and peripherals		23			23
Total property and equipment at cost		1,021			977
Accumulated depreciation		(558	)		(513	)
Property and equipment, net	$	463		$	464

Depreciation and amortization expense was $45,000 and $48,000 for the years ended December 31, 2025 and 2024, respectively.

Intangible assets, net

Intangible assets consisted of the following:


	December 31,
	2025			2024
(in thousands)
Developed technology	$	25,000		$	25,000
Accumulated developed technology amortization		(14,028	)		(12,361	)
Developed technology, net		10,972			12,639
In-process research and development		4,800			4,800
Accumulated in-process research and development impairment		(800	)		—
In process research and development, net		4,000			4,800
Trademarks		300			300
Accumulated trademark amortization		(168	)		(148	)
Trademarks, net		132			152
Internal use software costs - registry		1,237			1,237
Accumulated internal use software costs impairment		(371	)		(371	)
Accumulated internal use software costs amortization		(653	)		(512	)
Internal use software costs - registry, net		213			354
Patents		569			361
Accumulated patents amortization		(54	)		(36	)
Patents, net		515			325
License		217			215
Accumulated license amortization		(28	)		(6	)
License, net		189			209
Total intangible assets, net	$	16,021		$	18,479

Amortization expense of finite-lived intangible assets was approximately $1.9 million and $1.9 million for the years ended December 31, 2025 and 2024, respectively.

During 2025, in connection with its annual impairment assessment of the Company’s in-process research and development (“IPR&D”) assets, consisting of crofelemer for IBS and PEDS, the Company determined that the combined estimated fair value of these IPR&D programs was less than their carrying amount of $4.8 million. Based on this evaluation, the Company estimated the fair value of the IPR&D assets to be $4.0 million. Accordingly, for the year ended December 31, 2025, the Company recognized an impairment loss of $800,000.

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2025:


(in thousands)		Amounts
2026	$		1,823
2027			1,823
2028			1,823
2029			1,823
2030			1,823
Thereafter			2,906
	$		12,021

Accrued Liabilities

Accrued liabilities at December 31, 2025 and 2024 consisted of the following:


	December 31,
(in thousands)	2025		2024
Accrued customer credits	$	1,055	$	—
Accrued legal costs		829		34
Accrued chargebacks and discounts		641		572
Accrued vacation		357		393
Accrued share of joint venture losses		351		189
Accrued in-transit payable		328		344
Accrued payroll and commission		263		133
Accrued royalties		134		34
Accrued audit and tax services		81		100
Accrued local tax		12		13
Accrued payroll tax		6		1
Accrued interest		5		4
Accrued other		104		94
Total	$	4,166	$	1,911

Other accrued liabilities as of December 31, 2025 and 2024 mainly consist of consultancy fees, contract fees and scientific advisory board fees.

Jaguar Health, Inc. 10-K