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INCOME TAX EXPENSE (Details) - USD ($)		12 Months Ended			132 Months Ended
INCOME TAX EXPENSE (Details) - USD ($)	Jan. 01, 2008	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2025
INCOME TAX EXPENSE
Income tax rate (as a percent)		25.00%	25.00%	25.00%
Provision for income taxes		$ (297,860)	$ (17,553)	$ 1,691,408
Net operating losses		$ 158,248,572			$ 158,248,572
Adagene (Suzhou) Limited
INCOME TAX EXPENSE
Preferential tax rate (as a percent)					15.00%
PRC
INCOME TAX EXPENSE
Income tax rate (as a percent)	25.00%
Dividends withholding tax rate		10.00%
Net operating losses		$ 36,213,678			$ 36,213,678
PRC \| TASE
INCOME TAX EXPENSE
Preferential tax rate (as a percent)	15.00%
Effective period of TASE certificate (in years)	3 years
Hong Kong
INCOME TAX EXPENSE
Income tax rate (as a percent)		16.50%
Withholding tax		$ 0	0	0	0
Net operating losses		6,706,712			6,706,712
Hong Kong \| Adagene (Hong Kong) Limited
INCOME TAX EXPENSE
Provision for income taxes		0	0	0
Assessable profits or earnings		$ 0	0	0
Australia
INCOME TAX EXPENSE
Income tax rate (as a percent)		30.00%
Dividends withholding tax rate		30.00%
Net operating losses		$ 15,364,780			15,364,780
Australia \| Adagene Australia PTY Ltd.
INCOME TAX EXPENSE
Provision for income taxes		0	0	0
Taxable Income		$ 0	$ 0	$ 0
United States
INCOME TAX EXPENSE
Dividends withholding tax rate		30.00%
State income tax rate (as a percent)		21.00%
Net operating losses		$ 92,372,106			92,372,106
California
INCOME TAX EXPENSE
State income tax rate (as a percent)		8.84%
SWITZERLAND
INCOME TAX EXPENSE
Income tax rate (as a percent)		8.50%
Dividends withholding tax rate		35.00%
Net operating losses		$ 4,926,821			4,926,821
SWITZERLAND \| Adagene AG
INCOME TAX EXPENSE
Income tax rate (as a percent)		6.50%
Capital tax rate for Canton of Basel		0.10%
SINGAPORE
INCOME TAX EXPENSE
Net operating losses		$ 2,595,838			$ 2,595,838

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value measurements (Details)	12 Months Ended
	Dec. 31, 2025 USD ($)
Warrant Liabilities Roll Forward
Balance at the beginning	$ 253,087
Fair value change	$ (47,941)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Fair Value Adjustment of Warrants
Balance at the end	$ 205,146

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). References to specific GAAP principles throughout these notes to the accompanying financial statements are to the Accounting Standards Codification (“ASC”), as published by the U.S. Financial Accounting Standards Board (“FASB”).

Principles of Consolidation

The consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, licensing and collaboration revenue recognition, research and development expense allocation, the useful lives and impairment of long-lived assets, tax valuation allowance, share-based compensation expenses, measurement of right-of-use assets and lease liabilities, and the fair value of warrant liabilities. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.

Foreign currency translation

The functional currency of the Company, Adagene (Hong Kong) Limited, Adagene Incorporated, Adagene PTE. Ltd. and Adagene Project C1 PTE. Ltd. is the United States dollar (“US$”). The functional currency of the Company’s PRC subsidiary is Renminbi (“RMB”). The functional currency of the Company’s Australian subsidiary is Australian dollar (“AU$”). The functional currency of the Company’s Swiss subsidiary is Swiss Franc (“CHF”). The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The Company uses US$ as its reporting currency. The financial statements of the Company’s PRC, Australian and Swiss subsidiaries are translated from the functional currencies to the reporting currency.

Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss.

Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as accumulated comprehensive gain (loss) and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive loss.

Cash and cash equivalents

Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.

Short-term investments

Short-term investments consist primarily of investments in money market funds, which are measured at fair value and are expected to be redeemed within one year. As of December 31, 2024 and 2025, there were no short-term investments held by the Group.

Accounts receivable and allowance for doubtful accounts

Account receivable, if any, is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. Accounts receivable is carried at net realizable value. The allowance for credit losses reflects the best estimate of future losses over the contractual life of outstanding accounts receivable and is determined on the basis of historical experience, specific allowances for known troubled accounts, other currently available information including customer financial condition, and both current and forecasted economic conditions.

Fair value measurements

The Group applies ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided for fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying amounts of cash and cash equivalent, amounts due to related parties and other current assets, accounts payable, amounts due to related parties, accrued liabilities and other current liabilities and short-term borrowings approximate their fair values because of their generally short maturities. The carrying amount of long-term borrowings approximates their fair values since they bear interest rates which approximate market interest rates.

As more fully described in Note 10, the Group has issued warrants to purchase its ordinary shares. The Group measured its warrant liabilities at fair value on a recurring basis. As the Group’s warrants are not traded in an active market with readily observable prices, the Group uses significant unobservable inputs to measure the fair value of warrant liabilities. Refer to Note 10 for a detailed description of the inputs used. The warrant liabilities are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement.

The following table presents a reconciliation of all financial instruments measured at fair value on a recurring basis using Level 3 unobservable inputs:


		Warrant liabilities
		US$
Initial recognition during the year ended December 31, 2025		253,087
Fair value change		(47,941)
Balance as of December 31, 2025		205,146

Property, equipment and software

Property and equipment and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows:


Category		Estimated Useful Life
Machinery and laboratory equipment		5 years
Vehicles		4 years
Furniture and tools		3 - 5 years
Electronic equipment		3 years
Computer software		3 - 5 years
Leasehold improvements		Lesser of lease terms or estimated useful lives of the assets

Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation and amortization from the asset and accumulated depreciation and amortization accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss.

Impairment of long-lived assets

The Group evaluates the recoverability of its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The adjusted carrying amount of the assets is the new cost basis and is depreciated over the assets’ remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

No impairment loss was recorded for the years ended December 31, 2023, 2024 and 2025.

Revenue recognition

At contract inception of collaboration and out-licensing arrangements, the Group analyzes its arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Group first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are reflective of a vendor-customer relationship and therefore within the scope of ASC 606, Revenue from Contracts with Customers (“ASC 606”). For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently. Under the criteria of ASC 606, the Group recognizes revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services.

The Group adopted ASC 606 for all periods presented. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the entity will collect substantially all the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. The Group reviews the contract to determine which performance obligations are distinct and represent a promise to provide distinct goods or services or a series of distinct goods or services as defined by the standard. The Group recognizes as revenue the amount of the transaction price that is allocated to each performance obligation as and when that performance obligation is satisfied.

Licenses of Intellectual Property: Upfront non-refundable payments for licensing the Group’s intellectual property are evaluated to determine if the license is distinct from the other performance obligations identified in the arrangement. For licenses determined to be distinct, the Group recognizes revenues from non-refundable, up-front fees allocated to the license at a point in time, when the transfer of control of the license to the licensee occurs and the licensee is able to use and benefit from the license. For licenses determined not to be distinct, the Group accounts for the promise to grant a license and those other promised goods or services together as a single performance obligation when recognizing revenue.

Research and Development Services: The portion of a transaction price allocated to research and development services performance obligations is deferred and recognized as collaboration revenue over time as delivery or performance of such services occurs.

Milestone Payments: At the inception of each arrangement that includes development, commercialization, and regulatory milestone payments, the Group evaluates whether the milestones are considered probable of being reached and to the extent that a significant reversal of cumulative revenue would not occur in future periods, estimates the amount to be included in the transaction price using the most likely amount method. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Group recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Group re-evaluates the probability of achieving such development milestones and any related constraint, and if necessary, adjust the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment.

Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Group recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Contract assets and contract liabilities

When a customer pays consideration before the Group transfers products or services, the Group records its obligation as a contract liability; When the Group satisfies its performance obligations by providing products or services to a customer before the customer pays consideration and before payment is due, the Group recognizes its rights to consideration as a contract asset.

Other operating income, net

Other operating income, net for the year ended December 31, 2023 included a one-time compensation payment from a contract manufacturer in relation to company losses for a preclinical-related outsourcing arrangement.

Research and development expenses

Elements of research and development expenses primarily include (1) payroll and other related costs of personnel engaged in research and development activities, (2) costs related to pre-clinical testing of the Group’s technologies under development and clinical trials such as payments to contract research organizations (“CRO”) and contract development and manufacturing organizations (“CDMO”), investigators and clinical trial sites that conduct the clinical studies; (3) costs to develop the product candidates, including raw materials and supplies, product testing, depreciation and amortization, and facility related expenses, and (4) other research and development expenses. Research and development costs are expensed as incurred when the related research and development services are provided to the Group and the resulting assets, if any, have no alternative future uses. As of December 31, 2024 and 2025, the Group had several ongoing clinical studies in various clinical trial stages. The contracts with CRO and CDMO are generally cancellable, with notice, at the Group’s option. The Group did not record any accrued expenses related to cancellation of CRO or CDMO contracts as of December 31, 2024 or 2025 as the Group did not have any plan to cancel the existing CRO or CDMO contracts.

Government subsidies

Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the governments. The Group’s PRC based subsidiary received government subsidies from certain local government. The Group’s government subsidies consist of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has set certain conditions for the subsidies. Other subsidies are the subsidies that the local government has not set any conditions and are not tied to future trends or performance of the Group, receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. These specific subsidies are recorded as other non-current liabilities upon receipt and are recognized as other income when the conditions are met. Other subsidies are recognized as other income upon receipt as further performance by the Group is not required. In addition, the Group’s Australian subsidiary received research and development tax incentive from the Australian Taxation Office in 2023. The tax incentive was recognized as other income upon receipt as the incentive was not dependent upon having a tax liability and further performance by the Group was not required. No such cash tax incentive was received from the Australian Taxation Office in the years ended December 31, 2024 and 2025.

Government cash subsidies of US$1.5 million, US$0.3 million and US$0.2 million were received and recognized as other income during the years ended December 31, 2023, 2024 and 2025, respectively.

Leases

In accordance with ASC 842, Leases (“ASC 842”), the Group determines if an arrangement is or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheet. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. The Group does not have any finance leases since the adoption date.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. As the rate implicit in the Group’s leases is not typically readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Group could borrow the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise that option.

The Group has elected to adopt the following lease policies (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Group elected not to apply ASC 842 recognition requirements; and (iii) the Group elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2022 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification.

Comprehensive income (loss)

Comprehensive income (loss) is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income (loss) of the Group includes foreign currency translation adjustments related to the Group and its subsidiaries whose functional currency is not US$.

Income taxes

The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.

The Group evaluates its uncertain tax positions using the provisions of ASC 740, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the consolidated financial statements.

The Group recognizes in the consolidated financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Group’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense.

Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statements of comprehensive loss over the period of the borrowings using the effective interest method.

Share-based compensation

The Company grants restricted shares and stock options to eligible employees and nonemployees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

Share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; (b) for share-based awards granted with only service conditions, using the straight-line method over the vesting period; or (c) for share-based awards granted with service conditions and performance conditions, using the graded vesting method over the vesting period if and when the Company concludes that it is probable that the performance conditions will be achieved.

A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation expense of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original awards over the remaining requisite service period after modification.

Net loss per share

In accordance with ASC 260, Earnings Per Share, basic net loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of unrestricted ordinary shares outstanding during the year using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. Diluted net loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares include ordinary shares issuable upon the conversion of the contingently redeemable convertible preferred shares using the if-converted method, and ordinary shares issuable upon the exercise of share options and warrants using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects are anti-dilutive. For the periods presented herein, the computation of basic net loss per share using the two-class method is not applicable as the Group does not have participating securities that have contractual rights and obligations to share in the losses of the Group.

Employee defined contribution plan

As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid. The Group recorded employee benefit expenses of US$2,584,392, US$2,092,412 and US$1,810,503 for the years ended December 31, 2023, 2024 and 2025, respectively.

Concentration of risks

Concentration of credit risk

As of December 31, 2024 and 2025, the amount of cash and cash equivalents of US$3,020,953 and US$8,327,345 respectively, were held at major financial institutions located in Mainland China, and US$82,173,549 and US$66,196,437, respectively, were deposited with major financial institutions located outside of Mainland China. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions.

Accounts receivable, if any, is typically unsecured and denominated in US$ and/or RMB and is derived from revenues earned from customers. The Group manages credit risk of accounts receivable through ongoing monitoring of the outstanding balances.

Concentration of suppliers

For the year ended December 31, 2023, there were no suppliers who collectively accounted for more than 10% of the Group’s total research and development services. For the year ended December 31, 2024 and 2025, a significant portion of the Group’s research and development services was purchased from one supplier group, who collectively accounted for 17.2% and 17.4% of the Group’s total research and development services purchases, respectively.

Business and economic risk

The Group believes that changes in any of the following areas could have a material adverse effect on the Group’s future consolidated financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Group’s ability to attract employees necessary to support its growth. The Group’s operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the PRC.

Foreign currency exchange rate risk

A significant portion of the Group’s businesses are transacted in RMB, which is not a freely convertible currency. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the PBOC. However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.

From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For U.S. dollar against RMB, there was appreciation of approximately 1.5% and depreciation of approximately 2.2% in the years ended December 31, 2024 and 2025, respectively. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future.

The functional currency and the reporting currency of the Company are the US$. However, the Group incurs portions of our expenses, and derives revenues, in currencies other than US$, in particular, the RMB. Any significant fluctuation of the valuation of RMB may materially affect the Group’s cash flows, expenses, losses and financial position, and the value of any dividends payable on the American Depositary Shares in US$.

Recently issued accounting pronouncements

The Group is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition periods. However, this election will not apply should the Group cease to be classified as an EGC.

New and amended standards not yet adopted by the Group

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The standard is effective for public entities for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The standard allows the amendments to be applied on a prospective basis or a retrospective basis. The Group has evaluated the impact of this accounting standard update on its consolidated financial statements and decided to apply this standard update on a prospective basis. The Group assessed the impact of the adoption to be immaterial.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The standard allows the amendments to be applied on a prospective basis or a retrospective basis. In January 2025, the FASB issued ASU 2025-01, which revises the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group is currently in the process of evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (“ASU 2025-10”), which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The standard provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the asset’s cost basis. The standards also require enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-10.

ORGANIZATION AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2025

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

Adagene Inc. (the “Company”) is a limited liability company incorporated in the Cayman Islands on February 25, 2011. The Company, together with its subsidiaries (collectively, the “Group”), are principally engaged in research, development and production of monoclonal antibody drugs for cancers. The shares of the Company’s American Depositary Shares (“ADSs”) are traded on the NASDAQ Global Market, and each ADS represents one and one quarter (1.25) ordinary shares of the Company.

As of December 31, 2025, the Company’s principal subsidiaries are as follows:


						Percentage of legal
		Date of		Place of		ownership
Entity		incorporation		incorporation		by the Company		Principal activities
Adagene (Hong Kong) Limited		December 12, 2011		Hong Kong		100	%	Investment holding, and research and development of innovative medicines
Adagene Incorporated		September 20, 2017		The United States of America		100	%	Research and development of innovative medicines
Adagene (Suzhou) Limited		February 28, 2012		The People’s Republic of China (“PRC” or “China”)		100	%	Research and development of innovative medicines
Adagene Australia PTY Ltd.		May 30, 2018		Australia		100	%	Research and development of innovative medicines
Adagene PTE. Ltd.		March 27, 2020		Singapore		100	%	Research and development of innovative medicines
Adagene AG		August 31, 2020		Switzerland		100	%	Research and development of innovative medicines
Adagene Project C1 PTE. Ltd.		March 25, 2022		Singapore		100	%	Research and development of innovative medicines

LEASES - Information related to operating lease activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Operating lease rental expense
Amortization of right-of-use assets	$ 142,238	$ 203,298	$ 216,305
Expense for short-term leases within 12 months	53,661	23,734	13,514
Interest of lease liabilities	8,689	12,613	12,100
Total operating lease rental expense	$ 204,588	$ 239,645	$ 241,919

SHARE-BASED COMPENSATION - Share Option Activities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Number of Options
Outstanding at the beginning	9,847,240	8,766,882	6,286,912
Granted (in shares)	3,624,440	3,925,945	3,442,500
Exercised (in shares)	(86,469)	(185,620)	(10,000)
Forfeited (in shares)	(968,857)	(483,022)	(952,530)
Cancelled (in shares)		(2,176,945)
Outstanding at the end	12,416,354	9,847,240	8,766,882	6,286,912
Vested and expected to vest at the end	12,416,354
Exercisable at the end	5,319,029	3,440,384
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)	$ 2.55	$ 3.39	$ 4.8
Granted (in dollars per share)	1.4	1.68	1.14
Exercised (in dollars per share)	0.94	1.02	0.55
Forfeited (in dollars per share)	2.95	6.13	4.59
Cancelled (in dollars per share)		3.68
Outstanding at the end (in dollars per share)	2.2	2.55	3.39	$ 4.8
Vested and expected to vest at the end (in dollars per share)	2.2
Exercisable at the end (in dollars per share)	3.21	4.27
Weighted Average Grant Date Fair Value
Outstanding at the beginning (in dollars per share)	2.49	3.6	5.16
Granted (in dollars per share)	0.87	1.04	0.72
Exercised (in dollars per share)	0.98	2.49	5.72
Forfeited (in dollars per share)	4.03	4.28	3.45
Cancelled (in dollars per share)		3.96
Outstanding at the end (in dollars per share)	1.91	2.49	$ 3.6	$ 5.16
Vested and expected to vest at the end (in dollars per share)	1.91
Exercisable at the end (in dollars per share)	$ 3.24	$ 5.15
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Outstanding (in years)	8 years 10 days	8 years 4 months 9 days	8 years 2 months 26 days	8 years 5 months 8 days
Vested and expected to vest at the end (in years)	8 years 10 days
Exercisable at the end (in years)	6 years 10 months 20 days	6 years 5 months 26 days
Outstanding at the beginning (in dollars)	$ 1,736,202	$ 2,011,843	$ 94,990
Outstanding at the end (in dollars)	1,660,307	1,736,202	$ 2,011,843	$ 94,990
Vested and expected to vest at the end (in dollars)	1,660,307
Exercisable at the end (in dollars)	$ 759,799	$ 616,539

WARRANT LIABILITIES - Warrant Liability Activity (Details)	12 Months Ended
	Dec. 31, 2025 $ / shares shares
WARRANT LIABILITIES
Granted \| shares	10,000,000
Ending Balance \| shares	10,000,000
Exercisable \| shares	5,000,000
Granted (in US$ per Ordinary Share) \| $ / shares	$ 4
Ending Balance (in US$ per Ordinary Share) \| $ / shares	4
Exercisable (in US$ per Ordinary Share) \| $ / shares	$ 4
Weighted Average Remaining Life (in years)	2 years 7 months 2 days
Exercisable (in years)	2 years 6 months 3 days

ATM OFFERING (Details) - ATM Offering - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Mar. 31, 2024
ATM OFFERING
Aggregate ordinary shares reserved for issuance			41,250,000
Shares issued (in shares)		3,130,862
American depositary shares
ATM OFFERING
Aggregate offering price			$ 100
Aggregate ordinary shares reserved for issuance			33,000,000
Shares issued (in shares)	0	2,504,692

INCOME TAX EXPENSE - Income tax reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
INCOME TAX EXPENSE
Loss before income tax	$ (17,907,273)	$ (33,441,664)	$ (17,254,962)
PRC statutory income tax rate	25.00%	25.00%	25.00%
Income tax credit computed at PRC statutory income tax rate	$ (4,476,817)	$ (8,360,416)	$ (4,313,740)
Impact of PRC preferential income tax rate as qualified TASE	1,790,727	3,344,166	1,725,496
Difference in income tax rates of overseas entities	3,146,473	2,665,263	(1,012,031)
Research and development super-deduction	(386,799)	(639,650)	(693,340)
Research and development tax credits	(537,086)	(756,757)	(668,854)
Non-deductible expenses	6,081	6,721	7,241
Foreign derived intangible income deduction	(97,431)		(394,979)
Changes in valuation allowance	86,877	3,747,543	7,064,573
State tax	111,831	(25,113)	(22,363)
Others	58,284	690	(595)
Income tax expense (benefit)	$ (297,860)	$ (17,553)	$ 1,691,408

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, equipment and software (Details)	Dec. 31, 2025
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	us-gaap:UsefulLifeTermOfLeaseMember
Machinery and laboratory equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	5 years
Vehicles
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	4 years
Furniture and tools \| Minimum
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	3 years
Furniture and tools \| Maximum
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	5 years
Electronic equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	3 years
Software \| Minimum
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	3 years
Software \| Maximum
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Estimated Useful Life	5 years

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2025

SEGMENT INFORMATION

SEGMENT INFORMATION

7. SEGMENT INFORMATION

The Group’s principal business activities are related to the discovery and development of novel antibody-based cancer medicines. The Group manages the business activities on a consolidated basis and operates in one reportable segment. The determination of a single reportable segment is consistent with the consolidated financial information regularly provided to the Group’s chief operating decision maker (“CODM”), which is its Chief Executive Officer, who reviews and evaluates consolidated net income (loss) for purposes of assessing performance, making operating decisions, allocating resources and planning and forecasting for future periods. The accounting policies of the segment are the same as those described in the summary of significant accounting policies for the Group. Refer to Note 2 for additional information.

Significant expenses within income (loss) from operations, as well as within net income (loss), include research and development, and administrative expenses, which are each separately presented on the Group’s consolidated statements of comprehensive loss. Other segment items within net income (loss) include interest and investment income, interest expense, other income, net, income tax expense and changes in fair value of warrant liabilities.

In addition to the significant expense categories included within the consolidated net loss presented on the Group’s consolidated statements of comprehensive loss, see below for disaggregated amounts that comprise research and development expenses:


		For the years ended December 31,
		2023		2024		2025
		US$		US$		US$
Direct research and development expenses^(a)		13,114,341		10,399,305		6,962,065
Indirect research and development expenses^(b)
Payroll and other related costs of personnel		18,491,694		14,488,811		11,493,983
Lab supplies and other research and development expenses		5,033,111		3,893,296		3,577,525
Total indirect research and development expenses		23,524,805		18,382,107		15,071,508
Total research and development expenses		36,639,146		28,781,412		22,033,573

Note (a): Direct research and development expenses consist principally of: (1) costs related to clinical trials such as payments to CRO, CDMO, investigators, and clinical trial sites that conduct the clinical studies; and (2) costs to develop the product candidates, including costs related to product testing.

Note (b): Indirect research and development expenses are not allocated directly to each program, and primarily consist of compensation and other personnel related costs, overhead and infrastructure costs to maintain our facilities, and other costs related to activities that benefit multiple projects.

The measure of segment assets is reported on the consolidated balance sheets as consolidated total assets. The Group’s long-lived assets consist primarily of property, plant and equipment, net. No geographical segments are presented as a substantial portion of the Group’s long-lived assets are located in the PRC with the exception of certain laboratory and electronic equipment which are located in the U.S.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

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+ Details

TREASURY SHARES

12 Months Ended

Dec. 31, 2025

TREASURY SHARES

TREASURY SHARES

18. TREASURY SHARES

The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account in the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is recorded entirely in additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares). In the event that treasury share is reissued at an amount different from the cost the Group paid to repurchase the treasury share, the Group will recognize the difference in additional paid-in capital by using the specified identification method.

The Board of Directors approved two share repurchase programs to repurchase the Company’s outstanding ADSs in 2021 and 2022, respectively. The share repurchase programs were subsequently terminated. Under the programs, the Company repurchased a total of 1,446,485 ADSs (1,808,106 ordinary shares) in 2021 and 2022. 1,446,484 ADSs (1,808,105 ordinary shares) purchased were retired during the same periods. During the year ended December 31, 2024, 1 ADS (1 ordinary share) repurchased was retired. As of December 31, 2024 and 2025, there was no ADS held as treasury share.

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	Cybersecurity risk management is an integral part of our overall enterprise information security and risk management program. Our cybersecurity risk management program is based on industry best practices and provide a framework for handling cybersecurity threats and incidents, including threats and incidents associated with the use of applications developed/services provided by third-party service providers, and facilitate coordination across different departments of our company. This framework includes steps for assessing the severity of a cybersecurity threat, identifying the source of a cybersecurity threat including whether the cybersecurity threat is associated with a third-party service provider, implementing cybersecurity countermeasures and mitigation strategies and informing management and our board of directors of material cybersecurity threats and incidents. Our cybersecurity team also engages third-party security services for risk assessment and system enhancements.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	Cybersecurity risk management is an integral part of our overall enterprise information security and risk management program
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Our board of directors has overall oversight responsibility for our risk management, and delegates cybersecurity risk management oversight to the information security committee (ISC).
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	information security committee (ISC)
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	The information security committee is responsible for ensuring that management has processes in place designed to identify and evaluate cybersecurity risks to which the company is exposed and implement processes and programs to manage cybersecurity risks and mitigate cybersecurity incidents. The information security committee also reports material cybersecurity risks to management. Management is responsible for identifying, considering and assessing material cybersecurity risks on an ongoing basis, establishing processes to ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and maintaining cybersecurity programs.
Cybersecurity Risk Role of Management [Text Block]	Our cybersecurity programs are under the direction of our Senior Vice President of Bioinformatics and Information Technology who receives reports from our cybersecurity team and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents. Our Senior Vice President of Bioinformatics and Information Technology and dedicated personnel are certified and experienced information systems security professionals and information security managers with many years of experience. The Senior Vice President of Bioinformatics and Information Technology and our IT team, regularly update the information security committee on the company’s cybersecurity programs, material cybersecurity risks and mitigation strategies and provide cybersecurity reports annually that cover, among other topics, third-party assessments of the company’s cybersecurity program, developments in cybersecurity and updates to the company’s cybersecurity programs and mitigation strategies.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Senior Vice President of Bioinformatics and Information Technology
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our Senior Vice President of Bioinformatics and Information Technology and dedicated personnel are certified and experienced information systems security professionals and information security managers with many years of experience.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	Management is responsible for identifying, considering and assessing material cybersecurity risks on an ongoing basis, establishing processes to ensure that such potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation measures and maintaining cybersecurity programs.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

NET LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2025

NET LOSS PER SHARE

Schedule of basic and diluted net loss per share


	For the Year Ended December 31,
	2023	2024	2025
	US$	US$	US$
Numerator:
Net loss attributable to Adagene Inc.’s shareholders	(18,946,370)	(33,424,111)	(17,609,413)
Net loss attributable to ordinary shareholders	(18,946,370)	(33,424,111)	(17,609,413)
Denominator:
Weighted‑average number of ordinary shares outstanding—basic and diluted	54,737,530	56,287,903	59,006,129
Net Loss per share—basic and diluted	(0.35)	(0.59)	(0.30)

Schedule of potentially dilutive securities that are not included in the calculation of diluted net loss per share


	For the Year Ended December 31,
	2023		2024	2025
Incremental shares on share options, share grant, RSU grant, Series A Preferred Shares and warrants	52,942		1,554,057	10,933,676

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables)

12 Months Ended

Dec. 31, 2025

PROPERTY, EQUIPMENT AND SOFTWARE, NET

Summary of property, equipment and software


		As of December 31,
		2024		2025
		US$		US$
Machinery and laboratory equipment		5,116,503		5,232,597
Leasehold improvements		1,030,798		1,054,204
Electronic equipment		1,793,132		1,818,366
Furniture and tools		49,085		50,035
Vehicles		77,767		43,635
Software		358,952		364,586
Total property, equipment and software		8,426,237		8,563,423
Less: accumulated depreciation and amortization		(7,300,848)		(7,846,049)
Net book value		1,125,389		717,374

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2025

SHARE-BASED COMPENSATION

Summary of stock option activity


			Weighted‑	Weighted
		Weighted‑	Average	Average
		Average	Grant	Remaining	Aggregate
	Number of	Exercise	Date	Contractual	Intrinsic
	Options	Price	Fair Value	Term	Value
		US$ per	US$ per
		option	option	Years	US$
Outstanding at December 31, 2022	6,286,912	4.80	5.16	8.44	94,990
Granted	3,442,500	1.14	0.72	—	—
Exercised	(10,000)	0.55	5.72	—	—
Forfeited	(952,530)	4.59	3.45	—	—
Outstanding at December 31, 2023	8,766,882	3.39	3.60	8.24	2,011,843
Granted	3,925,945	1.68	1.04	—	—
Exercised	(185,620)	1.02	2.49	—	—
Forfeited	(483,022)	6.13	4.28	—	—
Cancelled	(2,176,945)	3.68	3.96	—	—
Outstanding at December 31, 2024	9,847,240	2.55	2.49	8.36	1,736,202
Granted	3,624,440	1.40	0.87	—	—
Exercised	(86,469)	0.94	0.98	—	—
Forfeited	(968,857)	2.95	4.03	—	—
Outstanding at December 31, 2025	12,416,354	2.20	1.91	8.03	1,660,307
Vested and expected to vest at December 31, 2025	12,416,354	2.20	1.91	8.03	1,660,307
Exercisable at December 31, 2024	3,440,384	4.27	5.15	6.49	616,539
Exercisable at December 31, 2025	5,319,029	3.21	3.24	6.89	759,799

Summary of Company's RSU activity under the 2021 Plan


						Weighted
				Weighted‑		Average
				Average		Remaining
		Number of		Grant Date		Contractual
		RSU shares		Fair Value		Term
				US$ per
				RSU		Years
Unvested at December 31, 2023		—		—		—
Granted		988,750		2.10		—
Vested		—		—		—
Forfeited		(16,250)		2.10		—
Unvested at December 31, 2024		972,500		2.10		3.56
Granted		—		—		—
Vested		(234,688)		2.10		—
Forfeited		(58,438)		2.10		—
Unvested at December 31, 2025		679,375		2.10		2.56

Summary of assumptions used to estimate the fair value of the share options granted


	For the years ended
	December 31,
	2023	2024	2025
Risk‑free interest rate	3.38% - 4.86%	4.18% - 4.59%	4.22% - 4.49%
Dividend yield	0%	0%	0%
Expected volatility range	72.6% - 73.1%	73.3% - 75.6%	76.4% - 77.2%
Exercise multiple	2.2 - 2.8	2.2 - 2.8	2.2 - 2.8
Contractual life	10 years	10 years	10 years

Summary of total share based compensation expenses recognized


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Research and development expenses	4,860,548	3,313,833	2,502,472
Administrative expenses	2,411,152	1,595,740	1,239,076
Total share‑based compensation expenses	7,271,700	4,909,573	3,741,548

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2025

BORROWINGS

Schedule of borrowings


	As of December 31,
	2024	2025
	US$	US$
Current
Short-term borrowings:
Bank loans	4,868,956	4,268,154
Current portion of long-term borrowings	12,923,599	711,359
Total current borrowings	17,792,555	4,979,513
Non-Current
Long-term borrowings:
Bank loans	417,339	1,138,174
Total non-current borrowings	417,339	1,138,174
Total borrowings	18,209,894	6,117,687

Schedule of future maturities of short-term borrowings and long-term borrowings


		As of December 31,
		2025
		US$
2026		4,979,513
2027		1,138,174
		6,117,687

ACCRUALS AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2025

ACCRUALS AND OTHER CURRENT LIABILITIES

Summary of accrued liabilities and other current liabilities


	As of December 31,
	2024	2025
	US$	US$
Professional service fees	1,182,056	924,349
Payroll and related liabilities	1,097,013	1,251,040
Other taxes and surcharge	480,704	588,309
Others	56,265	27,096
	2,816,038	2,790,794

INCOME TAX EXPENSE - Valuation Allowance (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Movement of the valuation allowance
Balance as of January 1	$ 20,336,613	$ 16,589,070	$ 9,524,497
Addition	86,877	3,747,543	7,064,573
Balance as of December 31	$ 20,423,490	$ 20,336,613	$ 16,589,070

PREPAYMENTS AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2025

PREPAYMENTS AND OTHER CURRENT ASSETS

PREPAYMENTS AND OTHER CURRENT ASSETS

3. PREPAYMENTS AND OTHER CURRENT ASSETS

Prepayments and other current assets consisted of the following:


		As of December 31,
		2024		2025
		US$		US$
Prepayments		269,075		310,966
Deposits (a)		1,778,413		1,320,313
Others		527,706		1,202,755
		2,575,194		2,834,034

Note (a): The majority of the deposits represented the amounts that the Group paid to its CRO vendors for various outsourced research and development programs according to the terms of respective CRO agreements. The Group expects to recover the deposits if the programs fail or the agreements are cancelled.

ORGANIZATION AND BASIS OF PRESENTATION (Tables)

12 Months Ended

Dec. 31, 2025

ORGANIZATION AND BASIS OF PRESENTATION

Summary of principal subsidiaries

As of December 31, 2025, the Company’s principal subsidiaries are as follows:


						Percentage of legal
		Date of		Place of		ownership
Entity		incorporation		incorporation		by the Company		Principal activities
Adagene (Hong Kong) Limited		December 12, 2011		Hong Kong		100	%	Investment holding, and research and development of innovative medicines
Adagene Incorporated		September 20, 2017		The United States of America		100	%	Research and development of innovative medicines
Adagene (Suzhou) Limited		February 28, 2012		The People’s Republic of China (“PRC” or “China”)		100	%	Research and development of innovative medicines
Adagene Australia PTY Ltd.		May 30, 2018		Australia		100	%	Research and development of innovative medicines
Adagene PTE. Ltd.		March 27, 2020		Singapore		100	%	Research and development of innovative medicines
Adagene AG		August 31, 2020		Switzerland		100	%	Research and development of innovative medicines
Adagene Project C1 PTE. Ltd.		March 25, 2022		Singapore		100	%	Research and development of innovative medicines

WARRANT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2025

WARRANT LIABILITIES

Schedule of warrant activity


						Weighted Average
		Number of Warrants		Exercise Price		Remaining Life
				US$ per
				Ordinary Share		Years
Outstanding at December 31, 2024		—		—		—
Granted		10,000,000		4.00		—
Outstanding at December 31, 2025		10,000,000		4.00		2.59
Exercisable at December 31, 2025		5,000,000		4.00		2.51

Schedule of assumptions used in estimating the fair value of warrant liabilities


		For the year ended
		December 31, 2025
Risk-free interest rate		3.51% - 3.52%
Exercise price per ordinary share		US$4.00
Expected volatility range		59.60% - 60.05%
Term of warrants		2.5 - 2.7 years
Dividend yield		0%

ORGANIZATION AND BASIS OF PRESENTATION (Details)	Dec. 31, 2025
IPO \| American depositary shares
ORGANIZATION AND BASIS OF PRESENTATION
Number of ordinary shares represented by each ADS	1.25
Adagene (Hong Kong) Limited
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene Incorporated
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene (Suzhou) Limited
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene Australia PTY Ltd.
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene PTE. Ltd.
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene AG
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%
Adagene Project C1 PTE. Ltd.
ORGANIZATION AND BASIS OF PRESENTATION
Percentage of legal ownership by the Company	100.00%

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

SHARE-BASED COMPENSATION (Details) - USD ($)						1 Months Ended				4 Months Ended	9 Months Ended	11 Months Ended		12 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($)	Nov. 17, 2024	Mar. 08, 2022	Jan. 07, 2022	Jan. 16, 2021	Nov. 09, 2020	Apr. 30, 2025	Oct. 31, 2024	Apr. 30, 2023	Jan. 31, 2023	Aug. 17, 2025	Dec. 27, 2023	Dec. 24, 2024	Dec. 27, 2022	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2019	Sep. 30, 2017	Nov. 07, 2015
SHARE-BASED COMPENSATION
Share options granted														3,624,440	3,925,945	3,442,500
Exercise price (in USD per share)														$ 1.4	$ 1.68	$ 1.14
Restricted stock units															988,750
Expiration period (in years)														10 years
Unvested shares															(2,176,945)
Performance-based options in shares														968,857	483,022	952,530
Total amount exercise price														$ 81,496	$ 190,238	$ 5,500
Shares issued upon exercise of share options (in shares)														86,469	185,620	10,000
Maximum
SHARE-BASED COMPENSATION
Vesting period (in years)														5 years
Employees \| Modification of vesting schedules and conditions of share options
SHARE-BASED COMPENSATION
Share options granted			2,060,308
Incremental fair value			$ 2,337,697
Management personnel
SHARE-BASED COMPENSATION
Number of options, vesting schedules and conditions waived					2,375,000
Shares unvested														0
Total amount exercise price					$ 5,197,650
Shares issued upon exercise of share options (in shares)					2,375,000
Management personnel \| Minimum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)					$ 1.83
Management personnel \| Maximum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)					$ 2.26
2015 Plan
SHARE-BASED COMPENSATION
Maximum aggregate number of shares that may be issued																			4,336,126
2017 Plan
SHARE-BASED COMPENSATION
Maximum aggregate number of shares that may be issued																		6,336,126
2019 Plan
SHARE-BASED COMPENSATION
Maximum aggregate number of shares that may be issued																	11,391,131
2021 Plan
SHARE-BASED COMPENSATION
Aggregate ordinary shares reserved for issuance				2,994,000
Incremental percent of shares				5.00%
Share options granted										3,624,440		1,749,000
2021 Plan \| Minimum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)										$ 1.14		$ 1.55
2021 Plan \| Maximum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)										$ 1.56		$ 3.07
2021 Plan \| Employees
SHARE-BASED COMPENSATION
Share options granted								69,225			3,442,500		2,640,598
2021 Plan \| Employees \| Minimum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)											$ 0.94		$ 0.8
2021 Plan \| Employees \| Maximum
SHARE-BASED COMPENSATION
Exercise price (in USD per share)											$ 1.33		$ 5.6
2021 Plan \| Employees \| Share options
SHARE-BASED COMPENSATION
Unvested shares	2,176,945
2021 Plan \| Employees \| Time-based options
SHARE-BASED COMPENSATION
Share options granted												2,176,945
Incremental compensation cost to be recognized	$ 2,284,987
2021 Plan \| Employees \| Time-based options \| 2025
SHARE-BASED COMPENSATION
Share options vested (in percentage)	50.00%
2021 Plan \| Employees \| Time-based options \| 2026
SHARE-BASED COMPENSATION
Share options vested (in percentage)	50.00%
2021 Plan \| Management personnel
SHARE-BASED COMPENSATION
Share options granted		99,999				23,896	99,623		425,905
2021 Plan \| Management personnel \| RSU
SHARE-BASED COMPENSATION
Restricted stock units												988,750

SHARE-BASED COMPENSATION - RSU Activity - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
SHARE-BASED COMPENSATION
Total sharebased compensation expenses	$ 3,741,548	$ 4,909,573	$ 7,271,700
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 7 months 6 days
RSU
SHARE-BASED COMPENSATION
Aggregate fair value of RSUs vested	$ 491,745
Total sharebased compensation expenses	477,566
Unrecognized share-based compensation expense	$ 1,209,550
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 6 months 14 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2025

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

17. RESTRICTED NET ASSETS

The Group’s ability to pay dividends may depend on the Group receiving distributions of funds from its PRC subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiary only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s PRC subsidiary.

In accordance with the company law of the PRC, a domestic enterprise is required to provide statutory reserves of at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the Board of Directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The Group’s PRC subsidiary was established as domestic invested enterprise and therefore is subject to the abovementioned restrictions on distributable profits.

As of December 31, 2024 and 2025, the total restricted net assets of the Company’s subsidiary incorporated in PRC and subjected to restriction amounted to approximately US$1,860,667 for both years. Other subsidiaries are not subjected to such restriction.

As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends, as general reserve fund, the Group’s PRC subsidiary is restricted in their ability to transfer a portion of their net assets to the Group.

Foreign exchange and other regulations in the PRC further restrict the Group’s PRC subsidiaries from transferring funds to the Company in the form of dividends, loans and advances.

As of December 31, 2025, the net asset base for purposes of calculating the proportionate share of restricted net assets of consolidated subsidiaries was US$1,860,667 from the PRC subsidiary. As the restricted net assets of consolidated subsidiaries did not exceed 25% of consolidated net assets as of the most recent fiscal year end, the Group was not required to provide parent company financial information.

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES (Tables)

12 Months Ended

Dec. 31, 2025

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES

Summary of preferred shares activities


		Mezzanine equity
		US$
Balance as of December 31, 2024		—
Issuance of Series A Preferred Shares		16,550,000
Balance as of December 31, 2025		16,550,000

- Definition

Tabular disclosure of temporary equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. If convertible, the issuer does not control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the conversion option if the holder exercises the option to convert the stock to another class of equity. If the security is a warrant or a rights issue, the warrant or rights issue is considered to be temporary equity if the issuer cannot demonstrate that it would be able to deliver upon the exercise of the option by the holder in all cases. Includes stock with put option held by ESOP and stock redeemable by holder only in the event of a change in control of the issuer.

+ References + Details

SHARE-BASED COMPENSATION - Share Option Activities - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
SHARE-BASED COMPENSATION
Aggregate fair value of the equity awards vested	$ 3,054,506	$ 4,153,833	$ 6,742,535
Unrecognized employee share based compensation expense	$ 5,183,032
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 7 months 6 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of credit risk (Details)	12 Months Ended
	Dec. 31, 2025 USD ($) item	Dec. 31, 2024 USD ($) item	Dec. 31, 2023 item
Concentration of risks
Cash and cash equivalents	$ 74,523,782	$ 85,194,502
Concentration of credit risk \| Cash and cash equivalents \| Mainland of China
Concentration of risks
Cash and cash equivalents	8,327,345	3,020,953
Concentration of credit risk \| Cash and cash equivalents \| Outside the mainland of China
Concentration of risks
Cash and cash equivalents	$ 66,196,437	$ 82,173,549
Concentration of suppliers \| Research and development services purchased \| One supplier
Concentration of risks
Number of major supplier \| item	1	1	0
Concentration of suppliers \| Research and development services purchased \| Another supplier
Concentration of risks
Concentration risk percentage	17.40%	17.20%	10.00%

WARRANT LIABILITIES

12 Months Ended

Dec. 31, 2025

WARRANT LIABILITIES

WARRANT LIABILITIES

10. WARRANT LIABILITIES

In July and September 2025, the Company issued warrants to a consultant at nil cash consideration as compensation for the consultant’s services in the field of investor relations and business development services. The warrants allowed the holder to subscribe for and purchase from the Company up to 1,000,000 shares of ordinary shares of the Company at an exercise price of US$4.0 per ordinary share (US$5.0 per ADS). The warrants are exercisable, in whole or in part, at any time from the initial exercise dates until the earlier of (i) the termination dates, or (ii) the occurrence of a fundamental transaction, which refers to events such as mergers, sales of substantially all assets, change of control transactions, or major recapitalizations that fundamentally alter the Company’s structure or ownership. The warrants shall be automatically exercised on the termination dates or immediately prior to the consummation of a fundamental transaction.

The warrants are freestanding instruments and classified as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity. The warrants are initially recognized at fair value, with subsequent changes in fair value recorded currently in earnings. The Company recognized gains from the decrease in fair value of the warrants of US$47,941 for the year ended December 31, 2025.

The following table summarizes the activities in warrants for the year ended December 31, 2025:


						Weighted Average
		Number of Warrants		Exercise Price		Remaining Life
				US$ per
				Ordinary Share		Years
Outstanding at December 31, 2024		—		—		—
Granted		10,000,000		4.00		—
Outstanding at December 31, 2025		10,000,000		4.00		2.59
Exercisable at December 31, 2025		5,000,000		4.00		2.51

The Company has measured the warrant liabilities at fair values on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2025. The Group used the binomial option pricing model to estimate the fair value of warrant liabilities using the following assumptions:


		For the year ended
		December 31, 2025
Risk-free interest rate		3.51% - 3.52%
Exercise price per ordinary share		US$4.00
Expected volatility range		59.60% - 60.05%
Term of warrants		2.5 - 2.7 years
Dividend yield		0%

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2025

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

a)	Related Parties


Name of related parties		Relationship
Peter Luo		Chairman, Chief Executive Officer and a principal shareholder of the Company
Certain senior management personnel		Management and ordinary shareholders of the Company
WuXi AppTec Co., Ltd. (“WuXi AppTec Group”)		A principal shareholder of the Company
WuXi Biologics (Cayman) Inc.		Controlled by the ultimate controlling party of a principal shareholder of the Company

b)	The Group had the following related party balances as of December 31, 2024 and 2025:


	As of December 31,
	2024	2025
	US$	US$
WuXi AppTec Group	5,304	14,276
Certain senior management personnel.	3,005	3,073
Total amounts due from related parties	8,309	17,349

As of December 31, 2024 and 2025, the amounts due from related parties mainly represented prepayments made for the CRO and CDMO services.


	As of December 31,
	2024	2025
	US$	US$
WuXi Biologics (Cayman) Inc.	12,598,836	10,118,661
WuXi AppTec Group	589,130	228,539
Total amounts due to related parties	13,187,966	10,347,200

As of December 31, 2024 and 2025, the amounts due to related parties mainly represented payables for the CRO and CDMO services.

c)	The Group had the following related party transactions during the years ended December 31, 2023, 2024 and 2025:


	For the years ended
	December 31,
	2023	2024	2025
	US$	US$	US$
WuXi Biologics (Cayman) Inc.	1,868,815	1,464,959	1,470,267
WuXi AppTec Group	787,602	466,432	98,024
Certain senior management personnel.	4,087	12,132	12,096
	2,660,504	1,943,523	1,580,387

SEGMENT INFORMATION - Research and development (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
SEGMENT INFORMATION
Research and Development Expense, Total	$ 22,033,573	$ 28,781,412	$ 36,639,146
Single reportable segment
SEGMENT INFORMATION
Direct research and development expenses	6,962,065	10,399,305	13,114,341
Payroll and other related costs of personnel	11,493,983	14,488,811	18,491,694
Lab supplies and other research and development expenses	3,577,525	3,893,296	5,033,111
Total indirect research and development expenses	15,071,508	18,382,107	23,524,805
Research and Development Expense, Total	$ 22,033,573	$ 28,781,412	$ 36,639,146

ACCRUALS AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
ACCRUALS AND OTHER CURRENT LIABILITIES
Professional service fees	$ 924,349	$ 1,182,056
Payroll and related liabilities	1,251,040	1,097,013
Other taxes and surcharge	588,309	480,704
Others	27,096	56,265
Accruals and other current liabilities	$ 2,790,794	$ 2,816,038

BORROWINGS - Future maturities of short term borrowings and long term borrowings (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
BORROWINGS
2026	$ 4,979,513
2027	1,138,174
Total borrowings	$ 6,117,687	$ 18,209,894

PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
PREPAYMENTS AND OTHER CURRENT ASSETS
Prepayments	$ 310,966	$ 269,075
Deposits	1,320,313	1,778,413
Others	1,202,755	527,706
Prepayments and other current assets	$ 2,834,034	$ 2,575,194

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

9. SHARE-BASED COMPENSATION

On November 7, 2015, the Company adopted a share incentive plan (the “2015 Plan”). Under the 2015 Plan, the Company’s Board of Directors has approved that a maximum aggregate number of shares that may be issued pursuant to all awards granted shall be 4,336,126. In September 2017, the Company replaced the 2015 Plan with the amended and restated share incentive plan (the “2017 Plan”) and increased the maximum number of shares issuable to 6,336,126. In December 2019, the Company replaced the 2017 Plan with the second amended and restated share incentive plan (the “2019 Plan”) and further increased the maximum number of shares issuable to 11,391,131. The terms of the 2015 Plan, 2017 Plan and 2019 Plan are substantially the same other than the maximum aggregate number of shares the Company may issue under the respective plan.

Share options containing only service conditions granted to each grantee under the share incentive plan will generally be exercisable upon the grantee renders service to the Company in accordance with a stipulated vesting schedule. Grantees are generally subject to a vesting schedule of no longer than five years, under which the grantee earns an entitlement to vest a certain percentage of his option grants at the end of each month or year of completed service. The share option awards shall expire no more than 10 years from their grant dates.

Share options containing both service conditions and performance conditions granted to each grantee under the share incentive plan shall become eligible for vesting upon the occurrence of their applicable performance conditions (including but not limited to the completion of business and operational goals, etc.).

On November 9, 2020, the Company passed a board resolution to waive the vesting schedules and conditions of 2,375,000 share options granted to certain management members. Pursuant to this board resolution, these management members exercised all related share options at the original exercise price per share ranging from US$1.83 to US$2.26. As a result, 2,375,000 ordinary shares were issued to these management members. These management members paid the exercise price by issuing recourse promissory notes in the total amount of US$5,197,650. The Company had the repurchase right to buy back such shares at the original exercise price if the grantees did not meet the original vesting conditions. The Company assessed and considered that given such arrangement allows the shares received on exercise be returned to the Company if the original vesting conditions are not satisfied, there has been no substantial change to the vesting conditions and the Company shall continue to account for the share awards in accordance with their original terms. All of the remaining unvested shares became vested according to the original vesting conditions in 2024. There were no unvested shares as of December 31, 2025.

On January 16, 2021, the Company passed a board resolution whereby the 2021 Performance Incentive Plan (the “2021 Plan”) was adopted. Under the 2021 Plan, an aggregate of 2,994,000 ordinary shares shall be reserved for issuance, and the share limit will automatically increase on the first trading day in January of each year (commencing with 2022) by an amount equal to (1) 5% of the total number of the Company’s outstanding ordinary shares on December 31 of the prior year, or (2) such lesser number as determined by the board of directors.

On January 7, 2022, the Company passed a board resolution, pursuant to which the vesting schedules and conditions of 2,060,308 share options granted to certain employees were modified. Share options as to which the applicable performance milestones have been met are no longer subject to the time-based vesting requirement. The share options vested (or to be vested) for each year (commencing from 2021) shall be equal to the lesser of (i) 25% of the total number of share options of each grantee (“Annual Cap”) and (ii) the number of shares as determined by the Compensation Committee based on the extent to which any performance milestones were achieved during that year (“Credited Shares”), plus any Credited Share of earlier years that have not previously vested due to the Annual Cap. In addition, the performance milestones applicable to the share options that remain outstanding were also modified. As a result of the modification, the Company recognized an incremental fair value of US$2,337,697.

From February 7, 2022 to December 27, 2022, pursuant to the 2021 Plan, a total of 2,640,598 share options were granted to certain employees, with exercise price ranging from US$0.80 to US$5.60, respectively. In addition, 99,999 ordinary shares were issued to certain management personnel on March 8, 2022 pursuant to the 2021 Plan.

From April 12, 2023 to December 27, 2023, pursuant to the 2021 Plan, a total of 3,442,500 share options were granted to certain employees, with exercise price ranging from US$0.94 to US$1.33, respectively. In addition, 425,905 ordinary shares were issued to certain management personnel in January 2023 pursuant to the 2021 Plan. 69,225 ordinary shares were issued to certain employees as stock bonus in April 2023.

On November 17, 2024, the Company passed a board resolution, pursuant to which 2,176,945 unvested performance-based options granted to certain management members and employees were cancelled, along with concurrent grant of a replacement award. As consideration of such replacement, the Company granted the same number of time-based share options to these individuals. These time-based share options will vest 50% per annum in 2025 and 2026, respectively. As a result of the modification, the Company recognized an incremental fair value of US$2,284,987 over the remaining requisite service period.

From January 24, 2024 to December 24, 2024, pursuant to the 2021 Plan, in addition to the 2,176,945 share options granted under the replacement award, a total of 1,749,000 share options were granted to certain employees, independent directors, and an external consultant, with exercise price ranging from US$1.55 to US$3.07 and a total of 988,750 restricted stock units (“RSUs”) were granted to certain management personnel and an external advisor in July and August 2024. In addition, 99,623 ordinary shares were issued to certain employees as stock bonus in October 2024.

From April 23, 2025 to August 17, 2025, pursuant to the 2021 Plan, a total of 3,624,440 share options were granted to certain employees, and external consultant, with exercise price ranging from US$1.14 to US$1.56, respectively. In addition, 23,896 ordinary shares were issued to certain employees as stock bonus in April 2025.


			Weighted‑	Weighted
		Weighted‑	Average	Average
		Average	Grant	Remaining	Aggregate
	Number of	Exercise	Date	Contractual	Intrinsic
	Options	Price	Fair Value	Term	Value
		US$ per	US$ per
		option	option	Years	US$
Outstanding at December 31, 2022	6,286,912	4.80	5.16	8.44	94,990
Granted	3,442,500	1.14	0.72	—	—
Exercised	(10,000)	0.55	5.72	—	—
Forfeited	(952,530)	4.59	3.45	—	—
Outstanding at December 31, 2023	8,766,882	3.39	3.60	8.24	2,011,843
Granted	3,925,945	1.68	1.04	—	—
Exercised	(185,620)	1.02	2.49	—	—
Forfeited	(483,022)	6.13	4.28	—	—
Cancelled	(2,176,945)	3.68	3.96	—	—
Outstanding at December 31, 2024	9,847,240	2.55	2.49	8.36	1,736,202
Granted	3,624,440	1.40	0.87	—	—
Exercised	(86,469)	0.94	0.98	—	—
Forfeited	(968,857)	2.95	4.03	—	—
Outstanding at December 31, 2025	12,416,354	2.20	1.91	8.03	1,660,307
Vested and expected to vest at December 31, 2025	12,416,354	2.20	1.91	8.03	1,660,307
Exercisable at December 31, 2024	3,440,384	4.27	5.15	6.49	616,539
Exercisable at December 31, 2025	5,319,029	3.21	3.24	6.89	759,799

The aggregate intrinsic value in the table above represents the difference between the exercise price of the awards and the fair value of the underlying ordinary shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant ordinary shares.

The aggregate fair value of the share options vested during the years ended December 31, 2023, 2024 and 2025 was US$6,742,535, US$4,153,833 and US$3,054,506, respectively. As of December 31, 2025, the total unrecognized employee share based compensation expense was US$5,183,032, all of which may be adjusted for actual forfeitures occurring in the future. Total unrecognized compensation cost will be recognized over a weighted average period of 2.6 years as of December 31, 2025.

The following table summarizes Company’s RSU activity under the 2021 Plan for the years ended December 31, 2025:


						Weighted
				Weighted‑		Average
				Average		Remaining
		Number of		Grant Date		Contractual
		RSU shares		Fair Value		Term
				US$ per
				RSU		Years
Unvested at December 31, 2023		—		—		—
Granted		988,750		2.10		—
Vested		—		—		—
Forfeited		(16,250)		2.10		—
Unvested at December 31, 2024		972,500		2.10		3.56
Granted		—		—		—
Vested		(234,688)		2.10		—
Forfeited		(58,438)		2.10		—
Unvested at December 31, 2025		679,375		2.10		2.56

The aggregate fair value of RSUs vested during the year ended December 31, 2025 was US$491,745. The total share-based compensation expense related to the RSUs recognized for the year ended December 31, 2025 was US$477,566. As of December 31, 2025, the total unrecognized share-based compensation expense related to the RSU was US$1,209,550, all of which may be adjusted for actual forfeitures occurring in the future. Total unrecognized compensation cost will be recognized over a weighted average period of 2.54 years as of December 31, 2025.

The fair value of RSUs was determined using the closing price for the Company’s ADSs, as reported by NASDAQ Global Market, of the grant date.

Fair value of share options

The fair value of share options was determined using the binomial option valuation model, with the assistance from an independent third-party appraiser. The binomial model requires the input of highly subjective assumptions, including the expected volatility, the exercise multiple, the risk-free rate and the dividend yield. For expected volatility, the Group has made reference to historical volatility of several comparable companies in the same industry. The exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested share options. The risk-free rate for periods within the contractual life of the share options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The dividend yield is based on the expected dividend policy over the contractual life of the share options.

The assumptions used to estimate the fair value of the share options granted were as follows:


	For the years ended
	December 31,
	2023	2024	2025
Risk‑free interest rate	3.38% - 4.86%	4.18% - 4.59%	4.22% - 4.49%
Dividend yield	0%	0%	0%
Expected volatility range	72.6% - 73.1%	73.3% - 75.6%	76.4% - 77.2%
Exercise multiple	2.2 - 2.8	2.2 - 2.8	2.2 - 2.8
Contractual life	10 years	10 years	10 years

Total share-based compensation expenses recognized for the years ended December 31, 2023, 2024 and 2025 were as follows:


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Research and development expenses	4,860,548	3,313,833	2,502,472
Administrative expenses	2,411,152	1,595,740	1,239,076
Total share‑based compensation expenses	7,271,700	4,909,573	3,741,548

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2025 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2025
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-39997
Entity Registrant Name	Adagene Inc.
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	4F, Building C14, No. 218
Entity Address, Address Line Two	Xinghu Street, Suzhou Industrial Park
Entity Address, City or Town	Suzhou
Entity Address, Postal Zip Code	215123
Entity Address, Country	CN
Entity Common Stock, Shares Outstanding	59,231,993
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001818838
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2025
Amendment Flag	false
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Firm ID	1424
Auditor Location	Shanghai, the People’s Republic of China
Business Contact
Document and Entity Information
Entity Address, Address Line One	4F, Building C14, No. 218
Entity Address, Address Line Two	Xinghu Street, Suzhou Industrial Park
Entity Address, City or Town	Suzhou
Entity Address, Postal Zip Code	215123
Entity Address, Country	CN
Contact Personnel Name	Peter Luo
Country Region	86
City Area Code	512
Local Phone Number	87773632
Contact Personnel Email Address	peter_luo@adagene.com
American depositary shares
Document and Entity Information
Trading Symbol	ADAG
Security Exchange Name	NASDAQ
Title of 12(b) Security	American depositary shares
Ordinary shares
Document and Entity Information
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true
Title of 12(b) Security	Ordinary shares, par value US$0.0001 per share

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Short-term investments, Impairment of long lived assets and Employee defined contribution plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Short-term investments
Shortterm investments	$ 0	$ 0
Impairment of long lived assets
Impairment loss	0	0	$ 0
Employee defined contribution plan
Employee benefit expenses	$ 1,810,503	$ 2,092,412	$ 2,584,392

INCOME TAX EXPENSE

12 Months Ended

Dec. 31, 2025

INCOME TAX EXPENSE

INCOME TAX EXPENSE

12. INCOME TAX EXPENSE

PRC

Effective from January 1, 2008, the PRC’s statutory, Enterprise Income Tax (“EIT”) rate is 25%. In accordance with the implementation rules of EIT Law, a qualified “Technology Advanced Service Enterprises” (“TASE”) is eligible for a preferential tax rate of 15%. The TASE certificate is effective for three years. An entity must file required supporting documents with the tax authority and ensure fulfillment of the relevant TASE criteria before using the preferential rate. An entity could apply for the TASE certificate every year. Dividends by PRC entities, to non-PRC resident enterprises shall be subject to 10% EIT, namely withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.

Adagene (Suzhou) Limited was first recognized as a qualified TASE in March 2015. The qualification was subsequently updated in December 2018, November 2021, and December 2024. Adagene (Suzhou) Limited was authorized to enjoy the preferential tax rate of 15% from 2015 to December 2027.

Cayman Islands

Adagene Inc. is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands Adagene Inc. is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

Hong Kong

Adagene (Hong Kong) Limited is incorporated in Hong Kong. Companies registered in Hong Kong are subject to Hong Kong profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant Hong Kong tax laws. The applicable tax rate in Hong Kong is 16.5%. For the years ended December 31, 2023, 2024 and 2025, Adagene (Hong Kong) Limited did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earnings in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Adagene (Hong Kong) Limited is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

Australia

Adagene Australia Pty Ltd. is incorporated in Australia. Companies registered in Australia are subject to Australia profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant Australia tax laws. The applicable tax rate in Australia is 30%. Adagene Australia Pty Ltd. has no taxable income for all periods presented, therefore, no provision for income taxes is required. Dividends payable by an Australian entity, to non-Australian resident enterprises shall be subject to 30% withholding tax, unless the respective non-Australian resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with Australia that provides for a reduced withholding tax rate or an exemption from withholding tax.

United States

Adagene Incorporated is incorporated in U.S. and is subject to U.S. federal corporate income tax at a rate of 21%. Adagene Incorporated is also subject to state income tax in California of 8.84%. Dividends payable by an U.S. entity, to non-U.S. resident enterprises shall be subject to 30% withholding tax, unless the respective non-U.S. resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with U.S. that provides for a reduced withholding tax rate or an exemption from withholding tax. PRC has the tax treaty with U.S.

Switzerland

Adagene AG is incorporated in Switzerland and is subject to federal corporate income tax at a rate of 8.5%. Adagene AG is also subject to cantonal income tax of 6.5% as well as capital tax of 0.1% in the Canton of Basel subject to certain tax benefits and relief. Dividends payable by a Swiss entity, to non-Swiss resident enterprises shall be subject to 35% withholding tax, unless the respective non-Swiss resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with Switzerland that provides for a reduced withholding tax rate or an exemption from withholding tax.

Income (loss) from domestic and foreign components before income tax expenses (benefit) and equity in income (loss) of affiliates for the years ended December 31, 2023, 2024 and 2025 were composed of the following amounts:


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Loss before income tax
Loss from PRC entities	(2,975,393)	(2,605,951)	(1,630,999)
Loss from overseas entities	(14,279,569)	(30,835,713)	(16,276,274)
Total loss before income tax	(17,254,962)	(33,441,664)	(17,907,273)

Income tax expense (benefit) of the Group for the years ended December 31, 2023, 2024 and 2025 were composed of the following current and deferred amounts:


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Current:
U.S.
Federal	1,502,796	(18,521)	(604,462)
State and local	188,612	968	306,602
Total current	1,691,408	(17,553)	(297,860)
Deferred:
U.S.
Federal	—	—	—
State and local	—	—	—
Total deferred	—	—	—
Income tax expense (benefit)	1,691,408	(17,553)	(297,860)

Reconciliation between the income tax expense computed by applying the statutory tax rate of PRC, where the Group’s major subsidiary and business is located, to loss before income tax and the actual provision for income tax was as follows:


	For the years ended December 31,
	2023		2024		2025
	US$		US$		US$
Loss before income tax	(17,254,962)		(33,441,664)		(17,907,273)
PRC statutory income tax rate	25	%	25	%	25	%
Income tax credit computed at PRC statutory income tax rate	(4,313,740)		(8,360,416)		(4,476,817)
Impact of PRC preferential income tax rate as qualified TASE	1,725,496		3,344,166		1,790,727
Difference in income tax rates of overseas entities	(1,012,031)		2,665,263		3,146,473
Research and development super-deduction^(a)	(693,340)		(639,650)		(386,799)
Research and development tax credits	(668,854)		(756,757)		(537,086)
Non-deductible expenses	7,241		6,721		6,081
Foreign derived intangible income deduction	(394,979)		—		(97,431)
Changes in valuation allowance	7,064,573		3,747,543		86,877
State tax	(22,363)		(25,113)		111,831
Others	(595)		690		58,284
Income tax expense (benefit)	1,691,408		(17,553)		(297,860)

Note (a): Due to the impacts of research and development super-deduction, the Group’s subsidiary, Adagene (Suzhou) Limited, did not have any income taxes for the years ended December 31, 2023, 2024 and 2025.

The PRC statutory income tax rate was used because the majority of the Group’s operations are based in PRC.

Deferred tax assets and liabilities

Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2024 and 2025 were as follows:


	As of December 31,
	2024	2025
	US$	US$
Deferred tax assets:
Net operating loss carry forward	17,781,302	18,938,782
Tax credit carry forward	1,969,174	1,157,859
Capitalized inventory	58,214	49,305
Unrealized foreign exchange gain/losses	398,422	133,343
Accrued expenses	151,615	159,955
Amortization of right-of-use assets and interest of lease liabilities	—	—
Gross deferred tax assets	20,358,727	20,439,244
Less: valuation allowance	(20,336,613)	(20,423,490)
Deferred tax assets	22,114	15,754

Deferred tax liabilities:
Depreciation and amortization of property, equipment and software	(22,114)	(15,754)
Deferred tax liabilities	(22,114)	(15,754)
Total deferred tax liabilities, net	—	—

Movement of the valuation allowance was as follows:


	2023	2024	2025
	US$	US$	US$
Balance as of January 1	9,524,497	16,589,070	20,336,613
Addition	7,064,573	3,747,543	86,877
Balance as of December 31	16,589,070	20,336,613	20,423,490

A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized in the foreseeable future. In making such determination, the Group evaluates a variety of positive and negative factors including the Group’s operating history, accumulated deficit, the existence of taxable temporary differences and reversal periods.

The Group has incurred net accumulated operating losses for income tax purposes since its inception. As of December 31, 2025, the Group had net operating losses for income tax purpose of approximately US$158,248,572. The net operating losses were primarily comprised of: US$36,213,678 from an entity in PRC which expires in years 2029 through 2032; US$4,926,821 derived from an entity Switzerland which expires in years 2028 through 2036; US$6,706,712 derived from an entity in Hong Kong that have an indefinite carryforward; US$15,364,780 derived from an entity in Australia that have an indefinite carryforward subject to meeting certain criteria; US$92,372,106 derived from an entity in the United States which expires beginning year 2038; and, US$2,595,838 derived from entities in Singapore that have an indefinite carryforward subject to meeting certain criteria. The Group believes that it is more likely than not that these net accumulated operating losses will not be utilized in the near future. Therefore, the Group has provided full valuation allowances for the deferred tax assets for all subsidiaries as of December 31, 2025.

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2025, the Group did not have any unrecognized uncertain tax positions. The Group does not anticipate that the amount of unrecognized tax benefits will significantly change within the next 12 months.

The Group conducts business in a number of tax jurisdictions and, as such, is required to file income tax returns in multiple jurisdictions globally. As of December 31, 2025, PRC tax matters are open to examination for the years 2023 through 2025, U.S. federal and state tax matters are open to examination for the years 2022 through 2025, and Australia tax matters are open to examination for the years 2022 through 2025.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477617/942-740-50-1

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+ Details

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
RELATED PARTY TRANSACTIONS
Amounts due from related parties	$ 17,349	$ 8,309
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Amounts due to related parties	$ 10,347,200	$ 13,187,966
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Receipt of CRO and CDMO services
RELATED PARTY TRANSACTIONS
Related party transactions	$ 1,580,387	$ 1,943,523	$ 2,660,504
WuXi AppTec Group
RELATED PARTY TRANSACTIONS
Amounts due from related parties	$ 14,276	$ 5,304
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Amounts due to related parties	$ 228,539	$ 589,130
Other Liability, Current, Related Party, Type [Extensible Enumeration]	us-gaap:MajorityShareholderMember	us-gaap:MajorityShareholderMember
WuXi AppTec Group \| Receipt of CRO and CDMO services
RELATED PARTY TRANSACTIONS
Related party transactions	$ 98,024	$ 466,432	787,602
Certain senior management personnel.
RELATED PARTY TRANSACTIONS
Amounts due from related parties	3,073	3,005
Related party transactions	12,096	12,132	4,087
WuXi Biologics (Cayman) Inc.
RELATED PARTY TRANSACTIONS
Amounts due to related parties	$ 10,118,661	$ 12,598,836
Other Liability, Current, Related Party, Type [Extensible Enumeration]	us-gaap:SubsidiaryOfCommonParentMember	us-gaap:SubsidiaryOfCommonParentMember
WuXi Biologics (Cayman) Inc. \| Receipt of CRO and CDMO services
RELATED PARTY TRANSACTIONS
Related party transactions	$ 1,470,267	$ 1,464,959	$ 1,868,815

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Government subsidies and Foreign currency exchange rate risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Tax incentive	$ 0.0	$ 0.0
Government subsidies received	$ 0.2	$ 0.3	$ 1.5
Appreciation of foreign currency (as a percent)	2.20%	1.50%

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2025

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

16. COMMITMENTS AND CONTINGENCIES

Contingencies

The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position, cash flows or results of operations.

INCOME TAX EXPENSE (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAX EXPENSE

Schedule of income (loss) from domestic and foreign components before income tax expenses (benefit)


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Loss before income tax
Loss from PRC entities	(2,975,393)	(2,605,951)	(1,630,999)
Loss from overseas entities	(14,279,569)	(30,835,713)	(16,276,274)
Total loss before income tax	(17,254,962)	(33,441,664)	(17,907,273)

Schedule of components of income tax expense


	For the years ended December 31,
	2023	2024	2025
	US$	US$	US$
Current:
U.S.
Federal	1,502,796	(18,521)	(604,462)
State and local	188,612	968	306,602
Total current	1,691,408	(17,553)	(297,860)
Deferred:
U.S.
Federal	—	—	—
State and local	—	—	—
Total deferred	—	—	—
Income tax expense (benefit)	1,691,408	(17,553)	(297,860)

Schedule of reconciliation between the income tax expense and the actual provision


	For the years ended December 31,
	2023		2024		2025
	US$		US$		US$
Loss before income tax	(17,254,962)		(33,441,664)		(17,907,273)
PRC statutory income tax rate	25	%	25	%	25	%
Income tax credit computed at PRC statutory income tax rate	(4,313,740)		(8,360,416)		(4,476,817)
Impact of PRC preferential income tax rate as qualified TASE	1,725,496		3,344,166		1,790,727
Difference in income tax rates of overseas entities	(1,012,031)		2,665,263		3,146,473
Research and development super-deduction^(a)	(693,340)		(639,650)		(386,799)
Research and development tax credits	(668,854)		(756,757)		(537,086)
Non-deductible expenses	7,241		6,721		6,081
Foreign derived intangible income deduction	(394,979)		—		(97,431)
Changes in valuation allowance	7,064,573		3,747,543		86,877
State tax	(22,363)		(25,113)		111,831
Others	(595)		690		58,284
Income tax expense (benefit)	1,691,408		(17,553)		(297,860)

Schedule of tax effects of temporary differences that give rise to the deferred tax balances


	As of December 31,
	2024	2025
	US$	US$
Deferred tax assets:
Net operating loss carry forward	17,781,302	18,938,782
Tax credit carry forward	1,969,174	1,157,859
Capitalized inventory	58,214	49,305
Unrealized foreign exchange gain/losses	398,422	133,343
Accrued expenses	151,615	159,955
Amortization of right-of-use assets and interest of lease liabilities	—	—
Gross deferred tax assets	20,358,727	20,439,244
Less: valuation allowance	(20,336,613)	(20,423,490)
Deferred tax assets	22,114	15,754

Deferred tax liabilities:
Depreciation and amortization of property, equipment and software	(22,114)	(15,754)
Deferred tax liabilities	(22,114)	(15,754)
Total deferred tax liabilities, net	—	—

Schedule of movement of the valuation allowance


	2023	2024	2025
	US$	US$	US$
Balance as of January 1	9,524,497	16,589,070	20,336,613
Addition	7,064,573	3,747,543	86,877
Balance as of December 31	16,589,070	20,336,613	20,423,490

LEASES (Tables)

12 Months Ended

Dec. 31, 2025

LEASES

Summary of information related to operating leases


		As of December 31,
		2024		2025
		US$		US$
Assets
Operating lease right-of-use assets		283,645		145,535
Liabilities
Current portion of operating lease liabilities		141,341		92,055
Operating lease liabilities		142,304		53,480
Weighted average remaining lease term (years)		2.2		1.5
Weighted average discount rate		3.9	%	3.9	%

Summary of information related to operating lease activity


	For the Year Ended December 31,
	2023	2024		2025
	US$	US$		US$
Operating lease rental expense
Amortization of right-of-use assets	216,305	203,298		142,238
Expense for short-term leases within 12 months	13,514	23,734		53,661
Interest of lease liabilities	12,100	12,613		8,689
	241,919	239,645		204,588

Summary of maturities of lease liabilities


		As of December 31,
		2024		2025
2025		149,975		—
2026		93,734		95,863
2027		53,116		54,322
Total undiscounted lease payments		296,825		150,185
Less: imputed interest		(13,180)		(4,650)
Total lease liabilities		283,645		145,535

NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2025

NET LOSS PER SHARE

NET LOSS PER SHARE

13. NET LOSS PER SHARE

Basic and diluted net loss per share for the years ended December 31, 2023, 2024 and 2025 were calculated as follows:


	For the Year Ended December 31,
	2023	2024	2025
	US$	US$	US$
Numerator:
Net loss attributable to Adagene Inc.’s shareholders	(18,946,370)	(33,424,111)	(17,609,413)
Net loss attributable to ordinary shareholders	(18,946,370)	(33,424,111)	(17,609,413)
Denominator:
Weighted‑average number of ordinary shares outstanding—basic and diluted	54,737,530	56,287,903	59,006,129
Net Loss per share—basic and diluted	(0.35)	(0.59)	(0.30)

The effects of all outstanding share options, share and RSU grant, Series A Preferred Shares and warrants have been excluded from the computation of diluted loss per share for the years ended December 31, 2023, 2024 and 2025 as their effects would be anti-dilutive.

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows:


	For the Year Ended December 31,
	2023		2024	2025
Incremental shares on share options, share grant, RSU grant, Series A Preferred Shares and warrants	52,942		1,554,057	10,933,676

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Principles of Consolidation

Use of estimates

Foreign currency translation

Cash and cash equivalents

Short-term investments

Accounts receivable and allowance for doubtful accounts

Fair value measurements

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

The following table presents a reconciliation of all financial instruments measured at fair value on a recurring basis using Level 3 unobservable inputs:


		Warrant liabilities
		US$
Initial recognition during the year ended December 31, 2025		253,087
Fair value change		(47,941)
Balance as of December 31, 2025		205,146

Property, equipment and software


Category		Estimated Useful Life
Machinery and laboratory equipment		5 years
Vehicles		4 years
Furniture and tools		3 - 5 years
Electronic equipment		3 years
Computer software		3 - 5 years
Leasehold improvements		Lesser of lease terms or estimated useful lives of the assets

Impairment of long-lived assets

No impairment loss was recorded for the years ended December 31, 2023, 2024 and 2025.

Revenue recognition

Contract assets and contract liabilities

Other operating income, net

Research and development expenses

Government subsidies

Government cash subsidies of US$1.5 million, US$0.3 million and US$0.2 million were received and recognized as other income during the years ended December 31, 2023, 2024 and 2025, respectively.

Leases

Comprehensive income (loss)

Income taxes

Borrowings

Share-based compensation

Net loss per share

Employee defined contribution plan

Concentration of risks

Concentration of credit risk

Concentration of suppliers

Business and economic risk

Foreign currency exchange rate risk

Recently issued accounting pronouncements

New and amended standards not yet adopted by the Group

ACCRUALS AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2025

ACCRUALS AND OTHER CURRENT LIABILITIES

ACCRUALS AND OTHER CURRENT LIABILITIES

5. ACCRUALS AND OTHER CURRENT LIABILITIES

Accrued liabilities and other current liabilities consisted of the following:


	As of December 31,
	2024	2025
	US$	US$
Professional service fees	1,182,056	924,349
Payroll and related liabilities	1,097,013	1,251,040
Other taxes and surcharge	480,704	588,309
Others	56,265	27,096
	2,816,038	2,790,794

SHARE-BASED COMPENSATION - RSU Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Number of RSU shares
Unvested at beginning (in shares)	972,500	0
Granted (in shares)		988,750
Vested (in shares)	(234,688)
Forfeited (in shares)	(58,438)	(16,250)
Unvested at ending (in shares)	679,375	972,500
Weighted-Average Grant Date Fair Value
Unvested at beginning (in dollars per share)	$ 2.1	$ 0
Granted (in dollars per share)		2.1
Vested (in dollars per share)	2.1
Forfeited (in dollars per share)	2.1	2.1
Unvested at ending (in dollars per share)	$ 2.1	$ 2.1
Weighted Average Remaining Contractual Term
Unvested at beginning (in years)	2 years 6 months 21 days	3 years 6 months 21 days
Unvested at ending (in years)	2 years 6 months 21 days	3 years 6 months 21 days

LEASES - Information related to operating leases (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Assets
Operating lease right-of-use assets	$ 145,535	$ 283,645
Liabilities
Current portion of operating lease liabilities	92,055	141,341
Operating lease liabilities	$ 53,480	$ 142,304
Weighted average remaining lease term (years)	1 year 6 months	2 years 2 months 12 days
Weighted average discount rate	3.90%	3.90%

RESTRICTED NET ASSETS (Details) - USD ($)	12 Months Ended
RESTRICTED NET ASSETS (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
RESTRICTED NET ASSETS
Minimum percentage of profit after tax to be transferred to statutory reserve	10.00%
Statutory reserve required percentage on registered capital	50.00%
Total restricted net assets	$ 1,860,667	$ 1,860,667
After tax income, annual appropriations, percentage	10.00%
Restrictions on net assets of PRC subsidiaries , threshold percentage	25.00%

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	$ 8,563,423	$ 8,426,237
Less: accumulated depreciation and amortization	(7,846,049)	(7,300,848)
Net book value	717,374	1,125,389
Depreciation and amortization	438,864	722,950	$ 980,053
Machinery and laboratory equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	5,232,597	5,116,503
Leasehold improvements
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	1,054,204	1,030,798
Electronic equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	1,818,366	1,793,132
Furniture and tools
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	50,035	49,085
Vehicles
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	43,635	77,767
Software
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total property, equipment and software	$ 364,586	$ 358,952

SHARE-BASED COMPENSATION - Fair Value Of Share Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Assumptions used to estimate the fair value
Risk-free interest rate, minimum	4.22%	4.18%	3.38%
Risk-free interest rate, maximum	4.49%	4.59%	4.86%
Dividend yield	0.00%	0.00%	0.00%
Expected volatility range, minimum	76.40%	73.30%	72.60%
Expected volatility range, maximum	77.20%	75.60%	73.10%
Exercise multiple, minimum	$ 2.2	$ 2.2	$ 2.2
Exercise multiple, maximum	$ 2.8	$ 2.8	$ 2.8
Contractual life (in years)	10 years	10 years	10 years

BORROWINGS - Components (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Short-term borrowings:
Bank loans	$ 4,268,154	$ 4,868,956
Current portion of long-term borrowings	711,359	12,923,599
Total current borrowings	4,979,513	17,792,555
Long-term borrowings:
Bank loans	1,138,174	417,339
Total non-current borrowings	1,138,174	417,339
Total borrowings	$ 6,117,687	$ 18,209,894

BORROWINGS - Short term borrowings (Details) - CNY (¥)	1 Months Ended
BORROWINGS - Short term borrowings (Details) - CNY (¥)	Dec. 31, 2025	Jul. 31, 2025	Sep. 30, 2024	Jun. 30, 2024	Jul. 31, 2023	Mar. 31, 2023	Jan. 31, 2023	Dec. 31, 2022	Jul. 31, 2022	Apr. 30, 2022	Mar. 31, 2022
China Merchants Bank Co., Ltd
Short-term debt
Amount borrowed										¥ 20,100,000	¥ 9,900,000
Term of the debt										1 year	1 year
Interest rate (as a percent)										3.70%	3.90%
Borrowings from Bank of Jiangsu Co., Ltd
Short-term debt
Amount borrowed									¥ 20,000,000
Term of the debt									1 year
Interest rate (as a percent)									3.70%
China Construction Bank Corporation
Short-term debt
Amount borrowed		¥ 20,000,000		¥ 20,000,000				¥ 25,000,000
Term of the debt		1 year		1 year				1 year
Interest rate (as a percent)		3.50%		3.50%				3.65%
Borrowings from Bank of Ningbo Co., Ltd
Short-term debt
Amount borrowed			¥ 15,000,000		¥ 10,000,000		¥ 10,000,000
Term of the debt			1 year		1 year		1 year
Interest rate (as a percent)			3.80%		3.85%		3.90%
China Everbright Bank Corporation
Short-term debt
Amount borrowed						¥ 10,000,000
Term of the debt						1 year
Interest rate (as a percent)						3.80%
China Zheshang Bank Co., Ltd
Short-term debt
Amount borrowed	¥ 10,000,000
Term of the debt	1 year
Interest rate (as a percent)	2.95%

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 74,523,782	$ 85,194,502
Amounts due from related parties	$ 17,349	$ 8,309
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Prepayments and other current assets	$ 2,834,034	$ 2,575,194
Total current assets	77,375,165	87,778,005
Property, equipment and software, net	717,374	1,125,389
Operating lease right-of-use assets	145,535	283,645
Other non-current assets	25,223	81,386
TOTAL ASSETS	78,263,297	89,268,425
Current liabilities:
Accounts payable	2,884,507	4,241,773
Contract liabilities	3,462,683
Amounts due to related parties	$ 10,347,200	$ 13,187,966
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Accruals and other current liabilities	$ 2,790,794	$ 2,816,038
Income tax payable	410,198	5,265
Warrant liabilities	205,146
Short-term borrowings	4,268,154	4,868,956
Current portion of long-term borrowings	711,359	12,923,599
Current portion of operating lease liabilities	92,055	141,341
Total current liabilities	25,172,096	38,184,938
Long-term borrowings	1,138,174	417,339
Operating lease liabilities	53,480	142,304
TOTAL LIABILITIES	26,363,750	38,744,581
Commitments and contingencies
Mezzanine equity:
Series A non-voting contingently redeemable convertible preferred shares (par value of US$0.0001 per share; nil authorized, issued and outstanding as of December 31, 2024; and 1,062,500 shares authorized, issued and outstanding as of December 31, 2025)	16,550,000
Shareholders' equity:
Ordinary shares (par value of US$0.0001 per share; 640,000,000 shares authorized, and 58,886,944 shares issued and outstanding as of December 31, 2024; and 640,000,000 shares authorized, and 59,231,993 shares issued and outstanding as of December 31, 2025)	5,923	5,889
Additional paid-in capital	366,043,455	362,220,445
Accumulated other comprehensive loss	(1,914,831)	(526,903)
Accumulated deficit	(328,785,000)	(311,175,587)
Total shareholders' equity	35,349,547	50,523,844
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY	$ 78,263,297	$ 89,268,425

SEGMENT INFORMATION (Details)	12 Months Ended
SEGMENT INFORMATION (Details)	Dec. 31, 2025 segment
SEGMENT INFORMATION
Number of segments	1

WARRANT LIABILITIES (Details) - USD ($)	3 Months Ended	12 Months Ended
WARRANT LIABILITIES (Details) - USD ($)	Sep. 30, 2025	Dec. 31, 2025
WARRANT LIABILITIES
Cash consideration on warrants issued	$ 0
Maximum number of shares subscribed	1,000,000
Exercise price	$ 4	$ 4
Change in fair value of warrant liabilities		$ (47,941)
American depositary shares
WARRANT LIABILITIES
Exercise price	$ 5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenue
Licensing and collaboration revenue	$ 7,670,902	$ 103,204	$ 18,111,491
Operating expenses and income
Research and development expenses	(22,033,573)	(28,781,412)	(36,639,146)
Administrative expenses	(7,075,624)	(7,273,335)	(8,672,843)
Other operating income, net			3,480,632
Loss from operations	(21,438,295)	(35,951,543)	(23,719,866)
Interest and investment income	2,303,990	3,801,345	4,283,085
Interest expense	(463,132)	(851,874)	(1,107,820)
Other income, net	323,988	466,620	1,843,437
Foreign exchange gain (loss), net	1,318,235	(906,212)	1,446,202
Change in fair value of warrant liabilities	47,941
Loss before income tax	(17,907,273)	(33,441,664)	(17,254,962)
Income tax benefit (expense)	297,860	17,553	(1,691,408)
Net loss attributable to Adagene Inc.'s shareholders	(17,609,413)	(33,424,111)	(18,946,370)
Other comprehensive income (loss)
Foreign currency translation adjustments, net of nil tax	(1,387,928)	1,273,185	(950,783)
Total comprehensive loss attributable to Adagene Inc.'s shareholders	(18,997,341)	(32,150,926)	(19,897,153)
Net Income (Loss)	(17,609,413)	(33,424,111)	(18,946,370)
Net loss attributable to ordinary shareholders	$ (17,609,413)	$ (33,424,111)	$ (18,946,370)
Weighted average number of ordinary shares used in per share calculation:
Basic (in shares)	59,006,129	56,287,903	54,737,530
Diluted (in shares)	59,006,129	56,287,903	54,737,530
Net loss per ordinary share
Basic (in dollars per share)	$ (0.3)	$ (0.59)	$ (0.35)
Diluted (in dollars per share)	$ (0.3)	$ (0.59)	$ (0.35)

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES

12 Months Ended

Dec. 31, 2025

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES

8. CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES

In July 2025, the Company issued 1,062,500 Series A non-voting contingently redeemable convertible preferred shares (the “Series A Preferred Shares”) to Sanofi Foreign Participations B.V. (“Sanofi B.V.”) for a net consideration of US$16,550,000 reflecting an as-converted price of US$2.0 per ADS of the Company. The issuance of the Series A Preferred Shares is the first closing in connection with a securities purchase agreement signed between the Company and Sanofi B.V., under which Sanofi B.V. has agreed to make a strategic investment of up to US$25.0 million in Adagene in two closings. The first closing was completed in July 2025. The second closing is conditioned upon the Company’s achievement of certain clinical development progress.

The key features of the Series A Preferred Shares are as follows:

Dividends

Holders of the Series A Preferred Shares will be entitled to receive, only when, as and if declared by the Board of Directors, a dividend on each outstanding Series A Preferred Share equal to US$0.0001 per share, prior and in preference to any declaration or payment of any dividend on ordinary shares during the same calendar year. The right to receive dividends on Series A Preferred Shares is not cumulative. Following the payment of the preferential dividend, holders of the Series A Preferred Shares have the right to participate in any dividends paid on ordinary shares, calculated on an as-if-converted basis. No other dividends shall be paid on Series A Preferred Shares.

Voting

Holders of the Series A Preferred Shares have limited voting rights. They possess a protective vote requiring majority approval to adversely change their share rights, but otherwise hold no voting rights on Company matters.

Liquidation preference

In the event of a liquidation or deemed liquidation event, the Series A Preferred Shares carry a liquidation preference that remains in effect until the later of (i) December 31, 2027, or (ii) the public release of top-line data for ADG126. Before such date, holders of the Series A Preferred are entitled to a preferential payment per share before any distribution to ordinary shareholders. This amount is the greater of (i) the original purchase price plus any declared but unpaid dividends, or (ii) the amount they would receive if their shares were converted to ordinary shares immediately prior to the event. After receiving this full preferential amount, the holders of the Series A Preferred Shareholders do not participate in any further distributions. After such date, the holders of the Series A Preferred Shareholders participate alongside ordinary shareholders on a pro rata basis, as if their Series A Preferred Shares had been converted to ordinary shares immediately prior to the event.

Conversion

Holders of the Series A Preferred Shares have the right to convert each Series A Preferred Shares into 10 ordinary shares, subject to adjustment for share capitalizations, splits, combinations, or similar recapitalizations. The conversion is subject to a beneficial ownership limitation that generally restricts any holders of the Series A Preferred Shares (together with its affiliates) from owning more than 4.99% of the outstanding ordinary shares post-conversion, although a holder may elect to increase this limit up to 19.99% upon 61 days’ prior notice. All conversions are automatic, no fractional shares are issued, and the conversion mechanics are structured as a compulsory repurchase and re-application of proceeds.

Accounting for Series A Preferred Shares

The Series A Preferred Shares are classified as mezzanine equity in the consolidated balance sheets because they are contingently redeemable upon the occurrence of an event outside of the Company’s control. The deemed liquidation event includes events of merger or consolidation in which (i) the Company is a constituent party, or (ii) a subsidiary of the Company is a constituent party and the Company issues ordinary shares pursuant to such merger or consolidation; and such event is not in control of the Company. The Preferred Shares are recorded at their respective issuance date fair value, net of issuance cost.

The Company concluded that the Series A Preferred Shares were not currently redeemable, and were not probable to become redeemable as of December 31, 2025. Consequently, no accretion charge was recorded as the redemption value was fixed to original issue price for the year ended December 31, 2025.

The Company’s Series A Preferred Shares activities for the year ended December 31, 2025 are summarized below:


		Mezzanine equity
		US$
Balance as of December 31, 2024		—
Issuance of Series A Preferred Shares		16,550,000
Balance as of December 31, 2025		16,550,000

INCOME TAX EXPENSE - Income (loss) from domestic and foreign components (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Loss before income tax
Loss from PRC entities	$ (1,630,999)	$ (2,605,951)	$ (2,975,393)
Loss from overseas entities	(16,276,274)	(30,835,713)	(14,279,569)
Loss before income tax	$ (17,907,273)	$ (33,441,664)	$ (17,254,962)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

NET LOSS PER SHARE - Schedule of basic and diluted net loss per share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Numerator:
Net Income (Loss)	$ (17,609,413)	$ (33,424,111)	$ (18,946,370)
Net loss attributable to ordinary shareholders	$ (17,609,413)	$ (33,424,111)	$ (18,946,370)
Denominator:
Weighted average number of ordinary shares outstanding-basic (in shares)	59,006,129	56,287,903	54,737,530
Weighted average number of ordinary shares outstanding-diluted (in shares)	59,006,129	56,287,903	54,737,530
Net Loss per share-basic	$ (0.3)	$ (0.59)	$ (0.35)
Net Loss per share- diluted	$ (0.3)	$ (0.59)	$ (0.35)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

BORROWINGS

12 Months Ended

Dec. 31, 2025

BORROWINGS

BORROWINGS

6. BORROWINGS


	As of December 31,
	2024	2025
	US$	US$
Current
Short-term borrowings:
Bank loans	4,868,956	4,268,154
Current portion of long-term borrowings	12,923,599	711,359
Total current borrowings	17,792,555	4,979,513
Non-Current
Long-term borrowings:
Bank loans	417,339	1,138,174
Total non-current borrowings	417,339	1,138,174
Total borrowings	18,209,894	6,117,687

Short-term borrowings

In March 2022, the Group borrowed a loan with the amount of RMB9,900,000 from China Merchants Bank Co., Ltd. for a term of one year at the interest rate of 3.90% per annum. The borrowing was repaid in March 2023.

In April 2022, the Group borrowed another loan with the amount of RMB20,100,000 from China Merchants Bank Co., Ltd. for a term of one year at the interest rate of 3.70% per annum. The borrowing was repaid in April 2023.

In July 2022, the Group borrowed a loan with the amount of RMB20,000,000 from Bank of Jiangsu Co., Ltd. for a term of one year at the interest rate of 3.70% per annum. The borrowing was repaid in July 2023.

In December 2022, the Group borrowed a loan with the amount of RMB25,000,000 from China Construction Bank Corporation for a term of one year at the interest rate of 3.65% per annum. The borrowing was repaid in December 2023.

In January 2023, the Group borrowed a loan with the amount of RMB10,000,000 from Bank of Ningbo Co., Ltd for a term of one year at the interest rate of 3.90% per annum. The borrowing was repaid in January 2024.

In March 2023, the Group borrowed another loan with the amount of RMB10,000,000 from China Everbright Bank Co., Ltd for a term of one year at the interest rate of 3.80% per annum. The borrowing was repaid in April 2024.

In July 2023, the Group borrowed a loan with the amount of RMB10,000,000 from Bank of Ningbo Co., Ltd for a term of one year at the interest rate of 3.85% per annum. The borrowing was repaid in July 2024.

In June 2024, the Group borrowed a loan with the amount of RMB20,000,000 from China Construction Bank Corporation for a term of one year at the interest rate of 3.50% per annum. The borrowing was repaid in June 2025.

In September 2024, the Group borrowed a loan with the amount of RMB15,000,000 from Bank of Ningbo Co., Ltd for a term of one year at the interest rate of 3.80% per annum. The borrowing was repaid in September 2025.

In July 2025, the Group borrowed a loan with the amount of RMB20,000,000 from China Construction Bank Corporation for a term of one year at the interest rate of 3.50% per annum.

In December 2025, the Group borrowed a loan with the amount of RMB10,000,000 from China Zheshang Bank Co., Ltd for a term of one year at the interest rate of 2.95% per annum.

Long-term borrowings

In September 2020, the Group borrowed a loan with the amount of RMB16,500,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 4.27% per annum. The Group repaid RMB1,650,000 in 2021, RMB3,850,000 in 2022, and RMB11,000,000 in 2023. The loan was fully repaid in September 2023.

In September 2021, the Group borrowed a loan with the amount of RMB8,500,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 4.05% per annum. The Group repaid RMB425,000 in 2022, RMB850,000 in 2023, and RMB7,225,000 in 2024. The loan was fully repaid in September 2024.

In May 2022, the Group borrowed a loan with the amount of RMB30,000,000 from Agricultural Bank of China Limited for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB3,000,000 in 2023, RMB5,000,000 in 2024, and RMB22,000,000 in 2025. As of December 31, 2024, RMB22,000,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in May 2025.

Also in May 2022, the Group borrowed a loan with the amount of RMB20,000,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB500,000 in 2022, RMB1,500,000 in 2023, RMB9,500,000 in 2024 and RMB8,500,000 in 2025. As of December 31, 2024, RMB8,500,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the condensed consolidated balance sheets. The loan was fully repaid in May 2025.

In August 2022, the Group borrowed a loan with the amount of RMB9,900,000 from Agricultural Bank of China Limited for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB1,000,000 in 2023, RMB2,000,000 in 2024, and RMB6,900,000 in 2025. As of December 2024, RMB6,900,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in August 2025.

Also in August 2022, the Group borrowed a loan with the amount of RMB20,000,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB1,000,000 in 2023, RMB2,000,000 in 2024 and RMB17,000,000 in 2025. As of December 31, 2024, RMB17,000,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in August 2025.

In November 2022, the Group borrowed a loan with the amount of RMB9,900,000 from Agricultural Bank of China Limited for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB1,000,000 in 2023, RMB2,000,000 in 2024 and RMB6,900,000 in 2025. As of December 31, 2024, RMB6,900,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in November 2025.

Also in November 2022, the Group borrowed a loan with the amount of RMB10,000,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 4.00% per annum. The Group repaid RMB500,000 in 2023, RMB1,000,000 in 2024 and RMB8,500,000 in 2025. As of December 31, 2024, RMB8,500,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheet. The loan was fully repaid in November 2025.

In April 2023, the Group borrowed a loan with the amount of RMB7,000,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of three years at the interest rate of 3.90% per annum. The Group repaid RMB150,000 in 2023, RMB550,000 in 2024 and RMB3,300,000 in 2025. As of December 31, 2024 and 2025, RMB3,300,000 and RMB3,000,000 repayable within twelve months for this agreement were classified as “Current portion of long-term borrowing” on the consolidated balance sheets, respectively.

In August 2023, the Group borrowed a loan with the amount of RMB10,000,000 from Bank of Jiangsu Co., Ltd. for a term of eighteen months at the interest rate of 3.80% per annum. The Group repaid RMB100,000 in 2024 and RMB9,900,000 in 2025. As of December 31, 2024, RMB9,900,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in February 2025.

In September 2023, the Group borrowed a loan with the amount of RMB10,000,000 from Bank of Jiangsu Co., Ltd. for a term of eighteen months at the interest rate of 3.80% per annum. The Group repaid RMB100,000 in 2024 and RMB9,900,000 in 2025. As of December 31, 2024, RMB9,900,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets. The loan was fully repaid in March 2025.

In December 2025, the Group borrowed a loan with the amount of RMB10,000,000 from Shanghai Pudong Development Bank Co., Ltd. for a term of two years at the interest rate of 2.80% per annum. As of December 31, 2025, RMB2,000,000 repayable within twelve months for this agreement was classified as “Current portion of long-term borrowing” on the consolidated balance sheets.

The proceeds from the loans were primarily used to pay for the Group’s research and development activities in PRC, including chemistry, manufacturing, and controls costs of clinical and preclinical programs. As of December 31, 2024 and 2025, none of the Group’s borrowings were collateralized in the respective loan agreements.

Future maturities of short-term borrowings and long-term borrowings

Future principal maturities of short-term borrowings and long-term borrowings as of December 31, 2025 were as follows:


		As of December 31,
		2025
		US$
2026		4,979,513
2027		1,138,174
		6,117,687

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

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-Topic 235
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-Paragraph 1
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-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

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+ Details

LEASES

12 Months Ended

Dec. 31, 2025

LEASES

LEASES

15. LEASES

As of December 31, 2024 and 2025, the Group has operating leases recorded on its consolidated balance sheets for certain office spaces that expire on various dates through 2027. The Group does not plan to cancel the existing lease agreements for its existing office spaces prior to their respective expiration dates. The Group’s lease arrangements have no renewal options, rent escalation clauses, restrictions or contingent rents and are all executed with third parties. All of the Group’s leases qualify as operating leases.

Information related to operating leases as of December 31, 2024 and 2025 is as follows:


		As of December 31,
		2024		2025
		US$		US$
Assets
Operating lease right-of-use assets		283,645		145,535
Liabilities
Current portion of operating lease liabilities		141,341		92,055
Operating lease liabilities		142,304		53,480
Weighted average remaining lease term (years)		2.2		1.5
Weighted average discount rate		3.9	%	3.9	%

Information related to operating lease activity during the years ended December 31, 2023, 2024 and 2025 is as follows:


	For the Year Ended December 31,
	2023	2024		2025
	US$	US$		US$
Operating lease rental expense
Amortization of right-of-use assets	216,305	203,298		142,238
Expense for short-term leases within 12 months	13,514	23,734		53,661
Interest of lease liabilities	12,100	12,613		8,689
	241,919	239,645		204,588

Maturities of lease liabilities were as follows:


		As of December 31,
		2024		2025
2025		149,975		—
2026		93,734		95,863
2027		53,116		54,322
Total undiscounted lease payments		296,825		150,185
Less: imputed interest		(13,180)		(4,650)
Total lease liabilities		283,645		145,535

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES - Activity during the period (Details)	12 Months Ended
	Dec. 31, 2025 USD ($)
Increase (Decrease) in Temporary Equity
Issuance of Series A Preferred Shares	$ 16,550,000
Ending balance	$ 16,550,000

- Definition

Carrying amount, attributable to parent, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

+ References

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+ Details

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2025

SEGMENT INFORMATION

Schedule of disaggregated amounts of research and development expenses


		For the years ended December 31,
		2023		2024		2025
		US$		US$		US$
Direct research and development expenses^(a)		13,114,341		10,399,305		6,962,065
Indirect research and development expenses^(b)
Payroll and other related costs of personnel		18,491,694		14,488,811		11,493,983
Lab supplies and other research and development expenses		5,033,111		3,893,296		3,577,525
Total indirect research and development expenses		23,524,805		18,382,107		15,071,508
Total research and development expenses		36,639,146		28,781,412		22,033,573

PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2025

PREPAYMENTS AND OTHER CURRENT ASSETS

Summary of prepayments and other current assets


		As of December 31,
		2024		2025
		US$		US$
Prepayments		269,075		310,966
Deposits (a)		1,778,413		1,320,313
Others		527,706		1,202,755
		2,575,194		2,834,034

INCOME TAX EXPENSE - Income tax expense (benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Current:
Federal	$ (604,462)	$ (18,521)	$ 1,502,796
State and local	306,602	968	188,612
Total current	(297,860)	(17,553)	1,691,408
Income tax expense (benefit)	$ (297,860)	$ (17,553)	$ 1,691,408

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

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+ Details

CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES (Details)	1 Months Ended	12 Months Ended
	Jul. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2025 USD ($) item $ / shares
CONTINGENTLY REDEEMABLE CONVERTIBLE PREFERRED SHARES
Number of new shares issued \| shares	1,062,500
Net consideration	$ 16,550,000	$ 16,550,000
Converted price (in dollars per share) \| $ / shares	$ 2
Strategic investment	$ 25,000,000
Dividend per share (in dollars per share) \| $ / shares		$ 0.0001
Number of shares receivable on conversion \| item		10
Maximum ownership percentage		4.99%
Temporary ownership increase limit (in percentage)		19.99%
Notice period		61 days
Accretion of convertible redeemable preferred shares to redemption value		$ 0

NET LOSS PER SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
NET LOSS PER SHARE
Incremental shares on share options, share grant, RSU grant, Series A Preferred Shares and warrants	10,933,676	1,554,057	52,942

PROPERTY, EQUIPMENT AND SOFTWARE, NET

12 Months Ended

Dec. 31, 2025

PROPERTY, EQUIPMENT AND SOFTWARE, NET

PROPERTY, EQUIPMENT AND SOFTWARE, NET

4. PROPERTY, EQUIPMENT AND SOFTWARE, NET

Property, equipment and software consisted of the following:


		As of December 31,
		2024		2025
		US$		US$
Machinery and laboratory equipment		5,116,503		5,232,597
Leasehold improvements		1,030,798		1,054,204
Electronic equipment		1,793,132		1,818,366
Furniture and tools		49,085		50,035
Vehicles		77,767		43,635
Software		358,952		364,586
Total property, equipment and software		8,426,237		8,563,423
Less: accumulated depreciation and amortization		(7,300,848)		(7,846,049)
Net book value		1,125,389		717,374

Depreciation and amortization expenses recognized for the years ended December 31, 2023, 2024 and 2025 were US$980,053, US$722,950 and US$438,864 respectively.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net loss	$ (17,609,413)	$ (33,424,111)	$ (18,946,370)
Adjustments to reconcile net loss to net cash used in operating activities:
Income related to short-term investments	(492,456)	(1,143,538)
Depreciation and amortization	438,864	722,950	980,053
Net loss on disposal of property, equipment, software and operating lease right-of-use asset	1,469	2,473	9,365
Share-based compensation	3,741,548	4,909,573	7,271,700
Amortization of right-of use assets and interest of lease liabilities	150,927	215,911	228,405
Foreign exchange loss (gain), net	(1,318,235)	906,212	(1,446,202)
Administrative expense in exchange of warrant issuance	253,087
Change in fair value of warrant liabilities	(47,941)
Changes in operating assets and liabilities:
Prepayments and other current assets	(270,823)	724,235	1,649,878
Amount due from related parties	(9,040)	213,718	397,405
Other non-current assets	56,163	3,499	24,687
Accounts payable	(1,357,266)	1,148,021	(572,372)
Contract liabilities	3,462,683		(15,107,276)
Amount due to related parties	(2,840,766)	(3,526,360)	(2,609,011)
Accruals and other current liabilities	(70,225)	(185,489)	(122,201)
Lease liabilities	(150,959)	(220,460)	(237,401)
Income tax payable	404,933	(47,619)	52,884
Other non-current liabilities			(28,383)
Net cash used in operating activities	(15,657,450)	(29,700,985)	(28,454,839)
Cash flows from investing activities:
Placement of short-term investments	(80,000,000)	(128,500,000)	(47,000,000)
Withdrawal of short-term investments	80,492,456	129,643,538	47,000,000
Proceeds from disposal of property, equipment and software	1,400	169	7,656
Purchase of property, equipment and software	(17,053)	(33,580)	(85,012)
Net cash generated from (used in) investing activities	476,803	1,110,127	(77,356)
Cash flows from financing activities:
Proceeds from borrowings	5,635,488	4,918,014	8,133,775
Proceeds from issuance of Series A non-voting contingently redeemable convertible preferred shares, net of issuance costs	16,550,000
Proceeds from exercise of share options	138,279	178,254	5,500
Proceeds from the ATM Offering, net of issuance costs		7,331,019
Repayment of borrowings	(17,878,393)	(8,342,510)	(13,506,221)
Payment of the ATM Offering setup costs		(315,557)
Net cash generated from (used in) financing activities	4,445,374	3,769,220	(5,366,946)
Effect of exchange rate on cash and cash equivalents	64,553	81,883	74,720
Net decrease in cash and cash equivalents	(10,670,720)	(24,739,755)	(33,824,421)
Cash and cash equivalents at the beginning of year	85,194,502	109,934,257	143,758,678
Cash and cash equivalents at the end of year	74,523,782	85,194,502	109,934,257
Supplemental cash flow disclosures:
Interest paid	402,956	778,513	1,047,717
Income tax paid	1,602	33,947	1,376,856
Cash paid for fixed operating lease costs included in the measurement of lease obligations in operating activities	$ 150,959	216,565	225,542
Right-of-use assets obtained in exchange for operating lease obligations		214,717	$ 179,919
Non-cash activities:
Retirement of treasury shares		$ 4

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Ordinary shares	Treasury shares	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit	Total
Balance at the beginning at Dec. 31, 2022	$ 5,497	$ (4)	$ 342,739,268	$ (849,305)	$ (258,805,106)	$ 83,090,350
Balance at the beginning (in shares) at Dec. 31, 2022	54,965,710
Balance at the beginning, Treasury shares (in shares) at Dec. 31, 2022		(1)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Net loss					(18,946,370)	(18,946,370)
Other comprehensive income (loss)				(950,783)		(950,783)
Exercise of share options (Note 9)	$ 1		5,499			$ 5,500
Exercise of share options (Note 9) (in shares)	10,000					10,000
Issuance of ordinary shares under performance incentive plan (Note 9)	$ 7		89,093			$ 89,100
Issuance of ordinary shares under performance incentive plan (Note 9) (in shares)	69,225
Share-based compensation (Note 9)	$ 42		7,271,658			7,271,700
Share-based compensation (Note 9) (in shares)	425,905
Balance at the end (in shares) at Dec. 31, 2023	55,470,840
Balance at the end at Dec. 31, 2023	$ 5,547	$ (4)	350,105,518	(1,800,088)	(277,751,476)	70,559,497
Balance at the end, Treasury shares (in shares) at Dec. 31, 2023		(1)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Net loss					(33,424,111)	(33,424,111)
Other comprehensive income (loss)				1,273,185		1,273,185
Exercise of share options (Note 9)	$ 19		190,219			$ 190,238
Exercise of share options (Note 9) (in shares)	185,620					185,620
Share-based compensation (Note 9)	$ 10		4,909,563			$ 4,909,573
Share-based compensation (Note 9) (in shares)	99,623
Issuance of ordinary shares upon the at-the-market equity offering (the "ATM Offering"), net of issuance cost (Note 19)	$ 313		7,015,149			7,015,462
Issuance of ordinary shares upon the at-the-market equity offering (the "ATM Offering"), net of issuance cost (Note 19) (in shares)	3,130,862
Retirement of treasury shares (Note 18)		$ 4	(4)
Retirement of treasury shares (Note 18) (in shares)	(1)	(1)
Balance at the end (in shares) at Dec. 31, 2024	58,886,944
Balance at the end at Dec. 31, 2024	$ 5,889		362,220,445	(526,903)	(311,175,587)	50,523,844
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Net loss					(17,609,413)	(17,609,413)
Other comprehensive income (loss)				(1,387,928)		(1,387,928)
Exercise of share options (Note 9)	$ 8		81,488			$ 81,496
Exercise of share options (Note 9) (in shares)	86,469					86,469
Share-based compensation (Note 9)	$ 26		3,741,522			$ 3,741,548
Share-based compensation (Note 9) (in shares)	258,580
Balance at the end (in shares) at Dec. 31, 2025	59,231,993
Balance at the end at Dec. 31, 2025	$ 5,923		$ 366,043,455	$ (1,914,831)	$ (328,785,000)	$ 35,349,547

COLLABORATION ARRANGEMENTS (Details)	1 Months Ended	12 Months Ended
COLLABORATION ARRANGEMENTS (Details)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CNY (¥)	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Feb. 28, 2021 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative
Revenues		$ 7,670,902	$ 103,204	$ 18,111,491
Guilin Sanjin Pharmaceutical Co., Ltd. License Agreement
Collaborative Arrangement and Arrangement Other than Collaborative
Upfront cash payment received \| ¥	¥ 10,000,000
Agreed period for not to grant rights associated with antibodies to third parties	3 years
Dragon Boat Biopharmaceutical (Shanghai) Limited License Agreement
Collaborative Arrangement and Arrangement Other than Collaborative
Agreed period for not to grant rights associated with antibodies to third parties		3 years
Upfront fee received \| ¥							¥ 4,000,000
Milestone fee received \| ¥							¥ 4,000,000
Revenues		$ 0	0	0
Exelixis Inc Agreement
Collaborative Arrangement and Arrangement Other than Collaborative
Upfront cash payment received					$ 8,500,000	$ 11,000,000
Upfront fee received				5,500,000
Milestone fee received				3,000,000
Revenues		0	$ 0	9,600,000		$ 1,100,000
Payment of upfront-refundable fee								$ 1,100,000		$ 11,000,000
Milestone payments receivable based on development and regulatory milestones										127,500,000
Milestone payments receivable based on sales										$ 262,500,000
Milestone payment received				3,000,000	3,000,000
Exelixis Inc Agreement \| Delivery of data packages and achievement of initial target milestone
Collaborative Arrangement and Arrangement Other than Collaborative
Revenues				8,500,000
Exelixis Inc Agreement \| Delivery of additional masked antibodies
Collaborative Arrangement and Arrangement Other than Collaborative
Revenues				$ 1,100,000
Sanofi Agreement
Collaborative Arrangement and Arrangement Other than Collaborative
Upfront cash payment received					$ 17,500,000
Revenues		2,149,817
Payment of upfront-refundable fee									$ 17,500,000
Percentage of revenue					100
Milestone payments receivable based on development and regulatory milestones									173,500,000
Milestone payments receivable based on sales									$ 450,000,000
Third Arc Agreement
Collaborative Arrangement and Arrangement Other than Collaborative
Upfront cash payment received		5,000,000
Payment of upfront-refundable fee		5,000,000
Commercial based milestone		$ 840,000,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2025	Dec. 31, 2024
CONSOLIDATED BALANCE SHEETS
Convertible redeemable preferred shares, par value	$ 0.0001	$ 0.0001
Convertible redeemable preferred shares, shares authorized	1,062,500	0
Convertible redeemable preferred shares, shares issued	1,062,500	0
Convertible redeemable preferred shares, shares outstanding	1,062,500	0
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	640,000,000	640,000,000
Ordinary shares, shares issued	59,231,993	58,886,944
Ordinary shares, shares outstanding	59,231,993	58,886,944

Pay vs Performance Disclosure - USD ($)	12 Months Ended
Pay vs Performance Disclosure - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (17,609,413)	$ (33,424,111)	$ (18,946,370)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

ATM OFFERING

12 Months Ended

Dec. 31, 2025

ATM OFFERING

ATM OFFERING

19. ATM OFFERING

In March 2024, the Company entered into a sales agreement with Leerink Partners LLC relating to the sale of the Company’s ADSs. A prospectus supplement was filed with the Securities and Exchange Commission for the sale of ADSs having an aggregate offering price of up to US$100 million from time to time. A total of 33 million ADSs (41.25 million ordinary shares) were authorized to sale in accordance with the sales agreement.

During the year ended December 31, 2024, 2,504,692 ADSs (3,130,862 ordinary shares) were issued and sold under the ATM Offering and the proceeds were received by the Company. Direct cost associated with the offer and the sale were capitalized and netted against additional paid-in capital. During the year ended December 31, 2025, no ADSs were issued or sold under the ATM Offering.

In March 2026, additional ADSs were issued and sold under the ATM Offering.

- Definition

The entire disclosure for equity.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

COLLABORATION ARRANGEMENTS

12 Months Ended

Dec. 31, 2025

COLLABORATION ARRANGEMENTS

COLLABORATION ARRANGEMENTS

11. COLLABORATION ARRANGEMENTS

Guilin Sanjin Pharmaceutical Co., Ltd. License Agreement

In December 2018, the Group entered into (i) a collaboration agreement (the “Sanjin Greater China Agreement”) that covers Greater China with Guilin Sanjin Pharmaceutical Co., Ltd. (“Sanjin”) and certain of its subsidiaries (collectively, “Sanjin Parties”) and (ii) a collaboration agreement (the “Sanjin ROW Agreement”, together with the Sanjin Greater China Agreement, the “2018 Sanjin Agreements”) that covers the regions other than Greater China with Sanjin. Pursuant to the Sanjin Greater China Agreement, the Group licensed the Chinese intellectual property directly related to a monospecific antibody molecule that binds to the PD-L1 target (the “PD-L1 Project”), including patent rights, patent application rights and technologies based on the core sequence of the molecule, to Sanjin Parties. Sanjin Parties will own all the Chinese intellectual property developed in the exercise of Sanjin Parties’ rights under the agreement, including but not limited to improvements (including combination products), clinical trials, regulatory filings, and commercialization rights relating thereto. The Group also granted Sanjin Parties a royalty-free license to use our other existing intellectual property and improvements thereto which are related to the PD-L1 Project for the purposes of exploiting its rights and performing its obligations under the agreement. Sanjin Parties will enjoy all the economic benefits deriving from the PD-L1 Project in Greater China, including but not limited to patent transfer fee, licensing fee, sales revenue and sales commission, etc. Sanjin Parties will pay the Group (i) single-digit percentage of net sales of the products that use the licensed antibody after such products enter the market and (ii) a low to mid-low double-digit percentage of the profits resulting from any transfer of the license to any third parties depending on the timing of the transfer relative to the development stage of the product. The Group also received RMB10,000,000 upfront fee upon the effectiveness of the agreement from Sanjin Parties, which was recognized as revenue in 2018. No revenues related to this agreement has been recognized in any of the years presented in the accompanying financial statements.

Pursuant to the Sanjin ROW Agreement, the Group granted Sanjin a royalty-free license to use all intellectual property relating to (i) the collaboration under the agreement that the Group controlled before the Group entered into the agreement or acquired independently of the agreement and (ii) improvements thereto for the purposes of exploiting its rights and performing its obligations under the agreement. Any intellectual property generated independently by a party under the agreement will be solely owned by that party who generated such intellectual property, and any intellectual property generated from cooperation between the Group and Sanjin’s affiliates in connection with the collaboration will be jointly owned. The Group retain the ownership of patent rights of key intellectual property pertaining to PD-L1 outside of the Greater China. In addition, all the results obtained by Sanjin relating to the research and development of any new antibody developed under the agreement will be owned by Sanjin. The Group retain a majority of the economic benefits derived from the Sanjin ROW Agreement, including but not limited to any patent transfer fee, licensing fee and gains realized under such transfer. In case the Group intend to transfer to a third party our share of economic interests in any country outside of Greater China, the Group must notify Sanjin and Sanjin will receive a right of first refusal if it pays the Group a deposit equal to a low double-digit percentage of the consideration that the Group expect to receive from such third party. If Sanjin waives the right of first refusal, the Group can proceed with the transfer, provided that the final transaction price with the third party is not lower than the amount of the offering price that was included in the Group’s notice to Sanjin.

The Group agreed not to (i) independently develop any monospecific antibodies that bind to the PD-L1 target or (ii) grant any rights associated with such antibodies to any third parties during the three-year period from the effective date of the agreement. The exclusivity obligation does not prevent the Group from (i) developing or granting any licenses to third parties for intellectual property that covers bispecific antibodies, ADCs, diagnostic antibodies, nano-particles and masked antibody against PD-L1 target and (ii) continuing to provide antibody screening service that were commenced before the execution of the Sanjin Greater China Agreement and either party has the independent right to conduct combination therapy studies outside of the Greater China. Either non-breaching party may terminate the 2018 Sanjin Agreements if the other party’s ability to comply with its respective obligations under the agreements is negatively affected by contingencies such as failure to maintain operation or changes in core project management and the other party fails to take effective remedial measures. Each agreement automatically terminates upon the termination of the other agreement. Upon the rescission or termination, Sanjin Parties will return to the Group all the intellectual property, documents and data provided by the Group under the 2018 Sanjin Agreements.

In the event that the failure of the development of the product candidate solely arises from the Group’s research and development basis specified under this agreement, Sanjin has the right to claim back all the payment made to the Group. The Group considers the possibility of occurrence of such event is remote.

Dragon Boat Biopharmaceutical (Shanghai) Limited License Agreement

In May 2019, the Group entered into (i) a collaboration agreement that covers Greater China (the “Dragon Boat Greater China Agreement”) and (ii) a collaboration agreement that covers the regions other than Greater China (the “Dragon Boat ROW Agreement,” together with the Dragon Boat Greater China Agreement, the “2019 Dragon Boat Agreements”), with Dragon Boat Biopharmaceutical (Shanghai) Limited (“Dragon Boat”), a subsidiary of Sanjin. Pursuant to the Dragon Boat Greater China Agreement, the Group will license the Chinese intellectual property directly related to a certain monospecific antibody molecule that binds to a specified target (the “Specified Project”), including the patent rights, patent application rights and technologies based on the core sequence of the molecule, to Dragon Boat. Dragon Boat will own all the Chinese intellectual property developed in the exercise of Dragon Boat’s rights under the agreement, including but not limited to improvements (including combination products), clinical trials, regulatory filings, and commercialization rights relating thereto. The Group also granted Dragon Boat a royalty-free license to use our other existing intellectual property and improvements thereto which are related to the Specified Project for the purposes of exploiting its rights and performing its obligations under the agreement. Dragon Boat will enjoy all the economic benefits deriving from the Specified Project in Greater China, including but not limited to patent transfer fee, licensing fee, sales revenue and sales commission, etc. and will pay the Group (i) certain high-six figure dollar milestone payments upon the achievement of certain milestones (including milestones of launch of pre-clinical safety evaluation animal test, obtaining Investigational New Drug (“IND”) approval in PRC and completion of clinical phase I test in PRC) and (ii) a single-digit percentage of net sales of the products that use the licensed antibody after such products enter the market.

Pursuant to the Dragon Boat ROW Agreement, the Group granted Dragon Boat a royalty-free license to use all intellectual property relating to (i) the collaboration under the agreement that the Group controlled before the Group entered into the agreement or acquired independently of the agreement and (ii) improvements thereto for the purposes of exploiting its rights and performing its obligations under the agreement. Any intellectual property generated independently by a party under the agreement will be solely owned by that party who generated such intellectual property, and any intellectual property generated from cooperation between the Group and Dragon Boat in connection with the collaboration will be jointly owned. The Group retain the ownership of patent rights of key intellectual property pertaining to the specified target outside of the Greater China. In addition, all the results obtained by Dragon Boat relating to the research and development of any new antibody developed under the agreement will be owned by Dragon Boat. The Group retains a majority of the economic benefits derived from the Dragon Boat ROW Agreement, including but not limited to any patent transfer fee, licensing fee and gains realized under such transfer. In case the Group intend to transfer to a third party our share of economic interests in any country outside of Greater China, the Group must notify Dragon Boat and Dragon Boat will receive a right of first refusal if it pays the Group a deposit equal to a low double-digit percentage of the consideration that the Group expects to receive from such third party. If Dragon Boat waives the right of first refusal, the Group can proceed with the transfer, provided that the final transaction price with the third party is not lower than the amount of the offering price that was included in our notice to Dragon Boat.

Under the 2019 Dragon Boat Agreements, the Group agreed not to (i) independently develop any monospecific antibodies that bind to the specified target or (ii) grant any rights associated with such antibodies to any third parties during the three-year period from the effective date of the agreements. The exclusivity obligation does not prevent the Group from (i) developing or granting any licenses to third parties for intellectual property that covers bispecific antibodies, ADCs, diagnostic antibodies, nano-particles and masked antibody against the specific target and (ii) continuing to provide antibody screening service that were commenced before the execution of the Dragon Boat Greater China Agreement and either party has the independent right to conduct combination therapy studies outside of the Greater China. Either nonbreaching party may terminate the 2019 Dragon Boat Agreements if the other party’s ability to comply with its obligations under the agreements is negatively affected by contingencies such as failure to maintain operation or changes in core project management and the other party fails to take effective remedial measures. Each agreement automatically terminates upon the termination of the other agreement. Upon the rescission or termination, Dragon Boat will return to the Group all the intellectual property, documents and data provided by the Group under the 2019 Dragon Boat Agreements.

In the event that the failure of the development of the product candidate solely arises from the Group’s research and development basis specified under this agreement, Dragon Boat has the right to claim back all the payment made to the Group. The risk of failure is considered remote upon recognition of revenue.

Prior to 2023, the Group received upfront fee of RMB4,000,000 and milestone fee of RMB4,000,000, which were recognized as licensing revenue as the performance obligation was satisfied by the Group and certain milestone events were achieved.

No additional revenue was recognized for the years ended December 31, 2023, 2024 and 2025.

Exelixis, Inc. Agreements

In February 2021, the Group entered into a collaboration and license agreement (the “Exelixis Agreement”) with Exelixis, Inc. (“Exelixis”), pursuant to which the Group agreed to generate masked antibodies with its SAFEbody technology against an initial target selected and a second target to be selected by Exelixis. The Group will generate masked antibodies in the form of alternative compounds in accordance with the program plan for each target at its own cost and deliver the related data packages to Exelixis. Exelixis will select lead compounds (the “Lead Compounds”) to further develop, obtain regulatory approval and commercialize product(s) for each target (the “Products under the Exelixis Agreement”). Under the Exelixis Agreement, the Group will also grant Exelixis an exclusive, worldwide, sublicensable license (the “Adagene License”) upon delivery of the data package to research, develop, make, have made, sell, offer for sale, import and commercialize products containing the masked antibodies to be generated by the Group with respect to both targets. Exelixis will own the inventions relating to the Lead Compounds arising in connection with the Exelixis Agreement.

The Exelixis Agreement will remain effective until the expiration of the defined royalty terms of the Products under the Exelixis Agreement, unless terminated by either party. Exelixis may terminate the Exelixis Agreement for any or no reason, in its entirety or on a target-by-target basis. Any payment received by the Group before the termination shall be non-refundable.

Under the Exelixis Agreement, Exelixis agreed to pay the Group an upfront non-refundable fee of US$11,000,000. For each target, the Group will be eligible to receive up to US$127,500,000 of milestone payments conditioned upon achieving certain development and regulatory approval milestones, and up to $262,500,000 of sales-based milestone payments. In addition, the Group is also entitled to royalties of mid-single-digit percentage in respect of the aggregate annual net sales of the products developed under the Exelixis Agreement worldwide, subject to certain reductions.

In April 2022, the Group entered in a letter agreement (the “Exelixis Letter Agreement”) in reference to the Exelixis Agreement with Exelixis for expanded collaboration in SAFEbody discovery. Under the Exelixis Letter Agreement, the Group will generate additional masked antibodies against the target selected by Exelixis per the Exelixis Agreement. Exelixis agreed to pay the Group an additional upfront non-refundable fee of US$1,100,000.

In September 2025, the Group entered into an amendment to the Exelixis Agreement (the “Exelixis Amendment”). Under the Exelixis Amendment, the Group will generate a masked monoclonal antibody utilizing the SAFEbody technology for an additional target selected by Exelixis. The Group is eligible to receive development and commercialization milestones and royalties on net sales of products developed around this third target, in terms similar to the Exelixis Agreement. Exelixis agreed to pay the project fee for the generation of the additional antibody in two installments, one upon execution of the Exelixis Amendment, and the other upon delivery of the data package for this third target to Exelixis, subject to receipt of the applicable invoices from the Group.

The Group determined that generating masked antibodies with its SAFEbody technology is reflective of a vendor-customer relationship and therefore within the scope of ASC 606. Under the Exelixis Agreement, the delivery of data packages for each target, along with the Adagene License used to develop the related compounds, represents one performance obligation, as they are not distinct from each other. Transaction price is allocated to each one of the two performance obligations using the relative standalone selling price method. The Group records revenue at a point in time, when the data packages for each target were delivered to Exelixis. Considering that the development, regulatory and sales-based milestone payments and the royalties are constrained, the transaction price shall initially only include upfront payment and the milestone payments that are considered probable. Subsequently, once the uncertainty associated with the milestone payments is resolved, the milestone payments shall be included in the total transaction price when it is no longer probable that a significant reversal of cumulative revenue would occur in future periods. The sales-based royalty and sales-based milestones promised in exchange for the Adagene License granted are recognized when (or as) the later of (1) the subsequent sale or usage occurs, or (2) the performance obligation to which some or all of the sales-based royalty or sales-based milestones being allocated has been satisfied (or partially satisfied). Under the Exelixis Amendment, the delivery of data packages for the third target, along with the Adagene License used to develop the related compounds, represents one performance obligation. Revenue will be recognized at a point in time upon delivery of the data package for the third target for the same reasons as discussed above.

Prior to 2023, the Group received US$11,000,000 upfront payment upon execution of the Exelixis Agreement, US$1,100,000 upfront payment under the Exelixis Letter Agreement, and milestone fee of US$3,000,000 related to the successful nomination of lead SAFEbody candidates for the initial target under the Exelixis Agreement. The Group recognized total revenue of US$8,500,000 upon delivery of data packages for the initial target and achievement of the milestone event under the Exelixis Agreement.

For the year ended December 31, 2023, the Group received US$3,000,000 milestone payment, which corresponded to the successful nomination of lead SAFEbody candidates for the second target under the Exelixis Agreement. A total of US$9,600,000 was recognized as revenue in 2023, which included a) US$8,500,000 upon delivery of data packages for the second target and achievement of the milestone event for the second target under the Exelixis Agreement including the US$5,500,000 upfront fee and the aforementioned milestone fee of US$3,000,000, and b) US$1,100,000 upon delivery of additional masked antibodies under the Exelixis Letter Agreement.

For the year ended December 31, 2025, the Group received the first installment payment upon the execution of the Exelixis Amendment. No revenue was recognized for the years ended December 31, 2024 and 2025.

Sanofi Agreement

In March 2022, the Group entered into a collaboration and license agreement (the “Sanofi Agreement”) with Genzyme Corporation, a wholly-owned subsidiary of Sanofi (“Sanofi”), pursuant to which the Group agreed to perform early-stage research activities to develop masked versions of Sanofi candidate antibodies (each a “Target”, and together, “Targets”), using the Group’s SAFEbody technology for development and commercialization by Sanofi. Sanofi has the ability to advance two initial Targets in the collaboration, followed by an option for two additional Targets. The Group will generate masked antibodies in the form of customized compounds and complete the compound research activities in accordance with the program plan for each Target at its own cost and deliver the compounds and related data packages to Sanofi. Sanofi is solely responsible for later stage research and all clinical, product development and commercialization activities. Under the Sanofi Agreement, the Group granted Sanofi an exclusive, worldwide, sublicensable license to research, develop, use, make, have made, sell, offer for sale, import and commercialize products containing the masked antibodies to be generated by the Group.

The Sanofi Agreement will remain effective until the expiration of the defined royalty on a product-by-product and country-by-country basis, unless terminated earlier with cause or by mutual agreements of both parties. Sanofi may terminate the Sanofi Agreement without cause, in its entirety, or on a Target-by-Target or country-by-country basis.

Under the Sanofi Agreement, Sanofi agreed to pay the Group an upfront non-refundable fee of US$17,500,000 in consideration of the license granted and the early-stage research activities to generate the compounds. Sanofi is obligated to pay an additional fee if Sanofi exercises the option for additional Targets. For each Target, the Group will be eligible to receive up to US$173,500,000 of milestone payments conditioned upon achieving certain development and regulatory approval milestones, and up to $450,000,000 of sales-based milestone payments. In addition, the Group is also entitled to royalties of mid-single-digit percentage in respect of the aggregate annual net sales of the products developed under the Sanofi Agreement worldwide, subject to certain reductions.

In June 2025, the Group entered into an amended and restated agreement with Sanofi (the “Amended Sanofi Agreement”), under which, Sanofi exercised its option to select an additional Target for further development. The Group will generate masked antibodies and complete the compound research activities in accordance with a program plan for this third Target. Sanofi has the right to initiate one additional research program for one additional Target for a fee. Sanofi also has the one-time right to replace the third Target and each additional Target added pursuant to the option right for additional costs. In addition to the option exercise fee, the Group is also eligible to receive development and sales-based milestones and royalties on net sales of products developed around the third Target.

The Group determined that this collaboration is more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. Under the Sanofi Agreement, the performance of early-stage research activities to develop compounds for each Target, along with the grant of the license, represents one performance obligation, as they are not distinct from each other. Transaction price is allocated to each one of the two performance obligations based on the relative standalone selling price. Since the early-stage research activities does not generate an asset for alternative use and the Group has an enforceable right to the upfront payment, the Group records revenue over time using labor hour as the input to assess the satisfaction of the performance obligations. Considering that the development, regulatory and sales-based milestone payments and the royalties are constrained, the transaction price shall initially only include upfront payment and the milestone payments that are considered probable. Subsequently, once the uncertainty associated with the milestone payments is resolved, the milestone payments shall be included in the total transaction price when it is no longer probable that a significant reversal of cumulative revenue would occur in future periods. The sales-based royalty and sales-based milestones promised in exchange for the license granted are recognized when (or as) the later of (1) the subsequent sale or usage occurs, or (2) the performance obligation to which some or all of the sales-based royalty or sales-based milestones being allocated has been satisfied (or partially satisfied). Under the Amended Sanofi Agreement, the performance of early-stage research activities to develop compounds for the third Target, along with the grant of the license, represents one additional performance obligation. Revenue will be recognized over time using labor hour as the input to assess the satisfaction of the performance obligation for the same reasons as discussed above.

Prior to 2023, the Group received US$17,500,000 upfront payment under the Sanofi Agreement. 100% of the upfront payment was recognized as revenue over time using the input method in 2022 and 2023.

For the year ended December 31, 2024, no additional revenue was recognized.

For the year ended December 31, 2025, the Group received the option exercise payment under the Amended Sanofi Agreement and recognized part of the option exercise payment as revenue over time using the input method. The revenue recognized during the year ended December 31, 2025 was US$2,149,817, which represented a portion of the option exercise payment received.

ConjugateBio Agreement

In July 2025, the Group entered into a license agreement (the “ConjugateBio Agreement”) with ConjugateBio Inc. (“ConjugateBio”), pursuant to which the Group agreed to grant an exclusive license of its proprietary antibody to ConjugateBio. ConjugateBio will use the antibody and the associated license for the development, manufacture and commercialization of compounds and pharmaceutical products containing or comprising the compounds. ConjugateBio has the sole right and responsibility, at its sole cost and expense, for the development and commercialization of the pharmaceutical products.

The ConjugateBio Agreement will remain effective until the expiration of the defined royalty term on a product-by-product and country-by-country basis, unless terminated earlier with cause or by mutual agreements of both parties.

Under the ConjugateBio Agreement, ConjugateBio agreed to pay the Group a one-time, non-refundable, non-creditable upfront payment in consideration of the antibody provided and the license granted. On a compound-by-compound and/or product-by-product basis, the Group will be eligible to receive milestone payments conditioned upon achieving certain development, clinical and regulatory approval milestones, and sales-based milestone payments. In addition, the Group is also entitled to royalties in respect of the aggregate annual net sales of the products developed, subject to certain reductions.

The Group determined that the provision of the antibody and the grant of the license are reflective of a vendor-customer relationship and therefore within the scope of ASC 606. Under the ConjugateBio Agreement, the provision of the antibody, along with the license used to develop the related compounds, represents one performance obligation, as they are not distinct from each other. The Group records revenue at a point in time, when the antibody is delivered to ConjugateBio as the license is considered a functional IP that gives ConjugateBio the right to use the IP. Considering that the development, clinical, regulatory and sales-based milestone payments and the royalties are constrained, the transaction price shall initially only include upfront payment and the milestone payments that are considered probable. Subsequently, once the uncertainty associated with the milestone payments is resolved, the milestone payments shall be included in the total transaction price when it is no longer probable that a significant reversal of cumulative revenue would occur in future periods. The sales-based royalty and sales-based milestones promised in exchange for the license granted are recognized when (or as) the later of (1) the subsequent sale or usage occurs, or (2) the performance obligation to which some or all of the sales-based royalty or sales-based milestones being allocated has been satisfied (or partially satisfied).

For the year ended December 31, 2025, the Group received the upfront payment under the ConjugateBio Agreement. The upfront payment was recognized as revenue at a point in time upon provision of the antibody to ConjugateBio.

Third Arc Agreement

In November 2025, the Group entered into a license agreement (the “Third Arc Agreement”) with Third Arc Bio, Inc. (“Third Arc”), pursuant to which the Group agreed to grant an exclusive license on a molecule specific license to Third Arc to use the Group’s SAFEbody technology for a masked CD3 for the research, development, manufacture, commercialization and other exploitation of licensed compounds and licensed products worldwide. Third Arc has the sole right and decision-making authority, at its sole cost and expense, for the development and commercialization of the licensed compounds and products.

The Group has an option from Third Arc for an exclusive license to develop and commercialize for specific licensed products in Greater China, Singapore and South Korea. If the Group exercises the option, the Group and Third Arc shall enter into a separate agreement governing the Group’s manufacture and summarization of the specific licensed products in the specific territory.

The Third Arc Agreement will remain effective until the expiration of the defined royalty term on a licensed product-by-product and country-by-country basis, unless terminated earlier with cause or by mutual agreements of both parties.

Under the Third Arc Agreement, Third Arc agreed to pay the Group a one-time, non-refundable, non-creditable upfront payment of US$5,000,000 in consideration of the license granted. The Group will be eligible to receive milestone payments conditioned upon achieving certain development and commercial-based milestone payments of up to USD$840,000,000 if all milestones and conditions are achieved. In addition, the Group is also entitled to royalties in respect of the aggregate annual net sales of the products developed, subject to certain reductions.

The Group determined that the grant of the license in the form of sequence data is reflective of a vendor-customer relationship and therefore within the scope of ASC 606. The Group records revenue at a point in time, when the sequence data is delivered to Third Arc as the license is considered a functional IP that gives Third Arc the right to use the IP. Considering that the development and commercial-based milestone payments and the royalties are constrained, the transaction price shall initially only include upfront payment and the milestone payments that are considered probable. Subsequently, once the uncertainty associated with the milestone payments is resolved, the milestone payments shall be included in the total transaction price when it is no longer probable that a significant reversal of cumulative revenue would occur in future periods. The sales-based royalty and commercial-based milestones promised in exchange for the license granted are recognized when (or as) the later of (1) the subsequent sale or usage occurs, or (2) the performance obligation to which some or all of the sales-based royalty or commercial-based milestones being allocated has been satisfied (or partially satisfied).

For the year ended December 31, 2025, the Group received US$5,000,000 upfront payment under the Third Arc Agreement. The upfront payment was recognized as revenue at a point in time upon provision of the sequence data to Third Arc.

SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2025

SUBSEQUENT EVENT

SUBSEQUENT EVENT

20. Subsequent Event

In February 2026, the Group granted additional share options to certain employees and directors pursuant to the 2021 Plan.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Research and development expenses - Including external related parties	$ (22,033,573)	$ (28,781,412)	$ (36,639,146)
Foreign currency translation adjustments, tax	0	0	0
Related party
Research and development expenses - Including external related parties	$ (1,580,387)	$ (1,943,523)	$ (2,660,504)

INCOME TAX EXPENSE - Deferred tax assets and deferred tax liabilities (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carry forward	$ 18,938,782	$ 17,781,302
Tax credit carry forward	1,157,859	1,969,174
Capitalized inventory	49,305	58,214
Unrealized foreign exchange gain/losses	133,343	398,422
Accrued expenses	159,955	151,615
Gross deferred tax assets	20,439,244	20,358,727
Less: valuation allowance	(20,423,490)	(20,336,613)	$ (16,589,070)	$ (9,524,497)
Total deferred tax assets, net	15,754	22,114
Deferred tax liabilities:
Depreciation and amortization of property, equipment and software	(15,754)	(22,114)
Deferred tax liabilities	$ (15,754)	$ (22,114)

LEASES - Maturities of lease liabilities (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
LEASES
2025		$ 149,975
2026	$ 95,863	93,734
2027	54,322	53,116
Total undiscounted lease payments	150,185	296,825
Less: imputed interest	(4,650)	(13,180)
Total lease liabilities	$ 145,535	$ 283,645

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of reconciliation of all financial instruments measured at fair value on a recurring basis using Level 3 unobservable inputs


		Warrant liabilities
		US$
Initial recognition during the year ended December 31, 2025		253,087
Fair value change		(47,941)
Balance as of December 31, 2025		205,146

Summary of estimated useful lives of property, equipment and software


Category		Estimated Useful Life
Machinery and laboratory equipment		5 years
Vehicles		4 years
Furniture and tools		3 - 5 years
Electronic equipment		3 years
Computer software		3 - 5 years
Leasehold improvements		Lesser of lease terms or estimated useful lives of the assets

WARRANT LIABILITIES - Significant unobservable inputs (Details) - Recurring - Level 3	Dec. 31, 2025 $ / shares Y
Risk-free interest rate \| Minimum
WARRANT LIABILITIES
Warrant liability, measurement input	0.0351
Risk-free interest rate \| Maximum
WARRANT LIABILITIES
Warrant liability, measurement input	0.0352
Exercise price per ordinary share
WARRANT LIABILITIES
Warrant liability, measurement input \| $ / shares	4
Expected volatility range \| Minimum
WARRANT LIABILITIES
Warrant liability, measurement input	0.596
Expected volatility range \| Maximum
WARRANT LIABILITIES
Warrant liability, measurement input	0.6005
Term of warrants \| Minimum
WARRANT LIABILITIES
Warrant liability, measurement input	2.5
Term of warrants \| Maximum
WARRANT LIABILITIES
Warrant liability, measurement input	2.7
Dividend yield
WARRANT LIABILITIES
Warrant liability, measurement input	0

BORROWINGS - Long term borrowings (Details)	1 Months Ended		12 Months Ended
BORROWINGS - Long term borrowings (Details)	Mar. 31, 2025 CNY (¥)	Feb. 28, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2025 CNY (¥)	Dec. 31, 2024 USD ($)	Dec. 31, 2024 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2025 CNY (¥)	Dec. 31, 2024 CNY (¥)	Sep. 30, 2023 CNY (¥)	Aug. 31, 2023 CNY (¥)	Apr. 30, 2023 CNY (¥)	Nov. 30, 2022 CNY (¥)	Aug. 31, 2022 CNY (¥)	May 31, 2022 CNY (¥)	Sep. 30, 2021 CNY (¥)	Sep. 30, 2020 CNY (¥)
Debt instrument
Amount repaid \| $			$ 17,878,393		$ 8,342,510		$ 13,506,221
Current portion of long-term borrowings \| $			$ 711,359		$ 12,923,599
Borrowings from Shanghai Pudong Development Bank Co., Ltd., one
Debt instrument
Amount borrowed																				¥ 16,500,000
Term of the debt																				3 years
Interest rate (as a percent)																				4.27%
Amount repaid								¥ 11,000,000	¥ 3,850,000	¥ 1,650,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., two
Debt instrument
Amount borrowed																			¥ 8,500,000
Term of the debt																			3 years
Interest rate (as a percent)																			4.05%
Amount repaid						¥ 7,225,000		850,000	425,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., three
Debt instrument
Amount borrowed																		¥ 20,000,000
Term of the debt																		3 years
Interest rate (as a percent)																		4.00%
Amount repaid				¥ 8,500,000		9,500,000		1,500,000	¥ 500,000
Current portion of long-term borrowings												¥ 8,500,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., four
Debt instrument
Amount borrowed																	¥ 20,000,000
Term of the debt																	3 years
Interest rate (as a percent)																	4.00%
Amount repaid				17,000,000		2,000,000		1,000,000
Current portion of long-term borrowings												17,000,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., Five
Debt instrument
Amount borrowed																¥ 10,000,000
Term of the debt																3 years
Interest rate (as a percent)																4.00%
Amount repaid				8,500,000		1,000,000		500,000
Current portion of long-term borrowings												8,500,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., Six
Debt instrument
Amount borrowed															¥ 7,000,000
Term of the debt															3 years
Interest rate (as a percent)															3.90%
Amount repaid		¥ 2,025		3,300,000		550,000		150,000
Current portion of long-term borrowings											¥ 3,000,000	3,300,000
Borrowings from Shanghai Pudong Development Bank Co., Ltd., Seven
Debt instrument
Amount borrowed											¥ 10,000,000
Term of the debt			2 years								2 years
Interest rate (as a percent)			2.80%								2.80%
Current portion of long-term borrowings											¥ 2,000,000
Borrowings from Agricultural Bank of China Limited One
Debt instrument
Amount borrowed																		¥ 30,000,000
Term of the debt																		3 years
Interest rate (as a percent)																		4.00%
Amount repaid				22,000,000		5,000,000		3,000,000
Current portion of long-term borrowings												22,000,000
Borrowings from Agricultural Bank of China Limited Two
Debt instrument
Amount borrowed																	¥ 9,900,000
Term of the debt																	3 years
Interest rate (as a percent)																	4.00%
Amount repaid				6,900,000		2,000,000		1,000,000
Current portion of long-term borrowings												6,900,000
Borrowings from Agricultural Bank of China Limited Three
Debt instrument
Amount borrowed																¥ 9,900,000
Term of the debt																3 years
Interest rate (as a percent)																4.00%
Amount repaid				6,900,000		2,000,000		¥ 1,000,000
Current portion of long-term borrowings												6,900,000
Borrowings From Bank of Jiangsu Co., Ltd One
Debt instrument
Amount borrowed														¥ 10,000,000
Term of the debt														18 months
Interest rate (as a percent)														3.80%
Amount repaid		¥ 2,025		9,900,000		100,000
Current portion of long-term borrowings												9,900,000
Borrowings From Bank of Jiangsu Co., Ltd Two
Debt instrument
Amount borrowed													¥ 10,000,000
Term of the debt													18 months
Interest rate (as a percent)													3.80%
Amount repaid	¥ 2,025			¥ 9,900,000		¥ 100,000
Current portion of long-term borrowings												¥ 9,900,000

SHARE-BASED COMPENSATION - Share based compensation expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
SHARE-BASED COMPENSATION
Total sharebased compensation expenses	$ 3,741,548	$ 4,909,573	$ 7,271,700
Research and development expenses
SHARE-BASED COMPENSATION
Total sharebased compensation expenses	2,502,472	3,313,833	4,860,548
Administrative expenses
SHARE-BASED COMPENSATION
Total sharebased compensation expenses	$ 1,239,076	$ 1,595,740	$ 2,411,152

TREASURY SHARES (Details) - shares	12 Months Ended
TREASURY SHARES (Details) - shares	Dec. 31, 2024	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2025	Dec. 31, 2023
Treasury Stock, Common [Member]
TREASURY SHARES
Shares retired (in shares)	1
Treasury shares		1			1
American depositary shares
TREASURY SHARES
Shares repurchased (in shares)		1,446,485	1,446,485
Shares retired (in shares)	1	1,446,484	1,446,484
Treasury shares	0			0
Ordinary shares
TREASURY SHARES
Shares repurchased (in shares)		1,808,106	1,808,106
Shares retired (in shares)	1	1,808,105	1,808,105

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2025

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

14. RELATED PARTY TRANSACTIONS

a)	Related Parties


Name of related parties		Relationship
Peter Luo		Chairman, Chief Executive Officer and a principal shareholder of the Company
Certain senior management personnel		Management and ordinary shareholders of the Company
WuXi AppTec Co., Ltd. (“WuXi AppTec Group”)		A principal shareholder of the Company
WuXi Biologics (Cayman) Inc.		Controlled by the ultimate controlling party of a principal shareholder of the Company

b)	The Group had the following related party balances as of December 31, 2024 and 2025:


	As of December 31,
	2024	2025
	US$	US$
WuXi AppTec Group	5,304	14,276
Certain senior management personnel.	3,005	3,073
Total amounts due from related parties	8,309	17,349

As of December 31, 2024 and 2025, the amounts due from related parties mainly represented prepayments made for the CRO and CDMO services.


	As of December 31,
	2024	2025
	US$	US$
WuXi Biologics (Cayman) Inc.	12,598,836	10,118,661
WuXi AppTec Group	589,130	228,539
Total amounts due to related parties	13,187,966	10,347,200

As of December 31, 2024 and 2025, the amounts due to related parties mainly represented payables for the CRO and CDMO services.

c)	The Group had the following related party transactions during the years ended December 31, 2023, 2024 and 2025:


	For the years ended
	December 31,
	2023	2024	2025
	US$	US$	US$
WuXi Biologics (Cayman) Inc.	1,868,815	1,464,959	1,470,267
WuXi AppTec Group	787,602	466,432	98,024
Certain senior management personnel.	4,087	12,132	12,096
	2,660,504	1,943,523	1,580,387

For the years ended December 31, 2023, 2024 and 2025, expenses incurred with related parties mainly resulted from receipt of CRO and CDMO services.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details